GMAC Financial Services said today that it will restructure its real estate finance operations at Residential Capital, LLC (ResCap). The company's announcement comes as the lender faces what industry insiders say is a "big hit" from the downturn in subprime lending. At the forefront of the changes, ResCap said that current CEO Bruce Paradis will retire on June 1, 2007, capping a 24-year career at GMAC. Paradis will be succeeded by Jim Jones, currently ResCap chief operating officer and president of its U.S. Residential Finance Group. In addition, Craig Chapman, previously chief executive officer of Aegis Mortgage Corporation, has joined GMAC ResCap as president of ResCap's U.S. Residential Finance Group, effective immediately, succeeding Jones in that capacity. Prior to leading the formation of ResCap in May 2005, Paradis, 58, served as president and CEO of GMAC-RFC (now a part of GMAC ResCap) from 1994 to 2005. He first joined GMAC-RFC in 1983 as its vice president of marketing and held several leadership positions in sales, marketing, and operations before being appointed to CEO of ResCap. In retirement, Paradis plans to remain involved in the housing industry, including continuing to work with the Homeownership Preservation Foundation, which he helped establish, and Habitat for Humanity.
Jones, 58, an industry veteran with more than 30 years experience in the mortgage industry, joined ResCap in March 2007 to lead ResCap's U.S. Residential Finance Group. Jones had previously served as CEO at Aegis Mortgage Corporation. He also served as president of banking and insurance, as well as head of consumer credit, at Bank of America, and previously worked in senior leadership positions at Wells Fargo and Citigroup. Chapman, 50, also is a financial services industry veteran with more than 25 years experience. Prior to his service at Aegis Mortgage, Chapman served as president of Washington Mutual's Commercial division. Chapman also served as president of AMRESCO Residential Mortgage Corporation in Irvine, Calif., and spent 17 years with Household Finance Corporation, which included several international assignments. "We are pleased to have Jim Jones ready to step up to the CEO role. In his short tenure at ResCap, he has already established a strong leadership record, and has won the respect and confidence of the ResCap team," Feldstein said. "We are also pleased to welcome Craig Chapman to ResCap. Jim and Craig bring years of significant experience that will enhance our ability to compete in a very challenging mortgage marketplace while continuing to seek opportunities for growth." "In this difficult and challenging housing market environment, maintaining a strong and experienced leadership team at ResCap is a priority," said Feldstein. "The top management team now in place -- combined with the company's geographic and product diversity -- provides ResCap with an important competitive advantage over the long term." For more information, visit http://www.rescapholdings.com.
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