GMAC Files for BHC, Offers Note Holders a Deal

GMAC Financial Services - which controls nearly $400 billion in mortgage servicing rights - has applied with the Federal Reserve to become a bank holding company, a move that may give it access to a cash infusion under the Emergency Economic Stabilization Act. In a statement, the company warns, however, that it may not receive approval from the Fed. GMAC already owns a depository - GMAC Bank of Midvale, Utah, the nation's 16th largest bank in terms of residential mortgage holdings - but is not a bank holding company. GMAC's Residential Capital Corp. division ranks seventh nationwide among home mortgage servicers, according to the Quarterly Data Report. Both GMAC and ResCap are offering to pay cash for outstanding corporate notes or exchange old notes for new ones in an effort to reduce its debt load. General Motors owns 49% of GMAC with the balance controlled by hedge fund giant Cerberus Capital. Cerberus also owns most of Chrysler Corp. Both automakers may file for bankruptcy protection unless Congress can approve emergency loans for them.