Redundancy risk at HML after GMAC-RFC loss
GMAC-RFC is due to transfer its £3.6bn mortgage book in-houseto its B racknell HQ in April next year. An unconfirmed number of HML staff based in Skipton, Yorkshire and Padiham, Lancashire, will either have to move south or face redundancy.
Julian Wells, HML marketing director, said: “All staff working on GMAC mortgage accounts at HML have got the option to relocate to Bracknell with the mortgage business under TUPE. We have also asked for volunteers to take redundancy and as far as possible our aim is to avoid any compulsory redundancies.”
TUPE – Transfer of Undertakings (Protection of Employment) – is the legal regulation protecting staff when the business employing them changes ownership.
HML’s loss of the GMAC-RFC account comes after Fortress Investment Group, a private equity firm, bought the former lender earlier this year. It is widely understood that GMAC-RFC’s decision to bring its mortgage servicing in-house is part of a strategic move to streamline the business.
Wells said the GMAC-RFC account was equivalent to roughly 8% of the £44 billion HML has under management but Alan Cleary, managing director of rival mortgage servicer Exact, claimed losing the GMAC account could be critical for HML.
He said: “GMAC is HML’s biggest client as far as I’m aware – its loss will have a significant impact on their business.”
HML has already suffered several rounds of redundancies this year including 100 cut jobs in March, 164 jobs in April and 80 jobs in July.
Talks are reportedly ongoing about whether GMAC-RFC will continue to use HML IT systems to manage its mortgage administration after the assets are transferred.
Wells added: “GMAC remains a valued business partner and we are working with them to restructure our relationship for the future with them.”
GMAC-RFC was unavailable for comment.