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.