GMAC Financial Services announced today a plan for reducing mortgage lending and service operations costs and risks in light of a still-floundering housing market. The plan is to close all 200 of GMAC?s retail locations, which means laying-off approximately 5,000 employees, a 60% reduction in the mortgage lending workforce. Spokewoman Jeannine Bruin says that although GMAC will no longer have a physical retail presence, they are ?very much still originating loans and servicing the customer.? About 3,000 of the layoffs are expected to take place this month, with the rest to follow by the end of the year.
See "GMAC slashing work force, reduce mortgage spending", Alex Viega, Detroit Free Press, September 2, 2008