GMAC Restructures to Strengthen Subservicing Appeal.(GMAC Mortgage Corp.)

By the end of March, GMAC Mortgage Corp. said it plans to finish its year-and-a-half company restructuring process that will allow GMAC to better control risk and increase subservicing volume while using an integrated Internet platform managed by two separate default management departments and new leadership.

During this time, according to senior vice president of risk management for national loan administration, Bill McGuire, GMAC has been implementing its "Debt Servicing Utility" initiative designed "to bring together separate operations and separate organizations within GMAC."

The recent restructuring of the default management operations into two separate units, the "collections and loss mitigation" department and the "foreclosure and bankruptcy" department, along with the promotions of Mitch Oringer and Lionel Antunes as vice presidents reporting to Mr. McGuire, was part of this wider process.

"We had a first-mortgage residential servicing platform in operation, we had a second standalone customer loan servicing and home equity loan servicing platform organization, and we had a special servicing platform and organization," he said. "With subservicing sprinkled across all those platforms."

The initiative, he explained, takes "all the horsepower, intellectual capital, human and technological capital across the organization and merges it together."

"To our knowledge," he added, "nobody else in the industry has done this before."

He believes the new management structure enables GMAC "to rip the benefit of creating a low-cost servicing operation that is multifaceted." And finally, achieve another goal.