GMAC Correspondent Severely Cuts Back on FHA, VA, USDA

Secondary

The correspondent lending division of GMAC Bank on Friday told its mortgage banking clients that it will “significantly” curtail government lending tied to FHA, VA and USDA, according to a memo provided to National Mortgage News.

At press time few details were available. A company spokeswoman could not be reached for comment.

Among all lenders Residential Capital Corp./GMAC ranks sixth nationwide in FHA lending, according to figures compiled by NMN. It is unclear how much of the firm’s production is tied to the correspondent channel. (Last week the company closed its MBS trading desk.) 

A few months back ResCap/GMAC slashed its presence in correspondent lending, but promised to maintain relations with certain high volume mortgage banking customers.

The new memo notes that, “As a result, all loans including AOT [assignment of trade], Direct and Forward Trades must be locked/assigned on or before 5:00 PM EST, April 16, 2012. GMACB will honor existing pipeline. No relocks will be accepted and a maximum of 30 days of extensions will be allowed. All other lock policies will apply.”

Among all lenders ResCap/GMAC ranks sixth nationwide. In the correspondent channel it ranked third in 4Q but that was before the announced cutbacks.

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