ResCap Posts $2.3B Loss

ResCap, the residential lending division of GMAC Financial Services, lost $2.3 billion in the third quarter as credit losses, writedowns, and a weakening secondary market continued to hamper the company.ResCap said weakness in the housing market was a big factor in the company's results. The company laid off some 3,000 employees during the quarter, accounting for about 25% of ResCap's staff. But Eric Feldstein, GMAC Financial's chief executive officer, said ResCap is eager to resume making "high-margin, nonconforming product as secondary-market distribution becomes available." He said ResCap "remains committed to offering a broad and competitive menu of high-quality products to its customers."