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GMAC-RFC Receives Special Servicer Designation

23 March 1999

GMAC-RFC Receives Special Servicer Designation From Standard & Poor's, Fitch

    MINNEAPOLIS--March 22, 1999--GMAC-RFC (Residential Funding Corporation) today announced that it has been awarded the "Special Servicer" designation from international rating agencies Standard & Poor's (S&P) and Fitch IBCA (Fitch). Concurrently, S&P awarded GMAC-RFC the "Sub-Prime Servicer" designation.
    According to GMAC-RFC officials, both S&P and Fitch conducted comprehensive evaluations of GMAC-RFC's special servicing capabilities as part of the assessment process. The two rating agencies independently approved GMAC-RFC as a special servicer based upon a number of factors, including the experience and depth of GMAC-RFC's management team, its commitment to training, the deployment of proprietary technology and analytical tools within its loan resolution process, and the strong capital base of its parent, GMAC.
    GMAC-RFC executives stressed the significance of the designations, which are considered by investors to be a critical measure of a servicer's expertise in managing seriously delinquent assets, improving loan resolution rates and reducing overall loss severity.
    "The `Special Servicer' designations are clear evidence of GMAC-RFC's commitment to state-of-the-art risk management practices," stated Dan Thompson, managing director of GMAC-RFC's Asset Resolution Division (ARD). "This is a capital intensive business requiring strong financial backing, a commitment to innovation and the widespread use of technology in the loan resolution process. The `Sub-Prime Servicer' designation from S&P reflects GMAC-RFC's capabilities in managing all aspects of sub-prime loan administration, including servicing set-up, customer service, collections and investor reporting."
    GMAC-RFC securitization managing director of capital markets Jeff Detwiler welcomed the news. "These designations confirm GMAC-RFC's commitment to asset performance," explained Detwiler. "We believe that our newly recognized special servicing capabilities will positively impact asset performance of the underlying collateral placed in GMAC-RFC's mortgage-backed securities and asset-backed securities. We care deeply about the performance of the securities we create. GMAC-RFC's economic interests are directly aligned with those of investors in its securities as GMAC-RFC is a significant holder of its own securities and shares in both the credit and prepayment risk. Our special servicing capability aligns perfectly with and complements the firm's overall asset management strategy."
    GMAC-RFC is a wholly owned subsidiary of 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.