GMAC posts third-quarter loss on its mortgage loans after housing crash

City A.M. Reporter
GMAC Financial Services, a US lender that has received $12.5bn ($7.54bn) in government assistance, posted a third straight quarterly loss yesterday as its mortgage business continues to reel from the housing market collapse.<br /><br />The third-quarter net loss for Detroit-based GMAC was $767m, compared with a loss of $2.5bn a year earlier.<br /><br />GMAC&rsquo;s auto finance unit had a profit of $395m in the quarter, while its mortgage operations posted a loss of $747m.<br /><br />The lender has struggled as the deteriorating auto and housing markets have caused financing volume to decline and credit losses to increase.<br /><br />GMAC&rsquo;s owners include automaker General Motors and the US private equity firm Cerberus Capital Management .<br /><br />GMAC said that during the quarter some businesses -- including its US consumer property and casualty insurance business and some financing business in Argentina, the UK and Italy -- were classified as discontinued operations.<br /><br />Excluding those businesses, its loss from continuing operations was $671m, it said.<br /><br />The earnings report comes a week after the Treasury Department said it was in talks with the New York-based lender to give it a third round of taxpayer aid. However, a Treasury spokeswoman declined to provide updates on the talks yesterday.