Archive for Wednesday, February 06, 2008
GMAC red ink hits $742 million
GMAC posted a $724-million fourth-quarter loss Tuesday as more than 1 in 10 homeowners with GMAC mortgages fell behind on payments.
The loss contrasts with a profit of $1 billion a year earlier, said the Detroit-based auto and mortgage lending company that is 49% owned by General Motors Corp. GMAC is talking to potential buyers about parts of its Residential Capital mortgage unit, which had a $921-million loss in the quarter. Auto finance profit slid 77% as sales declined.
GMAC vowed to make money this year after falling home prices and record U.S. foreclosures led to a $2.3-billion loss for all of last year. Moody’s Investors Service cut its ratings on GMAC and Residential Capital, citing concerns about ResCap’s liquidity and GMAC’s financial health.
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