General Motors Downgraded
The train wreck that is General Motors got worse as UBS downgraded the company to "reduce" and set a target of $20 per share. Strangely, much of the discussion regarding GMs' future focuses on the auto business, with little reporting on the firms core operations; finance and mortgages.
"We believe things will get worse before they get better," UBS analyst Rob Hinchliffe said. The firms stock was off over 3%.
"GMAC Mortgage Corporation, is among the nation's top ten residential mortgage servicers and originators. The company originates first and second lien residential mortgage loans under the brands, gmacmortgage.com and ditech.com. As of December 2004, GMAC Mortgage originated $89 billion in residential mortgages, representing over 588,000 transactions. The company's servicing portfolio of more than $214 billion represents nearly 2 million customers throughout the nation."