MINNEAPOLIS, June 24 /PRNewswire/ -- GMAC Residential Funding Corporation
(GMAC-RFC) today announced a strategic alliance with Accredited Home Lenders
(Accredited), a leading wholesale lender of subprime mortgages. Accredited has
agreed to provide a loan sale commitment to deliver eligible subprime
mortgages to GMAC-RFC.
The alliance also provides Accredited with a comprehensive three-year
committed financing package, allowing Accredited to pursue its business
strategy to grow into a top-tier subprime mortgage originator. In addition,
the alliance provides Accredited with the ability to participate in GMAC-RFC's
subprime mortgage securitization program.
"As part of our strategy to continue to grow our market position in
specialty finance -- an area in which we are an innovative market leader -- we
have looked to exceptional partners like Accredited to provide quality
product," said Tom Dinnegan, managing director, Global Strategic Alliances and
Acquisitions Group at GMAC-RFC.
As part of the alliance, GMAC-RFC will provide Accredited with a committed
revolving warehouse facility and line of credit for three years, which will be
used to fund Accredited's production of subprime residential mortgage loans.
In addition, convertible debt issued to GMAC-RFC will provide GMAC-RFC with
the ability to participate in Accredited's future success.
"Accredited has a solid and experienced management team and staff that has
demonstrated the ability to grow its subprime mortgage operation in a
controlled manner, even during the turbulent market conditions of late 1998
and early 1999," Dinnegan continued. "We look forward to a mutually rewarding
business relationship with Accredited."
Gary Shev, director, GMAC-RFC lending, said: "This represents a unique
opportunity for both parties to benefit from each other's strengths. GMAC-RFC
provides efficient access to the capital markets that an originator of
subprime product will find valuable. Accredited, as an independent entity,
will provide GMAC-RFC with quality product and a strong financing
relationship."
Ray McKewon, Accredited managing director, said, "GMAC-RFC is giving
Accredited the fuel it needs to drive to the next destination. Today, few
companies have the capital resources to be effective subprime lenders. We are
excited about the competitive advantage this financing provides Accredited,
and we look forward to a long and fruitful relationship with our new
partners."
Founded in 1990, Accredited Home Lenders is a leading wholesale lender
focused on serving the needs of subprime mortgage brokers and bankers
throughout the United States. Accredited has 440 employees across the country,
and originated $600 million of loans in 1998 and approximately $450 million of
loans in the first half of 1999. With headquarters in San Diego, Accredited
has divisional offices in Cincinnati, Atlanta, and Provident, along with a
number of smaller satellite locations.
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 a leader in asset-backed securities
and warehouse lending. 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:
Jodi Ehlers Swanson of GMAC-RFC,
612-832-7343, jehlers@rfc.com, or Nick Ragone of Shandwick
International, 212-591-9842, nragone@shandwick.com, for GMAC-RFC
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