View more on these topics

GMAC Financial Services sells European mortgage assets

GMAC Financial Services has agreed to sell its European mortgage assets and businesses to asset manager Fortress Investment Group in a move which will see GMAC effectively exit the European mortgage market.

The assets being sold come from GMAC’s mortgage subsidiary Residential Capital, also known as ResCap.

As part of the deal, the sale will include certain loan assets such as non-performing loans and servicing rights, and the shares of businesses related to ResCap in the United Kingdom, Germany and The Netherlands.

The transaction is still subject to approval by the US regulator.

In a separate deal, GMAC completed a whole loan sale in the UK for $177m, or £116m on March 31.

This loan sale, together with the Fortress transaction and other whole loan sales that are in progress, mean that GMAC will effectively exit the European mortgage market.

Michael Carpenter, CEO at GMAC, says: “The agreements to sell the European mortgage assets and businesses are key steps toward our objective of reducing the ongoing exposure for GMAC from the legacy mortgage operation.

“This is a significant achievement and will contribute in putting GMAC on a path toward improved performance.”

Recommended

Northern Rock revamps website

Northern Rock has launched a new direct website which it says is designed to make it easier for customers to find a Northern Rock mortgage and learn more about the purchase process.

JONATHAN CLARK, THIS WILL KEEP LENDERS ON TOES

Virgin to launch range of mortgages this year

Virgin Money is gearing up to launch its much-anticipated mortgage range by the end of the year and is considering using brokers, Mortgage Strategy can reveal. Virgin Money, part of Sir Richard Branson’s Virgin Group, says that its products will initially be available direct but it regards brokers as a key distribution channel. A spokesman […]

Legislation paved the way for today’s claims companies

I have just read the article concerning Ratio Money closing (Mortgage Strategy Online). I’ve been in this business for 40 years and since the advent of the Consumer Protection Act in 1987 there has always been someone suggesting to consumers that they need never take any responsibility for their actions or decisions. I regularly get […]

JOHN MURRAY, CONSULTING EDITOR, LENDING STRATEGY

Market fixing is an old and failed idea

The Financial Services Authority is to assume some responsibility for macroeconomic monitoring, although you might think this is a job for the Treasury or the Bank of England. But I suppose three inputs are better than one, and there’s probably a joint economic stability taskforce on the lookout for signs of the housing market overheating […]

Why your clients need some tough love

In any relationship that matters, professional or personal, you should be upfront with someone if you think they’re making a decision or doing something they might later regret. Being honest with someone and having their best interests at heart, however hard the message, is key to building trust in any relationship. So how does this […]

Newsletter

News and expert analysis straight to your inbox

Sign up