ResCap Cutting 3,000 in Reorganization

Residential Capital Corp. confirmed Wednesday that it will restructure its worldwide mortgage operations, resulting in a charge of up to $110 million and layoffs of 3,000, or 25% of its work force.Early on Oct. 17, MortgageWire broke the news that ResCap may close its mortgage conduit, RFC. (See item below.) ResCap, the mortgage arm of GMAC Financial Services, employed 12,000 before the job cuts. GMACFS, which is now controlled by the Cerberus Capital hedge fund, blamed the restructuring and layoffs on "downturns" in the U.S. residential market and "the global dislocation of the mortgage finance and credit markets." The company can be found on the Web at http://www.rescapholdings.com.