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.
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