Sunday, September 07, 2008
GMAC Financial - pulling out
Call it "streamlining" (as their press release does), call it "quits" ... just call it what it is --- a sign of the times.
GMAC Financial Services has announced (press release) that the company is "... closing all 200 GMAC Mortgage retail offices, ceasing originations through the Homecomings wholesale broker channel, further curtailing business lending and international business activities, and right-sizing functional staff support. In addition, the company is evaluating strategic alternatives for the GMAC Home Services business and the non-core servicing business. These collective actions will reduce the ResCap workforce by approximately 5,000 employees, or 60 percent. Approximately 3,000 employees will receive notification this month with the majority of the remaining 2,000 reductions expected to occur by year-end."
More to come ... this is not the last of the shake-up/shake-down in the real estate-related companies.
At least, that's our opinion.