One of the pioneers of correspondent lending GMAC-RFC predicts that the sale of mortgage books is set to grow.
It says this market is becoming particularly appealing to small building societies and lenders which can use it to increase their assets without adding infrastructure.
Mortgages plc has just completed its first £50m sale of mortgage assets to Derbyshire Home Loans, a subsidiary of Derbyshire Building Society. Mortgages plc says this will be the first of many such deals.
Sub-prime lender Preferred Mortgages has made a deal with CS Portfolio Services to expand this channel. Preferred has already sold over £1bn in non-conforming mortgage portfolios through securitisation and whole loan sales.
GMAC-RFC commercial director Barry Searle says: “We were the first lender to sell on mortgage books and since then others have started to do the same thing.”