Capstead Mortgage Corp. said Monday that it has closed the sale of its mortgage banking operations to two affiliates of GMAC Mortgage Group Inc.

Over $38 billion in servicing rights and a state-of-the-art system went to GMAC Mortgage's Consumer Loan Servicing group and GMAC unit Residential Funding Corp.'s Homecomings Financial Network Inc.

The deal, announced in mid-December, makes the General Motors unit one of the nation's top five mortgage servicers, with more than $125.9 billion in servicing.

The sale will generate more than $500 million in cash, Capstead reported. Capstead will use most of the cash to reduce "short-term indebtedness."

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