ResCap Announces Support for Streamlined Mortgage Modification Plan

The following statement is issued by Residential Capital, LLC Chairman and Chief Executive Officer Thomas Marano in response to the Streamlined Mortgage Modification Plan announced on Nov. 11, 2008.

'Residential Capital, LLC (ResCap) strongly supports the actions taken today by the Federal Housing Finance Agency, the Government Sponsored Enterprises (GSE) and HOPE NOW to assist at-risk homeowners quickly achieve affordable and sustainable mortgages through the implementation of the Streamlined Modification Plan. This program will give us much needed flexibility to assist homeowners in maintaining their homes during this time of economic disruption.

'We encourage other mortgage investors to follow the example of the HOPE NOW, the GSEs and industry-leading servicers such as ResCap to adopt more flexible loan modification guidelines. Such efforts will help to preserve homeownership for willing and qualified home owners, and will stem the toxic effects that rising foreclosures have on our communities.

'ResCap has a long history of promoting home preservation. We are a founding member and an active participant in the HOPE NOW Alliance, and through our Hope Keychain Alliance program were the first servicer to put loan counselors in the communities most in need of assistance. We have held 4,300 face to face counseling sessions with troubled borrowers this year.

'ResCap is the fifth largest mortgage loan servicer, handling more than three million loans. On a year to date basis, we have helped 251,000 customers avoid foreclosure and remain in their homes, consistent with applicable investor guidelines. Through a combination of outbound calls, letters and in home visits, we have achieved a 14% customer contact rate in an effort to work with our customers and preserve home ownership.

'The robust loss mitigation procedures that we apply to our non-securitized loans exceed the guidelines set in the SMP, and include loan modifications, forbearance plans, repayment plans, short sales and deed in lieu of foreclosure activities.'

About Residential Capital, LLC

Residential Capital, LLC, an indirect wholly owned subsidiary of GMAC Financial Services, is a leading real estate finance company. ResCap's businesses cover the U.S. residential finance industry, from origination and servicing of mortgage loans through their sale or securitization in the secondary market. ResCap operates in selected international markets and also provides capital to other originators of mortgage loans and residential real estate developers. For more information, go to www.rescapholdings.com.

Source: Residential Capital, LLC

CONTACT: Jeannine Bruin, GMAC Global Communications - Mortgage,
+1-215-734-6467, jeannine.bruin@gmacm.com

Web site: http://www.rescapholdings.com/