GMAC close High Street Home Loans

Tuesday, October 9, 2007

GMAC-RFC has today confirmed it is to close its subsiduary High Street Home Loans. It says it informed staff of the changes at 3pm today and will now enter a 90-day consultation period.

It will be cutting 200 jobs from GMAC as well as 66 employees from Newcastle-based High Street Home Loans.

GMAC will honour all offers made by Home Street Home Loans.

They said they are not immune to the current market conditions. They have had to react by making these moves. It's a matter of survival. They will still continue to offer mortgages to all parts of the market but currently the share of the non-conforming sector is not there.

GMAC says it will re-focus its UK business tackling the changing lending environment head on and securing a strong position for the future.

It says the business will concentrate on creating cost efficiencies across its divisions and focus on further utilising its technology platform, POSO.

This comes after several reports in the market that High Street Home Loans was pulling loans amidst the market turbulence.