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BUSINESS
February 6, 2008 | From Bloomberg News
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.
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BUSINESS
December 31, 2009 | By Tiffany Hsu, Of The Morning Call
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.
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BUSINESS
March 17, 2006 | From Reuters
General Motors Corp. on Thursday revised its loss for 2005 to $10.6 billion, $2 billion more than initially reported, because of charges associated with its restructuring, the bankruptcy of former subsidiary Delphi Corp. and its finance arm, GMAC. The company said in a statement that on a per-share basis its 2005 loss was $18.69 when fully accounting for those charges, up from a previously reported per-share loss of $15.13.
BUSINESS
December 30, 2009 | Bloomberg News
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.
BUSINESS
December 30, 2009 | Bloomberg News
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.
BUSINESS
May 6, 2008 | From Times Wire Services
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.
BUSINESS
September 4, 2008 | From the Associated Press
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.
BUSINESS
December 31, 2009 | By Tiffany Hsu, Of The Morning Call
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.
BUSINESS
November 22, 2007 | From Times Wire Reports
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.
BUSINESS
June 22, 2005 | From Bloomberg News From Dow Jones/Associated Press
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.
BUSINESS
September 4, 2008 | From the Associated Press
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.
BUSINESS
May 6, 2008 | From Times Wire Services
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.
BUSINESS
February 6, 2008 | From Bloomberg News
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.
BUSINESS
March 17, 2006 | From Reuters
General Motors Corp. on Thursday revised its loss for 2005 to $10.6 billion, $2 billion more than initially reported, because of charges associated with its restructuring, the bankruptcy of former subsidiary Delphi Corp. and its finance arm, GMAC. The company said in a statement that on a per-share basis its 2005 loss was $18.69 when fully accounting for those charges, up from a previously reported per-share loss of $15.13.
BUSINESS
March 7, 2007 | From Bloomberg News and Reuters
General Motors Corp. may join the list of victims of the surge in sub-prime mortgage defaults. GM may take a charge of almost $1 billion to cover bad mortgage loans made by its former home-lending unit, Residential Capital, said Lehman Bros. analyst Brian Johnson. Residential Capital relies on loans to people with high debt burdens or poor or limited credit records for more than three-quarters, or $57 billion, of its loan portfolio, Johnson wrote in a recent report.
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