GMAC MORTGAGE GROUP ANNOUNCES ACQUISITION

         of Capstead Inc. Servicing Platform, Loan Portfolio 
MINNEAPOLIS and HORSHAM, Pa., Dec. 10 /PRNewswire/ -- GMAC Mortgage Group
today announced an agreement to acquire Capstead Inc.'s servicing platform and
portfolio of 400,000 conforming loans.  The acquisition is expected to close
before the end of the first quarter of 1999. 
Under the terms of the agreement, Homecomings Financial Network, Inc. a
wholly-owned subsidiary of Residential Funding Corporation ("GMAC-RFC") --
will acquire all the assets, technical know-how and intellectual properties
associated with Capstead's servicing platform, and offer to hire substantially
all of the platform's employees.  The acquisition, which comes in the wake of
a three-year arrangement in which Capstead has serviced Homecomings Financial
Network's jumbo loans on a private-label basis, is aimed at increasing
GMAC-RFC's risk-management capabilities and enhancing its securitization
execution.  Specifically, the transaction is expected to assist GMAC-RFC in
managing its prepayment-sensitive assets. 
As part of this transaction, GMAC Mortgage over the next several months
will migrate Capstead's 400,000 conforming loans totaling $38 billion to its
servicing facilities in Horsham, Penn.; San Diego, Calif., and Waterloo, Iowa
-- boosting the total number of loans serviced by GMAC Mortgage to
1.5 million. 
GMAC-RFC President Bruce J. Paradis commented, "We are pleased to be
entering a permanent relationship with our long-time primary jumbo loan
servicer, Capstead.  This acquisition supports and enhances our
risk-management capabilities."  Paradis further stated, "GMAC-RFC is now
well-positioned to seek and fulfill strategic opportunities being presented by
the market, shoring up our core businesses -- securitization, lending and
investing." 
GMAC Mortgage President Mike O'Brien underscored the transaction's
significance.  "Our acquisition of Capstead's portfolio of conforming loans
strengthens our position as a leader in servicing," said O'Brien.  "Not only
does this move signal even greater cooperation between GMAC-RFC and GMAC
Mortgage, it is our expectation that GMAC Mortgage will be servicing loans for
more than 2 million customers in the year 2000." 
Both Paradis and O'Brien indicated that, over the next 60 days, the
companies will finalize a transition plan.  "The transition teams will be
determining the next steps for successfully ensuring a smooth transition for
our associates and customers and allowing us to achieve our vision," stated
Paradis. 
Capstead Inc. President Chris Gilson said, "This transaction is a natural
step forward in what has been a successful business relationship over the last
few years.  As part of the GMAC-RFC family, our primary purpose will be to
support GMAC-RFC's securitization business by maintaining our commitment to
expand our servicing capabilities, continuing to provide a high level of
customer service, to accelerate our portfolio-retention capabilities and to
manage prepayment loss mitigation and recapture." 
GMAC-RFC is a wholly-owned subsidiary of GMAC, and is committed to
providing capital and investments worldwide through its core businesses in
securitization, lending and investment.  The company is currently an industry
leader in the mortgage-backed securities, warehouse lending and housing
finance markets, and is headquartered in Minneapolis with offices nationwide,
in the United Kingdom and Mexico. 
GMAC Mortgage Corporation, based in Horsham, Pa., is an indirect,
wholly-owned subsidiary of GMAC.  It is one of the nation's leading mortgage
bankers, servicing first and second mortgage loans for more than 1.1 million
customers and originating loans from a nationwide retail branch network of
more than 265 offices. 
The GMAC Mortgage Group includes GMAC Mortgage Corporation, which
originates and services residential mortgages; GMAC Commercial Mortgage
Corporation, which originates and services commercial and multifamily loans;
GMAC-RFC, which is the largest nongovernmental sponsor of mortgage-backed
securities; and Residential Money Centers, which offers mortgage financing to
customers who cannot meet the requirements of traditional lenders. 
Today, GMAC is one of the world's largest and most successful financial
services institutions.  Two other major business sectors of the company
include insurance and mortgage banking.  GMAC Insurance Holdings, Motors
Insurance Corporation (MIC) offers multiple products, including automobile and
homeowners insurance and automobile mechanical service agreements, and its
subsidiaries include National General Insurance Company, which offers
private-label, direct-response insurance products.
 

SOURCE  GMAC Mortgage Group 
-0-                             12/10/98 
/CONTACT:  Lisa Stortz of GMAC-RFC, 612-832-7436, fax, 612-806-6691, or
lstortz@rfc.com, or Joan DalFarra of GMAC Mortgage, 215-682-1931, fax,
215-682-3769, or joan_delfarra@gmacm.com/ 
/Web site:  http://www.shandwick.com/ 
CO:  GMAC Mortgage Group; Capstead Inc.; GMAC-RFC
ST:  Minnesota, Pennsylvania
IN:  FIN
SU:  TNM 
-0- Dec/10/1998   18:26
EOS   (PRN)    Dec/10/98    18:26      86
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-0- (PRN) Dec/10/1998   18:41
 
 
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