Gmac Commercial Mortgage

Document Sample
Gmac Commercial Mortgage Powered By Docstoc
					 GMAC-RFC
 Chris Nordeen

 Presentation to the IFC – March 2006




Worldwide Capital Partner
Corporate Structure
ResCap has obtained investment grade credit ratings as an
independent finance subsidiary of GMAC
Organizational Structure
               ResCap History (RFC & Resi)
1982                                    1991                                             1997
Residential Funding                     Acquired Warehouse                               Established U.K.
Corporation (RFC)                       Lending Business                                 Broker-Dealer
Founded as a private
mortgage conduit
                                               1992                                              1998
                                               Established Residential                           Established Residential
       1985                                    Construction Finance                              Equity Business
       Acquired Master Loan                    Business
       Servicing Business
                                                                                                     1999
                                                      1995
                                                                                                     Acquired Model Home
              1989                                    Acquired Wholesale                             Finance Business                                                                                                               2004
              Established U.S.                        Lending Business
              Broker-Dealer                                                                                                                                                                                                         Established
                                                                                                                                                                                                                                    Manufactured
                                                                                                                                                                                                                                    Housing Finance
                     1990                                    1996                                                                                               2001                      2002                                      Business

                     GMAC                                    Acquired Distressed Asset                                                                          Entered The               Entered Canada &                          Acquired Primary Loan
                     Acquires RFC                            Resolution Business                                                                                Netherlands               Germany                                   Servicing Business
                                                                                                                                                                Acquired Healthcare       Established Resort                        Entered the U.K. &
                                                                                                                                                                Finance Business          Finance Business                          Mexico



                                               1995                                      1998           1999                                 2000               2001                    2002                            2003                                2005                    2006
                            GM Family Members:                             GMAC Mortgage                GMAC Mortgage Becomes                GMAC Residential   GMAC Bank Opens         GMAC Mortgage Achieves          GMAC Residential launches           GMAC Residential 20th   ResCap Continues its
                             Family First Offered                            Acquires Wells             largest Servicing-Only               Homeownership                              Record Volume                   CalDirect                           Year with GMAC          Amazing Race
                                                                          Fargo’s portfolio &           Acquisition in Company’s                                GMAC Residential
                                                                                   Servicing            History                              GMAC Bank formed   Purchases Warehouse                                     GMAC Residential Sponsors           ResCap is Launched
                                                      1996                                                                                                      Group                                                   Ditech NASCAR
                                                                               GMAC Home                GMAC Mortgage Acquires
                                    GMAC Commercial                               Services              DiTech                                                  GMAC Mortgage Forms
                                    Mortgage largest US                                                                                                         Home Connects Lending
                                     commercial lender                                                                                                                                                                                       2004
                                                                     Better Homes & Gardens             Better Homes & Gardens Real                             Services
                                                                           Real Estate Service          Estate Service Network Transitions                                                                                                   GMAC Residential Converts
                               GMAC Mortgage Issues                         Network Acquired            to GMAC Real Estate                                                                                                                  Servicing to Single Platform
                            First Asset Backed Security                                                                                                                                                                                      (DSU).
                                                                       GMAC Home Services               GMAC Home Services
                                                                         purchases Argonaut             Acquires GMAC Global
                                                                                 Relocation             Relocation Services
                                                                     GMAC Mortgage Enters
                                                                                                        GMAC Mortgage Enters
                                                                     Correspondent Business
                                                                                                        Broker Business
                                                                                                        Enterprise Named GMAC
                                                                                                        Residential


                                                                                                                                                                                                                 GMAC Residential Acquires
                                                                                                                                                                                                                 Pacific Republic Mortgage
Mission - International Business Group
Create Sustainable growth for ResCap through product
  and market diversification
Market Leader
    Become a market leader in each market in which
      we operate
Sustainable Growth
    Create sustainable growth through diversification
Disciplined Leadership
    Extend ResCap’s core competencies into new markets
      through disciplined leadership
Traditional Mortgage Market



   Borrower       BANK        Saver
GMAC-RFC Business Model




We move capital between businesses and investors in select global markets.
Government can influence along the value chain


 Borrower                   Bank                        Investor

 Direct subsidies           Capital requirements     Pension reform
 Tax breaks                 Tax laws         Guarantee debt
 Mortgage insurance         Mandate lending          Asset/liquidity
 Lender                     Common standards         oversight

 All of these actions can positively or negatively affect the development
 of a securitization market.
Sustainable Growth
Why did GMAC-RFC go International?

Provide sustainable growth

International Parent

GSE Expansion

Diversification
         Why go Beyond U.S. Border?

                              GSE encroachment in US market
                  1 million
                                                  * Approximate conforming
                  417,000**                         loan limit in 1990
Loan Size (USD)




                  *
                                                  ** 2005 Conforming Loan
                                                     Limit
                  360,000**                       *** 2006 Conforming loan limit

                  187,000*

                              FNMA
                              FHLMC

                   Credit Grade   A     A-    B    C
What ResCap brings to New Markets



    Value both local and Enterprise
    perspective in expanding our
           Global Reach
Where is GMAC-RFC Internationally?



                                                         Sweden
                                                                                         Russia
     Canada
                                     United KingdomNetherlands
                                                  Germany    Poland
                                          Switzerland       Czech Rep.
                                            France           Hungary
      United States                                    Italy                                       South Korea
                                           Spain                 Turkey                                          Japan
                                                          Greece                           China

                                                                 Egypt
                                                                                 India
                                                                                                      Taiwan
      Mexico
                                                                                           Thailand




                            Brazil


                                                                                                         Australia

                  Chile                                South Africa

                          Argentina                                       RFC Established Businesses
                                                                          Joint Ventures
Where is GMAC-RFC Internationally?



                                                         Sweden
                                                                                         Russia
     Canada
                                     United KingdomNetherlands
                                                  Germany    Poland
                                          Switzerland       Czech Rep.
                                            France           Hungary
      United States                                    Italy                                       South Korea
                                           Spain                 Turkey                                          Japan
                                                          Greece                           China

                                                                 Egypt
                                                                                 India
                                                                                                      Taiwan
      Mexico
                                                                                           Thailand




                            Brazil


                                                                                                         Australia

                  Chile                                South Africa       RFC Established Businesses
                          Argentina                                       Joint Ventures
                                                                          RFC Personnel in Country
Where is GMAC-RFC Internationally?



                                                          Sweden
                                                                                           Russia
      Canada
                                      United KingdomNetherlands
                                                   Germany    Poland
                                           Switzerland      Czech Rep.
                                                             Czech Rep.
                                             France           Hungary
       United States                                    Italy                                        South Korea
                                            Spain                 Turkey                                           Japan
                                                           Greece                            China

                                                                  Egypt
                                                                                   India
                                                                                                        Taiwan
       Mexico
                                                                                             Thailand




                             Brazil


                                                                                                           Australia
                                                                           RFC Established Businesses
                   Chile                                South Africa
                                                                           Joint Ventures
                           Argentina
                                                                           RFC Personnel in Country

                                                                           Countries Under Consideration
GMAC-RFC Screening process
Size of the Opportunity
   –   Size of Current (Outstanding) Mortgage Market
   –   Margins Available
   –   Size of Projected Mortgage Market
   –   State of Development of Debt and Securitization Market

Regulatory Environment
   –   Regulatory Framework for Securitization
   –   Foreign Ownership Regulations
   –   Profit Repatriation Regulations
   –   Foreclosure Regulations
   –   Licensing Requirements
GMAC-RFC Screening process (cont)

Business Environment
   – Role of Government
   – Intermediaries
   – Ability of GMAC to fund locally


Others
   – Macroeconomic stability
   – Level of corruption
Government can influence along the value chain


 Borrower                   Bank                        Investor

 Direct subsidies           Capital requirements     Pension reform
 Tax breaks                 Tax laws         Guarantee debt
 Mortgage insurance         Mandate lending          Asset/liquidity
 Lender                     Common standards         oversight

 All of these actions can positively or negatively affect the development
 of a securitization market.
Assessing the countries in each screen helps us quantitatively evaluate the relative
attractiveness of countries



 10
                                                                        Final Scores


  8                               10 most attractive                                                11 least attractive
      7.35
             6.70   6.66


  6                        5.56
                                   5.34
                                          4.72   4.59
                                                        4.39   4.29   4.12
                                                                             3.96
  4                                                                                 3.75   3.68   3.61
                                                                                                         3.45   3.36   3.29   3.16
                                                                                                                                     2.85

                                                                                                                                            2.10
  2                                                                                                                                                1.62




  0
      AU     CH      JP     IT     SE      CL    TW      ZA    KR     BR     GR      IN     CZ    HU     CN     AR      TR     TH     PL    EG     RU
        As one would expect, the attractiveness varies by bucket
                     Size of         Reg.         Buss.
                   Opportunity                               Others
         Country                 Environment   Environment                                      Comments
                                                             (10%)
                     (40%)          (20%)         (30%)

Australia              2             1              2          2

Switzerland            3             5              3          1

Japan                  1             7             13          4      Low local funding of GMAC. Market concentration

Italy                  4             11             7          6      Foreclosure difficult

Sweden                 5             2              6          3

Chile                  15            4              4          7      Small market but scores high on other factors

Taiwan                 8             8              7          5

South Africa           12            13             1         14      Significant (and growing) intermediary channel

Korea                  6             3             19         13      High government involvement
Brazil                 9             6             12         18      Unstable macroeconomic environment

Greece                 11            10             9         10
India                  10            15            11         12

Czech Republic         18            18             4         11      Small market. Regulations yet to “develop”

Hungary                17            9             10         15      Small market but good buss. and regulatory environment

China                  7             19            18          9

Argentina              13            11            14         19

Turkey                 14            13            14         20

Thailand               16            16            16         17

Poland                 19            17            17         16

Egypt                  21            20            21          8

Russia                 20            21            20         21
Market Leader
United Kingdom Overview
Began with purchase of small B2B Lending platform in 1998
First bond issue September 1999 - Mix of own origination and Acquired
   Loans
First UK non-conforming mono-line wrapped deal
   November 2000
First major UK lender to make whole loan trading an active business
   strategy
Development of self-cert. market (Low Doc.)
First Point Of Sale Decision system in UK
Launch of securitization/whole loan hybrid program
  in 2005
Netherlands Overview

De novo start up in 2000

Created a risk-based approach to lending in the Netherlands

Offered products through multiple channels

Innovated European securitizations with EMAC program
 Germany Overview
Began in 2002 with the purchase of Creditweb

Expanded Broker offerings with product from
  GMAC-RFC Bank gmbh

Focus on underserved product sectors

Creation of new mortgage instruments - briefgundschulden

Issued Germany’s first true sale securitization
   in 2005 (E-MAC DE 2005-I)
Latin America Overview

Mexico
Operate as two entities: GMAC Financiera & GMAC Hipotecaria
First private warehouse lender to mortgage banks (Sofoles)
Construction Lending to Sofoles and Large Developers
First ever Mexican RMBS completed in December 2003
Partnership with regional and multi-national bodies to actively develop
   MBS market (IFC/IADC/FMO)
Established whole-loan trading market with first acquisition in 2004
Expanded investor base including international investors
Bi-National Mortgages

Brazil and Chile
Joint Ventures in Brazil and Chile to continue growth
Canada Overview

Purchased Mortgage Intelligence in 2002, the largest independent
  mortgage broker in Canada
Formed GMAC RFoC to lend expanded criteria and expanded credit
   products in Canada
Offered products through Mortgage Intelligence and expanded to
   other institutions
Completed three securitizations through the GMAC RFoC program
Crafted a structure funding program for pipeline assets
United Kingdom (Production and Sales)

GMAC-RFC Origination, Securitization and Portfolio Sale Volumes
   U.K. and Continental Europe RMBS Issuer rankings - 2004 and 2005


                   Originator                                  Total EURm        No of Issues              Share (%)




      1            HBOS                                          20,727               3                     17.7
      2            Northern Rock                                 16,263               3                     13.9
      3            GMAC-RFC                                       6,614               6                      5.7
      4            Abbey National                                 5,963               1                      5.1
      5            Fortis                                         4,397
                                                              Originator              2                      3.8       Total EURm   No of Issues   Share (%)


      6            Paragon                                        3,932               3                      3.4
      7            Kensington Mortgages            1          Northern Rock
                                                                 3,326                3                      2.8        18,184           4          20.5
      8            Bradford & Bingley              2          HBOS
                                                                2,881                 1                      2.5        12,605           2          14.2
      9            3CIF Group                      3          GMAC-RFC*
                                                                2,871                 2                      2.5          5,144          6           5.8
     10            Bancaja                         4          Bancaja
                                                                2,590                 2                      2.2          3,680          2           4.1
                   Total                           5          SNS Bank
                                                               116,911                                                    3,056          2           3.4
Period: 1 January 2004 to 22 December 2004
                                                   6          UniCredit Banca                                             2,990          1           3.4
Includes: MBS, ABS and CDO’s
Source: MCM and RBS                                7          Bankinter                                                   2,775          2           3.1
                                                   8          Standard Life Bank                                          2,056          1           2.3
                                                   9          Caja de Ahorros del Mediterraneo                            2,000          1           2.3
                                                  10          3CIF Group                                                  1,834          1           2.1
                                                              Total                                                     89,030
                                             * Includes EMAC NL and EMAC-DE transactions & RMAC 2005-NC3
                                             Period: 1 January 2005 to 21 September 2005
                                             Includes: MBS
                                             Source: MCM and RBS
Disciplined Leadership
Why we have been successful
  Success driven by “disciplined leadership” approach to
  market expansion

Common risk management practices
Common lending policies
Common approach to capital factors and financial metrics
Worldwide relationships with rating agencies and strategic
  funding partners
Ability to share credit and prepayment data across different
  markets
New markets – what’s next

Spain/Australia
     Dedicated Personnel
     B-to-B Alt “A” Products
     Future Work
        • Eastern Europe
        • India
        • China
Mission – International Business group
Market Leader
    Multiple channel mortgage banking businesses
    Risk-based pricing
Sustainable growth
    Diversification
        • Market
        • Income source fee gain-on-sale, financing
        • Lending and Mortgage Banking
Disciplined leadership
    Expand ResCap Core competencies into selected new markets
    Control over the front and back of the mortgage process

				
DOCUMENT INFO
Description: Gmac Commercial Mortgage document sample