ResCap on the Block?

GMAC Financial Services has hired Goldman Sachs to start the process of selling the company's money-losing mortgage unit Residential Capital Corp., according to a new published report. In recent weeks spokespersons for GMAC have repeatedly said that a sale is not under consideration at this time but only that the company is considering its "strategic alternatives." Several weeks back, news reports surfaced that GMAC had engaged Goldman and that Berkshire Hathaway was in talks with the company regarding ResCap, the nation's fifth largest residential servicer. As reported by National Mortgage News, over the past two weeks several managers have been let go in ResCap's servicing division, including 24-year veteran Tony Renzi. Investment bankers following ResCap say selling the company could prove difficult because of the representations and warranties the government-owned company would need to provide any buyer. The new report concerning ResCap was published by The New York Post. On Friday a GMAC spokeswoman declined to specifically address the sale issue raised by the Post story.