Cerberus, Citi, Aozora Buy 51% of GMAC

Cerberus Capital Management, New York, and two partners have inked a deal to buy 51% of General Motors Acceptance Corp., the parent of Residential Capital Corp., the nation's fifth-largest mortgage banker.Cerberus, Citigroup Inc., and Aozora Bank will pay $14 billion for the stake. The sale places GMAC's residential empire -- GMAC Residential, GMAC-RFC, and Homecomings -- in the odd position of being owned by competitors. Citigroup owns Citigroup Mortgage and subprime lender CitiFinancial, and Cerberus owns a controlling interest in Aegis Mortgage, a top-20-ranked nonconforming lender. Besides mortgages, GMAC controls other financial services assets, including auto finance, credit cards, and insurance. A few weeks ago, General Motors sold a controlling stake in its commercial mortgage banking affiliate to Kohlberg, Kravis & Roberts and two partners. GM, which is facing possible bankruptcy, is trying to raise cash and restore its debt ratings and that of GMAC. Rick Wagoner, GM's chairman and chief executive officer, said the sale will preserve "the mutually beneficial relationship between GM and GMAC."