Contifinancial Participates in $1.7 Billion Senior/Subordinated CMBS Transaction.

NEW YORK--(BUSINESS WIRE)--Oct. 6, 1997--ContiFinancial Corporation (NYSE:CFN), through its subsidiary, ContiTrade Services ("ContiTrade"), has contributed approximately $330 million of commercial mortgage loans to an approximately $1.7 billion commercial mortgage-backed securitization, which closed on September 30, 1997. The securitization combined collateral provided by German American Capital Corporation, an affiliate of Deutsche Bank AG; GMAC Commercial Mortgage Corporation; and ContiTrade. The approximately $330 million of collateral contributed by ContiTrade was originated under the latter's ContiMAP(R) commercial real estate mortgage origination program. This issue is the third commercial mortgage securitization in which ContiTrade has participated during 1997 and its fifth in the past 15 months. In total, ContiTrade contributed approximately $1.15 billion of commercial loans to these securitizations, which were structured using subordinated classes as credit enhancement.

The Commercial Mortgage Pass-Through Certificates Series 1997-C1 were issued by a trust established by GMAC Commercial Mortgage Securities, Inc., and include nine publicly-offered classes: -0-

           Appoximate
             Amount                Wtd,     Moody's/Fitch
Class     ($ Millions)  Coupon  Avg, Life      Ratings      Type

A-1       $  261.6      6.830%   4.0 yrs.     Aaa/AAA        Fixed
A-2          227.7      6.853%   7.5          Aaa/AAA        Fixed
A-3          724.1      6.869%   9.7          Aaa/AAA        Fixed
X          1,697.0(1)   1.629%    --          Aaa/AAA        WAC I/O
B             67.9      6.918%   9.9          Aa2/AA+        Fixed
C             50.9      6.898%  10.0           A1/AA         Fixed
D             50.9      6.997%  10.0           A2/A+         Fixed
E             93.3      7.085%  11.5          Baa2/BBB       Fixed
F             25.5      7.222%  13.5          Baa3/BBB-      Fixed

(1) Notional amount.

-0-

The offering was underwritten by Deutsche Morgan Grenfell Inc. and Lehman Brothers, with Morgan Stanley Dean Witter, Residential Funding Securities Corporation and Llama Company, L.P. acting as co-managers, and ContiFinancial Services Corporation acting as selling agent for certain of the securities classes.

ContiFinancial is a consumer and commercial finance company with headquarters in New York City. The Company, through ContiMortgage Corporation and other subsidiaries, is a leading originator, purchaser, seller and servicer of home equity loans made to borrowers whose borrowing needs may not be met by traditional financial institutions. In addition, through ContiTrade Services L.L.C., the Company provides financing and securitization services and, through ContiFinancial Services Corporation, bond placement services to originators of a broad range of loans, leases and receivables, including loans for a variety of commercial real estate property types; home equity loans; home improvement loans; prime, sub-prime and non-prime auto loans; franchisee loans; time-share loans and equipment leases.

This announcement is not an offer to sell or a solicitation of an offer to buy any of these securities. The offering is made only by the Prospectus Supplement and the related Prospectus, copies of which may be obtained from Deutsche Morgan Grenfell Inc.

CONTACT: ContiFinancial Corporation

Jerome M. Perelson

Senior Vice President

[phone]

or

Edelman Financial

Joseph Kist or Kerry O'Brien

[phone] or [phone]