GMAC Mortgage Formalizes Participation in Home Affordable Modification Program

Company signs HMP servicer participation agreement

FORT WASHINGTON, Pa., April 15 /PRNewswire/ -- GMAC's mortgage servicing operations this week formalized the company's commitment to participate in the Home Affordable Modification Program (HMP) to assist struggling homeowners. GMAC Mortgage LLC signed the HMP servicer participation agreement on April 13, but started early in 2009 to prepare for the program.

GMAC Mortgage proactively sent tens of thousands of financial packages to customers it believed would qualify for modifications under the federal program, and to date has distributed more than 100,000 financial packages to homeowners who are potentially eligible for modifications under HMP.

"We are pleased to be among the first servicers to formalize our participation in the HMP program," said Anthony Renzi, president of GMAC Mortgage and chief operating officer of Residential Capital, LLC, the company's parent.

"In the course of our 25 years of mortgage servicing, we have built strong relationships with Fannie Mae and Freddie Mac, and have partnered with both agencies in the past to pilot mortgage programs," Renzi continued. "This agreement represents our full support of the Obama Administration's program objectives and our confidence in these two agencies to implement and administer the program."

To accommodate the increased customer activity, in part driven by the Making Home Affordable modification and refinance programs, GMAC Mortgage began adding staff to its nationwide lending and servicing centers.

GMAC Mortgage executives who lead the company's servicing operations, Joseph Pensabene and John Vella, are overseeing the changes to staffing, processes and technology needed to implement the HMP program effectively while maintaining the company's top servicer ratings.

GMAC Mortgage will launch a customer outreach program to follow up with homeowners who have not returned the financial packages within 90 days of sending. The company also makes the financial package available for download on its web sites (gmacmortage.com, homecomings.com and ditech.com).

"We want customers to contact us if they are behind or are having difficulty keeping up with payments," Renzi said. "The HMP program offers borrowers more modification options than were previously available, so it is important that homeowners reach out to us."

"It is critical that the customer quickly return the completed financial package and affidavit of hardship to us," he added. "The sooner we receive that information, the sooner we can evaluate them for a modification under the program's guidelines."

About GMAC Mortgage LLC

GMAC Mortgage LLC is a subsidiary of Residential Capital, LLC, which is itself an indirect wholly owned subsidiary of GMAC Financial Services. Residential Capital, LLC (ResCap) specializes in residential mortgage finance in the U.S. and certain international markets. GMAC Mortgage LLC originates and services residential mortgages under the GMAC Mortgage and ditech(SM) brand names. Residential Capital, LLC no longer originates mortgages under the Homecomings label. However, the company continues to service mortgages originated by Homecomings Financial, LLC. For more information, go to www.rescapholdings.com.

GMAC Financial Services

GMAC Financial Services is a bank holding company with operations in North America, South America, Europe and Asia-Pacific. GMAC specializes in automotive finance, real estate finance, insurance, commercial finance and online banking. As of Dec. 31, 2008, the organization had $189 billion in assets and serviced 15 million customers around the world. Visit the GMAC media site at www.media.gmacfs.com for more information.

    Contact

    Jeannine Bruin
    GMAC Financial Services
    Mortgage Communications
    215-734-6467 (office)
    215-356-3853 (cell)
    jeannine.bruin@gmacm.com

SOURCE GMAC Financial Services