Residential Capital LLC, the mortgage unit of GMAC that controls Ditech.com in Costa Mesa, posted a miserable second quarter loss — $1.9 billion — but GMAC says in an SEC filing today that things may be looking up at least in ResCap’s U.S. operations.
This year’s second quarter loss was a huge jump from the $254 million in red ink ResCap reported in the same period last year. GMAC blamed the increase on “significant losses” on sales of pools of mortgages and additional set-asides for loan losses due to deteriorating markets in parts of Europe.
Because of the market conditions in Europe, GMAC said ResCap was halting mortgage loan production everywhere except the U.S. and Canada.
But things may be looking up domestically for ResCap. GMAC said its U.S. operations are beginning to stabilize after it slashed its balance sheet to reduce risk.
“While prime conforming loan production decreased modestly year-over-year with $12.2 billion in the second quarter of 2008 versus $12.7 billion in the year-ago period, production of higher-margin government loans increased to $3.8 billion this quarter compared to $800 million in the second quarter of 2007.”
For related news:
- General Motors may rescue parent of Ditech.com
- Ditech owner in cash crunch
- Ditech owner posts $724 million loss, considers sale of units
- Update: ResCap cutting 3,000 jobs
- Schwarzenegger, servicers agree to ‘fast-track’ subprime workouts
- GMAC ‘tests’ scare tactic
- Ditech.com to move loan processing to Phoenix
there goes another moan to ditech…
Ditech must have one of those medical marijuana cards because they’re smoking something.
This is what DiTech is telling GMAC?……..c’mon, GMAC needs to dump them and concentrate on their “core” business.
…besides Ditech is one of the most deceptive lenders out there today…you can still hear/see their advertisements of below market rates (or so it seems rates are below) a closer look and you will find on their web site that they are advertising 6.125% 30 year fixed….as you read the details, you then find there are 2 discount points needed to be paid and you must have a minimum of 731 fico.
Sounds like Louis can’t qualify
ditech should be run out of business. they are unethical, incompetent and flat out liars.