GMAC Financial Services says it reached a deal to sell its European mortgage operations to an asset management firm, bringing it closer to its goal of withdrawing from the home financing business.
GMAC, which specializes in automotive financing, says the assets to be sold represent about 10 percent of mortgage subsidiary Residential Capital LLC as of Dec. 31. GMAC has been trying to shed its money-losing mortgage business.
GMAC says the sale to New York-based Fortress Investment Group LLC effectively marks its exit from the European mortgage market.
GMAC, which is majority-owned by the federal government, said earlier this year that its overall mortgage business lost $4 billion in the fourth quarter.
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