GMAC Takes $1.6B Loss on Mortgages
New York-Top five servicer GMAC Financial Services had an after-tax net loss of $3.9 billion for the second quarter, which includes a $1.6 million loss on the disposition of international mortgage assets and provision, impairments and reserves on U.S. mortgage assets.
The mortgage operations reporting segment had a net loss of $1.84 million compared with a net loss of $1.76 million in the second quarter of 2008.
U.S. mortgage loan volume was $18.5 billion, up from $13.2 billion in the first quarter of 2009 and $17 billion in the second quarter of 2008.
GMAC Financial is the parent of Residential Capital LLC. The segment results include the mortgage activity at Ally Bank and ResMor Trust.
The international assets sold consisted of ResCap's operations in Australia and Spain. The parent company's net loss includes a $1.2 billion tax charge as part of the conversion from a partnership into a corporation.