GMAC Reports NetBank Servicing Pact

August 26, 2005, 2:00 p.m. EDT 1 Min Read

GMAC Mortgage Corp., Horsham, Pa., has announced an agreement with NetBank, an online bank, under which GMAC Mortgage will service NetBank's option ARMs before their sale into the secondary market.NetBank's option ARM is an adjustable-rate mortgage that offers the option of making one of three mortgage payments: a minimum payment, an interest-only payment, or a fully amortizing payment, based on a 15-, 30-, or 40-year term, depending on the product. The company said NetBank also intends to sell option ARM loans to other GMAC Mortgage clients, "significantly reducing transfer-related expenses for both parties and reducing the borrower confusion associated with loan servicing transfers." The companies can be found online at http://www.gmacmortgage.com and http://www.netbank.com.

For reprint and licensing requests for this article, click here.

MORE FROM NATIONAL MORTGAGE NEWS

Originations

UWM first to raise its conforming limits for 2026

The company will now consider loans up to $819,000 as government-sponsored enterprise-eligible, even though it cannot sell them to the agencies until Jan. 1.

By Brad Finkelstein

41m ago
Politics and policy

How the Trump administration has neutralized the CFPB

Acting CFPB Director Russ Vought has managed to neuter the Consumer Financial Protection Bureau through a series of actions. Senate Banking Committee Chairman Tim Scott, R-S.C., played a major role by cutting funding in half.

By Kate Berry

5h ago
Monetary policy

More rate cuts eyed as Fed zeroes in on soft labor market

Federal Reserve Chair Jerome Powell said there was a "high degree of unity" among committee members during this week's Federal Open Market Committee vote. Out of 12 FOMC members, 11 voted for a 25 basis point cut.

By Maria Volkova

September 17
Politics and policy

Housing organizations call for condo loan flexibility

The Community Home Lenders of America and the Community Associations Institute want the FHA to insure loans on condos approved by Fannie Mae and Freddie Mac.

By Colin McNamara

September 17
Bank stocks

Bank stocks rise on Fed's first rate cut of 2025

The Federal Open Market Committee's decision to reduce interest rates for the first time in nine months lifted bank stocks Wednesday. The 25-basis-point reduction could lead to net interest income headwinds now, but loan growth later, analysts said.

By Allissa Kline

September 17
Mortgage rates

Fed cuts but only some mortgage rates are moving lower

Most lenders said they had already priced in the widely-anticipated decision to cut short-term rates for 30-year home loans but other products will benefit.

By Bonnie Sinnock

September 17