GMAC Financial Services net loss narrows in 3Q
The Associated PressGMAC Financial Services, the main lender for General Motors Co. and Chrysler Group LLC, said Wednesday it lost $767 million in the third quarter, as its struggling home mortgage unit continued to weigh on its results.
However, the company said its auto lending unit turned a profit during the quarter and its mortgage unit, ResCap, posted a smaller loss than last year.
The company's earnings report comes a week after the Treasury Department said it was in talks with the New York-based lender over a third round of taxpayer aid. GMAC offered no updates on those talks on Wednesday.
GMAC has already received $12.5 billion in loans from the U.S. government, which owns a 35 percent stake in the company. The lender is a major player in the auto industry, providing loans for large number of GM and Chrysler dealers and customers.
GMAC said its loss fell to $767 million from a loss of $2.52 billion in the same quarter last year. Excluding several discontinued business lines and other other items, the company said it lost $77 million.
GMAC said its mortgage-lending unit continued to struggle. The unit has been hit hard by the downturn in the housing market and lost $747 million during the quarter. That's down from a $1.95 billion loss last year.
Its auto-financing unit turned a profit of $395 million, compared with a year-ago loss of $379 million. GMAC, which is in the process of taking over lending for Chrysler, said its lending to Chrysler customers more than tripled in the third quarter.