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GMAC Residential Funding of Canada Limited Reaches Agreement to Purchase ResMor Trust Company
VANCOUVER, BRITISH COLUMBIA June 12 - GMAC Residential Funding of Canada
Limited, a subsidiary of Residential Capital, LLC (GMAC ResCap) has reached an
agreement to purchase ResMor Trust Company (ResMor), a leading provider of
mortgages through Canada's broker community.
The purchase of ResMor is subject to Canadian regulatory approval and
therefore the transaction is expected to close late in the third quarter of
the year. Terms of the acquisition were not disclosed.
ResMor Trust Company (www.resmor.com) is a federally licensed trust
company operating across Canada focused on residential mortgage lending,
mortgage servicing and deposit products. It currently has billion of
mortgages under administration representing almost 24,000 homeowners. ResMor
originates all of its products through the brokerage community. In addition,
ResMor is a member institution of Canada Deposit Insurance Corporation (CDIC).
"The acquisition provides us with the opportunity to grow and diversify
our Canadian business operations by expanding our footprint in the Canadian
real estate finance market, and providing our investor clients with access to
a broader array of mortgage-backed securities," said Barry Dunleavy, senior
managing director of the Americas for GMAC ResCap's International Business
Group.
In addition, noted Dunleavy, the acquisition also fits GMAC Residential
Funding of Canada's broader strategic plan of developing a servicing platform.
GMAC Residential Funding of Canada and ResMor are expected to operate
separately. ResMor Trust's management team, led by James Clayton, president
and chief executive officer, and Gerry Wagner, vice president and chief
financial officer, will remain in place after the closing of the sale.
"We look forward to working with GMAC Residential Funding of Canada to
continue to grow ResMor's presence in the marketplace by leveraging each
other's resources," said James Clayton. "This is a great opportunity for us to
provide Canadian homeowners with a broader access to products that meet their
needs."
About GMAC Residential Funding of Canada Limited
Founded in 2002, GMAC Residential Funding of Canada (GMAC-RFC) has had
mortgage originations in excess of .5 billion, with .2 billion currently
under administration. The company offers a wide variety of conventional,
sub-prime and other mortgages. The company has issued over billion of
securities to the Canadian market since its arrival in 2002. GMAC-RFC
(www.gmacresidential.ca) is an independent subsidiary of GMAC ResCap
(Residential Capital, LLC), a leading real estate finance company, focused
primarily on the residential real estate market in the United States, Canada,
Europe, Australia, and Latin America. The company's diversified businesses
cover the spectrum of the residential finance industry, from origination and
servicing of mortgage loans through their securitization in the secondary
market. GMAC ResCap also provides capital to other originators of mortgage
loans, residential real estate developers, resort and timeshare developers and
healthcare companies.
GMAC ResCap (http://www.gmacrescap.com) is an indirect wholly owned
subsidiary of GMAC Financial Services. GMAC Financial Services is a global,
diversified financial services company that operates in approximately
40 countries in automotive finance, real estate finance, insurance and
commercial finance businesses. GMAC was established in 1919 and currently
employs about 31,000 people worldwide. At Dec. 31, 2006, GMAC held more than
7 billion in assets and earned net income for 2006 of .1 billion on net
revenue of .2 billion. For more information, please go to
http://www.gmacfs.com.
About ResMor Trust Company
ResMor Trust Company (www.resmor.com) is a federally licensed trust
company operating across Canada focused on residential mortgage lending,
mortgage servicing and deposit products. It currently has billion of
mortgages under administration representing almost 24,000 homeowners. ResMor
originates all of its products through the brokerage community.
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