##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549-1004


FORM 10-K


|  |  |                                                                                             
|- |  | --------------------------------------------------------------------------------------------
|þ |  | ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
| 
|  |  | For the fiscal year ended December 31, 2005, or                                             
| 
|o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
| 
|  |  | For the transition period
    from           to          .                                  

Commission file number: 0-51438


RESIDENTIAL CAPITAL


CORPORATION


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                         
|------------------------------------------------------------------ |  | ----------------------------------------
|Delaware                                                           |  | 20-1770738                              
|(State or other jurisdiction of
    incorporation or organization) |  | (I.R.S. Employer
    Identification No.)

8400 Normandale Lake Boulevard


Minneapolis, MN


55437


(Address of principal executive offices)


(Zip Code)


(952) 857-8700


(Registrants telephone number, including area code)


Securities registered pursuant to Section 12(b) of the
Act




Securities registered pursuant to Section 12(g) of the
Act




o þ


þ o


þ o


S-K 10-K 10-K. o


12b-2


o o þ


12b-2 o þ






Reduced Disclosure Format


10-K










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##### 










RESIDENTIAL CAPITAL CORPORATION


INDEX


|                                                                                                      |  |                                                                                           |     |      |     | 
|----------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------- | --- | ---- | --- | 
|                                                                                                      |  |                                                                                           |     | Page |    
|                                                                                                      |  |                                                                                           |     |      |    
|PART I                                                                                               
|Item 1.                                                                                               |  | Business                                                                                  |     |      | 2   | 
|Item 1A.                                                                                              |  | Risk Factors                                                                              |     |      | 33  | 
|Item 1B.                                                                                              |  | Unresolved Staff Comments                                                                 |     |      | 46  | 
|Item 2.                                                                                               |  | Properties                                                                                |     |      | 46  | 
|Item 3.                                                                                               |  | Legal Proceedings                                                                         |     |      | 47  | 
|Item 4.                                                                                               |  | Submission of Matters to a Vote of Security
    Holders                                   |     |      | 48  | 
|                                                                                                     
|PART II                                                                                              
|Item 5.                                                                                               |  | Market for Registrants Common Equity
    and Related Stockholder Matters                 |     |      | 48  | 
|Item 6.                                                                                               |  | Selected Financial Data                                                                   |     |      | 49  | 
|Item 7.                                                                                               |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations |     |      | 50  | 
|Item 7A.                                                                                              |  | Quantitative and Qualitative Disclosures
    About Market Risk                            |     |      | 82  | 
|Item 8.                                                                                               |  | Financial Statements and Supplementary
    Data                                           |     |      | 88  | 
|                                                                                                      |  | Statement of Responsibility for Preparation
    of Financial Statements                   |     |      | 88  | 
|                                                                                                      |  | Managements Report on Internal
    Control over Financial Reporting                      |     |      | 89  | 
|                                                                                                      |  | Report of Independent Registered Public
    Accounting Firm                               |     |      | 91  | 
|                                                                                                      |  | Consolidated Balance Sheet                                                                |     |      | 94  | 
|                                                                                                      |  | Consolidated Statement of Income                                                          |     |      | 95  | 
|                                                                                                      |  | Consolidated Statement of Changes in
    Stockholders Equity                             |     |      | 96  | 
|                                                                                                      |  | Consolidated Statement of Cash Flows                                                      |     |      | 97  | 
|                                                                                                      |  | Notes to Consolidated Financial
    Statements                                            |     |      | 99  | 
|                                                                                                      |  | Supplementary Financial Data                                                              |     |      | 158 | 
|Item 9.                                                                                               |  | Changes in Disagreements With Accountants
    on Accounting and Financial Disclosure      |     |      | 161 | 
|Item 9A.                                                                                              |  | Controls and Procedures                                                                   |     |      | 161 | 
|Item 9B.                                                                                              |  | Other Information                                                                         |     |      | 162 | 
|                                                                                                     
|PART III                                                                                             
|Item 10.                                                                                              |  | Directors and Executive Officers of the
    Registrant                                    |     |      | 162 | 
|Item 11.                                                                                              |  | Executive Compensation                                                                    |     |      | 162 | 
|Item 12.                                                                                              |  | Security Ownership of Certain Beneficial
    Owners and Management                        |     |      | 162 | 
|Item 13.                                                                                              |  | Certain Relationships and Related
    Transactions                                        |     |      | 162 | 
|Item 14.                                                                                              |  | Principal Accountant Fees and Services                                                    |     |      | 162 | 
|                                                                                                     
|PART IV                                                                                              
|Item 15.                                                                                              |  | Exhibits, Financial Statement Schedules                                                   |     |      | 163 | 
|Signatures                                                                                            |  |                                                                                           | 164 |     
|Exhibit Index                                                                                         |  |                                                                                           | 165 |     
|Second Supplemental Indenture                                                                        
|Computation of Ratio of Earnings to Fixed Charges                                                    
|Consent of Independent Registered Public Accounting Firm                                             
|Certification of Principal Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a)                    
|Certification of Principal Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a)                    
|Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 1350





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##### Table of Contents






PART I







|        |          
|------- | ---------
|Item 1. | BUSINESS.



Business Overview






| |   |                                                                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | U.S. Residential Real Estate Finance  We are
    one of the largest participants in the U.S. residential
    real estate finance industry. We operate this business through
    two segments, GMAC Residential and Residential Capital Group.
    Through these segments, we:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Originate, purchase, sell and securitize residential mortgage
    loans throughout the United States. We are the sixth largest
    producer of residential mortgage loans in the United States (as
    ranked by Inside Mortgage Finance), producing
    approximately $159 billion in residential mortgage loans in
    2005, and the fifth largest non-agency issuer of mortgage-backed
    and mortgage-related asset-backed securities in the United
    States.
|
| |  | Provide primary and master servicing to investors in our
    residential mortgage loans and securitizations. As of
    December 31, 2005, we were the sixth largest servicer of
    residential mortgage loans in the United States (as ranked by
    Inside Mortgage Finance), with a primary servicing
    portfolio of approximately $355 billion.                                                                                                               
|
| |  | Provide collateralized lines of credit, which we refer to as
    warehouse lending facilities, to other originators of
    residential mortgage loans. As of December 31, 2005, we
    believe we were the largest provider of such facilities in the
    United States.                                                                                                                                                                                            
|
| |  | Hold a portfolio of residential mortgage loans for investment
    and retained interests from our securitization activities. This
    portfolio included approximately $69.2 billion in mortgage
    loans and retained interests as of December 31, 2005.                                                                                                                                                                                                          
|
| |  | Conduct limited banking activities through our federally
    chartered savings bank, GMAC Bank.                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | Provide real estate closing services.                                                                                                                                                                                                                                                                                                                                                                                                                               



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Business Capital  Through our Business Capital
    Group, we provide financing and equity capital to residential
    land developers and homebuilders. We also provide financing to
    resort developers and healthcare-related enterprises.                                                                                                                                                                                                                                                                         
|
| |  | International  Through our International
    Business Group, we originate, purchase, sell and securitize
    residential mortgage loans in the United Kingdom, The
    Netherlands, Germany, Canada and Mexico. We also extend credit
    to companies involved in residential real estate development in
    Mexico and provide warehouse lending facilities to Mexican
    mortgage originators. We believe that we are the largest
    originator of nonprime residential mortgage loans in the United
    Kingdom,

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| |  |                                                                                                                                                                                                                                                                                         
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | originating approximately $4.6 billion of such loans in
    2005. We produced approximately $17 billion in residential
    mortgage loans outside the United States in 2005 and we had a
    servicing portfolio of approximately $24 billion of such
    loans as of December 31, 2005.



857-8700.




www.rescapholdings.com


Our Business




| |                                     
| | ------------------------------------
| | U.S. Residential Real Estate Finance







| |   |                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Originating, purchasing, selling and securitizing residential
    mortgage loans;                                                                
|
| |  | Servicing residential mortgage loans for ourselves and others;                                                                                   
|
| |  | Providing warehouse financing to residential mortgage loan
    originators and correspondent lenders to originate residential
    mortgage loans;
|
| |  | Creating a portfolio of mortgage loans and retained interests
    from our securitization activities;                                            
|
| |  | Conducting limited banking activities through GMAC Bank; and                                                                                     
|
| |  | Providing real estate closing services.                                                                                                          

Loan
Origination and Acquisition




| |                           
| | --------------------------
| | Sources of Loan Production



3



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| |                       
| | ----------------------
| | Direct Lending Network

face-to






| |   |                                                                                    
| | - | -----------------------------------------------------------------------------------
| |  | GMAC Mortgage, focusing on retail, telephone and internet
    lending services; and
|
| |  | ditech.com®,
    focusing on telephone and internet lending services.              





| |                           
| | --------------------------
| | Mortgage Brokerage Network









| |                                                          
| | ---------------------------------------------------------
| | Correspondent Lender and other Secondary Market Purchases





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Summary of Production Channels




|                                                    |                       |                                          |         |         |           |   |        |         |        |  |           |         |  |        |        |         |           |  |         |           |  |   |        |         | 
|--------------------------------------------------- | --------------------- | ---------------------------------------- | ------- | ------- | --------- | - | ------ | ------- | ------ |  | --------- | ------- |  | ------ | ------ | ------- | --------- |  | ------- | --------- |  | - | ------ | ------- | 
|                                                    |                       | U.S. Mortgage Loan Production by Channel |        
|                                                    |                       |                                          |        
|                                                    |                       | For the Year Ended December 31,          |        
|                                                    |                       |                                          |        
|                                                    |                       | 2005                                     |         |         | 2004      |   |        | 2003    |       
|                                                    |                       |                                          |         |         |           |   |        |         |       
|                                                    |                       |                                          |         | Dollar  |           |   |        |         | Dollar |  |           |         |  | Dollar |       
|                                                    |                       | No. of                                   |         |         | Amount of |   |        | No. of  |        |  | Amount of |         |  | No. of |        |         | Amount of | 
|                                                    |                       | Loans                                    |         |         | Loans     |   |        | Loans   |        |  | Loans     |         |  | Loans  |        |         | Loans     | 
|                                                    |                       |                                          |         |         |           |   |        |         |        |  |           |         |  |        |        |         |           | 
|                                                    |                       | (Dollars in millions)                    |        
|Retail branches                                     |                       |                                          | 126,527 |         |           | $ | 19,097 |         |        |  | 134,160   |         |  | $      | 18,012 |         |           |  | 249,478 |           |  | $ | 28,881 |        
|Direct lending (other than retail branches)         |                       |                                          | 161,746 |         |           |   | 17,228 |         |        |  | 148,343   |         |  |        | 16,209 |         |           |  | 232,792 |           |  |   | 31,411 |        
|Mortgage brokers                                    |                       |                                          | 134,263 |         |           |   | 22,961 |         |        |  | 111,571   |         |  |        | 16,302 |         |           |  | 143,353 |           |  |   | 21,522 |        
|Correspondent lender and secondary market purchases |                       |                                          | 552,624 |         |           |   | 99,776 |         |        |  | 533,459   |         |  |        | 82,504 |         |           |  | 586,561 |           |  |   | 89,406 |        
|                                                    |                       |                                          |         |         |           |   |        |         |        |  |           |         |  |        |        |         |           | 
|                                                    | Total U.S. production |                                          |         | 975,160 |           |   | $      | 159,062 |        |  |           | 927,533 |  |        | $      | 133,027 |           |  |         | 1,212,184 |  |   | $      | 171,220 | 
|                                                    |                       |                                          |         |         |           |   |        |         |        |  |           |         |  |        |        |         |           | 

Types of Mortgage Loans






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Prime Conforming Mortgage Loans  These are prime
    credit quality first-lien mortgage loans secured by
    single-family residences that meet or conform to the
    underwriting standards established by Fannie Mae or Freddie Mac
    for inclusion in their guaranteed mortgage securities programs.                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | Prime Non-Conforming Mortgage Loans  These are prime
    credit quality first-lien mortgage loans secured by
    single-family residences that either (1) do not conform to
    the underwriting standards established by Fannie Mae or Freddie
    Mac, because they have original principal amounts exceeding
    Fannie Mae and Freddie Mac limits ($333,700 in 2004, $359,650 in
    2005 and $417,000 in 2006), which are commonly referred to as
    jumbo mortgage loans, or (2) have alternative documentation
    requirements and property or credit-related features (e.g.,
    higher loan-to-value or
    debt-to-income ratios)
    but are otherwise considered prime credit quality due to other
    compensating factors.
|
| |  | Government Mortgage Loans  These are first-lien
    mortgage loans secured by single-family residences that are
    insured by the Federal Housing Administration or guaranteed by
    the Veterans Administration.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | Nonprime Mortgage Loans  These are first-lien and
    certain junior lien mortgage loans secured by single-family
    residences, made to individuals with credit profiles that do not
    qualify for a prime loan, have credit-related features that fall
    outside the parameters of traditional prime mortgage products or
    have performance characteristics that otherwise expose us to
    comparatively higher risk of loss.                                                                                                                                                                                                                                                                                                  
|
| |  | Prime Second-Lien Mortgage Loans  These are open- and
    closed-end mortgage loans secured by a second or more junior
    lien on single-family residences, which include home equity
    mortgage loans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

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|                     |                       |                                       |         |         |           |   |        |         |        |  |           |         |  |        |        |         |           |  |         |           |  |   |        |         | 
|-------------------- | --------------------- | ------------------------------------- | ------- | ------- | --------- | - | ------ | ------- | ------ |  | --------- | ------- |  | ------ | ------ | ------- | --------- |  | ------- | --------- |  | - | ------ | ------- | 
|                     |                       | U.S. Mortgage Loan Production by Type |        
|                     |                       |                                       |        
|                     |                       | For the Year Ended December 31,       |        
|                     |                       |                                       |        
|                     |                       | 2005                                  |         |         | 2004      |   |        | 2003    |       
|                     |                       |                                       |         |         |           |   |        |         |       
|                     |                       |                                       |         | Dollar  |           |   |        |         | Dollar |  |           |         |  | Dollar |       
|                     |                       | No. of                                |         |         | Amount of |   |        | No. of  |        |  | Amount of |         |  | No. of |        |         | Amount of | 
|                     |                       | Loans                                 |         |         | Loans     |   |        | Loans   |        |  | Loans     |         |  | Loans  |        |         | Loans     | 
|                     |                       |                                       |         |         |           |   |        |         |        |  |           |         |  |        |        |         |           | 
|                     |                       | (Dollars in millions)                 |        
|Prime conforming     |                       |                                       | 275,351 |         |           | $ | 50,047 |         |        |  | 276,129   |         |  | $      | 45,593 |         |           |  | 557,618 |           |  | $ | 89,259 |        
|Prime non-conforming |                       |                                       | 192,914 |         |           |   | 55,811 |         |        |  | 163,260   |         |  |        | 43,473 |         |           |  | 139,759 |           |  |   | 38,093 |        
|Government           |                       |                                       | 31,164  |         |           |   | 4,251  |         |        |  | 40,062    |         |  |        | 4,834  |         |           |  | 49,988  |           |  |   | 4,929  |        
|Nonprime             |                       |                                       | 226,317 |         |           |   | 35,874 |         |        |  | 217,344   |         |  |        | 27,880 |         |           |  | 239,142 |           |  |   | 29,763 |        
|Prime second-lien    |                       |                                       | 249,414 |         |           |   | 13,079 |         |        |  | 230,738   |         |  |        | 11,247 |         |           |  | 225,677 |           |  |   | 9,176  |        
|                     |                       |                                       |         |         |           |   |        |         |        |  |           |         |  |        |        |         |           | 
|                     | Total U.S. production |                                       |         | 975,160 |           |   | $      | 159,062 |        |  |           | 927,533 |  |        | $      | 133,027 |           |  |         | 1,212,184 |  |   | $      | 171,220 | 
|                     |                       |                                       |         |         |           |   |        |         |        |  |           |         |  |        |        |         |           | 



|                    |                 |                                 |         |        |      |   |         |        |  |   |         |         | 
|------------------- | --------------- | ------------------------------- | ------- | ------ | ---- | - | ------- | ------ |  | - | ------- | ------- | 
|                    |                 | For the Year Ended December 31, |        
|                    |                 |                                 |        
|                    |                 | 2005                            |         |        | 2004 |   |         | 2003   | 
|                    |                 |                                 |         |        |      |   |         |        | 
|                    |                 | (In millions)                   |        
|Purpose:            |                 |                                 |         |        |      |   |         |        |  |   |         |        
|                    | Purchase        |                                 | $       | 64,164 |      |   | $       | 49,985 |  |   | $       | 38,000  | 
|                    | Non-purchase    |                                 |         | 94,898 |      |   |         | 83,042 |  |   |         | 133,220 | 
|                    |                 |                                 |         |        |      |   |         |        | 
|                    |                 | $                               | 159,062 |        |      | $ | 133,027 |        |  | $ | 171,220 |        
|                    |                 |                                 |         |        |      |   |         |        | 
|Interest rate type: |                 |                                 |         |        |      |   |         |        |  |   |         |        
|                    | Fixed rate      |                                 | $       | 79,863 |      |   | $       | 72,390 |  |   | $       | 142,816 | 
|                    | Adjustable rate |                                 |         | 79,199 |      |   |         | 60,637 |  |   |         | 28,404  | 
|                    |                 |                                 |         |        |      |   |         |        | 
|                    |                 | $                               | 159,062 |        |      | $ | 133,027 |        |  | $ | 171,220 |        
|                    |                 |                                 |         |        |      |   |         |        | 



| |                                           
| | ------------------------------------------
| | Underwriting Standards and Quality Control





| |   |                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------
| |  | the borrowers capacity to repay the loan;                                                                  
|
| |  | the borrowers credit history;                                                                              
|
| |  | the relative size and characteristics of the proposed
    loan; and                                         
|
| |  | the amount of equity in the borrowers property (as
    measured by the borrowers
    loan-to-value ratio).





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Sale
and Securitization Activities












7



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##### Table of Contents







Servicing
Activities






8



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|                                    |                                    |                                        |           |           |           |   |         |         |        |  |           |           |  |        |         |         |           |  |           |           |  |   |         |         | 
|----------------------------------- | ---------------------------------- | -------------------------------------- | --------- | --------- | --------- | - | ------- | ------- | ------ |  | --------- | --------- |  | ------ | ------- | ------- | --------- |  | --------- | --------- |  | - | ------- | ------- | 
|                                    |                                    | U.S. Mortgage Loan Servicing Portfolio |          
|                                    |                                    |                                        |          
|                                    |                                    | As of December 31,                     |          
|                                    |                                    |                                        |          
|                                    |                                    | 2005                                   |           |           | 2004      |   |         | 2003    |       
|                                    |                                    |                                        |           |           |           |   |         |         |       
|                                    |                                    |                                        |           | Dollar    |           |   |         |         | Dollar |  |           |           |  | Dollar |        
|                                    |                                    | No. of                                 |           |           | Amount of |   |         | No. of  |        |  | Amount of |           |  | No. of |         |         | Amount of | 
|                                    |                                    | Loans                                  |           |           | Loans     |   |         | Loans   |        |  | Loans     |           |  | Loans  |         |         | Loans     | 
|                                    |                                    |                                        |           |           |           |   |         |         |        |  |           |           |  |        |         |         |           | 
|                                    |                                    | (Dollars in millions)                  |          
|Prime conforming mortgage loans     |                                    |                                        | 1,393,379 |           |           | $ | 186,405 |         |        |  | 1,323,918 |           |  | $      | 165,577 |         |           |  | 1,309,295 |           |  | $ | 153,693 |        
|Prime non-conforming mortgage loans |                                    |                                        | 257,550   |           |           |   | 76,980  |         |        |  | 203,822   |           |  |        | 55,585  |         |           |  | 178,334   |           |  |   | 43,951  |        
|Government mortgage loans           |                                    |                                        | 181,679   |           |           |   | 18,098  |         |        |  | 191,844   |           |  |        | 18,328  |         |           |  | 191,023   |           |  |   | 17,594  |        
|Nonprime mortgage loans             |                                    |                                        | 493,486   |           |           |   | 56,373  |         |        |  | 505,929   |           |  |        | 51,139  |         |           |  | 486,634   |           |  |   | 45,747  |        
|Prime second-lien mortgage loans    |                                    |                                        | 500,534   |           |           |   | 17,073  |         |        |  | 445,396   |           |  |        | 13,718  |         |           |  | 358,761   |           |  |   | 9,522   |        
|                                    |                                    |                                        |           |           |           |   |         |         |        |  |           |           |  |        |         |         |           | 
|                                    | Total primary servicing portfolio* |                                        |           | 2,826,628 |           |   | $       | 354,929 |        |  |           | 2,670,909 |  |        | $       | 304,347 |           |  |           | 2,524,047 |  |   | $       | 270,507 | 
|                                    |                                    |                                        |           |           |           |   |         |         |        |  |           |           |  |        |         |         |           | 






|  |                                                                                                                                                                                                                                                                                                                                                 
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Excludes loans for which we acted as a subservicer. Subserviced
    loans totaled 271,489 with an unpaid principal balance of
    $38.9 billion as of December 31, 2005, 99,082 with an
    unpaid principal balance of $13.9 billion as of
    December 31, 2004 and 95,952 with an unpaid balance of
    $9.0 billion as of December 31, 2003.

9



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|                                        |                 |                                                    |           |        |           |   |         |        |        |  |           |        |  |        |         |       |           |  |           |        |  |   |         |       | 
|--------------------------------------- | --------------- | -------------------------------------------------- | --------- | ------ | --------- | - | ------- | ------ | ------ |  | --------- | ------ |  | ------ | ------- | ----- | --------- |  | --------- | ------ |  | - | ------- | ----- | 
|                                        |                 | U.S. Mortgage Loan Servicing Portfolio Delinquency |          
|                                        |                 |                                                    |          
|                                        |                 | For the Year Ended December 31,                    |          
|                                        |                 |                                                    |          
|                                        |                 | 2005                                               |           |        | 2004      |   |         | 2003   |       
|                                        |                 |                                                    |           |        |           |   |         |        |       
|                                        |                 |                                                    |           | Dollar |           |   |         |        | Dollar |  |           |        |  | Dollar |        
|                                        |                 | No. of                                             |           |        | Amount of |   |         | No. of |        |  | Amount of |        |  | No. of |         |       | Amount of | 
|                                        |                 | Loans                                              |           |        | Loans     |   |         | Loans  |        |  | Loans     |        |  | Loans  |         |       | Loans     | 
|                                        |                 |                                                    |           |        |           |   |         |        |        |  |           |        |  |        |         |       |           | 
|                                        |                 | (Dollars in millions)                              |          
|Total U.S. mortgage loans serviced      |                 |                                                    | 2,826,628 |        |           | $ | 354,929 |        |        |  | 2,670,909 |        |  | $      | 304,347 |       |           |  | 2,524,047 |        |  | $ | 270,507 |      
|                                        |                 |                                                    |           |        |           |   |         |        |        |  |           |        |  |        |         |       |           | 
|Period of delinquency(1)(2)             |                 |                                                    |           |        |           |   |         |        |        |  |           |        |  |        |         |       |           |  |           |        |  |   |         |      
|                                        | 30 to 59 days   |                                                    |           | 80,431 |           |   | $       | 9,559  |        |  |           | 74,344 |  |        | $       | 8,021 |           |  |           | 74,813 |  |   | $       | 7,736 | 
|                                        | 60 to 89 days   |                                                    |           | 25,052 |           |   |         | 2,703  |        |  |           | 21,627 |  |        |         | 2,066 |           |  |           | 21,479 |  |   |         | 2,156 | 
|                                        | 90 days or more |                                                    |           | 36,973 |           |   |         | 3,367  |        |  |           | 26,495 |  |        |         | 2,376 |           |  |           | 24,160 |  |   |         | 2,119 | 
|Foreclosures pending                    |                 |                                                    | 31,925    |        |           |   | 3,370   |        |        |  | 37,712    |        |  |        | 3,458   |       |           |  | 32,624    |        |  |   | 3,383   |      
|                                        |                 |                                                    |           |        |           |   |         |        |        |  |           |        |  |        |         |       |           | 
|Total delinquent loans                  |                 |                                                    | 174,381   |        |           | $ | 18,999  |        |        |  | 160,178   |        |  | $      | 15,921  |       |           |  | 153,076   |        |  | $ | 15,394  |      
|                                        |                 |                                                    |           |        |           |   |         |        |        |  |           |        |  |        |         |       |           | 
|Percent of U.S. mortgage loans serviced |                 |                                                    | 6.17      | %      |           |   | 5.35    | %      |        |  | 6.00      | %      |  |        | 5.23    | %     |           |  | 6.06      | %      |  |   | 5.69    | %    






|    |                                                                                                                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | As used in this discussion, prime credit quality loans and some
    of our other mortgage loans are considered to be 30 or more days
    delinquent when a payment due remains unpaid as of the close of
    business on the last business day immediately prior to the next
    following monthly due date.
|   
|(2) | Does not include foreclosures pending.                                                                                                                                                                                                                                                                      



Warehouse
Lending








10



---



##### Table of Contents



Mortgage
Loans Held for Investment and Retained Interests










Other
Related Real Estate Finance Activities






11



---



##### Table of Contents











Our
U.S. Residential Real Estate Finance Operating Segments






| |                 
| | ----------------
| | GMAC Residential







| |                           
| | --------------------------
| | Sources of Loan Production



12



---



##### Table of Contents





|                                            |                                |                                                         |         |         |           |   |        |        |        |  |           |         |  |        |        |        |           |  |         |         |  |   |        |         | 
|------------------------------------------- | ------------------------------ | ------------------------------------------------------- | ------- | ------- | --------- | - | ------ | ------ | ------ |  | --------- | ------- |  | ------ | ------ | ------ | --------- |  | ------- | ------- |  | - | ------ | ------- | 
|                                            |                                | GMAC Residential Mortgage Loan Production by Channel(1) |        
|                                            |                                |                                                         |        
|                                            |                                | For the Year Ended December 31,                         |        
|                                            |                                |                                                         |        
|                                            |                                | 2005                                                    |         |         | 2004      |   |        | 2003   |       
|                                            |                                |                                                         |         |         |           |   |        |        |       
|                                            |                                |                                                         |         | Dollar  |           |   |        |        | Dollar |  |           |         |  | Dollar |       
|                                            |                                | No. of                                                  |         |         | Amount of |   |        | No. of |        |  | Amount of |         |  | No. of |        |        | Amount of | 
|                                            |                                | Loans                                                   |         |         | Loans     |   |        | Loans  |        |  | Loans     |         |  | Loans  |        |        | Loans     | 
|                                            |                                |                                                         |         |         |           |   |        |        |        |  |           |         |  |        |        |        |           | 
|                                            |                                | (Dollars in millions)                                   |        
|Retail branches                             |                                |                                                         | 126,527 |         |           | $ | 19,097 |        |        |  | 134,160   |         |  | $      | 18,012 |        |           |  | 249,478 |         |  | $ | 28,881 |        
|Direct lending (other than retail branches) |                                |                                                         | 155,224 |         |           |   | 16,189 |        |        |  | 143,316   |         |  |        | 15,302 |        |           |  | 223,199 |         |  |   | 29,226 |        
|Mortgage brokers                            |                                |                                                         | 29,455  |         |           |   | 6,038  |        |        |  | 14,172    |         |  |        | 2,524  |        |           |  | 20,033  |         |  |   | 3,188  |        
|Correspondent lenders                       |                                |                                                         | 259,346 |         |           |   | 50,222 |        |        |  | 289,974   |         |  |        | 51,609 |        |           |  | 317,720 |         |  |   | 53,159 |        
|                                            |                                |                                                         |         |         |           |   |        |        |        |  |           |         |  |        |        |        |           | 
|                                            | Total mortgage loan production |                                                         |         | 570,552 |           |   | $      | 91,546 |        |  |           | 581,622 |  |        | $      | 87,447 |           |  |         | 810,430 |  |   | $      | 114,454 | 
|                                            |                                |                                                         |         |         |           |   |        |        |        |  |           |         |  |        |        |        |           | 






|    |                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes $5.8 billion (December 31, 2005),
    $4.6 billion (December 31, 2004) and $9.0 billion
    (December 31, 2003) of loans purchased from Residential
    Capital Group.



| |                        
| | -----------------------
| | Types of Mortgage Loans



|                     |       |                                                      |         |         |           |   |        |        |        |  |           |         |  |        |        |        |           |  |         |         |  |   |        |         | 
|-------------------- | ----- | ---------------------------------------------------- | ------- | ------- | --------- | - | ------ | ------ | ------ |  | --------- | ------- |  | ------ | ------ | ------ | --------- |  | ------- | ------- |  | - | ------ | ------- | 
|                     |       | GMAC Residential Mortgage Loan Production by Type(1) |        
|                     |       |                                                      |        
|                     |       | For the Year Ended December 31,                      |        
|                     |       |                                                      |        
|                     |       | 2005                                                 |         |         | 2004      |   |        | 2003   |       
|                     |       |                                                      |         |         |           |   |        |        |       
|                     |       |                                                      |         | Dollar  |           |   |        |        | Dollar |  |           |         |  | Dollar |       
|                     |       | No. of                                               |         |         | Amount of |   |        | No. of |        |  | Amount of |         |  | No. of |        |        | Amount of | 
|                     |       | Loans                                                |         |         | Loans     |   |        | Loans  |        |  | Loans     |         |  | Loans  |        |        | Loans     | 
|                     |       |                                                      |         |         |           |   |        |        |        |  |           |         |  |        |        |        |           | 
|                     |       | (Dollars in millions)                                |        
|Prime conforming     |       |                                                      | 275,148 |         |           | $ | 50,003 |        |        |  | 276,444   |         |  | $      | 45,635 |        |           |  | 558,204 |         |  | $ | 89,271 |        
|Prime non-conforming |       |                                                      | 96,291  |         |           |   | 27,903 |        |        |  | 101,883   |         |  |        | 28,521 |        |           |  | 41,202  |         |  |   | 13,451 |        
|Government           |       |                                                      | 31,164  |         |           |   | 4,251  |        |        |  | 40,062    |         |  |        | 4,834  |        |           |  | 49,988  |         |  |   | 4,929  |        
|Nonprime             |       |                                                      | 2,292   |         |           |   | 110    |        |        |  | 3,854     |         |  |        | 178    |        |           |  | 1,560   |         |  |   | 70     |        
|Prime second-lien    |       |                                                      | 165,657 |         |           |   | 9,279  |        |        |  | 159,379   |         |  |        | 8,279  |        |           |  | 159,476 |         |  |   | 6,733  |        
|                     |       |                                                      |         |         |           |   |        |        |        |  |           |         |  |        |        |        |           | 
|                     | Total |                                                      |         | 570,552 |           |   | $      | 91,546 |        |  |           | 581,622 |  |        | $      | 87,447 |           |  |         | 810,430 |  |   | $      | 114,454 | 
|                     |       |                                                      |         |         |           |   |        |        |        |  |           |         |  |        |        |        |           | 






|    |                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes $5.8 billion (December 31, 2005),
    $4.6 billion (December 31, 2004) and $9.0 billion
    (December 31, 2003) of loans purchased from Residential
    Capital Group.



| |                                                     
| | ----------------------------------------------------
| | Automated Underwriting Technology and Bulk Purchases

® ® ® ®




| |                                   
| | ----------------------------------
| | Sale and Securitization Activities



13



---



##### Table of Contents







| |                     
| | --------------------
| | Servicing Activities





|                                    |                                   |                                                    |           |           |           |   |         |         |        |  |           |           |  |        |         |         |           |  |           |           |  |   |         |         | 
|----------------------------------- | --------------------------------- | -------------------------------------------------- | --------- | --------- | --------- | - | ------- | ------- | ------ |  | --------- | --------- |  | ------ | ------- | ------- | --------- |  | --------- | --------- |  | - | ------- | ------- | 
|                                    |                                   | GMAC Residential Mortgage Loan Servicing Portfolio |          
|                                    |                                   |                                                    |          
|                                    |                                   | As of December 31,                                 |          
|                                    |                                   |                                                    |          
|                                    |                                   | 2005                                               |           |           | 2004      |   |         | 2003    |       
|                                    |                                   |                                                    |           |           |           |   |         |         |       
|                                    |                                   |                                                    |           | Dollar    |           |   |         |         | Dollar |  |           |           |  | Dollar |        
|                                    |                                   | No. of                                             |           |           | Amount of |   |         | No. of  |        |  | Amount of |           |  | No. of |         |         | Amount of | 
|                                    |                                   | Loans                                              |           |           | Loans     |   |         | Loans   |        |  | Loans     |           |  | Loans  |         |         | Loans     | 
|                                    |                                   |                                                    |           |           |           |   |         |         |        |  |           |           |  |        |         |         |           | 
|                                    |                                   | (Dollars in millions)                              |          
|Prime conforming mortgage loans     |                                   |                                                    | 1,392,870 |           |           | $ | 186,365 |         |        |  | 1,323,249 |           |  | $      | 165,521 |         |           |  | 1,308,284 |           |  | $ | 153,601 |        
|Prime non-conforming mortgage loans |                                   |                                                    | 69,488    |           |           |   | 32,384  |         |        |  | 53,119    |           |  |        | 23,604  |         |           |  | 34,041    |           |  |   | 13,937  |        
|Government mortgage loans           |                                   |                                                    | 181,679   |           |           |   | 18,098  |         |        |  | 191,844   |           |  |        | 18,328  |         |           |  | 191,023   |           |  |   | 17,594  |        
|Nonprime mortgage loans             |                                   |                                                    | 14,018    |           |           |   | 553     |         |        |  | 20,227    |           |  |        | 718     |         |           |  | 23,818    |           |  |   | 820     |        
|Prime second-lien mortgage loans    |                                   |                                                    | 378,243   |           |           |   | 12,481  |         |        |  | 330,107   |           |  |        | 9,656   |         |           |  | 258,310   |           |  |   | 6,203   |        
|                                    |                                   |                                                    |           |           |           |   |         |         |        |  |           |           |  |        |         |         |           | 
|                                    | Total primary servicing portfolio |                                                    |           | 2,036,298 |           |   | $       | 249,881 |        |  |           | 1,918,546 |  |        | $       | 217,827 |           |  |           | 1,815,476 |  |   | $       | 192,155 | 
|                                    |                                   |                                                    |           |           |           |   |         |         |        |  |           |           |  |        |         |         |           | 



| |                  
| | -----------------
| | Warehouse Lending





| |                          
| | -------------------------
| | Residential Capital Group

debt-to loan-to


14



---



##### Table of Contents







| |                           
| | --------------------------
| | Sources of Loan Production





|                                                    |                                     |                                                            |         |         |           |   |        |        |        |  |           |         |  |        |        |        |           |  |         |         |  |   |        |        | 
|--------------------------------------------------- | ----------------------------------- | ---------------------------------------------------------- | ------- | ------- | --------- | - | ------ | ------ | ------ |  | --------- | ------- |  | ------ | ------ | ------ | --------- |  | ------- | ------- |  | - | ------ | ------ | 
|                                                    |                                     | Residential Capital Group U.S. Mortgage Loan Production by |        
|                                                    |                                     | Channel(1)                                                 |        
|                                                    |                                     |                                                            |        
|                                                    |                                     | For the Year Ended December 31,                            |        
|                                                    |                                     |                                                            |        
|                                                    |                                     | 2005                                                       |         |         | 2004      |   |        | 2003   |       
|                                                    |                                     |                                                            |         |         |           |   |        |        |       
|                                                    |                                     |                                                            |         | Dollar  |           |   |        |        | Dollar |  |           |         |  | Dollar |       
|                                                    |                                     | No. of                                                     |         |         | Amount of |   |        | No. of |        |  | Amount of |         |  | No. of |        |        | Amount of | 
|                                                    |                                     | Loans                                                      |         |         | Loans     |   |        | Loans  |        |  | Loans     |         |  | Loans  |        |        | Loans     | 
|                                                    |                                     |                                                            |         |         |           |   |        |        |        |  |           |         |  |        |        |        |           | 
|                                                    |                                     | (Dollars in millions)                                      |        
|Direct lending                                      |                                     |                                                            | 6,522   |         |           | $ | 1,039  |        |        |  | 5,027     |         |  | $      | 907    |        |           |  | 9,593   |         |  | $ | 2,185  |       
|Mortgage brokers                                    |                                     |                                                            | 104,808 |         |           |   | 16,923 |        |        |  | 97,399    |         |  |        | 13,778 |        |           |  | 123,320 |         |  |   | 18,334 |       
|Correspondent lender and secondary market purchases |                                     |                                                            | 326,902 |         |           |   | 55,327 |        |        |  | 274,941   |         |  |        | 35,517 |        |           |  | 330,710 |         |  |   | 45,259 |       
|                                                    |                                     |                                                            |         |         |           |   |        |        |        |  |           |         |  |        |        |        |           | 
|                                                    | Total U.S. mortgage loan production |                                                            |         | 438,232 |           |   | $      | 73,289 |        |  |           | 377,367 |  |        | $      | 50,202 |           |  |         | 463,623 |  |   | $      | 65,778 | 
|                                                    |                                     |                                                            |         |         |           |   |        |        |        |  |           |         |  |        |        |        |           | 






|    |                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes $5.8 billion (December 31, 2005),
    $4.6 billion (December 31, 2004) and $9.0 billion
    (December 31, 2003) of loans sold to GMAC Residential.



| |                        
| | -----------------------
| | Types of Mortgage Loans



15



---



##### Table of Contents





|                     |                                     |                                                                    |         |         |           |   |        |        |        |  |           |         |  |        |        |        |           |  |         |         |  |   |        |        | 
|-------------------- | ----------------------------------- | ------------------------------------------------------------------ | ------- | ------- | --------- | - | ------ | ------ | ------ |  | --------- | ------- |  | ------ | ------ | ------ | --------- |  | ------- | ------- |  | - | ------ | ------ | 
|                     |                                     | Residential Capital Group U.S. Mortgage Loan Production by Type(1) |        
|                     |                                     |                                                                    |        
|                     |                                     | For the Year Ended December 31,                                    |        
|                     |                                     |                                                                    |        
|                     |                                     | 2005                                                               |         |         | 2004      |   |        | 2003   |       
|                     |                                     |                                                                    |         |         |           |   |        |        |       
|                     |                                     |                                                                    |         | Dollar  |           |   |        |        | Dollar |  |           |         |  | Dollar |       
|                     |                                     | No. of                                                             |         |         | Amount of |   |        | No. of |        |  | Amount of |         |  | No. of |        |        | Amount of | 
|                     |                                     | Loans                                                              |         |         | Loans     |   |        | Loans  |        |  | Loans     |         |  | Loans  |        |        | Loans     | 
|                     |                                     |                                                                    |         |         |           |   |        |        |        |  |           |         |  |        |        |        |           | 
|                     |                                     | (Dollars in millions)                                              |        
|Prime conforming     |                                     |                                                                    | 32,964  |         |           | $ | 5,413  |        |        |  | 31,141    |         |  | $      | 4,580  |        |           |  | 61,283  |         |  | $ | 9,000  |       
|Prime non-conforming |                                     |                                                                    | 97,486  |         |           |   | 28,312 |        |        |  | 61,377    |         |  |        | 14,952 |        |           |  | 98,557  |         |  |   | 24,642 |       
|Government           |                                     |                                                                    |        |         |           |   |       |        |        |  |          |         |  |        |       |        |           |  |        |         |  |   |       |       
|Nonprime             |                                     |                                                                    | 224,025 |         |           |   | 35,764 |        |        |  | 213,490   |         |  |        | 27,702 |        |           |  | 237,582 |         |  |   | 29,693 |       
|Prime second-lien    |                                     |                                                                    | 83,757  |         |           |   | 3,800  |        |        |  | 71,359    |         |  |        | 2,968  |        |           |  | 66,201  |         |  |   | 2,443  |       
|                     |                                     |                                                                    |         |         |           |   |        |        |        |  |           |         |  |        |        |        |           | 
|                     | Total U.S. mortgage loan production |                                                                    |         | 438,232 |           |   | $      | 73,289 |        |  |           | 377,367 |  |        | $      | 50,202 |           |  |         | 463,623 |  |   | $      | 65,778 | 
|                     |                                     |                                                                    |         |         |           |   |        |        |        |  |           |         |  |        |        |        |           | 






|    |                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes $5.8 billion (December 31, 2005),
    $4.6 billion (December 31, 2004) and $9.0 billion
    (December 31, 2003) of loans sold to GMAC Residential.



| |                                                     
| | ----------------------------------------------------
| | Automated Underwriting Technology and Bulk Purchases

sm




| |                                   
| | ----------------------------------
| | Sale and Securitization Activities







| |                     
| | --------------------
| | Servicing Activities



16



---



##### Table of Contents





|                                    |                                   |                                                                  |         |         |           |   |        |         |        |  |           |         |  |        |        |        |           |  |         |         |  |   |        |        | 
|----------------------------------- | --------------------------------- | ---------------------------------------------------------------- | ------- | ------- | --------- | - | ------ | ------- | ------ |  | --------- | ------- |  | ------ | ------ | ------ | --------- |  | ------- | ------- |  | - | ------ | ------ | 
|                                    |                                   | Residential Capital Group U.S. Mortgage Loan Servicing Portfolio |        
|                                    |                                   |                                                                  |        
|                                    |                                   | As of December 31,                                               |        
|                                    |                                   |                                                                  |        
|                                    |                                   | 2005                                                             |         |         | 2004      |   |        | 2003    |       
|                                    |                                   |                                                                  |         |         |           |   |        |         |       
|                                    |                                   |                                                                  |         | Dollar  |           |   |        |         | Dollar |  |           |         |  | Dollar |       
|                                    |                                   | No. of                                                           |         |         | Amount of |   |        | No. of  |        |  | Amount of |         |  | No. of |        |        | Amount of | 
|                                    |                                   | Loans                                                            |         |         | Loans     |   |        | Loans   |        |  | Loans     |         |  | Loans  |        |        | Loans     | 
|                                    |                                   |                                                                  |         |         |           |   |        |         |        |  |           |         |  |        |        |        |           | 
|                                    |                                   | (Dollars in millions)                                            |        
|Prime conforming mortgage loans     |                                   |                                                                  | 503     |         |           | $ | 40     |         |        |  | 669       |         |  | $      | 56     |        |           |  | 1,011   |         |  | $ | 92     |       
|Prime non-conforming mortgage loans |                                   |                                                                  | 188,090 |         |           |   | 44,605 |         |        |  | 150,703   |         |  |        | 31,981 |        |           |  | 144,293 |         |  |   | 30,014 |       
|Government mortgage loans           |                                   |                                                                  |        |         |           |   |       |         |        |  |          |         |  |        |       |        |           |  |        |         |  |   |       |       
|Nonprime mortgage loans             |                                   |                                                                  | 480,886 |         |           |   | 56,165 |         |        |  | 485,702   |         |  |        | 50,421 |        |           |  | 462,816 |         |  |   | 44,927 |       
|Prime second-lien mortgage loans    |                                   |                                                                  | 122,351 |         |           |   | 4,594  |         |        |  | 115,289   |         |  |        | 4,062  |        |           |  | 100,451 |         |  |   | 3,319  |       
|                                    |                                   |                                                                  |         |         |           |   |        |         |        |  |           |         |  |        |        |        |           | 
|                                    | Total primary servicing portfolio |                                                                  |         | 791,830 |           |   | $      | 105,404 |        |  |           | 752,363 |  |        | $      | 86,520 |           |  |         | 708,571 |  |   | $      | 78,352 | 
|                                    |                                   |                                                                  |         |         |           |   |        |         |        |  |           |         |  |        |        |        |           | 



| |                  
| | -----------------
| | Warehouse Lending





| |                                       
| | --------------------------------------
| | Seasoned and Distressed Mortgage Loans





| |                 
| | ----------------
| | Business Capital





17



---



##### Table of Contents









| |                                 
| | --------------------------------
| | Residential Construction Finance









| |                   
| | ------------------
| | Residential Equity





18



---



##### Table of Contents









| |                   
| | ------------------
| | Model Home Finance











| |               
| | --------------
| | Resort Finance







| |               
| | --------------
| | Health Capital



19



---



##### Table of Contents















| |              
| | -------------
| | International





|                               |  |                                        |        |        |           |   |        |        |        |  |           |  |  |        |        |  |           |  |        |  |  |   |       | 
|------------------------------ |  | -------------------------------------- | ------ | ------ | --------- | - | ------ | ------ | ------ |  | --------- |  |  | ------ | ------ |  | --------- |  | ------ |  |  | - | ----- | 
|                               |  | International Mortgage Loan Production |       
|                               |  |                                        |       
|                               |  | For the Year Ended December 31,        |       
|                               |  |                                        |       
|                               |  | 2005                                   |        |        | 2004      |   |        | 2003   |       
|                               |  |                                        |        |        |           |   |        |        |       
|                               |  |                                        |        | Dollar |           |   |        |        | Dollar |  |           |  |  | Dollar |       
|                               |  | No. of                                 |        |        | Amount of |   |        | No. of |        |  | Amount of |  |  | No. of |        |  | Amount of | 
|                               |  | Loans                                  |        |        | Loans     |   |        | Loans  |        |  | Loans     |  |  | Loans  |        |  | Loans     | 
|                               |  |                                        |        |        |           |   |        |        |        |  |           |  |  |        |        |  |           | 
|                               |  | (Dollars in millions)                  |       
|Total International Production |  |                                        | 85,970 |        |           | $ | 16,539 |        |        |  | 75,969    |  |  | $      | 14,013 |  |           |  | 47,805 |  |  | $ | 7,999 | 
|                               |  |                                        |        |        |           |   |        |        |        |  |           |  |  |        |        |  |           | 



|              |  |                                   |         |        |           |   |        |        |        |  |           |  |  |        |        |  |           |  |        |  |  |   |        | 
|------------- |  | --------------------------------- | ------- | ------ | --------- | - | ------ | ------ | ------ |  | --------- |  |  | ------ | ------ |  | --------- |  | ------ |  |  | - | ------ | 
|              |  | International Servicing Portfolio |        
|              |  |                                   |        
|              |  | As of December 31,                |        
|              |  |                                   |        
|              |  | 2005                              |         |        | 2004      |   |        | 2003   |       
|              |  |                                   |         |        |           |   |        |        |       
|              |  |                                   |         | Dollar |           |   |        |        | Dollar |  |           |  |  | Dollar |       
|              |  | No. of                            |         |        | Amount of |   |        | No. of |        |  | Amount of |  |  | No. of |        |  | Amount of | 
|              |  | Loans                             |         |        | Loans     |   |        | Loans  |        |  | Loans     |  |  | Loans  |        |  | Loans     | 
|              |  |                                   |         |        |           |   |        |        |        |  |           |  |  |        |        |  |           | 
|              |  | (Dollars in millions)             |        
|International |  |                                   | 138,420 |        |           | $ | 23,711 |        |        |  | 98,185    |  |  | $      | 19,438 |  |           |  | 86,858 |  |  | $ | 11,721 | 
|              |  |                                   |         |        |           |   |        |        |        |  |           |  |  |        |        |  |           | 



| |               
| | --------------
| | United Kingdom



20



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| |                   
| | ------------------
| | Continental Europe







| |       
| | ------
| | Canada





| |       
| | ------
| | Mexico





| |      
| | -----
| | Other





21



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Competition




| |                                     
| | ------------------------------------
| | U.S. Residential Real Estate Finance





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Continuing evolution of the secondary mortgage market, resulting
    in a proliferation of mortgage products;                                                                                                                                                                                                                                                                                                                      
|
| |  | Greater regulation imposed on the industry, resulting in
    increased costs and the need for higher levels of
    specialization; and                                                                                                                                                                                                                                                                                             
|
| |  | Increasing interest rate volatility, compounded by
    homeowners increasing tendency to refinance their
    mortgages as the refinance process has become more efficient and
    cost-effective, resulting in large swings in the volume of
    mortgage loans originated from year to year. These swings in
    mortgage origination volume have placed significant operational
    and financial pressures on mortgage lenders.











22



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| |                 
| | ----------------
| | Business Capital













| |              
| | -------------
| | International



Regulation




23



---



##### Table of Contents





| |                                     
| | ------------------------------------
| | U.S. Residential Real Estate Finance





| |   |                                                 
| | - | ------------------------------------------------
| |  | Equal Credit Opportunity Act;                   
|
| |  | Federal Truth-In-Lending Act;                   
|
| |  | Home Ownership and Equity Protection Act;       
|
| |  | Real Estate Settlement Procedures Act, or RESPA;
|
| |  | Fair Credit Reporting Act;                      
|
| |  | Fair Debt Collection Practices Act;             
|
| |  | Home Mortgage Disclosure Act;                   
|
| |  | Fair Housing Act;                               
|
| |  | Telephone Consumer Protection Act;              
|
| |  | Gramm-Leach-Bliley Act;                         
|
| |  | Fair and Accurate Credit Transactions Act;      
|
| |  | CAN-SPAM Act;                                   
|
| |  | Flood Disaster Protection Act;                  
|
| |  | National Flood Insurance Reform Act;            
|
| |  | Homeowners Protection Act;                      
|
| |  | National Housing Act;                           
|
| |  | Federal Trade Commission Credit Practice Rules; 
|
| |  | USA PATRIOT Act; and                            
|
| |  | Federal securities laws and regulations.        







| |   |                                                                                        
| | - | ---------------------------------------------------------------------------------------
| |  | impose licensing obligations and financial requirements on us;                         
|
| |  | limit the interest rates, finance charges and other fees that we
    may charge or pay;
|
| |  | regulate the use of credit reports and the reporting of credit
    information;        
|
| |  | prohibit discrimination;                                                               
|
| |  | impose underwriting requirements;                                                      
|
| |  | mandate disclosures and notices to consumers;                                          
|
| |  | mandate the collection and reporting of statistical data
    regarding our customers;  
|
| |  | regulate our marketing techniques and practices;                                       
|
| |  | require us to safeguard non-public information about our
    customers;                

24



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##### Table of Contents





| |   |                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | regulate our servicing practices, including the assessment,
    collection, foreclosure, claims handling and investment and
    interest payments on escrow accounts; and
|
| |  | require us to take precautions against money-laundering and
    doing business with suspected terrorists.                                                                





| |   |                                                                                  
| | - | ---------------------------------------------------------------------------------
| |  | civil and criminal liability:                                                    
|
| |  | loss of licenses and approvals;                                                  
|
| |  | damage to our reputation in the industry;                                        
|
| |  | inability to sell or securitize our loans, or otherwise raise
    capital;       
|
| |  | demands for indemnification or loan repurchases from purchasers
    of our loans;
|
| |  | fines and penalties and litigation, including class action
    lawsuits;         
|
| |  | administrative enforcement actions; and                                          
|
| |  | claims that an allegedly non-compliant loan is rescindable or
    unenforceable. 





| |        
| | -------
| | Privacy





| |                          
| | -------------------------
| | Fair Credit Reporting Act





| |                             
| | ----------------------------
| | Home Mortgage Disclosure Act



25



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| |                              
| | -----------------------------
| | Predatory Lending Legislation









| |                                                                                   
| | ----------------------------------------------------------------------------------
| | Controlling the Assault of Non-Solicited Pornography and
    Marketing Act of 2003





| |                                                         
| | --------------------------------------------------------
| | The Alternative Mortgage Transactions Parity Act of 1982



26



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| |                                                                                                
| | -----------------------------------------------------------------------------------------------
| | Telephone Consumer Protection Act and Telemarketing Consumer
    Fraud and Abuse Prevention Act





| |                
| | ---------------
| | USA PATRIOT Act







| |                                 
| | --------------------------------
| | Non-Federally Chartered Entities



27



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| |          
| | ---------
| | GMAC Bank







| |                                                                            
| | ---------------------------------------------------------------------------
| | Savings and Loan Holding Company Regulations and Affiliate
    Transactions









| |                                                                     
| | --------------------------------------------------------------------
| | Qualified Thrift Lender Test and Regulatory Capital
    Requirements



28



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| |                                 
| | --------------------------------
| | Capital Distribution Regulations





| |                              
| | -----------------------------
| | Insurance of Deposit Accounts





| |                                                     
| | ----------------------------------------------------
| | Community Reinvestment Act and the Fair Lending Laws





| |                   
| | ------------------
| | Privacy Protection



29



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| |               
| | --------------
| | Broker-Dealers





| |                 
| | ----------------
| | Business Capital





| |              
| | -------------
| | International



| |               
| | --------------
| | European Union





| |               
| | --------------
| | United Kingdom





30



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##### Table of Contents







| |   |                                                     
| | - | ----------------------------------------------------
| |  | lending or acting as a lender;                      
|
| |  | administering or servicing regulated mortgage loans;
|
| |  | arranging mortgage credit; and                      
|
| |  | advising on any regulated mortgage contract.        



Mortgages: Conduct of Business
Sourcebook,










| |        
| | -------
| | Germany

Bundesanstalt für
Finanzdienstleistungsaufsicht, or BAFin Bundesbank




| |   |                                                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Our German banking operation is required to have a minimum
    leverage capital ratio equal to 12% of risk-adjusted assets; and                                                              
|
| |  | The directors of our German banking operation must demonstrate
    compliance with specific independence requirements and adequate
    control over the banks business, processes and risks.

31



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| |                
| | ---------------
| | The Netherlands







| |       
| | ------
| | Canada







| |       
| | ------
| | Mexico



32



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##### Table of Contents





| |                                                
| | -----------------------------------------------
| | Our Responsible Lending Policies and Procedures









Employees







Item 1A.     RISK FACTORS.


Risks Related to Our Business




| |                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our business requires substantial capital, and if we are
    unable to maintain adequate financing sources our profitability
    and financial condition will suffer and jeopardize our ability
    to continue operations.







33



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| |                                                                                                                                                                                                                                                                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Rating agencies may downgrade their ratings for us in the
    future, which adversely affect our ability to raise capital in
    the debt markets at attractive rates and increase the interest
    that we pay on our outstanding publicly traded notes, which
    could have a material adverse effect on our results of
    operations and financial condition.







| |                                                                                                                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | GM is considering the sale of a controlling interest in
    GMAC as well as exploring strategic and structural alternatives
    for us; there is a risk that these initiatives may not occur, or
    if they do occur, they may not restore GMACs investment
    grade rating or maintain our investment grade ratings.





| |                                                                                   
| | ----------------------------------------------------------------------------------
| | Our earnings may decrease because of increases or
    decreases in interest rates.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Rising interest rates generally reduce our residential mortgage
    loan production as borrowers become less likely to refinance and
    acquiring a new home becomes more expensive. Rising interest
    rates may also reduce demand for our other lending activities,
    including our warehouse lending and business capital activities.
    If demand for our loans decreases, our earnings may decrease.

34



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | During periods of rising interest rates, the value and
    profitability of our mortgage loans may be harmed from the date
    of origination (or interest rate lock) or purchase commitment
    until the date we sell or securitize the mortgage loans. In
    addition, the spread between the interest we receive on our
    mortgage loans during this aggregation period and our funding
    costs may be reduced by increases in market interest rates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | Rising interest rates will generally reduce the value of
    mortgage loans and retained interests held in our investment
    portfolio. For example, some of the interests we retain in
    connection with our securitizations are entitled to cash-flows
    that primarily represent the difference between the amount of
    interest collected on the underlying mortgage loans and the
    amount of interest payable to the holders of senior securities
    in the related securitization. In certain of these
    securitizations, the underlying mortgage loans generally have
    fixed interest rates for the first two or three years while the
    interest rate payable to holders of the senior securities is
    generally based on an adjustable London Inter-Bank Offered Rate,
    or LIBOR. In other securitizations, the underlying mortgage
    loans have variable interest rates that are based on indices
    other than LIBOR while the interest rate payable to holders of
    securities is generally based on LIBOR. If LIBOR increases
    during the time that the mortgage loans are fixed, or increases
    at a faster rate than the rate at which the underlying loans
    adjust, the income and value of our retained interests from
    these securitizations will be reduced. This would reduce the
    amount of cash we receive over the life of the loans in
    securitizations structured as financings and from our retained
    interests, and could require us to reduce the carrying value of
    our retained interests.
|
| |  | Rising interest rates will generally reduce the demand for
    residential real estate related services, including our
    brokerage, relocation and settlement services, which may reduce
    the income we receive from these services.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  





| |                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------
| | Our hedging strategies may not be successful in mitigating
    our risks associated with changes in interest rates.





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| |                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We use estimates and various assumptions in determining
    the fair value of certain of our assets, and in determining our
    allowance for loan losses. If our estimates or assumptions prove
    to be incorrect, we may be required to write down the value of
    these assets or increase our allowance for loan losses, either
    of which could adversely affect our earnings and financial
    condition.





| |                                                                                                                                                                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We remain exposed to credit risk associated with the
    assets held in our portfolio of mortgage loans held for
    investment and retained interests, and higher rates of
    delinquency and default rates could adversely affect our
    profitability and financial condition.





36



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| |                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our profitability and financial condition could be
    adversely affected if the assumptions underlying our risk-based
    underwriting and pricing models prove to be incorrect.

sm ®




| |                                                                                                                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Changes in existing U.S. government-sponsored mortgage
    programs, or disruptions in the secondary markets in the United
    States or in other countries in which we operate, could
    adversely affect our profitability and financial
    condition.







| |                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------
| | General business and economic conditions may significantly
    and adversely affect our revenues, profitability and financial
    condition.



37



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| |                                                                                              
| | ---------------------------------------------------------------------------------------------
| | We face intense competition that could harm our market
    share, revenues and profitability.









| |                                                                                                                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Increasing competition in the acquisition of mortgage
    loans from correspondent lenders in the secondary market and the
    origination of loans through mortgage brokers, and recent
    consolidation in the mortgage loan industry, may harm our
    profitability.



38



---



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| |                                                                                                                                                                                                                                                                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our financial results could be materially adversely
    affected if we are required to incur a charge for loan losses or
    reductions in carrying value of mortgage loans held for
    investment if a large number of homeowners to whom we have lent
    money were to suffer uninsured catastrophic damage to their
    property due to a terrorist attack or natural disaster.





| |                                                                                                                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Changes in accounting standards issued by the Financial
    Accounting Standards Board or other standard-setting bodies may
    adversely affect our reported revenues, profitability and
    financial condition.





| |                                                                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
| | An interruption in or breach of our information systems
    may result in lost business, regulatory actions or litigation or
    otherwise harm our reputation.



39



---



##### Table of Contents







| |                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------
| | The success and growth of our business may be adversely
    affected if we do not adapt to and implement technological
    changes.





| |   |                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------
| |  | becomes non-compliant with existing industry standards or is no
    longer supported by vendors;                           
|
| |  | fails to meet or exceed the capabilities of our
    competitors corresponding technologies or technological
    solutions;
|
| |  | becomes increasingly expensive to service, retain and update; or                                                           
|
| |  | becomes subject to third-party claims of copyright or patent
    infringement.                                             





| |                                                                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We depend on the accuracy and completeness of information
    about our customers and counterparties, and inaccuracies in such
    information could adversely affect our profitability.





| |                                                                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may be required to repurchase mortgage loans or
    indemnify investors if we breach representations and warranties,
    which could harm our profitability.



40



---



##### Table of Contents







| |                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------
| | Our business capital activities expose us to additional
    risks that may adversely affect our revenues and
    profitability.





| |   |                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the performance and financial strength of the developer;                                                                                                                                                                                   
|
| |  | development, construction and other costs of the project not
    exceeding original estimates;                                                                                                                                             
|
| |  | the ability of the project to attract creditworthy buyers;                                                                                                                                                                                 
|
| |  | the project being completed on schedule, which is subject to
    many factors, several of which are beyond the control of the
    developer, such as required governmental approvals, weather,
    labor conditions and material shortages;
|
| |  | the continued involvement of key personnel; and                                                                                                                                                                                            
|
| |  | local housing demand and competition, including the strength of
    the local and national economy and fluctuations in interest
    rates.                                                                                                 





| |                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------
| | Our business outside the United States exposes us to
    additional risks that may cause our revenues and profitability
    to decline.





| |   |                                                                          
| | - | -------------------------------------------------------------------------
| |  | multiple foreign regulatory requirements that are subject to
    change; 
|
| |  | differing local product preferences and product requirements;            
|
| |  | fluctuations in foreign currency exchange rates and interest
    rates;  
|
| |  | difficulty in establishing, staffing and managing foreign
    operations;
|
| |  | differing labor regulations;                                             
|
| |  | potentially negative consequences from changes in tax laws; and          
|
| |  | political and economic instability.                                      

41



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| |                                                                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | A significant portion of our business is in the State of
    California, and our business may be significantly harmed by a
    slowdown in the economy or the occurrence of a natural disaster
    in California.









| |                                                                                                                                                                                                                                                                                                                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Because we are a wholly-owned subsidiary of GM, we may be
    jointly and severally responsible with GM and its other
    subsidiaries for funding obligations under GMs and its
    subsidiaries tax-qualified U.S. defined benefit pension
    plans. If we are required to pay some or all of those
    obligations, our profitability and financial condition could be
    materially adversely affected.







42



---



##### Table of Contents







| |                                                                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If GM and/or GMAC were to become the subject of a
    bankruptcy proceeding and we were substantively consolidated
    with GM and/or GMAC, our assets would become subject to the
    claims of our creditors and the creditors of GM and/or
    GMAC.







| |                                                                                                        
| | -------------------------------------------------------------------------------------------------------
| | GM and GMAC control all fundamental matters affecting us,
    and their interests may differ from ours.





Legal and Regulatory Risks Related to Our Business




| |                                                                                                                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The scope of our residential mortgage loan production and
    servicing operations exposes us to risks of noncompliance with
    an increasing and inconsistent body of complex laws and
    regulations at the federal, state and local levels in the United
    States and outside the United States.



43



---



##### Table of Contents







| |   |                                                                                  
| | - | ---------------------------------------------------------------------------------
| |  | civil and criminal liability:                                                    
|
| |  | loss of licenses and approvals;                                                  
|
| |  | damage to our reputation in the industry;                                        
|
| |  | inability to sell or securitize our loans, or otherwise raise
    capital;       
|
| |  | demands for indemnification or loan repurchases from purchasers
    of our loans;
|
| |  | fines and penalties and litigation, including class action
    lawsuits;         
|
| |  | administrative enforcement actions; and                                          
|
| |  | claims that an allegedly non-compliant loan is rescindable or
    unenforceable. 





| |                                                                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | New legislation with respect to so-called predatory
    lending practices could restrict our ability to produce mortgage
    loans, which could harm our revenues and profitability.





| |                                                                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may be subject to fines or other penalties based upon
    the conduct of independent mortgage brokers through which we
    originate mortgage loans and lenders from which we acquire
    mortgage loans.



44



---



##### Table of Contents







| |                                                                                                                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If warehouse lenders and securitization underwriters face
    exposure stemming from legal violations committed by the
    companies to which they provide financing or underwriting
    services, this could increase our borrowing costs and harm the
    market for our whole loans and mortgage-backed
    securities.





| |                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| | Enhanced reporting required by the Home Mortgage
    Disclosure Act may lead to increased litigation, media coverage
    and challenges to our reputation.







| |                                                                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are no longer able to rely on the Alternative Mortgage
    Transactions Parity Act of 1982 to preempt certain state law
    restrictions on prepayment penalties, which could harm our
    revenues and profitability.



45



---



##### Table of Contents










Item 1B.     UNRESOLVED STAFF
COMMENTS.







Item 2.     PROPERTIES.




®






46



---



##### Table of Contents






Item 3.     LEGAL PROCEEDINGS.




Kessler.


Golden.


Santiago.


47



---



##### Table of Contents



Murray.


Parthiban. Murray Murray Parthiban Murray







|        |                                                     
|------- | ----------------------------------------------------
|Item 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.






PART II







|        |                                                                           
|------- | --------------------------------------------------------------------------
|Item 5. | MARKET FOR REGISTRANTS COMMON EQUITY AND RELATED
    STOCKHOLDER MATTERS.



48



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|        |                         
|------- | ------------------------
|Item 6. | SELECTED FINANCIAL DATA.



|                                                     |                                                     |                                  |         |         |      |   |          |         |  |   |          |         |   |      |          |         |   |   |         |         |  
|---------------------------------------------------- | --------------------------------------------------- | -------------------------------- | ------- | ------- | ---- | - | -------- | ------- |  | - | -------- | ------- | - | ---- | -------- | ------- | - | - | ------- | ------- | -
|                                                     |                                                     | For the Years Ended December 31, |        
|                                                     |                                                     |                                  |        
|                                                     |                                                     | 2005                             |         |         | 2004 |   |          | 2003    |  |   | 2002     |         |   | 2001 |         
|                                                     |                                                     |                                  |         |         |      |   |          |         |  |   |          |         |   |      |         
|                                                     |                                                     | (In millions)                    |        
|Statement of Income Data:                            |                                                     |                                  |         |         |      |   |          |         |  |   |          |         |   |      |          |         |   |   |         |        
|Interest income                                      |                                                     | $                                | 5,797.1 |         |      | $ | 4,990.9  |         |  | $ | 3,482.7  |         |   | $    | 1,814.0  |         |   | $ | 1,210.9 |        
|Interest expense                                     |                                                     |                                  | 3,872.1 |         |      |   | 2,405.0  |         |  |   | 1,402.7  |         |   |      | 800.9    |         |   |   | 797.4   |        
|                                                     |                                                     |                                  |         |         |      |   |          |         |  |   |          |         |   |      |         
|                                                     | Net interest income                                 |                                  |         | 1,925.0 |      |   |          | 2,585.9 |  |   |          | 2,080.0 |   |      |          | 1,013.1 |   |   |         | 413.5   |  
|Provision for loan losses                            |                                                     |                                  | 651.8   |         |      |   | 842.9    |         |  |   | 453.5    |         |   |      | 231.7    |         |   |   | 124.5   |        
|                                                     |                                                     |                                  |         |         |      |   |          |         |  |   |          |         |   |      |         
|                                                     | Net interest income after provision for loan losses |                                  |         | 1,273.2 |      |   |          | 1,743.0 |  |   |          | 1,626.5 |   |      |          | 781.4   |   |   |         | 289.0   |  
|Gain on sale of mortgage loans, net                  |                                                     |                                  | 1,036.7 |         |      |   | 696.9    |         |  |   | 1,746.3  |         |   |      | 1,543.0  |         |   |   | 1,491.8 |        
|Servicing fees                                       |                                                     |                                  | 1,416.3 |         |      |   | 1,294.3  |         |  |   | 1,185.7  |         |   |      | 1,175.5  |         |   |   | 1,029.2 |        
|Amortization and impairment of servicing rights      |                                                     |                                  | (762.0  | )       |      |   | (1,003.3 | )       |  |   | (2,014.9 | )       |   |      | (2,217.6 | )       |   |   | (868.3  | )      
|Servicing asset valuation and hedge gain (loss), net |                                                     |                                  | 17.2    |         |      |   | 214.9    |         |  |   | 507.2    |         |   |      | 685.0    |         |   |   | (374.9  | )      
|                                                     |                                                     |                                  |         |         |      |   |          |         |  |   |          |         |   |      |         
|                                                     | Net servicing fees (loss)                           |                                  |         | 671.5   |      |   |          | 505.9   |  |   |          | (322.0  | ) |      |          | (357.1  | ) |   |         | (214.0  | )
|Gain (loss) on investment securities, net            |                                                     |                                  | 236.4   |         |      |   | 63.7     |         |  |   | (222.8   | )       |   |      | (371.5   | )       |   |   | (309.0  | )      
|Real estate related revenues                         |                                                     |                                  | 712.2   |         |      |   | 649.2    |         |  |   | 500.4    |         |   |      | 459.2    |         |   |   | 387.4   |        
|Other income                                         |                                                     |                                  | 305.3   |         |      |   | 308.0    |         |  |   | 398.1    |         |   |      | 447.7    |         |   |   | 434.7   |        
|                                                     |                                                     |                                  |         |         |      |   |          |         |  |   |          |         |   |      |         
|                                                     | Total net revenue                                   |                                  |         | 4,235.3 |      |   |          | 3,966.7 |  |   |          | 3,726.5 |   |      |          | 2,502.7 |   |   |         | 2,079.9 |  
|Compensation and benefits                            |                                                     |                                  | 1,406.9 |         |      |   | 1,216.5  |         |  |   | 1,188.8  |         |   |      | 962.5    |         |   |   | 865.2   |        
|Professional fees                                    |                                                     |                                  | 212.4   |         |      |   | 224.7    |         |  |   | 169.4    |         |   |      | 115.2    |         |   |   | 126.0   |        
|Data processing and telecommunications               |                                                     |                                  | 199.9   |         |      |   | 191.1    |         |  |   | 189.3    |         |   |      | 199.8    |         |   |   | 197.7   |        
|Advertising                                          |                                                     |                                  | 158.7   |         |      |   | 151.4    |         |  |   | 127.7    |         |   |      | 123.6    |         |   |   | 119.3   |        
|Occupancy                                            |                                                     |                                  | 121.3   |         |      |   | 107.6    |         |  |   | 99.6     |         |   |      | 97.3     |         |   |   | 93.0    |        
|Other                                                |                                                     |                                  | 509.2   |         |      |   | 465.1    |         |  |   | 585.8    |         |   |      | 496.3    |         |   |   | 330.2   |        
|                                                     |                                                     |                                  |         |         |      |   |          |         |  |   |          |         |   |      |         
|                                                     | Total expenses                                      |                                  |         | 2,608.4 |      |   |          | 2,356.4 |  |   |          | 2,360.6 |   |      |          | 1,994.7 |   |   |         | 1,731.4 |  
|                                                     |                                                     |                                  |         |         |      |   |          |         |  |   |          |         |   |      |         
|Income before income tax expense                     |                                                     |                                  | 1,626.9 |         |      |   | 1,610.3  |         |  |   | 1,365.9  |         |   |      | 508.0    |         |   |   | 348.5   |        
|Income tax expense                                   |                                                     |                                  | 606.3   |         |      |   | 642.1    |         |  |   | 509.1    |         |   |      | 199.4    |         |   |   | 188.9   |        
|                                                     |                                                     |                                  |         |         |      |   |          |         |  |   |          |         |   |      |         
|Net income                                           |                                                     | $                                | 1,020.6 |         |      | $ | 968.2    |         |  | $ | 856.8    |         |   | $    | 308.6    |         |   | $ | 159.6   |        
|                                                     |                                                     |                                  |         |         |      |   |          |         |  |   |          |         |   |      |         

|                                                   |  |                    |           |  |      |   |          |      |  |   |          |  |  |      |          |  |  |   |          | 
|-------------------------------------------------- |  | ------------------ | --------- |  | ---- | - | -------- | ---- |  | - | -------- |  |  | ---- | -------- |  |  | - | -------- | 
|                                                   |  | As of December 31, |          
|                                                   |  |                    |          
|                                                   |  | 2005               |           |  | 2004 |   |          | 2003 |  |   | 2002     |  |  | 2001 |         
|                                                   |  |                    |           |  |      |   |          |      |  |   |          |  |  |      |         
|                                                   |  | (In millions)      |          
|Balance Sheet Data:                                |  |                    |           |  |      |   |          |      |  |   |          |  |  |      |          |  |  |   |          | 
|Total assets                                       |  | $                  | 118,885.1 |  |      | $ | 94,349.5 |      |  | $ | 78,559.6 |  |  | $    | 45,549.1 |  |  | $ | 27,119.2 | 
|Affiliate borrowings                               |  |                    | 5,177.5   |  |      |   | 10,006.2 |      |  |   | 10,683.9 |  |  |      | 11,852.6 |  |  |   | 13,025.0 | 
|Collateralized borrowings in securitization trusts |  |                    | 56,097.8  |  |      |   | 50,708.5 |      |  |   | 39,415.6 |  |  |      | 12,422.8 |  |  |   | 1,196.8  | 
|Other borrowings                                   |  |                    | 42,300.5  |  |      |   | 23,703.7 |      |  |   | 20,647.6 |  |  |      | 15,038.3 |  |  |   | 7,277.8  | 
|Total borrowings                                   |  |                    | 103,575.8 |  |      |   | 84,418.4 |      |  |   | 70,747.1 |  |  |      | 39,313.7 |  |  |   | 21,499.6 | 
|Stockholders equity                               |  |                    | 7,464.0   |  |      |   | 4,365.7  |      |  |   | 3,186.0  |  |  |      | 2,374.3  |  |  |   | 1,818.1  | 

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|        |                                                                                           
|------- | ------------------------------------------------------------------------------------------
|Item 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS.



General








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | GMAC Residential. Our GMAC Residential segment primarily
    originates, purchases, sells, securitizes and services
    residential mortgage loans. This segment originates residential
    mortgage loans through a retail branch network, direct lending
    centers and mortgage brokers, and also purchases residential
    mortgage loans from correspondent lenders. Most of the loans
    originated or purchased by this segment are prime credit quality
    loans that meet the underwriting standards of Fannie Mae or
    Freddie Mac. This segment also provides collateralized lines of
    credit to other originators of residential mortgage loans, which
    we refer to as warehouse lending. Our limited banking activities
    through GMAC Bank are included in this segment. This segment
    generated approximately 35% of our revenues and 30% of our net
    income in 2005.
|
| |  | Residential Capital Group. Our Residential Capital Group
    originates, purchases, sells, securitizes and services
    residential mortgage loans. This segment originates residential
    mortgage loans primarily through mortgage brokers, purchases
    loans from correspondent lenders and other third parties and
    provides warehouse lending. The residential mortgage loans
    produced by this segment cover a broad credit spectrum and
    generally do not conform to the underwriting requirements of
    Fannie Mae or Freddie Mac. These loans are primarily securitized
    through the issuance of non-agency mortgage-backed and mortgage
    related asset-backed securities. This segment generated
    approximately 34% of our revenues and 39% of our net income in
    2005.                                                                                             
|
| |  | Business Capital Group. Our Business Capital Group
    provides financing and equity capital to residential land
    developers and homebuilders and financing to resort developers
    and healthcare-related enterprises. This segment generated
    approximately 10% of our revenues and 20% of our net income in
    2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| |  | International Business Group. Our International Business
    Group includes substantially all of our operations in the United
    Kingdom, The Netherlands, Germany, Canada and Mexico. This
    segment generated approximately 9% of our revenues and 9% of our
    net income in 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              



Overview




50



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Understanding our Financial Results




51



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| |                                          
| | -----------------------------------------
| | On- and Off-Balance Sheet Securitizations









| |                    
| | -------------------
| | Net Interest Income





| |                   
| | ------------------
| | Net Servicing Fees





| |   |                                                                                                                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Servicing fees  the income earned for
    servicing a loan. This includes the contractual servicing fee as
    well as ancillary servicing items such as late fees. Servicing
    fees are generally calculated as a percentage of the loan
    balance.                                                                                                 
|
| |  | Amortization and impairment of servicing
    rights  an expense item that amortizes the
    capitalized mortgage servicing right over the estimated life of
    the servicing cash flows expected to be received from servicing
    the mortgage loan. Impairment relates to charges taken for
    temporary impairment of the mortgage servicing rights.
|
| |  | Servicing asset valuation and hedge gain  the
    income statement effect of financial instruments hedging the
    mortgage servicing rights for both economic and accounting
    hedges as well as any                                                                                                                                                  

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| |  |                                                                                                                       
| |  | ----------------------------------------------------------------------------------------------------------------------
| |  | related fair value adjustment of the mortgage servicing rights
    resulting from the application of hedge accounting.



Critical Accounting Estimates








| |                                               
| | ----------------------------------------------
| | Determination of the Allowance for Loan Losses







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| |                                       
| | --------------------------------------
| | Valuation of Mortgage Servicing Rights











| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Prepayments  The most significant driver of
    mortgage servicing rights value is actual and anticipated
    portfolio prepayment behavior. Prepayment speeds represent the
    rate at which borrowers repay their mortgage loans prior to
    scheduled maturity. As interest rates rise, prepayment speeds
    generally slow, and as interest rates decline, prepayment speeds
    generally accelerate. When mortgage loans are paid or expected
    to be paid earlier than originally estimated, the expected
    future cash flows associated with servicing such loans are
    reduced. We primarily use third-party models to project
    residential mortgage loan payoffs. We measure model performance
    by comparing prepayment predictions against actual results at
    both the portfolio and product level.
|
| |  | Discount rate  The mortgage servicing rights
    cash flows are discounted at prevailing market rates which
    include an appropriate risk-adjusted spread.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | Base mortgage rate  The base mortgage rate
    represents the current market interest rate for newly originated
    mortgage loans. This rate is a key component in estimating
    prepayment speeds of our portfolio because the difference
    between the current base mortgage rate and the interest rates on
    existing loans in our portfolio is an indication of the
    borrowers likelihood to refinance.                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | Cost to Service  In general, servicing cost
    assumptions are based on actual expenses directly related to
    servicing. These servicing cost assumptions are compared to
    market servicing costs when                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

54



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | market information is available. Our servicing cost assumptions
    include expenses associated with our activities related to loans
    in default.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | Volatility  Volatility represents the expected
    rate of change of interest rates. The volatility assumption used
    in our valuation methodology is intended to place a band around
    the potential interest rate movements from one period to the
    next. We use implied volatility assumptions in connection with
    the valuation of our mortgage servicing rights. Implied
    volatility is defined as the expected rate of change in interest
    rates derived from the prices at which options on interest rate
    swaps, or swaptions, are trading. We update our volatility
    assumptions for the change in implied swaption volatility during
    the period, adjusted by the ratio of historical mortgage to
    swaption volatility.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Review and compare recent bulk mortgage servicing right
    acquisition activity. We evaluate market trades for
    reliability and relevancy and then consider, as appropriate, our
    estimate of fair value of each significant deal to the traded
    price. Currently, there is a lack of comparable transactions
    between willing buyers and sellers in the bulk acquisition
    market, which are the best indicators of fair value. However, we
    continue to monitor and track market activity on an ongoing
    basis.
|
| |  | Review and compare recent flow servicing trades. We
    evaluate market trades of flow transactions to compare prices on
    our mortgage servicing rights. Fair values of flow market
    transactions may differ from our fair value estimate for several
    reasons, including age/credit seasoning of product, perceived
    profit margin/discount assumed by aggregators, economy of scale
    benefits and cross-sell benefits.                                                                                               
|
| |  | Review and compare fair value price/multiples. We
    evaluate and compare our fair value price/multiples to market
    fair value price/multiples quoted in external surveys produced
    by third parties.                                                                                                                                                                                                                                                                                                                          
|
| |  | Reconcile actual monthly cash flows to projections. We
    reconcile actual monthly cash flows to those projected in the
    mortgage servicing rights valuation. Based upon the results of
    this reconciliation, we assess the need to modify the individual
    assumptions used in the valuation. This process ensures the
    model is calibrated to actual servicing cash flow results.                                                                                                                                       







55



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| |                                             
| | --------------------------------------------
| | Valuation of Interests in Securitized Assets









| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Prepayments  Similar to mortgage servicing
    rights, estimated prepayment speeds significantly impact the
    valuation of our retained interests in securitized assets
    because changes in actual and expected prepayment speed may
    significantly change the expected cash flows from these
    securities. For certain securities, we are able to obtain market
    information from third parties to estimate prepayment speeds. In
    other cases, we estimate prepayment speeds based upon historical
    and expected future prepayment rates.                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | Credit Losses  Expected credit losses on loans
    underlying mortgage-backed and mortgage-related asset-backed
    securities also significantly impact the estimated fair value of
    the related subordinate interests we retain. Credit losses can
    be impacted by many economic variables including unemployment,
    housing prices and other regional factors. The types of loan
    product and the interest rate environment are also key variables
    impacting our credit loss assumptions. For certain securities,
    market information for similar investments is available to
    estimate credit losses and collateral defaults (for example,
    dealer-quoted credit spreads). For other securities, we estimate
    future credit losses using internally-developed credit loss
    models, which generate indicative credit losses on the basis of
    our historical credit loss frequency and severity.
|
| |  | Discount Rate  Discount rate assumptions are
    affected primarily by changes in the assessed risk on the sold
    assets or similar assets and market interest rate movements. We
    determine discount rate assumptions using data obtained from
    market participants, where available, or based on current
    relevant treasury rates, plus an appropriate risk-adjusted
    spread, based on analysis of historical spreads on similar types
    of securities.                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | Interest Rates  Estimates of interest rates on
    variable- and adjustable-rate loans are based on spreads over an
    appropriate benchmark interest rate, usually LIBOR, using
    market-based yield curves. The movement in interest rates can
    also have a significant impact on the valuation of our retained
    interests.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             



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Results of Operations




| |                     
| | --------------------
| | Consolidated Results



| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2005 Compared to Year Ended
    December 31, 2004











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30-year










| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2004 Compared to Year Ended
    December 31, 2003







58



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Segment Results




| |                 
| | ----------------
| | GMAC Residential



|                                                     |  |                         |        |   |      |   |        |      |  |   |          |  
|---------------------------------------------------- |  | ----------------------- | ------ | - | ---- | - | ------ | ---- |  | - | -------- | -
|                                                     |  | Year Ended December 31, |       
|                                                     |  |                         |       
|                                                     |  | 2005                    |        |   | 2004 |   |        | 2003 | 
|                                                     |  |                         |        |   |      |   |        |      | 
|                                                     |  | (In millions)           |       
|Net interest income                                  |  | $                       | 289.8  |   |      | $ | 327.6  |      |  | $ | 385.7    |  
|Provision for loan losses                            |  |                         | (3.0   | ) |      |   | 2.8    |      |  |   | (8.0     | )
|Gain on sales of mortgage loans, net                 |  |                         | 447.8  |   |      |   | 497.7  |      |  |   | 1,237.7  |  
|Servicing fees                                       |  |                         | 966.8  |   |      |   | 867.3  |      |  |   | 835.8    |  
|Amortization and impairment of servicing rights      |  |                         | (539.4 | ) |      |   | (775.6 | )    |  |   | (1,555.3 | )
|Servicing asset valuation and hedge gain (loss), net |  |                         | 93.6   |   |      |   | 211.2  |      |  |   | 405.8    |  
|                                                     |  |                         |        |   |      |   |        |      | 
|Net servicing fees (loss)                            |  |                         | 521.0  |   |      |   | 302.9  |      |  |   | (313.7   | )
|Other income                                         |  |                         | 230.7  |   |      |   | 142.1  |      |  |   | 155.3    |  
|Operating expenses                                   |  |                         | (954.3 | ) |      |   | (767.5 | )    |  |   | (891.6   | )
|Income tax expense                                   |  |                         | (224.6 | ) |      |   | (225.0 | )    |  |   | (204.9   | )
|                                                     |  |                         |        |   |      |   |        |      | 
|Net income                                           |  | $                       | 307.4  |   |      | $ | 280.6  |      |  | $ | 360.5    |  
|                                                     |  |                         |        |   |      |   |        |      | 



| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2005 Compared to Year Ended
    December 31, 2004











30-year 30-year


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| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2004 Compared to Year Ended
    December 31, 2003









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| |                          
| | -------------------------
| | Residential Capital Group



|                                                     |  |                         |         |   |      |   |         |      |  |   |         |  
|---------------------------------------------------- |  | ----------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                     |  | Year Ended December 31, |        
|                                                     |  |                         |        
|                                                     |  | 2005                    |         |   | 2004 |   |         | 2003 | 
|                                                     |  |                         |         |   |      |   |         |      | 
|                                                     |  | (In millions)           |        
|Net interest income                                  |  | $                       | 1,336.2 |   |      | $ | 2,050.2 |      |  | $ | 1,581.6 |  
|Provision for loan losses                            |  |                         | (621.3  | ) |      |   | (820.0  | )    |  |   | (380.3  | )
|Gain on sales of mortgage loans, net                 |  |                         | 312.6   |   |      |   | 6.7     |      |  |   | 358.9   |  
|Servicing fees                                       |  |                         | 444.9   |   |      |   | 412.5   |      |  |   | 352.5   |  
|Amortization and impairment of servicing rights      |  |                         | (221.3  | ) |      |   | (233.5  | )    |  |   | (455.5  | )
|Servicing asset valuation and hedge gain (loss), net |  |                         | (76.4   | ) |      |   | 3.7     |      |  |   | 101.5   |  
|                                                     |  |                         |         |   |      |   |         |      | 
|Net servicing fees (loss)                            |  |                         | 147.2   |   |      |   | 182.7   |      |  |   | (1.5    | )
|Other income                                         |  |                         | 281.6   |   |      |   | 216.7   |      |  |   | (27.9   | )
|Operating expenses                                   |  |                         | (822.6  | ) |      |   | (844.6  | )    |  |   | (787.0  | )
|Income tax expense                                   |  |                         | (238.1  | ) |      |   | (302.8  | )    |  |   | (284.5  | )
|                                                     |  |                         |         |   |      |   |         |      | 
|Net income                                           |  | $                       | 395.6   |   |      | $ | 488.9   |      |  | $ | 459.3   |  
|                                                     |  |                         |         |   |      |   |         |      | 



| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2005 Compared to Year Ended
    December 31, 2004









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| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2004 Compared to Year Ended
    December 31, 2003













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| |                       
| | ----------------------
| | Business Capital Group



|                          |  |                         |        |   |      |   |       |      |  |   |       |  
|------------------------- |  | ----------------------- | ------ | - | ---- | - | ----- | ---- |  | - | ----- | -
|                          |  | Year Ended December 31, |       
|                          |  |                         |       
|                          |  | 2005                    |        |   | 2004 |   |       | 2003 | 
|                          |  |                         |        |   |      |   |       |      | 
|                          |  | (In millions)           |       
|Net interest income       |  | $                       | 147.9  |   |      | $ | 124.2 |      |  | $ | 81.2  |  
|Provision for loan losses |  |                         | (25.9  | ) |      |   | (21.0 | )    |  |   | (62.6 | )
|Other income              |  |                         | 280.6  |   |      |   | 208.8 |      |  |   | 136.0 |  
|Operating expenses        |  |                         | (81.2  | ) |      |   | (71.8 | )    |  |   | (54.7 | )
|Income tax expense        |  |                         | (120.8 | ) |      |   | (91.9 | )    |  |   | (38.2 | )
|                          |  |                         |        |   |      |   |       |      | 
|Net income                |  | $                       | 200.6  |   |      | $ | 148.3 |      |  | $ | 61.7  |  
|                          |  |                         |        |   |      |   |       |      | 



| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2005 Compared to Year Ended
    December 31, 2004













| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2004 Compared to Year Ended
    December 31, 2003





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Accounting for
Transfers and Servicing of Financial Assets and Extinguishment
of Liabilities










| |                             
| | ----------------------------
| | International Business Group



|                                                |  |                         |        |   |      |   |        |      |  |   |        |  
|----------------------------------------------- |  | ----------------------- | ------ | - | ---- | - | ------ | ---- |  | - | ------ | -
|                                                |  | Year Ended December 31, |       
|                                                |  |                         |       
|                                                |  | 2005                    |        |   | 2004 |   |        | 2003 | 
|                                                |  |                         |        |   |      |   |        |      | 
|                                                |  | (In millions)           |       
|Net interest income                             |  | $                       | 152.2  |   |      | $ | 105.5  |      |  | $ | 52.3   |  
|Provision for loan losses                       |  |                         | (1.7   | ) |      |   | (4.5   | )    |  |   | (2.2   | )
|Gain on sales of mortgage loans, net            |  |                         | 210.8  |   |      |   | 196.8  |      |  |   | 118.2  |  
|Servicing fees                                  |  |                         | (3.5   | ) |      |   | 8.6    |      |  |   | (4.0   | )
|Amortization and impairment of servicing rights |  |                         | (0.3   | ) |      |   | 0.5    |      |  |   | 0.1    |  
|Servicing asset valuation and hedge gain, net   |  |                         |       |   |      |   |       |      |  |   |       |  
|                                                |  |                         |        |   |      |   |        |      | 
|Net servicing fees (loss)                       |  |                         | (3.8   | ) |      |   | 9.1    |      |  |   | (3.9   | )
|Other income                                    |  |                         | 25.1   |   |      |   | (29.0  | )    |  |   | 11.9   |  
|Operating expenses                              |  |                         | (253.3 | ) |      |   | (200.5 | )    |  |   | (138.6 | )
|Income tax expense                              |  |                         | (39.2  | ) |      |   | (26.1  | )    |  |   | (13.7  | )
|                                                |  |                         |        |   |      |   |        |      | 
|Net income                                      |  | $                       | 90.1   |   |      | $ | 51.3   |      |  | $ | 24.0   |  
|                                                |  |                         |        |   |      |   |        |      | 



| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2005 Compared to Year Ended
    December 31, 2004







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| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2004 Compared to Year Ended
    December 31, 2003











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| |                    
| | -------------------
| | Corporate and Other



|                                                      |  |                         |        |   |      |   |        |      |  |   |        |  
|----------------------------------------------------- |  | ----------------------- | ------ | - | ---- | - | ------ | ---- |  | - | ------ | -
|                                                      |  | Year Ended December 31, |       
|                                                      |  |                         |       
|                                                      |  | 2005                    |        |   | 2004 |   |        | 2003 | 
|                                                      |  |                         |        |   |      |   |        |      | 
|                                                      |  | (In millions)           |       
|Net interest expense                                  |  | $                       | (1.1   | ) |      | $ | (21.6  | )    |  | $ | (20.8  | )
|Provision for loan losses                             |  |                         |       |   |      |   | (0.2   | )    |  |   | (0.4   | )
|Gain (loss) on sales of loans                         |  |                         | 65.5   |   |      |   | (5.9   | )    |  |   | 30.3   |  
|Servicing fees                                        |  |                         | 8.1    |   |      |   | 7.6    |      |  |   | 2.7    |  
|Mortgage servicing rights amortization and impairment |  |                         | (0.9   | ) |      |   | 5.3    |      |  |   | (4.2   | )
|                                                      |  |                         |        |   |      |   |        |      | 
|Net servicing fees (loss)                             |  |                         | 7.2    |   |      |   | 12.9   |      |  |   | (1.5   | )
|Other income                                          |  |                         | 435.8  |   |      |   | 482.3  |      |  |   | 400.2  |  
|Operating expenses                                    |  |                         | (496.9 | ) |      |   | (472.0 | )    |  |   | (488.7 | )
|Income tax expense                                    |  |                         | 16.4   |   |      |   | 3.6    |      |  |   | 32.2   |  
|                                                      |  |                         |        |   |      |   |        |      | 
|Net income (loss)                                     |  | $                       | 26.9   |   |      | $ | (0.9   | )    |  | $ | (48.7  | )
|                                                      |  |                         |        |   |      |   |        |      | 









Asset Quality




| |                          
| | -------------------------
| | Allowance for Loan Losses



67



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two-to






|                                    |  |                |         |   |             |   |       |       |  |   |         |  
|----------------------------------- |  | -------------- | ------- | - | ----------- | - | ----- | ----- |  | - | ------- | -
|                                    |  | Mortgage Loans |         |   |             |   |      
|                                    |  | Held for       |         |   | Lending     |   |       |      
|                                    |  | Investment     |         |   | Receivables |   |       | Total | 
|                                    |  |                |         |   |             |   |       |       | 
|                                    |  | (In millions)  |        
|Balance at January 1, 2003          |  | $              | 256.1   |   |             | $ | 79.7  |       |  | $ | 335.8   |  
|Provision for loan losses           |  |                | 411.9   |   |             |   | 41.6  |       |  |   | 453.5   |  
|Charge-offs                         |  |                | (179.1  | ) |             |   | (12.1 | )     |  |   | (191.2  | )
|Recoveries                          |  |                | 2.1     |   |             |   | 17.8  |       |  |   | 19.9    |  
|                                    |  |                |         |   |             |   |       |       | 
|Balance at December 31, 2003        |  |                | 491.0   |   |             |   | 127.0 |       |  |   | 618.0   |  
|Provision for loan losses           |  |                | 811.7   |   |             |   | 31.2  |       |  |   | 842.9   |  
|Charge-offs                         |  |                | (440.4  | ) |             |   | (20.2 | )     |  |   | (460.6  | )
|Recoveries                          |  |                | 10.6    |   |             |   | 3.8   |       |  |   | 14.4    |  
|                                    |  |                |         |   |             |   |       |       | 
|Balance at December 31, 2004        |  |                | 872.9   |   |             |   | 141.8 |       |  |   | 1,014.7 |  
|Provision for loan losses           |  |                | 599.8   |   |             |   | 52.0  |       |  |   | 651.8   |  
|Charge-offs                         |  |                | (443.8  | ) |             |   | (6.8  | )     |  |   | (450.6  | )
|Recoveries                          |  |                | 37.0    |   |             |   | 0.4   |       |  |   | 37.4    |  
|                                    |  |                |         |   |             |   |       |       | 
|Balance at December 31, 2005        |  | $              | 1,065.9 |   |             | $ | 187.4 |       |  | $ | 1,253.3 |  
|                                    |  |                |         |   |             |   |       |       | 
|Allowance as a percentage of total: |  |                |         |   |             |   |       |       |  |   |         |  
|December 31, 2003                   |  |                | 1.06    | % |             |   | 1.52  | %     |  |   | 1.13    | %
|December 31, 2004                   |  |                | 1.51    | % |             |   | 1.49  | %     |  |   | 1.51    | %
|December 31, 2005                   |  |                | 1.55    | % |             |   | 1.38  | %     |  |   | 1.52    | %

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|                      |                      |                         |        |        |      |   |        |        |   |   |        |        |  
|--------------------- | -------------------- | ----------------------- | ------ | ------ | ---- | - | ------ | ------ | - | - | ------ | ------ | -
|                      |                      | Year Ended December 31, |       
|                      |                      |                         |       
|                      |                      | 2005                    |        |        | 2004 |   |        | 2003   |  
|                      |                      |                         |        |        |      |   |        |        |  
|                      |                      | (In millions)           |       
|Mortgage loans:       |                      |                         |        |        |      |   |        |        |   |   |        |       
|                      | Prime conforming     |                         | $      | (0.1   | )    |   | $      |       |   |   | $      |       |  
|                      | Prime non-conforming |                         |        | (29.5  | )    |   |        | (44.7  | ) |   |        | (13.6  | )
|                      | Prime second-lien    |                         |        | (7.2   | )    |   |        | (8.5   | ) |   |        | (6.7   | )
|                      | Government           |                         |        |       |      |   |        | (0.2   | ) |   |        |       |  
|                      | Nonprime             |                         |        | (370.0 | )    |   |        | (376.4 | ) |   |        | (156.7 | )
|Lending receivables:  |                      |                         |        |        |      |   |        |        |   |   |        |       
|                      | Warehouse            |                         |        | (0.5   | )    |   |        | 3.0    |   |   |        | 16.4   |  
|                      | Construction         |                         |        | (1.9   | )    |   |        | (18.9  | ) |   |        | (3.2   | )
|                      | Healthcare           |                         |        |       |      |   |        |       |   |   |        | (3.8   | )
|                      | Other                |                         |        | (4.0   | )    |   |        | (0.5   | ) |   |        | (3.7   | )
|                      |                      |                         |        |        |      |   |        |        |  
|Total Net Charge-Offs |                      | $                       | (413.2 | )      |      | $ | (446.2 | )      |   | $ | (171.3 | )     
|                      |                      |                         |        |        |      |   |        |        |  



| |                     
| | --------------------
| | Nonperforming Assets





|                                                           |                      |                      |         |   |         |   |         |   |         | 
|---------------------------------------------------------- | -------------------- | -------------------- | ------- | - | ------- | - | ------- | - | ------- | 
|                                                           |                      | As of December 31,   |        
|                                                           |                      |                      |        
|                                                           |                      | 2005                 |         |   | 2004    |  
|                                                           |                      |                      |         |   |         |  
|                                                           |                      | (In millions)        |        
|Nonaccrual loans:                                          |                      |                      |         |   |         |   |         |  
|                                                           | Mortgage loans:      |                      |         |   |         |   |         |   |        
|                                                           |                      | Prime conforming     |         | $ | 9.8     |   |         | $ | 16.9    | 
|                                                           |                      | Prime non-conforming |         |   | 361.7   |   |         |   | 197.8   | 
|                                                           |                      | Government           |         |   | 0.1     |   |         |   | 26.3    | 
|                                                           |                      | Prime second-lien    |         |   | 84.8    |   |         |   | 46.1    | 
|                                                           |                      | Nonprime*            |         |   | 5,730.7 |   |         |   | 4,327.1 | 
|                                                           | Lending receivables: |                      |         |   |         |   |         |   |        
|                                                           |                      | Warehouse            |         |   | 41.8    |   |         |   | 4.6     | 
|                                                           |                      | Construction**       |         |   | 8.6     |   |         |   |        | 
|                                                           |                      | Healthcare           |         |   | 17.0    |   |         |   | 1.9     | 
|                                                           |                      |                      |         |   |         |  
|Total nonaccrual loans                                     |                      |                      | 6,254.5 |   |         |   | 4,620.7 |  
|Restructured loans                                         |                      |                      | 22.8    |   |         |   |        |  
|Foreclosed assets                                          |                      |                      | 506.5   |   |         |   | 455.8   |  
|                                                           |                      |                      |         |   |         |  
|Total nonperforming assets                                 |                      | $                    | 6,783.8 |   |         | $ | 5,076.5 |  
|                                                           |                      |                      |         |   |         |  
|Total nonperforming assets as a percentage of total assets |                      |                      | 5.7     | % |         |   | 5.4     | %
|                                                           |                      |                      |         |   |         |  






|   |                                                                                                                                                                                 
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*  | Includes $374.1 million (as of December 31, 2005) and
    $908.7 million (as of December 31, 2004) of loans that
    were purchased distressed and already in nonaccrual status.
|  
|** | The $8.6 million loan on nonaccrual status as of
    December 31, 2005 was also a restructured loan.                                                                            

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|                               |                 |                       |        |            |       |  |        |        |            |   |        |       |  |  |        |      | 
|------------------------------ | --------------- | --------------------- | ------ | ---------- | ----- |  | ------ | ------ | ---------- | - | ------ | ----- |  |  | ------ | ---- | 
|                               |                 | As of December 31,    |       
|                               |                 |                       |       
|                               |                 | 2005                  |        |            | 2004  | 
|                               |                 |                       |        |            |       | 
|                               |                 |                       |        | Percent of |       |  |        |        | Percent of |  
|                               |                 | Amount                |        |            | Total |  |        | Amount |            |   | Total  |      
|                               |                 |                       |        |            |       |  |        |        |            |   |        |      
|                               |                 | (Dollars in millions) |       
|Current                        |                 | $                     | 56,576 |            |       |  | 83.3%  |        |            | $ | 48,815 |       |  |  | 86.3%  |     
|Past due:                      |                 |                       |        |            |       |  |        |        |            |   |        |       |  |  |        |     
|                               | 30 to 59 days   |                       |        | 4,773      |       |  |        | 7.0%   |            |   |        | 3,348 |  |  |        | 5.9% | 
|                               | 60 to 89 days   |                       |        | 1,528      |       |  |        | 2.2%   |            |   |        | 1,133 |  |  |        | 2.0% | 
|                               | 90 days or more |                       |        | 2,258      |       |  |        | 3.3%   |            |   |        | 1,043 |  |  |        | 1.8% | 
|Foreclosures pending           |                 |                       | 1,356  |            |       |  | 2.0%   |        |            |   | 1,280  |       |  |  | 2.3%   |     
|Bankruptcies                   |                 |                       | 1,520  |            |       |  | 2.2%   |        |            |   | 984    |       |  |  | 1.7%   |     
|                               |                 |                       |        |            |       |  |        |        |            |   |        |      
|Total unpaid principal balance |                 |                       | 68,011 |            |       |  | 100.0% |        |            |   | 56,603 |       |  |  | 100.0% |     
|                               |                 |                       |        |            |       |  |        |        |            |   |        |      
|Net premiums                   |                 |                       | 948    |            |       |  |        |        |            |   | 1,105  |       |  |  |        |     
|                               |                 |                       |        |            |       |  |        |        |            |   |        |      
|Total                          |                 | $                     | 68,959 |            |       |  |        |        |            | $ | 57,708 |       |  |  |        |     
|                               |                 |                       |        |            |       |  |        |        |            |   |        |      







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interest-only loan-to


|                                                                  |                                                     |                    |   |          |      |  |   |          | 
|----------------------------------------------------------------- | --------------------------------------------------- | ------------------ | - | -------- | ---- |  | - | -------- | 
|                                                                  |                                                     | Unpaid Principal   |  
|                                                                  |                                                     | as of December 31, |  
|                                                                  |                                                     |                    |  
|                                                                  |                                                     | 2005               |   |          | 2004 | 
|                                                                  |                                                     |                    |   |          |      | 
|                                                                  |                                                     | (In millions)      |  
|Mortgage Loans Held for Sale  Domestic                           |                                                     |                    |   |          |      |  |   |         
|                                                                  | Interest-only mortgage loans                        |                    | $ | 3,316.3  |      |  | $ | 2,330.0  | 
|                                                                  | Option adjustable rate mortgage loans               |                    |   | 1,097.6  |      |  |   | 11.7     | 
|                                                                  | High loan-to-value (100% or more) mortgage loans    |                    |   | 391.7    |      |  |   | 452.4    | 
|                                                                  | Below market initial rate (teaser) mortgage loans |                    |   | 16.6     |      |  |   | 5.4      | 
|                                                                 
|Mortgage Loans Held for Investment  Domestic                     |                                                     |                    |   |          |      |  |   |         
|                                                                  | Interest-only mortgage loans                        |                    |   | 11,118.9 |      |  |   | 2,442.5  | 
|                                                                  | Option adjustable rate mortgage loans               |                    |   | 16.3     |      |  |   |         | 
|                                                                  | High loan-to-value (100% or more) mortgage loans    |                    |   | 12,904.7 |      |  |   | 14,595.4 | 
|                                                                  | Below market initial rate (teaser) mortgage loans |                    |   | 394.8    |      |  |   | 698.6    | 
|                                                                 
|Mortgage Loans  Held for Sale and Investment 
    International |                                                     |                    |   |          |      |  |   |         
|                                                                  | Interest-only mortgage loans                        |                    |   | 4,925.9  |      |  |   | 3,602.8  | 
|                                                                  | Option adjustable rate mortgage loans               |                    |   |         |      |  |   |         | 
|                                                                  | High loan-to-value (100% or more) mortgage loans    |                    |   | 67.9     |      |  |   | 28.1     | 
|                                                                  | Below market initial rate (teaser) mortgage loans |                    |   |         |      |  |   |         | 

71



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|                                                    |  |                    |          |  |      |   |          | 
|--------------------------------------------------- |  | ------------------ | -------- |  | ---- | - | -------- | 
|                                                    |  | Loan Production    |         
|                                                    |  | for the Year       |         
|                                                    |  | Ended December 31, |         
|                                                    |  |                    |         
|                                                    |  | 2005               |          |  | 2004 |  
|                                                    |  |                    |          |  |      |  
|                                                    |  | (In millions)      |         
|Interest-only mortgage loans                        |  | $                  | 43,298.1 |  |      | $ | 15,781.6 | 
|Option adjustable rate mortgage loans               |  |                    | 5,076.7  |  |      |   | 5.9      | 
|High loan-to-value (100% or more) mortgage loans    |  |                    | 6,610.1  |  |      |   | 9,472.6  | 
|Below market initial rate (teaser) mortgage loans |  |                    | 536.6    |  |      |   | 638.1    | 



Liquidity and Capital Resources




| |                                 
| | --------------------------------
| | Liquidity and Capital Management







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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We restructured our domestic credit facility with GMAC. GMAC
    contributed $2.0 billion of equity to ResCap by forgiving a
    portion of the existing borrowings. The remaining domestic
    intercompany borrowings were converted from a single revolving
    facility to a $5.0 billion
    10-year subordinated
    note, a $1.5 billion
    1-year term loan and a
    $2.5 billion
    2-year revolving line
    of credit. In the second quarter of 2005, the subordinated note
    and the term loan were funded.                                                                                                                         
|
| |  | We issued $4.0 billion of unsecured debt in June 2005. The
    proceeds from the notes were used to repay a portion of our
    domestic GMAC credit facility as well as for general corporate
    purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | We obtained $3.5 billion in syndicated bank credit
    facilities. These credit facilities are comprised of a
    $1.75 billion term loan due in 2008, an $875 million
    revolving credit facility due in 2006 and an $875 million
    revolving credit facility due in 2008. At the closing of the
    credit facilities in July 2005, we borrowed the entire
    $1.75 billion under the term loan and repaid all amounts
    then outstanding under the $1.5 billion term loan from GMAC
    referred to above in the first bullet point plus accrued
    interest.                                                                             
|
| |  | We filed a $12.0 billion shelf registration statement so
    that we may offer from time to time senior and/or subordinated
    debt securities. We issued $1.25 billion of unsecured debt
    from this shelf registration statement in November 2005, and
    used the proceeds to repay $620 million under the
    subordinated note held by GMAC and the remainder for general
    corporate purposes. We issued $1.75 billion of unsecured
    debt from this shelf registration in February 2006, and intend
    to use the proceeds for general corporate purposes, which may
    include the repayment of a portion of the subordinated debt.
|
| |  | We terminated our $2.5 billion 2-year revolving line of
    credit with GMAC in December 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | We made a $250 million payment on the subordinated note
    held by GMAC in December 2005. The balance of this note was
    $4.1 billion as of December 31, 2005. In February
    2006, we made a $500 million payment on the subordinated note to
    reduce the balance to $3.6 billion.                                                                                                                                                                                                                                                                                                                                                           





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| |                
| | ---------------
| | Funding Sources



|                                                   |                               |                   |          |           |      |   |          |           | 
|-------------------------------------------------- | ----------------------------- | ----------------- | -------- | --------- | ---- | - | -------- | --------- | 
|                                                   |                               | Outstanding as of |         
|                                                   |                               | December 31,      |         
|                                                   |                               |                   |         
|                                                   |                               | 2005              |          |           | 2004 |  
|                                                   |                               |                   |          |           |      |  
|                                                   |                               | (In millions)     |         
|Collateralized borrowings in securitization trusts |                               | $                 | 56,097.8 |           |      | $ | 50,708.5 |          
|Short-term secured borrowings                      |                               |                   | 24,675.0 |           |      |   | 17,718.0 |          
|Short-term unsecured non-affiliate borrowings      |                               |                   | 1,277.1  |           |      |   | 4,292.5  |          
|Long-term secured borrowings                       |                               |                   | 4,738.6  |           |      |   |         |          
|Long-term unsecured non-affiliate borrowings       |                               |                   | 7,181.8  |           |      |   | 186.1    |          
|FHLB advances  short term                         |                               |                   | 1,506.0  |           |      |   | 853.0    |          
|FHLB advances  long term                          |                               |                   | 2,922.0  |           |      |   | 654.0    |          
|Affiliate borrowings  short term                  |                               |                   | 1,047.5  |           |      |   | 10,006.2 |          
|Affiliate subordinated borrowings  long term      |                               |                   | 4,130.0  |           |      |   |         |          
|                                                   |                               |                   |          |           |      |  
|                                                   | Total borrowings              |                   |          | 103,575.8 |      |   |          | 84,418.3  | 
|Bank deposits                                      |                               |                   | 4,123.3  |           |      |   | 1,665.0  |          
|                                                   |                               |                   |          |           |      |  
|                                                   | Total borrowings and deposits |                   |          | 107,699.1 |      |   |          | 86,083.3  | 
|Off-balance sheet financings                       |                               |                   | 78,290.7 |           |      |   | 61,091.4 |          
|                                                   |                               |                   |          |           |      |  
|                                                   | Total                         |                   | $        | 185,989.8 |      |   | $        | 147,174.7 | 
|                                                   |                               |                   |          |           |      |  



| |                                                   
| | --------------------------------------------------
| | Collateralized Borrowings in Securitization Trusts







| |                              
| | -----------------------------
| | Short-Term Secured Borrowings



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|                                     |                                     |                   |         |          |      |   |         |          | 
|------------------------------------ | ----------------------------------- | ----------------- | ------- | -------- | ---- | - | ------- | -------- | 
|                                     |                                     | Outstanding as of |        
|                                     |                                     | December 31,      |        
|                                     |                                     |                   |        
|                                     |                                     | 2005              |         |          | 2004 |  
|                                     |                                     |                   |         |          |      |  
|                                     |                                     | (In millions)     |        
|Mortgage Interest Networking Trust   |                                     | $                 | 6,741.3 |          |      | $ | 5,811.1 |         
|Mortgage Asset Lending Agreement     |                                     |                   | 1,873.6 |          |      |   | 1,940.0 |         
|Other secured aggregation facilities |                                     |                   | 4,532.5 |          |      |   | 2,116.8 |         
|Repurchase agreements                |                                     |                   | 9,896.7 |          |      |   | 6,598.5 |         
|Other                                |                                     |                   | 1,630.9 |          |      |   | 1,251.6 |         
|                                     |                                     |                   |         |          |      |  
|                                     | Total excluding FHLB advances       |                   |         | 24,675.0 |      |   |         | 17,718.0 | 
|FHLB advances                        |                                     |                   | 1,506.0 |          |      |   | 853.0   |         
|                                     |                                     |                   |         |          |      |  
|                                     | Total short-term secured borrowings |                   | $       | 26,181.0 |      |   | $       | 18,571.0 | 
|                                     |                                     |                   |         |          |      |  



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Mortgage Interest Networking Trust, or MINT, is a secured
    aggregation vehicle administered by GMAC Mortgage Group, Inc.
    that provides us with financing for mortgage loans during the
    aggregation period and for warehouse lending receivables. MINT
    obtains financing through the issuance of asset-backed
    commercial paper and similar discounted notes (MITTENs), both of
    which are secured by the mortgage loans and warehouse lending
    receivables. As of December 31, 2005, MINT had
    364-day bank liquidity
    commitments of $3.0 billion backing the commercial paper
    issued.                                                                                                                                                                                                                                                                                                                                    
|
| |  | The Mortgage Asset Lending Agreement, or MALA, is a secured
    aggregation facility that funds residential mortgage loans,
    during the aggregation period. The facility receives funding
    from a syndicate of asset-backed commercial paper vehicles. MALA
    shares a funding commitment with Receivables Lending Agreement,
    or RLA, an asset-backed commercial paper facility that funds our
    warehouse lending receivables. In November 2005, the existing
    RLA facility was terminated and a new facility under the same
    name created. The previous facility was accounted for as an
    off-balance sheet facility. The MALA and RLA facilities have
    both short-term and
    long-term commitments.
    The two facilities had aggregate liquidity commitments of
    $9.8 billion as of December 31, 2005, which were
    divided into a one-year commitment of $3.7 billion and a
    three-year commitment of $6.1 billion.
|
| |  | Other secured aggregation facilities include certain facilities
    to fund mortgage loans prior to their sale or securitization. As
    of December 31, 2005, in addition to MINT, MALA and RLA, we
    had $2.0 billion of liquidity commitments to fund
    second-lien mortgage loans, £3.0 billion of liquidity
    commitments to fund loans in the United Kingdom and
    1.2 billion of liquidity commitments to fund loans
    originated in The Netherlands and Germany.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | We have developed numerous relationships with banks and
    securities firms to provide funding for mortgage loans and other
    securities through repurchase agreements and other similar
    arrangements on a domestic and international basis. Borrowings
    under these agreements are provided on either a committed or an
    uncommitted basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | Other short-term secured borrowings include facilities that fund
    construction lending receivables, for which we had aggregate
    liquidity commitments of $1.3 billion as of
    December 31, 2005. In addition, we have arranged facilities
    to fund mortgage servicing rights and mortgage servicing
    advances either on a committed or uncommitted basis. These
    facilities provided aggregate liquidity commitments of
    $1.8 billion as of December 31, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

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|                                        |       |                            |          |                |                     |   |          |          |  |   |         |         |  |   |          |          | 
|--------------------------------------- | ----- | -------------------------- | -------- | -------------- | ------------------- | - | -------- | -------- |  | - | ------- | ------- |  | - | -------- | -------- | 
|                                        |       |                            |          | Unused Secured |                    
|                                        |       | Secured Committed          |          |                | Committed Liquidity |  
|                                        |       | Liquidity Facilities as of |          |                | Facilities as of    |  
|                                        |       | December 31,               |          |                | December 31,        |  
|                                        |       |                            |          |                |                     |  
|                                        |       | 2005                       |          |                | 2004                |   |          | 2005     |  |   | 2004    |        
|                                        |       |                            |          |                |                     |   |          |          |  |   |         |        
|                                        |       | (In millions)              |         
|Mortgage loans and warehouse lending(a) |       | $                          | 23,739.8 |                |                     | $ | 19,772.1 |          |  | $ | 9,456.0 |         |  | $ | 12,392.1 |         
|Construction lending receivables        |       |                            | 1,275.0  |                |                     |   | 800.0    |          |  |   | 220.0   |         |  |   | 100.0    |         
|Other(b)                                |       |                            | 2,625.0  |                |                     |   | 1,725.0  |          |  |   | 246.9   |         |  |   | 688.1    |         
|                                        |       |                            |          |                |                     |   |          |          |  |   |         |        
|                                        | Total |                            | $        | 27,639.8       |                     |   | $        | 22,297.1 |  |   | $       | 9,922.9 |  |   | $        | 13,180.2 | 
|                                        |       |                            |          |                |                     |   |          |          |  |   |         |        






|    |  |                                                                                    
|--- |  | -----------------------------------------------------------------------------------
|(a) |  | Facilities to fund mortgage loan and warehouse lending
    receivables.            
|   
|(b) |  | Facilities to fund servicing advances, servicing rights and
    residual interests.



| |                                
| | -------------------------------
| | Short-Term Unsecured Borrowings



|                         |                                       |                   |         |         |      |   |          |          | 
|------------------------ | ------------------------------------- | ----------------- | ------- | ------- | ---- | - | -------- | -------- | 
|                         |                                       | Outstanding as of |        
|                         |                                       | December 31,      |        
|                         |                                       |                   |        
|                         |                                       | 2005              |         |         | 2004 |  
|                         |                                       |                   |         |         |      |  
|                         |                                       | (In millions)     |        
|Affiliate borrowings     |                                       | $                 | 1,047.5 |         |      | $ | 10,006.2 |         
|Lines of credit          |                                       |                   | 447.4   |         |      |   | 1,131.4  |         
|Investor custodial funds |                                       |                   | 121.0   |         |      |   | 1,915.1  |         
|International borrowings |                                       |                   | 601.6   |         |      |   | 334.2    |         
|Other                    |                                       |                   | 107.1   |         |      |   | 911.8    |         
|                         |                                       |                   |         |         |      |  
|                         | Total short-term unsecured borrowings |                   | $       | 2,324.6 |      |   | $        | 14,298.7 | 
|                         |                                       |                   |         |         |      |  









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| |                               
| | ------------------------------
| | Long-Term Unsecured Borrowings







|                                |       |                   |         |         |      |   |   |   | 
|------------------------------- | ----- | ----------------- | ------- | ------- | ---- | - | - | - | 
|                                |       | Outstanding as of
|                                |       | December 31,     
|                                |       |                  
|                                |       | 2005              |         |         | 2004
|                                |       |                   |         |         |     
|                                |       | (In millions)    
|Senior unsecured notes          |       | $                 | 5,150.5 |         |      | $ |  |  
|Term loan                       |       |                   | 1,750.0 |         |      |   |  |  
|International medium-term notes |       |                   | 281.3   |         |      |   |  |  
|                                |       |                   |         |         |      |  
|                                | Total |                   | $       | 7,181.8 |      |   | $ |  | 
|                                |       |                   |         |         |      |  







| |                                
| | -------------------------------
| | Bank Deposits and FHLB Advances





| |                     
| | --------------------
| | Affiliate Borrowings



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| |                             
| | ----------------------------
| | Off-Balance Sheet Financings







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Walnut Grove Funding is a secured aggregation facility that
    funds home equity loans, home equity lines of credit, high
    loan-to-value mortgage
    loans and certain non-conforming fixed rate mortgage loans
    through the issuance of asset-backed commercial paper. Walnut
    Grove Funding provided $582.6 million of funding as of
    December 31, 2005 and $235.6 million as of
    December 31, 2004, and was permitted to finance a maximum
    of $600 million as of December 31, 2005 and
    December 31, 2004.
|
| |  | Horsham Funding is a facility that funds defaulted government
    insured or guaranteed residential mortgage loans repurchased
    through the issuance of asset-backed commercial paper. Horsham
    Funding provided $134.6 million of funding as of
    December 31, 2005 and $184.5 million as of
    December 31, 2004, and was permitted to finance a maximum
    amount of $250 million as of December 31, 2005 and
    $500 million as of December 31, 2004.                                                                 



| |               
| | --------------
| | Credit Ratings



|              |  |            |             |   |        |  |      |         |  |  |                    | 
|------------- |  | ---------- | ----------- | - | ------ |  | ---- | ------- |  |  | ------------------ | 
|              |  | Commercial |             |   | Senior |  |      |        
|Rating Agency |  | Paper      |             |   | Debt   |  |      | Outlook | 
|              |  |            |             |   |        |  |      |         | 
|Fitch         |  |            | F3          |   |        |  | BBB- |         |  |  | Evolving           | 
|Moodys       |  |            | P3          |   |        |  | Baa3 |         |  |  | Possible Downgrade | 
|S&P           |  |            | A-3         |   |        |  | BBB- |         |  |  | Developing         | 
|DBRS          |  |            | R- 2(middle | ) |        |  | BBB  |         |  |  | Developing         | 







| |                                 
| | --------------------------------
| | Purchase Obligations and Options



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Asset Performance Conditional Calls  In
    certain of our securitizations, we retain the option (but not an
    obligation) to purchase specific mortgage loans that become
    delinquent beyond a specified period of time, as set forth in
    the transaction legal documents (typically 90 days).
    Mortgage loans are purchased after the option becomes
    exercisable when it is in our economic interest to do so. We
    purchased an aggregate of $99 million of mortgage loans in
    2005 and $137 million in 2004 under these provisions.                                                         
|
| |  | Cleanup Calls  In each of our securitizations,
    we retain a cleanup call option that allows the servicer to
    purchase the remaining transferred assets once such assets reach
    a minimal level and the cost of servicing those assets becomes
    burdensome in relation to the benefits of servicing (defined as
    a specified percentage of the original principal balance). We
    choose to exercise cleanup calls when it is in our economic
    interest to do so. We purchased $2.2 billion of assets
    under these cleanup call provisions in 2005 and
    $3.8 billion of such assets in 2004.





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| |           
| | ----------
| | Guarantees



Aggregate Contractual Obligations


|                                                           |           |                        |           |           |        |   |          |           |           |   |           |         |  |         |         |         |  |   |          |          | 
|---------------------------------------------------------- | --------- | ---------------------- | --------- | --------- | ------ | - | -------- | --------- | --------- | - | --------- | ------- |  | ------- | ------- | ------- |  | - | -------- | -------- | 
|                                                           |           | Payments Due by Period |          
|                                                           |           |                        |          
|                                                           |           |                        |           | Less than |        |   |          |           | More than |  
|As of December 31, 2005                                    |           | Total                  |           |           | 1 Year |   |          | 1-3 Years |           |   | 3-5 Years |         |  | 5 Years |        
|                                                           |           |                        |           |           |        |   |          |           |           |   |           |         |  |         |        
|                                                           |           | (In millions)          |          
|Description of obligation:                                 |           |                        |           |           |        |   |          |           |           |   |           |         |  |         |         |         |  |   |          |         
|Debt                                                       |           |                        |           |           |        |   |          |           |           |   |           |         |  |         |         |         |  |   |          |         
|                                                           | Unsecured |                        | $         | 11,309.1  |        |   | $        | 56.4      |           |   | $         | 4,223.0 |  |         | $       | 2,422.9 |  |   | $        | 4,606.8  | 
|                                                           | Secured   |                        |           | 63,788.4  |        |   |          | 352.7     |           |   |           | 5,406.6 |  |         |         | 1,145.0 |  |   |          | 56,884.1 | 
|Lease commitments                                          |           |                        | 312.1     |           |        |   | 86.1     |           |           |   | 126.9     |         |  |         | 49.7    |         |  |   | 49.4     |         
|Mortgage purchase and sale commitments                     |           |                        | 21,004.3  |           |        |   | 20,934.3 |           |           |   |          |         |  |         |        |         |  |   | 70.0     |         
|Lending commitments                                        |           |                        | 15,503.5  |           |        |   | 8,975.4  |           |           |   | 1,398.5   |         |  |         | 638.1   |         |  |   | 4,491.5  |         
|Commitment to remit cash flows on certain loan portfolios  |           |                        | 4,304.8   |           |        |   |         |           |           |   |          |         |  |         |        |         |  |   | 4,304.8  |         
|Commitments to provide capital to equity method investees  |           |                        | 213.2     |           |        |   | 4.0      |           |           |   |          |         |  |         | 106.9   |         |  |   | 102.3    |         
|Purchase obligations*                                      |           |                        | 372.8     |           |        |   | 135.9    |           |           |   | 209.5     |         |  |         | 19.6    |         |  |   | 7.8      |         
|Commitments to fund development of lots and/or model homes |           |                        | 308.8     |           |        |   | 50.2     |           |           |   | 234.4     |         |  |         | 24.2    |         |  |   |         |         
|Bank certificates of deposit                               |           |                        | 1,603.6   |           |        |   | 1,328.2  |           |           |   | 270.6     |         |  |         | 2.8     |         |  |   | 2.0      |         
|                                                           |           |                        |           |           |        |   |          |           |           |   |           |         |  |         |        
|Total                                                      |           | $                      | 118,720.6 |           |        | $ | 31,923.2 |           |           | $ | 11,869.5  |         |  | $       | 4,409.2 |         |  | $ | 70,518.7 |         
|                                                           |           |                        |           |           |        |   |          |           |           |   |           |         |  |         |        






|  |                                                                                                                   
|- | ------------------------------------------------------------------------------------------------------------------
|* | Includes purchase obligations covered by non-cancellable
    contracts and contracts containing cancellation fees.

Recently Issued Accounting Standards


Statement of Position 03-3 Accounting for Certain Loans or
Debt Securities Acquired in a Transfer


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Statement of Financial Accounting Standards
No. 154 Accounting Changes and Error
Corrections


Financial Accounting Standards Board Staff Position
Nos. 115-1 and
124-1 115-1 124-1, The Meaning
of Other-Than-Temporary Impairment and Its Application to
Certain Investments The Meaning of Other-Than-Temporary Impairment and Its
Application to Certain Investments 03-1). 115-1 124-1 115-1 124-1


Statement of Financial Accounting Standards
No. 155 Accounting
for Certain Hybrid Financial Instruments (SFAS 155),


Statement of Financial Accounting Standards
No. 156 Accounting for Servicing of Financial Assets
(SFAS 156)


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|         |                                                                
|-------- | ---------------------------------------------------------------
|Item 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
    RISK.









| |                                                                    
| | -------------------------------------------------------------------
| | Interest Rate Lock Commitments and Mortgage Loans Held for
    Sale





| |                                                           
| | ----------------------------------------------------------
| | Mortgage Servicing Rights and Other Retained
    Interests



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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | U.S. Treasury Securities: notes and bonds with maturities
    ranging from 10 to 30 years. As interest rates decline, the
    value of these securities increase.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | Principal-Only Securities: the right to receive
    principal-only cash flows from a mortgage-backed security.
    Principal-only securities are sold at a deep discount from face
    value. As interest rates decline, prepayments increase the value
    of the principal-only securities. This increase in value results
    in an offset to the decline in value of the mortgage servicing
    rights. As interest rates rise, prepayments decline and the
    value of the principal-only securities decline as well. The
    decrease in value of the principal-only securities results in an
    offset to the increase in value of the mortgage servicing rights.
|
| | Long Interest Rate Futures Contracts: a futures contract
    is a guarantee of a transaction at a date in the future for an
    underlying Treasury debt security or Eurodollar contract. As
    interest rates decline, the futures contracts value
    increases and when rates rise, the contracts value
    declines. The increase or decrease in value of futures contracts
    result in an offset to the increase or decrease in the value of
    the mortgage servicing rights.                                                                                                                                                                                 
|
| | Long Call Options on U.S. Treasuries or Interest Rate
    Swaps: the right to buy the underlying assets by a certain
    date for a certain price. These instruments are purchased either
    via an exchange or over the counter and have maturities of less
    than one year. The option value increases as the underlying
    benchmark Treasurys or swaps interest rate declines.                                                                                                                                                                                                                                                                                  
|
| | Long Put Options on U.S. Treasuries or Interest Rate
    Swaps: the right to sell the underlying assets by a certain
    date for a certain price. These instruments are purchased either
    via an exchange or over the counter and have maturities of less
    than one year. The option value increases as the underlying
    Treasurys or swaps interest rate rises.                                                                                                                                                                                                                                                                                               
|
| | Long Mortgage-Backed Securities, U.S. Treasury and LIBOR
    Futures: an exchange traded derivative financial instrument
    to purchase a financial instrument at a certain future date for
    a specified price. Margins on futures are settled daily.
    Generally, the futures are rolled into subsequent issues (i.e.,
    we do not take delivery of the underlying instrument). As
    interest rates decline, the value of the futures contract and
    the underlying instrument increase in value. This increase in
    value offsets the declines in value of the mortgage servicing
    rights.                                                             
|
| | Interest Rate Floors: the right to receive cash if
    interest rates decline beyond a specified rate. As rates
    decline, the value of the floor increases. If rates decline
    below the floor rate, the seller of the floor pays us the
    difference between the market interest rate and the floor rate
    multiplied by the notional amount of the floor contract.                                                                                                                                                                                                                                                                                             
|
| | Interest Rate Caps: the right to receive cash if interest
    rates rise above a specified rate. The caps are purchased to
    adjust the profile of the overall hedge position and to limit
    devaluation of the hedge portfolio as interest rates increase.
    We use caps when pricing considerations indicate that these
    instruments present a more economically viable alternative to
    selling an interest rate floor or similar contract.                                                                                                                                                                                                                 
|
| | Receiver Swaptions: options on interest rate swaps to
    exchange variable cash flows for fixed. The fixed payments
    increase in value as interest rates decline. This increases the
    value of the swaption resulting in an offset to the decline in
    value of the mortgage servicing rights.                                                                                                                                                                                                                                                                                                                                                                   

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| |                                                                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Interest Rate Swaps: a mutual agreement to swap interest
    rate payments with another party. The swaps provide gains when
    interest rates decline and losses when interest rates increase.



| |                
| | ---------------
| | Debt Securities





| |              
| | -------------
| | Value at Risk





|              |         |               |   |       |      |  |   |       | 
|------------- | ------- | ------------- | - | ----- | ---- |  | - | ----- | 
|              |         | Year Ended    |  
|              |         | December 31,  |  
|              |         |               |  
|              |         | 2005          |   |       | 2004 | 
|              |         |               |   |       |      | 
|              |         | (In millions) |  
|Value at Risk |         |               |   |       |      |  |   |      
|              | Maximum |               | $ | 120.4 |      |  | $ | 215.1 | 
|              | Average |               |   | 76.7  |      |  |   | 133.7 | 
|              | Minimum |               |   | 44.4  |      |  |   | 58.5  | 





| |                     
| | --------------------
| | Sensitivity Analysis



|                                                                                           |  |                    |        |   |         |   |       |             |  |   |         |   |  |   |       |  
|------------------------------------------------------------------------------------------ |  | ------------------ | ------ | - | ------- | - | ----- | ----------- |  | - | ------- | - |  | - | ----- | -
|                                                                                           |  | As of December 31, |       
|                                                                                           |  |                    |       
|                                                                                           |  | 2005               |        |   | 2004    |  
|                                                                                           |  |                    |        |   |         |  
|                                                                                           |  | Non-Trading        |        |   | Trading |   |       | Non-Trading |  |   | Trading |  
|                                                                                           |  |                    |        |   |         |   |       |             |  |   |         |  
|                                                                                           |  | (In millions)      |       
|Estimated net fair value of financial instruments exposed to
    changes in interest rates |  | $                  | (2,961 | ) |         | $ | 3,896 |             |  | $ | (1,627  | ) |  | $ | 2,715 |  
|Impact of a 10% adverse change in rates                                                    |  |                    | (546   | ) |         |   | (95   | )           |  |   | (714    | ) |  |   | (14   | )

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| |                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------
| | Impact of Changes in Interest Rates on the Net Value of
    the Companys Interest Rate-Sensitive Financial
    Instruments



option-pricing cash-flow


85



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|                                                                                                  |                                                        |                                           |                                                             |      |      |     |     |      |      |     |      |      |      |      |      |      |      |      |  
|------------------------------------------------------------------------------------------------- | ------------------------------------------------------ | ----------------------------------------- | ----------------------------------------------------------- | ---- | ---- | --- | --- | ---- | ---- | --- | ---- | ---- | ---- | ---- | ---- | ---- | ---- | ---- | -
|                                                                                                  |                                                        | Change in Fair Value                      |                                                            
|                                                                                                  |                                                        |                                           |                                                            
|Change in Interest Rate (basis points)                                                            |                                                        | -100                                      |                                                             |      | -50  |     |     | +50  |      |     | +100 |     
|                                                                                                  |                                                        |                                           |                                                             |      |      |     |     |      |      |     |      |     
|                                                                                                  |                                                        | (In millions)                             |                                                            
|Mortgage servicing rights and other financial instruments:                                        |                                                        |                                           |                                                             |      |      |     |     |      |      |     |      |      |      |      |      |     
|                                                                                                  | Mortgage servicing rights and other retained interests |                                           | $                                                           | (919 | )    |     | $   | (381 | )    |     | $    | 268  |      |      | $    | 451  |     
|                                                                                                  | Impact of servicing hedge:                             |                                           |                                                             |      |      |     |     |      |      |     |      |      |      |      |      |      |     
|                                                                                                  |                                                        | Swap  based                              |                                                             |      | 568  |     |     |      | 253  |     |      |      | (191 | )    |      |      | (328 | )   
|                                                                                                  |                                                        | Treasury-based                            |                                                             |      | 177  |     |     |      | 86   |     |      |      | (82  | )    |      |      | (159 | )   
|                                                                                                  |                                                        | Others                                    |                                                             |      | 438  |     |     |      | 223  |     |      |      | (226 | )    |      |      | (459 | )   
|                                                                                                  |                                                        |                                           |                                                             |      |      |     |     |      |      |     |      |     
|                                                                                                  |                                                        |                                           | Mortgage servicing rights and other retained interests, net |      |      | 264 |     |      |      | 181 |      |      |      | (231 | )    |      |      | (495 | )
|                                                                                                  |                                                        |                                           |                                                             |      |      |     |     |      |      |     |      |     
|                                                                                                  | Committed pipeline                                     |                                           |                                                             | 33   |      |     |     | 22   |      |     |      | (43  | )    |      |      | (113 | )   
|                                                                                                  | Mortgage loan inventory                                |                                           |                                                             | 340  |      |     |     | 201  |      |     |      | (199 | )    |      |      | (441 | )   
|                                                                                                  | Impact of associated derivative instruments:           |                                           |                                                             |      |      |     |     |      |      |     |      |      |      |      |      |      |     
|                                                                                                  |                                                        | Mortgage-based                            |                                                             |      | (92  | )   |     |      | (57  | )   |      |      | 93   |      |      |      | 227  |     
|                                                                                                  |                                                        | Eurodollar-based                          |                                                             |      | (35  | )   |     |      | (17  | )   |      |      | 17   |      |      |      | 35   |     
|                                                                                                  |                                                        | Others                                    |                                                             |      | (205 | )   |     |      | (108 | )   |      |      | 117  |      |      |      | 240  |     
|                                                                                                  |                                                        |                                           |                                                             |      |      |     |     |      |      |     |      |     
|                                                                                                  |                                                        |                                           | Committed pipeline and mortgage loan inventory, net         |      |      | 41  |     |      |      | 41  |      |      |      | (15  | )    |      |      | (52  | )
|                                                                                                  |                                                        |                                           |                                                             |      |      |     |     |      |      |     |      |     
|Net change in fair value related to other businesses                                              |                                                        |                                           | 4                                                           |      |      |     | 2   |      |      |     | (3   | )    |      |      | (7   | )   
|                                                                                                  |                                                        |                                           |                                                             |      |      |     |     |      |      |     |      |     
|GMAC Bank:                                                                                        |                                                        |                                           |                                                             |      |      |     |     |      |      |     |      |      |      |      |      |     
|                                                                                                  | Securities portfolio                                   |                                           |                                                             | 2    |      |     |     | 1    |      |     |      | (1   | )    |      |      | (1   | )   
|                                                                                                  | Mortgage loans                                         |                                           |                                                             | 107  |      |     |     | 61   |      |     |      | (72  | )    |      |      | (150 | )   
|                                                                                                  | Deposit liabilities                                    |                                           |                                                             | (5   | )    |     |     | (3   | )    |     |      | 3    |      |      |      | 5    |     
|                                                                                                  | Federal Home Loan Bank advances                        |                                           |                                                             | (87  | )    |     |     | (44  | )    |     |      | 45   |      |      |      | 91   |     
|                                                                                                  | Other liabilities                                      |                                           |                                                             | (24  | )    |     |     | (12  | )    |     |      | 12   |      |      |      | 25   |     
|                                                                                                  |                                                        |                                           |                                                             |      |      |     |     |      |      |     |      |     
|                                                                                                  |                                                        | GMAC Bank, net                            |                                                             |      | (7   | )   |     |      | 3    |     |      |      | (13  | )    |      |      | (30  | )   
|                                                                                                  |                                                        |                                           |                                                             |      |      |     |     |      |      |     |      |     
|                                                                                                  | Notes payable and capital securities                   |                                           |                                                             | (159 | )    |     |     | (78  | )    |     |      | 76   |      |      |      | 150  |     
|                                                                                                  | Impact of associated derivative instruments:           |                                           |                                                             |      |      |     |     |      |      |     |      |      |      |      |      |      |     
|                                                                                                  |                                                        | Swap-based                                |                                                             |      | 163  |     |     |      | 81   |     |      |      | (79  | )    |      |      | (155 | )   
|                                                                                                  |                                                        | Notes payable and capital securities, net |                                                             |      | 4    |     |     |      | 3    |     |      |      | (3   | )    |      |      | (5   | )   
|                                                                                                  | Insurance company investment portfolios                |                                           |                                                             | 3    |      |     |     | 1    |      |     |      | (1   | )    |      |      | (3   | )   
|                                                                                                  |                                                        |                                           |                                                             |      |      |     |     |      |      |     |      |     
|Net change in fair value related to mortgage servicing rights
    and other financial instruments |                                                        | $                                         | 309                                                         |      |      | $   | 231 |      |      | $   | (266 | )    |      | $    | (592 | )   
|                                                                                                  |                                                        |                                           |                                                             |      |      |     |     |      |      |     |      |     
|Net change in fair value related to broker-dealer
    trading securities                          |                                                        | $                                         | 1                                                           |      |      | $   | 1   |      |      | $   |     |      |      | $    | (1   | )   
|                                                                                                  |                                                        |                                           |                                                             |      |      |     |     |      |      |     |      |     

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Item 8.     FINANCIAL STATEMENTS AND
SUPPLEMENTARY DATA.





STATEMENT OF RESPONSIBILITY FOR PREPARATION


OF FINANCIAL STATEMENTS








|                        |  |                        
|----------------------- |  | -----------------------
|/s/ Bruce J. Paradis    |  | /s/ Davee L. Olson     
|                        |  |                        
|Bruce J. Paradis        |  | Davee L. Olson         
|Chief Executive Officer |  | Chief Financial Officer
|March 27, 2006          |  | March 27, 2006         

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MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING








Internal Control-Integrated Framework




Statement of Cash Flows 
Exemption of Certain Enterprises and Classification of Cash
Flows from Certain Securities Acquired for Resale. 10-Q


89



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|                        |  |                        
|----------------------- |  | -----------------------
|/s/ Bruce J. Paradis    |  | /s/ Davee L. Olson     
|                        |  |                        
|Bruce J. Paradis        |  | Davee L. Olson         
|Chief Executive Officer |  | Chief Financial Officer
|March 27, 2006          |  | March 27, 2006         

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








Consolidated financial statements and financial statement
schedules






Internal control over financial reporting


Internal Control  Integrated Framework




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Statement of Cash Flows  Exemption of
Certain Enterprises and Classification of Cash Flows from
Certain Securities Acquired for Resale




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Internal Control  Integrated Framework Internal Control  Integrated Framework


PricewaterhouseCoopers
LLP






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RESIDENTIAL CAPITAL CORPORATION





CONSOLIDATED BALANCE SHEET


December 31, 2005 and 2004


|                                                                                                        |                                                    |                        |             |            |             |   |            |            |            | 
|------------------------------------------------------------------------------------------------------- | -------------------------------------------------- | ---------------------- | ----------- | ---------- | ----------- | - | ---------- | ---------- | ---------- | 
|                                                                                                        |                                                    | 2005                   |             |            | 2004        |  
|                                                                                                        |                                                    |                        |             |            |             |  
|                                                                                                        |                                                    | (Dollars in thousands) |            
|ASSETS                                                                                                 
|Cash and cash equivalents                                                                               |                                                    | $                      | 2,266,753   |            |             | $ | 899,083    |           
|Mortgage loans held for sale                                                                            |                                                    |                        | 19,521,566  |            |             |   | 14,032,781 |           
|Trading securities                                                                                      |                                                    |                        | 3,896,008   |            |             |   | 2,714,700  |           
|Available for sale securities                                                                           |                                                    |                        | 1,068,937   |            |             |   | 1,244,658  |           
|Mortgage loans held for investment, net                                                                 |                                                    |                        | 67,892,660  |            |             |   | 56,835,356 |           
|Lending receivables, net                                                                                |                                                    |                        | 13,401,047  |            |             |   | 9,357,397  |           
|Mortgage servicing rights, net                                                                          |                                                    |                        | 4,015,015   |            |             |   | 3,365,992  |           
|Accounts receivable                                                                                     |                                                    |                        | 1,951,210   |            |             |   | 2,110,417  |           
|Investments in real estate and other                                                                    |                                                    |                        | 1,855,298   |            |             |   | 1,397,246  |           
|Goodwill                                                                                                |                                                    |                        | 459,768     |            |             |   | 454,278    |           
|Other assets                                                                                            |                                                    |                        | 2,556,830   |            |             |   | 1,937,556  |           
|                                                                                                        |                                                    |                        |             |            |             |  
|Total assets                                                                                            |                                                    | $                      | 118,885,092 |            |             | $ | 94,349,464 |           
|                                                                                                        |                                                    |                        |             |            |             |  
|                                                                                                       
|LIABILITIES                                                                                            
|Borrowings:                                                                                             |                                                    |                        |             |            |             |   |            |           
|                                                                                                        | Affiliate borrowings                               |                        | $           | 5,177,462  |             |   | $          | 10,006,242 |           
|                                                                                                        | Collateralized borrowings in securitization trusts |                        |             | 56,097,801 |             |   |            | 50,708,476 |           
|                                                                                                        | Other borrowings                                   |                        |             | 42,300,507 |             |   |            | 23,703,650 |           
|                                                                                                        |                                                    |                        |             |            |             |  
|                                                                                                        |                                                    | Total borrowings       |             |            | 103,575,770 |   |            |            | 84,418,368 | 
|Deposit liabilities                                                                                     |                                                    |                        | 4,123,304   |            |             |   | 1,664,970  |           
|Other liabilities                                                                                       |                                                    |                        | 3,722,048   |            |             |   | 3,900,381  |           
|                                                                                                        |                                                    |                        |             |            |             |  
|Total liabilities                                                                                       |                                                    |                        | 111,421,122 |            |             |   | 89,983,719 |           
|                                                                                                       
|STOCKHOLDERS EQUITY                                                                                   
|Common stock, $0.01 par value (1,000 shares authorized, issued
    and outstanding) and paid-in capital |                                                    |                        | 3,367,677   |            |             |   | 1,246,778  |           
|Retained earnings                                                                                       |                                                    |                        | 3,980,587   |            |             |   | 2,959,961  |           
|Accumulated other comprehensive income                                                                  |                                                    |                        | 115,706     |            |             |   | 159,006    |           
|                                                                                                        |                                                    |                        |             |            |             |  
|Total stockholders equity                                                                              |                                                    |                        | 7,463,970   |            |             |   | 4,365,745  |           
|                                                                                                        |                                                    |                        |             |            |             |  
|Total liabilities and stockholders equity                                                              |                                                    | $                      | 118,885,092 |            |             | $ | 94,349,464 |           
|                                                                                                        |                                                    |                        |             |            |             |  



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RESIDENTIAL CAPITAL CORPORATION





CONSOLIDATED STATEMENT OF INCOME


Years Ended December 31, 2005, 2004, and 2003


|                                                    |  |                        |           |   |      |   |            |      |  |   |            |  
|--------------------------------------------------- |  | ---------------------- | --------- | - | ---- | - | ---------- | ---- |  | - | ---------- | -
|                                                    |  | 2005                   |           |   | 2004 |   |            | 2003 | 
|                                                    |  |                        |           |   |      |   |            |      | 
|                                                    |  | (Dollars in thousands) |          
|Revenue                                             |  |                        |           |   |      |   |            |      |  |   |            |  
|Interest income                                     |  | $                      | 5,797,097 |   |      | $ | 4,990,881  |      |  | $ | 3,482,652  |  
|Interest expense                                    |  |                        | 3,872,102 |   |      |   | 2,404,982  |      |  |   | 1,402,709  |  
|                                                    |  |                        |           |   |      |   |            |      | 
|Net interest income                                 |  |                        | 1,924,995 |   |      |   | 2,585,899  |      |  |   | 2,079,943  |  
|Provision for loan losses                           |  |                        | 651,796   |   |      |   | 842,899    |      |  |   | 453,502    |  
|                                                    |  |                        |           |   |      |   |            |      | 
|Net interest income after provision for loan losses |  |                        | 1,273,199 |   |      |   | 1,743,000  |      |  |   | 1,626,441  |  
|Gain on sale of mortgage loans, net                 |  |                        | 1,036,669 |   |      |   | 696,903    |      |  |   | 1,746,325  |  
|Servicing fees                                      |  |                        | 1,416,280 |   |      |   | 1,294,256  |      |  |   | 1,185,701  |  
|Amortization and impairment of servicing rights     |  |                        | (761,988  | ) |      |   | (1,003,265 | )    |  |   | (2,014,914 | )
|Servicing asset valuation and hedge gain, net       |  |                        | 17,186    |   |      |   | 214,911    |      |  |   | 507,244    |  
|                                                    |  |                        |           |   |      |   |            |      | 
|Net servicing fees                                  |  |                        | 671,478   |   |      |   | 505,902    |      |  |   | (321,969   | )
|Gain (loss) on investment securities, net           |  |                        | 236,362   |   |      |   | 63,703     |      |  |   | (222,802   | )
|Real estate related revenues                        |  |                        | 712,174   |   |      |   | 649,239    |      |  |   | 500,414    |  
|Other income                                        |  |                        | 305,378   |   |      |   | 307,979    |      |  |   | 398,100    |  
|                                                    |  |                        |           |   |      |   |            |      | 
|Total net revenue                                   |  |                        | 4,235,260 |   |      |   | 3,966,726  |      |  |   | 3,726,509  |  
|Expenses                                            |  |                        |           |   |      |   |            |      |  |   |            |  
|Compensation and benefits                           |  |                        | 1,406,930 |   |      |   | 1,216,537  |      |  |   | 1,188,763  |  
|Professional fees                                   |  |                        | 212,410   |   |      |   | 224,716    |      |  |   | 169,380    |  
|Data processing and telecommunications              |  |                        | 199,849   |   |      |   | 191,076    |      |  |   | 189,284    |  
|Advertising                                         |  |                        | 158,688   |   |      |   | 151,345    |      |  |   | 127,720    |  
|Occupancy                                           |  |                        | 121,301   |   |      |   | 107,565    |      |  |   | 99,570     |  
|Other                                               |  |                        | 509,156   |   |      |   | 465,135    |      |  |   | 585,856    |  
|                                                    |  |                        |           |   |      |   |            |      | 
|Total expenses                                      |  |                        | 2,608,334 |   |      |   | 2,356,374  |      |  |   | 2,360,573  |  
|                                                    |  |                        |           |   |      |   |            |      | 
|Income before income tax expense                    |  |                        | 1,626,926 |   |      |   | 1,610,352  |      |  |   | 1,365,936  |  
|Income tax expense                                  |  |                        | 606,300   |   |      |   | 642,140    |      |  |   | 509,121    |  
|                                                    |  |                        |           |   |      |   |            |      | 
|Net income                                          |  | $                      | 1,020,626 |   |      | $ | 968,212    |      |  | $ | 856,815    |  
|                                                    |  |                        |           |   |      |   |            |      | 



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RESIDENTIAL CAPITAL CORPORATION





CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS
EQUITY


Years Ended December 31, 2005, 2004, and 2003


|                             |                                         |                                          |           |           |          |   |           |               |             |  |               |           |         |               |         |         |   |   |           |           |         |  
|---------------------------- | --------------------------------------- | ---------------------------------------- | --------- | --------- | -------- | - | --------- | ------------- | ----------- |  | ------------- | --------- | ------- | ------------- | ------- | ------- | - | - | --------- | --------- | ------- | -
|                             |                                         | Common                                   |           |           |          |   |           |               | Accumulated |  |               |          
|                             |                                         | Stock and                                |           |           |          |   |           |               | Other       |  |               | Total     |        
|                             |                                         | Paid-in                                  |           |           | Retained |   |           | Comprehensive |             |  | Comprehensive |           |         | Stockholders |        
|                             |                                         | Capital                                  |           |           | Earnings |   |           | Income        |             |  | Income        |           |         | Equity        |        
|                             |                                         |                                          |           |           |          |   |           |               |             |  |               |           |         |               |        
|                             |                                         | (Dollars in thousands)                   |          
|Balance at January 1, 2003   |                                         | $                                        | 1,193,592 |           |          | $ | 1,134,934 |               |             |  |               |           |         | $             | 45,792  |         |   | $ | 2,374,318 |          
|                             | Net income                              |                                          |           |          |          |   |           | 856,815       |             |  | $             | 856,815   |         |               |         |        |   |   |           | 856,815   |        
|                             | Other comprehensive income, net of tax: |                                          |           |           |          |   |           |               |             |  |               |           |         |               |         |         |   |   |           |           |        
|                             |                                         | Unrealized loss on investment securities |           |           |         |   |           |               |            |  |               |           | (37,683 | )             |         |         |  |   |           |           | (37,683 | )
|                             |                                         | Foreign currency translation adjustment  |           |           |         |   |           |               |            |  |               |           | 15,652  |               |         |         |  |   |           |           | 15,652  |  
|                             |                                         | Unrealized loss on cash flow hedges      |           |           |         |   |           |               |            |  |               |           | (23,095 | )             |         |         |  |   |           |           | (23,095 | )
|                             |                                         |                                          |           |           |          |   |           |               |             |  |               |           |         |               |        
|                             | Other comprehensive income              |                                          |           |          |          |   |           |              |             |  |               | (45,126   | )       |               |         | (45,126 | ) |   |           |          |        
|                             |                                         |                                          |           |           |          |   |           |               |             |  |               |           |         |               |        
|                             | Comprehensive income                    |                                          |           |          |          |   |           |              |             |  | $             | 811,689   |         |               |         |        |   |   |           |          |        
|                             |                                         |                                          |           |           |          |   |           |               |             |  |               |           |         |               |        
|Balance at December 31, 2003 |                                         |                                          | 1,193,592 |           |          |   | 1,991,749 |               |             |  |               |           |         |               | 666     |         |   |   | 3,186,007 |          
|                             | Net income                              |                                          |           |          |          |   |           | 968,212       |             |  | $             | 968,212   |         |               |         |        |   |   |           | 968,212   |        
|                             | Capital contribution                    |                                          |           | 53,186    |          |   |           |              |             |  |               |          |         |               |         |        |   |   |           | 53,186    |        
|                             | Other comprehensive income, net of tax: |                                          |           |           |          |   |           |               |             |  |               |           |         |               |         |         |   |   |           |           |        
|                             |                                         | Unrealized gain on investment securities |           |           |         |   |           |               |            |  |               |           | 10,432  |               |         |         |  |   |           |           | 10,432  |  
|                             |                                         | Foreign currency translation adjustment  |           |           |         |   |           |               |            |  |               |           | 21,109  |               |         |         |  |   |           |           | 21,109  |  
|                             |                                         | Unrealized gain on cash flow hedges      |           |           |         |   |           |               |            |  |               |           | 126,799 |               |         |         |  |   |           |           | 126,799 |  
|                             |                                         |                                          |           |           |          |   |           |               |             |  |               |           |         |               |        
|                             | Other comprehensive income              |                                          |           |          |          |   |           |              |             |  |               | 158,340   |         |               |         | 158,340 |   |   |           |           |        
|                             |                                         |                                          |           |           |          |   |           |               |             |  |               |           |         |               |        
|                             | Comprehensive income                    |                                          |           |          |          |   |           |              |             |  | $             | 1,126,552 |         |               |         |        |   |   |           |          |        
|                             |                                         |                                          |           |           |          |   |           |               |             |  |               |           |         |               |        
|Balance at December 31, 2004 |                                         |                                          | 1,246,778 |           |          |   | 2,959,961 |               |             |  |               |           |         |               | 159,006 |         |   |   | 4,365,745 |          
|                             |                                         |                                          |           |           |          |   |           |               |             |  |               |           |         |               |        
|                             | Net income                              |                                          |           |          |          |   |           | 1,020,626     |             |  | $             | 1,020,626 |         |               |         |        |   |   |           | 1,020,626 |        
|                             | Capital contributions                   |                                          |           | 2,120,899 |          |   |           |              |             |  |               |          |         |               |         |        |   |   |           | 2,120,899 |        
|                             | Other comprehensive income, net of tax: |                                          |           |           |          |   |           |               |             |  |               |           |         |               |         |         |   |   |           |           |        
|                             |                                         | Unrealized loss on investment securities |           |           |         |   |           |               |            |  |               |           | (24,451 | )             |         |         |  |   |           |           | (24,451 | )
|                             |                                         | Foreign currency translation adjustment  |           |           |         |   |           |               |            |  |               |           | (33,103 | )             |         |         |  |   |           |           | (33,103 | )
|                             |                                         | Unrealized gain on cash flow hedges      |           |           |         |   |           |               |            |  |               |           | 14,254  |               |         |         |  |   |           |           | 14,254  |  
|                             |                                         |                                          |           |           |          |   |           |               |             |  |               |           |         |               |        
|                             | Other comprehensive income              |                                          |           |          |          |   |           |              |             |  |               | (43,300   | )       |               |         | (43,300 | ) |   |           |          |        
|                             |                                         |                                          |           |           |          |   |           |               |             |  |               |           |         |               |        
|                             | Comprehensive income                    |                                          |           |          |          |   |           |              |             |  | $             | 977,326   |         |               |         |        |   |   |           |          |        
|                             |                                         |                                          |           |           |          |   |           |               |             |  |               |           |         |               |        
|Balance at December 31, 2005 |                                         | $                                        | 3,367,677 |           |          | $ | 3,980,587 |               |             |  |               |           |         | $             | 115,706 |         |   | $ | 7,463,970 |          
|                             |                                         |                                          |           |           |          |   |           |               |             |  |               |           |         |               |        



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RESIDENTIAL CAPITAL CORPORATION





CONSOLIDATED STATEMENT OF CASH FLOWS


Years Ended December 31, 2005, 2004, and 2003


|                                                                                         |                                                          |                                                     |              |            |             |   |              |           |             |   |              |            |             |  
|---------------------------------------------------------------------------------------- | -------------------------------------------------------- | --------------------------------------------------- | ------------ | ---------- | ----------- | - | ------------ | --------- | ----------- | - | ------------ | ---------- | ----------- | -
|                                                                                         |                                                          | 2005                                                |              |            | 2004        |   |              | 2003      |            
|                                                                                         |                                                          |                                                     |              |            |             |   |              |           |            
|                                                                                         |                                                          | (Dollars in thousands)                              |             
|                                                                                         |                                                          |                                                     |              | (Restated) |             |   | (Restated)   |          
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                    |                                                          |                                                     |              |            |             |   |              |           |             |   |              |           
|Net income                                                                               |                                                          | $                                                   | 1,020,626    |            |             | $ | 968,212      |           |             | $ | 856,815      |           
|Reconciliation of net income to net cash provided by (used in)
    operating activities: |                                                          |                                                     |              |            |             |   |              |           |             |   |              |           
|                                                                                         | Amortization and impairment of mortgage servicing rights |                                                     |              | 761,988    |             |   |              | 1,003,265 |             |   |              | 2,014,914  |            
|                                                                                         | Depreciation and amortization                            |                                                     |              | 605,579    |             |   |              | 528,681   |             |   |              | 354,018    |            
|                                                                                         | Provision for loan losses                                |                                                     |              | 651,796    |             |   |              | 842,899   |             |   |              | 453,502    |            
|                                                                                         | Gain on sale of mortgage loans, net                      |                                                     |              | (1,036,669 | )           |   |              | (696,903  | )           |   |              | (1,746,325 | )          
|                                                                                         | Net gain on sale of other assets                         |                                                     |              | (41,559    | )           |   |              | (39,700   | )           |   |              | (20,668    | )          
|(Gain) loss on valuation of derivatives                                                  |                                                          |                                                     | (148,550     | )          |             |   | (296,171     | )         |             |   | 662,642      |           
|(Gain) loss on investment securities                                                     |                                                          |                                                     | (236,362     | )          |             |   | (63,703      | )         |             |   | 222,802      |           
|Equity in earnings of investees in excess of cash received                               |                                                          |                                                     | (137,671     | )          |             |   | (141,574     | )         |             |   | (40,245      | )         
|(Gain) loss on valuation of mortgage servicing rights                                    |                                                          |                                                     | (86,328      | )          |             |   | 299,522      |           |             |   | (446,239     | )         
|Originations and purchases of mortgage loans held for sale                               |                                                          |                                                     | (159,280,861 | )          |             |   | (117,339,636 | )         |             |   | (151,319,534 | )         
|Proceeds from sales and repayments of mortgage loans held for
    sale                   |                                                          |                                                     | 133,222,847  |            |             |   | 114,982,130  |           |             |   | 144,767,140  |           
|Deferred income tax                                                                      |                                                          |                                                     | 226,526      |            |             |   | 882,104      |           |             |   | (365,706     | )         
|Net change in:                                                                           |                                                          |                                                     |              |            |             |   |              |           |             |   |              |           
|                                                                                         |                                                          | Trading securities                                  |              |            | (952,969    | ) |              |           | 707,629     |   |              |            | (89,484     | )
|                                                                                         |                                                          | Accounts receivable                                 |              |            | 152,081     |   |              |           | (568,644    | ) |              |            | (96,898     | )
|                                                                                         |                                                          | Other assets                                        |              |            | 955,492     |   |              |           | 1,439,285   |   |              |            | 1,295,548   |  
|                                                                                         |                                                          | Other liabilities                                   |              |            | (1,823,082  | ) |              |           | (810,003    | ) |              |            | (366,863    | )
|                                                                                         |                                                          |                                                     |              |            |             |   |              |           |            
|                                                                                         |                                                          | Net cash provided by (used in) operating activities |              |            | (26,147,116 | ) |              |           | 1,697,393   |   |              |            | (3,864,581  | )
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                    |                                                          |                                                     |              |            |             |   |              |           |             |   |              |           
|Net increase in lending receivables                                                      |                                                          |                                                     | (3,974,763   | )          |             |   | (1,102,164   | )         |             |   | (1,156,558   | )         
|Originations and purchases of mortgage loans held for investment                         |                                                          |                                                     | (20,081,860  | )          |             |   | (38,400,806  | )         |             |   | (37,808,639  | )         
|Proceeds from sales and repayments of mortgage loans held for
    investment             |                                                          |                                                     | 27,528,658   |            |             |   | 25,095,202   |           |             |   | 10,096,381   |           
|Purchases of available for sale securities                                               |                                                          |                                                     | (598,613     | )          |             |   | (1,165,083   | )         |             |   | (2,096,759   | )         
|Proceeds from sales and repayments of available for sale
    securities                  |                                                          |                                                     | 747,215      |            |             |   | 24,775       |           |             |   | 4,355,408    |           
|Additions to mortgage servicing rights                                                   |                                                          |                                                     | (266,589     | )          |             |   | (241,515     | )         |             |   | (404,137     | )         
|Sales of mortgage servicing rights                                                       |                                                          |                                                     | 207,591      |            |             |   |             |           |             |   |             |           
|Purchase of and advances to investments in real estate and other                         |                                                          |                                                     | (1,249,253   | )          |             |   | (883,840     | )         |             |   | (860,323     | )         
|Proceeds from sales of and returns of investments in real estate
    and other           |                                                          |                                                     | 923,924      |            |             |   | 773,377      |           |             |   | 428,891      |           
|Acquisitions, net of cash acquired                                                       |                                                          |                                                     | (3,988       | )          |             |   | (11,764      | )         |             |   | (1,599       | )         
|Other, net                                                                               |                                                          |                                                     | 724,699      |            |             |   | 209,096      |           |             |   | 193,642      |           
|                                                                                         |                                                          |                                                     |              |            |             |   |              |           |            
|                                                                                         |                                                          | Net cash provided by (used in) investing activities |              |            | 3,957,021   |   |              |           | (15,702,722 | ) |              |            | (27,253,693 | )

(Continued on next page)


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RESIDENTIAL CAPITAL CORPORATION


CONSOLIDATED STATEMENT OF CASH FLOWS


Years Ended December 31, 2005, 2004, and
2003  (Continued)


|                                                                                                                                           |                                           |                        |              |            |      |   |              |            |  |   |              |            | 
|------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------- | ---------------------- | ------------ | ---------- | ---- | - | ------------ | ---------- |  | - | ------------ | ---------- | 
|                                                                                                                                           |                                           | 2005                   |              |            | 2004 |   |              | 2003       | 
|                                                                                                                                           |                                           |                        |              |            |      |   |              |            | 
|                                                                                                                                           |                                           | (Dollars in thousands) |             
|                                                                                                                                           |                                           |                        |              | (Restated) |      |   | (Restated)   |           
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                      |                                           |                        |              |            |      |   |              |            |  |   |              |           
|Net decrease in affiliate borrowings                                                                                                       |                                           | $                      | (2,828,433   | )          |      | $ | (677,633     | )          |  | $ | (1,161,322   | )         
|Net increase in other short-term borrowings                                                                                                |                                           |                        | 4,242,935    |            |      |   | 2,988,692    |            |  |   | 5,433,408    |           
|Proceeds from issuance of collateralized borrowings in
    securitization trusts                                                           |                                           |                        | 28,361,997   |            |      |   | 28,804,811   |            |  |   | 33,785,488   |           
|Repayments of collateralized borrowings in securitization trusts                                                                           |                                           |                        | (22,682,856  | )          |      |   | (17,498,926  | )          |  |   | (6,741,881   | )         
|Proceeds from secured aggregation facilities, long-term                                                                                    |                                           |                        | 7,896,054    |            |      |   |             |            |  |   |             |           
|Repayments of secured aggregation facilities, long-term                                                                                    |                                           |                        | (3,157,448   | )          |      |   |             |            |  |   |             |           
|Proceeds from other long-term borrowings                                                                                                   |                                           |                        | 9,625,279    |            |      |   | 269,000      |            |  |   | 305,000      |           
|Repayments of other long-term borrowings                                                                                                   |                                           |                        | (210,000     | )          |      |   | (220,000     | )          |  |   | (180,000     | )         
|Payments of debt issuance costs                                                                                                            |                                           |                        | (121,413     | )          |      |   | (102,618     | )          |  |   | (103,836     | )         
|Increase in deposit liabilities                                                                                                            |                                           |                        | 2,458,334    |            |      |   | 383,515      |            |  |   | 333,209      |           
|                                                                                                                                           |                                           |                        |              |            |      |   |              |            | 
|                                                                                                                                           | Net cash provided by financing activities |                        |              | 23,584,449 |      |   |              | 13,946,841 |  |   |              | 31,670,066 | 
|Effect of foreign exchange rates on cash and cash equivalents                                                                              |                                           |                        | (26,684      | )          |      |   | 16,478       |            |  |   | 7,359        |           
|                                                                                                                                           |                                           |                        |              |            |      |   |              |            | 
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                       |                                           |                        | 1,367,670    |            |      |   | (42,010      | )          |  |   | 559,151      |           
|CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                                                                             |                                           |                        | 899,083      |            |      |   | 941,093      |            |  |   | 381,942      |           
|                                                                                                                                           |                                           |                        |              |            |      |   |              |            | 
|CASH AND CASH EQUIVALENTS AT END OF YEAR                                                                                                   |                                           | $                      | 2,266,753    |            |      | $ | 899,083      |            |  | $ | 941,093      |           
|                                                                                                                                           |                                           |                        |              |            |      |   |              |            | 
|                                                                                                                                          
|SUPPLEMENTAL DISCLOSURES:                                                                                                                  |                                           |                        |              |            |      |   |              |            |  |   |              |           
|Interest paid                                                                                                                              |                                           | $                      | 3,835,316    |            |      | $ | 2,274,131    |            |  | $ | 1,338,360    |           
|Taxes paid                                                                                                                                 |                                           |                        | 713,321      |            |      |   | 387,255      |            |  |   | 806,585      |           
|Non-cash transactions:                                                                                                                     |                                           |                        |              |            |      |   |              |            |  |   |              |           
|Capital contribution through forgiveness of affiliate borrowings                                                                           |                                           |                        | 2,000,000    |            |      |   |             |            |  |   |             |           
|Mortgage loans held for sale transferred to mortgage loans held
    for investment                                                         |                                           |                        | 19,963,930   |            |      |   | 1,405,355    |            |  |   | 4,039,336    |           
|Mortgage loans held for investment transferred to mortgage loans
    held for sale                                                         |                                           |                        | 3,904,330    |            |      |   | 3,505,511    |            |  |   | 931,549      |           
|Mortgage loans held for investment transferred to other assets                                                                             |                                           |                        | 930,672      |            |      |   | 387,833      |            |  |   | 327,316      |           
|Originations of mortgage servicing rights from sold loans                                                                                  |                                           |                        | 1,272,126    |            |      |   | 1,227,835    |            |  |   | 2,044,223    |           
|Capital contributions of lending receivables                                                                                               |                                           |                        | 120,899      |            |      |   | 53,186       |            |  |   |             |           
|Other disclosures:                                                                                                                         |                                           |                        |              |            |      |   |              |            |  |   |              |           
|Proceeds from sales and repayments of mortgage loans held for
    investment for mortgage loans originally designated as held for
    sale |                                           |                        | 2,062,975    |            |      |   | 1,550,733    |            |  |   | 1,340,094    |           
|                                                                                                                                          
|Reconciliation of mortgage loans held for sale:                                                                                            |                                           |                        |              |            |      |   |              |            |  |   |              |           
|Mortgage loans held for sale at beginning of year                                                                                          |                                           | $                      | 14,032,781   |            |      | $ | 11,577,746   |            |  | $ | 9,264,146    |           
|Originations and purchases of mortgage loans held for sale                                                                                 |                                           |                        | 159,280,861  |            |      |   | 117,339,636  |            |  |   | 151,319,534  |           
|Gain on sale of mortgage loans                                                                                                             |                                           |                        | 1,045,496    |            |      |   | 772,055      |            |  |   | 1,689,456    |           
|Proceeds from sales and repayments of mortgage loans held for
    sale                                                                     |                                           |                        | (133,222,847 | )          |      |   | (114,982,130 | )          |  |   | (144,767,140 | )         
|Proceeds from sales and repayments of loans transferred from
    mortgage loans held for investment                                        |                                           |                        | (4,231,189   | )          |      |   | (1,516,770   | )          |  |   | (716,380     | )         
|Originations of mortgage servicing rights                                                                                                  |                                           |                        | (1,272,126   | )          |      |   | (1,227,835   | )          |  |   | (2,044,223   | )         
|Transfers to mortgage loans held for investment                                                                                            |                                           |                        | (19,963,930  | )          |      |   | (1,405,355   | )          |  |   | (4,039,336   | )         
|Transfers from mortgage loans held for investment                                                                                          |                                           |                        | 3,904,330    |            |      |   | 3,505,511    |            |  |   | 931,549      |           
|Other                                                                                                                                      |                                           |                        | (51,810      | )          |      |   | (30,077      | )          |  |   | (59,860      | )         
|                                                                                                                                           |                                           |                        |              |            |      |   |              |            | 
|Mortgage loans held for sale at end of year                                                                                                |                                           | $                      | 19,521,566   |            |      | $ | 14,032,781   |            |  | $ | 11,577,746   |           
|                                                                                                                                           |                                           |                        |              |            |      |   |              |            | 



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RESIDENTIAL CAPITAL CORPORATION





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




|   |                            
|-- | ---------------------------
|1. | Organization and Operations















99



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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






|   |                                                                      
|-- | ---------------------------------------------------------------------
|2. | Critical Accounting Estimates and Significant Accounting
    Policies



| |                                        
| | ---------------------------------------
| | Consolidation and Basis of Presentation









| |                              
| | -----------------------------
| | Critical Accounting Estimates





| |                          
| | -------------------------
| | Allowance for Loan Losses

Accounting
by Creditors for Impairment of a Loan Accounting for
Contingencies




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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




charged-off




| |                          
| | -------------------------
| | Mortgage Servicing Rights







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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)










| |                                       
| | --------------------------------------
| | Securitizations and Retained Interests

mortgage-backed interest-only principal-only


risk-adjusted


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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




(on-balance off-balance on-balance




| |                                
| | -------------------------------
| | Significant Accounting Policies



| |                          
| | -------------------------
| | Cash and Cash Equivalents





| |                             
| | ----------------------------
| | Mortgage Loans Held for Sale





| |                      
| | ---------------------
| | Investment Securities



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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




available-for-sale




| |                                                           
| | ----------------------------------------------------------
| | Mortgage Loans Held for Investment and Lending Receivables





| |                    
| | -------------------
| | Accounts Receivable





| |         
| | --------
| | Goodwill

two-step Disclosures about Segments of an Enterprise and Related
Information


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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                  
| | -----------------
| | Foreclosed Assets





| |                       
| | ----------------------
| | Property and Equipment

straight-line straight-line




| |                                              
| | ---------------------------------------------
| | Derivative Instruments and Hedging Activities







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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                 
| | ----------------
| | Loan Commitments





| |                                        
| | ---------------------------------------
| | Liability for Assets Sold with Recourse





| |                         
| | ------------------------
| | Reinsurance Arrangements





| |             
| | ------------
| | Income Taxes





| |                                     
| | ------------------------------------
| | Recently Issued Accounting Standards

SOP 03-3 03-3, Accounting for Certain Loans or Debt Securities Acquired in a
Transfer 03-3),


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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


03-3 03-3 03-3 03-3


Statement of Financial Accounting Standards
No. 154 Accounting Changes and
Error Corrections


Financial Accounting Standards Board Staff Position
Nos. 115-1 and
124-1 115-1 124-1, The Meaning
of Other-Than-Temporary Impairment and Its Application to
Certain Investments The Meaning of Other-Than-Temporary Impairment and Its
Application to Certain Investments 03-1). 115-1 124-1 115-1 124-1


Statement of Financial Accounting Standards
No. 155 Accounting
for Certain Hybrid Financial Instruments (SFAS 155),


Statement of Financial Accounting Standards
No. 156  Accounting for Servicing of Financial Assets
(SFAS 156)


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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




3.     Restatement






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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                                                                                |                        |                          |   |             |      |  |   |             |  
|----------------------------------------------------------------------------------------------- | ---------------------- | ------------------------ | - | ----------- | ---- |  | - | ----------- | -
|                                                                                                |                        | Years Ended December 31, |  
|                                                                                                |                        |                          |  
|                                                                                                |                        | 2004                     |   |             | 2003 | 
|                                                                                                |                        |                          |   |             |      | 
|                                                                                                |                        | (In thousands)           |  
|Net cash provided by (used in) operating activities:                                            |                        |                          |   |             |      |  |   |            
|                                                                                                | As previously reported |                          | $ | 4,798,006   |      |  | $ | 851,531     |  
|                                                                                                | As restated            |                          |   | 1,697,393   |      |  |   | (3,864,581  | )
|Net cash used in investing activities:                                                          |                        |                          |   |             |      |  |   |            
|                                                                                                | As previously reported |                          |   | (18,803,335 | )    |  |   | (31,969,805 | )
|                                                                                                | As restated            |                          |   | (15,702,722 | )    |  |   | (27,253,693 | )
|Non-cash transfers from mortgage loans held for sale to mortgage
    loans held for investment: |                        |                          |   |             |      |  |   |            
|                                                                                                | As previously reported |                          |   | 1,205,248   |      |  |   | 1,955,594   |  
|                                                                                                | As restated            |                          |   | 1,405,355   |      |  |   | 4,039,336   |  
|Non-cash transfers from mortgage loans held for investment to
    mortgage loans held for sale: |                        |                          |   |             |      |  |   |            
|                                                                                                | As previously reported |                          |   | 3,661,411   |      |  |   | 803,316     |  
|                                                                                                | As restated            |                          |   | 3,505,511   |      |  |   | 931,549     |  

4.     Mortgage Loans Held for
Sale




|                     |  |                |            |   |      |   |            |  
|-------------------- |  | -------------- | ---------- | - | ---- | - | ---------- | -
|December 31,         |  | 2005           |            |   | 2004 |  
|                     |  |                |            |   |      |  
|                     |  | (In thousands) |           
|Prime conforming     |  | $              | 2,878,508  |   |      | $ | 2,736,558  |  
|Prime non-conforming |  |                | 9,510,198  |   |      |   | 5,966,166  |  
|Nonprime             |  |                | 4,277,968  |   |      |   | 2,840,170  |  
|Prime second-lien    |  |                | 2,215,518  |   |      |   | 1,774,247  |  
|Government           |  |                | 656,059    |   |      |   | 633,451    |  
|Other mortgage loans |  |                |           |   |      |   | 97,865     |  
|Valuation allowance  |  |                | (16,685    | ) |      |   | (15,676    | )
|                     |  |                |            |   |      |  
|Total                |  | $              | 19,521,566 |   |      | $ | 14,032,781 |  
|                     |  |                |            |   |      |  



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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


5.     Trading Securities




|                                     |  |                |           |  |      |   |           | 
|------------------------------------ |  | -------------- | --------- |  | ---- | - | --------- | 
|December 31,                         |  | 2005           |           |  | 2004 |  
|                                     |  |                |           |  |      |  
|                                     |  | (In thousands) |          
|U.S. Treasury securities             |  | $              | 1,173,792 |  |      | $ | 150,375   | 
|Mortgage and asset-backed securities |  |                | 1,042,548 |  |      |   | 1,141,460 | 
|Residual interests                   |  |                | 763,713   |  |      |   | 1,033,544 | 
|Principal-only securities            |  |                | 651,309   |  |      |   | 200,666   | 
|Interest-only securities             |  |                | 264,646   |  |      |   | 187,835   | 
|Other                                |  |                |          |  |      |   | 820       | 
|                                     |  |                |           |  |      |  
|Total                                |  | $              | 3,896,008 |  |      | $ | 2,714,700 | 
|                                     |  |                |           |  |      |  
|Net unrealized gains(a)              |  | $              | 131,019   |  |      | $ | 29,895    | 
|Pledged as collateral                |  |                | 2,721,189 |  |      |   | 2,252,532 | 






|    |                                                                                                                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Unrealized gains and losses are reported in gain (loss) on
    investment securities for the year then ended. Net unrealized
    losses totaled $255.1 million for the year ended
    December 31, 2003.

mortgage-backed interest-only principal-only








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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


6.     Available for Sale
Securities




|                      |                                 |                |           |                  |       |   |       |        |  |   |                  |         |   |      |           |         |       |   |           |           |  |   |        |        |  |   |        |        |   |   |           |           | 
|--------------------- | ------------------------------- | -------------- | --------- | ---------------- | ----- | - | ----- | ------ |  | - | ---------------- | ------- | - | ---- | --------- | ------- | ----- | - | --------- | --------- |  | - | ------ | ------ |  | - | ------ | ------ | - | - | --------- | --------- | 
|                      |                                 | 2005           |           |                  | 2004  |  
|                      |                                 |                |           |                  |       |  
|                      |                                 |                |           | Gross Unrealized |       |   |       |        |  |   | Gross Unrealized |         |   |     
|                      |                                 |                |           |                  |       |   | Fair  |        |  |   |                  |         |   |      | Fair      |        
|December 31,          |                                 | Cost           |           |                  | Gains |   |       | Losses |  |   | Value            |         |   | Cost |           |         | Gains |   |           | Losses    |  |   | Value  |       
|                      |                                 |                |           |                  |       |   |       |        |  |   |                  |         |   |      |           |         |       |   |           |           |  |   |        |       
|                      |                                 | (In thousands) |          
|Debt securities:      |                                 |                |           |                  |       |   |       |        |  |   |                  |         |   |      |           |         |       |   |           |           |  |   |        |        |  |   |        |        |   |   |           |          
|                      | U.S. Treasury securities        |                | $         | 952,860          |       |   | $     |       |  |   | $                | (25,719 | ) |      | $         | 927,141 |       |   | $         | 1,103,087 |  |   | $      | 12,889 |  |   | $      | (1,444 | ) |   | $         | 1,114,532 | 
|                      | Mortgage-backed securities      |                |           | 99,113           |       |   |       | 20     |  |   |                  | (1,907  | ) |      |           | 97,226  |       |   |           | 98,293    |  |   |        | 4,543  |  |   |        | (4,778 | ) |   |           | 98,058    | 
|                      | Interest-only securities(a)     |                |           | 3,031            |       |   |       | 2,240  |  |   |                  |        |   |      |           | 5,271   |       |   |           | 6,047     |  |   |        | 838    |  |   |        |       |   |   |           | 6,885     | 
|                      | Principal-only securities       |                |           | 212              |       |   |       | 159    |  |   |                  |        |   |      |           | 371     |       |   |           | 314       |  |   |        | 361    |  |   |        |       |   |   |           | 675       | 
|                      | States & political subdivisions |                |           | 4,882            |       |   |       |       |  |   |                  | (33     | ) |      |           | 4,849   |       |   |           | 5,096     |  |   |        |       |  |   |        |       |   |   |           | 5,096     | 
|                      | Other                           |                |           | 33,607           |       |   |       | 36     |  |   |                  | (284    | ) |      |           | 33,359  |       |   |           | 9,797     |  |   |        | 144    |  |   |        |       |   |   |           | 9,941     | 
|                      |                                 |                |           |                  |       |   |       |        |  |   |                  |         |   |      |           |         |       |   |           |           |  |   |        |       
|Total debt securities |                                 |                | 1,093,705 |                  |       |   | 2,455 |        |  |   | (27,943          | )       |   |      | 1,068,217 |         |       |   | 1,222,634 |           |  |   | 18,775 |        |  |   | (6,222 | )      |   |   | 1,235,187 |          
|Equity securities     |                                 |                | 900       |                  |       |   |      |        |  |   | (180             | )       |   |      | 720       |         |       |   | 10,099    |           |  |   |       |        |  |   | (628   | )      |   |   | 9,471     |          
|                      |                                 |                |           |                  |       |   |       |        |  |   |                  |         |   |      |           |         |       |   |           |           |  |   |        |       
|Total                 |                                 | $              | 1,094,605 |                  |       | $ | 2,455 |        |  | $ | (28,123          | )       |   | $    | 1,068,937 |         |       | $ | 1,232,733 |           |  | $ | 18,775 |        |  | $ | (6,850 | )      |   | $ | 1,244,658 |          
|                      |                                 |                |           |                  |       |   |       |        |  |   |                  |         |   |      |           |         |       |   |           |           |  |   |        |       






|    |                                                                                           
|--- | ------------------------------------------------------------------------------------------
|(a) | Retained interests from the Companys off-balance sheet
    securitizations (see Note 18).





|                                                                  |  |                |           |  |            |   |           | 
|----------------------------------------------------------------- |  | -------------- | --------- |  | ---------- | - | --------- | 
|December 31, 2005                                                 |  | Cost           |           |  | Fair Value |  
|                                                                  |  |                |           |  |            |  
|                                                                  |  | (In thousands) |          
|Due in one year or less                                           |  | $              |          |  |            | $ |          | 
|Due after one year through five years                             |  |                | 699,468   |  |            |   | 682,531   | 
|Due after five years through ten years                            |  |                | 253,392   |  |            |   | 244,609   | 
|Due after ten years                                               |  |                | 4,882     |  |            |   | 4,850     | 
|Mortgage-backed securities and interests in securitization trusts |  |                | 136,863   |  |            |   | 136,947   | 
|                                                                  |  |                |           |  |            |  
|Total debt securities                                             |  | $              | 1,094,605 |  |            | $ | 1,068,937 | 
|                                                                  |  |                |           |  |            |  



|                            |  |                |         |   |      |   |        |      |  |   |         |  
|--------------------------- |  | -------------- | ------- | - | ---- | - | ------ | ---- |  | - | ------- | -
|Year Ended December 31,     |  | 2005           |         |   | 2004 |   |        | 2003 | 
|                            |  |                |         |   |      |   |        |      | 
|                            |  | (In thousands) |        
|Gross realized gains        |  | $              | 22,511  |   |      | $ |       |      |  | $ | 81,366  |  
|Gross realized losses       |  |                | (10,731 | ) |      |   | (6,506 | )    |  |   | (13,052 | )
|                            |  |                |         |   |      |   |        |      | 
|Net realized gains (losses) |  | $              | 11,780  |   |      | $ | (6,506 | )    |  | $ | 68,314  |  
|                            |  |                |         |   |      |   |        |      | 



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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)










|   |                                   
|-- | ----------------------------------
|7. | Mortgage Loans Held for Investment



|                               |       |                |            |            |      |   |            |            | 
|------------------------------ | ----- | -------------- | ---------- | ---------- | ---- | - | ---------- | ---------- | 
|December 31,                   |       | 2005           |            |            | 2004 |  
|                               |       |                |            |            |      |  
|                               |       | (In thousands) |           
|Prime conforming               |       | $              | 1,517,456  |            |      | $ | 972,705    |           
|Prime non-conforming           |       |                | 6,186,374  |            |      |   | 4,937,544  |           
|Nonprime                       |       |                | 56,923,366 |            |      |   | 47,425,595 |           
|Prime second-lien              |       |                | 4,330,537  |            |      |   | 4,370,767  |           
|Government                     |       |                | 833        |            |      |   | 1,699      |           
|                               |       |                |            |            |      |  
|                               | Total |                |            | 68,958,566 |      |   |            | 57,708,310 | 
|Less allowance for loan losses |       |                | (1,065,906 | )          |      |   | (872,954   | )         
|                               |       |                |            |            |      |  
|Total, net                     |       | $              | 67,892,660 |            |      | $ | 56,835,356 |           
|                               |       |                |            |            |      |  







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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|               |  |  |       |  
|-------------- |  |  | ----- | -
|California     |  |  | 11.6  | %
|Florida        |  |  | 8.4   |  
|United Kingdom |  |  | 5.5   |  
|Texas          |  |  | 4.9   |  
|Michigan       |  |  | 4.5   |  
|All other      |  |  | 65.1  |  
|               |  |  |      
|               |  |  | 100.0 | %
|               |  |  |      

loan-to


interest-only interest-only


interest-only, 30-year 15-year interest-only interest-only interest-only 30-year 15-year


loan-to loan-to loan-to-value loan-to


113



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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






|   |                    
|-- | -------------------
|8. | Lending Receivables



|                               |       |                |            |            |      |   |           |           | 
|------------------------------ | ----- | -------------- | ---------- | ---------- | ---- | - | --------- | --------- | 
|December 31,                   |       | 2005           |            |            | 2004 |  
|                               |       |                |            |            |      |  
|                               |       | (In thousands) |           
|Warehouse                      |       | $              | 9,003,196  |            |      | $ | 5,481,622 |          
|Construction                   |       |                | 2,677,301  |            |      |   | 2,174,688 |          
|Commercial business            |       |                | 1,026,572  |            |      |   | 1,086,405 |          
|Healthcare                     |       |                | 593,230    |            |      |   | 399,770   |          
|Commercial real estate         |       |                | 212,272    |            |      |   | 311,659   |          
|Other                          |       |                | 75,883     |            |      |   | 44,976    |          
|                               |       |                |            |            |      |  
|                               | Total |                |            | 13,588,454 |      |   |           | 9,499,120 | 
|Less allowance for loan losses |       |                | (187,407   | )          |      |   | (141,723  | )        
|                               |       |                |            |            |      |  
|Total, net                     |       | $              | 13,401,047 |            |      | $ | 9,357,397 |          
|                               |       |                |            |            |      |  





|           |  |  |       |  
|---------- |  |  | ----- | -
|California |  |  | 24.4  | %
|Florida    |  |  | 8.9   |  
|Mexico     |  |  | 5.9   |  
|Texas      |  |  | 5.0   |  
|Arizona    |  |  | 4.4   |  
|All other  |  |  | 51.4  |  
|           |  |  |      
|           |  |  | 100.0 | %
|           |  |  |      



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






|                                                                |  |                |         |  |      |   |        | 
|--------------------------------------------------------------- |  | -------------- | ------- |  | ---- | - | ------ | 
|December 31,                                                    |  | 2005           |         |  | 2004 |  
|                                                                |  |                |         |  |      |  
|                                                                |  | (In thousands) |        
|Lending receivables considered to be impaired without allowance |  | $              | 12,894  |  |      | $ |       | 
|Lending receivables considered to be impaired with allowance    |  |                | 99,523  |  |      |   | 5,536  | 
|Allowance for loan losses on impaired lending receivables       |  |                | 11,469  |  |      |   | 1,991  | 
|Impaired lending receivables which are on nonaccrual status     |  |                | 67,417  |  |      |   | 3,587  | 
|Average balance of impaired lending receivables during the year |  |                | 122,407 |  |      |   | 25,593 | 









|   |                          
|-- | -------------------------
|9. | Allowance for Loan Losses



|                             |  |                |           |   |             |   |         |       |  |   |           |  
|---------------------------- |  | -------------- | --------- | - | ----------- | - | ------- | ----- |  | - | --------- | -
|                             |  | Mortgage Loans |           |   |             |   |        
|                             |  | Held for       |           |   | Lending     |   |         |      
|                             |  | Investment     |           |   | Receivables |   |         | Total | 
|                             |  |                |           |   |             |   |         |       | 
|                             |  | (In thousands) |          
|Balance at January 1, 2003   |  | $              | 256,086   |   |             | $ | 79,736  |       |  | $ | 335,822   |  
|Provision for loan losses    |  |                | 411,943   |   |             |   | 41,559  |       |  |   | 453,502   |  
|Charge-offs                  |  |                | (179,026  | ) |             |   | (12,127 | )     |  |   | (191,153  | )
|Recoveries                   |  |                | 1,988     |   |             |   | 17,791  |       |  |   | 19,779    |  
|                             |  |                |           |   |             |   |         |       | 
|Balance at December 31, 2003 |  |                | 490,991   |   |             |   | 126,959 |       |  |   | 617,950   |  
|Provision for loan losses    |  |                | 811,731   |   |             |   | 31,168  |       |  |   | 842,899   |  
|Charge-offs                  |  |                | (440,400  | ) |             |   | (20,173 | )     |  |   | (460,573  | )
|Recoveries                   |  |                | 10,632    |   |             |   | 3,769   |       |  |   | 14,401    |  
|                             |  |                |           |   |             |   |         |       | 
|Balance at December 31, 2004 |  |                | 872,954   |   |             |   | 141,723 |       |  |   | 1,014,677 |  
|Provision for loan losses    |  |                | 599,785   |   |             |   | 52,011  |       |  |   | 651,796   |  
|Charge-offs                  |  |                | (443,815  | ) |             |   | (6,792  | )     |  |   | (450,607  | )
|Recoveries                   |  |                | 36,982    |   |             |   | 465     |       |  |   | 37,447    |  
|                             |  |                |           |   |             |   |         |       | 
|Balance at December 31, 2005 |  | $              | 1,065,906 |   |             | $ | 187,407 |       |  | $ | 1,253,313 |  
|                             |  |                |           |   |             |   |         |       | 

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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






|    |                          
|--- | -------------------------
|10. | Mortgage Servicing Rights



|                                           |  |                |           |   |      |   |           |      |  |   |            |  
|------------------------------------------ |  | -------------- | --------- | - | ---- | - | --------- | ---- |  | - | ---------- | -
|                                           |  | 2005           |           |   | 2004 |   |           | 2003 | 
|                                           |  |                |           |   |      |   |           |      | 
|                                           |  | (In thousands) |          
|Balance at January 1                       |  | $              | 4,294,846 |   |      | $ | 4,333,609 |      |  | $ | 4,196,918  |  
|Originations and purchases, net of sales   |  |                | 1,331,124 |   |      |   | 1,469,350 |      |  |   | 2,448,360  |  
|Amortization                               |  |                | (999,342  | ) |      |   | (770,381  | )    |  |   | (1,049,558 | )
|Valuation adjustments for hedge accounting |  |                | 86,328    |   |      |   | (271,669  | )    |  |   | 446,239    |  
|Other than temporary impairment            |  |                | (54,568   | ) |      |   | (453,332  | )    |  |   | (1,699,010 | )
|Other                                      |  |                |          |   |      |   | (12,731   | )    |  |   | (9,340     | )
|                                           |  |                |           |   |      |   |           |      | 
|Balance at December 31                     |  |                | 4,658,388 |   |      |   | 4,294,846 |      |  |   | 4,333,609  |  
|Valuation allowance                        |  |                | (643,373  | ) |      |   | (928,854  | )    |  |   | (1,149,302 | )
|                                           |  |                |           |   |      |   |           |      | 
|Carrying value at December 31              |  | $              | 4,015,015 |   |      | $ | 3,365,992 |      |  | $ | 3,184,307  |  
|                                           |  |                |           |   |      |   |           |      | 
|Estimated fair value at December 31        |  | $              | 4,021,004 |   |      | $ | 3,366,768 |      |  | $ | 3,184,325  |  
|                                           |  |                |           |   |      |   |           |      | 



|                                |  |                |          |   |      |   |           |      |  |   |            |  
|------------------------------- |  | -------------- | -------- | - | ---- | - | --------- | ---- |  | - | ---------- | -
|                                |  | 2005           |          |   | 2004 |   |           | 2003 | 
|                                |  |                |          |   |      |   |           |      | 
|                                |  | (In thousands) |         
|Balance at January 1            |  | $              | 928,854  |   |      | $ | 1,149,302 |      |  | $ | 1,882,956  |  
|Impairment                      |  |                | (237,353 | ) |      |   | 232,884   |      |  |   | 965,356    |  
|Other than temporary impairment |  |                | (54,568  | ) |      |   | (453,332  | )    |  |   | (1,699,010 | )
|Other                           |  |                | 6,440    |   |      |   |          |      |  |   |           |  
|                                |  |                |          |   |      |   |           |      | 
|Balance at December 31          |  | $              | 643,373  |   |      | $ | 928,854   |      |  | $ | 1,149,302  |  
|                                |  |                |          |   |      |   |           |      | 





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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






|                                                      |  |                |           |   |      |   |            |      |  |   |            |  
|----------------------------------------------------- |  | -------------- | --------- | - | ---- | - | ---------- | ---- |  | - | ---------- | -
|December 31,                                          |  | 2005           |           |   | 2004 |   |            | 2003 | 
|                                                      |  |                |           |   |      |   |            |      | 
|                                                      |  | (In thousands) |          
|Fair value of MSRs                                    |  | $              | 4,021,004 |   |      | $ | 3,366,768  |      |  | $ | 3,184,325  |  
|                                                      |  |                |           |   |      |   |            |      | 
|Range of prepayment speeds (constant prepayment rate) |  |                | 8.3-28.2  | % |      |   | 19.7- 29.8 | %    |  |   | 15.7- 26.4 | %
|Impact on fair value of 10% adverse change            |  | $              | (183,140  | ) |      | $ | (185,868   | )    |  | $ | (177,440   | )
|Impact on fair value of 20% adverse change            |  |                | (344,583  | ) |      |   | (353,200   | )    |  |   | (340,295   | )
|Range of discount rates                               |  |                | 8.0-12.7  | % |      |   | 10.0- 12.6 | %    |  |   | 9.7-12.5   | %
|Impact on fair value of 10% adverse change            |  | $              | (105,946  | ) |      | $ | (101,565   | )    |  | $ | (108,864   | )
|Impact on fair value of 20% adverse change            |  |                | (205,466  | ) |      |   | (195,970   | )    |  |   | (210,705   | )





|    |                                     
|--- | ------------------------------------
|11. | Investments In Real Estate and Other



|                              |                                                |                |           |         |           |  |           |         |           | 
|----------------------------- | ---------------------------------------------- | -------------- | --------- | ------- | --------- |  | --------- | ------- | --------- | 
|December 31,                  |                                                | 2005           |           |         | 2004      | 
|                              |                                                |                |           |         |           | 
|                              |                                                | (In thousands) |          
|Residential real estate:      |                                                |                |           |         |           |  |           |        
|                              | Acquired through sale and leaseback agreements |                | $         | 669,064 |           |  | $         | 530,486 |          
|                              | Construction in progress                       |                |           | 116,820 |           |  |           | 118,117 |          
|                              | Real estate held for development               |                |           | 543,801 |           |  |           | 402,173 |          
|                              |                                                |                |           |         |           | 
|                              |                                                |                | 1,329,685 |         |           |  | 1,050,776 |        
|                              | Accumulated depreciation                       |                |           | (9,350  | )         |  |           | (6,835  | )        
|                              |                                                |                |           |         |           | 
|Total residential real estate |                                                |                | 1,320,335 |         |           |  | 1,043,941 |        
|Other investments:            |                                                |                |           |         |           |  |           |        
|                              | Investments in partnerships                    |                |           | 75,007  |           |  |           | 100,436 |          
|                              | Investments in real estate projects            |                |           | 245,393 |           |  |           | 101,666 |          
|                              | Other equity investments                       |                |           | 214,563 |           |  |           | 151,203 |          
|                              |                                                |                |           |         |           | 
|                              |                                                | Total          |           | $       | 1,855,298 |  |           | $       | 1,397,246 | 
|                              |                                                |                |           |         |           | 



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                         |  |                |        | 
|------------------------ |  | -------------- | ------ | 
|Year Ending December 31, |  |               
|                         |  |               
|                         |  | (In thousands) |       
|2006                     |  | $              | 42,856 | 
|2007                     |  |                | 5,262  | 
|2008                     |  |                | 1,199  | 
|2009                     |  |                | 146    | 
|                         |  |                |       
|                         |  | $              | 49,463 | 
|                         |  |                |       





|                                    |  |                |        |  |      |   |        |      |  |   |        | 
|----------------------------------- |  | -------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|Year Ended December 31,             |  | 2005           |        |  | 2004 |   |        | 2003 | 
|                                    |  |                |        |  |      |   |        |      | 
|                                    |  | (In thousands) |       
|Investments in partnerships         |  | $              | 24,077 |  |      | $ | 46,460 |      |  | $ | 22,479 | 
|Investments in real estate projects |  |                | 36,822 |  |      |   | 43,904 |      |  |   | 9,025  | 
|Other equity investments            |  |                | 95,721 |  |      |   | 57,749 |      |  |   | 11,290 | 



|    |         
|--- | --------
|12. | Goodwill



|                                         |  |                |         |             |         |   |          |         |  |               |          |  |  |           |        |   |       |   |         |  |  |   |         |  
|---------------------------------------- |  | -------------- | ------- | ----------- | ------- | - | -------- | ------- |  | ------------- | -------- |  |  | --------- | ------ | - | ----- | - | ------- |  |  | - | ------- | -
|                                         |  |                |         | Residential |         |   | Business |         |  | International |          |  |  |           |       
|                                         |  | GMAC           |         |             | Capital |   |          | Capital |  |               | Business |  |  | Corporate |        |   |      
|                                         |  | Residential    |         |             | Group   |   |          | Group   |  |               | Group    |  |  | and Other |        |   | Total |  
|                                         |  |                |         |             |         |   |          |         |  |               |          |  |  |           |        |   |       |  
|                                         |  | (In thousands) |        
|Balance at January 1, 2004               |  | $              | 162,146 |             |         | $ | 38,652   |         |  | $             | 10,748   |  |  | $         | 61,624 |   |       | $ | 164,014 |  |  | $ | 437,184 |  
|Additions                                |  |                | 10,890  |             |         |   |         |         |  |               |         |  |  |           |       |   |       |   | 438     |  |  |   | 11,328  |  
|Foreign currency translation adjustments |  |                |        |             |         |   |         |         |  |               |         |  |  |           | 4,878  |   |       |   |        |  |  |   | 4,878   |  
|Other                                    |  |                |        |             |         |   |         |         |  |               |         |  |  |           | 888    |   |       |   |        |  |  |   | 888     |  
|                                         |  |                |         |             |         |   |          |         |  |               |          |  |  |           |        |   |       |  
|Balance at December 31, 2004             |  |                | 173,036 |             |         |   | 38,652   |         |  |               | 10,748   |  |  |           | 67,390 |   |       |   | 164,452 |  |  |   | 454,278 |  
|Additions                                |  |                | 4,730   |             |         |   |         |         |  |               |         |  |  |           | 10,148 |   |       |   | 365     |  |  |   | 15,243  |  
|Disposals                                |  |                |        |             |         |   |         |         |  |               |         |  |  |           |       |   |       |   |        |  |  |   |        |  
|Foreign currency translation adjustments |  |                |        |             |         |   |         |         |  |               |         |  |  |           | (6,577 | ) |       |   |        |  |  |   | (6,577  | )
|Other                                    |  |                |        |             |         |   |         |         |  |               |         |  |  |           | (3,176 | ) |       |   |        |  |  |   | (3,176  | )
|                                         |  |                |         |             |         |   |          |         |  |               |          |  |  |           |        |   |       |  
|Balance at December 31, 2005             |  | $              | 177,766 |             |         | $ | 38,652   |         |  | $             | 10,748   |  |  | $         | 67,785 |   |       | $ | 164,817 |  |  | $ | 459,768 |  
|                                         |  |                |         |             |         |   |          |         |  |               |          |  |  |           |        |   |       |  

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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|    |                       
|--- | ----------------------
|13. | Property and Equipment



|                                  |  |                |          |   |      |   |          |  
|--------------------------------- |  | -------------- | -------- | - | ---- | - | -------- | -
|December 31,                      |  | 2005           |          |   | 2004 |  
|                                  |  |                |          |   |      |  
|                                  |  | (In thousands) |         
|Land and buildings                |  | $              | 17,430   |   |      | $ | 17,418   |  
|Furniture, fixtures and equipment |  |                | 341,427  |   |      |   | 314,109  |  
|Leasehold improvements            |  |                | 92,512   |   |      |   | 77,528   |  
|Capitalized software              |  |                | 210,236  |   |      |   | 189,749  |  
|                                  |  |                |          |   |      |  
|                                  |  |                | 661,605  |   |      |   | 598,804  |  
|Less: Accumulated depreciation    |  |                | (465,778 | ) |      |   | (411,241 | )
|                                  |  |                |          |   |      |  
|Total                             |  | $              | 195,827  |   |      | $ | 187,563  |  
|                                  |  |                |          |   |      |  





|    |           
|--- | ----------
|14. | Borrowings



|                                                      |                                                       |                        |     |     |      |  |     |      |     |   |             |            |            |   |            |           |            | 
|----------------------------------------------------- | ----------------------------------------------------- | ---------------------- | --- | --- | ---- |  | --- | ---- | --- | - | ----------- | ---------- | ---------- | - | ---------- | --------- | ---------- | 
|                                                      |                                                       | Weighted-              |     |     |      |  |    
|                                                      |                                                       | Average                |     |     |      |  |    
|                                                      |                                                       | Interest Rates         |     |     |      |  |    
|December 31,                                          |                                                       | 2005                   |     |     | 2004 |  |     | 2005 |     |   | 2004        |           
|                                                      |                                                       |                        |     |     |      |  |     |      |     |   |             |           
|                                                      |                                                       | (In thousands)         |    
|Affiliate borrowings                                  |                                                       |                        | 7.4 | %   |      |  | 2.9 | %    |     | $ | 5,177,462   |            |            | $ | 10,006,242 |          
|Collateralized borrowings in securitization trusts(a) |                                                       |                        | 4.8 |     |      |  | 3.4 |      |     |   | 56,097,801  |            |            |   | 50,708,476 |          
|Other borrowings:                                     |                                                       |                        |     |     |      |  |     |      |     |   |             |            |            |   |            |          
|                                                      | Secured aggregation facilities  short-term           |                        |     | 4.4 |      |  |     | 2.4  |     |   |             | 10,959,581 |            |   |            | 9,867,955 |           
|                                                      | Secured aggregation facilities  long-term(a)         |                        |     | 4.3 |      |  |     |     |     |   |             | 4,738,606  |            |   |            |          |           
|                                                      | Repurchase agreements                                 |                        |     | 4.0 |      |  |     | 2.5  |     |   |             | 9,896,658  |            |   |            | 6,598,433 |           
|                                                      | Senior unsecured notes(a)                             |                        |     | 6.2 |      |  |     |     |     |   |             | 5,150,519  |            |   |            |          |           
|                                                      | FHLB advances  short-term                            |                        |     | 3.4 |      |  |     | 1.6  |     |   |             | 1,506,000  |            |   |            | 853,000   |           
|                                                      | FHLB advances  long-term(a)                          |                        |     | 4.3 |      |  |     | 3.1  |     |   |             | 2,922,000  |            |   |            | 654,000   |           
|                                                      | Third-party bank credit facilities  short-term       |                        |     | 2.1 |      |  |     | 0.7  |     |   |             | 450,000    |            |   |            | 1,116,500 |           
|                                                      | Third-party bank credit facilities 
    long-term(a) |                        |     | 5.6 |      |  |     |     |     |   |             | 1,750,000  |            |   |            |          |           
|                                                      | Debt collateralized by mortgage loans                 |                        |     | 4.9 |      |  |     | 4.9  |     |   |             | 2,150,529  |            |   |            | 736,538   |           
|                                                      | Servicing advances                                    |                        |     | 5.0 |      |  |     |     |     |   |             | 571,532    |            |   |            |          |           
|                                                      | Investor custodial funds                              |                        |     |    |      |  |     |     |     |   |             | 120,985    |            |   |            | 1,915,061 |           
|                                                      | Securities purchased under forward contracts          |                        |     |    |      |  |     | 2.6  |     |   |             |           |            |   |            | 226,844   |           
|                                                      | Other  short-term                                    |                        |     | 4.5 |      |  |     | 3.8  |     |   |             | 1,802,789  |            |   |            | 1,549,196 |           
|                                                      | Other  long-term(a)                                  |                        |     | 9.6 |      |  |     | 9.4  |     |   |             | 281,308    |            |   |            | 186,123   |           
|                                                      |                                                       |                        |     |     |      |  |     |      |     |   |             |           
|                                                      |                                                       | Total other borrowings |     |     | 4.6  |  |     |      | 2.4 |   |             |            | 42,300,507 |   |            |           | 23,703,650 | 
|                                                      |                                                       |                        |     |     |      |  |     |      |     |   |             |           
|Total borrowings                                      |                                                       |                        | 4.8 | %   |      |  | 3.1 | %    |     | $ | 103,575,770 |            |            | $ | 84,418,368 |          
|                                                      |                                                       |                        |     |     |      |  |     |      |     |   |             |           






|    |                                                                                                                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Represents borrowings with an original contractual maturity in
    excess of one year. In addition, affiliate borrowings had
    $4.1 billion of borrowings with an original maturity in
    excess of one year at December 31, 2005.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                     |                                       |                |            |             |      |   |            |            | 
|------------------------------------ | ------------------------------------- | -------------- | ---------- | ----------- | ---- | - | ---------- | ---------- | 
|December 31,                         |                                       | 2005           |            |             | 2004 |  
|                                     |                                       |                |            |             |      |  
|                                     |                                       | (In thousands) |           
|Mortgage loans held for investment   |                                       | $              | 67,798,758 |             |      | $ | 55,370,161 |           
|Mortgage loans held for sale         |                                       |                | 16,147,391 |             |      |   | 10,996,204 |           
|Trading securities                   |                                       |                | 2,696,896  |             |      |   | 2,213,045  |           
|Available for sale securities        |                                       |                | 929,112    |             |      |   | 1,114,532  |           
|Mortgage servicing rights            |                                       |                | 2,220,657  |             |      |   | 444,601    |           
|Lending receivables                  |                                       |                | 11,020,766 |             |      |   | 5,426,695  |           
|Accounts receivable                  |                                       |                | 795,149    |             |      |   | 128,366    |           
|Investments in real estate and other |                                       |                | 357,644    |             |      |   | 8,389      |           
|Other assets                         |                                       |                | 238,758    |             |      |   | 6,441      |           
|                                     |                                       |                |            |             |      |  
|                                     | Total assets restricted as collateral |                | $          | 102,205,131 |      |   | $          | 75,708,434 | 
|                                     |                                       |                |            |             |      |  
|Related secured debt                 |                                       | $              | 89,939,405 |             |      | $ | 69,933,446 |           
|                                     |                                       |                |            |             |      |  



|                                     |       |                |           |           |              |   |           |           | 
|------------------------------------ | ----- | -------------- | --------- | --------- | ------------ | - | --------- | --------- | 
|                                     |       | December 31,   |           |           | December 31, |  
|                                     |       | 2005           |           |           | 2004         |  
|                                     |       |                |           |           |              |  
|                                     |       | (In thousands) |          
|Mortgage loans held for sale         |       | $              | 3,880,448 |           |              | $ | 2,185,139 |          
|Mortgage loans held for investment   |       |                | 2,429,880 |           |              |   | 1,672,893 |          
|Available for sale securities        |       |                | 927,140   |           |              |   | 1,114,531 |          
|Trading securities                   |       |                | 2,126,393 |           |              |   | 898,041   |          
|Investments in real estate and other |       |                | 6,276     |           |              |   |          |          
|                                     |       |                |           |           |              |  
|                                     | Total |                | $         | 9,370,137 |              |   | $         | 5,870,604 | 
|                                     |       |                |           |           |              |  



|                         |  |                |            |  
|------------------------ |  | -------------- | ---------- | -
|Year Ending December 31, |  |               
|                         |  |               
|                         |  | (In thousands) |           
|2006                     |  | $              | 409,089    |  
|2007                     |  |                | 1,470,904  |  
|2008                     |  |                | 8,158,711  |  
|2009                     |  |                | 241,000    |  
|2010                     |  |                | 3,326,862  |  
|2011 and thereafter      |  |                | 61,490,923 |  
|                         |  |                |           
|Long-term principal      |  |                | 75,097,489 |  
|Unamortized discount     |  |                | (27,255    | )
|                         |  |                |           
|Total long-term debt     |  | $              | 75,070,234 |  
|                         |  |                |           



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






| |                     
| | --------------------
| | Affiliate Borrowings



10-year 1-year 2-year










| |                                                   
| | --------------------------------------------------
| | Collateralized borrowings in securitization trusts





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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                 
| | ----------------
| | Other borrowings

Secured aggregation facilities






Repurchase agreements


Senior unsecured notes


FHLB advances


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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Third-party bank credit facilities






Debt collateralized by mortgage loans


Investor custodial funds


Securities purchased under forward contracts


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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|    |             
|--- | ------------
|15. | Income Taxes



|                                       |                 |                          |         |         |         |  |          |          |         |  |          |          |         | 
|-------------------------------------- | --------------- | ------------------------ | ------- | ------- | ------- |  | -------- | -------- | ------- |  | -------- | -------- | ------- | 
|Year Ended December 31,                |                 | 2005                     |         |         | 2004    |  |          | 2003     |        
|                                       |                 |                          |         |         |         |  |          |          |        
|                                       |                 | (In thousands)           |        
|Current income tax expense (benefit):  |                 |                          |         |         |         |  |          |          |         |  |          |         
|                                       | U.S. Federal    |                          | $       | 317,897 |         |  | $        | (260,802 | )       |  | $        | 761,550  |        
|                                       | State and local |                          |         | 48,501  |         |  |          | 16,147   |         |  |          | 112,962  |        
|                                       | Foreign         |                          |         | 13,376  |         |  |          | 4,691    |         |  |          | 315      |        
|                                       |                 |                          |         |         |         |  |          |          |        
|                                       |                 |                          | 379,774 |         |         |  | (239,964 | )        |         |  | 874,827  |         
|Deferred income tax expense (benefit): |                 |                          |         |         |         |  |          |          |         |  |          |         
|                                       | U.S. Federal    |                          |         | 132,971 |         |  |          | 745,415  |         |  |          | (351,276 | )      
|                                       | State and local |                          |         | 49,981  |         |  |          | 105,959  |         |  |          | (36,962  | )      
|                                       | Foreign         |                          |         | 43,574  |         |  |          | 30,730   |         |  |          | 22,532   |        
|                                       |                 |                          |         |         |         |  |          |          |        
|                                       |                 |                          | 226,526 |         |         |  | 882,104  |          |         |  | (365,706 | )       
|                                       |                 |                          |         |         |         |  |          |          |        
|                                       |                 | Total income tax expense |         | $       | 606,300 |  |          | $        | 642,140 |  |          | $        | 509,121 | 
|                                       |                 |                          |         |         |         |  |          |          |        



|                          |                                                   |                                |   |         |           |   |   |         |          |  
|------------------------- | ------------------------------------------------- | ------------------------------ | - | ------- | --------- | - | - | ------- | -------- | -
|December 31,              |                                                   | 2005                           |   |         | 2004      |  
|                          |                                                   |                                |   |         |           |  
|                          |                                                   | (In thousands)                 |  
|Deferred tax assets:      |                                                   |                                |   |         |           |   |   |        
|                          | Allowance for loan losses                         |                                | $ | 157,827 |           |   | $ | 131,879 |         
|                          | Accruals not currently deductible                 |                                |   | 74,294  |           |   |   | 118,278 |         
|                          | Basis difference in mortgage loans and securities |                                |   | 232,969 |           |   |   | 127,342 |         
|                          | Loss carryforwards                                |                                |   | 40,458  |           |   |   | 13,335  |         
|                          | Depreciation                                      |                                |   | 22,680  |           |   |   | 24,637  |         
|                          | Foreign intercompany tax settlements              |                                |   |        |           |   |   | 18,789  |         
|                          | Available for sale securities                     |                                |   | 8,984   |           |   |   |        |         
|                          | Other                                             |                                |   | 2,863   |           |   |   | 4,021   |         
|                          |                                                   |                                |   |         |           |  
|                          |                                                   | Total deferred tax assets      |   |         | 540,075   |   |   |         | 438,281  |  
|Deferred tax liabilities: |                                                   |                                |   |         |           |   |   |        
|                          | Mortgage servicing rights                         |                                |   | 857,116 |           |   |   | 515,269 |         
|                          | Foreign intercompany tax settlements              |                                |   | 35,830  |           |   |   |        |         
|                          | Securitization activity                           |                                |   | 7,710   |           |   |   | 89,714  |         
|                          | Cash flow hedges                                  |                                |   | 62,726  |           |   |   | 56,391  |         
|                          | Available for sale securities                     |                                |   |        |           |   |   | 4,182   |         
|                          | Amortization of intangibles                       |                                |   | 33,971  |           |   |   | 23,276  |         
|                          | Other                                             |                                |   | 19,449  |           |   |   | 9,259   |         
|                          |                                                   |                                |   |         |           |  
|                          |                                                   | Total deferred tax liabilities |   |         | 1,016,802 |   |   |         | 698,091  |  
|                          |                                                   |                                |   |         |           |  
|                          |                                                   | Net deferred tax liability     |   | $       | (476,727  | ) |   | $       | (259,810 | )
|                          |                                                   |                                |   |         |           |  



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)














|                                                       |                          |                |         |         |         |  |      |        |   |   |         |         |  |        |      |      |         |   |         |         |  |  |      |      |  
|------------------------------------------------------ | ------------------------ | -------------- | ------- | ------- | ------- |  | ---- | ------ | - | - | ------- | ------- |  | ------ | ---- | ---- | ------- | - | ------- | ------- |  |  | ---- | ---- | -
|                                                       |                          | 2005           |         |         | 2004    |  |      | 2003   |  
|                                                       |                          |                |         |         |         |  |      |        |  
|Year Ended December 31,                                |                          | Amount         |         |         | Percent |  |      | Amount |   |   | Percent |         |  | Amount |      |      | Percent |  
|                                                       |                          |                |         |         |         |  |      |        |   |   |         |         |  |        |      |      |         |  
|                                                       |                          | (In thousands) |        
|Computed income tax expense                            |                          | $              | 569,424 |         |         |  | 35.0 | %      |   | $ | 563,623 |         |  |        | 35.0 | %    |         | $ | 478,078 |         |  |  | 35.0 | %   
|State income taxes, net of federal income tax benefits |                          |                | 64,942  |         |         |  | 4.0  |        |   |   | 79,368  |         |  |        | 4.9  |      |         |   | 49,399  |         |  |  | 3.6  |     
|Impact of foreign operations                           |                          |                | (18,565 | )       |         |  | (1.1 | )      |   |   | (5,294  | )       |  |        | (0.3 | )    |         |   | (4,623  | )       |  |  | (0.3 | )   
|Other, net                                             |                          |                | (9,501  | )       |         |  | (0.6 | )      |   |   | 4,443   |         |  |        | 0.3  |      |         |   | (13,733 | )       |  |  | (1.0 | )   
|                                                       |                          |                |         |         |         |  |      |        |   |   |         |         |  |        |      |      |         |  
|                                                       | Total income tax expense |                | $       | 606,300 |         |  |      | 37.3   | % |   | $       | 642,140 |  |        |      | 39.9 | %       |   | $       | 509,121 |  |  |      | 37.3 | %
|                                                       |                          |                |         |         |         |  |      |        |   |   |         |         |  |        |      |      |         |  



|    |                    
|--- | -------------------
|16. | Deposit Liabilities



|                                       |  |                |           |  |      |   |           | 
|-------------------------------------- |  | -------------- | --------- |  | ---- | - | --------- | 
|December 31,                           |  | 2005           |           |  | 2004 |  
|                                       |  |                |           |  |      |  
|                                       |  | (In thousands) |          
|Non-interest bearing deposits          |  | $              | 1,368,345 |  |      | $ | 1,302,677 | 
|NOW and money-market checking accounts |  |                | 508,830   |  |      |   | 353,609   | 
|Certificates of deposit                |  |                | 2,246,129 |  |      |   | 8,684     | 
|                                       |  |                |           |  |      |  
|Total                                  |  | $              | 4,123,304 |  |      | $ | 1,664,970 | 
|                                       |  |                |           |  |      |  

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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






|                         |  |                |           | 
|------------------------ |  | -------------- | --------- | 
|Year Ending December 31, |  |               
|                         |  | (In thousands) |          
|2006                     |  | $              | 1,328,221 | 
|2007                     |  |                | 270,579   | 
|2008                     |  |                |          | 
|2009                     |  |                |          | 
|2010                     |  |                | 2,821     | 
|2011 and thereafter      |  |                | 1,998     | 
|                         |  |                |          
|Total brokered deposits  |  | $              | 1,603,619 | 
|                         |  |                |          

17.     Employee Benefit Plans






|                          |  |                |        |  |      |   |        |      |  |   |        | 
|------------------------- |  | -------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|Year Ended December 31,   |  | 2005           |        |  | 2004 |   |        | 2003 | 
|                          |  |                |        |  |      |   |        |      | 
|                          |  | (In thousands) |       
|Defined benefit plan      |  | $              | 17,139 |  |      | $ | 25,512 |      |  | $ | 20,408 | 
|Defined contribution plan |  |                | 22,398 |  |      |   | 20,036 |      |  |   | 17,954 | 
|                          |  |                |        |  |      |   |        |      | 
|Total                     |  | $              | 39,537 |  |      | $ | 45,548 |      |  | $ | 38,362 | 
|                          |  |                |        |  |      |   |        |      | 

18.     Off-Balance Sheet
Securitization Transactions






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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                             |  |                |          |   |          |       |           |             |  |  |            |   |  |  |      |  
|---------------------------- |  | -------------- | -------- | - | -------- | ----- | --------- | ----------- |  |  | ---------- | - |  |  | ---- | -
|                             |  |                |          |   |          | Prime |           |             | 
|                             |  | Prime          |          |   | Nonprime |       |           | Second-Lien |  |  | Government |  
|                             |  | Non-Conforming |          |   | Mortgage |       |           | Mortgage    |  |  | Mortgage   |  
|Year Ended December 31, 2005 |  | Mortgage Loans |          |   | Loans    |       |           | Loans       |  |  | Loans      |  
|                             |  |                |          |   |          |       |           |             |  |  |            |  
|Prepayment speeds            |  |                | 7.0-28.3 | % |          |       | 0.0-60.0  | %           |  |  | 31.6-36.3  | % |  |  | 15.0 | %
|Weighted-avg. life (years)   |  |                | 3.1-8.5  |   |          |       | 1.8-6.6   |             |  |  | 2.0-3.3    |   |  |  | 1.1  |  
|Expected credit losses       |  |                | 0.0-1.5  | % |          |       | 0.1-4.8   | %           |  |  | 1.9-2.3    | % |  |  | 4.9  | %
|Discount rate                |  |                | 8.0-12.5 | % |          |       | 11.5-21.4 | %           |  |  | 12.0-16.5  | % |  |  | 6.5  | %

|                             |  |                |          |   |          |       |           |             |  |  |            |   |  |  |      |  
|---------------------------- |  | -------------- | -------- | - | -------- | ----- | --------- | ----------- |  |  | ---------- | - |  |  | ---- | -
|                             |  |                |          |   |          | Prime |           |             | 
|                             |  | Prime          |          |   | Nonprime |       |           | Second-Lien |  |  | Government |  
|                             |  | Non-Conforming |          |   | Mortgage |       |           | Mortgage    |  |  | Mortgage   |  
|Year Ended December 31, 2004 |  | Mortgage Loans |          |   | Loans    |       |           | Loans       |  |  | Loans      |  
|                             |  |                |          |   |          |       |           |             |  |  |            |  
|Prepayment speeds            |  |                | 7.0-33.4 | % |          |       | 0.0-51.3  | %           |  |  | 33.2-44.6  | % |  |  | 15.0 | %
|Weighted-avg. life (years)   |  |                | 2.8-6.0  |   |          |       | 1.1-4.7   |             |  |  | 1.6-3.2    |   |  |  | 1.1  |  
|Expected credit losses       |  |                | 0.6-2.1  | % |          |       | 0.2-10.9  | %           |  |  | 1.5-2.3    | % |  |  | 5.4  | %
|Discount rate                |  |                | 8.0-12.5 | % |          |       | 11.5-24.8 | %           |  |  | 12.0       | % |  |  | 6.5  | %



|                                  |                                                 |                |          |          |          |       |         |             |   |   |            |         |   |   |      |      |  
|--------------------------------- | ----------------------------------------------- | -------------- | -------- | -------- | -------- | ----- | ------- | ----------- | - | - | ---------- | ------- | - | - | ---- | ---- | -
|                                  |                                                 |                |          |          |          | Prime |         |             |  
|                                  |                                                 | Prime          |          |          | Nonprime |       |         | Second-Lien |   |   | Government |        
|                                  |                                                 | Non-Conforming |          |          | Mortgage |       |         | Mortgage    |   |   | Mortgage   |        
|Year Ended December 31, 2005      |                                                 | Mortgage Loans |          |          | Loans    |       |         | Loans       |   |   | Loans      |        
|                                  |                                                 |                |          |          |          |       |         |             |   |   |            |        
|                                  |                                                 | (In millions)  |         
|Cash inflows:                     |                                                 |                |          |          |          |       |         |             |   |   |            |         |   |   |      |     
|                                  | Proceeds from new securitizations               |                | $        | 27,548.2 |          |       | $       | 9,311.6     |   |   | $          | 5,071.3 |   |   | $    | 56.1 |  
|                                  | Servicing fees received                         |                |          | 135.2    |          |       |         | 69.0        |   |   |            | 40.0    |   |   |      | 0.8  |  
|                                  | Other cash flows received on retained interests |                |          | 142.2    |          |       |         | 285.2       |   |   |            | 133.0   |   |   |      | 22.3 |  
|                                  | Repayments of servicing advances                |                |          | 336.3    |          |       |         | 755.7       |   |   |            | 22.7    |   |   |      | 0.7  |  
|Cash outflows:                    |                                                 |                |          |          |          |       |         |             |   |   |            |         |   |   |      |     
|                                  | Servicing advances                              |                |          | (353.5   | )        |       |         | (807.2      | ) |   |            | (2.1    | ) |   |      | (0.6 | )
|Purchase obligations and options: |                                                 |                |          |          |          |       |         |             |   |   |            |         |   |   |      |     
|                                  | Mortgage loans under conditional call option    |                |          |         |          |       |         |            |   |   |            |        |   |   |      | (8.5 | )
|                                  | Representations and warranties obligations      |                |          | (10.0    | )        |       |         | (17.6       | ) |   |            | (1.7    | ) |   |      |     |  
|                                  | Asset performance conditional calls             |                |          | (19.1    | )        |       |         | (50.3       | ) |   |            | (29.9   | ) |   |      |     |  
|                                  | Clean-up calls                                  |                |          | (118.2   | )        |       |         | (1,889.0    | ) |   |            | (195.2  | ) |   |      |     |  
|                                  |                                                 |                |          |          |          |       |         |             |   |   |            |        
|Net cash flow                     |                                                 | $              | 27,661.1 |          |          | $     | 7,657.4 |             |   | $ | 5,038.1    |         |   | $ | 70.8 |     
|                                  |                                                 |                |          |          |          |       |         |             |   |   |            |        

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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                  |                                                 |                |          |          |          |       |         |             |   |   |            |         |   |   |       |       |  
|--------------------------------- | ----------------------------------------------- | -------------- | -------- | -------- | -------- | ----- | ------- | ----------- | - | - | ---------- | ------- | - | - | ----- | ----- | -
|                                  |                                                 |                |          |          |          | Prime |         |             |  
|                                  |                                                 | Prime          |          |          | Nonprime |       |         | Second-Lien |   |   | Government |        
|                                  |                                                 | Non-Conforming |          |          | Mortgage |       |         | Mortgage    |   |   | Mortgage   |        
|Year Ended December 31, 2004      |                                                 | Mortgage Loans |          |          | Loans    |       |         | Loans       |   |   | Loans      |        
|                                  |                                                 |                |          |          |          |       |         |             |   |   |            |        
|                                  |                                                 | (In millions)  |         
|Cash inflows:                     |                                                 |                |          |          |          |       |         |             |   |   |            |         |   |   |       |      
|                                  | Proceeds from new securitizations               |                | $        | 14,628.5 |          |       | $       | 9,440.2     |   |   | $          | 5,235.5 |   |   | $     | 108.1 |  
|                                  | Servicing fees received                         |                |          | 108.1    |          |       |         | 68.1        |   |   |            | 30.3    |   |   |       | 1.1   |  
|                                  | Other cash flows received on retained interests |                |          | 166.6    |          |       |         | 392.5       |   |   |            | 140.3   |   |   |       | 30.1  |  
|                                  | Repayments of servicing advances                |                |          | 85.7     |          |       |         | 293.1       |   |   |            | 567.1   |   |   |       | 0.7   |  
|Cash outflows:                    |                                                 |                |          |          |          |       |         |             |   |   |            |         |   |   |       |      
|                                  | Servicing advances                              |                |          | (92.9    | )        |       |         | (324.1      | ) |   |            | (617.4  | ) |   |       | (0.8  | )
|Purchase obligations and options: |                                                 |                |          |          |          |       |         |             |   |   |            |         |   |   |       |      
|                                  | Mortgage loans under conditional call option    |                |          |         |          |       |         |            |   |   |            |        |   |   |       | (21.6 | )
|                                  | Representations and warranties obligations      |                |          | (2.7     | )        |       |         | (37.1       | ) |   |            | (25.7   | ) |   |       |      |  
|                                  | Asset performance conditional calls             |                |          | (35.9    | )        |       |         | (87.7       | ) |   |            | (12.0   | ) |   |       | (1.1  | )
|                                  | Clean-up calls                                  |                |          | (3,448.3 | )        |       |         | (207.1      | ) |   |            | (141.5  | ) |   |       |      |  
|                                  |                                                 |                |          |          |          |       |         |             |   |   |            |        
|Net cash flow                     |                                                 | $              | 11,409.1 |          |          | $     | 9,537.9 |             |   | $ | 5,176.6    |         |   | $ | 116.5 |      
|                                  |                                                 |                |          |          |          |       |         |             |   |   |            |        

|                                  |                                                 |                |          |          |          |       |         |             |   |   |            |         |   |   |       |       |  
|--------------------------------- | ----------------------------------------------- | -------------- | -------- | -------- | -------- | ----- | ------- | ----------- | - | - | ---------- | ------- | - | - | ----- | ----- | -
|                                  |                                                 |                |          |          |          | Prime |         |             |  
|                                  |                                                 | Prime          |          |          | Nonprime |       |         | Second-Lien |   |   | Government |        
|                                  |                                                 | Non-Conforming |          |          | Mortgage |       |         | Mortgage    |   |   | Mortgage   |        
|Year Ended December 31, 2003      |                                                 | Mortgage Loans |          |          | Loans    |       |         | Loans       |   |   | Loans      |        
|                                  |                                                 |                |          |          |          |       |         |             |   |   |            |        
|                                  |                                                 | (In millions)  |         
|Cash inflows:                     |                                                 |                |          |          |          |       |         |             |   |   |            |         |   |   |       |      
|                                  | Proceeds from new securitizations               |                | $        | 20,558.4 |          |       | $       | 6,241.6     |   |   | $          | 2,648.9 |   |   | $     | 116.6 |  
|                                  | Servicing fees received                         |                |          | 153.2    |          |       |         | 63.8        |   |   |            | 31.6    |   |   |       | 1.2   |  
|                                  | Other cash flows received on retained interests |                |          | 218.8    |          |       |         | 545.0       |   |   |            | 159.8   |   |   |       | 31.2  |  
|                                  | Repayments of servicing advances                |                |          | 149.0    |          |       |         | 364.7       |   |   |            | 693.9   |   |   |       | 0.7   |  
|Cash outflows:                    |                                                 |                |          |          |          |       |         |             |   |   |            |         |   |   |       |      
|                                  | Servicing advances                              |                |          | (142.2   | )        |       |         | (416.2      | ) |   |            | (682.8  | ) |   |       | (0.7  | )
|Purchase obligations and options: |                                                 |                |          |          |          |       |         |             |   |   |            |         |   |   |       |      
|                                  | Mortgage loans under conditional call option    |                |          |         |          |       |         |            |   |   |            |        |   |   |       | (33.8 | )
|                                  | Representations and warranties obligations      |                |          | (12.3    | )        |       |         | (122.7      | ) |   |            | (12.3   | ) |   |       | (6.9  | )
|                                  | Asset performance conditional calls             |                |          | (37.2    | )        |       |         | (70.1       | ) |   |            | (14.7   | ) |   |       |      |  
|                                  | Clean-up calls                                  |                |          | (1,737.7 | )        |       |         |            |   |   |            | (181.3  | ) |   |       |      |  
|                                  |                                                 |                |          |          |          |       |         |             |   |   |            |        
|Net cash flow                     |                                                 | $              | 19,150.0 |          |          | $     | 6,606.1 |             |   | $ | 2,643.1    |         |   | $ | 108.3 |      
|                                  |                                                 |                |          |          |          |       |         |             |   |   |            |        

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                                           |  |                                                                         |          |   |          |       |            |             |  |   |            |   |  |   |      |  
|---------------------------------------------------------- |  | ----------------------------------------------------------------------- | -------- | - | -------- | ----- | ---------- | ----------- |  | - | ---------- | - |  | - | ---- | -
|                                                           |  |                                                                         |          |   |          | Prime |            |             | 
|                                                           |  | Prime                                                                   |          |   | Nonprime |       |            | Second-Lien |  |   | Government |  
|                                                           |  | Non-Conforming                                                          |          |   | Mortgage |       |            | Mortgage    |  |   | Mortgage   |  
|December 31, 2005                                          |  | Mortgage Loans                                                          |          |   | Loans    |       |            | Loans       |  |   | Loans      |  
|                                                           |  |                                                                         |          |   |          |       |            |             |  |   |            |  
|                                                           |  | (In millions)                                                           |         
|Carrying amount/fair value of retained interest securities |  | $                                                                       | 433.5    |   |          | $     | 359.3      |             |  | $ | 247.9      |   |  | $ | 16.0 |  
|Prepayment speeds                                          |  |                                                                         | 7.0-37.5 | % |          |       | 0-60.0     | %           |  |   | 23.8-42.8  | % |  |   | 15.0 | %
|Impact on fair value of 10% adverse change                 |  | $                                                                       | (19.6    | ) |          | $     | (10.6      | )           |  | $ | (15.5      | ) |  | $ |     |  
|Impact on fair value of 20% adverse change                 |  |                                                                         | (37.7    | ) |          |       | (15.8      | )           |  |   | (28.7      | ) |  |   |     |  
|Weighted average life (years)                              |  |                                                                         | 2.8-6.2  |   |          |       | 1.8-3.6    |             |  |   | 1.0-2.1    |   |  |   | 1.1  |  
|Expected credit losses                                     |  |                                                                         | 0-2.0    | % |          |       | 0-16.9     | %           |  |   | 0.7-2.8    | % |  |   | 4.9  | %
|Impact on fair value of 10% adverse change                 |  | $                                                                       | (4.3     | ) |          | $     | (25.4      | )           |  | $ | (12.7      | ) |  | $ | (0.7 | )
|Impact on fair value of 20% adverse change                 |  |                                                                         | (8.7     | ) |          |       | (45.5      | )           |  |   | (25.3      | ) |  |   | (1.4 | )
|Discount rate                                              |  |                                                                         | 8.0-12.8 | % |          |       | 10.2- 40.0 | %           |  |   | 11.5- 13.5 | % |  |   | 6.5  | %
|Impact on fair value of 10% adverse change                 |  | $                                                                       | (16.5    | ) |          | $     | (10.5      | )           |  | $ | (6.7       | ) |  | $ | (0.1 | )
|Impact on fair value of 20% adverse change                 |  |                                                                         | (31.8    | ) |          |       | (20.3      | )           |  |   | (13.0      | ) |  |   | (0.2 | )
|Interest rates on variable and adjustable contracts        |  | Forward benchmark interest rate yield curve plus contractual
    spread
|Impact on fair value of 10% adverse change                 |  | $                                                                       | 0.3      |   |          | $     | (7.3       | )           |  | $ | (3.5       | ) |  | $ | (0.9 | )
|Impact on fair value of 20% adverse change                 |  |                                                                         | 0.2      |   |          |       | (14.9      | )           |  |   | (9.3       | ) |  |   | (1.7 | )

|                                                           |  |                                                                         |          |   |          |       |            |             |  |   |            |   |  |   |      |  
|---------------------------------------------------------- |  | ----------------------------------------------------------------------- | -------- | - | -------- | ----- | ---------- | ----------- |  | - | ---------- | - |  | - | ---- | -
|                                                           |  |                                                                         |          |   |          | Prime |            |             | 
|                                                           |  | Prime                                                                   |          |   | Nonprime |       |            | Second-Lien |  |   | Government |  
|                                                           |  | Non-Conforming                                                          |          |   | Mortgage |       |            | Mortgage    |  |   | Mortgage   |  
|December 31, 2004                                          |  | Mortgage Loans                                                          |          |   | Loans    |       |            | Loans       |  |   | Loans      |  
|                                                           |  |                                                                         |          |   |          |       |            |             |  |   |            |  
|                                                           |  | (In millions)                                                           |         
|Carrying amount/fair value of retained interest securities |  | $                                                                       | 316.6    |   |          | $     | 681.5      |             |  | $ | 226.4      |   |  | $ | 23.0 |  
|Prepayment speeds                                          |  |                                                                         | 7.0-55.0 | % |          |       | 0-50.0     | %           |  |   | 31.9-45.7  | % |  |   | 15.0 | %
|Impact on fair value of 10% adverse change                 |  | $                                                                       | (18.0    | ) |          | $     | (7.6       | )           |  | $ | (22.1      | ) |  | $ |     |  
|Impact on fair value of 20% adverse change                 |  |                                                                         | (34.2    | ) |          |       | (12.4      | )           |  |   | (38.0      | ) |  |   |     |  
|Weighted average life (years)                              |  |                                                                         | 3.3-7.7  |   |          |       | 1.2-3.0    |             |  |   | 1.1-2.6    |   |  |   | 1.1  |  
|Expected credit losses                                     |  |                                                                         | 0-4.2    | % |          |       | 0.2- 26.1  | %           |  |   | 0.6-2.8    | % |  |   | 5.4  | %
|Impact on fair value of 10% adverse change                 |  | $                                                                       | (3.8     | ) |          | $     | (37.2      | )           |  | $ | (9.6       | ) |  | $ | (1.1 | )
|Impact on fair value of 20% adverse change                 |  |                                                                         | (7.3     | ) |          |       | (66.8      | )           |  |   | (19.0      | ) |  |   | (2.2 | )
|Discount rate                                              |  |                                                                         | 8.0-12.5 | % |          |       | 11.5- 40.0 | %           |  |   | 11.5- 13.5 | % |  |   | 6.5  | %
|Impact on fair value of 10% adverse change                 |  | $                                                                       | (13.7    | ) |          | $     | (18.0      | )           |  | $ | (4.9       | ) |  | $ | (0.1 | )
|Impact on fair value of 20% adverse change                 |  |                                                                         | (26.3    | ) |          |       | (33.9      | )           |  |   | (9.5       | ) |  |   | (0.2 | )
|Interest rates on variable and adjustable contracts        |  | Forward benchmark interest rate yield curve plus contractual
    spread
|Impact on fair value of 10% adverse change                 |  | $                                                                       | (1.2     | ) |          | $     | (12.0      | )           |  | $ | (0.6       | ) |  | $ | (1.3 | )
|Impact on fair value of 20% adverse change                 |  |                                                                         | (2.1     | ) |          |       | (24.4      | )           |  |   | (1.2       | ) |  |   | (2.6 | )



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                     |  |      |          |   |      |  |          |      |  |  |          |  
|-------------------- |  | ---- | -------- | - | ---- |  | -------- | ---- |  |  | -------- | -
|December 31,         |  | 2005 |          |   | 2004 |  |          | 2003 | 
|                     |  |      |          |   |      |  |          |      | 
|Prime non-conforming |  |      | 0.0- 2.0 | % |      |  | 0.0- 4.2 | %    |  |  | 0.0- 2.0 | %
|Nonprime             |  |      | 0.0-16.9 |   |      |  | 0.2-26.1 |      |  |  | 0.2-26.1 |  
|Prime second-lien    |  |      | 0.7-2.8  |   |      |  | 0.6-2.8  |      |  |  | 0.7-2.9  |  
|Government           |  |      | 4.9      |   |      |  | 5.4      |      |  |  | 5.1      |  



|                       |                                             |                      |         |              |                  |            |       |            |  |   |     |  | 
|---------------------- | ------------------------------------------- | -------------------- | ------- | ------------ | ---------------- | ---------- | ----- | ---------- |  | - | --- |  | 
|                       |                                             |                      |         |              |                  | Year Ended |      
|                       |                                             |                      |         | December 31, |                 
|                       |                                             | At December 31, 2005 |         |              | 2005             |           
|                       |                                             |                      |         |              |                  |           
|                       |                                             | Total Principal      |         |              | Loans 60 Days or |            |       | Net Credit | 
|Type of Mortgage Loan  |                                             | Amount of Loans      |         |              | More Past Due    |            |       | Losses     | 
|                       |                                             |                      |         |              |                  |            |       |            | 
|                       |                                             | (In millions)        |        
|Prime conforming       |                                             | $                    | 4,396   |              |                  | $          | 29    |            |  | $ |    | 
|Prime non-conforming   |                                             |                      | 67,504  |              |                  |            | 702   |            |  |   | 43  | 
|Nonprime               |                                             |                      | 79,817  |              |                  |            | 7,363 |            |  |   | 801 | 
|Prime second-lien      |                                             |                      | 15,064  |              |                  |            | 177   |            |  |   | 38  | 
|Government             |                                             |                      | 803     |              |                  |            | 411   |            |  |   | 3   | 
|                       |                                             |                      |         |              |                  |            |       |            | 
|Total managed loans(a) |                                             |                      | 167,584 |              |                  | $          | 8,682 |            |  | $ | 885 | 
|                       |                                             |                      |         |              |                  |            |       |            | 
|Less:                  |                                             |                      |         |              |                  |            |       |            |  |   |     | 
|                       | Mortgage loans securitized and sold         |                      |         | 79,087       |                  |            |       |            |  |   |     |  | 
|                       | Mortgage loans held for sale/securitization |                      |         | 19,538       |                  |            |       |            |  |   |     |  | 
|                       |                                             |                      |         |              |                  |            |       |            | 
|                       | Mortgage loans held for investment          |                      | $       | 68,959       |                  |            |       |            |  |   |     |  | 
|                       |                                             |                      |         |              |                  |            |       |            | 






|    |                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Total managed loans represent loans retained on the balance
    sheet or that have been securitized and sold, excluding
    securitized loans that the Company continues to service but has
    no other continuing involvement.

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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                       |                                             |                      |         |              |                  |            |       |            |  |   |     |  | 
|---------------------- | ------------------------------------------- | -------------------- | ------- | ------------ | ---------------- | ---------- | ----- | ---------- |  | - | --- |  | 
|                       |                                             |                      |         |              |                  | Year Ended |      
|                       |                                             |                      |         | December 31, |                 
|                       |                                             | At December 31, 2004 |         |              | 2004             |           
|                       |                                             |                      |         |              |                  |           
|                       |                                             | Total Principal      |         |              | Loans 60 Days or |            |       | Net Credit | 
|Type of Mortgage Loan  |                                             | Amount of Loans      |         |              | More Past Due    |            |       | Losses     | 
|                       |                                             |                      |         |              |                  |            |       |            | 
|                       |                                             | (In millions)        |        
|Prime conforming       |                                             | $                    | 3,749   |              |                  | $          | 15    |            |  | $ | 1   | 
|Prime non-conforming   |                                             |                      | 44,935  |              |                  |            | 550   |            |  |   | 48  | 
|Nonprime               |                                             |                      | 68,265  |              |                  |            | 5,642 |            |  |   | 841 | 
|Prime second-lien      |                                             |                      | 11,795  |              |                  |            | 130   |            |  |   | 50  | 
|Government             |                                             |                      | 831     |              |                  |            | 350   |            |  |   | 3   | 
|                       |                                             |                      |         |              |                  |            |       |            | 
|Total managed loans(a) |                                             |                      | 129,575 |              |                  | $          | 6,687 |            |  | $ | 943 | 
|                       |                                             |                      |         |              |                  |            |       |            | 
|Less:                  |                                             |                      |         |              |                  |            |       |            |  |   |     | 
|                       | Mortgage loans securitized and sold         |                      |         | 57,819       |                  |            |       |            |  |   |     |  | 
|                       | Mortgage loans held for sale/securitization |                      |         | 14,048       |                  |            |       |            |  |   |     |  | 
|                       |                                             |                      |         |              |                  |            |       |            | 
|                       | Mortgage loans held for investment          |                      | $       | 57,708       |                  |            |       |            |  |   |     |  | 
|                       |                                             |                      |         |              |                  |            |       |            | 






|    |                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Total managed loans represent loans retained on the balance
    sheet or that have been securitized and sold, excluding
    securitized loans that the Company continues to service but has
    no other continuing involvement.



|    |                           
|--- | --------------------------
|19. | Variable Interest Entities



Mortgage Warehouse Funding mortgage-related bank-sponsored Accounting
for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities




Warehouse Lending asset-backed


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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






Collateralized Debt Obligations (CDO)




Construction and Real Estate Lending






Other Relationships


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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


20.     Other Comprehensive
Income




|                             |                 |                 |         |         |               |   |        |                 |   |       |               |         |   |   |         |         |  
|---------------------------- | --------------- | --------------- | ------- | ------- | ------------- | - | ------ | --------------- | - | ----- | ------------- | ------- | - | - | ------- | ------- | -
|                             |                 |                 |         |         |               |   |        | Accumulated     |  
|                             |                 | Unrealized Gain |         |         | Foreign       |   |        |                 |   | Other |              
|                             |                 | (Loss) on       |         |         | Currency      |   |        | Unrealized Gain |   |       | Comprehensive |        
|                             |                 | Investment      |         |         | Translation   |   |        | (Loss) on Cash  |   |       | Income        |        
|                             |                 | Securities(a)   |         |         | Adjustment(b) |   |        | Flow Hedges     |   |       | (Loss)        |        
|                             |                 |                 |         |         |               |   |        |                 |   |       |               |        
|                             |                 | (In thousands)  |        
|Balance at January 1, 2003   |                 | $               | 35,018  |         |               | $ | 10,774 |                 |   | $     |              |         |   | $ | 45,792  |        
|                             | 2003 net change |                 |         | (37,683 | )             |   |        | 15,652          |   |       |               | (23,095 | ) |   |         | (45,126 | )
|                             |                 |                 |         |         |               |   |        |                 |   |       |               |        
|Balance at December 31, 2003 |                 |                 | (2,665  | )       |               |   | 26,426 |                 |   |       | (23,095       | )       |   |   | 666     |        
|                             | 2004 net change |                 |         | 10,432  |               |   |        | 21,109          |   |       |               | 126,799 |   |   |         | 158,340 |  
|                             |                 |                 |         |         |               |   |        |                 |   |       |               |        
|Balance at December 31, 2004 |                 |                 | 7,767   |         |               |   | 47,535 |                 |   |       | 103,704       |         |   |   | 159,006 |        
|                             | 2005 net change |                 |         | (24,451 | )             |   |        | (33,103         | ) |       |               | 14,254  |   |   |         | (43,300 | )
|                             |                 |                 |         |         |               |   |        |                 |   |       |               |        
|Balance at December 31, 2005 |                 | $               | (16,684 | )       |               | $ | 14,432 |                 |   | $     | 117,958       |         |   | $ | 115,706 |        
|                             |                 |                 |         |         |               |   |        |                 |   |       |               |        






|    |                                                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Represents the after-tax difference between the fair value and
    amortized cost of the available for sale securities portfolio.                                                                                                                                                                                  
|   
|(b) | Includes after-tax gains and losses on foreign currency
    translation from operations for which the functional currency is
    other than the U.S. dollar. Net change amounts were net of taxes
    totaling $0.1, $0.1 and $0.2 million for the years ended
    December 31, 2005, 2004, and 2003, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                                                                      |  |                |         |   |            |   |         |            |  |   |         |  
|------------------------------------------------------------------------------------- |  | -------------- | ------- | - | ---------- | - | ------- | ---------- |  | - | ------- | -
|Year Ended December 31,                                                               |  | Pretax         |         |   | Tax Effect |   |         | Net of Tax | 
|                                                                                      |  |                |         |   |            |   |         |            | 
|                                                                                      |  | (In thousands) |        
|2005                                                                                  |  |                |         |   |            |   |         |            |  |   |         |  
|Available for sale securities:                                                        |  |                |         |   |            |   |         |            |  |   |         |  
|Net unrealized losses arising during the year                                         |  | $              | (25,742 | ) |            | $ | 9,010   |            |  | $ | (16,732 | )
|Reclassification of net gains included in net income                                  |  |                | (11,780 | ) |            |   | 4,061   |            |  |   | (7,719  | )
|                                                                                      |  |                |         |   |            |   |         |            | 
|Net unrealized losses arising during the year, net of
    reclassification adjustment |  | $              | (37,522 | ) |            | $ | 13,071  |            |  | $ | (24,451 | )
|                                                                                      |  |                |         |   |            |   |         |            | 
|Cash flow hedges:                                                                     |  |                |         |   |            |   |         |            |  |   |         |  
|Net unrealized gains arising during the year                                          |  | $              | 27,136  |   |            | $ | (8,627  | )          |  | $ | 18,509  |  
|Reclassification of net gains included in net income                                  |  |                | (6,548  | ) |            |   | 2,293   |            |  |   | (4,255  | )
|                                                                                      |  |                |         |   |            |   |         |            | 
|Net unrealized gains arising during the year, net of
    reclassification adjustment  |  | $              | 20,588  |   |            | $ | (6,334  | )          |  | $ | 14,254  |  
|                                                                                      |  |                |         |   |            |   |         |            | 
|2004                                                                                  |  |                |         |   |            |   |         |            |  |   |         |  
|Available for sale securities:                                                        |  |                |         |   |            |   |         |            |  |   |         |  
|Net unrealized gains arising during the year                                          |  | $              | 9,691   |   |            | $ | (3,449  | )          |  | $ | 6,242   |  
|Reclassification of losses included in net income                                     |  |                | 6,506   |   |            |   | (2,316  | )          |  |   | 4,190   |  
|                                                                                      |  |                |         |   |            |   |         |            | 
|Net unrealized gains arising during the year, net of
    reclassification adjustment  |  | $              | 16,197  |   |            | $ | (5,765  | )          |  | $ | 10,432  |  
|                                                                                      |  |                |         |   |            |   |         |            | 
|Cash flow hedges:                                                                     |  |                |         |   |            |   |         |            |  |   |         |  
|Net unrealized gains arising during the year                                          |  | $              | 205,261 |   |            | $ | (72,197 | )          |  | $ | 133,064 |  
|Reclassification of net gains included in net income                                  |  |                | (9,665  | ) |            |   | 3,400   |            |  |   | (6,265  | )
|                                                                                      |  |                |         |   |            |   |         |            | 
|Net unrealized gains arising during the year, net of
    reclassification adjustment  |  | $              | 195,596 |   |            | $ | (68,797 | )          |  | $ | 126,799 |  
|                                                                                      |  |                |         |   |            |   |         |            | 
|2003                                                                                  |  |                |         |   |            |   |         |            |  |   |         |  
|Available for sale securities:                                                        |  |                |         |   |            |   |         |            |  |   |         |  
|Net unrealized gains arising during the year                                          |  | $              | 10,344  |   |            | $ | (3,620  | )          |  | $ | 6,724   |  
|Reclassification of net gains included in net income                                  |  |                | (68,314 | ) |            |   | 23,907  |            |  |   | (44,407 | )
|                                                                                      |  |                |         |   |            |   |         |            | 
|Net unrealized losses arising during the year, net of
    reclassification adjustment |  | $              | (57,970 | ) |            | $ | 20,287  |            |  | $ | (37,683 | )
|                                                                                      |  |                |         |   |            |   |         |            | 
|Cash flow hedges:                                                                     |  |                |         |   |            |   |         |            |  |   |         |  
|Net unrealized losses arising during the year                                         |  | $              | (35,833 | ) |            | $ | 12,345  |            |  | $ | (23,488 | )
|Reclassification of net losses included in net income                                 |  |                | 332     |   |            |   | 61      |            |  |   | 393     |  
|                                                                                      |  |                |         |   |            |   |         |            | 
|Net unrealized losses arising during the year, net of
    reclassification adjustment |  | $              | (35,501 | ) |            | $ | 12,406  |            |  | $ | (23,095 | )
|                                                                                      |  |                |         |   |            |   |         |            | 

21.     Fair Value of Financial
Instruments




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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






|                                                   |  |                |            |  |            |   |            |          |  |   |            |  |  |   |            | 
|-------------------------------------------------- |  | -------------- | ---------- |  | ---------- | - | ---------- | -------- |  | - | ---------- |  |  | - | ---------- | 
|                                                   |  | 2005           |            |  | 2004       |  
|                                                   |  |                |            |  |            |  
|                                                   |  | Carrying       |            |  | Estimated  |   |            | Carrying |  |   | Estimated  | 
|December 31,                                       |  | Amount         |            |  | Fair Value |   |            | Amount   |  |   | Fair Value | 
|                                                   |  |                |            |  |            |   |            |          |  |   |            | 
|                                                   |  | (In thousands) |           
|Assets                                             |  |                |            |  |            |   |            |          |  |   |            |  |  |   |            | 
|Cash and cash equivalents                          |  | $              | 2,266,753  |  |            | $ | 2,266,753  |          |  | $ | 899,083    |  |  | $ | 899,083    | 
|Mortgage loans held for sale                       |  |                | 19,521,566 |  |            |   | 19,589,428 |          |  |   | 14,032,781 |  |  |   | 14,273,983 | 
|Trading securities                                 |  |                | 3,896,008  |  |            |   | 3,896,008  |          |  |   | 2,714,700  |  |  |   | 2,714,700  | 
|Available for sale securities                      |  |                | 1,068,937  |  |            |   | 1,068,937  |          |  |   | 1,244,658  |  |  |   | 1,244,658  | 
|Mortgage loans held for investment, net            |  |                | 67,892,660 |  |            |   | 69,061,822 |          |  |   | 56,835,356 |  |  |   | 57,625,916 | 
|Lending receivables, net                           |  |                | 13,401,047 |  |            |   | 13,398,363 |          |  |   | 9,357,397  |  |  |   | 9,358,445  | 
|Derivatives  asset position                       |  |                | 681,411    |  |            |   | 681,411    |          |  |   | 593,976    |  |  |   | 593,976    | 
|Other assets                                       |  |                | 298,021    |  |            |   | 299,005    |          |  |   | 44,398     |  |  |   | 44,356     | 
|Liabilities                                        |  |                |            |  |            |   |            |          |  |   |            |  |  |   |            | 
|Affiliate borrowings                               |  | $              | 5,177,462  |  |            | $ | 5,177,462  |          |  | $ | 10,006,242 |  |  | $ | 10,006,242 | 
|Collateralized borrowings in securitization trusts |  |                | 56,097,801 |  |            |   | 56,318,710 |          |  |   | 50,708,476 |  |  |   | 50,732,853 | 
|Other borrowings                                   |  |                | 42,300,507 |  |            |   | 42,283,758 |          |  |   | 23,703,650 |  |  |   | 23,704,528 | 
|Deposit liabilities                                |  |                | 4,123,304  |  |            |   | 4,048,344  |          |  |   | 1,664,970  |  |  |   | 1,573,001  | 
|Derivatives  liability position                   |  |                | 252,275    |  |            |   | 252,275    |          |  |   | 278,991    |  |  |   | 278,991    | 
|Other liabilities                                  |  |                |           |  |            |   |           |          |  |   | 37,793     |  |  |   | 37,793     | 



|                                                            |                                         |                |         |           |            |  |      |          |           |  |            |           |  |  |      |   | 
|----------------------------------------------------------- | --------------------------------------- | -------------- | ------- | --------- | ---------- |  | ---- | -------- | --------- |  | ---------- | --------- |  |  | ---- | - | 
|                                                            |                                         | 2005           |         |           | 2004       | 
|                                                            |                                         |                |         |           |            | 
|                                                            |                                         |                |         | Estimated |            |  |      |          | Estimated | 
|December 31,                                                |                                         | Notional       |         |           | Fair Value |  |      | Notional |           |  | Fair Value |          
|                                                            |                                         |                |         |           |            |  |      |          |           |  |            |          
|                                                            |                                         | (In thousands) |        
|Unfunded commitments to extend credit:                      |                                         |                |         |           |            |  |      |          |           |  |            |           |  |  |      |  
|                                                            | Home equity lines of credit             |                | $       | 4,060,452 |            |  | $    |         |           |  | $          | 4,428,984 |  |  | $    |  | 
|                                                            | Warehouse lending receivables           |                |         | 8,917,946 |            |  |      |         |           |  |            | 7,787,227 |  |  |      |  | 
|                                                            | Construction lending receivables        |                |         | 1,568,951 |            |  |      |         |           |  |            | 1,942,382 |  |  |      |  | 
|                                                            | Commercial business lending receivables |                |         | 730,182   |            |  |      |         |           |  |            | 646,214   |  |  |      |  | 
|                                                            | Healthcare lending receivables          |                |         | 194,372   |            |  |      |         |           |  |            | 274,269   |  |  |      |  | 
|                                                            | Residential construction loans          |                |         | 308,792   |            |  |      |         |           |  |            | 201,948   |  |  |      |  | 
|Commitments to provide capital to equity method investees   |                                         |                | 213,141 |           |            |  |     |          |           |  | 323,394    |           |  |  |     |  
|Commitments to originate mortgage loans held for investment |                                         |                | 94,895  |           |            |  | 298  |          |           |  | 210,062    |           |  |  | (980 | )
|Standby letters of credit                                   |                                         |                | 48,074  |           |            |  | (220 | )        |           |  | 69,070     |           |  |  | (245 | )
|Set-aside letters                                           |                                         |                | 53,523  |           |            |  | (109 | )        |           |  | 84,876     |           |  |  | (236 | )



Cash and cash equivalents, lending receivables and other
assets


Mortgage loans held for sale


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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Trading and available for sale securities


Mortgage loans held for investment


Derivative financial instruments


Affiliate borrowings


Collateralized borrowings


Other borrowings


Deposit liabilities


Other liabilities


Unfunded commitments to extend credit and commitments to
provide capital to equity method investees


Commitments to originate mortgage loans held for
investment


Standby letters of credit and set-aside
letters


22.     Derivative Instruments




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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






| |                  
| | -----------------
| | Fair Value Hedges



Mortgage servicing rights


R-squared,




Mortgage loans held for sale and commitments to
purchase/originate mortgages R-squared,


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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)










Senior unsecured notes




| |                 
| | ----------------
| | Cash Flow Hedges





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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






| |                                                
| | -----------------------------------------------
| | Derivatives Not Designated as Accounting Hedges









| |                              
| | -----------------------------
| | Income Statement Presentation



|                                              |                               |                |        |         |      |   |        |        |   |   |                                 |         |   |  |                                         
|--------------------------------------------- | ----------------------------- | -------------- | ------ | ------- | ---- | - | ------ | ------ | - | - | ------------------------------- | ------- | - |  | ----------------------------------------
|Year Ended December 31,                       |                               | 2005           |        |         | 2004 |   |        | 2003   |   |   | Income Statement Classification
|                                              |                               |                |        |         |      |   |        |        |   |   |                                
|                                              |                               | (In thousands) |        |         |     
|Fair value hedge ineffectiveness gain (loss): |                               |                |        |         |      |   |        |        |   |   |                                 |         |   | 
|                                              | Mortgage servicing rights     |                | $      | 56,791  |      |   | $      | 69,888 |   |   | $                               | 347,835 |   |  | Servicing asset valuation and hedge gain
|                                              | Mortgage loans held for sale  |                |        | (22,680 | )    |   |        | (9,500 | ) |   |                                 | (1,674  | ) |  | Gain on sale of mortgage loans          
|                                              | Senior unsecured notes        |                |        | (1,553  | )    |   |        |       |   |   |                                 |        |   |  | Interest expense                        
|Cash flow hedge ineffectiveness gain (loss):  |                               |                |        |         |      |   |        |        |   |   |                                 |         |   | 
|                                              | Debt and future debt issuance |                |        | 5,773   |      |   |        | (3,535 | ) |   |                                 | (1,212  | ) |  | Interest expense                        
|                                              |                               |                |        |         |      |   |        |        |   |   |                                
|Total                                         |                               | $              | 38,331 |         |      | $ | 56,853 |        |   | $ | 344,949                         |         |   | 
|                                              |                               |                |        |         |      |   |        |        |   |   |                                

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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                                                                                 |  |                |        |  |      |   |         |      |  |   |         |  
|------------------------------------------------------------------------------------------------ |  | -------------- | ------ |  | ---- | - | ------- | ---- |  | - | ------- | -
|Year Ended December 31,                                                                          |  | 2005           |        |  | 2004 |   |         | 2003 | 
|                                                                                                 |  |                |        |  |      |   |         |      | 
|                                                                                                 |  | (In thousands) |       
|Net gain on fair value hedges excluded from assessment of
    effectiveness (time component)     |  | $              | 59,233 |  |      | $ | 180,414 |      |  | $ | 174,948 |  
|Expected reclassifications from other comprehensive income to
    earnings in the next 12 months |  |                | 10,716 |  |      |   | 101,473 |      |  |   | (32,171 | )

23.     Guarantees, Commitments, and
Contingencies




| |           
| | ----------
| | Guarantees



|                              |                                        |                |           |          |              |   |       |           |          |   |              |         |  |   |     |        | 
|----------------------------- | -------------------------------------- | -------------- | --------- | -------- | ------------ | - | ----- | --------- | -------- | - | ------------ | ------- |  | - | --- | ------ | 
|                              |                                        | 2005           |           |          | 2004         |  
|                              |                                        |                |           |          |              |  
|                              |                                        |                |           | Carrying |              |   |       |           | Carrying |  
|                              |                                        | Maximum        |           |          | Value        |   |       | Maximum   |          |   | Value        |        
|December 31,                  |                                        | Liability      |           |          | of Liability |   |       | Liability |          |   | of Liability |        
|                              |                                        |                |           |          |              |   |       |           |          |   |              |        
|                              |                                        | (In thousands) |          
|Standby letters of credit     |                                        | $              | 48,074    |          |              | $ | 220   |           |          | $ | 69,070       |         |  | $ | 245 |       
|Securitization and sales:     |                                        |                |           |          |              |   |       |           |          |   |              |         |  |   |     |       
|                              | HLTV and international securitizations |                |           | 204,637  |              |   |       | 574       |          |   |              | 450,055 |  |   |     | 11,208 | 
|                              | Mortgage-related securities            |                |           |         |              |   |       |          |          |   |              | 30,896  |  |   |     | 29,210 | 
|Agency loan program           |                                        |                | 6,196,091 |          |              |   |      |           |          |   | 4,711,372    |         |  |   |    |       
|Servicing advances            |                                        |                | *         |          |              |   | 3,421 |           |          |   |             |         |  |   |    |       
|Set-aside letters             |                                        |                | 53,523    |          |              |   | 109   |           |          |   | 84,876       |         |  |   | 236 |       
|Repurchase guarantees         |                                        |                | 256,335   |          |              |   | 96    |           |          |   |             |         |  |   |    |       
|Credit enhancement guarantees |                                        |                | 24,894    |          |              |   | 335   |           |          |   | 7,868        |         |  |   | 250 |       
|Performance guarantees        |                                        |                | 4,264     |          |              |   |      |           |          |   |             |         |  |   |    |       
|Other                         |                                        |                | 47,654    |          |              |   |      |           |          |   | 42,586       |         |  |   |    |       






|  |                                                                                                                                                                                                                                                              
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | The maximum obligation for servicing advances cannot be
    determined. At any point in time, the maximum obligation would
    be the difference between the amount advanced to the owners of
    the mortgage loans and the amount received from mortgagees.

Standby letters of credit


HLTV and international securitizations




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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




Mortgage-related securities


Agency loan program


Third-party debt guarantees


Set-aside letters


Repurchase guarantees


Credit enhancement guarantees


Performance guarantees


Other




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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                              
| | -----------------------------
| | Commitments and Contingencies



|                         |  |                |         | 
|------------------------ |  | -------------- | ------- | 
|Year Ending December 31, |  |               
|                         |  |               
|                         |  | (In thousands) |        
|2006                     |  | $              | 86,132  | 
|2007                     |  |                | 74,892  | 
|2008                     |  |                | 51,946  | 
|2009                     |  |                | 29,813  | 
|2010                     |  |                | 19,911  | 
|2011 and thereafter      |  |                | 49,404  | 
|                         |  |                |        
|                         |  | $              | 312,098 | 
|                         |  |                |        





24.     Related Party
Transactions












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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)














25.     Mortgage Loans Serviced




|                     |       |                        |           |           |           |   |             |             |  |         |                 |   |         |         |     |  |  |  |      |   | 
|-------------------- | ----- | ---------------------- | --------- | --------- | --------- | - | ----------- | ----------- |  | ------- | --------------- | - | ------- | ------- | --- |  |  |  | ---- | - | 
|                     |       |                        |           |           |           |   |             | Weighted-   |  |         | Weighted-       |  
|                     |       |                        |           | Unpaid    |           |   | Weighted-   |             |  | Average |                 |   | Average |        
|                     |       | Number                 |           |           | Principal |   |             | Average     |  |         | Remaining       |   |         | Service |    
|                     |       | of Loans               |           |           | Balance   |   |             | Coupon      |  |         | Maturity Months |   |         | Fees    |    
|                     |       |                        |           |           |           |   |             |             |  |         |                 |   |         |         |    
|                     |       | (Dollars in thousands) |          
|Prime conforming     |       |                        | 1,393,379 |           |           | $ | 186,404,390 |             |  |         | 5.82            | % |         |         | 293 |  |  |  | 0.43 | %
|Prime non-conforming |       |                        | 325,453   |           |           |   | 89,252,680  |             |  |         | 5.76            |   |         |         | 313 |  |  |  | 0.25 |  
|Nonprime             |       |                        | 562,903   |           |           |   | 67,776,541  |             |  |         | 7.88            |   |         |         | 306 |  |  |  | 0.36 |  
|Prime second-lien    |       |                        | 501,634   |           |           |   | 17,108,065  |             |  |         | 8.22            |   |         |         | 201 |  |  |  | 0.33 |  
|Government           |       |                        | 181,679   |           |           |   | 18,098,329  |             |  |         | 5.85            |   |         |         | 321 |  |  |  | 0.49 |  
|                     |       |                        |           |           |           |   |             |             |  |         |                 |   |         |         |    
|                     | Total |                        |           | 2,965,048 |           |   | $           | 378,640,005 |  |         |                 |   |         |         |     |  |  |  |      |   | 
|                     |       |                        |           |           |           |   |             |             |  |         |                 |   |         |         |    

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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|               |  |  |       |  
|-------------- |  |  | ----- | -
|California     |  |  | 19.8  | %
|Florida        |  |  | 6.0   |  
|Michigan       |  |  | 4.6   |  
|United Kingdom |  |  | 4.3   |  
|Texas          |  |  | 4.3   |  
|All other      |  |  | 61.0  |  
|               |  |  |      
|Total          |  |  | 100.0 | %
|               |  |  |      







26.     Segment Information






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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |               |            |   |              |   |            |              |  |   |             |   |  |   |             |  
|-------------------------------- |  | -------------- | ---------- | ----------- | ------- | - | ---------- | ------- |  | ------------- | --------- | - |  | ------------- | ---------- | - | ------------ | - | ---------- | ------------ |  | - | ----------- | - |  | - | ----------- | -
|                                 |  |                |            | Residential |         |   | Business   |         |  | International |           |   |  |               |            |   |             
|                                 |  | GMAC           |            |             | Capital |   |            | Capital |  |               | Business  |   |  | Corporate and |            |   |              |   |           
|Year Ended December 31,          |  | Residential    |            |             | Group   |   |            | Group   |  |               | Group     |   |  | Other         |            |   | Eliminations |   |            | Consolidated | 
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |               |            |   |              |   |            |              | 
|                                 |  | (In thousands) |           
|2005                             |  |                |            |             |         |   |            |         |  |               |           |   |  |               |            |   |              |   |            |              |  |   |             |   |  |   |             |  
|Net interest income (expense)    |  | $              | 289,838    |             |         | $ | 1,336,230  |         |  | $             | 147,894   |   |  | $             | 152,156    |   |              | $ | (1,123     | )            |  | $ |            |   |  | $ | 1,924,995   |  
|Provision for loan losses        |  |                | (3,034     | )           |         |   | (621,272   | )       |  |               | (25,847   | ) |  |               | (1,678     | ) |              |   | 35         |              |  |   |            |   |  |   | (651,796    | )
|Other income                     |  |                | 1,199,537  |             |         |   | 741,321    |         |  |               | 280,552   |   |  |               | 232,068    |   |              |   | 509,697    |              |  |   | (1,114      | ) |  |   | 2,962,061   |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |               |            |   |              |   |            |              | 
|Total net revenue                |  |                | 1,486,341  |             |         |   | 1,456,279  |         |  |               | 402,599   |   |  |               | 382,546    |   |              |   | 508,609    |              |  |   | (1,114      | ) |  |   | 4,235,260   |  
|Operating expenses               |  |                | 954,314    |             |         |   | 822,629    |         |  |               | 81,213    |   |  |               | 253,298    |   |              |   | 496,880    |              |  |   |            |   |  |   | 2,608,334   |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |               |            |   |              |   |            |              | 
|Income before income tax expense |  |                | 532,027    |             |         |   | 633,650    |         |  |               | 321,386   |   |  |               | 129,248    |   |              |   | 11,729     |              |  |   | (1,114      | ) |  |   | 1,626,926   |  
|Income tax expense (benefit)     |  |                | 224,599    |             |         |   | 238,099    |         |  |               | 120,809   |   |  |               | 39,159     |   |              |   | (15,938    | )            |  |   | (428        | ) |  |   | 606,300     |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |               |            |   |              |   |            |              | 
|Net income                       |  | $              | 307,428    |             |         | $ | 395,551    |         |  | $             | 200,577   |   |  | $             | 90,089     |   |              | $ | 27,667     |              |  | $ | (686        | ) |  | $ | 1,020,626   |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |               |            |   |              |   |            |              | 
|Total assets                     |  | $              | 23,058,446 |             |         | $ | 77,225,029 |         |  | $             | 5,545,713 |   |  | $             | 10,694,661 |   |              | $ | 19,308,813 |              |  | $ | (16,947,570 | ) |  | $ | 118,885,092 |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |               |            |   |              |   |            |              | 

|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |               |           |   |              |   |          |              |  |   |        |   |  |   |            |  
|-------------------------------- |  | -------------- | ---------- | ----------- | ------- | - | ---------- | ------- |  | ------------- | --------- | - |  | ------------- | --------- | - | ------------ | - | -------- | ------------ |  | - | ------ | - |  | - | ---------- | -
|                                 |  |                |            | Residential |         |   | Business   |         |  | International |           |   |  |               |           |   |             
|                                 |  | GMAC           |            |             | Capital |   |            | Capital |  |               | Business  |   |  | Corporate and |           |   |              |   |         
|Year Ended December 31,          |  | Residential    |            |             | Group   |   |            | Group   |  |               | Group     |   |  | Other         |           |   | Eliminations |   |          | Consolidated | 
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |               |           |   |              |   |          |              | 
|                                 |  | (In thousands) |           
|2004                             |  |                |            |             |         |   |            |         |  |               |           |   |  |               |           |   |              |   |          |              |  |   |        |   |  |   |            |  
|Net interest income (expense)    |  | $              | 327,610    |             |         | $ | 2,050,190  |         |  | $             | 124,175   |   |  | $             | 105,474   |   |              | $ | (21,550  | )            |  | $ |       |   |  | $ | 2,585,899  |  
|Provision for loan losses        |  |                | 2,763      |             |         |   | (819,971   | )       |  |               | (20,984   | ) |  |               | (4,494    | ) |              |   | (213     | )            |  |   |       |   |  |   | (842,899   | )
|Other income                     |  |                | 942,554    |             |         |   | 406,140    |         |  |               | 208,799   |   |  |               | 176,861   |   |              |   | 489,372  |              |  |   |       |   |  |   | 2,223,726  |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |               |           |   |              |   |          |              | 
|Total net revenue                |  |                | 1,272,927  |             |         |   | 1,636,359  |         |  |               | 311,990   |   |  |               | 277,841   |   |              |   | 467,609  |              |  |   |       |   |  |   | 3,966,726  |  
|Operating expenses               |  |                | 767,416    |             |         |   | 844,678    |         |  |               | 71,789    |   |  |               | 200,448   |   |              |   | 472,043  |              |  |   |       |   |  |   | 2,356,374  |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |               |           |   |              |   |          |              | 
|Income before income tax expense |  |                | 505,511    |             |         |   | 791,681    |         |  |               | 240,201   |   |  |               | 77,393    |   |              |   | (4,434   | )            |  |   |       |   |  |   | 1,610,352  |  
|Income tax expense (benefit)     |  |                | 224,950    |             |         |   | 302,796    |         |  |               | 91,877    |   |  |               | 26,075    |   |              |   | (3,558   | )            |  |   |       |   |  |   | 642,140    |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |               |           |   |              |   |          |              | 
|Net income (loss)                |  | $              | 280,561    |             |         | $ | 488,885    |         |  | $             | 148,324   |   |  | $             | 51,318    |   |              | $ | (876     | )            |  | $ |       |   |  | $ | 968,212    |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |               |           |   |              |   |          |              | 
|Total assets                     |  | $              | 15,325,139 |             |         | $ | 66,856,173 |         |  | $             | 4,429,835 |   |  | $             | 8,133,785 |   |              | $ | (393,634 | )            |  | $ | (1,834 | ) |  | $ | 94,349,464 |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |               |           |   |              |   |          |              | 

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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |         |              |  |   |        |   |  |   |            |  
|-------------------------------- |  | -------------- | ---------- | ----------- | ------- | - | ---------- | ------- |  | ------------- | --------- | - |  | --------- | --------- | - | ------------ | - | ------- | ------------ |  | - | ------ | - |  | - | ---------- | -
|                                 |  |                |            | Residential |         |   | Business   |         |  | International |           |   |  |           |           |   |             
|                                 |  | GMAC           |            |             | Capital |   |            | Capital |  |               | Business  |   |  | Corporate |           |   |              |   |        
|Year Ended December 31,          |  | Residential    |            |             | Group   |   |            | Group   |  |               | Group     |   |  | and Other |           |   | Eliminations |   |         | Consolidated | 
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |         |              | 
|                                 |  | (In thousands) |           
|2003                             |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |         |              |  |   |        |   |  |   |            |  
|Net interest income (expense)    |  | $              | 385,700    |             |         | $ | 1,581,557  |         |  | $             | 81,148    |   |  | $         | 52,292    |   |              | $ | (20,754 | )            |  | $ |       |   |  | $ | 2,079,943  |  
|Provision for loan losses        |  |                | (7,960     | )           |         |   | (380,345   | )       |  |               | (62,563   | ) |  |           | (2,198    | ) |              |   | (436    | )            |  |   |       |   |  |   | (453,502   | )
|Other income                     |  |                | 1,079,226  |             |         |   | 329,515    |         |  |               | 136,048   |   |  |           | 126,250   |   |              |   | 429,029 |              |  |   |       |   |  |   | 2,100,068  |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |         |              | 
|Total net revenue                |  |                | 1,456,966  |             |         |   | 1,530,727  |         |  |               | 154,633   |   |  |           | 176,344   |   |              |   | 407,839 |              |  |   |       |   |  |   | 3,726,509  |  
|Operating expenses               |  |                | 891,620    |             |         |   | 786,935    |         |  |               | 54,664    |   |  |           | 138,628   |   |              |   | 488,726 |              |  |   |       |   |  |   | 2,360,573  |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |         |              | 
|Income before income tax expense |  |                | 565,346    |             |         |   | 743,792    |         |  |               | 99,969    |   |  |           | 37,716    |   |              |   | (80,887 | )            |  |   |       |   |  |   | 1,365,936  |  
|Income tax expense (benefit)     |  |                | 204,865    |             |         |   | 284,533    |         |  |               | 38,238    |   |  |           | 13,677    |   |              |   | (32,192 | )            |  |   |       |   |  |   | 509,121    |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |         |              | 
|Net income (loss)                |  | $              | 360,481    |             |         | $ | 459,259    |         |  | $             | 61,731    |   |  | $         | 24,039    |   |              | $ | (48,695 | )            |  | $ |       |   |  | $ | 856,815    |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |         |              | 
|Total assets                     |  | $              | 13,879,801 |             |         | $ | 55,207,175 |         |  | $             | 3,045,471 |   |  | $         | 6,033,436 |   |              | $ | 394,803 |              |  | $ | (1,096 | ) |  | $ | 78,559,590 |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |         |              | 



|                        |  |                |           |            |        |   |         | 
|----------------------- |  | -------------- | --------- | ---------- | ------ | - | ------- | 
|                        |  |                |           | Long-Lived |       
|Year Ended December 31, |  | Revenue        |           |            | Assets |  
|                        |  |                |           |            |        |  
|                        |  | (In thousands) |          
|2005                    |  |                |           |            |        |   |         | 
|Europe                  |  | $              | 321,555   |            |        | $ | 90,556  | 
|Canada                  |  |                | 35,272    |            |        |   | 18,901  | 
|Mexico                  |  |                | 99,756    |            |        |   | 773     | 
|Asia Pacific            |  |                | 1,207     |            |        |   | 100     | 
|                        |  |                |           |            |        |  
|Total foreign           |  |                | 457,790   |            |        |   | 110,330 | 
|Total domestic          |  |                | 3,777,470 |            |        |   | 560,181 | 
|                        |  |                |           |            |        |  
|Total                   |  | $              | 4,235,260 |            |        | $ | 670,511 | 
|                        |  |                |           |            |        |  
|2004                    |  |                |           |            |        |   |         | 
|Europe                  |  | $              | 235,843   |            |        | $ | 101,654 | 
|Canada                  |  |                | 25,665    |            |        |   | 16,648  | 
|Mexico                  |  |                | 51,029    |            |        |   | 901     | 
|Asia Pacific            |  |                | 931       |            |        |   | 133     | 
|                        |  |                |           |            |        |  
|Total foreign           |  |                | 313,468   |            |        |   | 119,336 | 
|Total domestic          |  |                | 3,653,258 |            |        |   | 541,104 | 
|                        |  |                |           |            |        |  
|Total                   |  | $              | 3,966,726 |            |        | $ | 660,440 | 
|                        |  |                |           |            |        |  
|2003                    |  |                |           |            |        |   |         | 
|Europe                  |  | $              | 162,897   |            |        | $ | 83,916  | 
|Canada                  |  |                | 6,074     |            |        |   | 15,815  | 
|Mexico                  |  |                | 48,215    |            |        |   | 1,175   | 
|Asia Pacific            |  |                | 506       |            |        |   | 152     | 
|                        |  |                |           |            |        |  
|Total foreign           |  |                | 217,692   |            |        |   | 101,058 | 
|Total domestic          |  |                | 3,508,817 |            |        |   | 523,752 | 
|                        |  |                |           |            |        |  
|Total                   |  | $              | 3,726,509 |            |        | $ | 624,810 | 
|                        |  |                |           |            |        |  

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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|    |                   
|--- | ------------------
|27. | Regulatory Matters





|                          |  |          |   |   |                  |             |    |      |  |  |      |   |  |  |      |  
|------------------------- |  | -------- | - | - | ---------------- | ----------- | -- | ---- |  |  | ---- | - |  |  | ---- | -
|                          |  |          |   |   |                  | Actual at   |   
|                          |  |          |   |   |                  | December 31 |   
|                          |  | Minimum  |   |   | Minimum to be    |             |    |      | 
|                          |  | Required |   |   | Well-Capitalized |             |    | 2005 |  |  | 2004 |  
|                          |  |          |   |   |                  |             |    |      |  |  |      |  
|Tier 1 leverage           |  |          | 4 | % |                  |             | 5  | %    |  |  | 7.3  | % |  |  | 11.9 | %
|Tier 1 risk-based capital |  |          | 4 |   |                  |             | 6  |      |  |  | 11.5 |   |  |  | 17.3 |  
|Total risk-based capital  |  |          | 8 |   |                  |             | 10 |      |  |  | 11.6 |   |  |  | 17.5 |  



|    |                                   
|--- | ----------------------------------
|28. | Supplemental Financial Information





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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING BALANCE SHEET


December 31, 2005


|                                           |                                                    |                  |            |           |              |   |               |              |            |   |              |            |            |              |             |             |             |   |             |            |             | 
|------------------------------------------ | -------------------------------------------------- | ---------------- | ---------- | --------- | ------------ | - | ------------- | ------------ | ---------- | - | ------------ | ---------- | ---------- | ------------ | ----------- | ----------- | ----------- | - | ----------- | ---------- | ----------- | 
|                                           |                                                    |                  |            | Guarantor |              |   | Non-Guarantor |              |            |   |              |           
|                                           |                                                    | Parent           |            |           | Subsidiaries |   |               | Subsidiaries |            |   | Eliminations |            |            | Consolidated |            
|                                           |                                                    |                  |            |           |              |   |               |              |            |   |              |            |            |              |            
|                                           |                                                    | (In thousands)   |           
|ASSETS                                     |                                                    |                  |            |           |              |   |               |              |            |   |              |            |            |              |             |             |             |   |             |           
|Cash and cash equivalents                  |                                                    | $                | 1,626,814  |           |              | $ | 158,167       |              |            | $ | 556,252      |            |            | $            | (74,480     | )           |             | $ | 2,266,753   |           
|Mortgage loans held for sale               |                                                    |                  |           |           |              |   | 5,681,618     |              |            |   | 13,839,159   |            |            |              | 789         |             |             |   | 19,521,566  |           
|Trading securities                         |                                                    |                  |           |           |              |   | 2,538,042     |              |            |   | 1,357,966    |            |            |              |            |             |             |   | 3,896,008   |           
|Available for sale securities              |                                                    |                  |           |           |              |   | 1,733,792     |              |            |   | 135,434      |            |            |              | (800,289    | )           |             |   | 1,068,937   |           
|Mortgage loans held for investment, net    |                                                    |                  |           |           |              |   | 3,368,743     |              |            |   | 64,609,179   |            |            |              | (85,262     | )           |             |   | 67,892,660  |           
|Lending receivables, net                   |                                                    |                  |           |           |              |   | 1,708,764     |              |            |   | 11,691,200   |            |            |              | 1,083       |             |             |   | 13,401,047  |           
|Mortgage servicing rights, net             |                                                    |                  |           |           |              |   | 4,010,165     |              |            |   | 4,850        |            |            |              |            |             |             |   | 4,015,015   |           
|Accounts receivable                        |                                                    |                  | 6,661      |           |              |   | 984,269       |              |            |   | 1,179,505    |            |            |              | (219,225    | )           |             |   | 1,951,210   |           
|Investments in real estate and other       |                                                    |                  |           |           |              |   | 261,287       |              |            |   | 1,594,011    |            |            |              |            |             |             |   | 1,855,298   |           
|Goodwill                                   |                                                    |                  |           |           |              |   | 218,803       |              |            |   | 240,965      |            |            |              |            |             |             |   | 459,768     |           
|Other assets                               |                                                    |                  | 95,129     |           |              |   | 5,856,223     |              |            |   | 1,652,992    |            |            |              | (5,047,514  | )           |             |   | 2,556,830   |           
|Investment in and loans to subsidiaries    |                                                    |                  | 16,885,741 |           |              |   | 3,635,143     |              |            |   |             |            |            |              | (20,520,884 | )           |             |   |            |           
|                                           |                                                    |                  |            |           |              |   |               |              |            |   |              |            |            |              |            
|Total assets                               |                                                    | $                | 18,614,345 |           |              | $ | 30,155,016    |              |            | $ | 96,861,513   |            |            | $            | (26,745,782 | )           |             | $ | 118,885,092 |           
|                                           |                                                    |                  |            |           |              |   |               |              |            |   |              |            |            |              |            
|                                          
|LIABILITIES                                |                                                    |                  |            |           |              |   |               |              |            |   |              |            |            |              |             |             |             |   |             |           
|Borrowings:                                |                                                    |                  |            |           |              |   |               |              |            |   |              |            |            |              |             |             |             |   |             |           
|                                           | Affiliate borrowings                               |                  | $          | 4,130,000 |              |   | $             | 10,427,971   |            |   | $            | 1,047,462  |            |              | $           | (10,427,971 | )           |   | $           | 5,177,462  |            
|                                           | Collateralized borrowings in securitization trusts |                  |            |          |              |   |               |             |            |   |              | 56,097,801 |            |              |             |            |             |   |             | 56,097,801 |            
|                                           | Other borrowings                                   |                  |            | 6,900,519 |              |   |               | 10,142,507   |            |   |              | 26,275,899 |            |              |             | (1,018,418  | )           |   |             | 42,300,507 |            
|                                           |                                                    |                  |            |           |              |   |               |              |            |   |              |            |            |              |            
|                                           |                                                    | Total borrowings |            |           | 11,030,519   |   |               |              | 20,570,478 |   |              |            | 83,421,162 |              |             |             | (11,446,389 | ) |             |            | 103,575,770 | 
|Deposit liabilities                        |                                                    |                  |           |           |              |   |              |              |            |   | 4,212,784    |            |            |              | (89,480     | )           |             |   | 4,123,304   |           
|Other liabilities                          |                                                    |                  | 119,856    |           |              |   | 3,126,768     |              |            |   | 5,597,193    |            |            |              | (5,121,769  | )           |             |   | 3,722,048   |           
|                                           |                                                    |                  |            |           |              |   |               |              |            |   |              |            |            |              |            
|Total liabilities                          |                                                    |                  | 11,150,375 |           |              |   | 23,697,246    |              |            |   | 93,231,139   |            |            |              | (16,657,638 | )           |             |   | 111,421,122 |           
|                                          
|STOCKHOLDERS EQUITY                       |                                                    |                  |            |           |              |   |               |              |            |   |              |            |            |              |             |             |             |   |             |           
|Common stock and paid-in capital           |                                                    |                  | 3,367,677  |           |              |   | 2,367,676     |              |            |   | 1,333,427    |            |            |              | (3,701,103  | )           |             |   | 3,367,677   |           
|Retained earnings                          |                                                    |                  | 3,980,587  |           |              |   | 3,974,388     |              |            |   | 2,165,466    |            |            |              | (6,139,854  | )           |             |   | 3,980,587   |           
|Accumulated other comprehensive income     |                                                    |                  | 115,706    |           |              |   | 115,706       |              |            |   | 131,481      |            |            |              | (247,187    | )           |             |   | 115,706     |           
|                                           |                                                    |                  |            |           |              |   |               |              |            |   |              |            |            |              |            
|Total stockholders equity                 |                                                    |                  | 7,463,970  |           |              |   | 6,457,770     |              |            |   | 3,630,374    |            |            |              | (10,088,144 | )           |             |   | 7,463,970   |           
|                                           |                                                    |                  |            |           |              |   |               |              |            |   |              |            |            |              |            
|Total liabilities and stockholders equity |                                                    | $                | 18,614,345 |           |              | $ | 30,155,016    |              |            | $ | 96,861,513   |            |            | $            | (26,745,782 | )           |             | $ | 118,885,092 |           
|                                           |                                                    |                  |            |           |              |   |               |              |            |   |              |            |            |              |            

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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING BALANCE SHEET


December 31, 2004


|                                           |                                                    |                  |   |              |   |   |               |           |            |              |            |            |              |   |            |          |          |   |            |            |            | 
|------------------------------------------ | -------------------------------------------------- | ---------------- | - | ------------ | - | - | ------------- | --------- | ---------- | ------------ | ---------- | ---------- | ------------ | - | ---------- | -------- | -------- | - | ---------- | ---------- | ---------- | 
|                                           |                                                    |                  |   | Guarantor    |   |   | Non-Guarantor |           |            |              |            |           
|                                           |                                                    | Parent           |   | Subsidiaries |   |   | Subsidiaries  |           |            | Eliminations |            |            | Consolidated |  
|                                           |                                                    |                  |   |              |   |   |               |           |            |              |            |            |              |  
|                                           |                                                    | (In thousands)   |  
|ASSETS                                     |                                                    |                  |   |              |   |   |               |           |            |              |            |            |              |   |            |          |          |   |            |           
|Cash and cash equivalents                  |                                                    | $                |  |              |   | $ | 648,511       |           |            | $            | 293,712    |            |              | $ | (43,140    | )        |          | $ | 899,083    |           
|Mortgage loans held for sale               |                                                    |                  |  |              |   |   | 3,143,434     |           |            |              | 10,889,347 |            |              |   |           |          |          |   | 14,032,781 |           
|Trading securities                         |                                                    |                  |  |              |   |   | 1,043,475     |           |            |              | 1,682,676  |            |              |   | (11,451    | )        |          |   | 2,714,700  |           
|Available for sale securities              |                                                    |                  |  |              |   |   | 1,931,851     |           |            |              | 113,096    |            |              |   | (800,289   | )        |          |   | 1,244,658  |           
|Mortgage loans held for investment, net    |                                                    |                  |  |              |   |   | 3,316,144     |           |            |              | 53,516,238 |            |              |   | 2,974      |          |          |   | 56,835,356 |           
|Lending receivables, net                   |                                                    |                  |  |              |   |   | 2,154,450     |           |            |              | 7,205,728  |            |              |   | (2,781     | )        |          |   | 9,357,397  |           
|Mortgage servicing rights, net             |                                                    |                  |  |              |   |   | 3,362,749     |           |            |              | 3,243      |            |              |   |           |          |          |   | 3,365,992  |           
|Accounts receivable                        |                                                    |                  |  |              |   |   | 1,201,725     |           |            |              | 909,644    |            |              |   | (952       | )        |          |   | 2,110,417  |           
|Investments in real estate and other       |                                                    |                  |  |              |   |   | 216,172       |           |            |              | 1,181,074  |            |              |   |           |          |          |   | 1,397,246  |           
|Goodwill                                   |                                                    |                  |  |              |   |   | 214,073       |           |            |              | 240,205    |            |              |   |           |          |          |   | 454,278    |           
|Other assets                               |                                                    |                  |  |              |   |   | 835,893       |           |            |              | 1,260,676  |            |              |   | (159,013   | )        |          |   | 1,937,556  |           
|Investment in subsidiaries                 |                                                    |                  |  |              |   |   | 2,789,850     |           |            |              |           |            |              |   | (2,789,850 | )        |          |   |           |           
|                                           |                                                    |                  |   |              |   |   |               |           |            |              |            |            |              |   |           
|Total assets                               |                                                    | $                |  |              |   | $ | 20,858,327    |           |            | $            | 77,295,639 |            |              | $ | (3,804,502 | )        |          | $ | 94,349,464 |           
|                                           |                                                    |                  |   |              |   |   |               |           |            |              |            |            |              |   |           
|                                          
|LIABILITIES                                |                                                    |                  |   |              |   |   |               |           |            |              |            |            |              |   |            |          |          |   |            |           
|Borrowings:                                |                                                    |                  |   |              |   |   |               |           |            |              |            |            |              |   |            |          |          |   |            |           
|                                           | Affiliate borrowings                               |                  | $ |             |   |   | $             | 8,117,000 |            |              | $          | 1,889,242  |              |   | $          |         |          |   | $          | 10,006,242 |           
|                                           | Collateralized borrowings in securitization trusts |                  |   |             |   |   |               | 1,220     |            |              |            | 50,718,707 |              |   |            | (11,451  | )        |   |            | 50,708,476 |           
|                                           | Other borrowings                                   |                  |   |             |   |   |               | 8,089,244 |            |              |            | 16,417,476 |              |   |            | (803,070 | )        |   |            | 23,703,650 |           
|                                           |                                                    |                  |   |              |   |   |               |           |            |              |            |            |              |   |           
|                                           |                                                    | Total borrowings |   |              |  |   |               |           | 16,207,464 |              |            |            | 69,025,425   |   |            |          | (814,521 | ) |            |            | 84,418,368 | 
|Deposit liabilities                        |                                                    |                  |  |              |   |   |              |           |            |              | 1,708,110  |            |              |   | (43,140    | )        |          |   | 1,664,970  |           
|Other liabilities                          |                                                    |                  |  |              |   |   | 285,118       |           |            |              | 3,773,239  |            |              |   | (157,976   | )        |          |   | 3,900,381  |           
|                                           |                                                    |                  |   |              |   |   |               |           |            |              |            |            |              |   |           
|Total liabilities                          |                                                    |                  |  |              |   |   | 16,492,582    |           |            |              | 74,506,774 |            |              |   | (1,015,637 | )        |          |   | 89,983,719 |           
|                                          
|STOCKHOLDERS EQUITY                       |                                                    |                  |   |              |   |   |               |           |            |              |            |            |              |   |            |          |          |   |            |           
|Common stock and paid-in capital           |                                                    |                  |  |              |   |   | 1,246,778     |           |            |              | 1,173,043  |            |              |   | (1,173,043 | )        |          |   | 1,246,778  |           
|Retained earnings                          |                                                    |                  |  |              |   |   | 2,959,961     |           |            |              | 1,463,941  |            |              |   | (1,463,941 | )        |          |   | 2,959,961  |           
|Accumulated other comprehensive income     |                                                    |                  |  |              |   |   | 159,006       |           |            |              | 151,881    |            |              |   | (151,881   | )        |          |   | 159,006    |           
|                                           |                                                    |                  |   |              |   |   |               |           |            |              |            |            |              |   |           
|Total stockholders equity                 |                                                    |                  |  |              |   |   | 4,365,745     |           |            |              | 2,788,865  |            |              |   | (2,788,865 | )        |          |   | 4,365,745  |           
|                                           |                                                    |                  |   |              |   |   |               |           |            |              |            |            |              |   |           
|Total liabilities and stockholders equity |                                                    | $                |  |              |   | $ | 20,858,327    |           |            | $            | 77,295,639 |            |              | $ | (3,804,502 | )        |          | $ | 94,349,464 |           
|                                           |                                                    |                  |   |              |   |   |               |           |            |              |            |            |              |   |           

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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF INCOME


Year Ended December 31, 2005


|                                                            |  |                |           |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |           |  
|----------------------------------------------------------- |  | -------------- | --------- | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | - |  | ------------ | ---------- | - |  | - | --------- | -
|                                                            |  |                |           | Guarantor |              |   | Non-Guarantor |              |  |   |              |  
|                                                            |  | Parent         |           |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |   |  | Consolidated |           
|                                                            |  |                |           |           |              |   |               |              |  |   |              |   |  |              |           
|                                                            |  | (In thousands) |          
|Revenue                                                     |  |                |           |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |           |  
|Interest income                                             |  | $              | 422,721   |           |              | $ | 1,133,814     |              |  | $ | 4,664,518    |   |  | $            | (423,956   | ) |  | $ | 5,797,097 |  
|Interest expense                                            |  |                | 406,437   |           |              |   | 746,299       |              |  |   | 3,164,078    |   |  |              | (444,712   | ) |  |   | 3,872,102 |  
|                                                            |  |                |           |           |              |   |               |              |  |   |              |   |  |              |           
|Net interest income                                         |  |                | 16,284    |           |              |   | 387,515       |              |  |   | 1,500,440    |   |  |              | 20,756     |   |  |   | 1,924,995 |  
|Provision for loan losses                                   |  |                |          |           |              |   | 149,577       |              |  |   | 512,403      |   |  |              | (10,184    | ) |  |   | 651,796   |  
|                                                            |  |                |           |           |              |   |               |              |  |   |              |   |  |              |           
|Net interest income after provision for loan losses         |  |                | 16,284    |           |              |   | 237,938       |              |  |   | 988,037      |   |  |              | 30,940     |   |  |   | 1,273,199 |  
|Gain on sale of mortgage loans, net                         |  |                |          |           |              |   | 727,633       |              |  |   | 339,986      |   |  |              | (30,950    | ) |  |   | 1,036,669 |  
|Servicing fees                                              |  |                |          |           |              |   | 1,420,086     |              |  |   | (1,296       | ) |  |              | (2,510     | ) |  |   | 1,416,280 |  
|Amortization and impairment of servicing rights             |  |                |          |           |              |   | (761,674      | )            |  |   | (314         | ) |  |              |           |   |  |   | (761,988  | )
|Servicing asset valuation and hedge gain, net               |  |                |          |           |              |   | 17,186        |              |  |   |             |   |  |              |           |   |  |   | 17,186    |  
|                                                            |  |                |           |           |              |   |               |              |  |   |              |   |  |              |           
|Net servicing fees                                          |  |                |          |           |              |   | 675,598       |              |  |   | (1,610       | ) |  |              | (2,510     | ) |  |   | 671,478   |  
|Gain (loss) on investment securities, net                   |  |                | (1,553    | )         |              |   | 134,859       |              |  |   | 102,493      |   |  |              | 563        |   |  |   | 236,362   |  
|Real estate related revenues                                |  |                |          |           |              |   | 132,345       |              |  |   | 579,829      |   |  |              |           |   |  |   | 712,174   |  
|Other income                                                |  |                |          |           |              |   | 193,718       |              |  |   | 216,071      |   |  |              | (104,411   | ) |  |   | 305,378   |  
|                                                            |  |                |           |           |              |   |               |              |  |   |              |   |  |              |           
|Total net revenue                                           |  |                | 14,731    |           |              |   | 2,102,091     |              |  |   | 2,224,806    |   |  |              | (106,368   | ) |  |   | 4,235,260 |  
|                                                           
|Expenses                                                    |  |                |           |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |           |  
|Compensation and benefits                                   |  |                |          |           |              |   | 866,030       |              |  |   | 540,900      |   |  |              |           |   |  |   | 1,406,930 |  
|Professional fees                                           |  |                | 15        |           |              |   | 165,688       |              |  |   | 46,707       |   |  |              |           |   |  |   | 212,410   |  
|Data processing and telecommunications                      |  |                |          |           |              |   | 139,208       |              |  |   | 60,641       |   |  |              |           |   |  |   | 199,849   |  
|Advertising                                                 |  |                |          |           |              |   | 131,766       |              |  |   | 26,922       |   |  |              |           |   |  |   | 158,688   |  
|Occupancy                                                   |  |                |          |           |              |   | 75,015        |              |  |   | 46,286       |   |  |              |           |   |  |   | 121,301   |  
|Other                                                       |  |                | 4,677     |           |              |   | 322,868       |              |  |   | 299,542      |   |  |              | (117,931   | ) |  |   | 509,156   |  
|                                                            |  |                |           |           |              |   |               |              |  |   |              |   |  |              |           
|Total expenses                                              |  |                | 4,692     |           |              |   | 1,700,575     |              |  |   | 1,020,998    |   |  |              | (117,931   | ) |  |   | 2,608,334 |  
|                                                            |  |                |           |           |              |   |               |              |  |   |              |   |  |              |           
|Income (loss) before income tax expense                     |  |                | 10,039    |           |              |   | 401,516       |              |  |   | 1,203,808    |   |  |              | 11,563     |   |  |   | 1,626,926 |  
|Income tax expense                                          |  |                | 3,840     |           |              |   | 169,775       |              |  |   | 422,283      |   |  |              | 10,402     |   |  |   | 606,300   |  
|                                                            |  |                |           |           |              |   |               |              |  |   |              |   |  |              |           
|Income (loss) before equity in net earnings of subsidiaries |  |                | 6,199     |           |              |   | 231,741       |              |  |   | 781,525      |   |  |              | 1,161      |   |  |   | 1,020,626 |  
|Equity in net earnings of subsidiaries                      |  |                | 1,014,427 |           |              |   | 782,686       |              |  |   |             |   |  |              | (1,797,113 | ) |  |   |          |  
|                                                            |  |                |           |           |              |   |               |              |  |   |              |   |  |              |           
|Net income                                                  |  | $              | 1,020,626 |           |              | $ | 1,014,427     |              |  | $ | 781,525      |   |  | $            | (1,795,952 | ) |  | $ | 1,020,626 |  
|                                                            |  |                |           |           |              |   |               |              |  |   |              |   |  |              |           

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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF INCOME


Year Ended December 31, 2004


|                                                            |  |                |   |              |  |   |               |   |  |              |           |   |              |   |            |   |  |   |            |  
|----------------------------------------------------------- |  | -------------- | - | ------------ |  | - | ------------- | - |  | ------------ | --------- | - | ------------ | - | ---------- | - |  | - | ---------- | -
|                                                            |  |                |   | Guarantor    |  |   | Non-Guarantor |   |  |              |           |  
|                                                            |  | Parent         |   | Subsidiaries |  |   | Subsidiaries  |   |  | Eliminations |           |   | Consolidated |  
|                                                            |  |                |   |              |  |   |               |   |  |              |           |   |              |  
|                                                            |  | (In thousands) |  
|Revenue                                                     |  |                |   |              |  |   |               |   |  |              |           |   |              |   |            |   |  |   |            |  
|Interest income                                             |  | $              |  |              |  | $ | 759,816       |   |  | $            | 4,258,905 |   |              | $ | (27,840    | ) |  | $ | 4,990,881  |  
|Interest expense                                            |  |                |  |              |  |   | 354,805       |   |  |              | 2,087,786 |   |              |   | (37,609    | ) |  |   | 2,404,982  |  
|                                                            |  |                |   |              |  |   |               |   |  |              |           |   |              |   |           
|Net interest income                                         |  |                |  |              |  |   | 405,011       |   |  |              | 2,171,119 |   |              |   | 9,769      |   |  |   | 2,585,899  |  
|Provision for loan losses                                   |  |                |  |              |  |   | 264,536       |   |  |              | 578,363   |   |              |   |           |   |  |   | 842,899    |  
|                                                            |  |                |   |              |  |   |               |   |  |              |           |   |              |   |           
|Net interest income after provision for loan losses         |  |                |  |              |  |   | 140,475       |   |  |              | 1,592,756 |   |              |   | 9,769      |   |  |   | 1,743,000  |  
|Gain on sale of mortgage loans, net                         |  |                |  |              |  |   | 437,963       |   |  |              | 264,220   |   |              |   | (5,280     | ) |  |   | 696,903    |  
|Servicing fees                                              |  |                |  |              |  |   | 1,303,354     |   |  |              | (6,843    | ) |              |   | (2,255     | ) |  |   | 1,294,256  |  
|Amortization and impairment of servicing rights             |  |                |  |              |  |   | (1,003,745    | ) |  |              | 480       |   |              |   |           |   |  |   | (1,003,265 | )
|Servicing asset valuation and hedge gain, net               |  |                |  |              |  |   | 214,911       |   |  |              |          |   |              |   |           |   |  |   | 214,911    |  
|                                                            |  |                |   |              |  |   |               |   |  |              |           |   |              |   |           
|Net servicing fees                                          |  |                |  |              |  |   | 514,520       |   |  |              | (6,363    | ) |              |   | (2,255     | ) |  |   | 505,902    |  
|Gain (loss) on investment securities, net                   |  |                |  |              |  |   | 96,383        |   |  |              | (32,680   | ) |              |   |           |   |  |   | 63,703     |  
|Real estate related revenues                                |  |                |  |              |  |   | 107,810       |   |  |              | 541,429   |   |              |   |           |   |  |   | 649,239    |  
|Other income                                                |  |                |  |              |  |   | 163,470       |   |  |              | 249,698   |   |              |   | (105,189   | ) |  |   | 307,979    |  
|                                                            |  |                |   |              |  |   |               |   |  |              |           |   |              |   |           
|Total net revenue                                           |  |                |  |              |  |   | 1,460,621     |   |  |              | 2,609,060 |   |              |   | (102,955   | ) |  |   | 3,966,726  |  
|                                                           
|Expenses                                                    |  |                |   |              |  |   |               |   |  |              |           |   |              |   |            |   |  |   |            |  
|Compensation and benefits                                   |  |                |  |              |  |   | 708,259       |   |  |              | 508,278   |   |              |   |           |   |  |   | 1,216,537  |  
|Professional fees                                           |  |                |  |              |  |   | 175,549       |   |  |              | 49,167    |   |              |   |           |   |  |   | 224,716    |  
|Data processing and telecommunications                      |  |                |  |              |  |   | 144,689       |   |  |              | 46,387    |   |              |   |           |   |  |   | 191,076    |  
|Advertising                                                 |  |                |  |              |  |   | 125,288       |   |  |              | 26,057    |   |              |   |           |   |  |   | 151,345    |  
|Occupancy                                                   |  |                |  |              |  |   | 69,554        |   |  |              | 38,011    |   |              |   |           |   |  |   | 107,565    |  
|Other                                                       |  |                |  |              |  |   | 275,264       |   |  |              | 272,903   |   |              |   | (83,032    | ) |  |   | 465,135    |  
|                                                            |  |                |   |              |  |   |               |   |  |              |           |   |              |   |           
|Total expenses                                              |  |                |  |              |  |   | 1,498,603     |   |  |              | 940,803   |   |              |   | (83,032    | ) |  |   | 2,356,374  |  
|                                                            |  |                |   |              |  |   |               |   |  |              |           |   |              |   |           
|Income (loss) before income tax expense                     |  |                |  |              |  |   | (37,982       | ) |  |              | 1,668,257 |   |              |   | (19,923    | ) |  |   | 1,610,352  |  
|Income tax expense                                          |  |                |  |              |  |   | 49,084        |   |  |              | 600,479   |   |              |   | (7,423     | ) |  |   | 642,140    |  
|                                                            |  |                |   |              |  |   |               |   |  |              |           |   |              |   |           
|Income (loss) before equity in net earnings of subsidiaries |  |                |  |              |  |   | (87,066       | ) |  |              | 1,067,778 |   |              |   | (12,500    | ) |  |   | 968,212    |  
|Equity in net earnings of subsidiaries                      |  |                |  |              |  |   | 1,055,278     |   |  |              |          |   |              |   | (1,055,278 | ) |  |   |           |  
|                                                            |  |                |   |              |  |   |               |   |  |              |           |   |              |   |           
|Net income                                                  |  | $              |  |              |  | $ | 968,212       |   |  | $            | 1,067,778 |   |              | $ | (1,067,778 | ) |  | $ | 968,212    |  
|                                                            |  |                |   |              |  |   |               |   |  |              |           |   |              |   |           

151



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF INCOME


Year Ended December 31, 2003


|                                                     |  |                |   |              |  |   |               |   |  |              |           |   |              |   |          |   |  |   |            |  
|---------------------------------------------------- |  | -------------- | - | ------------ |  | - | ------------- | - |  | ------------ | --------- | - | ------------ | - | -------- | - |  | - | ---------- | -
|                                                     |  |                |   | Guarantor    |  |   | Non-Guarantor |   |  |              |           |  
|                                                     |  | Parent         |   | Subsidiaries |  |   | Subsidiaries  |   |  | Eliminations |           |   | Consolidated |  
|                                                     |  |                |   |              |  |   |               |   |  |              |           |   |              |  
|                                                     |  | (In thousands) |  
|Revenue                                              |  |                |   |              |  |   |               |   |  |              |           |   |              |   |          |   |  |   |            |  
|Interest income                                      |  | $              |  |              |  | $ | 1,051,237     |   |  | $            | 2,432,591 |   |              | $ | (1,176   | ) |  | $ | 3,482,652  |  
|Interest expense                                     |  |                |  |              |  |   | 416,661       |   |  |              | 995,539   |   |              |   | (9,491   | ) |  |   | 1,402,709  |  
|                                                     |  |                |   |              |  |   |               |   |  |              |           |   |              |   |         
|Net interest income                                  |  |                |  |              |  |   | 634,576       |   |  |              | 1,437,052 |   |              |   | 8,315    |   |  |   | 2,079,943  |  
|Provision for loan losses                            |  |                |  |              |  |   | 223,966       |   |  |              | 229,536   |   |              |   |          |   |  |   | 453,502    |  
|                                                     |  |                |   |              |  |   |               |   |  |              |           |   |              |   |         
|Net interest income after provision for loan losses  |  |                |  |              |  |   | 410,610       |   |  |              | 1,207,516 |   |              |   | 8,315    |   |  |   | 1,626,441  |  
|Gain on sale of mortgage loans, net                  |  |                |  |              |  |   | 1,483,472     |   |  |              | 257,766   |   |              |   | 5,087    |   |  |   | 1,746,325  |  
|Servicing fees                                       |  |                |  |              |  |   | 1,188,299     |   |  |              | (2,598    | ) |              |   |         |   |  |   | 1,185,701  |  
|Amortization and impairment of servicing rights      |  |                |  |              |  |   | (2,020,661    | ) |  |              | 5,747     |   |              |   |         |   |  |   | (2,014,914 | )
|Servicing asset valuation and hedge gain, net        |  |                |  |              |  |   | 507,244       |   |  |              |          |   |              |   |         |   |  |   | 507,244    |  
|                                                     |  |                |   |              |  |   |               |   |  |              |           |   |              |   |         
|Net servicing fees                                   |  |                |  |              |  |   | (325,118      | ) |  |              | 3,149     |   |              |   |         |   |  |   | (321,969   | )
|Gain (loss) on investment securities, net            |  |                |  |              |  |   | 168,902       |   |  |              | (391,704  | ) |              |   |         |   |  |   | (222,802   | )
|Real estate related revenues                         |  |                |  |              |  |   | 29,381        |   |  |              | 471,033   |   |              |   |         |   |  |   | 500,414    |  
|Other income                                         |  |                |  |              |  |   | 281,456       |   |  |              | 245,270   |   |              |   | (128,626 | ) |  |   | 398,100    |  
|                                                     |  |                |   |              |  |   |               |   |  |              |           |   |              |   |         
|Total net revenue                                    |  |                |  |              |  |   | 2,048,703     |   |  |              | 1,793,030 |   |              |   | (115,224 | ) |  |   | 3,726,509  |  
|                                                    
|Expenses                                             |  |                |   |              |  |   |               |   |  |              |           |   |              |   |          |   |  |   |            |  
|Compensation and benefits                            |  |                |  |              |  |   | 753,155       |   |  |              | 435,608   |   |              |   |         |   |  |   | 1,188,763  |  
|Professional fees                                    |  |                |  |              |  |   | 138,928       |   |  |              | 30,452    |   |              |   |         |   |  |   | 169,380    |  
|Data processing and telecommunications               |  |                |  |              |  |   | 135,182       |   |  |              | 54,102    |   |              |   |         |   |  |   | 189,284    |  
|Advertising                                          |  |                |  |              |  |   | 103,965       |   |  |              | 23,755    |   |              |   |         |   |  |   | 127,720    |  
|Occupancy                                            |  |                |  |              |  |   | 65,612        |   |  |              | 33,958    |   |              |   |         |   |  |   | 99,570     |  
|Other                                                |  |                |  |              |  |   | 365,548       |   |  |              | 348,935   |   |              |   | (128,627 | ) |  |   | 585,856    |  
|                                                     |  |                |   |              |  |   |               |   |  |              |           |   |              |   |         
|Total expenses                                       |  |                |  |              |  |   | 1,562,390     |   |  |              | 926,810   |   |              |   | (128,627 | ) |  |   | 2,360,573  |  
|                                                     |  |                |   |              |  |   |               |   |  |              |           |   |              |   |         
|Income before income tax expense                     |  |                |  |              |  |   | 486,313       |   |  |              | 866,220   |   |              |   | 13,403   |   |  |   | 1,365,936  |  
|Income tax expense                                   |  |                |  |              |  |   | 194,412       |   |  |              | 309,752   |   |              |   | 4,957    |   |  |   | 509,121    |  
|                                                     |  |                |   |              |  |   |               |   |  |              |           |   |              |   |         
|Income before equity in net earnings of subsidiaries |  |                |  |              |  |   | 291,901       |   |  |              | 556,468   |   |              |   | 8,446    |   |  |   | 856,815    |  
|Equity in net earnings of subsidiaries               |  |                |  |              |  |   | 564,914       |   |  |              |          |   |              |   | (564,914 | ) |  |   |           |  
|                                                     |  |                |   |              |  |   |               |   |  |              |           |   |              |   |         
|Net income                                           |  | $              |  |              |  | $ | 856,815       |   |  | $            | 556,468   |   |              | $ | (556,468 | ) |  | $ | 856,815    |  
|                                                     |  |                |   |              |  |   |               |   |  |              |           |   |              |   |         

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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


Year Ended December 31, 2005


|                                                                                 |  |                |            |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |             |  
|-------------------------------------------------------------------------------- |  | -------------- | ---------- | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | - |  | ------------ | ---------- | - |  | - | ----------- | -
|                                                                                 |  |                |            | Guarantor |              |   | Non-Guarantor |              |  |   |              |  
|                                                                                 |  | Parent         |            |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |   |  | Consolidated |           
|                                                                                 |  |                |            |           |              |   |               |              |  |   |              |   |  |              |           
|                                                                                 |  | (In thousands) |           
|NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                              |  | $              | 20,529     |           |              | $ | (23,247,733   | )            |  | $ | (2,657,083   | ) |  | $            | (262,829   | ) |  | $ | (26,147,116 | )
|CASH FLOWS FROM INVESTING ACTIVITIES:                                            |  |                |            |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |             |  
|Net (increase) decrease in lending receivables                                   |  |                |           |           |              |   | 414,063       |              |  |   | (4,388,826   | ) |  |              |           |   |  |   | (3,974,763  | )
|Originations and purchases of mortgage loans held for investment                 |  |                |           |           |              |   | (14,818,629   | )            |  |   | (5,347,369   | ) |  |              | 84,138     |   |  |   | (20,081,860 | )
|Proceeds from sales and repayments of mortgage loans held for
    investment     |  |                |           |           |              |   | 5,078,443     |              |  |   | 22,450,215   |   |  |              |           |   |  |   | 27,528,658  |  
|Purchases of available for sale securities                                       |  |                |           |           |              |   | (551,489      | )            |  |   | (47,124      | ) |  |              |           |   |  |   | (598,613    | )
|Proceeds from sales and repayments of available for sale
    securities          |  |                |           |           |              |   | 724,436       |              |  |   | 22,779       |   |  |              |           |   |  |   | 747,215     |  
|Additions to mortgage servicing rights                                           |  |                |           |           |              |   | (263,737      | )            |  |   | (2,852       | ) |  |              |           |   |  |   | (266,589    | )
|Sales of mortgage servicing rights                                               |  |                |           |           |              |   | 207,591       |              |  |   |             |   |  |              |           |   |  |   | 207,591     |  
|Purchase of and advances to investments in real estate and other                 |  |                |           |           |              |   | (47,300       | )            |  |   | (1,201,953   | ) |  |              |           |   |  |   | (1,249,253  | )
|Proceeds from sales of and returns of investments in real estate
    and other   |  |                |           |           |              |   | 120,757       |              |  |   | 803,167      |   |  |              |           |   |  |   | 923,924     |  
|Acquisitions, net of cash acquired                                               |  |                |           |           |              |   |              |              |  |   | (3,988       | ) |  |              |           |   |  |   | (3,988      | )
|Payment of capital contribution                                                  |  |                |           |           |              |   | (39,487       | )            |  |   |             |   |  |              | 39,487     |   |  |   |            |  
|Net (increase) decrease in affiliate lending                                     |  |                | (3,477,487 | )         |              |   |              |              |  |   |             |   |  |              | 3,477,487  |   |  |   |            |  
|Other, net                                                                       |  |                | (4,100     | )         |              |   | 156,373       |              |  |   | 572,426      |   |  |              |           |   |  |   | 724,699     |  
|                                                                                 |  |                |            |           |              |   |               |              |  |   |              |   |  |              |           
|Net cash provided by (used in) investing activities                              |  |                | (3,481,587 | )         |              |   | (9,018,979    | )            |  |   | 12,856,475   |   |  |              | 3,601,112  |   |  |   | 3,957,021   |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                                            |  |                |            |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |             |  
|Net increase (decrease) in affiliate borrowings                                  |  |                | (1,879,000 | )         |              |   | 3,310,972     |              |  |   | (841,433     | ) |  |              | (3,418,972 | ) |  |   | (2,828,433  | )
|Net increase in other short-term borrowings                                      |  |                |           |           |              |   | 2,052,041     |              |  |   | 2,193,509    |   |  |              | (2,615     | ) |  |   | 4,242,935   |  
|Proceeds from issuance of collateralized borrowings in
    securitization trusts |  |                |           |           |              |   | 26,413,355    |              |  |   | 1,937,191    |   |  |              | 11,451     |   |  |   | 28,361,997  |  
|Repayments of collateralized borrowings in securitization trusts                 |  |                |           |           |              |   |              |              |  |   | (22,682,856  | ) |  |              |           |   |  |   | (22,682,856 | )
|Proceeds from secured aggregation facilities, long-term                          |  |                |           |           |              |   |              |              |  |   | 7,896,054    |   |  |              |           |   |  |   | 7,896,054   |  
|Repayments of secured aggregation facilities, long-term                          |  |                |           |           |              |   |              |              |  |   | (3,157,448   | ) |  |              |           |   |  |   | (3,157,448  | )
|Proceeds from other long-term borrowings                                         |  |                | 7,003,053  |           |              |   |              |              |  |   | 2,622,226    |   |  |              |           |   |  |   | 9,625,279   |  
|Repayments of other long-term borrowings                                         |  |                |           |           |              |   |              |              |  |   | (210,000     | ) |  |              |           |   |  |   | (210,000    | )
|Payments of debt issuance costs                                                  |  |                | (36,181    | )         |              |   |              |              |  |   | (85,232      | ) |  |              |           |   |  |   | (121,413    | )
|Proceeds from capital contribution                                               |  |                |           |           |              |   |              |              |  |   | 39,487       |   |  |              | (39,487    | ) |  |   |            |  
|Dividends paid                                                                   |  |                |           |           |              |   |              |              |  |   | (80,000      | ) |  |              | 80,000     |   |  |   |            |  
|Increase in deposit liabilities                                                  |  |                |           |           |              |   |              |              |  |   | 2,458,334    |   |  |              |           |   |  |   | 2,458,334   |  
|                                                                                 |  |                |            |           |              |   |               |              |  |   |              |   |  |              |           
|Net cash provided by (used in) financing activities                              |  |                | 5,087,872  |           |              |   | 31,776,368    |              |  |   | (9,910,168   | ) |  |              | (3,369,623 | ) |  |   | 23,584,449  |  
|Effect of foreign exchange rates on cash and
    cash equivalents                |  |                |           |           |              |   |              |              |  |   | (26,684      | ) |  |              |           |   |  |   | (26,684     | )
|                                                                                 |  |                |            |           |              |   |               |              |  |   |              |   |  |              |           
|NET DECREASE IN CASH AND CASH EQUIVALENTS                                        |  |                | 1,626,814  |           |              |   | (490,344      | )            |  |   | 262,540      |   |  |              | (31,340    | ) |  |   | 1,367,670   |  
|CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                   |  |                |           |           |              |   | 648,511       |              |  |   | 293,712      |   |  |              | (43,140    | ) |  |   | 899,083     |  
|                                                                                 |  |                |            |           |              |   |               |              |  |   |              |   |  |              |           
|CASH AND CASH EQUIVALENTS AT END OF YEAR                                         |  | $              | 1,626,814  |           |              | $ | 158,167       |              |  | $ | 556,252      |   |  | $            | (74,480    | ) |  | $ | 2,266,753   |  
|                                                                                 |  |                |            |           |              |   |               |              |  |   |              |   |  |              |           













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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


Year Ended December 31, 2004


|                                                                                 |  |                |   |              |  |   |               |   |  |              |             |   |              |   |          |   |  |   |             |  
|-------------------------------------------------------------------------------- |  | -------------- | - | ------------ |  | - | ------------- | - |  | ------------ | ----------- | - | ------------ | - | -------- | - |  | - | ----------- | -
|                                                                                 |  |                |   | Guarantor    |  |   | Non-Guarantor |   |  |              |             |  
|                                                                                 |  | Parent         |   | Subsidiaries |  |   | Subsidiaries  |   |  | Eliminations |             |   | Consolidated |  
|                                                                                 |  |                |   |              |  |   |               |   |  |              |             |   |              |  
|                                                                                 |  | (In thousands) |  
|                                                                                 |  | (Restated)(a)  |  
|NET CASH PROVIDED BY OPERATING ACTIVITIES                                        |  | $              |  |              |  | $ | 1,768,711     |   |  | $            | 139,384     |   |              | $ | (210,702 | ) |  | $ | 1,697,393   |  
|CASH FLOWS FROM INVESTING ACTIVITIES:                                            |  |                |   |              |  |   |               |   |  |              |             |   |              |   |          |   |  |   |             |  
|Net (increase) decrease in lending receivables                                   |  |                |  |              |  |   | 349,026       |   |  |              | (1,451,190  | ) |              |   |         |   |  |   | (1,102,164  | )
|Originations and purchases of mortgage loans held for investment                 |  |                |  |              |  |   | (37,137,192   | ) |  |              | (1,263,614  | ) |              |   |         |   |  |   | (38,400,806 | )
|Proceeds from sales and repayments of mortgage loans held for
    investment     |  |                |  |              |  |   | 9,150,037     |   |  |              | 15,945,165  |   |              |   |         |   |  |   | 25,095,202  |  
|Purchases of available for sale securities                                       |  |                |  |              |  |   | (1,103,427    | ) |  |              | (61,656     | ) |              |   |         |   |  |   | (1,165,083  | )
|Proceeds from sales and repayments of available for sale
    securities          |  |                |  |              |  |   | 6,006         |   |  |              | 18,769      |   |              |   |         |   |  |   | 24,775      |  
|Additions to mortgage servicing rights                                           |  |                |  |              |  |   | (240,659      | ) |  |              | (856        | ) |              |   |         |   |  |   | (241,515    | )
|Purchase of and advances to investments in real estate and other                 |  |                |  |              |  |   | (43,375       | ) |  |              | (840,465    | ) |              |   |         |   |  |   | (883,840    | )
|Proceeds from sales of and returns of investments in real estate
    and other   |  |                |  |              |  |   | 137,140       |   |  |              | 636,237     |   |              |   |         |   |  |   | 773,377     |  
|Acquisitions, net of cash acquired                                               |  |                |  |              |  |   | (11,764       | ) |  |              |            |   |              |   |         |   |  |   | (11,764     | )
|Payment of capital contribution                                                  |  |                |  |              |  |   | (37,196       | ) |  |              |            |   |              |   | 37,196   |   |  |   |            |  
|Other, net                                                                       |  |                |  |              |  |   | 221,183       |   |  |              | (12,087     | ) |              |   |         |   |  |   | 209,096     |  
|                                                                                 |  |                |   |              |  |   |               |   |  |              |             |   |              |   |         
|Net cash provided by (used in) investing activities                              |  |                |  |              |  |   | (28,710,241   | ) |  |              | 12,970,303  |   |              |   | 37,196   |   |  |   | (15,702,722 | )
|CASH FLOWS FROM FINANCING ACTIVITIES:                                            |  |                |   |              |  |   |               |   |  |              |             |   |              |   |          |   |  |   |             |  
|Net increase (decrease) in affiliate borrowings                                  |  |                |  |              |  |   | (1,346,345    | ) |  |              | 668,712     |   |              |   |         |   |  |   | (677,633    | )
|Net increase in other short-term borrowings                                      |  |                |  |              |  |   | 1,249,313     |   |  |              | 1,739,379   |   |              |   |         |   |  |   | 2,988,692   |  
|Proceeds from issuance of collateralized borrowings in
    securitization trusts |  |                |  |              |  |   | 27,020,623    |   |  |              | 1,780,618   |   |              |   | 3,570    |   |  |   | 28,804,811  |  
|Repayments of collateralized borrowings in securitization trusts                 |  |                |  |              |  |   |              |   |  |              | (17,498,926 | ) |              |   |         |   |  |   | (17,498,926 | )
|Proceeds from other long-term borrowings                                         |  |                |  |              |  |   |              |   |  |              | 269,000     |   |              |   |         |   |  |   | 269,000     |  
|Repayments of other long-term borrowings                                         |  |                |  |              |  |   |              |   |  |              | (220,000    | ) |              |   |         |   |  |   | (220,000    | )
|Payments of debt issuance costs                                                  |  |                |  |              |  |   |              |   |  |              | (102,618    | ) |              |   |         |   |  |   | (102,618    | )
|Proceeds from capital contribution                                               |  |                |  |              |  |   |              |   |  |              | 37,196      |   |              |   | (37,196  | ) |  |   |            |  
|Dividends paid                                                                   |  |                |  |              |  |   |              |   |  |              | (185,000    | ) |              |   | 185,000  |   |  |   |            |  
|Increase in deposit liabilities                                                  |  |                |  |              |  |   |              |   |  |              | 383,515     |   |              |   |         |   |  |   | 383,515     |  
|                                                                                 |  |                |   |              |  |   |               |   |  |              |             |   |              |   |         
|Net cash provided by (used in) financing activities                              |  |                |  |              |  |   | 26,923,591    |   |  |              | (13,128,124 | ) |              |   | 151,374  |   |  |   | 13,946,841  |  
|Effect of foreign exchange rates on cash and
    cash equivalents                |  |                |  |              |  |   |              |   |  |              | 16,478      |   |              |   |         |   |  |   | 16,478      |  
|                                                                                 |  |                |   |              |  |   |               |   |  |              |             |   |              |   |         
|NET DECREASE IN CASH AND CASH EQUIVALENTS                                        |  |                |  |              |  |   | (17,919       | ) |  |              | (1,959      | ) |              |   | (22,132  | ) |  |   | (42,010     | )
|CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                   |  |                |  |              |  |   | 666,430       |   |  |              | 295,671     |   |              |   | (21,008  | ) |  |   | 941,093     |  
|                                                                                 |  |                |   |              |  |   |               |   |  |              |             |   |              |   |         
|CASH AND CASH EQUIVALENTS AT END OF YEAR                                         |  | $              |  |              |  | $ | 648,511       |   |  | $            | 293,712     |   |              | $ | (43,140  | ) |  | $ | 899,083     |  
|                                                                                 |  |                |   |              |  |   |               |   |  |              |             |   |              |   |         






|    |                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------
|(a) | See Note 3 to the Consolidated Financial Statements for
    matters that impacted the Condensed Consolidating Statement of
    Cash Flows.





non-guarantor


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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


Year Ended December 31, 2003


|                                                                                 |  |                |   |              |  |   |               |   |  |              |            |   |              |   |          |   |  |   |             |  
|-------------------------------------------------------------------------------- |  | -------------- | - | ------------ |  | - | ------------- | - |  | ------------ | ---------- | - | ------------ | - | -------- | - |  | - | ----------- | -
|                                                                                 |  |                |   | Guarantor    |  |   | Non-Guarantor |   |  |              |            |  
|                                                                                 |  | Parent         |   | Subsidiaries |  |   | Subsidiaries  |   |  | Eliminations |            |   | Consolidated |  
|                                                                                 |  |                |   |              |  |   |               |   |  |              |            |   |              |  
|                                                                                 |  | (In thousands) |  
|                                                                                 |  | (Restated)(a)  |  
|NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                              |  | $              |  |              |  | $ | 4,000,615     |   |  | $            | (7,886,637 | ) |              | $ | 21,441   |   |  | $ | (3,864,581  | )
|CASH FLOWS FROM INVESTING ACTIVITIES:                                            |  |                |   |              |  |   |               |   |  |              |            |   |              |   |          |   |  |   |             |  
|Net (increase) decrease in lending receivables                                   |  |                |  |              |  |   | 735,942       |   |  |              | (1,892,500 | ) |              |   |         |   |  |   | (1,156,558  | )
|Originations and purchases of mortgage loans held for investment                 |  |                |  |              |  |   | (37,368,451   | ) |  |              | (412,760   | ) |              |   | (27,428  | ) |  |   | (37,808,639 | )
|Proceeds from sales and repayments of mortgage loans held for
    investment     |  |                |  |              |  |   | 3,514,615     |   |  |              | 6,581,766  |   |              |   |         |   |  |   | 10,096,381  |  
|Purchases of available for sale securities                                       |  |                |  |              |  |   | (1,994,868    | ) |  |              | (101,891   | ) |              |   |         |   |  |   | (2,096,759  | )
|Proceeds from sales and repayments of available for sale
    securities          |  |                |  |              |  |   | 4,221,513     |   |  |              | 133,895    |   |              |   |         |   |  |   | 4,355,408   |  
|Additions to mortgage servicing rights                                           |  |                |  |              |  |   | (402,856      | ) |  |              | (1,281     | ) |              |   |         |   |  |   | (404,137    | )
|Purchase of and advances to investments in real estate and other                 |  |                |  |              |  |   | (64,570       | ) |  |              | (795,753   | ) |              |   |         |   |  |   | (860,323    | )
|Proceeds from sales of and returns of investments in real estate
    and other   |  |                |  |              |  |   | 42,318        |   |  |              | 386,573    |   |              |   |         |   |  |   | 428,891     |  
|Acquisitions, net of cash acquired                                               |  |                |  |              |  |   |              |   |  |              | (1,599     | ) |              |   |         |   |  |   | (1,599      | )
|Payment of capital contribution                                                  |  |                |  |              |  |   | (393,161      | ) |  |              |           |   |              |   | 393,161  |   |  |   |            |  
|Other, net                                                                       |  |                |  |              |  |   | 249,242       |   |  |              | (55,600    | ) |              |   |         |   |  |   | 193,642     |  
|                                                                                 |  |                |   |              |  |   |               |   |  |              |            |   |              |   |         
|Net cash provided by (used in) investing activities                              |  |                |  |              |  |   | (31,460,276   | ) |  |              | 3,840,850  |   |              |   | 365,733  |   |  |   | (27,253,693 | )
|CASH FLOWS FROM FINANCING ACTIVITIES:                                            |  |                |   |              |  |   |               |   |  |              |            |   |              |   |          |   |  |   |             |  
|Net increase (decrease) in affiliate borrowings                                  |  |                |  |              |  |   | (1,698,907    | ) |  |              | 537,585    |   |              |   |         |   |  |   | (1,161,322  | )
|Net increase (decrease) in other short-term borrowings                           |  |                |  |              |  |   | (2,518,276    | ) |  |              | 7,747,997  |   |              |   | 203,687  |   |  |   | 5,433,408   |  
|Proceeds from issuance of collateralized borrowings in
    securitization trusts |  |                |  |              |  |   | 31,999,929    |   |  |              | 2,004,267  |   |              |   | (218,708 | ) |  |   | 33,785,488  |  
|Repayments of collateralized borrowings in securitization trusts                 |  |                |  |              |  |   |              |   |  |              | (6,741,881 | ) |              |   |         |   |  |   | (6,741,881  | )
|Proceeds from other long-term borrowings                                         |  |                |  |              |  |   |              |   |  |              | 305,000    |   |              |   |         |   |  |   | 305,000     |  
|Repayments of other long-term borrowings                                         |  |                |  |              |  |   |              |   |  |              | (180,000   | ) |              |   |         |   |  |   | (180,000    | )
|Payments of debt issuance costs                                                  |  |                |  |              |  |   |              |   |  |              | (103,836   | ) |              |   |         |   |  |   | (103,836    | )
|Proceeds from capital contribution                                               |  |                |  |              |  |   |              |   |  |              | 393,161    |   |              |   | (393,161 | ) |  |   |            |  
|Increase in deposit liabilities                                                  |  |                |  |              |  |   |              |   |  |              | 333,209    |   |              |   |         |   |  |   | 333,209     |  
|                                                                                 |  |                |   |              |  |   |               |   |  |              |            |   |              |   |         
|Net cash provided by financing activities                                        |  |                |  |              |  |   | 27,782,746    |   |  |              | 4,295,502  |   |              |   | (408,182 | ) |  |   | 31,670,066  |  
|Effect of foreign exchange rates on cash and
    cash equivalents                |  |                |  |              |  |   |              |   |  |              | 7,359      |   |              |   |         |   |  |   | 7,359       |  
|                                                                                 |  |                |   |              |  |   |               |   |  |              |            |   |              |   |         
|NET INCREASE IN CASH AND CASH EQUIVALENTS                                        |  |                |  |              |  |   | 323,085       |   |  |              | 257,074    |   |              |   | (21,008  | ) |  |   | 559,151     |  
|CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                   |  |                |  |              |  |   | 343,345       |   |  |              | 38,597     |   |              |   |         |   |  |   | 381,942     |  
|                                                                                 |  |                |   |              |  |   |               |   |  |              |            |   |              |   |         
|CASH AND CASH EQUIVALENTS AT END OF YEAR                                         |  | $              |  |              |  | $ | 666,430       |   |  | $            | 295,671    |   |              | $ | (21,008  | ) |  | $ | 941,093     |  
|                                                                                 |  |                |   |              |  |   |               |   |  |              |            |   |              |   |         






|    |                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------
|(a) | See Note 3 to the Consolidated Financial Statements for
    matters that impacted the Condensed Consolidating Statement of
    Cash Flows.



non-guarantor


non-guarantor


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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


29.     Quarterly Financial Data
(Unaudited)


|                             |                    |                    |   |           |          |  |   |               |  |  |              |           |  |  |   |           | 
|---------------------------- | ------------------ | ------------------ | - | --------- | -------- |  | - | ------------- |  |  | ------------ | --------- |  |  | - | --------- | 
|                             |                    | Three Months Ended |  
|                             |                    |                    |  
|                             |                    | March 31,          |   |           | June 30, |  |   | September 30, |  |  | December 31, |          
|                             |                    |                    |   |           |          |  |   |               |  |  |              |          
|                             |                    | (In thousands)     |  
|Year ended December 31, 2005 |                    |                    |   |           |          |  |   |               |  |  |              |           |  |  |   |          
|                             | Total net revenue  |                    | $ | 1,127,577 |          |  | $ | 1,098,405     |  |  | $            | 1,173,622 |  |  | $ | 835,656   | 
|                             | Operating expenses |                    |   | 598,727   |          |  |   | 639,358       |  |  |              | 702,320   |  |  |   | 667,929   | 
|                             | Income tax expense |                    |   | 207,055   |          |  |   | 158,621       |  |  |              | 191,197   |  |  |   | 49,427    | 
|                             |                    |                    |   |           |          |  |   |               |  |  |              |          
|                             | Net income         |                    | $ | 321,795   |          |  | $ | 300,426       |  |  | $            | 280,105   |  |  | $ | 118,300   | 
|                             |                    |                    |   |           |          |  |   |               |  |  |              |          
|Year ended December 31, 2004 |                    |                    |   |           |          |  |   |               |  |  |              |           |  |  |   |          
|                             | Total net revenue  |                    |   | 944,677   |          |  | $ | 1,100,088     |  |  | $            | 904,936   |  |  | $ | 1,017,025 | 
|                             | Operating expenses |                    |   | 555,031   |          |  |   | 613,103       |  |  |              | 572,891   |  |  |   | 615,349   | 
|                             | Income tax expense |                    |   | 154,939   |          |  |   | 214,147       |  |  |              | 129,309   |  |  |   | 143,745   | 
|                             |                    |                    |   |           |          |  |   |               |  |  |              |          
|                             | Net income         |                    | $ | 234,707   |          |  | $ | 272,838       |  |  | $            | 202,736   |  |  | $ | 257,931   | 
|                             |                    |                    |   |           |          |  |   |               |  |  |              |          



|    |                                                         
|--- | --------------------------------------------------------
|30. | Restatement of Interim Cash Flow Information (Unaudited)

10-K.






|                                                     |                        |                   |   |             |      |  |   |             |  
|---------------------------------------------------- | ---------------------- | ----------------- | - | ----------- | ---- |  | - | ----------- | -
|                                                     |                        | Nine Months Ended |  
|                                                     |                        | September 30,     |  
|                                                     |                        |                   |  
|                                                     |                        | 2005              |   |             | 2004 | 
|                                                     |                        |                   |   |             |      | 
|                                                     |                        | (In thousands)    |  
|                                                     |                        | (Unaudited)       |  
|Net cash provided by (used in) operating activities: |                        |                   |   |             |      |  |   |            
|                                                     | As previously reported |                   | $ | (2,442,819  | )    |  | $ | 2,947,350   |  
|                                                     | As restated            |                   |   | (12,619,685 | )    |  |   | 487,166     |  
|Net cash provided by (used in) investing activities: |                        |                   |   |             |      |  |   |            
|                                                     | As previously reported |                   |   | (4,776,111  | )    |  |   | (17,754,402 | )
|                                                     | As restated            |                   |   | 5,400,755   |      |  |   | (15,294,218 | )
|Net cash provided by financing activities:           |                        |                   |   |             |      |  |   |            
|                                                     | Prior to restatement   |                   |   | 9,155,111   |      |  |   | 14,218,214  |  
|                                                     | As restated            |                   |   | 9,155,111   |      |  |   | 14,218,214  |  

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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                                     |                        |                           |   |            |      |  |   |             |  
|---------------------------------------------------- | ---------------------- | ------------------------- | - | ---------- | ---- |  | - | ----------- | -
|                                                     |                        | Six Months Ended June 30, |  
|                                                     |                        |                           |  
|                                                     |                        | 2005                      |   |            | 2004 | 
|                                                     |                        |                           |   |            |      | 
|                                                     |                        | (In thousands)            |  
|                                                     |                        | (Unaudited)               |  
|Net cash provided by (used in) operating activities: |                        |                           |   |            |      |  |   |            
|                                                     | As previously reported |                           | $ | (650,515   | )    |  | $ | 3,019,143   |  
|                                                     | As restated            |                           |   | (4,795,510 | )    |  |   | 1,234,605   |  
|Net cash provided by (used in) investing activities: |                        |                           |   |            |      |  |   |            
|                                                     | As previously reported |                           |   | (1,098,317 | )    |  |   | (13,227,658 | )
|                                                     | As restated            |                           |   | 3,046,678  |      |  |   | (11,443,120 | )
|Net cash provided by financing activities:           |                        |                           |   |            |      |  |   |            
|                                                     | Prior to restatement   |                           |   | 3,051,707  |      |  |   | 9,833,010   |  
|                                                     | As restated            |                           |   | 3,051,707  |      |  |   | 9,833,010   |  

|                                                     |                        |                              |   |            |      |  |   |            |  
|---------------------------------------------------- | ---------------------- | ---------------------------- | - | ---------- | ---- |  | - | ---------- | -
|                                                     |                        | Three Months Ended March 31, |  
|                                                     |                        |                              |  
|                                                     |                        | 2005                         |   |            | 2004 | 
|                                                     |                        |                              |   |            |      | 
|                                                     |                        | (In thousands)               |  
|                                                     |                        | (Unaudited)                  |  
|Net cash provided by (used in) operating activities: |                        |                              |   |            |      |  |   |           
|                                                     | As previously reported |                              | $ | (4,206,092 | )    |  | $ | 796,123    |  
|                                                     | As restated            |                              |   | (7,718,223 | )    |  |   | (756,795   | )
|Net cash provided by (used in) investing activities: |                        |                              |   |            |      |  |   |           
|                                                     | As previously reported |                              |   | (116,450   | )    |  |   | (7,615,739 | )
|                                                     | As restated            |                              |   | 3,395,681  |      |  |   | (6,062,821 | )
|Net cash provided by financing activities:           |                        |                              |   |            |      |  |   |           
|                                                     | Prior to restatement   |                              |   | 3,973,473  |      |  |   | 6,091,111  |  
|                                                     | As restated            |                              |   | 3,973,473  |      |  |   | 6,091,111  |  

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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION





SUPPLEMENTARY FINANCIAL DATA


SCHEDULE I  CONDENSED FINANCIAL
INFORMATION OF PARENT COMPANY




CONDENSED BALANCE SHEET


December 31, 2005


(In thousands)


|                                           |                      |                  |            |           |            | 
|------------------------------------------ | -------------------- | ---------------- | ---------- | --------- | ---------- | 
|ASSETS                                     |                      |                  |            |          
|Cash and cash equivalents                  |                      | $                | 1,626,814  |          
|Accounts receivable                        |                      |                  | 6,661      |          
|Other assets                               |                      |                  | 95,129     |          
|Investments in and loans to subsidiaries   |                      |                  | 16,885,741 |          
|                                           |                      |                  |           
|Total assets                               |                      | $                | 18,614,345 |          
|                                           |                      |                  |           
|LIABILITIES                                |                      |                  |            |          
|Borrowings:                                |                      |                  |            |          
|                                           | Affiliate borrowings |                  | $          | 4,130,000 |           
|                                           | Other borrowings     |                  |            | 6,900,519 |           
|                                           |                      |                  |           
|                                           |                      | Total borrowings |            |           | 11,030,519 | 
|Other liabilities                          |                      |                  | 119,856    |          
|                                           |                      |                  |           
|Total liabilities                          |                      |                  | 11,150,375 |          
|STOCKHOLDERS EQUITY                       |                      |                  |            |          
|Common stock and paid-in capital           |                      |                  | 3,367,677  |          
|Retained earnings                          |                      |                  | 3,980,587  |          
|Accumulated other comprehensive income     |                      |                  | 115,706    |          
|                                           |                      |                  |           
|Total stockholders equity                 |                      |                  | 7,463,970  |          
|                                           |                      |                  |           
|Total liabilities and stockholders equity |                      | $                | 18,614,345 |          
|                                           |                      |                  |           

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RESIDENTIAL CAPITAL CORPORATION


SUPPLEMENTARY FINANCIAL DATA


SCHEDULE I  CONDENSED FINANCIAL
INFORMATION OF
PARENT COMPANY  (Continued)


CONDENSED STATEMENT OF INCOME


Year Ended December 31, 2005


(In thousands)


|                                                     |  |   |           |  
|---------------------------------------------------- |  | - | --------- | -
|Revenue                                              |  |   |           |  
|Interest income                                      |  | $ | 422,721   |  
|Interest expense                                     |  |   | 406,437   |  
|                                                     |  |   |          
|Net interest income                                  |  |   | 16,284    |  
|Loss on investment securities, net                   |  |   | (1,553    | )
|                                                     |  |   |          
|Total net revenue                                    |  |   | 14,731    |  
|Expenses                                             |  |   |           |  
|Professional fees                                    |  |   | 15        |  
|Other                                                |  |   | 4,677     |  
|                                                     |  |   |          
|Total expenses                                       |  |   | 4,692     |  
|Income before income tax expense                     |  |   | 10,039    |  
|Income tax expense                                   |  |   | 3,840     |  
|                                                     |  |   |          
|Income before equity in net earnings of subsidiaries |  |   | 6,199     |  
|Equity in net earnings of subsidiaries               |  |   | 1,014,427 |  
|                                                     |  |   |          
|Net income                                           |  | $ | 1,020,626 |  
|                                                     |  |   |          

CONDENSED STATEMENT OF CASH FLOWS


Year Ended December 31, 2005


(In thousands)


|                                          |  |   |            |  
|----------------------------------------- |  | - | ---------- | -
|NET CASH PROVIDED BY OPERATING ACTIVITIES |  | $ | 20,529     |  
|CASH FLOWS FROM INVESTING ACTIVITIES:     |  |   |            |  
|Net increase in affiliate lending         |  |   | (3,477,487 | )
|Other, net                                |  |   | (4,100     | )
|                                          |  |   |           
|Net cash used in investing activities     |  |   | (3,481,587 | )
|CASH FLOWS FROM FINANCING ACTIVITIES:     |  |   |            |  
|Net decrease in affiliate borrowings      |  |   | (1,879,000 | )
|Proceeds from other long-term borrowings  |  |   | 7,003,053  |  
|Payments of debt issuance costs           |  |   | (36,181    | )
|                                          |  |   |           
|Net cash provided by financing activities |  |   | 5,087,872  |  
|                                          |  |   |           
|CASH AND CASH EQUIVALENTS AT END OF YEAR  |  | $ | 1,626,814  |  
|                                          |  |   |           

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RESIDENTIAL CAPITAL CORPORATION


SCHEDULE II  VALUATION AND QUALIFYING ACCOUNTS


|                             |                                                      |                |           |           |            |   |         |            |   |   |               |       |            |        |         |         |  |   |           |           | 
|---------------------------- | ---------------------------------------------------- | -------------- | --------- | --------- | ---------- | - | ------- | ---------- | - | - | ------------- | ----- | ---------- | ------ | ------- | ------- |  | - | --------- | --------- | 
|Column A                     |                                                      | Column B       |           |           | Column C   |   |         | Column D   |   |   | Column E      |      
|                             |                                                      |                |           |           |            |   |         |            |   |   |               |      
|                             |                                                      |                |           | Additions |            |   |         |            |  
|                             |                                                      |                |           |           |            |   |         |            |  
|                             |                                                      | Balance at     |           |           | Charged to |   |         | Charged to |   |   |               |       | Balance at |       
|                             |                                                      | Beginning of   |           |           | Costs and  |   |         | Other      |   |   |               |       | End of     |       
|                             |                                                      | Period         |           |           | Expenses   |   |         | Accounts   |   |   | Deductions(1) |       |            | Period |        
|                             |                                                      |                |           |           |            |   |         |            |   |   |               |       |            |        |        
|                             |                                                      | (In thousands) |          
|Year ended December 31, 2005 |                                                      |                |           |           |            |   |         |            |   |   |               |       |            |        |         |         |  |   |           |          
|                             | Valuation allowance for mortgage loans held for sale |                | $         | 15,676    |            |   | $       | 11,798     |   |   | $             |      |            |        | $       | 10,789  |  |   | $         | 16,685    | 
|                             | Allowance for loan losses                            |                |           | 1,014,677 |            |   |         | 651,796    |   |   |               |      |            |        |         | 413,160 |  |   |           | 1,253,313 | 
|                             | Allowance for uncollectible servicing advances       |                |           | 3,169     |            |   |         | 3,157      |   |   |               |      |            |        |         | 1,636   |  |   |           | 4,690     | 
|                             | Allowance for trade and other receivables            |                |           | 6,383     |            |   |         | 1,305      |   |   |               |      |            |        |         | 2,256   |  |   |           | 5,432     | 
|                             | Liability for assets sold with recourse              |                |           | 58,835    |            |   |         | (8,402     | ) |   |               |      |            |        |         | 13,418  |  |   |           | 37,015    | 
|                             |                                                      |                |           |           |            |   |         |            |   |   |               |       |            |        |        
|                             |                                                      | $              | 1,098,740 |           |            | $ | 659,654 |            |   | $ |              |       |            | $      | 441,259 |         |  | $ | 1,317,135 |          
|                             |                                                      |                |           |           |            |   |         |            |   |   |               |       |            |        |        
|Year ended December 31, 2004 |                                                      |                |           |           |            |   |         |            |   |   |               |       |            |        |         |         |  |   |           |          
|                             | Valuation allowance for mortgage loans held for sale |                | $         | 18,064    |            |   | $       | 21,296     |   |   | $             |      |            |        | $       | 23,684  |  |   | $         | 15,676    | 
|                             | Allowance for loan losses                            |                |           | 617,950   |            |   |         | 842,899    |   |   |               |      |            |        |         | 446,172 |  |   |           | 1,014,677 | 
|                             | Allowance for uncollectible servicing advances       |                |           | 5,179     |            |   |         | 1,944      |   |   |               |      |            |        |         | 3,954   |  |   |           | 3,169     | 
|                             | Allowance for trade and other receivables            |                |           | 11,843    |            |   |         | 1,453      |   |   |               |      |            |        |         | 6,913   |  |   |           | 6,383     | 
|                             | Liability for assets sold with recourse              |                |           | 71,339    |            |   |         | 3,786      |   |   |               |      |            |        |         | 16,290  |  |   |           | 58,835    | 
|                             |                                                      |                |           |           |            |   |         |            |   |   |               |       |            |        |        
|                             |                                                      | $              | 724,375   |           |            | $ | 871,378 |            |   | $ |              |       |            | $      | 497,013 |         |  | $ | 1,098,740 |          
|                             |                                                      |                |           |           |            |   |         |            |   |   |               |       |            |        |        
|Year ended December 31, 2003 |                                                      |                |           |           |            |   |         |            |   |   |               |       |            |        |         |         |  |   |           |          
|                             | Valuation allowance for mortgage loans held for sale |                | $         | 15,735    |            |   | $       | 30,939     |   |   | $             |      |            |        | $       | 28,610  |  |   | $         | 18,064    | 
|                             | Allowance for loan losses                            |                |           | 335,822   |            |   |         | 453,502    |   |   |               |      |            |        |         | 171,374 |  |   |           | 617,950   | 
|                             | Allowance for uncollectible servicing advances       |                |           | 6,168     |            |   |         | (339       | ) |   |               | 1,363 |            |        |         | 2,013   |  |   |           | 5,179     | 
|                             | Allowance for trade and other receivables            |                |           | 12,843    |            |   |         | 2,308      |   |   |               |      |            |        |         | 3,308   |  |   |           | 11,843    | 
|                             | Liability for assets sold with recourse              |                |           | 61,285    |            |   |         | 24,677     |   |   |               |      |            |        |         | 14,623  |  |   |           | 71,339    | 
|                             |                                                      |                |           |           |            |   |         |            |   |   |               |       |            |        |        
|                             |                                                      | $              | 431,853   |           |            | $ | 511,087 |            |   | $ | 1,363         |       |            | $      | 219,928 |         |  | $ | 724,375   |          
|                             |                                                      |                |           |           |            |   |         |            |   |   |               |       |            |        |        






|    |                                                                                                   
|--- | --------------------------------------------------------------------------------------------------
|(1) | Actual losses charged against the valuation allowance, net of
    recoveries and reclassification.

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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
    AND FINANCIAL DISCLOSURE.








|         |                         
|-------- | ------------------------
|Item 9A. | CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures








Restatement of Statements of Cash Flows


nine-month 10-Q six-month




Changes in Internal Control Over Financial Reporting






10-K.


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|         |                   
|-------- | ------------------
|Item 9B. | OTHER INFORMATION.






PART III







|         |                                          
|-------- | -----------------------------------------
|Item 10. | DIRECTORS AND OFFICERS OF THE REGISTRANT.








|         |                        
|-------- | -----------------------
|Item 11. | EXECUTIVE COMPENSATION.








|         |                                                                    
|-------- | -------------------------------------------------------------------
|Item 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
    MANAGEMENT.








|         |                                                
|-------- | -----------------------------------------------
|Item 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.








| |                                                         
| | --------------------------------------------------------
| | Item 14.     PRINCIPAL
    ACCOUNTANT FEES AND SERVICES.





|                                |  |               |        |  |      |   |        | 
|------------------------------- |  | ------------- | ------ |  | ---- | - | ------ | 
|Year Ended December 31,         |  | 2005          |        |  | 2004 |  
|                                |  |               |        |  |      |  
|                                |  | (in millions) |       
|Audit fees (a)                  |  | $             | 11,011 |  |      | $ | 11,869 | 
|Audit-related fees (b)          |  |               | 448    |  |      |   | 1,070  | 
|Tax fees (c)                    |  |               | 602    |  |      |   | 360    | 
|All other fees                  |  |               |       |  |      |   |       | 
|                                |  |               |        |  |      |  
|Total principal accountant fees |  | $             | 12,061 |  |      | $ | 13,299 | 
|                                |  |               |        |  |      |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Audit fees pertain to the audit of our annual
    Consolidated Financial Statements, including reviews of the
    interim financial statements contained in our Quarterly Reports
    on Form 10-Q,
    completion of statutory reports, comfort letters to underwriters
    in connection with debt issuances, attest services, consents to
    the incorporation of the PwC audit report in publicly filed
    documents and assistance with and review of documents filed with
    the SEC.                      
|   
|(b) | Audit-related fees pertain to assurance and related
    services that are traditionally performed by the principal
    accountant, including employee benefit plan audits, due
    diligence related to mergers and acquisitions, accounting
    consultations and audits in connection with proposed or
    consummated acquisitions, internal control reviews, attest
    services that are not required by statute or regulation and
    consultation concerning financial accounting and reporting
    standards
|   
|(c) | Tax fees pertain to services performed for tax
    compliance, tax planning and tax advice, including preparation
    of tax returns and claims for refund and tax payment-planning
    services. Tax planning and advice also includes assistance with
    tax audits and appeals, and tax advice related to specific
    transactions.                                                                                                                                                                            

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pre-approved







PART IV







|         |                                         
|-------- | ----------------------------------------
|Item 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES.



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SIGNATURES


th




| |                                
| | -------------------------------
| | RESIDENTIAL CAPITAL CORPORATION
| | (Registrant)                   



| |     |                     
| | --- | --------------------
| | By: | /s/ Bruce J. Paradis

| |                        
| | -----------------------
| |                        
| | Bruce J. Paradis       
| | Chief Executive Officer



|                                         |  |                                         |  | 
|---------------------------------------- |  | --------------------------------------- |  | 
|Signatures                               |  | Title                                  
|                                         |  |                                        
|                                        
|/s/ Eric A. FeldsteinEric A. Feldstein   |  | Chairman                               
|                                        
|/s/ Bruce J. ParadisBruce J. Paradis     |  | Chief Executive Officer and Director   
|                                        
|/s/ David M. ApplegateDavid M. Applegate |  | Chief Operating Officer and Director   
|                                        
|/s/ Davee L. OlsonDavee L. Olson         |  | Chief Financial Officer and Director   
|                                        
|/s/ James N. YoungJames N. Young         |  | Chief Accounting Officer and Controller
|                                        
|/s/ Thomas JacobThomas Jacob             |  | Director                               
|                                        
|/s/ Sanjiv KhattriSanjiv Khattri         |  | Director                               
|                                        
|/s/ Thomas C. MelzerThomas C. Melzer     |  | Director                               
|                                        
|/s/ David C. WalkerDavid C. Walker       |  | Director                               
|                                        
|/s/ Linda K. ZukauckasLinda K. Zukauckas |  | Director                               

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EXHIBIT INDEX


|        |    |             |  |                                                                                                                                                                                                                                                                                                                                     
|------- | -- | ----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|No      |    | Description
|        |    |            
|        | 3  | .1          |  | Certificate of Incorporation of Residential Capital Corporation.
    (Incorporated by reference to Exhibit 3.1 to the
    Registrants Registration Statement on Form S-4 (File
    No. 333-126640), filed on July 15, 2005.)                                                                                                       
|        | 3  | .2          |  | Bylaws of Residential Capital Corporation. (Incorporated by
    reference to Exhibit 3.2 to the Registrants
    Registration Statement on Form S-4 (File
    No. 333-126640), filed on July 15, 2005.)                                                                                                                             
|        | 3  | .3          |  | Certificate of Incorporation of GMAC Residential Holding Corp.
    (Incorporated by reference to Exhibit 3.3 to the
    Registrants Registration Statement on Form S-4 (File
    No. 333-126640), filed on September 2, 2005.)                                                                                                     
|        | 3  | .4          |  | Bylaws of GMAC Residential Holding Corp. (Incorporated by
    reference to Exhibit 3.4 to the Registrants
    Registration Statement on Form S-4 (File
    No. 333-126640), filed on September 2, 2005.)                                                                                                                           
|        | 3  | .5          |  | Certificate of Incorporation of GMAC-RFC Holding Corp.
    (Incorporated by reference to Exhibit 3.5 to the
    Registrants Registration Statement on Form S-4 (File
    No. 333-126640), filed on September 2, 2005.)                                                                                                             
|        | 3  | .6          |  | Bylaws of GMAC-RFC Holding Corp. (Incorporated by reference to
    Exhibit 3.6 to the Registrants Registration Statement
    on Form S-4 (File No. 333-126640), filed on
    September 2, 2005.)                                                                                                                                   
|        | 3  | .7          |  | Certificate of Incorporation of GMAC Mortgage Corporation.
    (Incorporated by reference to Exhibit 3.7 to the
    Registrants Registration Statement on Form S-4 (File
    No. 333-126640), filed on September 2, 2005.)                                                                                                         
|        | 3  | .8          |  | Bylaws of GMAC Mortgage Corporation. (Incorporated by reference
    to Exhibit 3.8 to the Registrants Registration
    Statement on Form S-4 (File No. 333-126640), filed on
    September 2, 2005.)                                                                                                                               
|        | 3  | .9          |  | Certificate of Incorporation of Residential Funding Corporation.
    (Incorporated by reference to Exhibit 3.9 to the
    Registrants Registration Statement on Form S-4 (File
    No. 333-126640), filed on September 2, 2005.)                                                                                                   
|        | 3  | .10         |  | Bylaws of Residential Funding Corporation. (Incorporated by
    reference to Exhibit 3.10 to the Registrants
    Registration Statement on Form S-4 (File
    No. 333-126640), filed on September 2, 2005.)                                                                                                                        
|        | 3  | .11         |  | Certificate of Incorporation of Homecomings Financial Network,
    Inc. (Incorporated by reference to Exhibit 3.11 to the
    Registrants Registration Statement on Form S-4 (File
    No. 333-126640), filed on September 2, 2005.)                                                                                               
|        | 3  | .12         |  | Bylaws of Homecomings Financial Network, Inc. (Incorporated by
    reference to Exhibit 3.12 to the Registrants
    Registration Statement on Form S-4 (File
    No. 333-126640), filed on September 2, 2005.)                                                                                                                     
|        | 4  | .1          |  | Indenture among Residential Capital Corporation, the guarantors
    party thereto and Deutsche Bank Trust Company Americas, dated
    June 24, 2005. (Incorporated by reference to
    Exhibit 10.3 to the Registrants Registration
    Statement on Form S-4 (File No. 333-126640), filed on
    September 20, 2005.)             
|        | 4  | .2          |  | Supplemental Indenture among Residential Capital Corporation,
    the guarantors party thereto and Deutsche Bank Trust Company
    Americas, dated June 24, 2005. (Incorporated by reference
    to Exhibit 10.3 to the Registrants Registration
    Statement on Form S-4 (File No. 333-126640), filed on
    September 20, 2005.)
|        | 4  | .3          |  | Second Supplemental Indenture among Residential Capital
    Corporation, the guarantors party thereto and Deutsche Bank
    Trust Company Americas, dated November 21, 2005.                                                                                                                                                        
|        | 10 | .1          |  | Operating Agreement among General Motors Corporation, General
    Motors Acceptance Corporation and Residential Capital
    Corporation, dated June 24, 2005. (Incorporated by
    reference to Exhibit 10.1 to the Registrants
    Registration Statement on Form S-4 (File
    No. 333-126640), filed on July 15, 2005.)         

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|                                                                                                                                                                                                                                                                                                                                                      |    |             |  |                                                                                                                                                                                                                                                                                                                                                                               
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -- | ----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit                                                                                                                                                                                                                                                                                                                                               |    |            
|No                                                                                                                                                                                                                                                                                                                                                    |    | Description
|                                                                                                                                                                                                                                                                                                                                                      |    |            
|                                                                                                                                                                                                                                                                                                                                                      | 10 | .2          |  | Subordinated Note Agreement between Residential Capital
    Corporation and General Motors Acceptance Corporation, dated
    June 24, 2005. (Incorporated by reference to
    Exhibit 10.2 to the Registrants Registration
    Statement on Form S-4 (File No. 333-126640), filed on
    September 2, 2005.)                                                                 
|                                                                                                                                                                                                                                                                                                                                                      | 10 | .3          |  | Tax Allocation Agreement between Residential Capital Corporation
    and General Motors Acceptance Corporation, dated June 24,
    2005. (Incorporated by reference to Exhibit 10.3 to the
    Registrants Registration Statement on Form S-4 (File
    No. 333-126640), filed on September 20, 2005.)                                                                       
|                                                                                                                                                                                                                                                                                                                                                      | 10 | .4          |  | Trademark License Agreement among Residential Capital
    Corporation, General Motors Corporation and General Motors
    Acceptance Corporation, dated June 24, 2005. (Incorporated
    by reference to Exhibit 10.4 to the Registrants
    Registration Statement on Form S-4 (File
    No. 333-126640), filed on September 2, 2005.)                                       
|                                                                                                                                                                                                                                                                                                                                                      | 10 | .5          |  | Services and Facilities Agreement among Residential Capital
    Corporation, General Motors Corporation and General Motors
    Acceptance Corporation, dated June 24, 2005. (Incorporated
    by reference to Exhibit 10.5 to the Registrants
    Registration Statement on Form S-4 (File
    No. 333-126640), filed on September 2, 2005.)                                 
|                                                                                                                                                                                                                                                                                                                                                      | 10 | .6          |  | Revolving Credit Facility among Residential Capital Corporation,
    the several lenders from time to time parties thereto and
    General Motors Acceptance Corporation, as Agent, dated
    June 24, 2005. (Incorporated by reference to
    Exhibit 10.6 to the Registrants Registration
    Statement on Form S-4 (File No. 333-126640), filed on
    September 2, 2005.)
|                                                                                                                                                                                                                                                                                                                                                      | 12 | .1          |  | Computation of Ratio of Earnings to Fixed Charges.                                                                                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                      | 23 | .1          |  | Consent of Independent Registered Public Accounting Firm.                                                                                                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                      | 31 | .1          |  | Certification of Principal Executive Officer pursuant to
    Rule 13a-14(a)/ 15d-14(a).                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                      | 31 | .2          |  | Certification of Principal Financial Officer pursuant to
    Rule 13a-14(a)/ 15d-14(a).                                                                                                                                                                                                                                                                                       
|The following exhibit shall not be deemed filed for
    purposes of Section 18 of the Securities Exchange Act of
    1934 or otherwise subject to the liability of that Section. In
    addition Exhibit No. 32.1 shall not be deemed incorporated
    into any filing under the Securities Act of 1933 or the
    Securities Exchange Act of 1934.
|                                                                                                                                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                      | 32 | .1          |  | Certification of Principal Executive Officer and Principal
    Financial Officer pursuant to 18 U.S.C. Section 1350.                                                                                                                                                                                                                                                          

166