Non-Conforming lending is generally described as lending to a customer that has credit impairment.  This could be anything from a default listed on their credit check to bankruptcy.  Whatever their situation may be it's unlikely they will fit the mold of a conventional bank or lender.

Over the last few years Australia has seen a massive increase in the non-conforming marketplace, making it one of the fastest growing sectors of the mortgage industry.  Non-Conforming loans currently make up about 4% of the value of new mortgages.  This figure is up from about 2% only a few years ago.  However if you look at markets such as the US or the UK non-conforming lending comprises as much as 15% of all lending.

Overseas non-conforming markets are not the only indicators that GMAC has made a timely entrance to the Australian marketplace.  Recent information from Standard and Poor's research shows 0.35% of standard securitised loans are in arrears by more than 90 days.  This is the highest level in 10 years.  Mortgage arrears of this type leave the owners with nowhere to go but a non-conforming lender if they wish to refinance and start afresh.

GMAC began business in the UK in 1998 and since then has grown to be the UK's 10th largest mortgage lender.  In 2005 they lent out £6.9 billion GBP ($16.58 billion AUD) in mortgages.  GMAC's success in the UK comes largely from identifying worthwhile "niches" that other lenders have overlooked and using the latest technology and IT systems to improve efficiency.

GMAC intends to follow suit in Australia.  They have already identified the need for credit policies that allow semi-rural acreage properties to be used as security when applying for a loan and more product innovations are in the pipeline.