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GMAC Reports $5 billion in losses

By
Mortgage and Lending with American Capital Corporation

GMAC has reported that due to the failing mortgage market, defaults and foreclosures, it expects a $5 billion loss. This comes after reports of a net loss of $10.3 billion for 2009. GMAC has accepted numerous capital infusions from the government bailout program TARP in order to stay afloat, and with these losses it is not looking to improve its position any time soon. GMAC has also reported that it will lay off about 500 employees in the coming months as a result of the company’s struggles.

GMAC's mortgage wing generated $18.1 billion in new loan originations for 2009, and has placed 32,000 borrowers into trial loan modifications and 9,000 into permanent modifications.

 

Comments (5)

Brian
Prospect Park, PA

all i can so is WOW that a huge number hope 2010 is better for everyone

Feb 04, 2010 05:20 AM
Ron Trzcinski, 410-935-5844
410-935-5844 Office - Cockeysville, MD

Christine,

So, is this a result of the economy, poor management, or both?

Feb 04, 2010 05:22 AM
Joan Zappa
Eagles Wings Realty - Montrose, CO
Professional treatment of our clients, brings awes

Christine I just saw some info concerning 5 & 7 year arms and 60% will foreclose because on no chance for a new loan, property won't appraise. Have you seen these numbers?

Feb 04, 2010 05:33 AM
Christine Hynes
American Capital Corporation - Laguna Beach, CA
Orange County Senior Loan Consultant

Brian - I think other banks are masking their losses right now by stalling on short sales and the foreclosures that they have pilling up.

Ron - I think this is all about the poor products that Wall Street and the Banks developed and support and had underwriters approve.  Don't forgot the huge dollars that all these parties made for years, what happened to all that money?  It was purely about greed for these institutions!

Nick - I have not seen those numbers but I have seen startling number for the negative amortization programs, especially in places like California where these types of loans were popular.

Feb 05, 2010 02:03 AM
Dale Terry
Yadkinville, NC

There is something unlying the GMAC story. Why is it still in business?  It is clear that the government will need to step in again or lose its investment like with CIT Group.  Must be some pretty big bond holders that need to be taken care of....need I say Goldman Sachs

Feb 08, 2010 03:53 AM