GMAC says it will not withdraw completely from the sub-prime mortgage sector despite only having a couple of products available.
Money Marketing understands the firm has withdrawn its marketing allowance and will not have a budget for its non-conforming range until the securitisation market recovers but the company refuses to comment on this.
In November last year, pioneering non-conforming lender Kensington decided to withdraw from the sub-prime market and refocus on prime mortgages due to the liquidity crunch.
GMAC corporate relations director Julie Gaskin says: “We do not want to withdraw from the sector completely. It is easier to turn the tap on and off. We are trying to do it strategically for that reason.”
Em Financial managing director Roger Morris says: “GMAC is not really offering any sub-prime products at the moment but I do not think that means we will not see them do sub-prime again. You know there is a tactical reason behind it.”
Regulatory Alliance of Mortgage Packagers managing director John Rice says: “GMAC has reduced its LTVs down to about 75 per cent and is only playing in a very limited way. It does not want to advertise in the non-conforming market as it does not want to write the business.”