After several quarters of horrendous losses, GMAC's residential mortgage division Residential Capital (ResCap) posted a small profit in the first quarter, but the company attributed the turnaround, in part, to the "extinguishment of debt."
In its earnings materials, parent company GMAC Financial Services offered no color commentary on ResCap's results. Its performance during the quarter contained both good and bad news.
ResCap earned $110 million compared to a loss of almost $1 billion in the same period a year ago. The mortgage division is continuing to sell delinquent assets, though it provides no details on sales.
In its earnings statement, the firm says it reached an "important mortgage repurchase settlement" but provided no information.
At press time, a company spokeswoman did not return a telephone call and email about the matter.
Meanwhile, ResCap originated $13.3 billion in home mortgages during 1Q, a 26% decline from 4Q09.
Compared to 1Q09, production was relatively flat. GMAC has retained Goldman Sachs to sell ResCap.
