GMAC Mortgage Group has become the latest mortgage company to cut staff. The unit of General Motors Corp. announced that it plans to lay off more than 14% of its employees within several months, reducing employment by 500, to 3,500.
According to GMAC Mortgage's president, Mark Korell, the move is "in response to competitive changes in the marketplace brought about by higher interest rates and a related decrease in demand for home mortgage financing."
GMAC estimated that the mortgage market would decline 30% to 40% in 1994.
It follows Countrywide Credit Industries, American Residential Mortgage, and Prudential Home Mortgage in laying off mortgage workers. At May 31, Countrywide had slashed payroll by about 18%, according to company figures.
Both American Residential and Prudential have announced staff cuts totaling several hundred each.