MINNEAPOLIS, April 6 /PRNewswire/ -- GMAC-RFC (Residential Funding
Corporation) today announced it recently closed a $450 million,
high-loan-to-value (HLTV) home-equity loan securitization, its largest HLTV
transaction to date. The deal -- believed to be the largest by any HLTV
issuer in the first quarter of 1999 -- is the latest evidence of GMAC-RFC
leadership position in the HLTV securitization business.
According to GMAC-RFC officials, about $10 billion was securitized in HLTV
product last year, with similar volume forecast for 1999. Although the market
remains strong for this product, there are fewer issuers securitizing HLTV
product today due to last year's liquidity crunch.
Jeff Detwiler, managing director of capital markets and risk management,
indicated the $450 million deal is "simply the first" in a series of HLTV
transactions planned in 1999. "This is only the start," stressed Detwiler.
"Our volume for HLTV product this year will be upward of $2 billion."
Detwiler also noted, "Our clients see us being in this market for the long
term, given our capital base. When you combine our strong capital position,
strict underwriting standards and special servicing capabilities, we have the
ability to seriously grow this dimension of our business."
GMAC-RFC, a wholly owned subsidiary of GMAC, is committed to providing
capital and investments worldwide through its core businesses in
securitization, lending and investment. The company is the leading non-agency
issuer of mortgage-backed securities and the leader in warehouse lending in
the United States. Headquartered in Minneapolis, the company has operations
nationwide, in the United Kingdom and Mexico.
SOURCE GMAC-RFC
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Company News On-Call:
http://www.prnewswire.com/comp/138832.html or fax,
800-758-5804, ext. 138832
CONTACT:
Mark Iverson of GMAC-RFC, 612-857-6366,
miverso@rfc.com, or Melody Townsel of Shandwick International,
212-591-9768, mtownsel@shandwick.com, for GMAC-RFC
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