GMAC to Service Option ARMs for NetBank
GMAC Mortgage has reached an agreement to service option-ARM mortgage loans on behalf of NetBank's pending sale of the loans into the secondary market.
NetBank's option-ARM product provides borrowers with the flexibility of making one of three possible mortgage payments: a minimum payment, an interest-only payment or a fully amortizing payment. The loans can be amortized on a 15-year, 30-year or 40-year term.
"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 nontraditional mortgage product and a servicer with the technology and processes in place to meet that product's unique servicing requirements."
In addition to the subservicing arrangement, NetBank plans to sell option-ARM loans to other GMAC Mortgage clients, reducing expenses and confusion related to servicing transfers, GMAC said in a press release.
GMAC Mortgage Corp. services more than $214 billion of home loans, representing more than two million customers.
That volume includes $14.5 billion in subserviced loans.
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