Blown Mortgage - Latest Comments in GMAC/ResCap to lay off 5,000 - Close GMAC Retail, Homecoming Wholesale

Re: GMAC/ResCap to lay off 5,000 - Close GMAC Retail, Homecoming Wholesale

mikew — Thu, 04 Sep 2008 10:29:25 -0000

I wish all of the good hard working employees who have been negatively affected by these unfortunate closings the very best. I hope that GMAC is offering all of you a nice severance package.

While I am happy to see a very large competitor of mine become nothing more than a dispised online originator ,I do feel deeply for all of the good employees during these challenging time.

Re: GMAC/ResCap to lay off 5,000 - Close GMAC Retail, Homecoming Wholesale

louise — Thu, 04 Sep 2008 03:06:16 -0000

I was laid off from GMAC/Rescap on 8-6, originally hired with Ditech.com, asked to switch over to retail in January this year. The switch was sold to me and approximately 12 others processors from Ditech that the retail side would be the side to survive if there were layoffs. All 12 of those processors who went like little lambs, with 10 gone and 2 remaining. So jobless in NJ, sorry to hear about you getting laid off, but after a month of looking and sending resumes out to anyone that would accept my resume, not even one phone call, hopefully you will have better luck. I agree RUN NOW for those who are left. I am sure that the reason they did not completely close down Ditech here in Phoenix is due to the lease they have on the building and probably cannot get out of the lease.

Re: GMAC/ResCap to lay off 5,000 - Close GMAC Retail, Homecoming Wholesale

jobless in NJ — Wed, 03 Sep 2008 22:36:15 -0000

I was part of the layoff today..... from our bottom of operations view, it could be seen a mile away. I have now been an employee of two of the biggest home lending operations out there. It was good while it lasted. I made it thru the refi boom and cashed in with ditech. If anyone is still out there... still standing.....RUN NOW! Yes, I will agree that this industry is cyclical, but its just not worth the roller coaster ride anymore. So now I look for a new job along with all the other sad souls that no longer have loans to process and fund. Thanks for listening, just figured i would vent a little

Re: GMAC/ResCap to lay off 5,000 - Close GMAC Retail, Homecoming Wholesale

Joe Dahleen — Wed, 03 Sep 2008 19:41:24 -0000

wow - this is big news. GMAC even runs banner adds at the top of this page.
Looks like this will not only effect the employees of GMAC/homecoming but a large number of ad firms all over the country.

“Lenders need to do more than just cut back on their expenses,” said Andrew J. Schell, managing partner at Mortgage Banking Solutions. “To survive in this lower margin world, lenders must find ways to optimize their operations and adapt to achieve sustainable profitability by fundamentally changing the way they do business.”

Re: GMAC/ResCap to lay off 5,000 - Close GMAC Retail, Homecoming Wholesale

Fernando Herboso — Wed, 03 Sep 2008 18:07:49 -0000

As a real estate agent making a living selling homes. . .my options seems to be getting smaller and smaller. . who is going to fund new mortgages at the end? The goverment can do so much.

Re: GMAC/ResCap to lay off 5,000 - Close GMAC Retail, Homecoming Wholesale

James — Wed, 03 Sep 2008 17:18:31 -0000

GMAC will continue to originate loans through ResCap channels: GMAC Bank correspondents, GMAC Mortgage direct; Ditech call centers; and the GMAC Mortgage Charlotte, N.C., call center. the Charlotte Center is expanding operations from 70 loan officers to 120.

Re: GMAC/ResCap to lay off 5,000 - Close GMAC Retail, Homecoming Wholesale

morganb — Wed, 03 Sep 2008 17:06:49 -0000

Fielding - you're right. As a former correspondent lender who got
stuck with loans when new century tanked I can guarantee you that they
are going to see the core side of the business collapse with a lack of
confidence.

Re: GMAC/ResCap to lay off 5,000 - Close GMAC Retail, Homecoming Wholesale

Fielding Mellish — Wed, 03 Sep 2008 15:34:13 -0000

Retail gone. Wholesale gone. Looking for a buyer for their servicing operations. And we're supposed to belive that they'll continue to operate the correspondent division? Don't think so. Expect that shoe to drop soon, hastened by a reluctance of smart correspondents to lock loans with a company whose continued existence is so precarious. Remember American Home Mortgage?

Re: GMAC/ResCap to lay off 5,000 - Close GMAC Retail, Homecoming Wholesale

morganb — Wed, 03 Sep 2008 15:05:16 -0000

actually they are shuttering wholesale on the homecomings side of the
game and only sticking with retail and correspondent lending.

Re: GMAC/ResCap to lay off 5,000 - Close GMAC Retail, Homecoming Wholesale

Russ — Wed, 03 Sep 2008 14:07:35 -0000

Interesting that they are shutting down retail and not wholesale. I know you believe wholesale is on a death watch, but I believe getting rid of retail and having more effective wholesale is the way for these companies to go. There is no way retail can originate as effectively and efficiently as the broker channel with the appropriate safeguards in place (like actually underwriting the loans or vetting potential brokerages). Maybe they figured this out?