GMAC Financial Services has replaced Citigroup Inc. as the fourth biggest residential lender in the country. But losses at the mortgage unit — more than $13 billion since 2007 — kept GMAC in the red.
Third-quarter residential originations were $15.4 billion, according to earnings data reported today. Volume eased from the second quarter’s $18.5 billion and $11.2 billion during the third-quarter 2008.
GMAC’s latest activity was enough to bump Citigroup — which reported $14.3 billion in third-quarter production — from its No. 4 spot.
From January through September, the New York-based company’s residential U.S. originations were $47.1 billion.
Prime conforming production accounted for $8.0 billion of third-quarter volume, while government originations were $7.1 billion and prime jumbo business was $0.4 billion.
Residential operations include activity from Residential Capital LLC, Ally Bank and ResMor Trust.
GMAC’s domestic servicing portfolio finished the third quarter at $353.3 billion, off slightly from $353.9 billion at the end of the second quarter and $391.9 billion a year earlier.
Mortgage assets rose to $57 billion on Sept. 30 from $54 billion three months earlier.
Pre-tax net income from the mortgage operations was an $0.747 billion loss, improving from the $2.044 billion loss in the prior quarter and the $1.949 billion loss a year earlier.
So far this year, losses at the mortgage operations totaled $3.9 billion. Including $5.6 billion in losses last year and $4.3 billion in losses during 2007 — the mortgage operations have cumulatively cost the company $13.8 billion since January 2007.
GMAC set aside $515 million in the third quarter for its mortgage repurchase reserve, while the company had $79 million in legacy mortgage provision expenses.
“Results in the quarter were adversely affected by losses related to legacy assets in the mortgage operations,” today’s report said.
GMAC had a third-quarter net loss of $0.767 billion — a significant improvement from the $3.903 billion loss in the prior period. A year earlier, the company had a $2.523 billion loss.
The U.S. government holds a 35 percent stake in GMAC, while Cerberus, its affiliates and its co-investors hold another 40 percent. GM and GM Trust have just over a one-quarter stake.