GMAC to pay packagers on offer
Mortgage Introducer has been informed that from 1 April, GMAC-RFC will be the first lender to pay packagers a percentage, set at 75 per cent, of the pipeline business they put to GMAC-RFC.
For example, if the packager has £10 million of GMAC-RFC offers at the start of the month, GMAC-RFC will pay that packager 75 per cent of whatever those proc fees are worth. If some of this business does not complete, this will be accounted for the following month.
It is thought the move will shake-up the way lenders now have to pay packagers in order for them to keep ahead in the market.
MI also understands GMAC-RFC will be dramatically cutting the number of packagers it works with, from around 100-plus down to 60.
Jeff Knight, director of marketing at GMAC-RFC, said he could not confirm or deny the plans. He said: “We are working on a number of developments in order to be the leader in this channel.”
Guy Garrard, director of business development at em-, said: “We have been in discussions with GMAC-RFC for some time about a series of fundamental changes to the way we do business together. Potentially, some of the changes could ask some searching questions of GMAC-RFC’s competition and their commitment to packagers.”
Keith Street, director of sales at Kensington, said: “It’s an interesting initiative. We pay packagers daily after completion. We see it as fast and effective.”
Julian Wells, head of marketing at Mortgages plc, said: “This is a very bold move. It’s not something we’re currently planning to do. It should be remembered that giving best advice is the most important factor.”