Mike Pendergast, IFA at Zen Financial Services, argued GMAC-RFC’s valuation and underwriting practices included unnecessary elements.
He said: “GMAC-RFC’s service includes items which are not necessary to underwrite a mortgage case. Requiring a paper copy of an application form that has been keyed in online is one example. Every other lender offering an online system only requires a copy of the declaration and direct debit on a case keyed online. What’s the point of offering an online system to speed up the process, when GMAC-RFC insists on a paper copy as well?”
Pendergast also highlighted his concerns over GMAC-RFC’s valuation service. “I think it is poor practice to give a valuation before underwriting. Surely the mortgage should be agreed before the valuation is instructed?”
Responding to the accusations, Jeff Knight, head of marketing at GMAC-RFC, said: “We take any complaint very seriously. We will look into this anomaly once we have case details. Our online system delivers fast and binding decisions. Once the ‘accept’ decision is obtained, the application is printed and sent to us. This is because that is what the vast majority of brokers have told us they wanted. Naturally, needs change and we will adapt if necessary.
“With regards to a valuation, on our system we give the broker the choice to book a valuation once the decision is obtained – and this has proven to be a great benefit as it speeds up the whole process.”
