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GM considers GMAC sale

Shares in General Motors have risen by 11% after the company revealed it is considering selling a controlling stake in its financing, mortgage and insurance business, General Motors Acceptance Corp.

It is believed to be considering selling the a stake to help restore its investment grade rating and renew its access to low-cost funding.

GMAC made profits of $675m during the quarter, at a time when GMs core North American care operations lost $1.6bn.

Mortgage operations earned a record $408m in the third quarter of 2005, up from $266m in the third quarter of 2004. GMAC’s residential mortgage businesses benefited from increased gains of sales of mortgages as well as certain investment securities.

GMAC’s commercial mortgage business also experienced an increase in third-quarter earnings, largely due to increases in fee and investment business.

In August 2005, GMAC entered into a definitive agreement to sell a 60% interest in the commercial mortgage business. The transaction, which would protect its investment grade credit rating, is on track to close around year-end.


The vital statistics of breast cancer

This is Breast Cancer Awareness month, which aims to raise awareness of the risk of suffering from breast cancer. It also aims to raise awareness of the disease among health professionals and to raise funds for research.

Commercial loan terms extended

State Securities is extending the maximum terms of its commercial mortgage range as part of its continued growth strategy. The extension means commercial mortgages will be available over a term of up to 25 years, giving borrowers the option to reduce their monthly repayments by spreading them over a longer loan term.

Us little guys need good BDMs too

Online systems can’t replace talking to good business development managers but lenders seem to be spreading them so thinly that smaller broker firms are missing out, says Sue Read

Fewer networks serve the same ARs

Though the number of ARs has remained pretty static the FSA web register shows the number of networks is falling – a trend that seems likely to continue, says Richard Griffiths


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