You are here: Home - News -

Private Label in lending initiative with RFC-MSL

  • 01/08/2000
  • 0
Private Label, the largest mortgage packager in the UK, has announced plans to merge with RFC-MSL, t...

Private Label, the largest mortgage packager in the UK, has announced plans to merge with RFC-MSL, the lending subsidiary of US car giant General Motors, to create the first ‘corresponding lending’ company in the UK mortgage market.

The new combined subsidiary will trade as GMAC-RFC Ltd. As a corresponding lending company, it will fund its own mortgage products through public securitisation, portfolio sales and loan-by-loan correspondent lending, but will continue to use Private Label to fund products with external lenders.

Executive chairman of GMAC-RFC, Stephen Knight, said the new company will be the first of its kind in the UK, although in North America it is not uncommon for companies to be both a creator and a trader of mortgage assets.

“We hope that when we come together, the sum of the whole will be greater than the sum of the two parts,” he said.

Under this type of arrangement, GMAC-RFC will offer brokers several alternatives. When it is unable to fund a loan, it will approach other lenders and offer them two options. The lender can either buy the loan immediately or they can agree to fund the loan, but let GMAC-RFC negotiate the whole mortgage process for them before selling the loan to the lender on the day of completion. It also offers a guarantee to buy the loan back if there are problems with the mortgage.

Knight said: “We expect that the merger will allow us to cover every viable product in every area of the mortgage market.”

Commenting on the merger, Chris Holland, corporate affairs manager at Bradford & Bingley, said there would be some similarities between its operation since its purchase of John Charcol, and Private Label’s proposition.

He said: “There are some parallels between us and in the future it will be possible to go into a Bradford & Bingley branch and walk out with, say, a Halifax mortgage, but we will not be covering the same areas.”


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
B&W mix-and-match protection

Bristol & West (B&W) is unveiling a new protection range at the end of June which comprises both adv...