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GMAC Municipal Mortgage Trust Announces $82 Million Freddie Mac Multifamily Securitization.

DENVER -- GMAC Municipal Mortgage Trust (GMAC MMT) announced that it closed a new $82 million securitization with Freddie Mac (NYSE:FRE) on November 1, 2005. GMAC MMT and its affiliates sponsored the securitization and contributed the underlying tax-exempt and taxable multifamily bonds. Freddie Mac, as the issuer, guarantees the payment of and provides a liquidity facility for the variable rate Class A certificates. The securitization was structured with three series of Freddie Mac Multifamily Class A variable rate certificates. Each series of Class A certificates was sold to institutional investors. The pool assets are secured by mortgages on 12 properties and 2,409 units.

This securitization was developed under Freddie Mac's Tax-Exempt Bond Securitization (TEBS) program. The TEBS execution is a proprietary product developed by Freddie Mac, which allows for the creation of a senior/subordinate securities structure backed by tax-exempt and taxable bonds, as well as conventional debt.

James Hahn, managing director of Newman Capital LLC, GMAC MMT's manager, commented, "We are very pleased that Freddie Mac was willing to work directly with GMAC MMT and its affiliates as counterparty for this efficient funding transaction. This securitization provides GMAC MMT attractive long-term senior funding and liquidity for $82 million in tax-exempt assets."

"The TEBS vehicle allows Freddie Mac to bring the efficiencies of the capital markets to affordable housing," said Clayton Davis, Freddie Mac's director of Structured & Affordable Sourcing. "Using this proprietary execution, Freddie Mac expects to make affordable housing available for more families in America."

Properties in the pool are deeply affordable. Most properties operate under the project-based Section 8 program Housing Assistance Payment (HAP) contracts; some receive Interest Reduction Payments (IRPs), and all include four percent tax credits (subject to Low-Income Housing Tax Credit regulations). Three properties, located in Tennessee, offer features and amenities to accommodate a predominantly physically-challenged and seniors tenant base.

GMAC Municipal Mortgage Trust is a direct and indirect investor in tax-exempt mortgage revenue bonds and other investments that generate tax-exempt income. As of October 31, 2005, the Trust's portfolio consists of interests in approximately $1 billion of mortgage revenue bonds which finance multifamily developments located across the United States.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any of these securities. The securities offered and sold have not been registered under the Securities Act, or any state securities laws. Unless so registered, the securities may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of such securities laws.

This news release contains forward-looking statements. Actual results may differ materially from these forward-looking statements as a result of various factors and risks. These forward-looking statements are based on information available to the Issuer at the time of this release and it assumes no obligation to update any such forward-looking statements. The statements in this release are not guarantees of future performance.
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Publication:Business Wire
Date:Nov 23, 2005
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