Magazine article American Banker

GMAC to Offer Loans through Banks Owned by Women, Minorities

Magazine article American Banker

GMAC to Offer Loans through Banks Owned by Women, Minorities

Article excerpt

GMAC Mortgage Corp. has signed a contract to offer home loans to the customers of about 60 banks owned by minorities and women.

The marketing will be carried out through the Washingtonbased National Bankers Association, which represents the banks.

"We figured this was a good way in which our members can build the communities in which they are located," said Samuel L. Foggie, the group's president.

Mortgage bankers have been clamoring to strike lending relationships with professional associations and other "affinity groups." Lenders see marketing loans to groups as a cost-effective way to build originations.

Since February, when interest rates started climbing and loan production began burning out, competition for affinity relationships has grown fiercer than ever.

The National Bankers Association formed in 1927, will be GMAC's largest affinity-lending relationship, said Teresa M. Albertira, vice president for business development.

Affinity-Lending Programs

GMAC, an Elkins Park, Pa.bascd unit of General Motors Acceptance Corp., has more than 20 affinity-lending programs. The largest is a plan serving employees General Motors Corp.

The banks represented by the National Bankers Association bring an estimated one million customers into the fold, GMAC said.

For two years the Federal Home Loan Mortgage Association has been working closely with the NBA, encouraging it to promote mortgage lending, said Deborah S. Holmes, Fannie Mae's director of community investment.

A survey of NBA members conducted by Fannie Mae and finished last September suggested that the group seek out proposals from experienced mortgage banks to create a lending program, Ms. …

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