GMAC Financial Services said first quarter residential loan production rose 61% to $13.2 billion on a sequential basis at its mortgage units but declined 29% compared to the same period last year.

Meanwhile, 20.79% of its servicing portfolio ($359 billion in receivables) was in some stage of delinquency at the end of March. A year ago it serviced $416 billion in mortgages, 11.73% of which were late. GMAC's home finance division — which includes Residential Capital Corp. (ResCap) — lost $125 million in the first quarter, a significant improvement over the same period a year earlier when it dropped $859 million.

However, the mortgage group benefited from a $900 million gain due to what it calls "the extinguishment of debt." (ResCap recently renegotiated its debt with bondholders.) GMAC also reported that profit margins "have improved due to higher government production and favorable interest rates." GMAC Financial Services, as a whole, lost $675 million in the quarter, compared to a $589 million loss in 1Q08.

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