GMAC-Residential Funding Corp., the most prolific issuer of private-label residential mortgage-backed securities, will likely add healthcare receivables to its ABS product line, though not anytime soon, according to the company.
Last week RFC announced that it will acquire Portland, Ore.-based HealthCapitalGroup, which will be incorporated into RFC's newest financing arm, GMAC-RFC HealthCapital.
According to the company, RFC has been looking to expand into the healthcare finance industry for a few years now.
"We did a study in 1998, about what markets are out there that are similar in growth and size profile to the mortgage market, and from that study we came up with healthcare finance," said Lorna Gleason, who led the due diligence and acquisition effort of HCG. Gleason, a managing director at RFC, will head the new unit.
Through the acquisition, RFC will assume a portfolio of approximately $50 million. Gleason estimates growing that to about $1 billion before launching any type of securitization. "In the marketplace, we're saying we have a balance sheet devoted to the business," Gleason said.
In addition to accounts receivable financing, RFC-HC plans to offer equipment and real estate financing to the healthcare industry.