GMAC Financial Services, the Detroit-based finance company, said today that it's eliminating 5,000 jobs in its troubled Residential Capital mortgage lending arm.
GMAC, which is partially owned by automaker General Motors Corp., said it also is closing 200 retail mortgage offices and ceasing new loans through outside brokers in its Homecomings unit. The company, led by former Bank of America Corp. chief financial officer Al de Molina, said it's also evaluating “strategic alternatives” for its GMAC Home Services business, which provides real estate-related services.
Digital Access for only $0.99
For the most comprehensive local coverage, subscribe today.
In the latest hit to the mortgage industry, ResCap will eliminate the 5,000 jobs, about 60 percent of its workforce, in two phases by year end, the company said. At the end of 2007, GMAC had a total of 26,000 employees.
Of the initial 3,000 job cuts, 90 positions will be affected in North Carolina, mostly in Charlotte, spokeswoman Gina Proia said. That will leave about 200 GMAC employees in Charlotte. The company is keeping its Charlotte GMAC Mortgage call center, one of the ways it will continue making mortgage loans, Proia said.
GMAC in total has about 1,250 employees in North Carolina with about 75 of those remaining at ResCap. Winston-Salem is the company's other main N.C. location.