ResCap: Rock-solid residential mortgage provider In 2005, GMAC Residential and GMAC-RFC combined operations to form Residential Capital Corporation (ResCap). ResCap received a separate credit rating as a result of a separate capital structure and key corporate governance protections. Now a leading global real estate finance company with 14,000 employees and operations in 10 countries, ResCap is organized into four operating business segments: GMAC Residential, Residential Capital Group, Business Capital Group and International Business Group.
ResCap is a market leader with a diversified portfolio. In the United States, it is the number-one warehouse lender, the sixth-largest mortgage originator and mortgage servicer, the third-largest mortgage subservicer, the fifth-largest private mortgage conduit and the sixth-largest real estate brokerage franchisor. Internationally, ResCap is the largest mortgage brokerage in Canada, the leading non-conforming mortgage originator and 10th-largest mortgage originator in the United Kingdom, the eighth-largest mortgage originator in the Netherlands and Europe’s fourth-largest mortgage securitizer.
In 2005, GMAC Residential successfully increased its market share with a balanced mix between retail (GMAC Mortgage), consumer-direct (ditech.com® and GMAC Mortgage) and wholesale (GMAC Bank). GMAC Bank wholesale lending was the fastest-growing channel with record volume of $56.3 billion. GMAC Mortgage focused on the expansion of client and customer relationships and selling to the GM family of employees, dealers and suppliers, while ditech.com was supported through a variety of direct response advertising strategies. The GMAC Home Services businesses, GMAC Real Estate and GMAC Global Relocation, continue to be differentiated with their Premier Service® programs, which resulted in $52 billion in sales volume and more than 13,000 relocations in 2005.
Residential Capital Group continued its warehouse lending leadership with more than $15 billion in commitments and became a top-five private issuer of mortgage-backed securities with 2005 issuance of $56.1 billion. Loan acquisition and wholesale lending businesses have grown substantially year after year by expanding product offerings through wholesale lending channels. In 2005, loan production volume grew to a record $72.2 billion. International Business Group (IBG) originated $11.7 billion in loans in the United Kingdom, issued its first mortgage-backed security in Germany and launched innovative loan products through multiple lending channels in all of its markets.
The Business Capital Group, which focuses primarily on construction and development lending in the United States, grew outstandings to $5.6 billion and achieved record net income of $201 million.
IBG grew substantially in 2005, originating a record $16.5 billion in loans and issuing $8.6 billion in mortgage-backed securities. IBG formed GMAC-RFC Property Finance to provide construction financing in the United Kingdom, established de novo mortgage lending businesses in Australia and Spain, and formed joint ventures in Brazil and Chile.
