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.”