Scroll down for latest news

GMAC-RFC Announces Record U.S. Securitization Volume of $25.3 Billion in First Half 2003; Strong Growth in Mortgage-Related ABS Contributes to Record Issuance

MINNEAPOLIS--(BUSINESS WIRE)--Aug. 18, 2003--Residential Funding Corporation (GMAC-RFC) today announced that its total mortgage-backed securities (MBS) and mortgage related asset-backed securities (ABS) issuance reached a record $25.3 billion during the first half of 2003 in the U.S.
"Opportunities presented by the continued low rate environment, combined with our family of innovative mortgage products, helped fuel tremendous MBS/ABS growth during the quarter and first half of 2003," said Eric Scholtz, executive vice president and managing director of capital markets at GMAC-RFC's Residential Capital Group. "Our record performance is a reflection of the strong partnerships with our mortgage lenders and brokers as well as our dedication to product and mortgage process innovation."
The first-half $25.3 billion total included $6 billion in jumbo A product via the company's RFMSI shelf and a record $4.6 billion of alternative A product via its RALI shelf. In addition, the company issued $6.2 billion in subprime securitizations through its RASC shelf; and $1.7 billion in second lien product (HELOC, closed-end and high-loan-to-value (HLTV)) via its RFMSII shelf and a record $6.6 billion of program exceptions, seasoned product and HLTV first lien product via its RAMP shelf.
According to industry sources(a), GMAC-RFC is the second largest private mortgage conduit in the first half of 2003, with a 9.5 percent market share. In addition, GMAC-RFC is a top five issuer of subprime MBS during the first half of the year, contributing to its position as the Number One issuer of mortgage-related ABS. GMAC-RFC also ranks first nationally among warehouse lenders, with $16.6 billion in managed commitments.
In the second quarter, GMAC-RFC issuance totaled $14 billion, which included $2.6 billion in subprime; a record $2.4 billion in alternative A product; and $4.3 billion off its RFMSI shelf. In addition, the company issued a record $3.6 billion of program exception product via its RAMP shelf, which included product primarily comprised of loans whose attributes fall outside the guidelines of the company's jumbo, alternative A and subprime programs.
"Our continued success is a direct result of the many asset types we can deliver to investors through our differentiated shelves," Scholtz said. "Through strategic relationships with our lender partners we are able to create a consistent supply of all products for investors. This ultimately leads to better value and more options for homeowners."

GMAC Residential Funding Announces Its First Public Canadian MBS Securitization

$278 Million MBS Issue Pivotal to Enhancing Consumers' Access to Capital Through Alternative Mortgage Products

Residential Funding Corporation (GMAC-RFC) today announced that its Canadian business unit, GMAC Residential Funding of Canada, has closed its first mortgage-backed-securitization (MBS). The Cdn. $278 million securitization marks the first term securitization of prime alternative, or "Alt-A" residential mortgages in Canada and the first public, non-government, term MBS issuance in Canada since 1998.

This securitization serves to further develop the secondary mortgage market in Canada, providing investors with a new asset class to consider. In addition, the securitization will allow GMAC Residential Funding to continue to make capital available to consumers through its business partners and to offer alternative mortgage products for consumers in the Canadian market. Other international markets in which GMAC-RFC supports a secondary mortgage market through MBS offerings include Mexico, the United Kingdom and the Netherlands.

"We are committed to providing Canadian consumers with a broader array of mortgage options than previously available through established Canadian lenders," said Bob Conway, managing director, GMAC Residential Funding of Canada. "Using GMAC-RFC's underwriting guidelines and approach to quality control, we can provide Canadian borrowers with new mortgage finance opportunities and provide new capital to the mortgage industry."

Since 2002, GMAC Residential Funding has introduced innovative, Alt-A mortgage products such as iDeclare (for self-employed borrowers), iRelax (for vacation properties), iInvest (for investment properties) and i107 (a no downpayment mortgage) through its subsidiary Mortgage Intelligence. GMAC Residential Funding has also brought more conventional mortgage products, such as iAdjust (an adjustable rate mortgage that adjusts based on a Banker's Acceptance index) and iSecure (a fixed-rate offering), to the marketplace. The MBS offering is comprised of non-traditional Alt-A products offered by GMAC Residential Funding.

"We continue to believe in the importance of a secondary mortgage market to provide access to capital to mortgage lenders, and in turn, consumers. We are excited to play such a pivotal role in this step in the development of Canada's mortgage market, as we have previously done in the UK, Netherlands and Mexico," said Mike Kozlak, president, Residential Capital Group, GMAC-RFC. "GMAC-RFC's continued focus on providing our business partners with stability, value, and innovative products around the world are essential to our success and the success of our partners."

After surveying the Canadian marketplace for several years, GMAC-RFC established Residential Funding of Canada in 2002, to service the underserved niche financial markets in Canada. The company funded its first loan in Canada in January 2003, and in May 2004 RFOC formed the Canadian Mortgage Acceptance Corp. (CMAC) to fund the originations of its suite of mortgage products.

GMAC Residential Funding Announces Its First Public Canadian MBS Securitization $278 Million MBS Issue Pivotal to Enhancing Consumers' Access to Capital Through Alternative Mortgage Products Residential Funding Corporation (GMAC-RFC) today announced that its Canadian business unit, GMAC Residential Funding of Canada, has closed its first mortgage-backed-securitization (MBS). The Cdn. $278 million securitization marks the first term securitization of prime alternative, or ""Alt-A"" residential mortgages in Canada and the first public, non-government, term MBS issuance in Canada since 1998. This securitization serves to further develop the secondary mortgage market in Canada, providing investors with a new asset class to consider. In addition, the securitization will allow GMAC Residential Funding to continue to make capital available to consumers through its business partners and to offer alternative mortgage products for consumers in the Canadian market. Other international markets in which GMAC-RFC supports a secondary mortgage market through MBS offerings include Mexico, the United Kingdom and the Netherlands. ""We are committed to providing Canadian consumers with a broader array of mortgage options than previously available through established Canadian lenders,"" said Bob Conway, managing director, GMAC Residential Funding of Canada. ""Using GMAC-RFC's underwriting guidelines and approach to quality control, we can provide Canadian borrowers with new mortgage finance opportunities and provide new capital to the mortgage industry."" Since 2002, GMAC Residential Funding has introduced innovative, Alt-A mortgage products such as iDeclare (for self-employed borrowers), iRelax (for vacation properties), iInvest (for investment properties) and i107 (a no downpayment mortgage) through its subsidiary Mortgage Intelligence. GMAC Residential Funding has also brought more conventional mortgage products, such as iAdjust (an adjustable rate mortgage that adjusts based on a Banker's Acceptance index) and iSecure (a fixed-rate offering), to the marketplace. The MBS offering is comprised of non-traditional Alt-A products offered by GMAC Residential Funding. ""We continue to believe in the importance of a secondary mortgage market to provide access to capital to mortgage lenders, and in turn, consumers. We are excited to play such a pivotal role in this step in the development of Canada's mortgage market, as we have previously done in the UK, Netherlands and Mexico,"" said Mike Kozlak, president, Residential Capital Group, GMAC-RFC. ""GMAC-RFC's continued focus on providing our business partners with stability, value, and innovative products around the world are essential to our success and the success of our partners."" After surveying the Canadian marketplace for several years, GMAC-RFC established Residential Funding of Canada in 2002, to service the underserved niche financial markets in Canada. The company funded its first loan in Canada in January 2003, and in May 2004 RFOC formed the Canadian Mortgage Acceptance Corp. (CMAC) to fund the originations of its suite of mortgage products.