FORT WASHINGTON, PA-Residential Capital, GMAC Financial Services beleaguered residential finance subsidiary, is radically realigning its operations as the downturn in the credit and mortgage markets continues unabated. The company has revealed plans that will affect some 5,000 of its employees–although not necessarily resulting in layoffs of that magnitude, a source with the company tells

As part of these plans Rescap is closing all 200 GMAC Mortgage retail offices and will cease originations through the Homecomings wholesale broker channel. It is also evaluating strategic alternatives for the GMAC Home Services business and the non-core servicing business.

ResCap is also taking steps to narrow its focus on the lending channel it deems to be still competitive in this market environment: Ditek and its call center operations will continue to provide loans backed by GMAC bank deposits, the source says. It also wants to capitalize on the FHA loan opportunities that will be made available under the housing bill passed this Summer.

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