GMAC makes losses

Didn't GM once make cars? Now it makes losses on the housing market.

Feb. 5 (Bloomberg) -- GMAC LLC, the auto and mortgage lending company 49 percent owned by General Motors Corp., posted a $724 million fourth-quarter loss as bad loans in the U.S. rose to a record.

The net loss compares with a profit of $1 billion a year earlier, the Detroit-based company said in a statement. GMAC, whose majority owners include Cerberus Capital Management, is talking to buyers for parts of the Residential Capital mortgage unit, which had a $921 million loss.

GMAC vowed today to make money in 2008 after falling home prices and record U.S. foreclosures led to a $2.3 billion loss for 2007. Auto finance profit slid 77 percent as sales declined at GM's North American unit. Moody's Investors Service cut its ratings on GMAC and ResCap, citing concern about ResCap's liquidity and the effect on GMAC's financial health.