GMAC-RFC Announces Upcoming Acquisition of American Financial Consultants, Triad Financial Services.

MINNEAPOLIS--(BUSINESS WIRE)--March 1, 1999--GMAC-RFC today announced an agreement to acquire the assets of two of the nation's leading distressed consumer debt servicing companies - New York-based American Financial Consultants (NY), LLC (AFC), a subsidiary of the Phoenix Finance Group, LLC and Minneapolis-based Triad Financial Services, Inc. (Triad). The acquisitions are expected to close in March of 1999.

The pending acquisitions are the latest in GMAC-RFC's corporate diversification strategy. Strategically, GMAC-RFC has targeted the distressed asset servicing business as an attractive investment opportunity. In recent years, GMAC-RFC has enhanced its distressed asset servicing business with the acquisition of its Asset Resolution Division (ARD) in San Diego and Auritec, SA in Mexico. Now, with the purchase of AFC and Triad, GMAC-RFC will be expanding its investment into the United States non-secured distressed assets market.

At the closing of the acquisitions, Homecomings Financial Network, Inc. (HFN) - a wholly-owned subsidiary of Residential Funding Corporation ("GMAC-RFC") - will acquire the assets of the two companies. As part of these transactions, approximately 100 employees of AFC and 225 employees of Triad will become HFN employees.

GMAC-RFC President Bruce J. Paradis said, "We are pleased to be diversifying into this new area, which moves us one step closer to creating the nation's `best in class' distressed-asset servicing operation."

These acquisitions will provide GMAC-RFC with a high-quality entry into the non-secured distressed asset business, affords the firm relationships with top credit-card issuers, and support and enhance its risk-management capabilities.

"GMAC-RFC is now well-positioned to seek and fulfill strategic opportunities being presented by the market, while strengthening our core businesses - securitization, lending and investing," Paradis said.

Paradis said that over the next 30 days, the companies will finalize an integration plan. "The transition teams will be determining the next steps for successfully ensuring a smooth transition for our associates and clients and allowing us to achieve our vision," stated Paradis.

AFC Principal Nathan Kornfeld said "We are happy to become part of the GMAC-RFC family. We feel the synergy with GMAC-RFC will help us immensely in our continuing effort to build the business of purchasing and servicing distressed consumer assets." AFC Principal Gary Busacca, said "GMAC-RFC has demonstrated strong support for our operating philosophy and we look forward to becoming part of their family."

Triad Senior Vice President John O'Shea said "The purchasing and servicing of distressed assets, especially at the consumer level, has grown tremendously in the last few years. We at Triad are delighted to be a part of the platform for GMAC-RFC's aggressive growth."

GMAC-RFC has been actively expanding its business lines over the last twelve months. Recent acquisitions have included Capstead, Inc., Main America, and the Private Label Group in the United Kingdom. GMAC-RFC will continue to seek out opportunities to expand in strategically targeted markets in the future to further diversify its overall business lines.

GMAC-RFC is a wholly owned subsidiary of General Motors Acceptance Corporation (GMAC), and is committed to providing capital and investments worldwide through its core businesses in securitization, lending and investment. The company is currently an industry leader in the mortgage-backed securities, warehouse lending and housing finance markets, and is headquartered in Minneapolis with offices nationwide, in the United Kingdom and Mexico.

GMAC is one of the world's largest and most successful financial services companies, with business lines in automotive finance, commercial and residential mortgages and insurance. At Dec. 31, 1998, GMAC's owned assets and serviced automotive receivables exceeded $138 billion, and combined services assets of the GMAC Mortgage Group exceeded $250 billion. More information on GMAC Financial Services is available at http://www.gmacfs.com.