Office Closings, Layoffs at ResCap

On Sept. 5, a Charlotte, N.C., facility will shut down, GMAC ResCap spokesman Brett J. Weinberg told MortgageDaily.com in a statement. The closing will affect 71 associates, with some losing their jobs and receiving severance packages as well as outplacement assistance.

In addition, an office in Cherry Hill, N.J., will close on Oct. 4, impacting 337 positions, Weinberg said. But all of the Cherry Hill associates are being offered opportunities at nearby locations.

The closing of a facility in Petaluma, Calif., on Oct. 31 will impact 62 jobs, he added. Some of these employees will be offered other positions at the company, while the rest will receive severance packages and outplacement assistance.

“The decision to consolidate these specific facilities was made to help ResCap’s U.S. lending division increase operating efficiencies, reduce costs, and to provide a consistent platform with a focus on delivering high quality products and services,” the statement said.

The Minneapolis-based company has been scrambling to shore up capital following an $0.9 billion first quarter loss and a $4.3 billion loss for all of 2007. Earlier this month, a consortium of 50 international financial institutions agreed to refinance or advance more than $60 billion in loan facilities and bond issues.

Since last year, more than 5,000 jobs have been eliminated at the GMAC Financial Services subsidiary and affiliates.