Magazine article Mortgage Banking

GMAC-RFC Enhances AlterNet Program

Magazine article Mortgage Banking

GMAC-RFC Enhances AlterNet Program

Article excerpt

Minneapolis-based GMAC Residential Funding (GMAC-RFC) announced it is making its AlterNet[R] nonprime loan program even stronger with a new loan-grading structure and enhanced criteria.

The new grading structure is based solely on housing history, or the borrower's homeownership record, making it easier to use, while the criteria enhancements will streamline the loan program and include higher loan amounts, 6 percent seller concessions and a simpler major adverse policy, according to Anne Peacock, GMAC-RFC managing director, product and business strategy management.

"These significant improvements to our AlterNet program allow mortgage lenders and correspondents to offer more real estate financing choices for consumers," said Peacock. "AlterNet is even stronger because it's designed around our clients' needs to help more consumers achieve homeownership."

Enhancements to the AlterNet program will include regrading. AlterNet's new grading structure is simpler and more consistent with the mortgage industry. The program is easier to understand, with credit grades based solely on housing history; wider credit-score bands for each credit grade; and bankruptcy and foreclosure seasoning determinants of LTV and not credit grade, the company explained.

AlterNet will also feature simplified rate sheets that are less complex and easier to read, and expanded LTV and FICO[R] adjustments to allow for greater pricing accuracy. In addition, first-time homebuyers are separated into new grades. …

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