GMAC-RFC 'demonstrates' benefits of automated underwriting

16-Mar-2007

In news which may be of interest to prospective first time buyers, GMAC-RFC has announced that automated underwriting techniques are more helpful than manual alternatives at preventing mortgage defaults.

According to GMAC-RFC, automated methods remove the risk of human error and are better suited to determining the true affordability levels of a buyer - whether a first time buyer or a repeat purchaser.

Indeed, according to the lender, statistics produced by the Council of Mortgage Lenders show that GMAC-RFC is "out-performing the industry" in respect of the number of its customers slipping into arrears.

"Lenders have a duty to treat their customers fairly but many simply do not understand the impact antiquated underwriting systems have on arrears," said Stephen Knight, executive chairman of GMAC-RFC, in a speech published today by the Social Market Foundation.

GMAC-RFC offers a range of mortgage types that includes self certification and buy-to-let options.

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