The move is part of GM’s cost-saving strategy as the company continues to experience financial losses. It has also been reported that speculation is rife GM could be poised to file for bankruptcy.
Godfrey Blight, sales director at GMAC-RFC, said he could not directly comment on matters at GM but said he did not expect the problems to impact on GMAC.
GM also announced in October it is planning to sell a controlling stake in GMAC but Blight could not say whether it will now want to push the sale through quickly.
He said: “It has been known for many months that GM would be undergoing some re-structuring. The affect on GMAC-RFC will be very little indeed. Our money and finances are raised from mortgage assets and quality of assets so it is external for GM. The process of finding a strategic partner to buy the controlling stake in GMAC is commencing. We can’t comment much further than that.”
Vic Jannels, group managing director of All Types of Mortgages, agreed that GMAC-RFC will be little affected by the situation at GM. He said: “GM’s mortgage division has been doing very well. GMAC is coming out with some meaty non-conforming deals lately. I think it’s here to stay.”
GMAC-RFC has announced its new range of non-conforming products designed exclusively for its panel of packagers and remote processors. Key features of the deals include a three-year fix with four levels of adverse (light, medium, heavy and unlimited), two ranges including standard and right-to-buy, LTV starting from 75 per cent to a maximum 95 per cent (only on light adverse, up to 85 per cent on all other levels), with rates starting from 5.65 per cent. The end date is 1 March 2009.
