Fortress Buying GMAC European Mortgage Biz.

Apr 13 2010 | 10:29am ET

Fortress Investment Group has snapped up GMAC’s European mortgage business, acquiring as much as $12.9 billion in assets.

Affiliates of the New York-based alternative investments giant are buying Residential Capital’s mortgage platforms in Germany, the Netherlands and the U.K. Separately, the firm bought 6,000 British residential mortgage whole loans from ResCap for US$177 million.

The main deal includes some loan assets, non-performing loans and servicing rights, and stake of operating entities in the three countries. All told, Fortress is getting some 10% of ResCap’s assets.

GMAC, which received more than US$17 billion in U.S. government bailout money, is shedding businesses to refocus on its core auto lending business.

“The agreements to sell the European mortgage assets and business are key steps toward our objective of reducing the ongoing exposure for GMAC from the legacy mortgage operation,” GMAC CEO Michael Carpenter said.

The Detroit-based lender will see neither a gain or loss from the sale, it said.


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