The announcement came after ResCap avoided a collapse in June when it got a $60 billion refinancing package. The company named its third CEO in 16 months on July 22, when former Bear Stearns executive Thomas Marano took the top job, replacing Jim Jones, who had been in the job since April 2007. Proia said about 160 ResCap employees in Michigan will lose their jobs, with about 80 remaining. GMAC will still have more than 1,470 employees in Michigan after the reductions. Most ResCap employees in Michigan are based in Troy. In 2005, GMAC had 250 mortgage retail offices with 4,500 employees -- including 3,000 loan officers -- and serviced 2 million customers. Proia said the retail offices would close within a month. GMAC's Metro Detroit offices include Detroit, Warren, Plymouth, Rochester Hills, Clinton Township, Ann Arbor and Troy. Approximately 3,000 ResCap 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. 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. GMAC also is '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. Marano said GMAC's ResCap unit will only originate limited loans including those '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.' 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 and has suffered heavy losses as a result of problems there. GMAC lost $2.5 billion in the second quarter this year, with its ResCap making up $1.9 billion of that loss. GMAC's lost $5.4 billion this year. GM reported an adjusted loss of $1.2 billion for the second quarter attributable to GMAC. GM recorded additional impairment charges totaling $1.3 billion against its equity interests in GMAC. Burnham Securities auto analyst David Healy said the announcement 'means GMAC is all but getting out of the subprime housing market.' GM will be forced to take another write-down in third quarter and pick up 49 percent of the latest GMAC restructuring charges. Dozens of lenders have gotten out of the subprime market amid a wave of foreclosures. 'Their other alternative was to hunker down and wait for the real estate market to clear up, but they've decided it's going to be a long, long time,' Healy said. 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.