GMAC records big quarterly loss

by BN07 Aug 2009

US-based mortgage lender GMAC Financial Services has recorded a pre-tax loss of US$2bn (A$2.38bn) in its mortgage business in the second quarter of 2009.

The loss was attributed to increased credit costs due to the distressed mortgage market.

For the same period last year, the Detroit-based company recorded a pre-tax loss of $1.8bn in its mortgage business.

The US lender's Australian subsidiary, GMAC-RFC Australia, stopped writing new business in June last year and was squeezed out of the market due to the closure of securitisation markets.

GMAC's total after-tax loss for the quarter totaled $3.9bn

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