DETROIT — A 27-year veteran of GMAC Financial Services and its former parent General Motors, Bill Muir, head of the company's global automotive services, announced his intention Monday to retire within the next year.

Muir will continue in his current role until a replacement is named. After that time, he will remain with GMAC for a "period of time" to ensure a smooth and orderly transition period.

"Bill has been a dedicated leader to GMAC for many years and helped the company through a number of key milestones. We are pleased to continue to benefit from his experience during this transition period," explained Michael Carpenter, GMAC chief executive officer.

According to Muir, "I continue to be optimistic about the strategic direction for GMAC and the progress the team is making. I am committed to ensuring a smooth transition for GMAC's premier global automotive services business before commencing with my retirement within the next year.

The company indicated it has begun an external search for a candidate to run the global automotive services operations.

Back in early March, GMAC reported that chief financial officer Robert Hull has decided to leave the company. He was slated to leave the end of March.

UPDATED: Early Reaction

Early reaction by several industry sources to the announcement of Muir's expected retirement are recommendations that GMAC should seek a candidate with auto industry experience or auto finance experience, rather than banking experience, to run its global automotive services operations.

GMAC to Sell European Mortgage Assets and Operations

In other news from the company, GMAC Financial Services also announced Tuesday that its mortgage subsidiary, Residential Capital LLC has agreed to sell its European mortgage assets and businesses to affiliates of certain funds managed by affiliates of Fortress Investment Group LLC.

These transactions represent approximately 10 percent of ResCap's Dec. 31, 2009 total assets and approximately 40 percent of total assets on a pro forma basis, adjusted for the required FAS 167 accounting treatment for certain off-balance sheet securitizations that are recorded on-balance sheet effective Jan. 1, 2010.  

The assets in the transactions are valued at approximately the levels established in the fourth quarter of 2009 and there is no material gain or loss expected.

"The agreements to sell the European mortgage assets and businesses are key steps toward our objective of reducing the ongoing exposure for GMAC from the legacy mortgage operation. This is a significant achievement and will contribute in putting GMAC on a path toward improved performance," said Carpenter.  

"We are pleased to have reached agreements to sell these assets and operations and believe this is a favorable outcome for all parties involved," indicated Thomas Marano, ResCap Chief Executive Officer. "These transactions validate the approach we are taking to pursue alternatives for our legacy mortgage businesses that strive to reduce exposure and preserve value."

Under the agreements, the sale will include certain loan assets (including non-performing loans) and servicing rights, and the shares of the related operating entities in the United Kingdom, Germany and The Netherlands.  The closing of the transactions are subject to regulatory approval and customary closing conditions. Separately, GMAC closed a whole loan transaction in the United Kingdom for USD $177 million (GBP 116 million) on March 31, 2010.

With the combination of this whole loan transaction, the transactions with the Fortress affiliates and certain other whole loan sales that are in progress, GMAC will effectively exit the European mortgage market.