GMAC ResCap

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GMAC ResCap, Inc.
Former type Subsidiary
Industry Financial Services
Fate Bankruptcy as part of Chapter 11 liquidation
Defunct December 17, 2013 (2013-12-17)
Headquarters Minneapolis, Minnesota,
USA
Products Mortgages
Employees 14000
Parent Ally Financial
Website www.gmacrfc.com

GMAC ResCap (Residential Capital) was a financial service company that focuses on residential estate loans that went bankrupt in 2013. It was part of General Motors' finance group GMAC which was then taken over by Ally Financial. Its corporate headquarters were in Minneapolis, Minnesota. Its subsidiaries include GMAC Mortgage and online home lender Ditech.

History[edit]

The company was founded in 1982 as a subsidiary of General Motors' GMAC.

On May 15, 2012, Ally put the company into bankruptcy. ResCap posted a $402 million loss in 2011 and had missed a $20 million payment on unsecured debt on April 17, 2012. ResCap listed $10.9 billion in mortgages on December 31, 2012, after wiping $22 billion in mortgages off its books in 2009, 2010 and 2011. The company had booked a substantial number of subprime mortgages. The bankruptcy was seen as a step by Ally to exit the mortgage business to focus on its profitable auto loan and direct banking business.[1][2]

On December 17, 2013, the company went out of business as per its Chapter 11 liquidation filing under bankruptcy.[3]

Business operations[edit]

The business had operations in the United States, Canada, Mexico, Brazil, United Kingdom, Germany, Netherlands, Spain and Australia.

References[edit]

  1. ^ "Former GMAC puts mortgage unit in bankruptcy". Content.usatoday.com. 2012-05-14. Retrieved 2012-05-20. 
  2. ^ Curan, Catherine (2012-05-16). "ResCap goes broke, families go to limbo". NYPOST.com. Retrieved 2012-05-20. 
  3. ^ "Company Overview of GMAC ResCap, Inc.". Bloomberg BUsinessweek. Retrieved May 20, 2014. 

External links[edit]