ResCap Losses Down From 1Q

Residential Capital LLC, the parent company of GMAC Residential, has incurred a loss of $254 million for the second quarter, an improvement from a $910 million loss in the first quarter but far below ResCap's performance a year earlier, when it recorded net income of $548 million.GMAC Financial Services, the New York-based parent company of ResCap, reported net income of $293 million for the quarter and noted that it represents a big improvement from the $305 million net loss recorded in the first quarter, stemming largely from ResCap's much-reduced loss. "Although severe illiquidity in the nonprime mortgage market placed increasing pressure on asset valuations, aggressive measures undertaken to reduce ResCap's nonprime exposure rendered the company less vulnerable in the second quarter to continued weakness in the market," GMAC Financial said. Those measures included a dramatic reduction in nonprime originations, which plunged from $3.3 billion in the first quarter to $700 million in the second quarter, the company reported. GMAC Financial can be found online at http://www.gmacfs.com.