C-BASS Announces New Partner; GMAC-RFC to Acquire Enhance Financial Services Group Interest in C-BASS.

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 28, 2000

C-BASS, the established leader in servicing and securitizing delinquent residential mortgages, today announced that Residential Funding Corporation (GMAC-RFC), the leading U.S. issuer of non-agency mortgage backed securities, has entered into a definitive agreement to purchase the interest in C-BASS held by Enhance Financial Services Group (NYSE:EFS) to become an equal, non-majority partner with Mortgage Guaranty Insurance Corporation (MGIC) (NYSE:MTG) in this joint venture company.

"We are extremely excited to be affiliated with two firms - GMAC-RFC and MGIC - that are both leaders in their respective areas of the mortgage industry," said Bruce Williams, Chief Executive Officer of C-BASS. "The strengths and expertise of these two firms and C-BASS makes for an extremely complementary partnership with a synergy of expertise that is unmatched in the industry...this partnership will help C-BASS continue its own exceptional growth within the delinquent mortgage segment of the industry."

Saul Sanders, Chief Operating Officer of C-BASS continues, "With over $200 million in equity, C-BASS has grown to the point where an affiliation with a larger and more diverse partner is advantageous as we continue to strengthen our leadership position in this segment of the market. The willingness of GMAC-RFC to join with MGIC and C-BASS in our joint venture represents a validation of C-BASS' accomplishments to-date. We look forward to a strong and profitable partnership."

About C-BASS

C-BASS is a New York based company specializing in the acquisition, servicing and securitization of credit-impaired and unconventional residential mortgages. C-BASS combines advanced credit risk analysis, seasoned loss mitigation expertise, and proprietary default management technology to provide special servicing and servicing for subperforming and non-performing mortgage loans. Loan servicing is performed by Litton Loan Servicing LP, a C-BASS company. For more information, visit www.c-bass.com.

About GMAC-RFC

GMAC-RFC, a subsidiary of General Motors Acceptance Corporation, is the leading non-agency issuer of mortgage-backed (MBS) and home equity loan asset-backed (ABS) securities in the U.S. with over $135 billion in cumulative issuance. The company is also the nation's No. 1 warehouse lender and a Top 10 subprime servicer. GMAC-RFC leverages its strengths in securitization, lending and investment to offer a broad portfolio of innovative capital solutions. The company is headquartered in Minneapolis and operates in the United States, Europe and Latin America. For more information, visit www.gmacrfc.com.

About MGIC

Mortgage Guaranty Insurance Corporation (MGIC), the principal subsidiary of MGIC Investment Corporation (NYSE:MTG), is the nation's leading provider of private mortgage insurance coverage with $151.9 billion insurance in force covering 1.4 million mortgages as of June 30, 2000. MGIC serves over 9,000 lender representing more than 22,000 locations nationwide and in Puerto Rico, helping families achieve homeownership sooner by making affordable, low-down-payment mortgages a reality. For more information, visit www.mgic.com.