Press Release

GMAC Mortgage Survey Reveals Consumers Lack Knowledge About Credit Ratings. - 62% Unaware of the Most Favorable Credit Score to Obtain the Best Mortgage Rate - Only 42% Realize the Importance of Payment History and the Impact on Credit Scores

Horsham, PA - July 19, 2005 - GMAC Mortgage today announced that, according to the GMAC Mortgage Second Quarter Consumer Survey, U.S. consumers lack important knowledge about credit scores. The survey revealed that the majority of consumers do not fully understand the importance of a credit score, how that score is determined and, most importantly, the steps one can take to improve credit scores.

"Having good credit is critical to securing a favorable mortgage rate so it's extremely important that consumers understand their credit score. With proper long-term planning, consumers can improve their credit rating to avoid higher interest rates, and as a result larger monthly payments on their home," said Paul Fein, senior vice president and southeast divisional manager, GMAC Mortgage. "A good credit score requires more than timely bill payment; consumers must be conscious of their debt reduction efforts and outstanding revolving credit before they begin the mortgage process."

The survey polled more than 1,000 consumers nationwide on the impact of credit on the entire home financing process. Key findings include:

Credit score
62 percent of respondents did not know that a score above 620 out of 850 is necessary to secure the most favorable mortgage rate.
Misperception on the factors that affect credit scores
More than 50 percent incorrectly answered that increased income level will raise one's credit score
Factors that correctly affect credit scores
Only 42 percent knew that payment history was a critical determinant to a credit score
Checking credit scores
64 percent of respondents would check their credit only six months before purchasing a home

"Potential homebuyers should not view credit ratings as the last step in the home financing process. Credit scores are essential to the mortgage lending process and it's important that homebuyers start evaluating their credit scores early in the process so they can get above the 620 mark before their formal application is processed," said Mr. Fein. "We are encouraged to see that 92 percent of consumers polled are taking some action to improve their credit; however consumers must be educated on what actions will and will not affect their ability to secure home financing."

As noted by the national credit rating agencies, an individual's credit rating is attained by calculating and evaluating several factors including payment history during the last two to three years, amount of debt outstanding and available lines of credit, length of credit history, new lines of credit and types of credit used. However, other factors such as the number of accounts with outstanding balances, proportion of credit used, length of account activity and number of recent credit inquiries also play a significant role.

GMAC Mortgage recommends consumers reach out to their local GMAC Mortgage office, where trained loan officers can review their individual credit situation. The company's mortgage professionals will work with these potential homebuyers to create a timeline of actions to resolve their credit issues.

GMAC Mortgage and CARAVAN Opinion Research Corporation conducted a national telephone survey of 1,057 households nationwide between May 13 and May 16, 2005. For a sample of 1,000, the margin is plus or minus three percentage points at the 95% confidence level.

About GMAC Mortgage
GMAC Mortgage Corporation, headquartered in Horsham, Pa., originates first and second lien residential mortgages through a nationwide network of retail offices, direct lending centers and Internet sites under the brands gmacmortgage.com and ditech.com. The company services loans for 2 million customers throughout the nation.

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