December 30, 2009 |
GMAC Inc., the home and auto lender, is discussing with the Obama administration an additional aid package of about $3 billion to $4 billion, according to a person familiar with the matter. The size of the assistance remains under negotiation, the person said on condition of anonymity because the talks were private. A deal may be reached within days as Detroit-based GMAC incorporates losses from its home loan businesses, the person said. The objective is to restore the company to profit in the first three months of next year.
May 6, 2008 |
Residential Capital, the mortgage-finance company owned by GMAC, said Monday that it might not be able to meet debt obligations unless it finds an additional $600 million by the end of June. ResCap, the eighth-largest home loan firm, on Monday began offering as little as 80 cents on the dollar to exchange or buy back $14 billion of bonds to extend maturities and stave off bankruptcy. To finance the debt restructuring, the Minneapolis lender is seeking a new $3.5-billion credit line from its parent GMAC, which is owned by General Motors Corp.
September 4, 2008 |
Lender GMAC Financial Services said Wednesday that it would close all of its 200 retail offices and lay off about 5,000 employees as part of a plan to reduce its mortgage lending and servicing because of the housing market downturn. The majority of the layoffs are slated for GMAC's mortgage lending division, Residential Capital, and will reduce the ResCap workforce by 60%, the company said. In the first half of the year, ResCap's U.S. mortgage loan production was valued at about $35.7 billion, down nearly 39% from the same period in 2007.
December 31, 2009 |
GMAC Financial Services will get a $3.8-billion boost in federal aid as the auto industry's key lender to consumers and related businesses struggles to regain its financial footing. The lifeline, the company's third helping of taxpayer funds in the last year, is aimed at keeping the Detroit lender on track to its goal of improved finances next year and an eventual profit. The infusion will raise the government's ownership stake to 56% from 35%. "These actions offer the best chance for GMAC to complete its overall restructuring plan and return to the private capital markets for its debt financing and capital needs in 2010," the Treasury Department said in a statement.
November 22, 2007 |
Finance company GMAC said it was exploring the sale of parts of its troubled mortgage-lending arm, Residential Capital, and the purchase of an international lending institution. GMAC, 49% owned by General Motors Corp, said it had expressed interest in buying a large non-U.S. mortgage-lending institution. Its goal would be to combine ResCap's local mortgage business with the acquired institution. GMAC did not disclose the name of the lender. ResCap this month posted a $2.
June 22, 2005 |
Bond investors came out in droves Tuesday for a piece of the new private note offering from Residential Capital Corp., the new, separate home mortgage unit of General Motors Corp.'s finance unit, General Motors Acceptance Corp. The $4-billion bond deal, which garnered demand of more than $17 billion, provided the high-grade bond market with much to cheer about. Investors gave the deal their stamp of approval, despite the borrower's ties to recently junked GM.