GMAC ResCap
GMAC ResCap, Inc., earlier Residential Funding Company LLC and Residential Capital Corporation, was a residential mortgage loan originator and servicer based in Minneapolis, Minnesota. It was a subsidiary of GMAC. As a result of its exposure to subprime lending during the subprime mortgage crisis, the company filed for bankruptcy protection in 2012 and underwent liquidation in December 2013.
History
In 1982, Residential Funding Company LLC was formed as a subsidiary of Northwest Bank. It began operations in 1986.In 1990, the company was acquired by GMAC Mortgage Corporation.
In 2005, GMAC, a subsidiary of General Motors, transferred ownership of GMAC Mortgage Corporation and Residential Funding Corporation to Residential Capital Corporation and contributed $2 billion of equity.
As of the end of 2006, the company had $48 billion, or 76% of its mortgage portfolio invested in subprime loans.
In January 2007, the company eliminated 1,000 jobs.
In October 2007, the company eliminated 3,000 jobs. At the beginning of 2007, the company had 14,000 employees.
In May 2008, the company reported that it may run out of money.
In June 2008, the company completed a $60 billion refinancing.
On April 17, 2012, the company missed an interest payment.
On May 14, 2012, the company filed for a pre-packaged bankruptcy that included the separation of the company from its parent, Ally Financial.
On December 11, 2013, the company's Plan of Reorganization was approved by the bankruptcy court.