There have been many rumors circulating in the mortgage industry and the banking industry about possible bankruptcies and outright failures. And it appears that another of the big boys is about to go down: Reports abound that GMAC may file for bankruptcy as early as tomorrow.
Of course, this is not completely certain, but there are some certainties. Mortgage retail offices will be closing, reports the Mortgage Lender Implode-O-Meter:
A separate announcement
also went out to brokers. All 200 GMAC Mortgage retail offices are
being closed, and the Homecomings Wholesale Channel will cease loan
originations through brokers.
In other areas, other home loan related products while be cut, although the Ditech brand will remain intact for mortgage lending.
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I have heard from several people who are in senior management at GMAC that they probably go BK. State regulators are inside of GMAC Bank already conducting liquidity inquiries.
Posted by: Steve Wier | September 17th, 2008 10:31 am |
I have a close contact
( friend )with intimate knowledge of the Government inquiry into GMAC Bank and she indicated the closure is imminent.
Posted by: Carl Pressman | September 17th, 2008 10:35 am |
GMAC is insolvent presently. Its closure is certain at this time.
Posted by: jimmy | September 17th, 2008 3:57 pm |
I agree, GMAC is currently Bankrupt. There only means of creating large enough revenues to stave off Bankruptcy filing has now colapsed - auto lending. Their Mortgage lending has also collapsed. As for their insurance unit - GM and Cyberus will sell it off to raise capital for themselves. Say goodby to GMAC.
Posted by: Carl worlberg | October 16th, 2008 11:17 am |