Ditech

Questions Arise as GMAC Looks to Expand Lending 

GMAC Financial Services announced last week it will step up its correspondent and warehouse lending volume. The announcement comes, however, at a time when outsider observers are questioning the viability of GMAC’s Residential Capital division and other warehouse lenders are facing increased stress and government scrutiny. CreditSights, a debt ratings agency, said GMAC may reallocate ResCap’s desirable assets to other parts of GMAC and leave behind $11.4bn in debt to spin off the company and “put ResCap out of its misery,” in a report it issued last week.