GMAC Financial Services has announced that its mortgage subsidiary, Residential Capital, LLC (ResCap), has agreed to sell its European mortgage assets and businesses to affiliates of certain funds managed by affiliates of Fortress Investment Group LLC.
These transactions represent approximately 10% of ResCap’s Dec. 31, 2009 total assets and approximately 40% of total assets on a pro forma basis, adjusted for the required FAS 167 accounting treatment for certain off-balance sheet securitizations that are recorded on-balance sheet effective Jan. 1, 2010. The assets in the transactions are valued at approximately the levels established in the fourth quarter of 2009 and there is no material gain or loss expected.
GMAC CEO Michael A. Carpenter said: “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.””