Homecomings Financial Originates Record $14 Billion in 2002; Company Attributes Service Quality and Improved Process

Business Wire, Feb 25, 2003

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Feb. 25, 2003

Homecomings Financial(SM), a wholly owned subsidiary of Residential Funding Corporation (GMAC-RFC), announced today that its wholesale channel originated a record $14 billion in mortgages during 2002, an 80 percent increase from 2001.

In addition, January's volume marks growth of more than 60 percent from the same period last year.

"Our record volume illustrates our success in providing our brokers with a tremendous competitive advantage," said Lee Jacobsohn, executive vice president and managing director of the wholesale business for Homecomings Financial. "In this low-interest rate environment, we have helped brokers increase their volume by meeting the needs of a wider range of borrowers."

Homecomings Financial partnered with its brokers to assist over 90,000 homeowners meet their home financing needs in 2002, Jacobsohn said.

Jacobsohn attributed much of Homecomings Financial's record funding volumes to an improved and streamlined process. "I believe we are successful because we fulfill our promise of delivering the best combination of personal service, a technology driven process and innovative products to meet homeowner needs," Jacobsohn said. "Our growth was amplified by targeting mortgage brokers who value that combination and creating strong relationships with them."

For 2003, Homecomings Financial anticipates continued growth with the release of its new Expanded products, which deliver an even broader array of mortgage solutions through the company's Assetwise Direct(SM) automated underwriting engine. "We expect our Expanded products to upgrade or approve one out of five loans that previously could not be approved by automated underwriting," Jacobsohn said.

According to industry sources,(a) Homecomings Financial ranked the 10th largest wholesale originator in 2002.

Homecomings Financial Network Inc. (Homecomings Financial), a wholly owned subsidiary of Residential Funding Corporation (GMAC-RFC), is a leading wholesale lender and mortgage servicer. GMAC-RFC, a wholly owned subsidiary of General Motors Acceptance Corporation (GMAC), is a leading private issuer of mortgage-backed securities and home equity loan asset-backed securities and the No. 1 warehouse lender. The company leverages its strengths in securitization, 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) Thomson Financial Publications