The Council of Mortgage Lenders has pledged to review the way it calculates its mortgage lending league table after complaints from GMAC-RFC.
The trade body’s table is used by the industry to benchmark gross lending figures. But when the CML published its last league table in October GMAC-RFC had dipped from 10th to 11th place.
As reported in Mortgage Strategy, Jeff Knight, director of marketing at GMAC-RFC, branded the figures as distorted for failing to compare lending over the same per-iod of time for all lenders.
GMAC-RFC subsequently called on the CML to change the way it works out the tables so that lenders are compared on a like for like basis over the calendar year. The trade body has agreed to a consultation.
Bernard Clarke, spokesman for the CML, says: “We will be discussing this with our members to see if it would be a better way of providing data.”
Knight says: “According to the CML, Bristol & West took 10th position from GMAC-RFC based on lending during its financial year which ran from April 1 2005 to March 31 2006. This created an anomaly because GMAC-RFC’s lending was assessed over a different period, namely January 1 2005 to December 31 2005.
“Comparing the financial year with the calendar year allowed Bristol & West to exclude the depressed post-Mortgage Day period and substitute the buoyant Q1 2006.”
He says that if GMAC-RFC’s figures were recalculated over the same period as Bristol & West’s they would show it had advanced £8.9bn, thereby retaining number 10 position in the table.
l See Letters, pages 56-57