GMAC, Countrywide Post Huge Losses on Mortgages

Countrywide and GMAC LLC on Tuesday reported big first-quarter losses as they continue to be hurt by credit problems. GMAC LLC announced a net loss of $589 million for the first quarter, which is larger than the $305 million, reported over the same period in 2007 and swallowed profits from auto loans and insurance.

The loss included an $859 million loss at Residential Capital LLC, the mortgage unit's sixth straight quarterly loss, at Residential Capital LLC, the mortgage unit's sixth straight quarterly loss, though the amount fell from $910 million a year earlier.

Countrywide's quarterly loss was $893.1 million or $1.60 per share, compared with a year-earlier profit of $434 million or 72 cents per share. Analysts, on average, expected a loss of 12 cents per share, according to Reuters Estimates.

Despite the reported loss, the Bank of America is still unlikely to abandon its bid for the California based mortgage lender.