MINNEAPOLIS, Feb. 26 /PRNewswire/ -- GMAC-RFC today announced an agreement
to acquire the assets of  two of the nation's leading distressed consumer debt
servicing companies -- New York-based American Financial Consultants (NY), LLC
(AFC), a subsidiary of the Phoenix Finance Group, LLC and Minneapolis-based
Triad Financial Services, Inc. (Triad). The acquisitions are expected to close
in March of 1999.
    The pending acquisitions are the latest in GMAC-RFC's corporate
diversification strategy. Strategically, GMAC-RFC has targeted the distressed
asset servicing business as an attractive investment opportunity.  In recent
years, GMAC-RFC has enhanced its distressed asset servicing business with the
acquisition of its Asset Resolution Division (ARD) in San Diego and Auritec,
SA in Mexico.  Now, with the purchase of AFC and Triad, GMAC-RFC will be
expanding its investment into the United States non-secured distressed assets
market.
    At the closing of the acquisitions, Homecomings Financial Network, Inc.
(HFN) -- a wholly-owned subsidiary of Residential Funding Corporation
("GMAC-RFC") -- will acquire the assets of the two companies.  As part of
these transactions, approximately 100 employees of AFC and 225 employees of
Triad will become HFN employees.
    GMAC-RFC President Bruce J. Paradis said, "We are pleased to be
diversifying into this new area, which moves us one step closer to creating
the nation's 'best in class' distressed-asset servicing operation."
    These acquisitions will provide GMAC-RFC with a high-quality entry into
the non-secured distressed asset business, affords the firm relationships with
top credit-card issuers, and support and enhance its risk-management
capabilities.
    "GMAC-RFC is now well-positioned to seek and fulfill strategic
opportunities being presented by the market, while strengthening our core
businesses -- securitization, lending and investing," Paradis said.
    Paradis said that over the next 30 days, the companies will finalize an
integration plan.  "The transition teams will be determining the next steps
for successfully ensuring a smooth transition for our associates and clients
and allowing us to achieve our vision," stated Paradis.
    AFC Principal Nathan Kornfeld said, "We are happy to become part of the
GMAC-RFC family. We feel the synergy with GMAC-RFC will help us immensely in
our continuing effort to build the business of purchasing and servicing
distressed consumer assets." AFC Principal Gary Busacca, said, "GMAC-RFC has
demonstrated strong support for our operating philosophy and we look forward
to becoming part of their family."
    Triad Senior Vice President John O'Shea said, "The purchasing and
servicing of distressed assets, especially at the consumer level, has grown
tremendously in the last few years.  We at Triad are delighted to be a part of
the platform for GMAC-RFC's aggressive growth."
    GMAC-RFC has been actively expanding its business lines over the last
twelve months.  Recent acquisitions have included Capstead, Inc., Main
America, and the Private Label Group in the United Kingdom.  GMAC-RFC will
continue to seek out opportunities to expand in strategically targeted markets
in the future to further diversify its overall business lines.
    GMAC-RFC is a wholly owned subsidiary of General Motors Acceptance
Corporation (GMAC), and is committed to providing capital and investments
worldwide through its core businesses in securitization, lending and
investment. The company is currently an industry leader in the mortgage-backed
securities, warehouse lending and housing finance markets, and is
headquartered in Minneapolis with offices nationwide, in the United Kingdom
and Mexico.
    GMAC is one of the world's largest and most successful financial services
companies, with business lines in automotive finance, commercial and
residential mortgages and insurance. At Dec. 31, 1998, GMAC's owned assets and
serviced automotive receivables exceeded $138 billion, and combined services
assets of the GMAC Mortgage Group exceeded $250 billion. More information on
GMAC Financial Services is available at http://www.gmacfs.com

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