GMAC-RFC has announced the completion of a portfolio sale worth £60m, made up of fixed and discounted mainstream mortgages and self-certification loans.
The “whole loan” sale was acquired by Derbyshire Home Loans, a subsidiary of The Derbyshire, one of the UK's top 10 building societies.
The deal is the second this year between the two organisations. In June 2002, Derbyshire Home Loans acquired a £54m portfolio from GMAC-RFC, bringing the total transaction value to over £100m.
The transaction enhances GMAC-RFC's position as a “creator and trader” of mortgage assets, and represents its 14th portfolio sale in the last two years.
Stephen Hynes, capital markets director at GMAC-RFC, says: “We are delighted that The Derbyshire has partnered us for a second portfolio acquisition, and, as the leading all-status lender, we are looking to establish similar relationships with other clients.
“This type of sale is becoming increasingly popular in the UK mortgage industry, and the creator and trader technique is revolutionising the market.”
Gina Collman, head of corporate communications at GMAC-RFC, says: “It's a win-win situation for all parties involved – the intermediary, the customer and the acquiring lender.
“We launch highly competitive mortgage products when the intermediaries and customers want them. We then sell on the resultant assets in mixed loan pools to the acquiring lenders when they need them. These acquirers obtain additional valuable assets without any strain on their existing distribution channels or in-house processing.
“The customers benefit because the key terms of the loans remain unchanged, and GMAC-RFC's key terms are highly customer-friendly.”
Martin Latham, director of Derbyshire Home Loans, says: “The GMAC-RFC transactions have been instrumental in our progressive growth strategy and enable the group to expand into the wider mortgage market in a controlled and effective manner. I am delighted with the relationship between GMAC-RFC and DHLL and I look forward to working on similar transactions in the future.”