GMAC Losing Less Money on Mortgage Operations

The mortgage division of GMAC Financial Services lost $747 million in the third quarter — thanks in part to loan repurchase liabilities — but its performance was a marked improvement over a $2 billion loss in the same period last year. GMAC's residential unit, Residential Capital Corp., is still grappling with a large portfolio of nonperforming mortgages, $7 billion compared to $8.5 billion a year ago. ResCap originated $15.8 billion in the third quarter, a 33% gain from the third quarter of 2008. Year-to-date, its fundings are almost on par with last year. According to the earnings statement, GMAC took a $515 million charge because of mortgage repurchase requests. No details were provided. ResCap is the nation's fifth largest player in mortgages, according to National Mortgage News and the Quarterly Data Report.