ResCap/GMAC Cuts 1,000 Jobs, Closes Offices

Citing a declining origination market and deterioration in the subprime sector, the parent of GMAC Residential, Horsham, Pa., plans to cut 1,000 positions in its mortgage affiliates over the next nine months, according to a new public filing.As part of the cutback, ResCap will close three of its six servicing locations, leading to job losses in Blue Bell, Pa., San Diego, and Shelton, Conn. The company said severance and related expenses will cost it $10 million, but eventually will save $65 million a year. "ResCap's decision to reduce its work force and accelerate its integration process is being driven by a number of factors, including slower originations, shifts in home prices and appreciation rates, a challenging interest rate environment," and the ailing B&C sector, the company says in a new filing with the Securities and Exchange Commission. GMAC Residential and its two primary affiliates, when counted as one, rank third nationwide in production, according to the Quarterly Data Report. ResCap can be found on the Web at https://www.rescapholdings.com.