The Detroit News obtained an internal memorandum from Marano in which he outlined more details of the company's plan, calling the cost cuts 'painful' and describing the company's plan to underwrite fewer loans. The company is closing its Homecomings Wholesale channel and will 'cease loan orignations through brokers,' Marano wrote. GMAC is also 'currently evaluating strategic options with respect to our GMAC Home Services division, and expect to announce a resolution by the end of September,' Marano wrote. 'We will only originate loans that are: Supported by Government Sponsored Enterprise programs such as Fannie Mae, Freddie Mac and Ginnie Mae, or which can be sold to another guaranteed investor partner... Originated through the following ResCap channels: GMAC Bank correspondents, including support for lenders with warehouse lines of credit; GMAC Mortgage direct; ditech call centers; and the GMAC Mortgage Charlotte, N.C., call center.' The work force reductions will include a range of administrative and managerial positions. All eligible employees affected by the cuts will be provided severance packages and outplacement assistance, the company said. The steps were in response to the persistent 'downturn in the credit and mortgage markets,' the company said in a statement, adding that the decision for ResCap was made to 'significantly streamline its operation, reduce cost, adjust its lending footprint and refocus its resources on strategic lending and servicing.' General Motors Corp. sold a 51 percent stake in GMAC to Cerberus Capital Management LP in 2006 for $7.4 billion. The automaker retains a 49 percent stake in GMAC. The company said it was closing all 200 GMAC Mortgage retail offices, scaling back some lending operations, further curtailing business lending and international business activities, and 'right-sizing functional staff support.' Proia said the retail offices would close within a month. Approximately ResCap 3,000 employees will receive their termination notification this month with the majority of the remaining 2,000 reductions expected to occur by the end of the year. ResCap will incur a charge expected to range from $90 million to $120 million that reflects the 3,000 job cuts and related operational streamlining initiatives. The charge will include costs related to severance and other employee-related costs of approximately $50 million to $60 million and facility closure costs of about $40 million to $60 million. ResCap will continue to originate loans in the United States and internationally where there is a secondary market to sell the loans. You can reach David Shepardson at (202) 662 - 8735 or [email protected].