General Motors may have problems selling it's mortgage division. "General Motors Corp. on Tuesday restated nearly four years of results for its GMAC finance unit, a subsidiary in which it's trying to sell a controlling stake to raise cash and boost its finances. The company also disclosed that its complex accounting relationships with suppliers are now the subject a criminal probe, in addition to the previously disclosed civil investigation."

"The finance unit is by far the most profitable operation at General Motors, producing net income of $2.8 billion in 2005, while GM as a whole reported a loss, Reuters reported."

"GM has been counting on the sale of a 51% stake in General Motors Acceptance Corp. as a way to raise as much as $15 billion in badly needed cash for the struggling automaker. But GM warned anew Tuesday that a deal might not happen."

"GM had hoped a new parent for GMAC would bring investment-grade credit ratings to the finance business, which was cut to junk status last year alongside its sliding automotive parent."

"GM's regulatory filing showed that the company was concerned about the effect of the restatements on its ability to draw from its $5.6 billion standby line of credit, which it could tap if it ran short of cash for operations.'

"While the automaker said it believed that it would be able to make a 'good- faith borrowing request' to use the credit line, 'in view of GM's recent restatement of its prior financial statements, there is substantial uncertainty as to whether the bank syndicate would be required to honor such a request.'"

And in case you didn't know why this matters to the housing markets, check these links.