CML to review the way it calculates lending league

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