ALBA 2007 – 1 plc - Irish Stock Exchange

necessary authorisations and permissions under the FSMA in respect of its activities as a packager or
remote processor; (b) it was (before 1 March 2000) registered under the Data Protection Act 1984 or
(on and after 1 March 2000) notified under the Data Protection Act 1998; (c) it will comply with the
Guidelines for non-standard lending; and (d) it holds, and will maintain, a Consumer Credit Licence.
Before N(M), packagers or remote processors were required to confirm that they were registered with
the appropriate self-regulatory body before becoming a GMAC-RFC Packager or Remote Processor.
GMAC-RFC also operates a remote processing programme. The participating firms in the remote
processing programme (the "Remote Processors") originate loans on behalf of GMAC-RFC using
GMAC-RFC's standard terms mortgage documentation. The Remote Processors use underwriters who
are trained and supervised by GMAC-RFC to apply GMAC-RFC's Lending Criteria. An underwriter
who is employed by GMAC-RFC and located on the Remote Processor's premises gives the final
approval for each mortgage application.
Lending Criteria of GMAC-RFC
The following is a summary of the GMAC-RFC Lending Criteria that were applied (subject to GMAC-
RFC taking reasonable steps to ensure it was the case (and that any discretions to deviate from such
criteria were exercised in accordance with GMAC-RFC's policies)) in respect of the Mortgage Loans in
the Completion Mortgage Pool.
Security
(a)
(b)
(c)
(d)
(e)
GMAC-RFC requires a first legal charge over the Property. It must be used by the Borrower(s)
for private residential purposes only. Full vacant possession must be obtained at completion and
no part let or part possession will be accepted.
A mortgage valuation is required in respect of any property offered to GMAC-RFC as security
for a mortgage advance. The inspection must be carried out by a professional valuer, as agreed
from time to time and managed and monitored by credit risk. For a buy to let ("BTL")
Mortgage, the valuation report must provide an estimate of the rental income that may be
obtained and must also provide comparables in line with the valuation.
Property securing a BTL Mortgage must be let on a six or 12 month assured shorthold tenancy
or on a company let not exceeding 36 months. It must be let within three months of completion
of the Mortga ge, and remain available for letting throughout the term of the Mortgage.
Property securing a BTL Mortgage may not be occupied by the borrower.
The following property types are considered unacceptable security:
• Freehold flats and maisonettes (in England & Wales only)
• Residential flats above commercial premises, with an LTV of more than 85 per cent.
• Investment flats above commercial premises, with an LTV of more than 75 per cent.
• Studio flats
• Properties with unexpired lease term of less than 30 years at end of the mortgage term
• Shared ownership properties
• Tenanted properties (residential only)