MINNEAPOLIS, July 12 /PRNewswire/ -- GMAC-Residential Funding Corporation
(GMAC-RFC) today announced that it has closed a $425 million,
high-loan-to-value (HLTV) home equity loan securitization, its second HLTV
transaction of the year. In March, GMAC-RFC placed a $440 million HLTV deal,
which remains the year's largest HLTV transaction to date.
For the first six months of 1999, GMAC-RFC has securitized $865 million in
HLTV product, making it one of the largest HLTV issuers year-to-date. This
volume is further evidence of GMAC-RFC's growing dominance in the HLTV
securitization business. While last year's liquidity crunch eliminated a
number of issuers, GMAC-RFC continues to be a leading buyer of HLTV product.
"We're on target to achieve our goal of securitizing $2 billion of HLTV
product this year," said Jeff Detwiler, GMAC-RFC managing director of capital
markets and risk management. "As one of the few active issuers buying these
loans, we see tremendous opportunity in the estimated $10 billion HLTV market.
We continue to see strong demand for this product, and we expect to place a
deal each quarter for the remainder of 1999.
"We're growing this business with a particular focus on the quality of the
product, not simply volume," Detwiler added. "We have a well established and
proactive servicing process -- a very hands-on approach -- to managing these
portfolios. We will not grow any faster than our ability to service the
assets permits. We believe in this product based on our high credit standards,
strict underwriting, and unique servicing capabilities."
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 warehouse lending and
construction 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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