Minneapolis-based mortgage lender GMAC-RFC has entered into partnership with San Diego-based subprime mortgage specialist Accredited Home Lenders, where Accredited will deliver eligible' subprime mortgages to GMAC-RFC in exchange for financing from the big asset-backed player.
The agreement allows Accredited to participate in GMAC-RFC's subprime securitization program. Accredited originated $600 million in loans in 1998 and close to $450 million in loans for the first half of 1999.
As part of the agreement, GMAC-RFC will provide Accredited with a committed warehouse facility and line of credit for three years, funding which will be used by Accredited for production of subprime residential mortgage loans.
"This represents a unique opportunity for both parties to benefit from each other's strengths," said Gary Shev, director of lending at GMAC-RFC.
GMAC-RFC regularly brings standard mortgage, HELOC and 125-LTV deals to market, with around $12 billion in issuance last year. - SK