| GMAC Mulling Sale of Commercial Mortgage Unit
Access to capital at issue March 7, 2003 By CHRISTY ROBINSON |
| General Motors is looking into selling GMAC’s commercial unit, but plans are still in the early stages, a spokesman said.
Some members of the media recently picked up on speculations in a trade magazine about the possibility of a sale, and skewed reports came out that all of GMAC would be put on the block. However, GMAC Commercial Mortgage Corp. is the only thing being considered, and even that consideration is preliminary. “This is not a done deal,” spokesman Jerry Dubrowski said. He said GM is mulling the idea over because the commercial unit has experienced tremendous growth since it was founded in 1994, and access to capital is needed to fuel the growth of GMAC’s other units, like its residential arm. No sale price has been set. GMAC Commercial produced about $20 billion in loans during 2002, Dubrowski said. Its servicing portfolio was at about $160 billion at the end of the year, making it the No. 1 ranked servicer in 2002, according to the Mortgage Bankers Association of America. General Motors is the parent of GMAC, and its shares were down $0.61 at $30.59 during late morning trading, according to CBSMarketwatch.com. |
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Christy Robinson is the editor of MortgageDaily.com. She received a bachelor’s degree in news-editorial journalism from The University of Texas at Arlington. Her work has previously been published in The Dallas Morning News. email Christy at: ChristyRobinson@MortgageDaily.com |
