Another One Bites the Dustby Tim Manni
GMAC, the financing company, said Wednesday that it planned to eliminate about 5,000 jobs at its Residential Capital mortgage unit and close all 200 GMAC Mortgage retail offices to combat weak housing and credit markets.
The job cuts will affect about 57 percent of ResCap’s work force, leaving the unit with 3,800 employees, a GMAC spokeswoman Gina Proia said. Most of the cuts will take place this year.
GMAC said it would stop offering home loans through its Homecomings Financial broker channel. It will also evaluate strategic options for GMAC Home Services, which helps companies relocate employees, and “non-core” mortgage servicing businesses. GMAC plans to keep offering mortgages directly “where there is a secondary market to sell the loans.”