Magazine article American Banker

In a Year of Winners, GMAC Mortgage May Have Been Biggest

Magazine article American Banker

In a Year of Winners, GMAC Mortgage May Have Been Biggest

Article excerpt

In a big year for the mortgage industry, GMAC Mortgage Group may have had the biggest year of all.

The Horsham, Pa.-based unit of General Motors Acceptance Corp. bought a $28 billion loan servicing portfolio from Wells Fargo & Co. in April and a $38 billion portfolio from Capstead Mortgage Corp., Dallas, in October. Wells, which no longer originates its own loans, was retreating further from the mortgage business, while Capstead had been stung by an $11.8 million loss on the portfolio in the third quarter.

The deals launched GMAC into fifth place nationally in loan servicing and made it a member of the exclusive $100 billion servicing club, ahead of Fleet, Homeside, and Washington Mutual. The club now appears to be closed, at least for awhile, with a former member, GE Capital Mortgage, falling further to $83.3 billion.

The next member may be First Nationwide Mortgage, Frederick, Md., which reached $86.4 billion at yearend after a gain of 40.9%. Turning the trick for the company was the acquisition of Cal Fed and Golden State, two big California s&ls.

The 57.5% increase in servicing by GMAC was the highest among the top 25 servicers. On the originations side, GMAC was in 18th place but had the second-largest increase, 173.6%, among the top 20 originators.

On average, the top 100 loan originators had gains of 89.55%, well above the average for the whole industry of 68.86%, resulting in a dramatic increase in market share of the top 100 to 78. …

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