GMAC-RFC Enters Manufactured Housing Finance Market; Company to Leverage Its Unique Non-Conforming Expertise to Transform Financing Business Model.

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Feb. 9, 2004

Residential Funding Corporation (GMAC-RFC) today announced the creation of GMAC Manufactured Housing, a new business unit dedicated to delivering capital and providing operational infrastructure to the manufactured housing market. GMAC Manufactured Housing, along with select industry partners, plans to originate, acquire and service manufactured housing loans. GMAC Manufactured Housing will ensure that manufactured homes are sold, delivered and financed so as to preserve value to the customer and to investors in the manufactured housing market.

"Based on the affordability of manufactured housing as a vehicle to homeownership, we expect there to be high demand for capital resources, committed leadership and transparent operational platforms in this sector," said Chris Gilson, executive vice president and business leader of GMAC Manufactured Housing. "GMAC Manufactured Housing, along with our strategic partners, including Fannie Mae, is committed to providing an influx of capital to this underserved housing segment with the goal of establishing the highest standard for non-conforming and conforming manufactured housing financing across the industry and helping hundreds of thousands of families qualify for affordable, high-quality manufactured homes."

GMAC-RFC brings its risk management expertise and rational business model, proven through its more than 20 years' experience in the non-conforming residential mortgage sector, to its manufactured housing business. The company's lending strategy will be based on a partnership model, which is central to its core residential mortgage businesses in the U.S. and Europe. Through these targeted partnerships with manufacturers, communities and selected intermediaries, GMAC Manufactured Housing will provide innovative capital solutions intended to deliver more value to consumers. In the future, the company intends to leverage GMAC-RFC's expertise in securitization to issue asset-backed securities (ABS) backed by pools of manufactured housing loans.

"GMAC-RFC is committed to providing homebuyers with better value and a viable homeownership option through manufactured housing," said Mike Kozlak, president of GMAC-RFC's Residential Capital Group. "Homeowners will benefit from access to consistent, risk-based lending standards and a strong emphasis on customer satisfaction. For too many years, manufactured housing consumers have been forced to cope with inconsistent lending standards, the exit of major lenders from the marketplace and lax underwriting standards. We value customer satisfaction and view it as a cornerstone for the long-term growth and development of this vital housing sector."

Manufactured housing retail sales of new homes were estimated to be $8.2 billion in 2002 according to the Manufactured Housing Institute. Furthermore, the used buyer-to-buyer market is estimated to be twice that amount annually. Manufactured housing, defined as factory built or prefabricated homes, provides a cost-effective means to achieve homeownership. In 2000, 22 million Americans, or about 8 percent of the U.S. population, made their primary residence a manufactured home.

GMAC Manufactured Housing

GMAC Manufactured Housing, a division of GMAC-RFC's Residential Capital Group, originates, purchases and services chattel and land-home loans in the U.S. through its network of distribution partners. The company works with manufacturers, communities, select retailers and other intermediaries to provide capital and innovative financing products to the manufactured housing sector. GMAC-RFC, a wholly owned subsidiary of GMAC Financial Services, is a leading private issuer of residential mortgage-backed securities and mortgage related asset-backed securities in the U.S. The company has cumulative MBS/ABS issuance of more than $250 billion in the U.S. and $10 billion cumulative MBS issuance in the U.K. The company is headquartered in Minneapolis and operates in the United States, Europe and Latin America. www.gmacrfc.com.