GMAC may sell parts of ResCap lending unit

DETROIT, Nov. 21 (UPI) -- GMAC Financial Services Corp. is exploring selling parts of its embattled Residential Capital Corp. mortgage arm, the U.S. financing company said Wednesday.

The company, formerly known as General Motors Acceptance Corp., said it had hired advisers "to investigate strategic alternatives" for ResCap, including selling parts of the real estate finance company's operations, "to improve ResCap's liquidity and to adjust its business in light of current domestic and international market conditions."

ResCap has been stung by massive losses tied to the U.S. housing and mortgage market meltdown, The Wall Street Journal reported. Weakness at ResCap led GMAC to report a $1.6 billion loss in the third quarter.

The company said the advisers' investigation had led to "no substantive binding contracts, agreements or understandings with respect to any particular institution."

At the same time, GMAC said it submitted a non-binding indication of interest to buy a non-U.S. mortgage lending institution.

If the purchase takes place, GMAC would merge ResCap's local mortgage business with the acquired institution, GMAC said.

GMAC did not say what company it sought to acquire, but London's Sunday Times said GMAC was involved, with U.S. private-equity firm Cerberus Capital Management LP, in a bid to buy troubled British bank Northern Rock PLC.