Ally Financial Inc. · NYSE:ALLY
Ally Financial — Gmac — Investor Day (March 2007)
95 slides from Ally Financial's investor day presentation, Mar 28, 2007
Slide 1: GMAC Financial Services ResCap Investor Forum
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Slide 2: 2007 Investor Forum
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Slide 3: Ken Fischbach, Investor Relations
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Slide 4: ResCap Overview
ResCap Overview Introduction - Eric Feldstein, CEO, GMAC Financials - Bruce Paradis, CEO, ResCap Residential Finance Group - Jim Jones, President, RFG Capital Markets - Luke Hayden, EVP, Capital Markets International Business Group - Simon Knight, SMD, IBG Business Capital Group - Mike Franta, COO,
Slide 5: Legal Notice
Legal Notice This presentation is not, and is not intended to be, an offer to sell any security or the solicitation of an offer to purchase any security. Securities may only be offered pursuant to a prospectus that meets the requirements of applicable state and federal securities laws or pursuant to
Slide 6: 2007 Investor Forum
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Slide 7: Eric Feldstein, Chairman ResCap, CEO GMAC
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Slide 8: ResCap Net Income
ResCap Net Income 705 Gain from LLC Conversion 2003 2004 2005 2006 East 857 968 1021 182
Slide 9: Major Topics
Major Topics i. Subprime market weighed heavily on ResCap Q4 results ii. ResCap continues to face challenges in the difficult U.S. mortgage market Franchise remains fundamentally healthy Strategic plans in place to restore ResCap's profitability Liquidity and funding position remain strong
Slide 10: Earnings Impact
Earnings Impact ResCap 4Q06 losses were primarily confined to areas with subprime exposure Incremental provisioning in the HFI portfolio increased due to increases anticipated in default and severity of loss Downward mark-to-market adjustments in the HFS portfolio Higher reserves against Warehouse l
Slide 11: Market Position
Market Position ResCap maintains a top 10 market share position in originations and servicing Originations Originations Servicing Servicing Company Volume ($Bn) 2006 Rank Volume ($Bn) 2006 Rank Countrywide $462.5 1 $1298.4 2 Wells Fargo 397.6 2 1341.9 1 WaMu 195.7 3 711.0 3 CitiMortgage 183.5 4 521.
Slide 12: ResCap Liquidity - Strategic Advantage
ResCap Liquidity - Strategic Advantage ResCap's year-end 2006 cash position of $2.0 billion and equity balance of $7.6 billion provides competitive advantage and enables the company to: Comfortably meet all debt obligations Retain certain assets during periods of severe market illiquidity Take advan
Slide 13: Outlook Summary
Outlook Summary The unfavorable market conditions which prevailed in Q406 continue to persist Pressure on income related to nonprime assets likely to abate as new strategic initiatives are implemented Sharply reduced nonprime origination volume through tighter underwriting criteria and pricing chang
Slide 14: 2007 Investor Forum
4 ot 0.05% eet: Bos MBG caon A OS SSE 788 4 02, 1 2007 INGESTDR FORUM “Rei IDI. af v0.1 767,89.0.04: ote “76788 061 700.33 1:34 & AMSG 1.83 a 0.23% esses 60 -4.89 ¥ 0.16% 908% «4112.44 -0.73 ¥ 0.05% URE A OAD 2443.83.29 — 6 gq 1 OAT% 795:63 we gr S 02th 2416.60 “6.09 Y 05% 767.89 Bes te!
Slide 15: Bruce Paradis, CEO ResCap
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Slide 16: Company Structure
Company Structure ResCap continues to combine the operations of GMAC Residential and the Residential Capital Group into the U.S. Residential Finance Group (RFG) Continue to capitalize on opportunities to better utilize competitive advantages of each segment (all products - all channels)
Slide 17: Deterioration In The Subprime Market
Deterioration In The Subprime Market Cyclical downturn in the subprime mortgage business occurred very rapidly following one of the industry's strongest historical periods of performance from 2001 to 2005 ResCap did not move quickly enough to reduce exposure in the face of this downturn ResCap leane
Slide 18: ResCap Fourth Quarter Financial Data
ResCap Fourth Quarter Financial Data Twelve Months Ended Twelve Months Ended Twelve Months Ended Twelve Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended Dec 31 Dec 31 Dec 31 Dec 31 ($ millions) 2006 2005 %^ 2006 2005 %^ Net Revenue (Before Provision) $4,357 $4
Slide 19: Residential Finance Group Loan Production and Operating Income
Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Prime 25.241 29.454 27.941 29.74 36.853 28.654 26.972 34.269 35.455 34.317 Nonprime 7.368 5.886 5.616 8.321 9.884 12.053 9.096 6.06 8.467 6.932 RFG Operating Income 168.765 176.98 231 190.331 212.315 69.628 115 200.119 42.742 -675.051 Resid
Slide 20: Business Capital Group Assets and Net Income
2003 2004 2005 2006 Residential Construction 1.28 1.97 2.55 3.05 Residential Equity 0.22 0.29 0.31 0.39 Model Home Finance 0.85 1.11 1.43 2.09 Health Capital 0.34 0.4 0.59 0.77 Resort Finance 0.36 0.67 0.68 1.14 BCG Net Income 62 148 201 399 Assets ($ billions) Net Income ($ millions) Business Capit
Slide 21: Operating Strategy Summary
Operating Strategy Summary Continue to improve capital and liquidity position Maximize contribution from IBG and BCG Continue to strengthen our core RFG Business Tighter underwriting criteria Reduce operating expenses Strategically manage the existing HFI portfolio Rigorous collateral analysis and l
Slide 22: 2007 Investor Forum
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Slide 23: Jim Jones, President RFG
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Slide 24: 2007 Investor Forum
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Slide 25: Residential Finance Group Overview
Residential Finance Group Business Lending Consumer Services Asset Management Residuals Loan Servicing Captive Reinsurance Principal Investment Activities Institutional Broker Correspondent Warehouse Lending RFG Overview Diversified Revenue Sources Direct ditech Retail Home Services
Slide 26: U.S. Residential Finance Key Business Objectives
U.S. Residential Finance Key Business Objectives Review all business lines and asset classes against return on capital objectives Structural expense reduction and acceleration of RFG integration Diversify earnings with a balanced mix of income through Loan production channels Prime origination Nonpr
Slide 27: RFG Integration
RFG Integration Targeting 2007 completion Predominantly a non-agency mortgage producer - full product spectrum which includes prime, nonprime, and prime-second lien Focus is on origination through correspondents and mortgage brokers Consistent top-10 issuer of private label MBS over the past two dec
Slide 28: Risk Management - Increased Focus And Investment
Risk Management - Increased Focus And Investment Risk Management Practices Balancing our asset mix and fee income to create stable earnings through various rate cycles Invest in best in class credit and interest rate risk models to generate returns on capital that exceed market averages Invest in st
Slide 29: U.S. Servicing Portfolio
U.S. Servicing Portfolio U.S. loan servicing portfolio is comprised predominantly of prime quality mortgages 1) Excludes loans for which we acted as a subservicer that totaled an unpaid principal balance of $55.4 billion as of 12/31/2006 12/31/03 12/31/04 12/31/05 9/30/06 12/31/2006 Prime Conforming
Slide 30: Warehouse Lending Receivables
Warehouse Lending Receivables Total: $8,805 2002 2003 Fixed Income 27 73 27% Nonprime Loan Risk Relative nonprime loan exposure varies on balance sheet as does its risk Loan Servicing Portfolio Total: $448,601 Nonprime Prime ($ millions, USD) 2002 2003 Fixed Income 17 83 17% Held For Investment Tota
Slide 31: HFI Nonprime Portfolio
HFI Nonprime Portfolio Pre 2002 2002 2003 2004 2005 2006 500969198 1201650361 5583195560 7617608432 17057789749 15734843737 Nonprime Portfolio Vintage1 $47.7 billion as of 12/31/06 Lifetime Loss Statistics for ResCap HFI Portfolio 1) Excludes $4.6B of acquired distress loans and other assets 0.0% 3.
Slide 32: HFI Portfolio - 4Q 2006
HFI Portfolio - 4Q 2006 Management made significant increases to the allowance for loan loss based on observed changes in the U.S. housing market Calibrated model to reflect current severity trends Increased anticipated severity based on HPA trends Increased the roll to loss rates to reflect more re
Slide 33: Domestic Securitization Financial Exposure
Mortgage loans held for investment $52,046 Allowance for loan losses (1,403) Other assets - Foreclosed assets 625 Other assets - Interest receivable and deal costs 218 Total Assets Related To Domestic Securitizations 51,486 Collateralized borrowings under securitization trusts 49,666 Other liabiliti
Slide 34: Alt-A Production Highlights
Alt-A Production Highlights Alt-A production generally meets the following guidelines Mortgage history No late payments past 30 days within the past 12 months No late payments past 60 days within the last 24 months Bankruptcy None in the past 3 years Major adverse credit None reported in the last 24
Slide 35: Alt-A Production Highlights
Alt-A Production Highlights In 2006 Alt-A production was $21.8 billion HFS Portfolio Alt-A loans represent $2.8 billion as of 12/31/2006 Loans are reflected in the "prime, non-confirming" category of the HFS portfolio HFI Portfolio Alt-A loans represent approximately $1.5 billion as of 12/31/2006 Lo
Slide 36: Warehouse Lending - Actions Taken
Warehouse Lending - Actions Taken ResCap comprehensive monitoring of nonprime collateral supporting Warehouse advances Engaged outside resources to supplement our internal resources Performed independent valuation of collateral supporting loans More rigorous monitoring of the quality and value of co
Slide 37: Held For Sale Portfolio Early Payment Defaults
Held For Sale Portfolio Early Payment Defaults (EPDs) EPDs increased dramatically and pools of impaired assets were created Delinquent Loans Investors kicked-out all delinquent loans High Risk Loans Investors are rejecting current (performing) loans with layered risk and other risky features Several
Slide 38: ARM Resets Strategic Focus
ARM Resets Strategic Focus Campaigns targeted at borrowers with pending ARM resets Focus on early and frequent contact Educational workshops conducted in HOPE cities High volume of ARM resets forecasted for 4Q 2007 On average, payments forecasted to increase by over 30% towards the end of 2007
Slide 39: Loss Mitigation
Loss Mitigation Servicing applies a decision waterfall to offer the best options based on borrower capacity and willingness, market condition, and severity of loss Portfolios are assigned by region, which allows associates to leverage local market intelligence Campaigns are targeted at borrowers wit
Slide 40: 2007 Outlook
2007 Outlook Healthy prime operations Origination Servicing Bank investment portfolio Subprime problems being resolved Made required credit and pricing changes Increased monitoring vigilance Revised investment exposure limits Pursuing reductions in operating costs Investing in incremental risk manag
Slide 41: 2007 Investor Forum
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Slide 42: Luke Hayden, EVP Capital Markets
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Slide 43: Capital Markets Business Model
Capital Markets Business Model Vertically integrated business model Multiple origination channels Correspondent, broker, retail originations Diversified mortgage products Prime to nonprime, newly originated to seasoned, performing and non-performing Broad distribution capabilities to meet investor n
Slide 44: U.S. Residential Finance Group Issuance
Issuance by Year ($ In Billions) Cumulative Issuance ($ billions) U.S. Residential Finance Group (RFG) Issuance 1,2,3 as of December 31, 2006 1) Does not include NIMS, resecuritizations, private issuance or whole loan sales. 2) Source: www.gmacrfc.com and www.gmacmbond.com. 3) GMAC-RFC began issuing
Slide 45: Securitization And Investment Strategies
Securitization And Investment Strategies Diversified sources of funding Flexibility in our approach to distribution of product and management of our balance sheet Risk / reward structuring decisions are based on a return on economic capital (ROEC) perspective We invest in less liquid assets and piec
Slide 46: Held For Sale Portfolio Early Payment Defaults
Held For Sale Portfolio Early Payment Defaults (EPDs) EPDs increased dramatically and pools of impaired assets were created Delinquent Loans Investors kicked-out all delinquent loans High Risk Loans Investors are rejecting current (performing) loans with layered risk and other risky features Several
Slide 47: MBS/ABS Spreads
MBS/ABS Spreads Source: Bear Stearns
Slide 48: Actions Taken
Actions Taken Identified loans responsible for early payment default Stratified production by risk parameters. Eliminated combination of parameters yielding high risk loans Underwriting policy Eliminated high combined loan to values with stated income documentation Pricing strategies Pricing to disc
Slide 49: Underwriting Changes
Underwriting Changes We have stopped originating the types of assets that resulted in 74% of 2006 nonprime EPDs Underwriting Changes = 12% of RFG Production 74% of nonprime EPDs identified and eliminated Total Nonprime Volume 1/06 - 9/06 HLTV/CLTV Stated/No Doc HLTV/CLTV Full Doc Other Layered Risk
Slide 50: Problem Loan Triage
Problem Loan Triage Loan attributes of 2006 delinquencies 2006 Subprime Current versus 60+ Delinquent Borrower Comparison as of 12/31/06 Volume Pct FICO LTV CLTV WAC 2nd Lien Purchase Reduced Doc Piggy Back CLTV>95 Current 100.00% 623 81 89 8.51 5.0% 41.9% 37.6% 29.2% 41.8% 60+ Delinquent 100.00% 61
Slide 51: Problem Loan Triage
Problem Loan Triage 2006 Subprime Full Doc Reduced Doc Grand Total <=95 CLTV >95 CLTV <=95 CLTV >95 CLTV % of Volume 37.5% 23.9% 19.7% 18.8% 100.0% Weighted Average Seller FICO 598 632 624 660 623 Weighted Average CLTV 82 100 82 100 90 2006 Subprime 90+ Delinquent 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0
Slide 52: Eliminated Volume vs Remaining Volume: 2006 Subprime
Eliminated Volume Remaining Volume: 72006 Total Purchase Balance 13043,333,131 $9,345,400,874 922,388,734, 005 56 of Volume 58% 42% 100% Weighted Average FICO e27 617 623 Weighted Average LTV 82 79 a Weighted average CLTV 96 80 0 Reduced Income Doc % 42% 33%, 39%, IEPD Loan Count 5,083 1,426 6509 EP
Slide 53: Subprime Credit Tightening - Performance Impact
Subprime Credit Tightening - Performance Impact Subprime 2006 Vintage 90 + Delinquency 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 1 2 3 4 5 6 7 8 9 10 Loan Age % of Original Balance Remaining Eliminated 2006 Total
Slide 54: Eliminated Volume vs Remaining Volume: 2006 Alt-A
2006 ILA Eliminated Volume Remaining Volume | 2006 Total Purchase Balance 4,304,573,053 917,644,099,641 | §22,038,622,693 56 of Volume 20% 80% 100,00% Weighted Average FICO 704 112 7™10 Weighted Average LTV 80 74 5 Weighted Average CLTV 100 80 84 Reduced Income Doc % 1% 13% 76% EPD Loan Count 348 46
Slide 55: Alt-A Credit Tightening - Performance Impact
Alt-A Credit Tightening - Performance Impact Excludes GMAC Residential Alt-A 2006 Vintage 90+ Delinquency 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 1 2 3 4 5 6 7 8 9 10 Loan Age % of Original Balance Remaining Eliminated 2006 Total
Slide 56: Eliminated Volume vs Remaining Volume: 2006 Second Liens
2006 Second Liens. Eliminated Volume Remi 2006 Total Purchase Balance $3,050,214,201 $5,707,140,954 | §8,757,361,156 5% of Volume 36% 65% 10.00% Weighted Average FICO 685 m9 707 Weighted Average LTV NA NA NA Weighted Average CLTV 94 90 a Reduced Income Doc % 87% 43% 57% EPD Loan Count 692 402 7,094
Slide 57: Seconds Credit Tightening - Performance Impact
Seconds Credit Tightening - Performance Impact Excludes GMAC Residential Second Lien 2006 Vintage 90+ Delinquency 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 1 2 3 4 5 6 7 8 9 10 Loan Age % of Original Balance Remaining Eliminated 2006 Total
Slide 58: MBS / ABS Issuance Volume
MBS / ABS Issuance Volume Year-to-date issuance as of February 28. Prime includes Agency, public and private Non-Agency (RFMSI, RALI, RFMSII & GMACM). Non-Prime includes public and private Non-Agency (RAMP RS, RAMP RZ, RASC, RAAC). Single seller deals for EFC and NC are included in RAMP RS and EMX d
Slide 59: 2007 Investor Forum
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Slide 60: Bruce Paradis, CEO ResCap
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Slide 61: Company Structure
Company Structure
Slide 62: 2007 Investor Forum
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Slide 63: Simon Knight, International Business Group
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Slide 64: International Business Group
International Business Group Business model is to export domestic core competencies and operate with strong local partners First international expansion began in 1998 (Mexico and U.K.) Current operations in the U.K., The Netherlands, Germany, Canada, Mexico, and Australia Growing construction and wa
Slide 65: International Business Growth And Diversification
International Business Growth And Diversification International loan production continues to expand across multiple markets Top 10 originator in the United Kingdom (U.K.) and The Netherlands Well established Continental European (C.E.) lending platforms in The Netherlands and Germany Initiated opera
Slide 66: Loan Volume Turn Rate Trends
Loan Volume Turn Rate Trends 1) Excludes commercial lending activities 1 IBG Total Loan Production vs. Total Volume Sold 8.0 14.0 16.5 27.8 5.2 12.6 12.4 25.6 - - 5.0 10.0 15.0 20.0 25.0 30.0 2003 2004 2005 2006 $ billions Total IBG Loan Production Total IBG Volume Sold
Slide 67: U.K. Residuals - Created, Traded and Retained
U.K. Residuals - Created, Traded and Retained
Slide 68: Revenue By Country
Revenue By Country ResCap is diversifying revenues across markets 1) Figures do not include IBG administration IBG Net Revenue by Country1 U.K. & Ireland
Slide 69: Where Is ResCap Internationally?
Where Is ResCap Internationally? Russia Canada China Brazil United States India Mexico Sweden Egypt Chile Turkey South Africa Poland Italy Germany Thailand Japan United Kingdom Greece South Korea Netherlands Czech Rep. Hungary Argentina Switzerland Taiwan Spain France Russia Canada China Brazil Unit
Slide 70: United Kingdom Overview
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 Now one of Europe's largest securitizers of new business First major U.K. lender to make whole loan trading an active business strategy - now
Slide 71: U.K. Fundamentals
U.K. Fundamentals 2007 House price inflation forecast of 7% Mortgage market $710 billion (B / C $60 billion) Active secondary market but most lenders originate own assets Minimal reliance on warehouse lines Brokers and lenders regulated by the Financial Services Authority
Slide 72: United Kingdom (Production And Sales)
United Kingdom (Production And Sales) Whole loan and residual sales mean risk is minimized in spite of growth ResCap Origination, Securitization and Portfolio Sale Volumes Securitized
Slide 73: U.K. And Continental Europe RMBS Issuer Rankings
U.K. And Continental Europe RMBS Issuer Rankings 2006 2005
Slide 74: Continental Europe Overview
Continental Europe Overview Netherlands De novo start up in 2000 with first securitization in 2002 Offers full range of products using risk-based pricing approach Distributes products through multiple channels European securitizations with EMAC program provided enhanced protection to investors Germa
Slide 75: Latin America Overview
Latin America Overview Mexico First private warehouse lender to mortgage banks (Sofoles) Construction lending to Sofoles and large developers First ever Mexican RMBS completed in December 2003 Established whole-loan trading market with first acquisition in 2004 Expanded investor base including inter
Slide 76: New Markets And Near-Term Expectations
New Markets And Near-Term Expectations Australia Purchased a wholesale mortgage manager, Capital First, in 2006 Launched non-conforming products in July 2006 through Capital First Near term expectations Continued diversification Continued growth in new countries and markets Continue creating and tra
Slide 77: 2007 Investor Forum
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Slide 78: Mike Franta, COO Business Capital Group
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Slide 79: Business Capital Group
Business Capital Group Specialty lender in Residential Construction: provides creative and customized debt products for the nation's top homebuilders and land developers Residential Equity: subordinated debt financing for residential construction projects and manufactured housing communities to fina
Slide 80: Business Capital Group
Business Capital Group The Business Capital Group maintains an excellent operating platform with all of its Business Units having similar objectives, strategies and competencies Business to Business Financing: providing debt and equity products to high credit quality entities Niche Focused: focused
Slide 81: Business Capital Group Historical Summary
Business Capital Group Historical Summary ($ millions) 2003 2004 2005 2006 Total Net Revenue $155 $312 $403 $716 Net Income $62 $148 $201 $399 Total Assets $3,045 $4,430 $5,546 $7,477
Slide 82: Business Capital Diverse Assets
Business Capital Diverse Assets The Business Capital Group grew assets to $7.5 billion during 2006 with consistent diversification 12/31/2003 12/31/2004 12/31/2005 12/31/2006 Residential Construction 1.28 1.97 2.55 3.088 Residential Equity 0.22 0.29 0.31 0.387 Model Home Finance 0.85 1.11 1.43 2.094
Slide 83: BCG Sources Of Revenue Diversification
HC MHF REG RC RF 2006 11 15 12 51 11 BCG Sources Of Revenue Diversification HC MHF REG RC RF 2002 3 23 17 57 0 Revenue Mix of $301.7 MM for the year ended 12/31/06 Revenue Mix of $132.1 MM for the year ended 12/31/02 RC = Residential Construction REG = Residential Equity MHF = Model Home Finance HC
Slide 84: BCG Revenue Growth
BCG Revenue Growth A strong focus on customer service has fueled strong revenue growth 12/31/2003 12/31/2004 12/31/2005 12/31/2006 Residential Construction 86 188 226 156 Residential Equity 9 28 41 35 Model Home Finance 47 61 79 46 Health Capital 10 18 24 32 Resort Finance 2 17 34 34 Equity Sale 415
Slide 85: BCG Current Market Environment
BCG Current Market Environment Market conditions within the residential real estate market remain challenging for our customers Housing starts were up 9% in February to a seasonally adjusted 1.5 million Building permits fell by 2.5% in February to a seasonally adjusted 1.5 million but are down 29% f
Slide 86: BCG Credit Risk Management
BCG Credit Risk Management Credit Approval Process Focus on Asset Management Periodic Internal Portfolio Reviews performed at each Business Unit Cumulative losses over 13 years represent 20 basis points of total findings Adequate reserve levels 3% of lending receivables Credits on watch list total $
Slide 87: BCG Managing For A Changing Environment
BCG Managing For A Changing Environment Customer profile - established builders / developers who have weathered past downturns Strong credits Geographic and portfolio diversification Consistently in the market with our customers Seek opportunities
Slide 88: 2007 Investor Forum
4 ot 0.05% eet: Bos MBG caon A OS SSE 788 4 02, 1 2007 INGESTDR FORUM “Rei IDI. af v0.1 767,89.0.04: ote “76788 061 700.33 1:34 & AMSG 1.83 a 0.23% esses 60 -4.89 ¥ 0.16% 908% «4112.44 -0.73 ¥ 0.05% URE A OAD 2443.83.29 — 6 gq 1 OAT% 795:63 we gr S 02th 2416.60 “6.09 Y 05% 767.89 Bes te!
Slide 89: Bill Casey, Treasurer ResCap
nee lai 40.09%. 7'8-60--4.90 SR a ee 8.49 O12 any a0 Seer 783-4094 : Socal. 60-489 V O1R%e SS INVESTOR FORUM ssid ay BS GIMCAE) este... ne $$S85 40.10% - 76786 3 oe 700 Sidi 0.1786 3134 of 883 443 83-5163 & 0.739% ee BILL CASEY TREASURER, RESCAP OARS Dada He 288 goat hte 7416.6 08.89 F 05% vee 001 O
Slide 90: Liquidity
Unsecured Capacity Outstanding Unused Liquidity Portfolio Dom 831 - 831 Liquidity Portfolio Intl 238 - 238 Revolver (364 day) 875 - 875 Revolver (3 year) 875 - 875 Revolver (Canadian 364 day) 353 214 139 Other 3,665 2,842 823 Total Unused Unsecured 3,781 Secured Conduits 69,074 20,893 48,181 MSR 1,3
Slide 91: Future Funding Alternatives And Sources
Future Funding Alternatives And Sources 2007 unsecured debt maturities of only $1.3 billion provide flexibility Our 2007 funding priorities remain unchanged Maintain adequate liquidity Support ratings objective Support segment growth Focus on facility renewal and enhancement Subject to market condit
Slide 92: Funding Diversity
Unsecured Borrowings Bank Term Loan Deposits Secured Borrowings Collateralized Borrowings Off-Balance Sheet Securitizations As of 9/30/06 13750 1750 6258 39974 57184 103046 Funding Diversity Continue to diversify funding sources as ResCap becomes a known presence in the debt markets Increased gain o
Slide 93: Funding Diversity - International
U.K. C.E. Latin America Canada Australia Brazil 10108.075 1407 787.8056 559 13 22 Funding Diversity - International Secured Unsecured 9992.8806 2904 1) All affiliate debt paid off as of May 17, 2006 International Funding by Type as of 12/31/06 International Funding by Country as of 12/31/06 ResCap c
Slide 94: Capital
Capital Capital increased in 2006, resulting in equity at year end of $7.6 billion ($ millions) Q2 2005 Q4 2005 Q4 2006 Capital Level $7,061 $7,464 $7,622 ResCap's risk based capital requirement, as calculated by our current methodology, is $7.6 billion Capital factors are under review to incorporat
Slide 95: Protections to Bondholders
Protections to Bondholders Step-Up provision within bond structure Step up falls away if ResCap is rated Baa2, BBB and BBB by the three rating agencies with a stable or positive outlook Interest Rate Adjustments Interest Rate Adjustments Interest Rate Adjustments Interest Rate Adjustments At any tim