GE Money Withdraws From Secured Loan Market
We reported recently on how GE Money Home Lending (GEMHL) was intending to close one of its subsidiary companies at the beginning of March this year.
I group, which was the part of the GE Money group specialising in secured loans in the sub prime and bad credit loan markets, via the intermediary and loan broker route, closed its doors to new business at the start of this month, due to the effects of the credit crunch and a lack of funding in the wholesale markets. At the time, GE Money said that it intended to remain in the secured loan market, through its other subsidiary, First National.
But on Monday this week (30th March) it was announced that GE Money was planning to close the First National brand as well as i group, withdrawing all mortgage and secured loan products from the loan broker market from the 17th April this year.
The news does not come as any great surprise for intermediaries, who have been expecting the announcement for some time, but it does make the job even harder for a broker trying to source a cheap secured loan for a client. Anyone who already has a loan application in place with First National, has got until the 8th of May to complete their loan before the offer is withdrawn.
The sales director at GE Money, Mark Snape, regretted the decision and made the following statement to loan brokers and intermediaries, “Clearly these are challenging times and I regret not being able to support you in the way we would want, but in the light of the unfolding economic conditions, I felt we had to take this action to manage our lending more proactively.
However, as we look forward we will continually review our distribution strategy to ensure that we are well positioned when the market stabilises and begins to recover.”
