History

GMAC ResCap was formed in May 2005 when Residential Capital, LLC transferred ownership of GMAC Mortgage and Residential Funding Corporation (GMAC-RFC) to Residential Capital (GMAC ResCap). The formation of GMAC ResCap combined the strengths of two highly successful industry-leading companies with a strong history of growth and innovation:

Residential Funding Corporation (RFC) was formed in 1985 by visionary bankers with the idea to pool jumbo mortgages and sell them as mortgage-backed securities in the capital markets. As one of the first private mortgage conduits, RFC purchased loans from originators such as mortgage banks, pooled the loans into securities and sold them to pension funds and other institutional investors. Within six months of launching, RFC had its first securitization. GMAC purchased RFC in 1990 and increased the company's ability to grow by moving into new markets and expanding geographically.

GMAC Mortgage was formed in 1985 by joining two successful, long-standing mortgage companies: Colonial Mortgage Service Company and Norwest Mortgage's loan administration division. Both Colonial Mortgage and Norwest Mortgage have histories dating back to the early 1900s — more than 80 years of providing innovative homeownership solutions.

Homecomings Financial was formed in 1995, when GMAC-RFC acquired the assets of Mortgage Service America and operated the new business under the name Homecomings Financial Network. In 1999, GMAC-RFC acquired the mortgage servicing operation of Dallas-based Capstead Mortgage Corp. The unit was integrated into the Homecomings Financial Network.

In 2006, GMAC ResCap began the process of integrating all of its servicing operations into one servicing operation, or a debt servicing utility, as it is called in the industry. Integrating the operations of GMAC Mortgage and Homecomings Financial will reduce costs, increase operating efficiencies and enhance the overall experience of customers served by either GMAC Mortgage or Homecomings Financial.

In 2003, Homecomings Financial launched the Home Ownership Preservation Enterprise with a pilot program in Chicago, a special outreach program focused on homeowners who are experiencing financial difficulties and may be in danger of going into foreclosure. The success of the program in Chicago, which prevented more than 700 foreclosures, led to similar plans for Atlanta, Detroit, Dallas and six additional U.S. cities in 2004. Today, the HOPE program is recognized throughout the industry as an innovative solution to reducing mortgage delinquencies and preventing foreclosures.