GMAC reports completions ratios running at 90 per cent

This compares with the industry average which is believed to be in the region of between 70 – 75%. The main reason for this dramatic change is the fact that its on-line system provides binding decisions that are subject only to valuation.

At a time when intermediaries are becoming increasingly frustrated with the typical “decision in principle” (DIP) offered by all other lenders, the unique GMAC Residential Funding system provides a refreshing tonic. The system works differently from others. Once an accept decision is received, the application is subject only to valuation and can only be overturned in the event of fraud.

This is far more beneficial than old-fashioned DIP systems offered by all other lenders. This is because decision in principle can be – and frequently are – overturned by lenders’ underwriters changing their minds. This causes frustration, anger and time-wasting for intermediaries. In contrast, GMAC Residential Funding’s binding decision creates immediacy, certainty and frees up time for the intermediary for what they do best – which is to advise clients.

Jeff Knight, Head of Marketing Services at GMAC Residential Funding says: “When we say ‘yes’ we mean ‘yes’. We do not say maybe or ‘yes’ and then change our minds. Intermediaries want control over cases so with our system they have a much greater certainty that the case will complete – and that they will have a satisfied client too. So you could say it is a case of ‘binders keepers’.”

GMAC Residential Funding saw its business double in February over January and much of this is down to the growing popularity of its online binding decision service. And the company is currently experiencing record numbers of new intermediaries registering to use the system.

“News of our on-line binding decisions is spreading like wildfire and it is safe to say that we have certainly disturbed the market. Some competitors are trying hard to sell against and confuse intermediaries by suggesting that ours isn’t really a binding decision. This is completely untrue and the proof of the pudding is of course in the eating, because 90% of first decisions are now completing and intermediaries are discovering for themselves the dramatic impact such immediacy and certainty can have on their business lives.”

The GMAC Residential Funding binding decision system operates worldwide and further demonstrates how effective use of global resources can impact international markets. The system gives a binding decision on average after 35 seconds in response to no more than 14 questions. It is available online between the hours of 7am and 10pm (8am to 6pm weekends), which is as a result of extensive research that showed that 24/7 systems were a gimmick and there are very few intermediaries worked at 3am.

“GMAC Residential Funding calls on all lenders to stop wasting intermediaries’ time with old-fashioned DIPs which are about as relevant as the 19th century banking language they use” concluded Jeff Knight.