ResCap Plans Expansion in Wholesale Mortgage Lending

Residential Capital (ResCap), the mortgage subsidiary of GMAC Financial Services, confirmed to HousingWire its plans for a re-entrance into wholesale mortgage lending. It marks the first expansion into the wholesale space since ResCap ceased originations through its broker channel two years ago. “[W]e are entering the wholesale arena with a measured roll-out in limited markets,”  said GMAC spokesperson James Olecki in an e-mail. “We will be offering all of the products we currently offer to the rest of our channels, not just jumbos.” Steve Gilcrest, former head of national operations of GreenPoint Mortgage, will lead the effort as senior vice president of wholesale lending. GMAC could not disclose dollar or volume figures expected for the wholesale initiative. The company exited its wholesale broker channel — also known as Homecomings Financial — in Q308 after significant losses and ratings downgrades put the future of ResCap in doubt. “While these actions are extremely difficult, they are necessary to position ResCap to withstand this challenging environment,” said ResCap chairman and CEO Tom Marano in September 2008. “Conditions in the mortgage and credit markets have not abated and, therefore, we need to respond aggressively by further reducing both operating costs and business risk.” Olecki noted ResCap continued to offer limited broker transactions through its correspondent network, even after the exit from Homecomings. Write to Diana Golobay.

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