##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549-1004


FORM 10-Q


|  |  |                                                                                             
|- |  | --------------------------------------------------------------------------------------------
|þ |  | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
| 
|  |  | For the quarterly period ended September 30, 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: 333-128689


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)


o þ


o þ


o þ




Reduced Disclosure Format












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RESIDENTIAL CAPITAL CORPORATION


INDEX


|                                                                                                                |  |                                                                                                                                   |    |      |    | 
|--------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|                                                                                                                |  |                                                                                                                                   |    | Page |   
|                                                                                                                |  |                                                                                                                                   |    |      |   
|Part I  Financial Information                                                                                  |  |                                                                                                                                   |    |     
|Item 1.                                                                                                         |  | Financial Statements (unaudited)                                                                                                  |    |      |    | 
|                                                                                                                |  | Condensed Consolidated Balance Sheet as of
    September 30, 2005 and December 31, 2004                                           |    |      | 3  | 
|                                                                                                                |  | Condensed Consolidated Statement of Income
    for the Three and Nine Months Ended September 30, 2005 and
    2004                |    |      | 4  | 
|                                                                                                                |  | Condensed Consolidated Statement of Changes
    in Stockholders Equity for the Nine Months Ended
    September 30, 2005 and 2004 |    |      | 5  | 
|                                                                                                                |  | Condensed Consolidated Statement of Cash
    Flows for the Nine Months Ended September 30, 2005 and
    2004                      |    |      | 6  | 
|                                                                                                                |  | Notes to Condensed Consolidated Financial
    Statements                                                                          |    |      | 7  | 
|Item 2.                                                                                                         |  | Managements Discussion and Analysis of Financial Condition
    and Results of Operations                                         |    |      | 25 | 
|Item 3.                                                                                                         |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                                    |    |      | 39 | 
|Item 4.                                                                                                         |  | Controls and Procedures                                                                                                           |    |      | 39 | 
|Part II  Other
    Information                                                                                 |  |                                                                                                                                   |    |     
|Item 1.                                                                                                         |  | Legal Proceedings                                                                                                                 |    |      | 40 | 
|Item 2.                                                                                                         |  | Unregistered Sales of Equity Securities and
    Use of Proceeds                                                                   |    |      | 40 | 
|Item 3.                                                                                                         |  | Defaults Upon Senior Securities                                                                                                   |    |      | 40 | 
|Item 4.                                                                                                         |  | Submission of Matters to a Vote of Security
    Holders                                                                           |    |      | 40 | 
|Item 5.                                                                                                         |  | Other Information                                                                                                                 |    |      | 40 | 
|Item 6.                                                                                                         |  | Exhibits                                                                                                                          |    |      | 40 | 
|Signatures                                                                                                      |  |                                                                                                                                   | 41 |     
|Index of Exhibits                                                                                               |  |                                                                                                                                   | 42 |     
|Computation of Ratio of Earnings to Fixed Charges                                                              
|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 18 U.S.C. Section 1350







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##### Table of Contents



PART I  FINANCIAL INFORMATION


Item 1.  Financial Statements.


RESIDENTIAL CAPITAL CORPORATION





CONDENSED CONSOLIDATED BALANCE SHEET


September 30, 2005 and December 31, 2004


|                                                                                                        |                                                    |                        |             |            |              |   |            |            |            | 
|------------------------------------------------------------------------------------------------------- | -------------------------------------------------- | ---------------------- | ----------- | ---------- | ------------ | - | ---------- | ---------- | ---------- | 
|                                                                                                        |                                                    | September 30,          |             |            | December 31, |  
|                                                                                                        |                                                    | 2005                   |             |            | 2004         |  
|                                                                                                        |                                                    |                        |             |            |              |  
|                                                                                                        |                                                    | (Unaudited)            |            
|                                                                                                        |                                                    | (Dollars in thousands) |            
|ASSETS                                                                                                 
|Cash and cash equivalents                                                                               |                                                    | $                      | 2,813,671   |            |              | $ | 899,083    |           
|Mortgage loans held for sale                                                                            |                                                    |                        | 17,548,733  |            |              |   | 14,032,781 |           
|Trading securities                                                                                      |                                                    |                        | 3,114,839   |            |              |   | 2,714,700  |           
|Available for sale securities                                                                           |                                                    |                        | 1,343,968   |            |              |   | 1,244,658  |           
|Mortgage loans held for investment, net                                                                 |                                                    |                        | 58,316,223  |            |              |   | 56,835,356 |           
|Lending receivables, net                                                                                |                                                    |                        | 11,317,459  |            |              |   | 9,357,397  |           
|Mortgage servicing rights, net                                                                          |                                                    |                        | 3,762,641   |            |              |   | 3,365,992  |           
|Accounts receivable                                                                                     |                                                    |                        | 1,878,994   |            |              |   | 2,110,417  |           
|Investments in real estate and other                                                                    |                                                    |                        | 1,526,942   |            |              |   | 1,397,246  |           
|Goodwill                                                                                                |                                                    |                        | 450,381     |            |              |   | 454,278    |           
|Other assets                                                                                            |                                                    |                        | 2,544,854   |            |              |   | 1,937,556  |           
|                                                                                                        |                                                    |                        |             |            |              |  
|Total assets                                                                                            |                                                    | $                      | 104,618,705 |            |              | $ | 94,349,464 |           
|                                                                                                        |                                                    |                        |             |            |              |  
|                                                                                                       
|LIABILITIES                                                                                            
|Borrowings:                                                                                             |                                                    |                        |             |            |              |   |            |           
|                                                                                                        | Affiliate borrowings                               |                        | $           | 6,655,072  |              |   | $          | 10,006,242 |           
|                                                                                                        | Collateralized borrowings in securitization trusts |                        |             | 49,550,353 |              |   |            | 50,708,476 |           
|                                                                                                        | Other borrowings                                   |                        |             | 33,407,603 |              |   |            | 23,703,650 |           
|                                                                                                        |                                                    |                        |             |            |              |  
|                                                                                                        |                                                    | Total borrowings       |             |            | 89,613,028   |   |            |            | 84,418,368 | 
|Deposit liabilities                                                                                     |                                                    |                        | 3,635,561   |            |              |   | 1,664,970  |           
|Other liabilities                                                                                       |                                                    |                        | 4,033,316   |            |              |   | 3,900,381  |           
|                                                                                                        |                                                    |                        |             |            |              |  
|Total liabilities                                                                                       |                                                    |                        | 97,281,905  |            |              |   | 89,983,719 |           
|STOCKHOLDERS EQUITY                                                                                   
|Common stock, $0.01 par value (1,000 shares
    authorized, issued and outstanding) and paid-in capital |                                                    |                        | 3,350,459   |            |              |   | 1,246,778  |           
|Retained earnings                                                                                       |                                                    |                        | 3,862,287   |            |              |   | 2,959,961  |           
|Accumulated other comprehensive income                                                                  |                                                    |                        | 124,054     |            |              |   | 159,006    |           
|                                                                                                        |                                                    |                        |             |            |              |  
|Total stockholders equity                                                                              |                                                    |                        | 7,336,800   |            |              |   | 4,365,745  |           
|                                                                                                        |                                                    |                        |             |            |              |  
|Total liabilities and stockholders equity                                                              |                                                    | $                      | 104,618,705 |            |              | $ | 94,349,464 |           
|                                                                                                        |                                                    |                        |             |            |              |  



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION





CONDENSED CONSOLIDATED STATEMENT OF INCOME


|                                                     |  |                        |           |   |                   |   |           |      |  |   |           |   |  |   |           |  
|---------------------------------------------------- |  | ---------------------- | --------- | - | ----------------- | - | --------- | ---- |  | - | --------- | - |  | - | --------- | -
|                                                     |  | Three Months Ended     |           |   | Nine Months Ended |  
|                                                     |  | September 30           |           |   | September 30      |  
|                                                     |  |                        |           |   |                   |  
|                                                     |  | 2005                   |           |   | 2004              |   |           | 2005 |  |   | 2004      |  
|                                                     |  |                        |           |   |                   |   |           |      |  |   |           |  
|                                                     |  | (Dollars in thousands) |          
|                                                     |  | (Unaudited)            |          
|Revenue                                              |  |                        |           |   |                   |   |           |      |  |   |           |   |  |   |           |  
|Interest income                                      |  | $                      | 1,479,358 |   |                   | $ | 1,263,017 |      |  | $ | 4,151,095 |   |  | $ | 3,621,687 |  
|Interest expense                                     |  |                        | 1,037,422 |   |                   |   | 610,985   |      |  |   | 2,653,393 |   |  |   | 1,671,551 |  
|                                                     |  |                        |           |   |                   |   |           |      |  |   |           |  
|Net interest income                                  |  |                        | 441,936   |   |                   |   | 652,032   |      |  |   | 1,497,702 |   |  |   | 1,950,136 |  
|Provision for loan losses                            |  |                        | 163,870   |   |                   |   | 253,646   |      |  |   | 461,796   |   |  |   | 633,498   |  
|                                                     |  |                        |           |   |                   |   |           |      |  |   |           |  
|Net interest income after provision for loan losses  |  |                        | 278,066   |   |                   |   | 398,386   |      |  |   | 1,035,906 |   |  |   | 1,316,638 |  
|Gain on sale of mortgage loans, net                  |  |                        | 306,818   |   |                   |   | 59,324    |      |  |   | 787,065   |   |  |   | 479,759   |  
|Servicing fees                                       |  |                        | 360,955   |   |                   |   | 321,849   |      |  |   | 1,046,978 |   |  |   | 938,018   |  
|Amortization and impairment of servicing rights      |  |                        | (68,955   | ) |                   |   | (341,928  | )    |  |   | (515,664  | ) |  |   | (793,475  | )
|Servicing asset valuation and hedge gain (loss), net |  |                        | (1,445    | ) |                   |   | 225,421   |      |  |   | 47,991    |   |  |   | 240,099   |  
|                                                     |  |                        |           |   |                   |   |           |      |  |   |           |  
|Net servicing fees                                   |  |                        | 290,555   |   |                   |   | 205,342   |      |  |   | 579,305   |   |  |   | 384,642   |  
|Gain (loss) on investment securities, net            |  |                        | 23,632    |   |                   |   | (39,765   | )    |  |   | 243,047   |   |  |   | 28,517    |  
|Real estate related revenues                         |  |                        | 201,835   |   |                   |   | 186,265   |      |  |   | 526,894   |   |  |   | 476,112   |  
|Other income                                         |  |                        | 72,716    |   |                   |   | 95,384    |      |  |   | 227,387   |   |  |   | 264,033   |  
|                                                     |  |                        |           |   |                   |   |           |      |  |   |           |  
|Total net revenue                                    |  |                        | 1,173,622 |   |                   |   | 904,936   |      |  |   | 3,399,604 |   |  |   | 2,949,701 |  
|Expenses                                             |  |                        |           |   |                   |   |           |      |  |   |           |   |  |   |           |  
|Compensation and benefits                            |  |                        | 387,020   |   |                   |   | 278,663   |      |  |   | 1,071,826 |   |  |   | 891,933   |  
|Professional fees                                    |  |                        | 47,330    |   |                   |   | 63,962    |      |  |   | 143,713   |   |  |   | 157,285   |  
|Data processing and telecommunications               |  |                        | 51,058    |   |                   |   | 46,278    |      |  |   | 148,131   |   |  |   | 139,069   |  
|Advertising                                          |  |                        | 38,151    |   |                   |   | 36,813    |      |  |   | 124,069   |   |  |   | 107,734   |  
|Occupancy                                            |  |                        | 32,075    |   |                   |   | 25,936    |      |  |   | 92,479    |   |  |   | 77,555    |  
|Other                                                |  |                        | 146,686   |   |                   |   | 121,239   |      |  |   | 360,187   |   |  |   | 367,449   |  
|                                                     |  |                        |           |   |                   |   |           |      |  |   |           |  
|Total expenses                                       |  |                        | 702,320   |   |                   |   | 572,891   |      |  |   | 1,940,405 |   |  |   | 1,741,025 |  
|                                                     |  |                        |           |   |                   |   |           |      |  |   |           |  
|Income before income tax expense                     |  |                        | 471,302   |   |                   |   | 332,045   |      |  |   | 1,459,199 |   |  |   | 1,208,676 |  
|Income tax expense                                   |  |                        | 191,197   |   |                   |   | 129,309   |      |  |   | 556,873   |   |  |   | 498,395   |  
|                                                     |  |                        |           |   |                   |   |           |      |  |   |           |  
|Net Income                                           |  | $                      | 280,105   |   |                   | $ | 202,736   |      |  | $ | 902,326   |   |  | $ | 710,281   |  
|                                                     |  |                        |           |   |                   |   |           |      |  |   |           |  



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION





CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
STOCKHOLDERS EQUITY


Nine Months Ended September 30, 2005 and 2004


|                              |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |         |         |   |   |           |           |         |  
|----------------------------- | --------------------------------------- | ---------------------------------------- | --------- | --------- | -------- | - | --------- | ------------- | ----------- |  | ------------- | ------- | ------- | ------------- | ------- | ------- | - | - | --------- | --------- | ------- | -
|                              |                                         | Common                                   |           |           |          |   |           |               | Accumulated |  |               |        
|                              |                                         | Stock and                                |           |           |          |   |           |               | Other       |  |               | Total   |        
|                              |                                         | Paid-in                                  |           |           | Retained |   |           | Comprehensive |             |  | Comprehensive |         |         | Stockholders |        
|                              |                                         | Capital                                  |           |           | Earnings |   |           | Income        |             |  | Income        |         |         | Equity        |        
|                              |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        
|                              |                                         | (Unaudited)                              |          
|                              |                                         | (Dollars in thousands)                   |          
|Balance at January 1, 2005    |                                         | $                                        | 1,246,778 |           |          | $ | 2,959,961 |               |             |  |               |         |         | $             | 159,006 |         |   | $ | 4,365,745 |          
|                              | Net income                              |                                          |           |          |          |   |           | 902,326       |             |  | $             | 902,326 |         |               |         |        |   |   |           | 902,326   |        
|                              | Capital contributions                   |                                          |           | 2,103,681 |          |   |           |              |             |  |               |        |         |               |         |        |   |   |           | 2,103,681 |        
|                              | Other comprehensive income, net of tax: |                                          |           |           |          |   |           |               |             |  |               |         |         |               |         |         |   |   |           |           |        
|                              |                                         | Unrealized loss on investment securities |           |           |         |   |           |               |            |  |               |         | (25,657 | )             |         |         |  |   |           |           | (25,657 | )
|                              |                                         | Foreign currency translation adjustment  |           |           |         |   |           |               |            |  |               |         | (26,949 | )             |         |         |  |   |           |           | (26,949 | )
|                              |                                         | Unrealized gain on derivatives           |           |           |         |   |           |               |            |  |               |         | 17,654  |               |         |         |  |   |           |           | 17,654  |  
|                              |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        
|                              | Other comprehensive income              |                                          |           |          |          |   |           |              |             |  |               | (34,952 | )       |               |         | (34,952 | ) |   |           |          |        
|                              |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        
|                              | Comprehensive income                    |                                          |           |          |          |   |           |              |             |  | $             | 867,374 |         |               |         |        |   |   |           |          |        
|                              |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        
|Balance at September 30, 2005 |                                         | $                                        | 3,350,459 |           |          | $ | 3,862,287 |               |             |  |               |         |         | $             | 124,054 |         |   | $ | 7,336,800 |          
|                              |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        
|Balance at January 1, 2004    |                                         | $                                        | 1,193,592 |           |          | $ | 1,991,749 |               |             |  |               |         |         | $             | 666     |         |   | $ | 3,186,007 |          
|                              | Net income                              |                                          |           |          |          |   |           | 710,281       |             |  | $             | 710,281 |         |               |         |        |   |   |           | 710,281   |        
|                              | Other comprehensive income, net of tax: |                                          |           |           |          |   |           |               |             |  |               |         |         |               |         |         |   |   |           |           |        
|                              |                                         | Unrealized gain on investment securities |           |           |         |   |           |               |            |  |               |         | 10,425  |               |         |         |  |   |           |           | 10,425  |  
|                              |                                         | Foreign currency translation adjustment  |           |           |         |   |           |               |            |  |               |         | 2,019   |               |         |         |  |   |           |           | 2,019   |  
|                              |                                         | Unrealized gain on derivatives           |           |           |         |   |           |               |            |  |               |         | 48,299  |               |         |         |  |   |           |           | 48,299  |  
|                              |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        
|                              | Other comprehensive income              |                                          |           |          |          |   |           |              |             |  |               | 60,743  |         |               |         | 60,743  |   |   |           |          |        
|                              |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        
|                              | Comprehensive income                    |                                          |           |          |          |   |           |              |             |  | $             | 771,024 |         |               |         |        |   |   |           |          |        
|                              |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        
|Balance at September 30, 2004 |                                         | $                                        | 1,193,592 |           |          | $ | 2,702,030 |               |             |  |               |         |         | $             | 61,409  |         |   | $ | 3,957,031 |          
|                              |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION





CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS


|                                                                                         |                                                                        |                        |             |              |      |   |             |             |  
|---------------------------------------------------------------------------------------- | ---------------------------------------------------------------------- | ---------------------- | ----------- | ------------ | ---- | - | ----------- | ----------- | -
|                                                                                         |                                                                        | Nine Months Ended      |            
|                                                                                         |                                                                        | September 30           |            
|                                                                                         |                                                                        |                        |            
|                                                                                         |                                                                        | 2005                   |             |              | 2004 |  
|                                                                                         |                                                                        |                        |             |              |      |  
|                                                                                         |                                                                        | (Unaudited)            |            
|                                                                                         |                                                                        | (Dollars in Thousands) |            
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                    |                                                                        |                        |             |              |      |   |             |            
|Net income                                                                               |                                                                        | $                      | 902,326     |              |      | $ | 710,281     |            
|Reconciliation of net income to net cash provided by (used in)
    operating activities: |                                                                        |                        |             |              |      |   |             |            
|                                                                                         | Amortization and impairment of mortgage servicing rights               |                        |             | 515,664      |      |   |             | 793,475     |  
|                                                                                         | Depreciation and amortization                                          |                        |             | 448,234      |      |   |             | 382,388     |  
|                                                                                         | Provision for loan losses                                              |                        |             | 461,796      |      |   |             | 633,498     |  
|                                                                                         | Gain on sale of mortgage loans, net                                    |                        |             | (787,065     | )    |   |             | (479,759    | )
|                                                                                         | Net gain on sale of other assets                                       |                        |             | (45,937      | )    |   |             | (27,665     | )
|                                                                                         | Gain on valuation of derivatives                                       |                        |             | (7,740       | )    |   |             | (406,286    | )
|                                                                                         | Gain on investment securities                                          |                        |             | (243,047     | )    |   |             | (28,517     | )
|                                                                                         | Equity in earnings of investees in excess of cash received             |                        |             | (93,294      | )    |   |             | (110,942    | )
|                                                                                         | Loss on valuation of mortgage servicing rights                         |                        |             | 17,599       |      |   |             | 229,449     |  
|                                                                                         | Originations and purchases of mortgage loans held for sale             |                        |             | (117,856,671 | )    |   |             | (88,677,104 | )
|                                                                                         | Proceeds from sales and repayments of mortgage loans held for
    sale |                        |             | 114,419,749  |      |   |             | 87,957,558  |  
|                                                                                         | Deferred income tax                                                    |                        |             | 30,842       |      |   |             | 348,963     |  
|                                                                                         | Net change in:                                                         |                        |             |              |      |   |             |             |  
|                                                                                         | Trading securities                                                     |                        |             | (173,765     | )    |   |             | 962,017     |  
|                                                                                         | Accounts receivable                                                    |                        |             | 214,462      |      |   |             | (246,569    | )
|                                                                                         | Other assets                                                           |                        |             | 723,870      |      |   |             | 1,206,751   |  
|                                                                                         | Other liabilities                                                      |                        |             | (969,842     | )    |   |             | (300,188    | )
|                                                                                         |                                                                        |                        |             |              |      |  
|                                                                                         | Net cash provided by (used in) operating activities                    |                        |             | (2,442,819   | )    |   |             | 2,947,350   |  
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                    |                                                                        |                        |             |              |      |   |             |            
|Net increase in lending receivables                                                      |                                                                        |                        | (1,894,223  | )            |      |   | (1,199,936  | )          
|Originations and purchases of mortgage loans held for investment                         |                                                                        |                        | (19,528,025 | )            |      |   | (27,236,417 | )          
|Proceeds from sales and repayments of mortgage loans held for
    investment             |                                                                        |                        | 17,302,377  |              |      |   | 12,114,309  |            
|Purchases of available for sale securities                                               |                                                                        |                        | (570,903    | )            |      |   | (596,111    | )          
|Proceeds from sales and repayments of available for sale
    securities                  |                                                                        |                        | 451,971     |              |      |   | 16,626      |            
|Originations and purchases of mortgage servicing rights, net of
    sales                |                                                                        |                        | (929,912    | )            |      |   | (1,085,928  | )          
|Purchase of and advances to investments in real estate and other                         |                                                                        |                        | (685,433    | )            |      |   | (507,002    | )          
|Proceeds from sales of and returns of investments in real estate
    and other           |                                                                        |                        | 661,486     |              |      |   | 588,973     |            
|Other, net                                                                               |                                                                        |                        | 416,551     |              |      |   | 151,084     |            
|                                                                                         |                                                                        |                        |             |              |      |  
|                                                                                         | Net cash used in investing activities                                  |                        |             | (4,776,111   | )    |   |             | (17,754,402 | )
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                    |                                                                        |                        |             |              |      |   |             |            
|Net increase (decrease) in affiliate borrowings                                          |                                                                        |                        | (1,350,884  | )            |      |   | 289,353     |            
|Net increase in other short-term borrowings                                              |                                                                        |                        | 2,388,217   |              |      |   | 459,884     |            
|Proceeds from issuance of collateralized borrowings in
    securitization trusts         |                                                                        |                        | 16,146,955  |              |      |   | 25,243,628  |            
|Repayments of collateralized borrowings in securitization trusts                         |                                                                        |                        | (16,943,441 | )            |      |   | (12,237,526 | )          
|Proceeds from other long-term borrowings                                                 |                                                                        |                        | 7,211,850   |              |      |   |            |            
|Repayments of other long-term borrowings                                                 |                                                                        |                        | (268,178    | )            |      |   | (223,703    | )          
|Increase in deposit liabilities                                                          |                                                                        |                        | 1,970,592   |              |      |   | 686,578     |            
|                                                                                         |                                                                        |                        |             |              |      |  
|                                                                                         | Net cash provided by financing activities                              |                        |             | 9,155,111    |      |   |             | 14,218,214  |  
|Effect of foreign exchange rates on cash and cash equivalents                            |                                                                        |                        | (21,593     | )            |      |   | 2,121       |            
|                                                                                         |                                                                        |                        |             |              |      |  
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                     |                                                                        |                        | 1,914,588   |              |      |   | (586,717    | )          
|CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                           |                                                                        |                        | 899,083     |              |      |   | 941,093     |            
|                                                                                         |                                                                        |                        |             |              |      |  
|CASH AND CASH EQUIVALENTS AT END OF PERIOD                                               |                                                                        | $                      | 2,813,671   |              |      | $ | 354,376     |            
|                                                                                         |                                                                        |                        |             |              |      |  
|SUPPLEMENTAL DISCLOSURES FOR NON-CASH TRANSACTIONS:                                      |                                                                        |                        |             |              |      |   |             |            
|Capital contribution through forgiveness of affiliate borrowings                         |                                                                        | $                      | 2,000,000   |              |      | $ |            |            
|Capital contributions of lending receivables                                             |                                                                        |                        | 103,681     |              |      |   |            |            



6



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION





NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)




|   |                      
|-- | ---------------------
|1. | Basis of Presentation











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

Accounting for Certain Loans or Debt Securities Acquired in a
Transfer


Accounting Changes and Error Corrections


7



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                   
|-- | ------------------
|2. | Trading Securities



|                                     |  |                |           |  |              |   |           | 
|------------------------------------ |  | -------------- | --------- |  | ------------ | - | --------- | 
|                                     |  | September 30,  |           |  | December 31, |  
|                                     |  | 2005           |           |  | 2004         |  
|                                     |  |                |           |  |              |  
|                                     |  | (In thousands) |          
|Mortgage and asset-backed securities |  | $              | 1,183,995 |  |              | $ | 1,141,460 | 
|Residual interests                   |  |                | 1,010,266 |  |              |   | 1,033,544 | 
|Interest-only securities             |  |                | 229,979   |  |              |   | 187,835   | 
|Principal-only securities            |  |                | 34,913    |  |              |   | 200,666   | 
|U.S. Treasury securities             |  |                | 654,820   |  |              |   | 150,375   | 
|Other                                |  |                | 866       |  |              |   | 820       | 
|                                     |  |                |           |  |              |  
|Total                                |  | $              | 3,114,839 |  |              | $ | 2,714,700 | 
|                                     |  |                |           |  |              |  
|Net unrealized gains                 |  | $              | 107,457   |  |              | $ | 29,895    | 







|   |                              
|-- | -----------------------------
|3. | Available for Sale Securities



|                      |                                   |                    |           |                  |       |   |       |        |  |   |            |         |   |   |           |           | 
|--------------------- | --------------------------------- | ------------------ | --------- | ---------------- | ----- | - | ----- | ------ |  | - | ---------- | ------- | - | - | --------- | --------- | 
|                      |                                   | September 30, 2005 |          
|                      |                                   |                    |          
|                      |                                   |                    |           | Gross Unrealized |       |   |      
|                      |                                   |                    |           |                  |       |   |      
|                      |                                   | Cost               |           |                  | Gains |   |       | Losses |  |   | Fair Value |        
|                      |                                   |                    |           |                  |       |   |       |        |  |   |            |        
|                      |                                   | (In thousands)     |          
|Debt securities:      |                                   |                    |           |                  |       |   |       |        |  |   |            |         |   |   |           |          
|                      | U.S. Treasury securities          |                    | $         | 1,250,854        |       |   | $     |       |  |   | $          | (27,674 | ) |   | $         | 1,223,180 | 
|                      | Mortgage-backed securities        |                    |           | 87,899           |       |   |       | 12     |  |   |            | (1,507  | ) |   |           | 86,404    | 
|                      | Interest-only securities(a)       |                    |           | 3,524            |       |   |       | 1,769  |  |   |            |        |   |   |           | 5,293     | 
|                      | Principal-only securities         |                    |           | 211              |       |   |       | 150    |  |   |            |        |   |   |           | 361       | 
|                      | States and political subdivisions |                    |           | 4,882            |       |   |       |       |  |   |            | (75     | ) |   |           | 4,807     | 
|                      | Other                             |                    |           | 23,222           |       |   |       |       |  |   |            | (170    | ) |   |           | 23,052    | 
|                      |                                   |                    |           |                  |       |   |       |        |  |   |            |        
|Total debt securities |                                   |                    | 1,370,592 |                  |       |   | 1,931 |        |  |   | (29,426    | )       |   |   | 1,343,097 |          
|Equity securities     |                                   |                    | 900       |                  |       |   |      |        |  |   | (29        | )       |   |   | 871       |          
|                      |                                   |                    |           |                  |       |   |       |        |  |   |            |        
|Total                 |                                   | $                  | 1,371,492 |                  |       | $ | 1,931 |        |  | $ | (29,455    | )       |   | $ | 1,343,968 |          
|                      |                                   |                    |           |                  |       |   |       |        |  |   |            |        

8



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                      |                                   |                   |           |                  |       |   |        |        |  |   |            |        |   |   |           |           | 
|--------------------- | --------------------------------- | ----------------- | --------- | ---------------- | ----- | - | ------ | ------ |  | - | ---------- | ------ | - | - | --------- | --------- | 
|                      |                                   | December 31, 2004 |          
|                      |                                   |                   |          
|                      |                                   |                   |           | Gross Unrealized |       |   |       
|                      |                                   |                   |           |                  |       |   |       
|                      |                                   | Cost              |           |                  | Gains |   |        | Losses |  |   | Fair Value |       
|                      |                                   |                   |           |                  |       |   |        |        |  |   |            |       
|                      |                                   | (In thousands)    |          
|Debt securities:      |                                   |                   |           |                  |       |   |        |        |  |   |            |        |   |   |           |          
|                      | U.S. Treasury securities          |                   | $         | 1,103,087        |       |   | $      | 12,889 |  |   | $          | (1,444 | ) |   | $         | 1,114,532 | 
|                      | Mortgage-backed securities        |                   |           | 98,293           |       |   |        | 4,543  |  |   |            | (4,778 | ) |   |           | 98,058    | 
|                      | Interest-only securities(a)       |                   |           | 6,047            |       |   |        | 838    |  |   |            |       |   |   |           | 6,885     | 
|                      | Principal-only securities         |                   |           | 314              |       |   |        | 361    |  |   |            |       |   |   |           | 675       | 
|                      | States and political subdivisions |                   |           | 5,096            |       |   |        |       |  |   |            |       |   |   |           | 5,096     | 
|                      | Other                             |                   |           | 9,797            |       |   |        | 144    |  |   |            |       |   |   |           | 9,941     | 
|                      |                                   |                   |           |                  |       |   |        |        |  |   |            |       
|Total debt securities |                                   |                   | 1,222,634 |                  |       |   | 18,775 |        |  |   | (6,222     | )      |   |   | 1,235,187 |          
|Equity securities     |                                   |                   | 10,099    |                  |       |   |       |        |  |   | (628       | )      |   |   | 9,471     |          
|                      |                                   |                   |           |                  |       |   |        |        |  |   |            |       
|Total                 |                                   | $                 | 1,232,733 |                  |       | $ | 18,775 |        |  | $ | (6,850     | )      |   | $ | 1,244,658 |          
|                      |                                   |                   |           |                  |       |   |        |        |  |   |            |       






|    |                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------
|(a) | These interest-only securities are retained interests from the
    Companys off-balance sheet securitizations.





|                                |  |                |        |   |      |   |      |  
|------------------------------- |  | -------------- | ------ | - | ---- | - | ---- | -
|Nine Months Ended September 30, |  | 2005           |        |   | 2004 |  
|                                |  |                |        |   |      |  
|                                |  | (In thousands) |       
|Gross realized gains            |  | $              | 22,512 |   |      | $ |     |  
|Gross realized losses           |  |                | (1,379 | ) |      |   | (740 | )
|                                |  |                |        |   |      |  
|Net realized gains (losses)     |  | $              | 21,133 |   |      | $ | (740 | )
|                                |  |                |        |   |      |  





9



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                   
|-- | ----------------------------------
|4. | Mortgage Loans Held for Investment



|                               |       |                |            |            |              |   |            |            | 
|------------------------------ | ----- | -------------- | ---------- | ---------- | ------------ | - | ---------- | ---------- | 
|                               |       | September 30,  |            |            | December 31, |  
|                               |       | 2005           |            |            | 2004         |  
|                               |       |                |            |            |              |  
|                               |       | (In thousands) |           
|Prime conforming               |       | $              | 1,480,539  |            |              | $ | 972,705    |           
|Prime non-conforming           |       |                | 5,833,853  |            |              |   | 4,937,544  |           
|Nonprime                       |       |                | 49,562,441 |            |              |   | 47,425,595 |           
|Prime second-lien              |       |                | 2,410,208  |            |              |   | 4,370,767  |           
|Government                     |       |                | 872        |            |              |   | 1,699      |           
|                               |       |                |            |            |              |  
|                               | Total |                |            | 59,287,913 |              |   |            | 57,708,310 | 
|Less allowance for loan losses |       |                | (971,690   | )          |              |   | (872,954   | )         
|                               |       |                |            |            |              |  
|Total, net                     |       | $              | 58,316,223 |            |              | $ | 56,835,356 |           
|                               |       |                |            |            |              |  









|   |                    
|-- | -------------------
|5. | Lending Receivables



|                               |       |                |            |            |              |   |           |           | 
|------------------------------ | ----- | -------------- | ---------- | ---------- | ------------ | - | --------- | --------- | 
|                               |       | September 30,  |            |            | December 31, |  
|                               |       | 2005           |            |            | 2004         |  
|                               |       |                |            |            |              |  
|                               |       | (In thousands) |           
|Warehouse                      |       | $              | 6,854,290  |            |              | $ | 5,481,622 |          
|Construction                   |       |                | 2,628,886  |            |              |   | 2,174,688 |          
|Commercial business            |       |                | 1,170,200  |            |              |   | 1,086,405 |          
|Healthcare                     |       |                | 587,711    |            |              |   | 399,770   |          
|Commercial real estate         |       |                | 202,968    |            |              |   | 311,659   |          
|Other                          |       |                | 49,156     |            |              |   | 44,976    |          
|                               |       |                |            |            |              |  
|                               | Total |                |            | 11,493,211 |              |   |           | 9,499,120 | 
|Less allowance for loan losses |       |                | (175,752   | )          |              |   | (141,723  | )        
|                               |       |                |            |            |              |  
|Total, net                     |       | $              | 11,317,459 |            |              | $ | 9,357,397 |          
|                               |       |                |            |            |              |  

10



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                          
|-- | -------------------------
|6. | Allowance for Loan Losses



|                              |  |                |          |   |             |   |         |       |  |   |           |  
|----------------------------- |  | -------------- | -------- | - | ----------- | - | ------- | ----- |  | - | --------- | -
|                              |  | Mortgage       |          |   |             |   |        
|                              |  | Loans Held     |          |   |             |   |        
|                              |  | for            |          |   | Lending     |   |         |      
|                              |  | Investment     |          |   | Receivables |   |         | Total | 
|                              |  |                |          |   |             |   |         |       | 
|                              |  | (In thousands) |         
|Balance at January 1, 2005    |  | $              | 872,954  |   |             | $ | 141,723 |       |  | $ | 1,014,677 |  
|Provision for loan losses     |  |                | 425,706  |   |             |   | 36,090  |       |  |   | 461,796   |  
|Charge-offs                   |  |                | (356,221 | ) |             |   | (2,537  | )     |  |   | (358,758  | )
|Recoveries                    |  |                | 29,251   |   |             |   | 476     |       |  |   | 29,727    |  
|                              |  |                |          |   |             |   |         |       | 
|Balance at September 30, 2005 |  | $              | 971,690  |   |             | $ | 175,752 |       |  | $ | 1,147,442 |  
|                              |  |                |          |   |             |   |         |       | 
|Balance at January 1, 2004    |  | $              | 490,991  |   |             | $ | 126,959 |       |  | $ | 617,950   |  
|Provision for loan losses     |  |                | 626,091  |   |             |   | 7,407   |       |  |   | 633,498   |  
|Charge-offs                   |  |                | (310,216 | ) |             |   | (20,061 | )     |  |   | (330,277  | )
|Recoveries                    |  |                | 13,815   |   |             |   | 3,762   |       |  |   | 17,577    |  
|                              |  |                |          |   |             |   |         |       | 
|Balance at September 30, 2004 |  | $              | 820,681  |   |             | $ | 118,067 |       |  | $ | 938,748   |  
|                              |  |                |          |   |             |   |         |       | 



|   |                          
|-- | -------------------------
|7. | Mortgage Servicing Rights



|                                           |  |                |           |   |      |   |            |  
|------------------------------------------ |  | -------------- | --------- | - | ---- | - | ---------- | -
|                                           |  | 2005           |           |   | 2004 |  
|                                           |  |                |           |   |      |  
|                                           |  | (In thousands) |          
|Balance at January 1                       |  | $              | 4,294,846 |   |      | $ | 4,333,609  |  
|Originations and purchases, net of sales   |  |                | 929,912   |   |      |   | 1,085,929  |  
|Amortization                               |  |                | (744,114  | ) |      |   | (556,092   | )
|Valuation adjustments for hedge accounting |  |                | (17,599   | ) |      |   | (229,450   | )
|Other than temporary impairment            |  |                | (36,522   | ) |      |   | (352,762   | )
|                                           |  |                |           |   |      |  
|Balance at September 30                    |  |                | 4,426,523 |   |      |   | 4,281,234  |  
|Valuation allowance                        |  |                | (663,882  | ) |      |   | (1,033,923 | )
|                                           |  |                |           |   |      |  
|Carrying value at September 30             |  | $              | 3,762,641 |   |      | $ | 3,247,311  |  
|                                           |  |                |           |   |      |  
|Estimated fair value at September 30       |  | $              | 3,763,030 |   |      | $ | 3,259,590  |  
|                                           |  |                |           |   |      |  

11



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                |  |                |          |   |      |   |           |  
|------------------------------- |  | -------------- | -------- | - | ---- | - | --------- | -
|                                |  | 2005           |          |   | 2004 |  
|                                |  |                |          |   |      |  
|                                |  | (In thousands) |         
|Balance at January 1            |  | $              | 928,854  |   |      | $ | 1,149,302 |  
|Additions (deductions)          |  |                | (228,450 | ) |      |   | 237,383   |  
|Other than temporary impairment |  |                | (36,522  | ) |      |   | (352,762  | )
|                                |  |                |          |   |      |  
|Balance at September 30         |  | $              | 663,882  |   |      | $ | 1,033,923 |  
|                                |  |                |          |   |      |  







|   |           
|-- | ----------
|8. | Borrowings



|                                                      |                                              |                        |            |            |              |   |            |           |            | 
|----------------------------------------------------- | -------------------------------------------- | ---------------------- | ---------- | ---------- | ------------ | - | ---------- | --------- | ---------- | 
|                                                      |                                              | September 30,          |            |            | December 31, |  
|                                                      |                                              | 2005                   |            |            | 2004         |  
|                                                      |                                              |                        |            |            |              |  
|                                                      |                                              | (In thousands)         |           
|Affiliate borrowings                                  |                                              | $                      | 6,655,072  |            |              | $ | 10,006,242 |          
|Collateralized borrowings in securitization trusts(a) |                                              |                        | 49,550,353 |            |              |   | 50,708,476 |          
|Other borrowings:                                     |                                              |                        |            |            |              |   |            |          
|                                                      | Secured aggregation facilities               |                        |            | 11,138,035 |              |   |            | 9,867,955 |           
|                                                      | Repurchase agreements                        |                        |            | 9,791,973  |              |   |            | 6,598,433 |           
|                                                      | Senior unsecured notes(a)                    |                        |            | 3,927,286  |              |   |            |          |           
|                                                      | FHLB advances  short-term                   |                        |            | 1,225,000  |              |   |            | 853,000   |           
|                                                      | FHLB advances  long-term(a)                 |                        |            | 1,923,000  |              |   |            | 654,000   |           
|                                                      | Debt collateralized by mortgage loans        |                        |            | 939,254    |              |   |            | 736,538   |           
|                                                      | Investor custodial funds                     |                        |            | 154,552    |              |   |            | 1,915,061 |           
|                                                      | Third-party bank credit facilities           |                        |            | 157,500    |              |   |            | 766,500   |           
|                                                      | Securities purchased under forward contracts |                        |            |           |              |   |            | 226,844   |           
|                                                      | Other  short-term                           |                        |            | 2,183,384  |              |   |            | 1,899,196 |           
|                                                      | Other  long-term(a)                         |                        |            | 1,967,619  |              |   |            | 186,123   |           
|                                                      |                                              |                        |            |            |              |  
|                                                      |                                              | Total other borrowings |            |            | 33,407,603   |   |            |           | 23,703,650 | 
|                                                      |                                              |                        |            |            |              |  
|Total borrowings                                      |                                              | $                      | 89,613,028 |            |              | $ | 84,418,368 |          
|                                                      |                                              |                        |            |            |              |  






|    |                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Represents borrowings with an original contractual maturity in
    excess of one year. In addition, affiliate borrowings had
    $5.0 billion of borrowings with an original contractual
    maturity in excess of one year at September 30, 2005.



12



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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                   |                                       |                |            |            |              |   |            |            | 
|---------------------------------- | ------------------------------------- | -------------- | ---------- | ---------- | ------------ | - | ---------- | ---------- | 
|                                   |                                       | September 30,  |            |            | December 31, |  
|                                   |                                       | 2005           |            |            | 2004         |  
|                                   |                                       |                |            |            |              |  
|                                   |                                       | (In thousands) |           
|Mortgage loans held for investment |                                       | $              | 58,377,939 |            |              | $ | 55,370,161 |           
|Mortgage loans held for sale       |                                       |                | 14,322,659 |            |              |   | 10,996,204 |           
|Lending receivables                |                                       |                | 7,700,728  |            |              |   | 5,426,695  |           
|Trading securities                 |                                       |                | 1,676,564  |            |              |   | 2,213,045  |           
|Available for sale securities      |                                       |                | 1,227,838  |            |              |   | 1,114,532  |           
|Servicing advances                 |                                       |                | 617,200    |            |              |   |           |           
|Mortgage servicing rights          |                                       |                | 1,735,723  |            |              |   | 444,601    |           
|Other assets                       |                                       |                | 503,304    |            |              |   | 143,196    |           
|                                   |                                       |                |            |            |              |  
|                                   | Total assets restricted as collateral |                | $          | 86,161,955 |              |   | $          | 75,708,434 | 
|                                   |                                       |                |            |            |              |  
|Related secured debt               |                                       | $              | 75,841,277 |            |              | $ | 69,933,446 |           
|                                   |                                       |                |            |            |              |  



|                                   |       |                |           |           |              |   |           |           | 
|---------------------------------- | ----- | -------------- | --------- | --------- | ------------ | - | --------- | --------- | 
|                                   |       | September 30,  |           |           | December 31, |  
|                                   |       | 2005           |           |           | 2004         |  
|                                   |       |                |           |           |              |  
|                                   |       | (In thousands) |          
|Mortgage loans held for sale       |       | $              | 4,627,450 |           |              | $ | 2,185,139 |          
|Mortgage loans held for investment |       |                | 2,147,542 |           |              |   | 1,672,893 |          
|Available for sale securities      |       |                | 1,223,180 |           |              |   | 1,114,531 |          
|Trading securities                 |       |                | 1,128,726 |           |              |   | 898,041   |          
|                                   |       |                |           |           |              |  
|                                   | Total |                | $         | 9,126,898 |              |   | $         | 5,870,604 | 
|                                   |       |                |           |           |              |  



|   |                    
|-- | -------------------
|9. | Deposit Liabilities



|                                       |  |                |           |  |              |   |           | 
|-------------------------------------- |  | -------------- | --------- |  | ------------ | - | --------- | 
|                                       |  | September 30,  |           |  | December 31, |  
|                                       |  | 2005           |           |  | 2004         |  
|                                       |  |                |           |  |              |  
|                                       |  | (In thousands) |          
|Non-interest bearing deposits          |  | $              | 1,942,378 |  |              | $ | 1,302,677 | 
|NOW and money market checking accounts |  |                | 384,197   |  |              |   | 353,609   | 
|Certificates of deposit                |  |                | 1,308,986 |  |              |   | 8,684     | 
|                                       |  |                |           |  |              |  
|Total                                  |  | $              | 3,635,561 |  |              | $ | 1,664,970 | 
|                                       |  |                |           |  |              |  





|    |                       
|--- | ----------------------
|10. | Derivative Instruments



13



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                                             |                                             |               |       |       |      |   |       |                                 |   |  |  |                                          | 
|------------------------------------------------------------ | ------------------------------------------- | ------------- | ----- | ----- | ---- | - | ----- | ------------------------------- | - |  |  | ---------------------------------------- | 
|Nine Months Ended September 30,                              |                                             | 2005          |       |       | 2004 |   |       | Income Statement Classification |  
|                                                             |                                             |               |       |       |      |   |       |                                 |  
|                                                             |                                             | (In millions) |       |       |     
|Fair value hedge ineffectiveness gain (loss):                |                                             |               |       |       |      |   |       |                                 |   |  |  |                                         
|                                                             | Mortgage servicing rights                   |               | $     | 34.7  |      |   | $     | 47.0                            |   |  |  | Servicing asset valuation and hedge gain | 
|                                                             | Mortgage loans held for sale                |               |       | (24.3 | )    |   |       | (6.6                            | ) |  |  | Gain on sale of mortgage loans           | 
|                                                             | Senior unsecured notes                      |               |       | (1.6  | )    |   |       |                                |   |  |  | Interest expense                         | 
|Cash flow hedges ineffectiveness gain (loss):                |                                             |               |       |       |      |   |       |                                 |   |  |  |                                         
|                                                             | Debt and future debt issuance               |               |       | 5.1   |      |   |       | (3.1                            | ) |  |  | Interest expense                         | 
|Derivatives not designated as accounting hedges gain (loss): |                                             |               |       |       |      |   |       |                                 |   |  |  |                                         
|                                                             | Mortgage loans held for sale and investment |               |       | 15.9  |      |   |       | (59.3                           | ) |  |  | Gain on sale of mortgage loans           | 
|                                                             | Foreign currency debt                       |               |       | (2.0  | )    |   |       | (4.6                            | ) |  |  | Interest expense                         | 
|                                                             | Mortgage servicing rights                   |               |       | (40.4 | )    |   |       | 37.8                            |   |  |  | Servicing asset valuation and hedge gain | 
|                                                             | Mortgage-related securities                 |               |       | 6.2   |      |   |       | (59.9                           | ) |  |  | Gain (loss)on investment securities      | 
|                                                             | Other                                       |               |       | (6.6  | )    |   |       | (9.8                            | ) |  |  | Interest expense                         | 
|                                                             |                                             |               |       |       |      |   |       |                                 |  
|Total                                                        |                                             | $             | (13.0 | )     |      | $ | (58.5 | )                               |   |  |  |                                         
|                                                             |                                             |               |       |       |      |   |       |                                 |  





|    |                           
|--- | --------------------------
|11. | Related Party Transactions











14



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












|    |                    
|--- | -------------------
|12. | Segment Information



|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |  |              |   |            |              |  |   |             |   |  |   |             |  
|--------------------------------------- |  | -------------- | ---------- | ----------- | ------- | - | ---------- | ------- |  | ------------- | --------- | - |  | --------- | --------- |  | ------------ | - | ---------- | ------------ |  | - | ----------- | - |  | - | ----------- | -
|                                        |  |                |            | Residential |         |   | Business   |         |  | International |           |   |  |           |           |  |             
|                                        |  | GMAC           |            |             | Capital |   |            | Capital |  |               | Business  |   |  | Corporate |           |  |              |   |           
|Three Months Ended September 30,        |  | Residential    |            |             | Group   |   |            | Group   |  |               | Group     |   |  | and other |           |  | Eliminations |   |            | Consolidated | 
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |  |              |   |            |              | 
|                                        |  | (In thousands) |           
|2005                                    |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |  |              |   |            |              |  |   |             |   |  |   |             |  
|Net interest income (expense)           |  | $              | 74,702     |             |         | $ | 291,638    |         |  | $             | 37,900    |   |  | $         | 44,467    |  |              | $ | (6,771     | )            |  | $ |            |   |  | $ | 441,936     |  
|Provision for loan losses               |  |                | (2,380     | )           |         |   | (156,438   | )       |  |               | (5,306    | ) |  |           | 240       |  |              |   | 14         |              |  |   |            |   |  |   | (163,870    | )
|Other revenue                           |  |                | 412,580    |             |         |   | 234,022    |         |  |               | 71,385    |   |  |           | 44,084    |  |              |   | 135,260    |              |  |   | (1,775      | ) |  |   | 895,556     |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |  |              |   |            |              | 
|Total net revenue                       |  |                | 484,902    |             |         |   | 369,222    |         |  |               | 103,979   |   |  |           | 88,791    |  |              |   | 128,503    |              |  |   | (1,775      | ) |  |   | 1,173,622   |  
|Operating expenses                      |  |                | 290,772    |             |         |   | 198,470    |         |  |               | 18,119    |   |  |           | 62,911    |  |              |   | 132,048    |              |  |   |            |   |  |   | 702,320     |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |  |              |   |            |              | 
|Income (loss) before income tax expense |  |                | 194,130    |             |         |   | 170,752    |         |  |               | 85,860    |   |  |           | 25,880    |  |              |   | (3,545     | )            |  |   | (1,775      | ) |  |   | 471,302     |  
|Income tax expense (benefit)            |  |                | 80,787     |             |         |   | 71,780     |         |  |               | 35,613    |   |  |           | 8,977     |  |              |   | (5,236     | )            |  |   | (724        | ) |  |   | 191,197     |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |  |              |   |            |              | 
|Net income                              |  | $              | 113,343    |             |         | $ | 98,972     |         |  | $             | 50,247    |   |  | $         | 16,903    |  |              | $ | 1,691      |              |  | $ | (1,051      | ) |  | $ | 280,105     |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |  |              |   |            |              | 
|Total assets                            |  | $              | 20,427,529 |             |         | $ | 67,463,437 |         |  | $             | 5,385,478 |   |  | $         | 8,863,585 |  |              | $ | 18,485,868 |              |  | $ | (16,007,192 | ) |  | $ | 104,618,705 |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |  |              |   |            |              | 

15



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   |  |   |   |  |  |   |            |  
|--------------------------------------- |  | -------------- | ---------- | ----------- | ------- | - | ---------- | ------- |  | ------------- | --------- | - |  | --------- | --------- | - | ------------ | - | ------------ | - |  | - | - |  |  | - | ---------- | -
|                                        |  |                |            | Residential |         |   | Business   |         |  | International |           |   |  |           |           |   |             
|                                        |  | GMAC           |            |             | Capital |   |            | Capital |  |               | Business  |   |  | Corporate |           |   |              |   |             
|Three Months Ended September 30,        |  | Residential    |            |             | Group   |   |            | Group   |  |               | Group     |   |  | and other |           |   | Eliminations |   | Consolidated |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |  
|                                        |  | (In thousands) |           
|2004                                    |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   |  |   |   |  |  |   |            |  
|Net interest income (expense)           |  | $              | 78,837     |             |         | $ | 508,511    |         |  | $             | 34,116    |   |  | $         | 36,103    |   |              | $ | (5,535       | ) |  | $ |  |  |  | $ | 652,032    |  
|Provision for loan losses               |  |                | 2,501      |             |         |   | (234,141   | )       |  |               | (21,098   | ) |  |           | (940      | ) |              |   | 32           |   |  |   |  |  |  |   | (253,646   | )
|Other revenue                           |  |                | 218,968    |             |         |   | 79,025     |         |  |               | 45,197    |   |  |           | 20,333    |   |              |   | 143,027      |   |  |   |  |  |  |   | 506,550    |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 
|Total net revenue                       |  |                | 300,306    |             |         |   | 353,395    |         |  |               | 58,215    |   |  |           | 55,496    |   |              |   | 137,524      |   |  |   |  |  |  |   | 904,936    |  
|Operating expenses                      |  |                | 162,342    |             |         |   | 238,218    |         |  |               | 3,143     |   |  |           | 46,024    |   |              |   | 123,164      |   |  |   |  |  |  |   | 572,891    |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 
|Income (loss) before income tax expense |  |                | 137,964    |             |         |   | 115,177    |         |  |               | 55,072    |   |  |           | 9,472     |   |              |   | 14,360       |   |  |   |  |  |  |   | 332,045    |  
|Income tax expense (benefit)            |  |                | 40,300     |             |         |   | 44,076     |         |  |               | 21,065    |   |  |           | 3,476     |   |              |   | 20,392       |   |  |   |  |  |  |   | 129,309    |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 
|Net income (loss)                       |  | $              | 97,664     |             |         | $ | 71,101     |         |  | $             | 34,007    |   |  | $         | 5,996     |   |              | $ | (6,032       | ) |  | $ |  |  |  | $ | 202,736    |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 
|Total assets                            |  | $              | 15,644,115 |             |         | $ | 66,104,777 |         |  | $             | 4,203,308 |   |  | $         | 7,608,547 |   |              | $ | 376,282      |   |  | $ |  |  |  | $ | 93,937,029 |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 

|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              |  |   |             |   |  |   |             |  
|-------------------------------- |  | -------------- | ---------- | ----------- | ------- | - | ---------- | ------- |  | ------------- | --------- | - |  | --------- | --------- | - | ------------ | - | ---------- | ------------ |  | - | ----------- | - |  | - | ----------- | -
|                                 |  |                |            | Residential |         |   | Business   |         |  | International |           |   |  |           |           |   |             
|Nine Months Ended                |  | GMAC           |            |             | Capital |   |            | Capital |  |               | Business  |   |  | Corporate |           |   |              |   |           
|September 30,                    |  | Residential    |            |             | Group   |   |            | Group   |  |               | Group     |   |  | and other |           |   | Eliminations |   |            | Consolidated | 
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 
|                                 |  | (In thousands) |           
|2005                             |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              |  |   |             |   |  |   |             |  
|Net interest income              |  | $              | 218,443    |             |         | $ | 1,042,903  |         |  | $             | 110,871   |   |  | $         | 121,925   |   |              | $ | 3,560      |              |  | $ |            |   |  | $ | 1,497,702   |  
|Provision for loan losses        |  |                | 519        |             |         |   | (436,876   | )       |  |               | (24,969   | ) |  |           | (504      | ) |              |   | 34         |              |  |   |            |   |  |   | (461,796    | )
|Other revenue                    |  |                | 991,652    |             |         |   | 579,843    |         |  |               | 187,684   |   |  |           | 188,164   |   |              |   | 418,130    |              |  |   | (1,775      | ) |  |   | 2,363,698   |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 
|Total net revenue                |  |                | 1,210,614  |             |         |   | 1,185,870  |         |  |               | 273,586   |   |  |           | 309,585   |   |              |   | 421,724    |              |  |   | (1,775      | ) |  |   | 3,399,604   |  
|Operating expenses               |  |                | 720,360    |             |         |   | 613,424    |         |  |               | 56,158    |   |  |           | 182,022   |   |              |   | 368,441    |              |  |   |            |   |  |   | 1,940,405   |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 
|Income before income tax expense |  |                | 490,254    |             |         |   | 572,446    |         |  |               | 217,428   |   |  |           | 127,563   |   |              |   | 53,283     |              |  |   | (1,775      | ) |  |   | 1,459,199   |  
|Income tax expense               |  |                | 204,886    |             |         |   | 224,442    |         |  |               | 85,253    |   |  |           | 39,491    |   |              |   | 3,525      |              |  |   | (724        | ) |  |   | 556,873     |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 
|Net income                       |  | $              | 285,368    |             |         | $ | 348,004    |         |  | $             | 132,175   |   |  | $         | 88,072    |   |              | $ | 49,758     |              |  | $ | (1,051      | ) |  | $ | 902,326     |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 
|Total assets                     |  | $              | 20,427,529 |             |         | $ | 67,463,437 |         |  | $             | 5,385,478 |   |  | $         | 8,863,585 |   |              | $ | 18,485,868 |              |  | $ | (16,007,192 |   |  | $ | 104,618,705 |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 

|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   |  |   |   |  |  |   |            |  
|--------------------------------------- |  | -------------- | ---------- | ----------- | ------- | - | ---------- | ------- |  | ------------- | --------- | - |  | --------- | --------- | - | ------------ | - | ------------ | - |  | - | - |  |  | - | ---------- | -
|                                        |  |                |            | Residential |         |   | Business   |         |  | International |           |   |  |           |           |   |             
|Nine Months Ended                       |  | GMAC           |            |             | Capital |   |            | Capital |  |               | Business  |   |  | Corporate |           |   |              |   |             
|September 30,                           |  | Residential    |            |             | Group   |   |            | Group   |  |               | Group     |   |  | and other |           |   | Eliminations |   | Consolidated |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |  
|                                        |  | (In thousands) |           
|2004                                    |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   |  |   |   |  |  |   |            |  
|Net interest income (expense)           |  | $              | 243,995    |             |         | $ | 1,552,789  |         |  | $             | 87,259    |   |  | $         | 82,719    |   |              | $ | (16,626      | ) |  | $ |  |  |  | $ | 1,950,136  |  
|Provision for loan losses               |  |                | (208       | )           |         |   | (603,905   | )       |  |               | (26,457   | ) |  |           | (2,714    | ) |              |   | (214         | ) |  |   |  |  |  |   | (633,498   | )
|Other revenue                           |  |                | 657,403    |             |         |   | 326,163    |         |  |               | 137,260   |   |  |           | 135,003   |   |              |   | 377,234      |   |  |   |  |  |  |   | 1,633,063  |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 
|Total net revenue                       |  |                | 901,190    |             |         |   | 1,275,047  |         |  |               | 198,062   |   |  |           | 215,008   |   |              |   | 360,394      |   |  |   |  |  |  |   | 2,949,701  |  
|Operating expenses                      |  |                | 542,072    |             |         |   | 653,018    |         |  |               | 31,484    |   |  |           | 138,157   |   |              |   | 376,294      |   |  |   |  |  |  |   | 1,741,025  |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 
|Income (loss) before income tax expense |  |                | 359,118    |             |         |   | 622,029    |         |  |               | 166,578   |   |  |           | 76,851    |   |              |   | (15,900      | ) |  |   |  |  |  |   | 1,208,676  |  
|Income tax expense (benefit)            |  |                | 150,208    |             |         |   | 237,922    |         |  |               | 63,716    |   |  |           | 25,937    |   |              |   | 20,612       |   |  |   |  |  |  |   | 498,395    |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 
|Net income (loss)                       |  | $              | 208,910    |             |         | $ | 384,107    |         |  | $             | 102,862   |   |  | $         | 50,914    |   |              | $ | (36,512      | ) |  | $ |  |  |  | $ | 710,281    |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 
|Total assets                            |  | $              | 15,644,115 |             |         | $ | 66,104,777 |         |  | $             | 4,203,308 |   |  | $         | 7,608,547 |   |              | $ | 376,282      |   |  | $ |  |  |  | $ | 93,937,029 |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 

16



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                   
|--- | ------------------
|13. | Regulatory Matters





|                          |  |          |     |            |             |  |      |               |  |  |              |   |  |  |      |  
|------------------------- |  | -------- | --- | ---------- | ----------- |  | ---- | ------------- |  |  | ------------ | - |  |  | ---- | -
|                          |  |          |     | Minimum to |             |  |      |               | 
|                          |  | Minimum  |     |            | be well-    |  |      | September 30, |  |  | December 31, |  
|                          |  | required |     |            | capitalized |  |      | 2005          |  |  | 2004         |  
|                          |  |          |     |            |             |  |      |               |  |  |              |  
|Tier 1 leverage           |  |          | 4.0 | %          |             |  | 5.0  | %             |  |  | 8.4          | % |  |  | 11.9 | %
|Tier 1 risk-based capital |  |          | 4.0 |            |             |  | 6.0  |               |  |  | 13.8         |   |  |  | 17.3 |  
|Total risk-based capital  |  |          | 8.0 |            |             |  | 10.0 |               |  |  | 13.9         |   |  |  | 17.5 |  



|    |                 
|--- | ----------------
|14. | Subsequent Event





|    |                                   
|--- | ----------------------------------
|15. | Supplemental Financial Information





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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING BALANCE SHEET


September 30, 2005


|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |             |             |             |   |             |            |            | 
|------------------------------------------ | -------------------------------------------------- | ---------------------- | ---------- | --------- | ------------ | - | ------------- | ------------ | ---------- | - | ------------ | ---------- | ---------- | ------------ | ----------- | ----------- | ----------- | - | ----------- | ---------- | ---------- | 
|                                           |                                                    |                        |            | Guarantor |              |   | Non-Guarantor |              |            |   |              |           
|                                           |                                                    | Parent                 |            |           | Subsidiaries |   |               | Subsidiaries |            |   | Eliminations |            |            | Consolidated |            
|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |            
|                                           |                                                    | (Dollars in thousands) |           
|ASSETS                                    
|Cash and cash equivalents                  |                                                    | $                      | 2,043,274  |           |              | $ | 208,807       |              |            | $ | 631,010      |            |            | $            | (69,420     | )           |             | $ | 2,813,671   |           
|Mortgage loans held for sale               |                                                    |                        |           |           |              |   | 6,549,029     |              |            |   | 10,995,734   |            |            |              | 3,970       |             |             |   | 17,548,733  |           
|Trading securities                         |                                                    |                        |           |           |              |   | 1,340,277     |              |            |   | 1,830,086    |            |            |              | (55,524     | )           |             |   | 3,114,839   |           
|Available for sale securities              |                                                    |                        |           |           |              |   | 2,029,994     |              |            |   | 114,263      |            |            |              | (800,289    | )           |             |   | 1,343,968   |           
|Mortgage loans held for investment, net    |                                                    |                        |           |           |              |   | 2,735,529     |              |            |   | 55,670,059   |            |            |              | (89,365     | )           |             |   | 58,316,223  |           
|Lending receivables, net                   |                                                    |                        |           |           |              |   | 2,315,368     |              |            |   | 9,000,287    |            |            |              | 1,804       |             |             |   | 11,317,459  |           
|Mortgage servicing rights, net             |                                                    |                        |           |           |              |   | 3,759,158     |              |            |   | 3,483        |            |            |              |            |             |             |   | 3,762,641   |           
|Accounts receivable                        |                                                    |                        | 3,609      |           |              |   | 904,884       |              |            |   | 1,162,428    |            |            |              | (191,927    | )           |             |   | 1,878,994   |           
|Investments in real estate and other       |                                                    |                        |           |           |              |   | 248,574       |              |            |   | 1,278,368    |            |            |              |            |             |             |   | 1,526,942   |           
|Goodwill                                   |                                                    |                        |           |           |              |   | 218,483       |              |            |   | 231,898      |            |            |              |            |             |             |   | 450,381     |           
|Other assets                               |                                                    |                        | 151,988    |           |              |   | 5,636,585     |              |            |   | 1,687,732    |            |            |              | (4,931,451  | )           |             |   | 2,544,854   |           
|Investment in and loans to subsidiaries    |                                                    |                        | 15,950,716 |           |              |   | 3,628,989     |              |            |   |             |            |            |              | (19,579,705 | )           |             |   |            |           
|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |            
|Total assets                               |                                                    | $                      | 18,149,587 |           |              | $ | 29,575,677    |              |            | $ | 82,605,348   |            |            | $            | (25,711,907 | )           |             | $ | 104,618,705 |           
|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |            
|                                          
|LIABILITIES                               
|Borrowings:                                |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |             |             |             |   |             |           
|                                           | Affiliate borrowings                               |                        | $          | 5,000,000 |              |   | $             | 10,619,000   |            |   | $            | 1,655,072  |            |              | $           | (10,619,000 | )           |   | $           | 6,655,072  |           
|                                           | Collateralized borrowings in securitization trusts |                        |            |          |              |   |               |             |            |   |              | 49,605,877 |            |              |             | (55,524     | )           |   |             | 49,550,353 |           
|                                           | Other borrowings                                   |                        |            | 5,677,285 |              |   |               | 10,246,175   |            |   |              | 18,474,548 |            |              |             | (990,405    | )           |   |             | 33,407,603 |           
|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |            
|                                           |                                                    | Total borrowings       |            |           | 10,677,285   |   |               |              | 20,865,175 |   |              |            | 69,735,497 |              |             |             | (11,664,929 | ) |             |            | 89,613,028 | 
|Deposit liabilities                        |                                                    |                        |           |           |              |   |              |              |            |   | 3,704,981    |            |            |              | (69,420     | )           |             |   | 3,635,561   |           
|Other liabilities                          |                                                    |                        | 135,502    |           |              |   | 3,378,786     |              |            |   | 5,545,684    |            |            |              | (5,026,656  | )           |             |   | 4,033,316   |           
|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |            
|Total liabilities                          |                                                    |                        | 10,812,787 |           |              |   | 24,243,961    |              |            |   | 78,986,162   |            |            |              | (16,761,005 | )           |             |   | 97,281,905  |           
|                                          
|STOCKHOLDERS EQUITY                      
|Common stock and paid-in capital           |                                                    |                        | 3,350,459  |           |              |   | 1,350,460     |              |            |   | 1,284,724    |            |            |              | (2,635,184  | )           |             |   | 3,350,459   |           
|Retained earnings                          |                                                    |                        | 3,862,287  |           |              |   | 3,857,202     |              |            |   | 2,193,231    |            |            |              | (6,050,433  | )           |             |   | 3,862,287   |           
|Accumulated other comprehensive income     |                                                    |                        | 124,054    |           |              |   | 124,054       |              |            |   | 141,231      |            |            |              | (265,285    | )           |             |   | 124,054     |           
|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |            
|Total stockholders equity                 |                                                    |                        | 7,336,800  |           |              |   | 5,331,716     |              |            |   | 3,619,186    |            |            |              | (8,950,902  | )           |             |   | 7,336,800   |           
|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |            
|Total liabilities and stockholders equity |                                                    | $                      | 18,149,587 |           |              | $ | 29,575,677    |              |            | $ | 82,605,348   |            |            | $            | (25,711,907 | )           |             | $ | 104,618,705 |           
|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |            

18



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF INCOME


Three Months Ended September 30, 2005


|                                                            |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |          |   |  |   |           |  
|----------------------------------------------------------- |  | ---------------------- | ------- | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | - |  | ------------ | -------- | - |  | - | --------- | -
|                                                            |  |                        |         | Guarantor |              |   | Non-Guarantor |              |  |   |              |  
|                                                            |  | Parent                 |         |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |   |  | Consolidated |         
|                                                            |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|                                                            |  | (Dollars in thousands) |        
|Revenue                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |          |   |  |   |           |  
|Interest income                                             |  | $                      | 166,356 |           |              | $ | 331,387       |              |  | $ | 1,140,994    |   |  | $            | (159,379 | ) |  | $ | 1,479,358 |  
|Interest expense                                            |  |                        | 164,512 |           |              |   | 238,510       |              |  |   | 809,447      |   |  |              | (175,047 | ) |  |   | 1,037,422 |  
|                                                            |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|Net interest income                                         |  |                        | 1,844   |           |              |   | 92,877        |              |  |   | 331,547      |   |  |              | 15,668   |   |  |   | 441,936   |  
|Provision for loan losses                                   |  |                        |        |           |              |   | 31,477        |              |  |   | 140,979      |   |  |              | (8,586   | ) |  |   | 163,870   |  
|                                                            |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|Net interest income after provision for loan losses         |  |                        | 1,844   |           |              |   | 61,400        |              |  |   | 190,568      |   |  |              | 24,254   |   |  |   | 278,066   |  
|Gain on sale of mortgage loans, net                         |  |                        |        |           |              |   | 278,997       |              |  |   | 45,193       |   |  |              | (17,372  | ) |  |   | 306,818   |  
|Servicing fees                                              |  |                        |        |           |              |   | 357,337       |              |  |   | 3,133        |   |  |              | 485      |   |  |   | 360,955   |  
|Amortization and impairment of servicing rights             |  |                        |        |           |              |   | (67,943       | )            |  |   | (1,012       | ) |  |              |         |   |  |   | (68,955   | )
|Servicing asset valuation and hedge loss, net               |  |                        |        |           |              |   | (1,444        | )            |  |   | (1           | ) |  |              |         |   |  |   | (1,445    | )
|                                                            |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|Net servicing fees                                          |  |                        |        |           |              |   | 287,950       |              |  |   | 2,120        |   |  |              | 485      |   |  |   | 290,555   |  
|Gain (loss) on investment securities, net                   |  |                        |        |           |              |   | (6,270        | )            |  |   | 29,902       |   |  |              |         |   |  |   | 23,632    |  
|Real estate related revenues                                |  |                        |        |           |              |   | 32,779        |              |  |   | 169,056      |   |  |              |         |   |  |   | 201,835   |  
|Other income                                                |  |                        |        |           |              |   | 42,258        |              |  |   | 71,087       |   |  |              | (40,629  | ) |  |   | 72,716    |  
|                                                            |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|Total net revenue                                           |  |                        | 1,844   |           |              |   | 697,114       |              |  |   | 507,926      |   |  |              | (33,262  | ) |  |   | 1,173,622 |  
|Expenses                                                    |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |          |   |  |   |           |  
|Compensation and benefits                                   |  |                        |        |           |              |   | 234,588       |              |  |   | 152,432      |   |  |              |         |   |  |   | 387,020   |  
|Professional fees                                           |  |                        |        |           |              |   | 36,567        |              |  |   | 10,763       |   |  |              |         |   |  |   | 47,330    |  
|Data processing and telecommunications                      |  |                        |        |           |              |   | 32,381        |              |  |   | 18,677       |   |  |              |         |   |  |   | 51,058    |  
|Advertising                                                 |  |                        |        |           |              |   | 30,454        |              |  |   | 7,697        |   |  |              |         |   |  |   | 38,151    |  
|Occupancy                                                   |  |                        |        |           |              |   | 20,220        |              |  |   | 11,855       |   |  |              |         |   |  |   | 32,075    |  
|Other                                                       |  |                        | 2,029   |           |              |   | 111,183       |              |  |   | 62,472       |   |  |              | (28,998  | ) |  |   | 146,686   |  
|                                                            |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|Total expenses                                              |  |                        | 2,029   |           |              |   | 465,393       |              |  |   | 263,896      |   |  |              | (28,998  | ) |  |   | 702,320   |  
|                                                            |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|Income (loss) before income tax expense                     |  |                        | (185    | )         |              |   | 231,721       |              |  |   | 244,030      |   |  |              | (4,264   | ) |  |   | 471,302   |  
|Income tax expense (benefit)                                |  |                        | (70     | )         |              |   | 98,015        |              |  |   | 91,269       |   |  |              | 1,983    |   |  |   | 191,197   |  
|                                                            |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|Income (loss) before equity in net earnings of subsidiaries |  |                        | (115    | )         |              |   | 133,706       |              |  |   | 152,761      |   |  |              | (6,247   | ) |  |   | 280,105   |  
|Equity in net earnings of subsidiaries                      |  |                        | 280,220 |           |              |   | 146,514       |              |  |   |             |   |  |              | (426,734 | ) |  |   |          |  
|                                                            |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|Net income                                                  |  | $                      | 280,105 |           |              | $ | 280,220       |              |  | $ | 152,761      |   |  | $            | (432,981 | ) |  | $ | 280,105   |  
|                                                            |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         

19



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF INCOME


Three Months Ended September 30, 2004


|                                                     |  |                        |   |           |              |   |               |              |  |   |              |   |  |              |          |   |  |   |           |  
|---------------------------------------------------- |  | ---------------------- | - | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | - |  | ------------ | -------- | - |  | - | --------- | -
|                                                     |  |                        |   | Guarantor |              |   | Non-Guarantor |              |  |   |              |  
|                                                     |  | Parent                 |   |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |   |  | Consolidated |         
|                                                     |  |                        |   |           |              |   |               |              |  |   |              |   |  |              |         
|                                                     |  | (Dollars in thousands) |  
|Revenue                                              |  |                        |   |           |              |   |               |              |  |   |              |   |  |              |          |   |  |   |           |  
|Interest income                                      |  | $                      |  |           |              | $ | 187,126       |              |  | $ | 1,081,812    |   |  | $            | (5,921   | ) |  | $ | 1,263,017 |  
|Interest expense                                     |  |                        |  |           |              |   | 80,157        |              |  |   | 540,025      |   |  |              | (9,197   | ) |  |   | 610,985   |  
|                                                     |  |                        |   |           |              |   |               |              |  |   |              |   |  |              |         
|Net interest income                                  |  |                        |  |           |              |   | 106,969       |              |  |   | 541,787      |   |  |              | 3,276    |   |  |   | 652,032   |  
|Provision for loan losses                            |  |                        |  |           |              |   | 63,377        |              |  |   | 190,269      |   |  |              |         |   |  |   | 253,646   |  
|                                                     |  |                        |   |           |              |   |               |              |  |   |              |   |  |              |         
|Net interest income after provision for loan losses  |  |                        |  |           |              |   | 43,592        |              |  |   | 351,518      |   |  |              | 3,276    |   |  |   | 398,386   |  
|Gain on sale of mortgage loans, net                  |  |                        |  |           |              |   | 53,331        |              |  |   | 3,813        |   |  |              | 2,180    |   |  |   | 59,324    |  
|Servicing fees                                       |  |                        |  |           |              |   | 329,916       |              |  |   | (7,718       | ) |  |              | (349     | ) |  |   | 321,849   |  
|Amortization and impairment of servicing rights      |  |                        |  |           |              |   | (342,120      | )            |  |   | 192          |   |  |              |         |   |  |   | (341,928  | )
|Servicing asset valuation and hedge gain, net        |  |                        |  |           |              |   | 194,585       |              |  |   | 30,836       |   |  |              |         |   |  |   | 225,421   |  
|                                                     |  |                        |   |           |              |   |               |              |  |   |              |   |  |              |         
|Net servicing fees                                   |  |                        |  |           |              |   | 182,381       |              |  |   | 23,310       |   |  |              | (349     | ) |  |   | 205,342   |  
|Gain (loss) on investment securities, net            |  |                        |  |           |              |   | 11,347        |              |  |   | (51,112      | ) |  |              |         |   |  |   | (39,765   | )
|Real estate related revenues                         |  |                        |  |           |              |   | 21,185        |              |  |   | 165,080      |   |  |              |         |   |  |   | 186,265   |  
|Other income                                         |  |                        |  |           |              |   | 34,297        |              |  |   | 83,183       |   |  |              | (22,096  | ) |  |   | 95,384    |  
|                                                     |  |                        |   |           |              |   |               |              |  |   |              |   |  |              |         
|Total net revenue                                    |  |                        |  |           |              |   | 346,133       |              |  |   | 575,792      |   |  |              | (16,989  | ) |  |   | 904,936   |  
|Expenses                                             |  |                        |   |           |              |   |               |              |  |   |              |   |  |              |          |   |  |   |           |  
|Compensation and benefits                            |  |                        |  |           |              |   | 134,679       |              |  |   | 143,984      |   |  |              |         |   |  |   | 278,663   |  
|Professional fees                                    |  |                        |  |           |              |   | 46,464        |              |  |   | 17,498       |   |  |              |         |   |  |   | 63,962    |  
|Data processing and telecommunications               |  |                        |  |           |              |   | 35,203        |              |  |   | 11,075       |   |  |              |         |   |  |   | 46,278    |  
|Advertising                                          |  |                        |  |           |              |   | 30,365        |              |  |   | 6,448        |   |  |              |         |   |  |   | 36,813    |  
|Occupancy                                            |  |                        |  |           |              |   | 16,917        |              |  |   | 9,019        |   |  |              |         |   |  |   | 25,936    |  
|Other                                                |  |                        |  |           |              |   | 62,760        |              |  |   | 75,852       |   |  |              | (17,373  | ) |  |   | 121,239   |  
|                                                     |  |                        |   |           |              |   |               |              |  |   |              |   |  |              |         
|Total expenses                                       |  |                        |  |           |              |   | 326,388       |              |  |   | 263,876      |   |  |              | (17,373  | ) |  |   | 572,891   |  
|                                                     |  |                        |   |           |              |   |               |              |  |   |              |   |  |              |         
|Income before income tax expense                     |  |                        |  |           |              |   | 19,745        |              |  |   | 311,916      |   |  |              | 384      |   |  |   | 332,045   |  
|Income tax expense                                   |  |                        |  |           |              |   | 24,205        |              |  |   | 105,003      |   |  |              | 101      |   |  |   | 129,309   |  
|                                                     |  |                        |   |           |              |   |               |              |  |   |              |   |  |              |         
|Income before equity in net earnings of subsidiaries |  |                        |  |           |              |   | (4,460        | )            |  |   | 206,913      |   |  |              | 283      |   |  |   | 202,736   |  
|Equity in net earnings of subsidiaries               |  |                        |  |           |              |   | 207,196       |              |  |   |             |   |  |              | (207,196 | ) |  |   |          |  
|                                                     |  |                        |   |           |              |   |               |              |  |   |              |   |  |              |         
|Net income                                           |  | $                      |  |           |              | $ | 202,736       |              |  | $ | 206,913      |   |  | $            | (206,913 | ) |  | $ | 202,736   |  
|                                                     |  |                        |   |           |              |   |               |              |  |   |              |   |  |              |         

20



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF INCOME


Nine Months Ended September 30, 2005


|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |           |  
|---------------------------------------------------- |  | ---------------------- | ------- | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | - |  | ------------ | ---------- | - |  | - | --------- | -
|                                                     |  |                        |         | Guarantor |              |   | Non-Guarantor |              |  |   |              |  
|                                                     |  | Parent                 |         |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |   |  | Consolidated |           
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|                                                     |  | (Dollars in thousands) |        
|Revenue                                              |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |           |  
|Interest income                                      |  | $                      | 233,894 |           |              | $ | 802,205       |              |  | $ | 3,364,280    |   |  | $            | (249,284   | ) |  | $ | 4,151,095 |  
|Interest expense                                     |  |                        | 221,978 |           |              |   | 528,851       |              |  |   | 2,168,564    |   |  |              | (266,000   | ) |  |   | 2,653,393 |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|Net interest income                                  |  |                        | 11,916  |           |              |   | 273,354       |              |  |   | 1,195,716    |   |  |              | 16,716     |   |  |   | 1,497,702 |  
|Provision for loan losses                            |  |                        |        |           |              |   | 119,924       |              |  |   | 350,458      |   |  |              | (8,586     | ) |  |   | 461,796   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|Net interest income after provision for loan losses  |  |                        | 11,916  |           |              |   | 153,430       |              |  |   | 845,258      |   |  |              | 25,302     |   |  |   | 1,035,906 |  
|Gain on sale of mortgage loans, net                  |  |                        |        |           |              |   | 529,401       |              |  |   | 273,409      |   |  |              | (15,745    | ) |  |   | 787,065   |  
|Servicing fees                                       |  |                        |        |           |              |   | 1,058,990     |              |  |   | (10,339      | ) |  |              | (1,673     | ) |  |   | 1,046,978 |  
|Amortization and impairment of servicing rights      |  |                        |        |           |              |   | (515,218      | )            |  |   | (446         | ) |  |              |           |   |  |   | (515,664  | )
|Servicing asset valuation and hedge gain (loss), net |  |                        |        |           |              |   | 47,992        |              |  |   | (1           | ) |  |              |           |   |  |   | 47,991    |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|Net servicing fees                                   |  |                        |        |           |              |   | 591,764       |              |  |   | (10,786      | ) |  |              | (1,673     | ) |  |   | 579,305   |  
|Gain (loss) on investment securities, net            |  |                        | (1,553  | )         |              |   | 138,181       |              |  |   | 106,419      |   |  |              |           |   |  |   | 243,047   |  
|Real estate related revenues                         |  |                        |        |           |              |   | 85,422        |              |  |   | 441,472      |   |  |              |           |   |  |   | 526,894   |  
|Other income                                         |  |                        |        |           |              |   | 132,447       |              |  |   | 186,930      |   |  |              | (91,990    | ) |  |   | 227,387   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|Total net revenue                                    |  |                        | 10,363  |           |              |   | 1,630,645     |              |  |   | 1,842,702    |   |  |              | (84,106    | ) |  |   | 3,399,604 |  
|Expenses                                             |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |           |  
|Compensation and benefits                            |  |                        |        |           |              |   | 661,094       |              |  |   | 410,732      |   |  |              |           |   |  |   | 1,071,826 |  
|Professional fees                                    |  |                        | 15      |           |              |   | 111,037       |              |  |   | 32,661       |   |  |              |           |   |  |   | 143,713   |  
|Data processing and telecommunications               |  |                        |        |           |              |   | 101,708       |              |  |   | 46,423       |   |  |              |           |   |  |   | 148,131   |  
|Advertising                                          |  |                        |        |           |              |   | 98,875        |              |  |   | 25,194       |   |  |              |           |   |  |   | 124,069   |  
|Occupancy                                            |  |                        |        |           |              |   | 57,982        |              |  |   | 34,497       |   |  |              |           |   |  |   | 92,479    |  
|Other                                                |  |                        | 2,113   |           |              |   | 272,827       |              |  |   | 181,950      |   |  |              | (96,703    | ) |  |   | 360,187   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|Total expenses                                       |  |                        | 2,128   |           |              |   | 1,303,523     |              |  |   | 731,457      |   |  |              | (96,703    | ) |  |   | 1,940,405 |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|Income before income tax expense                     |  |                        | 8,235   |           |              |   | 327,122       |              |  |   | 1,111,245    |   |  |              | 12,597     |   |  |   | 1,459,199 |  
|Income tax expense                                   |  |                        | 3,150   |           |              |   | 163,369       |              |  |   | 381,955      |   |  |              | 8,399      |   |  |   | 556,873   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|Income before equity in net earnings of subsidiaries |  |                        | 5,085   |           |              |   | 163,753       |              |  |   | 729,290      |   |  |              | 4,198      |   |  |   | 902,326   |  
|Equity in net earnings of subsidiaries               |  |                        | 897,241 |           |              |   | 733,488       |              |  |   |             |   |  |              | (1,630,729 | ) |  |   |          |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|Net income                                           |  | $                      | 902,326 |           |              | $ | 897,241       |              |  | $ | 729,290      |   |  | $            | (1,626,531 | ) |  | $ | 902,326   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           

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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF INCOME


Nine Months Ended September 30, 2004


|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |          |   |  |   |           |  
|----------------------------------------------------------- |  | ---------------------- | - | ------------ |  | - | ------------- | - |  | ------------ | --------- | - | ------------ | - | -------- | - |  | - | --------- | -
|                                                            |  |                        |   | Guarantor    |  |   | Non-Guarantor |   |  |              |           |  
|                                                            |  | Parent                 |   | Subsidiaries |  |   | Subsidiaries  |   |  | Eliminations |           |   | Consolidated |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |  
|                                                            |  | (Dollars in thousands) |  
|Revenue                                                     |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |          |   |  |   |           |  
|Interest income                                             |  | $                      |  |              |  | $ | 558,943       |   |  | $            | 3,079,665 |   |              | $ | (16,921  | ) |  | $ | 3,621,687 |  
|Interest expense                                            |  |                        |  |              |  |   | 250,866       |   |  |              | 1,442,349 |   |              |   | (21,664  | ) |  |   | 1,671,551 |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Net interest income                                         |  |                        |  |              |  |   | 308,077       |   |  |              | 1,637,316 |   |              |   | 4,743    |   |  |   | 1,950,136 |  
|Provision for loan losses                                   |  |                        |  |              |  |   | 224,722       |   |  |              | 408,776   |   |              |   |         |   |  |   | 633,498   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Net interest income after provision for loan losses         |  |                        |  |              |  |   | 83,355        |   |  |              | 1,228,540 |   |              |   | 4,743    |   |  |   | 1,316,638 |  
|Gain on sale of mortgage loans, net                         |  |                        |  |              |  |   | 308,174       |   |  |              | 175,213   |   |              |   | (3,628   | ) |  |   | 479,759   |  
|Servicing fees                                              |  |                        |  |              |  |   | 963,984       |   |  |              | (24,150   | ) |              |   | (1,816   | ) |  |   | 938,018   |  
|Amortization and impairment of servicing rights             |  |                        |  |              |  |   | (793,858      | ) |  |              | 383       |   |              |   |         |   |  |   | (793,475  | )
|Servicing asset valuation and hedge gain, net               |  |                        |  |              |  |   | 240,099       |   |  |              |          |   |              |   |         |   |  |   | 240,099   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Net servicing fees                                          |  |                        |  |              |  |   | 410,225       |   |  |              | (23,767   | ) |              |   | (1,816   | ) |  |   | 384,642   |  
|Gain on investment securities, net                          |  |                        |  |              |  |   | 51,551        |   |  |              | (23,034   | ) |              |   |         |   |  |   | 28,517    |  
|Real estate related revenues                                |  |                        |  |              |  |   | 63,247        |   |  |              | 412,865   |   |              |   |         |   |  |   | 476,112   |  
|Other income                                                |  |                        |  |              |  |   | 137,415       |   |  |              | 189,017   |   |              |   | (62,399  | ) |  |   | 264,033   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Total net revenue                                           |  |                        |  |              |  |   | 1,053,967     |   |  |              | 1,958,834 |   |              |   | (63,100  | ) |  |   | 2,949,701 |  
|Expenses                                                    |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |          |   |  |   |           |  
|Compensation and benefits                                   |  |                        |  |              |  |   | 515,116       |   |  |              | 376,817   |   |              |   |         |   |  |   | 891,933   |  
|Professional fees                                           |  |                        |  |              |  |   | 120,500       |   |  |              | 36,785    |   |              |   |         |   |  |   | 157,285   |  
|Data processing and telecommunications                      |  |                        |  |              |  |   | 104,371       |   |  |              | 34,698    |   |              |   |         |   |  |   | 139,069   |  
|Advertising                                                 |  |                        |  |              |  |   | 89,144        |   |  |              | 18,590    |   |              |   |         |   |  |   | 107,734   |  
|Occupancy                                                   |  |                        |  |              |  |   | 49,939        |   |  |              | 27,616    |   |              |   |         |   |  |   | 77,555    |  
|Other                                                       |  |                        |  |              |  |   | 215,297       |   |  |              | 209,828   |   |              |   | (57,676  | ) |  |   | 367,449   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Total expenses                                              |  |                        |  |              |  |   | 1,094,367     |   |  |              | 704,334   |   |              |   | (57,676  | ) |  |   | 1,741,025 |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Income (loss) before income tax expense                     |  |                        |  |              |  |   | (40,400       | ) |  |              | 1,254,500 |   |              |   | (5,424   | ) |  |   | 1,208,676 |  
|Income tax expense                                          |  |                        |  |              |  |   | 57,998        |   |  |              | 442,329   |   |              |   | (1,932   | ) |  |   | 498,395   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Income (loss) before equity in net earnings of subsidiaries |  |                        |  |              |  |   | (98,398       | ) |  |              | 812,171   |   |              |   | (3,492   | ) |  |   | 710,281   |  
|Equity in net earnings of subsidiaries                      |  |                        |  |              |  |   | 808,679       |   |  |              |          |   |              |   | (808,679 | ) |  |   |          |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Net income                                                  |  | $                      |  |              |  | $ | 710,281       |   |  | $            | 812,171   |   |              | $ | (812,171 | ) |  | $ | 710,281   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         

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RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


Nine Months Ended September 30, 2005


|                                                                                 |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |             |  
|-------------------------------------------------------------------------------- |  | ---------------------- | ---------- | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | - |  | ------------ | ---------- | - |  | - | ----------- | -
|                                                                                 |  |                        |            | Guarantor |              |   | Non-Guarantor |              |  |   |              |  
|                                                                                 |  | Parent                 |            |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |   |  | Consolidated |           
|                                                                                 |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |           
|                                                                                 |  | (Dollars in thousands) |           
|NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                              |  | $                      | 10,226     |           |              | $ | (2,818,327    | )            |  | $ | 729,173      |   |  | $            | (363,891   | ) |  | $ | (2,442,819  | )
|CASH FLOWS FROM INVESTING ACTIVITIES:                                            |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |             |  
|Net increase in lending receivables                                              |  |                        |           |           |              |   | (190,316      | )            |  |   | (1,703,907   | ) |  |              |           |   |  |   | (1,894,223  | )
|Originations and purchases of mortgage loans held for investment                 |  |                        |           |           |              |   | (15,851,823   | )            |  |   | (3,765,153   | ) |  |              | 88,951     |   |  |   | (19,528,025 | )
|Proceeds from sales and repayments of mortgage loans held for
    investment     |  |                        |           |           |              |   | 491,944       |              |  |   | 16,810,433   |   |  |              |           |   |  |   | 17,302,377  |  
|Purchases of available for sale securities                                       |  |                        |           |           |              |   | (551,531      | )            |  |   | (19,372      | ) |  |              |           |   |  |   | (570,903    | )
|Proceeds from sales and repayments of available for sale
    securities          |  |                        |           |           |              |   | 435,416       |              |  |   | 16,555       |   |  |              |           |   |  |   | 451,971     |  
|Additions to mortgage servicing rights, net                                      |  |                        |           |           |              |   | (932,162      | )            |  |   | 2,250        |   |  |              |           |   |  |   | (929,912    | )
|Purchase of and advances to investments in real estate and other                 |  |                        |           |           |              |   | (43,209       | )            |  |   | (642,224     | ) |  |              |           |   |  |   | (685,433    | )
|Proceeds from sales of and returns of investments in real estate
    and other   |  |                        |           |           |              |   | 88,885        |              |  |   | 572,601      |   |  |              |           |   |  |   | 661,486     |  
|Payment of capital contribution                                                  |  |                        |           |           |              |   | (10,000       | )            |  |   |             |   |  |              | 10,000     |   |  |   |            |  
|Net increase in affiliate lending                                                |  |                        | (2,662,744 | )         |              |   |              |              |  |   |             |   |  |              | 2,662,744  |   |  |   |            |  
|Other, net                                                                       |  |                        | (19,010    | )         |              |   | 61,152        |              |  |   | 374,409      |   |  |              |           |   |  |   | 416,551     |  
|                                                                                 |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |           
|Net cash provided by (used in) investing activities                              |  |                        | (2,681,754 | )         |              |   | (16,501,644   | )            |  |   | 11,645,592   |   |  |              | 2,761,695  |   |  |   | (4,776,111  | )
|CASH FLOWS FROM FINANCING ACTIVITIES:                                            |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |             |  
|Net increase (decrease) in affiliate borrowings                                  |  |                        | (1,009,000 | )         |              |   | 2,502,000     |              |  |   | (233,884     | ) |  |              | (2,610,000 | ) |  |   | (1,350,884  | )
|Net increase (decrease) in other short-term borrowings                           |  |                        |           |           |              |   | 1,914,817     |              |  |   | 233,411      |   |  |              | 239,989    |   |  |   | 2,388,217   |  
|Proceeds from issuance of collateralized borrowings in
    securitization trusts |  |                        |           |           |              |   | 14,463,450    |              |  |   | 1,683,505    |   |  |              |           |   |  |   | 16,146,955  |  
|Repayments of collateralized borrowings in securitization trusts                 |  |                        |           |           |              |   |              |              |  |   | (16,899,368  | ) |  |              | (44,073    | ) |  |   | (16,943,441 | )
|Proceeds from other long-term borrowings                                         |  |                        | 5,752,850  |           |              |   |              |              |  |   | 1,459,000    |   |  |              |           |   |  |   | 7,211,850   |  
|Repayments of other long-term borrowings                                         |  |                        | (29,048    | )         |              |   |              |              |  |   | (239,130     | ) |  |              |           |   |  |   | (268,178    | )
|Proceeds from capital contribution                                               |  |                        |           |           |              |   |              |              |  |   | 10,000       |   |  |              | (10,000    | ) |  |   |            |  
|Increase in deposit liabilities                                                  |  |                        |           |           |              |   |              |              |  |   | 1,970,592    |   |  |              |           |   |  |   | 1,970,592   |  
|                                                                                 |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |           
|Net cash provided by (used in) financing activities                              |  |                        | 4,714,802  |           |              |   | 18,880,267    |              |  |   | (12,015,874  | ) |  |              | (2,424,084 | ) |  |   | 9,155,111   |  
|Effect of foreign exchange rates on cash and cash equivalents                    |  |                        |           |           |              |   |              |              |  |   | (21,593      | ) |  |              |           |   |  |   | (21,593     | )
|                                                                                 |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |           
|NET INCREASE (DECREASE)  IN CASH AND CASH EQUIVALENTS                            |  |                        | 2,043,274  |           |              |   | (439,704      | )            |  |   | 337,298      |   |  |              | (26,280    | ) |  |   | 1,914,588   |  
|CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                   |  |                        |           |           |              |   | 648,511       |              |  |   | 293,712      |   |  |              | (43,140    | ) |  |   | 899,083     |  
|                                                                                 |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |           
|CASH AND CASH EQUIVALENTS AT END OF PERIOD                                       |  | $                      | 2,043,274  |           |              | $ | 208,807       |              |  | $ | 631,010      |   |  | $            | (69,420    | ) |  | $ | 2,813,671   |  
|                                                                                 |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |           











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RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


Nine Months Ended September 30, 2004


|                                                              |                                                                                  |                                                     |   |              |   |      |              |             |             |              |         |             |              |   |          |         |         |   |           |             |             |  
|------------------------------------------------------------- | -------------------------------------------------------------------------------- | --------------------------------------------------- | - | ------------ | - | ---- | ------------ | ----------- | ----------- | ------------ | ------- | ----------- | ------------ | - | -------- | ------- | ------- | - | --------- | ----------- | ----------- | -
|                                                              |                                                                                  |                                                     |   |              |   | Non- |              |             |             |              |        
|                                                              |                                                                                  |                                                     |   | Guarantor    |   |      | Guarantor    |             |             |              |         |            
|                                                              |                                                                                  | Parent                                              |   | Subsidiaries |   |      | Subsidiaries |             |             | Eliminations |         |             | Consolidated |  
|                                                              |                                                                                  |                                                     |   |              |   |      |              |             |             |              |         |             |              |  
|                                                              |                                                                                  | (Dollars in thousands)                              |  
|NET CASH PROVIDED BY OPERATING ACTIVITIES                     |                                                                                  | $                                                   |  |              |   | $    | 2,397,894    |             |             | $            | 818,170 |             |              | $ | (268,714 | )       |         | $ | 2,947,350 |            
|CASH FLOWS FROM INVESTING ACTIVITIES:                         |                                                                                  |                                                     |   |              |   |      |              |             |             |              |         |             |              |   |          |         |         |   |           |            
|                                                              | Net increase in lending receivables                                              |                                                     |   |             |   |      |              | (122,557    | )           |              |         | (1,077,379  | )            |   |          |        |         |   |           | (1,199,936  | )          
|                                                              | Originations and purchases of mortgage loans held for investment                 |                                                     |   |             |   |      |              | (26,738,348 | )           |              |         | (498,069    | )            |   |          |        |         |   |           | (27,236,417 | )          
|                                                              | Proceeds from sales and repayments of mortgage loans held for
    investment     |                                                     |   |             |   |      |              | 702,075     |             |              |         | 11,412,234  |              |   |          |        |         |   |           | 12,114,309  |            
|                                                              | Purchases of available for sale securities                                       |                                                     |   |             |   |      |              | (556,336    | )           |              |         | (39,775     | )            |   |          |        |         |   |           | (596,111    | )          
|                                                              | Proceeds from sales and repayments of available for sale
    securities          |                                                     |   |             |   |      |              | 4,410       |             |              |         | 12,216      |              |   |          |        |         |   |           | 16,626      |            
|                                                              | Additions to mortgage servicing rights, net                                      |                                                     |   |             |   |      |              | (1,079,550  | )           |              |         | (6,378      | )            |   |          |        |         |   |           | (1,085,928  | )          
|                                                              | Purchase of and advances to investments in real estate and other                 |                                                     |   |             |   |      |              | (36,807     | )           |              |         | (470,195    | )            |   |          |        |         |   |           | (507,002    | )          
|                                                              | Proceeds from sales of and returns of investments in real estate
    and other   |                                                     |   |             |   |      |              | 101,543     |             |              |         | 487,430     |              |   |          |        |         |   |           | 588,973     |            
|                                                              | Payment of capital contribution                                                  |                                                     |   |             |   |      |              | (34,557     | )           |              |         |            |              |   |          | 34,557  |         |   |           |            |            
|                                                              | Other, net                                                                       |                                                     |   |             |   |      |              | 121,394     |             |              |         | 29,690      |              |   |          |        |         |   |           | 151,084     |            
|                                                              |                                                                                  |                                                     |   |              |   |      |              |             |             |              |         |             |              |   |         
|                                                              |                                                                                  | Net cash provided by (used in) investing activities |   |              |  |      |              |             | (27,638,733 | )            |         |             | 9,849,774    |   |          |         | 34,557  |   |           |             | (17,754,402 | )
|CASH FLOWS FROM FINANCING ACTIVITIES                          |                                                                                  |                                                     |   |              |   |      |              |             |             |              |         |             |              |   |          |         |         |   |           |            
|                                                              | Net increase (decrease) in affiliate borrowings                                  |                                                     |   |             |   |      |              | (55,345     | )           |              |         | 344,698     |              |   |          |        |         |   |           | 289,353     |            
|                                                              | Net increase (decrease) in other short-term borrowings                           |                                                     |   |             |   |      |              | 998,664     |             |              |         | (596,426    | )            |   |          | 57,646  |         |   |           | 459,884     |            
|                                                              | Proceeds from issuance of collateralized borrowings in
    securitization trusts |                                                     |   |             |   |      |              | 23,817,593  |             |              |         | 1,426,035   |              |   |          |        |         |   |           | 25,243,628  |            
|                                                              | Repayments of collateralized borrowings in securitization trusts                 |                                                     |   |             |   |      |              |            |             |              |         | (12,245,871 | )            |   |          | 8,345   |         |   |           | (12,237,526 | )          
|                                                              | Repayments of other long-term borrowings                                         |                                                     |   |             |   |      |              |            |             |              |         | (223,703    | )            |   |          |        |         |   |           | (223,703    | )          
|                                                              | Proceeds from capital contribution                                               |                                                     |   |             |   |      |              |            |             |              |         | 34,557      |              |   |          | (34,557 | )       |   |           |            |            
|                                                              | Dividends paid                                                                   |                                                     |   |             |   |      |              |            |             |              |         | (185,000    | )            |   |          | 185,000 |         |   |           |            |            
|                                                              | Increase in deposit liabilities                                                  |                                                     |   |             |   |      |              |            |             |              |         | 686,578     |              |   |          |        |         |   |           | 686,578     |            
|                                                              |                                                                                  |                                                     |   |              |   |      |              |             |             |              |         |             |              |   |         
|                                                              |                                                                                  | Net cash provided by (used in) financing activities |   |              |  |      |              |             | 24,760,912  |              |         |             | (10,759,132  | ) |          |         | 216,434 |   |           |             | 14,218,214  |  
|Effect of foreign exchange rates on cash and cash equivalents |                                                                                  |                                                     |  |              |   |      |             |             |             |              | 2,121   |             |              |   |         |         |         |   | 2,121     |            
|                                                              |                                                                                  |                                                     |   |              |   |      |              |             |             |              |         |             |              |   |         
|NET DECREASE IN CASH AND CASH EQUIVALENTS                     |                                                                                  |                                                     |  |              |   |      | (479,927     | )           |             |              | (89,067 | )           |              |   | (17,723  | )       |         |   | (586,717  | )          
|CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                |                                                                                  |                                                     |  |              |   |      | 666,430      |             |             |              | 295,671 |             |              |   | (21,008  | )       |         |   | 941,093   |            
|                                                              |                                                                                  |                                                     |   |              |   |      |              |             |             |              |         |             |              |   |         
|CASH AND CASH EQUIVALENTS AT END OF PERIOD                    |                                                                                  | $                                                   |  |              |   | $    | 186,503      |             |             | $            | 206,604 |             |              | $ | (38,731  | )       |         | $ | 354,376   |            
|                                                              |                                                                                  |                                                     |   |              |   |      |              |             |             |              |         |             |              |   |         







24



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##### Table of Contents



Item 2.     Managements
Discussion and Analysis of Financial Condition and Results of
Operations


Overview






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.
|
| |  | 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.                                                                                             
|
| |  | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| |  | International Business Group. Our International Business
    Group includes substantially all of our operations in the United
    Kingdom, The Netherlands, Germany, Canada and Mexico.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            



Results of Operations




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





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|                     |                       |                                  |        |         |                                |   |        |        |  |  |            |         |  |        |        |        |            |  |         |         |  |   |            |         |  |  |         |         |  |   |        |         | 
|-------------------- | --------------------- | -------------------------------- | ------ | ------- | ------------------------------ | - | ------ | ------ |  |  | ---------- | ------- |  | ------ | ------ | ------ | ---------- |  | ------- | ------- |  | - | ---------- | ------- |  |  | ------- | ------- |  | - | ------ | ------- | 
|                     |                       | Mortgage Loan Production by Type |       
|                     |                       |                                  |       
|                     |                       | Three Months Ended September 30  |        |         | Nine Months Ended September 30 |  
|                     |                       |                                  |        |         |                                |  
|                     |                       | 2005                             |        |         | 2004                           |   |        | 2005   |  |  | 2004       |        
|                     |                       |                                  |        |         |                                |   |        |        |  |  |            |        
|                     |                       | No. of                           |        |         | Dollar Amt                     |   |        | No. of |  |  | Dollar Amt |         |  | No. of |        |        | Dollar Amt |  |         | No. of  |  |   | Dollar Amt |        
|                     |                       | Loans                            |        |         | of Loans                       |   |        | Loans  |  |  | of Loans   |         |  | Loans  |        |        | of Loans   |  |         | Loans   |  |   | of Loans   |        
|                     |                       |                                  |        |         |                                |   |        |        |  |  |            |         |  |        |        |        |            |  |         |         |  |   |            |        
|                     |                       | (Dollars in millions)            |       
|Prime Conforming     |                       |                                  | 80,405 |         |                                | $ | 14,832 |        |  |  | 75,934     |         |  | $      | 13,295 |        |            |  | 217,724 |         |  | $ | 39,532     |         |  |  | 251,785 |         |  | $ | 42,434 |        
|Prime Non-Conforming |                       |                                  | 60,508 |         |                                |   | 17,292 |        |  |  | 19,510     |         |  |        | 7,503  |        |            |  | 148,743 |         |  |   | 42,358     |         |  |  | 81,306  |         |  |   | 23,191 |        
|Government           |                       |                                  | 7,984  |         |                                |   | 1,141  |        |  |  | 15,134     |         |  |        | 1,712  |        |            |  | 24,939  |         |  |   | 3,382      |         |  |  | 24,434  |         |  |   | 2,852  |        
|Nonprime             |                       |                                  | 60,244 |         |                                |   | 9,884  |        |  |  | 57,526     |         |  |        | 7,368  |        |            |  | 152,106 |         |  |   | 23,821     |         |  |  | 174,423 |         |  |   | 21,994 |        
|Prime Second-Lien    |                       |                                  | 67,808 |         |                                |   | 3,588  |        |  |  | 48,240     |         |  |        | 2,731  |        |            |  | 180,041 |         |  |   | 9,262      |         |  |  | 146,866 |         |  |   | 7,396  |        
|                     |                       |                                  |        |         |                                |   |        |        |  |  |            |         |  |        |        |        |            |  |         |         |  |   |            |        
|                     | Total U.S. Production |                                  |        | 276,949 |                                |   |        | 46,737 |  |  |            | 216,344 |  |        |        | 32,609 |            |  |         | 723,553 |  |   |            | 118,355 |  |  |         | 678,814 |  |   |        | 97,867  | 
|International        |                       |                                  | 25,862 |         |                                |   | 4,535  |        |  |  | 20,883     |         |  |        | 3,480  |        |            |  | 62,562  |         |  |   | 11,932     |         |  |  | 57,835  |         |  |   | 10,251 |        
|                     |                       |                                  |        |         |                                |   |        |        |  |  |            |         |  |        |        |        |            |  |         |         |  |   |            |        
|                     | Total                 |                                  |        | 302,811 |                                |   | $      | 51,272 |  |  |            | 237,227 |  |        | $      | 36,089 |            |  |         | 786,115 |  |   | $          | 130,287 |  |  |         | 736,649 |  |   | $      | 108,118 | 
|                     |                       |                                  |        |         |                                |   |        |        |  |  |            |         |  |        |        |        |            |  |         |         |  |   |            |        



|                                                     |                       |                                     |         |         |                                |   |        |        |  |  |            |         |  |        |        |        |            |  |         |         |  |   |            |         |  |  |         |         |  |   |        |         | 
|---------------------------------------------------- | --------------------- | ----------------------------------- | ------- | ------- | ------------------------------ | - | ------ | ------ |  |  | ---------- | ------- |  | ------ | ------ | ------ | ---------- |  | ------- | ------- |  | - | ---------- | ------- |  |  | ------- | ------- |  | - | ------ | ------- | 
|                                                     |                       | Mortgage Loan Production by Channel |        
|                                                     |                       |                                     |        
|                                                     |                       | Three Months Ended September 30     |         |         | Nine Months Ended September 30 |  
|                                                     |                       |                                     |         |         |                                |  
|                                                     |                       | 2005                                |         |         | 2004                           |   |        | 2005   |  |  | 2004       |        
|                                                     |                       |                                     |         |         |                                |   |        |        |  |  |            |        
|                                                     |                       | No. of                              |         |         | Dollar Amt                     |   |        | No. of |  |  | Dollar Amt |         |  | No. of |        |        | Dollar Amt |  |         | No. of  |  |   | Dollar Amt |        
|                                                     |                       | Loans                               |         |         | of Loans                       |   |        | Loans  |  |  | of Loans   |         |  | Loans  |        |        | of Loans   |  |         | Loans   |  |   | of Loans   |        
|                                                     |                       |                                     |         |         |                                |   |        |        |  |  |            |         |  |        |        |        |            |  |         |         |  |   |            |        
|                                                     |                       | (Dollars in millions)               |        
|Retail Branches                                      |                       |                                     | 35,790  |         |                                | $ | 5,537  |        |  |  | 22,507     |         |  | $      | 3,920  |        |            |  | 98,242  |         |  | $ | 14,940     |         |  |  | 96,381  |         |  | $ | 13,665 |        
|Direct Lending (other than retail branches)          |                       |                                     | 44,937  |         |                                |   | 4,963  |        |  |  | 34,459     |         |  |        | 3,280  |        |            |  | 125,455 |         |  |   | 13,737     |         |  |  | 112,323 |         |  |   | 12,314 |        
|Mortgage Brokers                                     |                       |                                     | 36,321  |         |                                |   | 6,326  |        |  |  | 26,308     |         |  |        | 3,555  |        |            |  | 97,184  |         |  |   | 16,396     |         |  |  | 83,950  |         |  |   | 11,976 |        
|Correspondent Lenders and secondary market purchases |                       |                                     | 159,901 |         |                                |   | 29,911 |        |  |  | 133,070    |         |  |        | 21,854 |        |            |  | 402,672 |         |  |   | 73,282     |         |  |  | 386,160 |         |  |   | 59,912 |        
|                                                     |                       |                                     |         |         |                                |   |        |        |  |  |            |         |  |        |        |        |            |  |         |         |  |   |            |        
|                                                     | Total U.S. Production |                                     |         | 276,949 |                                |   |        | 46,737 |  |  |            | 216,344 |  |        |        | 32,609 |            |  |         | 723,553 |  |   |            | 118,355 |  |  |         | 678,814 |  |   |        | 97,867  | 
|International                                        |                       |                                     | 25,862  |         |                                |   | 4,535  |        |  |  | 20,883     |         |  |        | 3,480  |        |            |  | 62,562  |         |  |   | 11,932     |         |  |  | 57,835  |         |  |   | 10,251 |        
|                                                     |                       |                                     |         |         |                                |   |        |        |  |  |            |         |  |        |        |        |            |  |         |         |  |   |            |        
|                                                     | Total                 |                                     |         | 302,811 |                                |   | $      | 51,272 |  |  |            | 237,227 |  |        | $      | 36,089 |            |  |         | 786,115 |  |   | $          | 130,287 |  |  |         | 736,649 |  |   | $      | 108,118 | 
|                                                     |                       |                                     |         |         |                                |   |        |        |  |  |            |         |  |        |        |        |            |  |         |         |  |   |            |        







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|                                    |                                      |                                   |           |           |                   |   |         |         |  |  |            |           |  |   |         |         | 
|----------------------------------- | ------------------------------------ | --------------------------------- | --------- | --------- | ----------------- | - | ------- | ------- |  |  | ---------- | --------- |  | - | ------- | ------- | 
|                                    |                                      | Mortgage Loan Servicing Portfolio |          
|                                    |                                      |                                   |          
|                                    |                                      | September 30, 2005                |           |           | December 31, 2004 |  
|                                    |                                      |                                   |           |           |                   |  
|                                    |                                      | No. of                            |           |           | Dollar Amt        |   |         | No. of  |  |  | Dollar Amt |          
|                                    |                                      | Loans                             |           |           | of Loans          |   |         | Loans   |  |  | of Loans   |          
|                                    |                                      |                                   |           |           |                   |   |         |         |  |  |            |          
|                                    |                                      | (Dollars in millions)             |          
|Prime Conforming Mortgage Loans     |                                      |                                   | 1,480,968 |           |                   | $ | 199,166 |         |  |  | 1,323,918  |           |  | $ | 165,577 |        
|Prime Non-Conforming Mortgage Loans |                                      |                                   | 266,138   |           |                   |   | 83,000  |         |  |  | 203,822    |           |  |   | 55,585  |        
|Government Mortgage Loans           |                                      |                                   | 192,242   |           |                   |   | 18,999  |         |  |  | 191,844    |           |  |   | 18,328  |        
|Nonprime Mortgage Loans             |                                      |                                   | 480,902   |           |                   |   | 52,118  |         |  |  | 505,929    |           |  |   | 51,139  |        
|Prime Second-Lien Mortgage Loans    |                                      |                                   | 545,451   |           |                   |   | 18,476  |         |  |  | 445,396    |           |  |   | 13,718  |        
|                                    |                                      |                                   |           |           |                   |   |         |         |  |  |            |          
|                                    | Total Mortgage Loans Serviced  U.S. |                                   |           | 2,965,701 |                   |   |         | 371,759 |  |  |            | 2,670,909 |  |   |         | 304,347 | 
|International                       |                                      |                                   | 129,291   |           |                   |   | 22,633  |         |  |  | 98,185     |           |  |   | 19,438  |        
|                                    |                                      |                                   |           |           |                   |   |         |         |  |  |            |          
|Total Primary Servicing Portfolio*  |                                      |                                   | 3,094,992 |           |                   | $ | 394,392 |         |  |  | 2,769,094  |           |  | $ | 323,785 |        
|                                    |                                      |                                   |           |           |                   |   |         |         |  |  |            |          






|  |                                                                                                                                                                                                                                                                 
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Excludes loans for which we acted as a subservicer. Subserviced
    loans totaled 205,701 with an unpaid principal balance of
    $31.9 billion at September 30, 2005 and 99,082 with an
    unpaid principal balance of $13.9 billion at
    December 31, 2004.

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| |                
| | ---------------
| | Segment Results



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



|                                                |  |                    |        |   |                   |   |        |      |  |   |        |   |  |   |        |  
|----------------------------------------------- |  | ------------------ | ------ | - | ----------------- | - | ------ | ---- |  | - | ------ | - |  | - | ------ | -
|                                                |  | Three Months Ended |        |   | Nine Months Ended |  
|                                                |  | September 30,      |        |   | September 30,     |  
|                                                |  |                    |        |   |                   |  
|                                                |  | 2005               |        |   | 2004              |   |        | 2005 |  |   | 2004   |  
|                                                |  |                    |        |   |                   |   |        |      |  |   |        |  
|                                                |  | (In millions)      |       
|Net interest income                             |  | $                  | 74.7   |   |                   | $ | 78.8   |      |  | $ | 218.4  |   |  | $ | 244.0  |  
|Provision for loan losses                       |  |                    | (2.4   | ) |                   |   | 2.5    |      |  |   | 0.5    |   |  |   | (0.2   | )
|Gain on sales of mortgage loans, net            |  |                    | 151.3  |   |                   |   | 36.7   |      |  |   | 348.5  |   |  |   | 311.3  |  
|Servicing fees                                  |  |                    | 247.7  |   |                   |   | 221.1  |      |  |   | 725.7  |   |  |   | 640.3  |  
|Amortization and impairment of servicing rights |  |                    | (50.3  | ) |                   |   | (177.1 | )    |  |   | (350.3 | ) |  |   | (598.8 | )
|Servicing asset valuation and hedge gain, net   |  |                    | 43.0   |   |                   |   | 132.2  |      |  |   | 79.6   |   |  |   | 192.2  |  
|                                                |  |                    |        |   |                   |   |        |      |  |   |        |  
|Net servicing fees                              |  |                    | 240.4  |   |                   |   | 176.2  |      |  |   | 455.0  |   |  |   | 233.7  |  
|Other income                                    |  |                    | 20.9   |   |                   |   | 6.1    |      |  |   | 188.3  |   |  |   | 112.4  |  
|Operating expenses                              |  |                    | (290.8 | ) |                   |   | (162.3 | )    |  |   | (720.4 | ) |  |   | (542.1 | )
|Income tax expense                              |  |                    | (80.8  | ) |                   |   | (40.3  | )    |  |   | (204.9 | ) |  |   | (150.2 | )
|                                                |  |                    |        |   |                   |   |        |      |  |   |        |  
|Net income                                      |  | $                  | 113.3  |   |                   | $ | 97.7   |      |  | $ | 285.4  |   |  | $ | 208.9  |  
|                                                |  |                    |        |   |                   |   |        |      |  |   |        |  







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



|                                                     |  |                    |        |   |                   |   |        |      |  |   |         |   |  |   |         |  
|---------------------------------------------------- |  | ------------------ | ------ | - | ----------------- | - | ------ | ---- |  | - | ------- | - |  | - | ------- | -
|                                                     |  | Three Months Ended |        |   | Nine Months Ended |  
|                                                     |  | September 30,      |        |   | September 30,     |  
|                                                     |  |                    |        |   |                   |  
|                                                     |  | 2005               |        |   | 2004              |   |        | 2005 |  |   | 2004    |  
|                                                     |  |                    |        |   |                   |   |        |      |  |   |         |  
|                                                     |  | (In millions)      |       
|Net interest income                                  |  | $                  | 291.6  |   |                   | $ | 508.5  |      |  | $ | 1,042.9 |   |  | $ | 1,552.8 |  
|Provision for loan losses                            |  |                    | (156.4 | ) |                   |   | (234.1 | )    |  |   | (436.9  | ) |  |   | (603.9  | )
|Gain on sales of mortgage loans, net                 |  |                    | 128.1  |   |                   |   | 3.0    |      |  |   | 208.5   |   |  |   | 30.7    |  
|Servicing fees                                       |  |                    | 108.9  |   |                   |   | 103.5  |      |  |   | 327.5   |   |  |   | 306.8   |  
|Amortization and impairment of servicing rights      |  |                    | (17.0  | ) |                   |   | (166.5 | )    |  |   | (165.3  | ) |  |   | (203.6  | )
|Servicing asset valuation and hedge gain (loss), net |  |                    | (43.9  | ) |                   |   | 93.2   |      |  |   | (31.6   | ) |  |   | 47.9    |  
|                                                     |  |                    |        |   |                   |   |        |      |  |   |         |  
|Net servicing fees (loss)                            |  |                    | 48.0   |   |                   |   | 30.2   |      |  |   | 130.6   |   |  |   | 151.1   |  
|Other income                                         |  |                    | 58.0   |   |                   |   | 45.8   |      |  |   | 240.7   |   |  |   | 144.3   |  
|Operating expenses                                   |  |                    | (198.5 | ) |                   |   | (238.2 | )    |  |   | (613.4  | ) |  |   | (653.0  | )
|Income tax expense                                   |  |                    | (71.8  | ) |                   |   | (44.1  | )    |  |   | (224.4  | ) |  |   | (237.9  | )
|                                                     |  |                    |        |   |                   |   |        |      |  |   |         |  
|Net income                                           |  | $                  | 99.0   |   |                   | $ | 71.1   |      |  | $ | 348.0   |   |  | $ | 384.1   |  
|                                                     |  |                    |        |   |                   |   |        |      |  |   |         |  







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Business Capital
Group




|                          |  |                    |       |   |                   |   |       |      |  |   |       |   |  |   |       |  
|------------------------- |  | ------------------ | ----- | - | ----------------- | - | ----- | ---- |  | - | ----- | - |  | - | ----- | -
|                          |  | Three Months Ended |       |   | Nine Months Ended |  
|                          |  | September 30,      |       |   | September 30,     |  
|                          |  |                    |       |   |                   |  
|                          |  | 2005               |       |   | 2004              |   |       | 2005 |  |   | 2004  |  
|                          |  |                    |       |   |                   |   |       |      |  |   |       |  
|                          |  | (In millions)      |      
|Net interest income       |  | $                  | 37.9  |   |                   | $ | 34.1  |      |  | $ | 110.9 |   |  | $ | 87.3  |  
|Provision for loan losses |  |                    | (5.3  | ) |                   |   | (21.1 | )    |  |   | (25.0 | ) |  |   | (26.5 | )
|Other income              |  |                    | 71.3  |   |                   |   | 45.2  |      |  |   | 187.7 |   |  |   | 137.3 |  
|Operating expenses        |  |                    | (18.1 | ) |                   |   | (3.1  | )    |  |   | (56.1 | ) |  |   | (31.5 | )
|Income tax expense        |  |                    | (35.6 | ) |                   |   | (21.1 | )    |  |   | (85.3 | ) |  |   | (63.7 | )
|                          |  |                    |       |   |                   |   |       |      |  |   |       |  
|Net income                |  | $                  | 50.2  |   |                   | $ | 34.0  |      |  | $ | 132.2 |   |  | $ | 102.9 |  
|                          |  |                    |       |   |                   |   |       |      |  |   |       |  













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International Business
Group




|                                                |  |                    |       |   |                   |   |       |      |  |   |        |   |  |   |        |  
|----------------------------------------------- |  | ------------------ | ----- | - | ----------------- | - | ----- | ---- |  | - | ------ | - |  | - | ------ | -
|                                                |  | Three Months Ended |       |   | Nine Months Ended |  
|                                                |  | September 30,      |       |   | September 30,     |  
|                                                |  |                    |       |   |                   |  
|                                                |  | 2005               |       |   | 2004              |   |       | 2005 |  |   | 2004   |  
|                                                |  |                    |       |   |                   |   |       |      |  |   |        |  
|                                                |  | (In millions)      |      
|Net interest income                             |  | $                  | 44.5  |   |                   | $ | 36.1  |      |  | $ | 121.9  |   |  | $ | 82.7   |  
|Provision for loan losses                       |  |                    | 0.2   |   |                   |   | (0.9  | )    |  |   | (0.5   | ) |  |   | (2.7   | )
|Gain on sales of mortgage loans, net            |  |                    | 26.8  |   |                   |   | 18.4  |      |  |   | 163.5  |   |  |   | 147.5  |  
|Servicing fees                                  |  |                    | 2.0   |   |                   |   | (3.5  | )    |  |   | (9.9   | ) |  |   | (12.1  | )
|Amortization and impairment of servicing rights |  |                    | (1.0  | ) |                   |   | 0.2   |      |  |   | (0.4   | ) |  |   | 0.3    |  
|                                                |  |                    |       |   |                   |   |       |      |  |   |        |  
|Net servicing fees (loss)                       |  |                    | 1.0   |   |                   |   | (3.3  | )    |  |   | (10.3  | ) |  |   | (11.8  | )
|Other income                                    |  |                    | 16.3  |   |                   |   | 5.2   |      |  |   | 35.0   |   |  |   | (0.7   | )
|Operating expenses                              |  |                    | (62.9 | ) |                   |   | (46.0 | )    |  |   | (182.0 | ) |  |   | (138.2 | )
|Income tax expense                              |  |                    | (9.0  | ) |                   |   | (3.5  | )    |  |   | (39.5  | ) |  |   | (25.9  | )
|                                                |  |                    |       |   |                   |   |       |      |  |   |        |  
|Net income                                      |  | $                  | 16.9  |   |                   | $ | 6.0   |      |  | $ | 88.1   |   |  | $ | 50.9   |  
|                                                |  |                    |       |   |                   |   |       |      |  |   |        |  















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Corporate and Other




|                                                      |  |                    |        |   |                   |   |        |      |  |   |        |   |  |   |        |  
|----------------------------------------------------- |  | ------------------ | ------ | - | ----------------- | - | ------ | ---- |  | - | ------ | - |  | - | ------ | -
|                                                      |  | Three Months Ended |        |   | Nine Months Ended |  
|                                                      |  | September 30,      |        |   | September 30,     |  
|                                                      |  |                    |        |   |                   |  
|                                                      |  | 2005               |        |   | 2004              |   |        | 2005 |  |   | 2004   |  
|                                                      |  |                    |        |   |                   |   |        |      |  |   |        |  
|                                                      |  | (In millions)      |       
|Net interest income (expense)                         |  | $                  | (6.8   | ) |                   | $ | (5.5   | )    |  | $ | 3.6    |   |  | $ | (16.6  | )
|Provision for loan losses                             |  |                    |       |   |                   |   |       |      |  |   |       |   |  |   | (0.2   | )
|Gain (loss) on sales of loans                         |  |                    | 0.3    |   |                   |   | 0.7    |      |  |   | 65.1   |   |  |   | (11.1  | )
|Servicing fees                                        |  |                    | 2.8    |   |                   |   | 1.3    |      |  |   | 5.3    |   |  |   | 4.4    |  
|Mortgage servicing rights amortization and impairment |  |                    | (0.7   | ) |                   |   | 1.5    |      |  |   | 0.3    |   |  |   | 8.6    |  
|                                                      |  |                    |        |   |                   |   |        |      |  |   |        |  
|Net servicing fees                                    |  |                    | 2.1    |   |                   |   | 2.8    |      |  |   | 5.6    |   |  |   | 13.0   |  
|Other income                                          |  |                    | 133.0  |   |                   |   | 139.6  |      |  |   | 347.4  |   |  |   | 375.3  |  
|Operating expenses                                    |  |                    | (132.1 | ) |                   |   | (123.2 | )    |  |   | (368.4 | ) |  |   | (376.3 | )
|Income tax expense (benefit)                          |  |                    | 5.2    |   |                   |   | (20.4  | )    |  |   | (3.5   | ) |  |   | (20.6  | )
|                                                      |  |                    |        |   |                   |   |        |      |  |   |        |  
|Net income (loss)                                     |  | $                  | 1.7    |   |                   | $ | (6.0   | )    |  | $ | 49.8   |   |  | $ | (36.5  | )
|                                                      |  |                    |        |   |                   |   |        |      |  |   |        |  









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Asset Quality


Allowance for Loan
Losses




|                                                                                                  |  |                    |         |   |                   |   |        |      |  |   |         |   |  |   |        |  
|------------------------------------------------------------------------------------------------- |  | ------------------ | ------- | - | ----------------- | - | ------ | ---- |  | - | ------- | - |  | - | ------ | -
|                                                                                                  |  | Three Months Ended |         |   | Nine Months Ended |  
|                                                                                                  |  | September 30,      |         |   | September 30,     |  
|                                                                                                  |  |                    |         |   |                   |  
|                                                                                                  |  | 2005               |         |   | 2004              |   |        | 2005 |  |   | 2004    |  
|                                                                                                  |  |                    |         |   |                   |   |        |      |  |   |         |  
|                                                                                                  |  | (In millions)      |        
|Beginning balance                                                                                 |  | $                  | 1,094.4 |   |                   | $ | 790.0  |      |  | $ | 1,014.7 |   |  | $ | 618.0  |  
|Provision for loan losses                                                                         |  |                    | 163.9   |   |                   |   | 253.7  |      |  |   | 461.8   |   |  |   | 633.5  |  
|Charge-offs                                                                                       |  |                    | (117.2  | ) |                   |   | (116.1 | )    |  |   | (358.8  | ) |  |   | (330.2 | )
|Recoveries                                                                                        |  |                    | 6.3     |   |                   |   | 11.3   |      |  |   | 29.7    |   |  |   | 17.6   |  
|                                                                                                  |  |                    |         |   |                   |   |        |      |  |   |         |  
|Ending balance                                                                                    |  | $                  | 1,147.4 |   |                   | $ | 938.9  |      |  | $ | 1,147.4 |   |  | $ | 938.9  |  
|                                                                                                  |  |                    |         |   |                   |   |        |      |  |   |         |  
|Allowance as a percentage of total mortgage loans held for
    investment and lending receivables |  |                    |         |   |                   |   |        |      |  |   | 1.62%   |   |  |   | 1.33%  |  
|                                                                                                  |  |                    |         |   |                   |   |        |      |  |   |         |  



|                      |                      |                    |        |       |                   |   |        |        |   |   |        |        |   |   |        |        |  
|--------------------- | -------------------- | ------------------ | ------ | ----- | ----------------- | - | ------ | ------ | - | - | ------ | ------ | - | - | ------ | ------ | -
|                      |                      | Three Months Ended |        |       | Nine Months Ended |  
|                      |                      | September 30,      |        |       | September 30,     |  
|                      |                      |                    |        |       |                   |  
|                      |                      | 2005               |        |       | 2004              |   |        | 2005   |   |   | 2004   |       
|                      |                      |                    |        |       |                   |   |        |        |   |   |        |       
|                      |                      | (In millions)      |       
|Mortgage loans:       |                      |                    |        |       |                   |   |        |        |   |   |        |        |   |   |        |       
|                      | Prime conforming     |                    | $      | (0.2  | )                 |   | $      |       |   |   | $      | (0.2   | ) |   | $      |       |  
|                      | Prime non-conforming |                    |        | (24.0 | )                 |   |        | 11.3   |   |   |        | (26.1  | ) |   |        | (28.7  | )
|                      | Prime second-lien    |                    |        | (2.0  | )                 |   |        | (1.8   | ) |   |        | (5.6   | ) |   |        | (6.3   | )
|                      | Government           |                    |        |      |                   |   |        |       |   |   |        |       |   |   |        | (0.1   | )
|                      | Nonprime             |                    |        | (84.9 | )                 |   |        | (118.0 | ) |   |        | (295.1 | ) |   |        | (261.2 | )
|Lending receivables:  |                      |                    |        |       |                   |   |        |        |   |   |        |        |   |   |        |       
|                      | Warehouse            |                    |        | 0.2   |                   |   |        | 3.0    |   |   |        |       |   |   |        | 3.0    |  
|                      | Construction         |                    |        |      |                   |   |        | 0.7    |   |   |        | (2.0   | ) |   |        | (18.9  | )
|                      | Other                |                    |        |      |                   |   |        |       |   |   |        | (0.1   | ) |   |        | (0.4   | )
|                      |                      |                    |        |       |                   |   |        |        |   |   |        |       
|Total net charge-offs |                      | $                  | (110.9 | )     |                   | $ | (104.8 | )      |   | $ | (329.1 | )      |   | $ | (312.6 | )     
|                      |                      |                    |        |       |                   |   |        |        |   |   |        |       

Nonperforming Assets




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|                                                                            |                      |                      |         |   |              |   |         |   |         | 
|--------------------------------------------------------------------------- | -------------------- | -------------------- | ------- | - | ------------ | - | ------- | - | ------- | 
|                                                                            |                      | September 30,        |         |   | December 31, |  
|                                                                            |                      | 2005                 |         |   | 2004         |  
|                                                                            |                      |                      |         |   |              |  
|                                                                            |                      | (In millions)        |        
|Nonaccrual loans:                                                           |                      |                      |         |   |              |   |         |  
|                                                                            | Mortgage loans:      |                      |         |   |              |   |         |   |        
|                                                                            |                      | Prime conforming     |         | $ | 19.5         |   |         | $ | 16.9    | 
|                                                                            |                      | Prime non-conforming |         |   | 239.3        |   |         |   | 197.8   | 
|                                                                            |                      | Government           |         |   | 39.1         |   |         |   | 26.3    | 
|                                                                            |                      | Prime second-lien    |         |   | 71.8         |   |         |   | 46.1    | 
|                                                                            |                      | Nonprime*            |         |   | 5,110.3      |   |         |   | 4,327.1 | 
|                                                                            | Lending receivables: |                      |         |   |              |   |         |   |        
|                                                                            |                      | Warehouse            |         |   | 1.0          |   |         |   | 4.6     | 
|                                                                            |                      | Construction**       |         |   | 8.6          |   |         |   |        | 
|                                                                            |                      | Healthcare           |         |   |             |   |         |   | 1.9     | 
|                                                                            |                      |                      |         |   |              |  
|Total nonaccrual loans                                                      |                      |                      | 5,489.6 |   |              |   | 4,620.7 |  
|Foreclosed assets                                                           |                      |                      | 557.1   |   |              |   | 464.3   |  
|                                                                            |                      |                      |         |   |              |  
|Total nonperforming assets                                                  |                      | $                    | 6,046.7 |   |              | $ | 5,085.0 |  
|                                                                            |                      |                      |         |   |              |  
|Total nonperforming assets as a percentage of total consolidated
    assets |                      |                      | 5.8     | % |              |   | 5.4     | %
|                                                                            |                      |                      |         |   |              |  






| |   |                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | * | Includes $461.9 million (as of September 30, 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 at
    September 30, 2005 was also a restructured loan.





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 us 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. There have
    been no outstanding borrowings under the intercompany revolving
    line of credit.
|
| |  | We issued $4.0 billion of unsecured debt to investors. The
    proceeds from these 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 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                           





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



|                                                   |                               |                   |          |           |              |   |          |           | 
|-------------------------------------------------- | ----------------------------- | ----------------- | -------- | --------- | ------------ | - | -------- | --------- | 
|                                                   |                               | Outstanding as of |         
|                                                   |                               |                   |         
|                                                   |                               | September 30,     |          |           | December 31, |  
|                                                   |                               | 2005              |          |           | 2004         |  
|                                                   |                               |                   |          |           |              |  
|                                                   |                               | (In millions)     |         
|Collateralized borrowings in securitization trusts |                               | $                 | 49,550.3 |           |              | $ | 50,708.5 |          
|Short-term secured borrowings                      |                               |                   | 23,117.2 |           |              |   | 17,718.0 |          
|Short-term unsecured non-affiliate borrowings      |                               |                   | 1,247.5  |           |              |   | 4,292.5  |          
|Long-term secured borrowings                       |                               |                   | 25.8     |           |              |   |         |          
|Long-term unsecured borrowings                     |                               |                   | 5,869.1  |           |              |   | 186.1    |          
|FHLB advances  short term                         |                               |                   | 1,225.0  |           |              |   | 853.0    |          
|FHLB advances  long term                          |                               |                   | 1,923.0  |           |              |   | 654.0    |          
|Bank deposits                                      |                               |                   | 3,635.6  |           |              |   | 1,665.0  |          
|Affiliate borrowings                               |                               |                   | 6,655.1  |           |              |   | 10,006.2 |          
|                                                   |                               |                   |          |           |              |  
|                                                   | Total borrowings and deposits |                   |          | 93,248.6  |              |   |          | 86,083.3  | 
|Off-balance sheet financings                       |                               |                   | 79,067.6 |           |              |   | 61,091.4 |          
|                                                   |                               |                   |          |           |              |  
|                                                   | Total                         |                   | $        | 172,316.2 |              |   | $        | 147,174.7 | 
|                                                   |                               |                   |          |           |              |  

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|                                             |       |                            |          |          |                            |   |          |               |  |   |              |         |  |   |          |          | 
|-------------------------------------------- | ----- | -------------------------- | -------- | -------- | -------------------------- | - | -------- | ------------- |  | - | ------------ | ------- |  | - | -------- | -------- | 
|                                             |       | Secured Committed          |          |          | Unused Secured Committed   |  
|                                             |       | Liquidity Facilities as of |          |          | Liquidity Facilities as of |  
|                                             |       |                            |          |          |                            |  
|                                             |       | September 30,              |          |          | December 31,               |   |          | September 30, |  |   | December 31, |        
|                                             |       | 2005                       |          |          | 2004                       |   |          | 2005          |  |   | 2004         |        
|                                             |       |                            |          |          |                            |   |          |               |  |   |              |        
|                                             |       | (In millions)              |         
|Mortgage loans and warehouse lending(a)      |       | $                          | 21,270.1 |          |                            | $ | 19,772.1 |               |  | $ | 8,808.5      |         |  | $ | 12,392.1 |         
|Residential construction lending receivables |       |                            | 1,100.0  |          |                            |   | 800.0    |               |  |   |             |         |  |   | 100.0    |         
|Other(b)                                     |       |                            | 1,925.0  |          |                            |   | 1,725.0  |               |  | $ | 392.6        |         |  |   | 688.1    |         
|                                             |       |                            |          |          |                            |   |          |               |  |   |              |        
|                                             | Total |                            | $        | 24,295.1 |                            |   | $        | 22,297.1      |  |   | $            | 9,201.1 |  |   | $        | 13,180.2 | 
|                                             |       |                            |          |          |                            |   |          |               |  |   |              |        






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

Off-Balance
Sheet Financings






Credit Ratings




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







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







|        |                                                                
|------- | ---------------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures About Market
    Risk.






Item 4.  Controls and Procedures.






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##### Table of Contents






PART II  OTHER INFORMATION





Item 1.  Legal Proceedings.







Item 2.  Unregistered Sales of Equity Securities
and Use of Proceeds.







Item 3.  Defaults Upon Senior Securities.







Item 4.  Submission of Matters to a Vote of
Security Holders.







Item 5.  Other Information.







Item 6.  Exhibits.




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##### Table of Contents






SIGNATURES






| |                                        
| | ---------------------------------------
| | Residential Capital Corporation        
| | (Registrant)                           
|
| | /s/ Davee L. Olson                     
| |                                        
| | Davee L. Olson                         
| | Chief Financial Officer                
|
| | /s/ James N. Young                     
| |                                        
| | James N. Young                         
| | Chief Accounting Officer and Controller

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##### Table of Contents






INDEX OF EXHIBITS


|        |      |  |             |                                                                                      
|------- | ---- |  | ----------- | -------------------------------------------------------------------------------------
|Exhibit |      |  | Description
|        |      |  |            
|        | 12   |  |             | Computation of ratio of earnings to fixed charges                                    
|        | 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)



| |    |  |  |                                                                                                                    
| | -- |  |  | -------------------------------------------------------------------------------------------------------------------
| | 32 |  |  | Certification of Principal Executive Officer and Principal
    Financial Officer pursuant to 18 U.S.C. Section 1350

42