GMAC To Sell Home Services Assets To Brookfield

Struggling home- and auto-lender GMAC Financial Services has confirmed that it will sell off part of its Residential Capital (ResCap) subsidiary to Canadian firm Brookfield Asset Management, as part of its on-going efforts to gain capital and stay afloat. ResCap is a residential real estate finance company which originated and serviced the sale or securitization of mortgage loans on the secondary market. As such, it was torpedoed by the sub-prime crisis, and speculation has been mounting for months over its survival.

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