Changes Will Simplify Bond Administration and Provide Timely Return On
Principal
MINNEAPOLIS, Jan. 24 /PRNewswire/ -- Residential Funding Corporation
(GMAC-RFC) today announced it is revising the collection period and
compensating interest policy for full and partial prepayments on
mortgage-backed securities to be issued from its Residential Funding Mortgage
Securities I, Inc. (RFMSI) and Residential Accredit Loans, Inc. (RALI)
shelves. These changes are being made in response to investor requests.
(PHOTO: http://www.newscom.com/cgi-bin/prnh/20000324/MNF002 )
"Inclusion of curtailments in the compensating interest calculation along
with the change in collection period will reduce investors' exposure to
prepayment interest shortfalls," said Eric Scholtz, managing director of
capital markets for GMAC-RFC's Residential Capital Group.
Beginning with January 2001 RFMSI and RALI securities, the following
changes go into effect:
-- The collection period for prepayments in full will be changed to the
16th of the previous month to the 15th of the current month with
remittance to investors made on the 25th of the current month.
-- No change is being made to the collection period of all scheduled
principal and interest payments and partial prepayments.
-- Partial prepayments will be eligible for payment of compensating
interest.
GMAC-RFC, a wholly owned subsidiary of General Motors Acceptance
Corporation, is America's largest issuer of non-agency mortgage-backed and
mortgage related asset backed securities and number one residential warehouse
lender. The company leverages its strengths in securitization, lending and
investment to offer a broad portfolio of innovative capital solutions. The
company is headquartered in Minneapolis and operates in the United States,
Europe and Latin America. http://www.gmacrfc.com
SOURCE GMAC-RFC
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Related links:
http://www.gmacrfc.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20000324/MNF002
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 201-369-3467
Company News On-Call:
http://www.prnewswire.com/comp/138832.html or fax,
800-758-5804, ext. 138832
CONTACT:
Jodi Ehlers Swanson of GMAC-RFC,
952-857-7343, jodi.ehlers@gmacrfc.com, or Randy Sands of Weber
Shandwick Worldwide, 952-346-6191, rsands@webershandwick.com ,
for GMAC-RFC
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