GMAC 3Q loss widens

NEW YORK (AP) -

GMAC Financial Services says its third-quarter loss widened to $2.52 billion, pulled down by steep losses at its mortgage division.

A year ago, GMAC lost $1.6 billion. Revenue tumbled 24 percent to $1.72 billion.

The New York-based company said tight credit markets made things tough for the lending industry overall during the quarter.

GMAC's mortgage lending division, ResCap, lost $1.91 billion, compared with $2.26 billion a year ago. Still, GMAC said that absent economic support, substantial doubt exists about ResCap's ability to continue as a going concern.

The automotive finance division swung to a loss of $294 million from a profit of $554 million.

GMAC is majority owned by private equity firm Cerberus Capital Management, but Detroit-based General Motors still holds a minority stake.