Bloomington Based Rescap to cut 5,000 jobs, Streamline Operations

by Alex Stenback on September 3, 2008

We covered the first round of cuts at ResCap, GMAC’s wholly owned real estate finance subsidiary, and now it looks like some, if not all, of the 600 some odd positions remaining at the Bloomington based financial services outfit may be in Jeopardy.  From the Strib:

As part of the cutbacks announced today, ResCap said it would close all 200 of its GMAC Mortgage offices, stop originations through its Homecomings wholesale broker channel and cut back on business lending. ResCap is also "evaluating strategic alternatives" — a phrase that often means a sale is being considered — for its GMAC Home Services business.

Stark evidence that the pain in the mortgage industry, and by extension the real estate industry, is far from over, from the press release:

"Conditions in the mortgage and credit markets have not abated and, therefore, we need to respond aggressively by further reducing both operating costs and business risk."

No word yet on whether the atrocious Ditech (also a ResCap property, natch) billboards will come down, but we can dream.

{ 1 comment… read it below or add one }

Hussey September 6, 2008 at 4:06 am

As part of the cutbacks announced today, ResCap said it would close all 200 of its GMAC Mortgage offices, stop originations through its Homecomings wholesale broker channel and cut back on business lending. ResCap is also “evaluating strategic alternatives” — a phrase that often means a sale is being considered — for its GMAC Home Services business.

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