GMAC Financial Services is targeting community banks for a new correspondent lending business.
A correspondent community bank team has been created at subsidiary Ally Bank, a news release today indicated. The new unit is part of Ally’s correspondent and warehouse lending division.
Doug Miller will lead the new team as director of correspondent community banking.
The new business will acquire closed mortgages from community financial institutions that outsource some or all of their loan fulfillment services, GMAC said. It will also offer a table funding program.
“The team is able to customize services to supplement each institution’s in-house operations capabilities, making available GMAC’s technology, underwriting, processing, servicing and marketing expertise,” the statement said. “They also offer clients a full set of free proprietary training courses that help educate bank personnel on all aspects of GMAC’s lending program and products.”
Matt Detwiler, senior vice president of GMAC’s correspondent and warehouse lending division, noted that the time is right to expand in the community bank niche because funding alternatives having dried up for small institutions.
Correspondent lending had been the domain of GMAC-subsidiary Residential Capital LLC, which in April hired Adam Glassner to run ResCap’s warehouse operations.
GMAC spokeswoman Jeannine Bruin explained in a phone interview that correspondent lending is operated from GMAC’s bank, which recently was publicly re-branded as Ally Bank. While ResCap held an ownership interest in the bank, it sold its interest to parent GMAC at the end of 2008.
“That’s why all the correspondent and warehouse lending is taking place out of the GMAC parent entity,” Bruin said.
