WATERLOO -- An official with GMAC Financial subsidiary Residential Capital LLC, or ResCap, said the company will be eliminating 25 positions at the Waterloo processing operations center by May 30, and another 35 associates will have their employment transferred to another company.

The 25 layoffs are the result of "cost restructuring," according to an official statement from ResCap, provided by public relations manager Brett Weinberg. The affected employees will be offered severance packages and outplacement assistance, and the company will try to match qualified employees with open positions within the company.

All 35 employees currently employed in the GMAC ResCap Home Connects tax group in Waterloo will have their employment transferred to First American effective June 1. GMAC ResCap recently reached a deal with FirstAmerican to provide "selected services" related to the tax group. The employees will continue to operate from the GMAC Mortgage building in Waterloo.

GMAC Financial, which is majority-owned Cerberus Capital Management LP and minority-owned by General Motors, reported a fourth-quarter loss of $724 million in 2007 compared with a net income of $1 billion in the fourth quarter of 2006. The adverse performance in '07 was blamed on the effect on ResCap from the "continued disruption in the housing, mortgage and credit markets," according to a February 8 ResCap press release.

"Losses in the fourth quarter decreased compared to the prior quarter. However, GMAC's performance throughout 2007 was severely affected by the ongoing challenges in the mortgage, credit and capital markets," GMAC Chief Executive Officer Eric Feldstein said. "As a result, 2007 was a year of significant transformation for the organization -- driving aggressive actions designed to reduce risk, streamline operations and rationalize our cost structure. Steps taken included reducing the balance sheet by $40 billion, bolstering liquidity, tightening underwriting standards, significantly restructuring operations and refocusing our business on core fundamentals.

"We believe the steps taken position the company for future success."

Contact Drew Andersen

at (319) 291-1418

or drew.andersen@wcfcourier.com.