GMAC Has $305 Million 1st-Quarter Loss on Home Loans

Home_loan

GMAC LLC, the finance company partly owned by General Motors Corp., said it had
a $305 million first- quarter loss and injected $1 billion into its home-lending
unit amid a “sharp downturn” in the U.S. mortgage market.

The results compared with year-earlier net income of $495 million,
Detroit-based GMAC said today. GMAC’s Residential Capital LLC lost $905 million
compared with year-earlier earnings of $201 million.

GMAC’s loss reflected ResCap’s drain as delinquencies on so-called subprime
loans climbed to a four-year high. GMAC added $500 million in equity to ResCap
last quarter and $500 million more in April to “bolster the company’s cash
position.”

Source: Bloomberg

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