Here is an article on the layoffs. They don’t mention that most of the losses are coming from closing the San Diego Homecomings servicing site.
GMAC ResCap to Cut 1000 Jobs
Tuesday January 16, 5:53 pm ET
GMAC ResCap to Cut 1000 Jobs in Mortgage-Related Business, Blames Slowdown
NEW YORK (AP) — Residential Capital LLC, the real-estate financing company owned by General Motors Acceptance Corp., said it will eliminate 1,000 positions by October as it grapples with “the continued deterioration” in the subprime mortgage sector.
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The Minneapolis-based company, known as ResCap, said in a filing with the Securities and Exchange Commission that it will reduce its work force by 800 jobs and will not fill 200 open positions in its U.S. mortgage business. It has 14,000 employees worldwide.
ResCap estimated that it would incur about $10 million in severance and related costs associated with the cuts, but expects to save $65 million in 2008.
The company attributed the move to a number of factors including slower loan originations, a cooling housing market, a challenging interest-rate environment and the continued deterioration in the business of lending to people with less-than-perfect credit histories.
Detroit-based General Motors Corp. now owns 49 percent of GMAC, with the rest owned by an investor consortium led by Cerberus FIM Investors LLC.
