GMAC Financial, which controls the nation's fifth largest mortgage banking franchise, is talking to the Treasury Department about the government investing up to $5 billion in additional capital into the struggling mortgage and auto lender.

According to published reports, Treasury officials have confirmed the talks but GMAC, for now, is saying little about the situation.

"GMAC continues to work with the Federal Reserve regarding the remaining capital requirements related to the Supervisory Capital Assessment Program," said a company spokeswoman. "We will comply with the Federal Reserve Bank's final assessment for additional capital."

Earlier in the year, the Treasury told GMAC to raise an additional $11.5 billion in capital after undergoing a "stress test" along with other large banks. While other banks deemed undercapitalized have been able to raise money from private investors, GMAC has been forced to go back to the government via the Trouble Asset Relief Program.

At mid-year, Residential Capital Corp., the mortgage banking arm of GMAC, ranked fifth nationwide with $383 billion in housing receivables.

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