GM Bank's Warehouse Commitment's at $2.5 Billion

GMAC Bank, the depository arm of GMAC Financial Services, has warehouse commitments of $2.5 billion, a 58% decline from a year ago. A company official, requesting anonymity, confirmed the figures to MortgageWire but noted that the unit has increased credit to what he calls "our existing core customer base" by $400 million this year. GMAC Bank, he said, has scaled back its business and eliminated subprime credits. "We are lending to customers that are selling loans to our conduit," he said. He noted that GM Bank is keeping "a low profile" these days. Its parent is trying to become a bank holding company and is waiting for enough investors in its corporate notes to accept an exchange offer that will allow it to raise $30 billion in regulatory capital. A few years back GMAC was the largest warehouse lender in the nation.