GMAC Financial Services
created a new unit in its Ally Bank
subsidiary to promote correspondent lending at community financial institutions.
The Correspondent Community Bank Team
will serve local banks, thrifts and credit unions by purchasing closed residential mortgage loans and offering table funding services.
In table funding transactions, a third party — in this case, Ally Bank — provides the funds for a brokered deal — again, in this case, between the borrower and the community bank — at closing.
The new business unit will also offer services to supplement each institution’s in-house operations by providing access to GMAC’s technology, underwriting, processing, servicing and marketing capabilities.
“We will focus on community financial institutions that outsource some or all of their mortgage fulfillment services,” said Matt Detwiler, a senior vice president in GMAC’s correspondent and warehouse lending division. “By employing a consultative sales approach, we can match GMAC’s mortgage services to any client’s existing operation.”
Detwiler said the climate is right to fill this critical niche in the mortgage market, as recent market conditions have reduced funding alternatives for these smaller institutions.
Write to Austin Kilgore