GMAC Links Pay to Application Quality

by Tayeb Realty Group on April 10, 2010

GMAC

GMAC Inc., a lender taken over by the U.S. government, is encouraging its loan officers to lend to qualified home owners instead of presenting applicants they know won’t qualify.

Their incentive pay will be tied to the goal, so loan officers who are successful identifying good prospects will earn more. About 150 loan officers are affected.

The federal government has pointed to incentives in the mortgage industry that reward brokers for applications submitted rather than their quality as part of what went wrong with the mortgage market.

GMAC lost more than $7 billion last year on bad loans.


Source: Bloomberg, Dakin Campbell (04/07/2010)

Article by Tayeb Realty Group

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