GMAC Mortgage Partners with NetBank to Service Option ARMs.HORSHAM Horsham (hôr`shəm), town (1991 pop. 38,356) and district, West Sussex, SE England. Horsham is known primarily for its agricultural and merchandising activities, but it also serves as an engineering center. , Pa. -- GMAC GMAC General Motors Acceptance Corporation GMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance Mortgage Corporation today announced an agreement with NetBank, the country's leading online bank. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the agreement, GMAC Mortgage will service NetBank's Option ARM mortgages prior to their sale into the secondary market. NetBank's Option ARM is an adjustable-rate mortgage Adjustable-rate mortgage (ARM) A mortgage that features predetermined adjustments of the loan interest rate at regular intervals based on an established index. The interest rate is adjusted at each interval to a rate equivalent to the index value plus a predetermined spread, or that provides borrowers the added flexibility of making one of three possible mortgage payments: a minimum payment, an interest-only payment, or a fully amortizing payment, based on either a 15, 30 or 40-year term depending on the product. "Option ARMs have become one of the most popular loan types available today," said Tom Donatacci, Senior Vice President at GMAC Mortgage. "Our relationship with NetBank represents the alignment of a strong lender with a non-traditional mortgage product and a servicer with the technology and processes in place to meet that product's unique servicing requirements." In addition to their servicing relationship, NetBank intends to sell Option ARM loans to other GMAC Mortgage clients, significantly reducing transfer-related expenses for both parties and reducing the borrower confusion associated with loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. transfers. About GMAC Mortgage GMAC Mortgage Corporation, headquartered in Horsham, PA, is among the nation's top ten residential mortgage servicers and originators. The company's servicing portfolio of more than $214 billion represents nearly 2 million customers throughout the nation, including $14.5 billion in subserviced loans. GMAC Mortgage is an established leader in the development, implementation and administration of customized subservicing programs for financial institutions, government sponsored enterprises, specialty finance companies, insurance companies, utility companies and investment banking firms. The company offers a full range of branding options to support the servicing of multiple products, including first mortgages, home equity loans and lines and unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. consumer credit, as well as multiple asset grades, including non-prime and non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. . |
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