ResMor is currently owned by GMAC Residential Funding of Canada Limited, an indirect wholly owned subsidiary of Residential Capital, LLC (ResCap). Interestingly (perhaps confusingly), ResCap itself is an indirect wholly owned subsidiary of GMAC Financial Services.
The shuffle was apparently made because GMAC needed to “improve ResCap’s liquidity.” As you may recall, ResCap has been facing potential solvency problems.
ResMor said the sale should close “in the 4th quarter of 2008.”
ResMor’s President and CEO, Tracie Tesser, had this statement: “This purchase agreement is a positive move for ResMor and our valued clients. The support from GMAC Financial Services will allow us to aggressively expand our footprint in Canada and offer Canadian consumers even more choice to meet their financial needs.”
At this point, it’s unclear how GMAC Financial Services will facilitate the above more than GMAC Residential Funding of Canada did. (GMAC Residential Funding of Canada bought ResMor on November 7, 2007). We’ll try to figure it out and report back.
The deal may also give ResMor a chance to diversify beyond its current mortgage business. The company says that “subject to regulatory approval, ResMor, with its deposit-taking capability, could potentially fund Canadian consumer and commercial auto loans” as well.
ResMor Trust Company is a federally licensed trust company operating across Canada focused on residential mortgage lending, mortgage servicing and deposit products. It currently has $5 billion of mortgages under administration representing almost 29,000 homeowners. ResMor originates all of its products through the brokerage community.