GMAC-RFC has designed a flat fee payment structure for its Platinum Partners packagers. This comes amid market speculation that business levels at the Bracknell-based specialist lender have suffered a drop in volume in packaged business since it announced it was stopping all override payments.
The decision in January to limit the fees GMAC-RFC paid its Platinum Partners met with widespread disapproval in the packaging sector.
One packager, who asked not to be named, says: “We were taken aback by the January announcement. We thought – how dare it force our hand with no prior warning and still expect us to submit the amount of business we do? A lot of packagers that dealt with GMAC-RFC simply started directing business elsewhere.”
But contrary to speculation among its packaging partners about the lender suffering, GMAC-RFC says it has continued to enjoy good business levels. Indeed March this year was a record month in terms of the number of applications received.
The change to the pricing structure was announced at the end of last month after Platinum Partner representatives were summoned to a meeting at the lender's headquarters.
Jeff Knight, marketing manager at GMAC-RFC, tells Mortgage Strategy: “Last week we announced to our Platinum Partners a payment structure for our products across the distribution channels we operate.
“The significant change was a move away from a tiered payment based on LTV to a flat payment regardless of LTV. We believe this better reflects the work our business partners undertake for us and simplifies the process as we move into the regulated environment.”