GMAC Closes 200 Retail Loan Offices, and Wholesale Operation
We mentioned this morning in the pricing email about this announcement from GMAC, but here is the actual article. Not good news if you are employed by this company. GMAC will stop originating through its wholesale lending subsidiary, shut down 200 retail offices and lay off 5,000 employees in the process. The restructuring was approved Tuesday, parent GMAC Financial Services announced today. The statement indicated that all 200 GMAC Mortgage retail offices will be closed. In addition, Homecomings Financial LLC wholesale broker channel originations will be halted. The initiatives also include the evaluation of strategic alternatives for the GMAC Home Services business and the non-core servicing business. The moves were made "to further optimize the mortgage business as the downturn in the credit and mortgage markets persists," the announcement said. As a result of the moves, approximately 5,000 jobs will be eliminated. The layoffs work out to around 60 percent of ResCap's total workforce and impact a range of administrative and managerial positions. Around 3,000 employees will be given notice this month, while the remaining 2,000 cuts will occur by yearend.