Nervous wait for GMAC staff

Sources close to GMAC-RFC say staff at the firm will have to wait until the end of September to discover whether they will share the fate of the 5,000 US workers axed by parent firm GMAC.

Last week GMAC unveiled cuts at subsidiary ResCap, its international mortgage funding, origination and securitisation arm.

The cull accounts for 60% of the company’s administrative and management staff in the US and is a response to market conditions.

Tom Marano, chairman and chief executive of ResCap, says: “While these actions are difficult, they are necessary in this challenging environment.”

A spokesperson for GMAC-RFC insists the US cuts will have no impact on the UK business.

But Mortgage Strategy has been informed that staff at GMAC-RFC were told last week to dial into a conference call announcing the US job cuts.

Senior managers then told staff that they would not be able to officially reveal what was happening to the firm until the end of the month.

There is speculation that this is a result of employment laws forcing firms to leave six months between waves of redundancies. In April GMAC-RFC axed 280 staff.

One source says: “Officially, it’s business as usual but regarding how the US restructure will affect us, we won’t know until the end of the month. We haven’t had anything to sell for a year. Our business has been keeping the GMAC-RFC brand out there.”

In the US, GMAC has stopped offering mortgages via its broker channel, Homecomings.

ResCap says it will still originate mortgages in the US and overseas but its focus will be on expanding its servicing platform, particularly for arrears and repossessions.