GMAC - RFC Acquires Canada's Leading Mortgage Brokerage

GMAC-RFC ACQUIRES CANADA’S LEADING MORTGAGE BROKERAGE

Deal allows Mortgage Intelligence to introduce new niche lending products in Canada

TORONTO/MINNEAPOLIS — Wednesday April 3, 2002 Mortgage Intelligence, the largest independent residential mortgage brokerage in Canada, today announced the sale of the company to GMAC Residential Funding of Canada, Limited, a subsidiary of Residential Funding Corporation (GMAC-RFC), which is headquartered in Minneapolis. As part of GMAC-RFC, Mortgage Intelligence will have access to the financial resources it needs to introduce new niche mortgage products to Canadian homebuyers.

“Our intent is to give Canadian consumers more choices and greater flexibility when it comes to residential mortgage products,” said Bob Ord, president of Mortgage Intelligence. “As part of GMAC-RFC, we have access to unregulated capital, which will allow us to bring niche products, such as second property or stated income mortgages, to the Canadian market."

Mike Kozlak, president of GMAC-RFC’s Residential Capital Group, said the acquisition of Mortgage Intelligence solidifies GMAC-RFC’s position as a worldwide capital partner. “It helps diversify our core residential mortgage finance business and gives us a strong presence in a very promising market,” Kozlak said. “We believe Mortgage Intelligence will be able to leverage our resources and provide Canadian homebuyers with tremendous value.”

“Establishing a strong presence in the Canadian market will create new growth opportunities for our enterprise and provide us with new perspectives on our business as a whole,” Kozlak added. “We may even develop new products or identify new process improvements in Canada that we can apply to other areas of our business.”

“The timing of the acquisition, given the strength of real estate markets across Canada, will allow Mortgage Intelligence to capitalize on an emerging consumer trend that favors mortgage brokerage firms,” Ord said.

“Our independent mortgage brokers are rapidly gaining consumer trust. They are earning business by listening to consumers’ needs and working hard to provide them with the best possible mortgage solution,” Ord said. “Our brokers will continue to offer Canadian consumers a choice of financial products from more than 30 lending institutions across the country.”

The mortgage brokerage industry is in a developmental stage in Canada, according to Ord. Last year, 25 percent of home purchases were funded through mortgage brokers, up from 14 percent in 1999. By contrast, nearly 70 percent of all residential mortgages in the U.S. go through brokers. This number alone suggests that there continues to be untapped potential for Canadian mortgage brokers.

“Mortgage brokers are becoming a force in the Canadian residential mortgage business,” Ord said. “Within three years, we expect brokers will represent 50 percent of all mortgages financing home purchases in Canada. With GMAC-RFC’s resources behind us, Mortgage Intelligence will be positioned to capture a significant portion of that business.”

Last year, Mortgage Intelligence closed more than C$3.2 billion (U.S.$2.1 billion) in residential loans. Ord said he expects the Toronto-based company will generate more than C$4.5 billion (U.S.$2.95 billion) in mortgages for 2002.

ABOUT GMAC-RFC

GMAC-RFC, a wholly owned subsidiary of General Motors Acceptance Corporation, is a leading private issuer of mortgage-backed securities and home equity loan asset-backed securities, and the No. 1 warehouse lender in the United States. The company leverages its strengths in securitization, lending and investment to offer a broad portfolio of innovative capital solutions. The company is headquartered in Minneapolis and operates in the United States, Europe and Latin America.

ABOUT MORTGAGE INTELLIGENCE

Mortgage Intelligence Inc. is the largest volume independent mortgage broker in Canada, with more than 400 associates in its British Columbia, Alberta, Ontario, and Quebec offices. The company has grown organically and by acquisition throughout 2000 and 2001. Initially concentrated in Ontario, Mortgage Intelligence consultants are now nationwide. The combined company funded volumes of close to C$2.5 billion in fiscal year 2000 and C$3.2 billion in 2001.

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