GMAC-RFC Announces Record U.S. Securitization Volume of $25.3 Billion in First Half 2003; Strong Growth in Mortgage-Related ABS Contributes to Record Issuance.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Aug. 18, 2003 Residential Funding Corporation (GMAC-RFC) today announced that its total mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. (MBS See Mb/sec. MBS - mobile broadband services ) and mortgage related asset-backed securities (ABS) issuance reached a record $25.3 billion during the first half of 2003 in the U.S. "Opportunities presented by the continued low rate environment, combined with our family of innovative mortgage products, helped fuel tremendous MBS/ABS growth during the quarter and first half of 2003," said Eric Scholtz, executive vice president and managing director of capital markets at GMAC-RFC's Residential Capital Group. "Our record performance is a reflection of the strong partnerships with our mortgage lenders and brokers as well as our dedication to product and mortgage process innovation." The first-half $25.3 billion total included $6 billion in jumbo A product via the company's RFMSI shelf and a record $4.6 billion of alternative A product via its RALI shelf. In addition, the company issued $6.2 billion in subprime securitizations through its RASC RASC Royal Astronomical Society of Canada RASC Reconfigurable Application Specific Computing RASC Royal Army Service Corps (British) RASC Royal Agricultural Society of the Commonwealth (UK) shelf; and $1.7 billion in second lien A Second lien financing is a form of financing secured on a second ranking basis by (more or less) the same security, which secures the first ranking financing. The first lien lenders and the second lien lenders agree that, in the event of a security enforcement or bankruptcy, the product (HELOC HELOC Home Equity Line Of Credit , closed-end and high-loan-to-value (HLTV HLTV High Loan to Value HLTV Half-Life Television HLTV Half Life True Voice )) via its RFMSII shelf and a record $6.6 billion of program exceptions, seasoned product and HLTV first lien product via its RAMP shelf. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. industry sources(a), GMAC-RFC is the second largest private mortgage conduit in the first half of 2003, with a 9.5 percent market share. In addition, GMAC-RFC is a top five issuer of subprime MBS during the first half of the year, contributing to its position as the Number One issuer of mortgage-related ABS. GMAC-RFC also ranks first nationally among warehouse lenders, with $16.6 billion in managed commitments. In the second quarter, GMAC-RFC issuance totaled $14 billion, which included $2.6 billion in subprime; a record $2.4 billion in alternative A product; and $4.3 billion off its RFMSI shelf. In addition, the company issued a record $3.6 billion of program exception product via its RAMP shelf, which included product primarily comprised of loans whose attributes fall outside the guidelines of the company's jumbo, alternative A and subprime programs. "Our continued success is a direct result of the many asset types we can deliver to investors through our differentiated shelves," Scholtz said. "Through strategic relationships with our lender partners we are able to create a consistent supply of all products for investors. This ultimately leads to better value and more options for homeowners." ABOUT GMAC-RFC GMAC-RFC, a wholly-owned subsidiary of GMAC GMAC General Motors Acceptance Corporation GMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance Financial Services, is a leading private issuer of mortgage-backed securities (MBS) and mortgage-related asset-backed securities(ABS), and the No. 1 warehouse lender in the United States. The company leverages its strengths in securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. , lending and investment to offer a broad portfolio of innovative capital solutions to businesses in a variety of markets. The company is headquartered in Minneapolis and operates in the United States, Canada, Mexico, United Kingdom and Continental Europe. www.gmacrfc.com (a) Inside Mortgage Publications, Thompson Financial |
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