GMACCM Deal Collapsed Over Reps and Warranties.(General Motors Acceptance Corporation )

In the end, the giant automaker from Detroit decided that it loves the commercial lending and servicing business after all.

The sale of GMAC Commercial Mortgage - the nation's largest commercial servicer - fell apart in early December amid disagreements over "reps and warranties" to Deutsche Bank, industry sources told Mortgage Servicing News.

"In the end, GM wasn't willing to provide what Deutsche Bank wanted," said one commercial mortgage executive.

Commercial mortgage officials following the deal said they were not surprised it collapsed. "I think a lot of people are surprised that it ever got to this stage," said one executive.

GM had been trying to sell GMACCM for a year. But in December it became clear to the automaker that it could not come to terms with the Germany-based bank. (MSN did not publish last month.)

GM decided to keep the unit, noting that it has "continued to post record operating results, with origination volume and earnings during the first nine months of 2003 already at or above the levels" achieved last year.

One source told MSN that analyzing GMACCM is not an easy task, given all the "B-piece" securities it owns.