The subprime mortgage market is in a tailspin - even the Alt-A and prime markets are showing signs of strain. However, GMAC Mortgage is moving ahead with plans to finance a variety of mortgage loans. The company is sponsoring another loan warehouse program under the name Mortgage Interest Network Trust (MINT).
The newest program, called MINT I, is successor to a program that was launched in 2002. That older program funded every type of residential mortgage originated by GMAC's subsidiaries, market sources said. It also had the option of using swaps or haircuts to mitigate risks associated with the performance of the mortgages while they were being warehoused. This time around, MINT I will have a slightly narrower investment focus, although it will still fund a variety of home loans, said market sources.