MINNEAPOLIS, March 22 /PRNewswire/ -- GMAC-RFC (Residential Funding
Corporation) today announced that in sharp contrast to the illiquidity and
market consolidation that plagued the mortgage industry in 1998, it has
continued to grow its subprime mortgage business.  The company, a wholly owned
subsidiary of General Motor Acceptance Corporation (GMAC), acquired more than
$3.5 billion in subprime loans in 1998 -- a 67 percent increase over 1997
volume.
    "Unlike most competitors during the turbulent fourth quarter, we remained
a significant investor in subprime by following consistent policies in pricing
and criteria, which worked in our favor," said Bruce Paradis, GMAC-RFC
president and CEO.  "With record funding during the last three months of 1998,
GMAC-RFC is poised to be an even more significant player in the subprime
market in 1999," he said.
    To manage its risk in the subprime arena, GMAC-RFC relies on a knowledge
base that has evolved from 17 years of experience in the mortgage business.
The comprehensive system of policies and controls helps the company determine
whether a borrower has demonstrated an ability to repay and use a loan wisely.
    Industry sources predict the demand for subprime lending will continue to
grow.  Since 1994, subprime mortgage originations as a subset of all mortgage
originations have grown by more than 10 percent.  Subprime home equity loans
have more than doubled since 1995.
    "We have every intention of riding the subprime growth trend.  In the year
ahead, we will continue to expand our subprime offerings to mortgage banks and
other lending firms through our loan products, lending services, automation
technologies and loan purchasing partnerships," Paradis said.
    GMAC-RFC is a wholly owned subsidiary of General Motors Acceptance
Corporation. The company is an industry leader in mortgage-backed securities,
warehouse lending and housing finance.  GMAC-RFC is headquartered in
Minneapolis with offices nationwide and in the United Kingdom and Mexico.

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