A third quarter update filed with the Securities and Exchange Commission last week by Residential Capital LLC discussed its exposure to homebuilders and land investments, an analyst for GimmeCredit, wrote in a report. She noted that Friday's SEC filing indicated ResCap's business capital group is exposed to equity investments in homebuilder ventures and lots. "Despite GMAC's support to date, GM/Cerberus may elect to put ResCap into bankruptcy given its exposure to homebuilders, and recoveries given default may be even lower than implied by current distressed levels," the analyst concluded.
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