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Guaranteed Mortgage Program: GMAC No Longer Lending Partner
September 23, 2008 , Volume 55, No. 5

Penn Home Ownership Services (PHOS) has announced that it will no longer be able to use GMAC Financial Services as a lender under its Guaranteed Mortgage Program (GMP). GMAC decided to close the division that handled its retail mortgage business in light of the troubles experienced by another one of its divisions, ResCap.  Although GMAC’s retail mortgage arm, which partnered with Penn under the GMP, did not underwrite subprime loans, the ResCap unit of GMAC was one of the nation’s largest subprime-mortgage lenders and has been significantly impacted by the current troubles in the domestic mortgage market. 

All applications originated prior to September 5, 2008 will be honored if they are closed on or prior to October 31, 2008. Program applicants who have already completed an application with GMAC, but do not think they will be able to close prior to the October 31 deadline, should contact the PHOS office (215-898-7422) as soon as possible. A PHOS representative will assist in transferring your mortgage application to Advance Bank which, as long as PHOS has all required documentation on file, should be a seamless process. GMP applicants who were planning to use GMAC as a lender are also being asked to contact Advance Bank for their financing needs. PHOS is in the process of vetting new lenders to broaden its pool of suppliers. Additional lending options will be announced as soon as they are available at www.upenn.edu/homeownership.


Almanac - September 23, 2008, Volume 55, No. 5