The GMAC Bank unit of Residential Capital (ResCap) is expanding its mortgage warehouse lending operations, a spokeswoman for the company confirmed.
GMAC hired Adam Glassner, formerly of Bank of America, to head up these efforts. ResCap shifted the warehouse business from Residential Funding Corp. to the bank more than a year ago.
The spokeswoman said the company wants to significantly increase its volume of these loans, which will be funded with capital from GMAC Bank.
The bank had aggressively marketed for deposits and now GMAC needs a way to use that capital. Right now, GMAC has 150 warehouse clients and will take on new relationships.
There is strong demand in the market for warehouse credit, the spokeswoman said, "so we're willing to lend."
GMAC is also expanding its jumbo mortgage lending program. However, the spokeswoman explained, borrowers need a credit score of 700 or above and must be willing to put between 20% and 30% as a down payment.
