##### 



Exhibit 99.2


RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE


SIX MONTHS ENDED JUNE 30, 2005 AND 2004


INDEX


|                                                                                                                            |  |      |   | 
|--------------------------------------------------------------------------------------------------------------------------- |  | ---- | - | 
|                                                                                                                            |  | Page |  
|                                                                                                                            |  |      |  
|Condensed Consolidated Balance Sheet as of
    June 30, 2005                                                                |  |      | 1 | 
|Condensed Consolidated Statement of Income
    for the six months ended June 30, 2005 and 2004                              |  |      | 2 | 
|Condensed Consolidated Statement of Changes
    in Stockholders Equity for the six months ended
    June 30, 2005 and 2004 |  |      | 3 | 
|Condensed Consolidated Statement of Cash
    Flows for the six months ended June 30, 2005 and 2004                          |  |      | 4 | 
|Notes to Condensed Consolidated Financial
    Statements                                                                    |  |      | 5 | 



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##### 



RESIDENTIAL CAPITAL CORPORATION





CONDENSED CONSOLIDATED BALANCE SHEET


June 30, 2005 and December 31, 2004


|                                                                                                        |                                                    |                        |            |            |              |   |            |            |            | 
|------------------------------------------------------------------------------------------------------- | -------------------------------------------------- | ---------------------- | ---------- | ---------- | ------------ | - | ---------- | ---------- | ---------- | 
|                                                                                                        |                                                    | June 30,               |            |            | December 31, |  
|                                                                                                        |                                                    | 2005                   |            |            | 2004         |  
|                                                                                                        |                                                    |                        |            |            |              |  
|                                                                                                        |                                                    | (Unaudited)            |           
|                                                                                                        |                                                    | (Dollars in thousands) |           
|ASSETS                                                                                                 
|Cash and cash equivalents                                                                               |                                                    | $                      | 2,189,389  |            |              | $ | 899,083    |           
|Mortgage loans held for sale                                                                            |                                                    |                        | 15,020,270 |            |              |   | 14,032,781 |           
|Trading securities                                                                                      |                                                    |                        | 3,721,971  |            |              |   | 2,714,700  |           
|Available for sale securities                                                                           |                                                    |                        | 1,371,605  |            |              |   | 1,244,658  |           
|Mortgage loans held for investment, net                                                                 |                                                    |                        | 55,620,794 |            |              |   | 56,835,356 |           
|Lending receivables, net                                                                                |                                                    |                        | 10,536,742 |            |              |   | 9,357,397  |           
|Mortgage servicing rights, net                                                                          |                                                    |                        | 3,246,327  |            |              |   | 3,365,992  |           
|Accounts receivable                                                                                     |                                                    |                        | 1,884,035  |            |              |   | 2,110,417  |           
|Investments in real estate and other                                                                    |                                                    |                        | 1,526,385  |            |              |   | 1,397,246  |           
|Goodwill                                                                                                |                                                    |                        | 450,026    |            |              |   | 454,278    |           
|Other assets                                                                                            |                                                    |                        | 2,757,767  |            |              |   | 1,937,556  |           
|                                                                                                        |                                                    |                        |            |            |              |  
|Total assets                                                                                            |                                                    | $                      | 98,325,311 |            |              | $ | 94,349,464 |           
|                                                                                                        |                                                    |                        |            |            |              |  
|                                                                                                       
|LIABILITIES                                                                                            
|Borrowings:                                                                                             |                                                    |                        |            |            |              |   |            |           
|                                                                                                        | Affiliate borrowings                               |                        | $          | 8,253,463  |              |   | $          | 10,006,242 |           
|                                                                                                        | Collateralized borrowings in securitization trusts |                        |            | 46,535,191 |              |   |            | 50,708,476 |           
|                                                                                                        | Other borrowings                                   |                        |            | 29,418,253 |              |   |            | 23,703,650 |           
|                                                                                                        |                                                    |                        |            |            |              |  
|                                                                                                        |                                                    | Total borrowings       |            |            | 84,206,907   |   |            |            | 84,418,368 | 
|Deposit liabilities                                                                                     |                                                    |                        | 2,990,996  |            |              |   | 1,664,970  |           
|Other liabilities                                                                                       |                                                    |                        | 4,066,726  |            |              |   | 3,900,381  |           
|                                                                                                        |                                                    |                        |            |            |              |  
|Total liabilities                                                                                       |                                                    |                        | 91,264,629 |            |              |   | 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                                                                                       |                                                    |                        | 3,582,182  |            |              |   | 2,959,961  |           
|Accumulated other comprehensive income                                                                  |                                                    |                        | 128,041    |            |              |   | 159,006    |           
|                                                                                                        |                                                    |                        |            |            |              |  
|Total stockholders equity                                                                              |                                                    |                        | 7,060,682  |            |              |   | 4,365,745  |           
|                                                                                                        |                                                    |                        |            |            |              |  
|Total liabilities and stockholders equity                                                              |                                                    | $                      | 98,325,311 |            |              | $ | 94,349,464 |           
|                                                                                                        |                                                    |                        |            |            |              |  



1



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##### 



RESIDENTIAL CAPITAL CORPORATION





CONDENSED CONSOLIDATED STATEMENT OF INCOME


|                                                     |  |                            |           |   |                          |   |           |      |  |   |           |   |  |   |           |  
|---------------------------------------------------- |  | -------------------------- | --------- | - | ------------------------ | - | --------- | ---- |  | - | --------- | - |  | - | --------- | -
|                                                     |  | Three Months Ended June 30 |           |   | Six Months Ended June 30 |  
|                                                     |  |                            |           |   |                          |  
|                                                     |  | 2005                       |           |   | 2004                     |   |           | 2005 |  |   | 2004      |  
|                                                     |  |                            |           |   |                          |   |           |      |  |   |           |  
|                                                     |  | (Unaudited)                |          
|                                                     |  | (Dollars in thousands)     |          
|Revenue                                              |  |                            |           |   |                          |   |           |      |  |   |           |   |  |   |           |  
|Interest income                                      |  | $                          | 1,355,130 |   |                          | $ | 1,256,924 |      |  | $ | 2,671,737 |   |  | $ | 2,358,670 |  
|Interest expense                                     |  |                            | 850,061   |   |                          |   | 555,334   |      |  |   | 1,615,971 |   |  |   | 1,060,566 |  
|                                                     |  |                            |           |   |                          |   |           |      |  |   |           |  
|Net interest income                                  |  |                            | 505,069   |   |                          |   | 701,590   |      |  |   | 1,055,766 |   |  |   | 1,298,104 |  
|Provision for loan losses                            |  |                            | 142,094   |   |                          |   | 196,633   |      |  |   | 297,926   |   |  |   | 379,852   |  
|                                                     |  |                            |           |   |                          |   |           |      |  |   |           |  
|Net interest income after provision for loan losses  |  |                            | 362,975   |   |                          |   | 504,957   |      |  |   | 757,840   |   |  |   | 918,252   |  
|Gain on sale of mortgage loans, net                  |  |                            | 150,604   |   |                          |   | 218,000   |      |  |   | 480,247   |   |  |   | 420,435   |  
|Servicing fees                                       |  |                            | 345,256   |   |                          |   | 312,545   |      |  |   | 686,023   |   |  |   | 616,169   |  
|Amortization and impairment of servicing rights      |  |                            | (306,929  | ) |                          |   | (135,584  | )    |  |   | (446,709  | ) |  |   | (451,547  | )
|Servicing asset valuation and hedge gain (loss), net |  |                            | 161,128   |   |                          |   | (115,725  | )    |  |   | 93,267    |   |  |   | 14,678    |  
|                                                     |  |                            |           |   |                          |   |           |      |  |   |           |  
|Net servicing fees                                   |  |                            | 199,455   |   |                          |   | 61,326    |      |  |   | 332,581   |   |  |   | 179,300   |  
|Gain on investment securities, net                   |  |                            | 103,469   |   |                          |   | 57,119    |      |  |   | 175,584   |   |  |   | 68,282    |  
|Real estate related revenues                         |  |                            | 193,685   |   |                          |   | 179,957   |      |  |   | 325,059   |   |  |   | 289,847   |  
|Other income                                         |  |                            | 88,217    |   |                          |   | 78,819    |      |  |   | 154,671   |   |  |   | 168,649   |  
|                                                     |  |                            |           |   |                          |   |           |      |  |   |           |  
|Total net revenue                                    |  |                            | 1,098,405 |   |                          |   | 1,100,088 |      |  |   | 2,225,982 |   |  |   | 2,044,765 |  
|Expenses                                             |  |                            |           |   |                          |   |           |      |  |   |           |   |  |   |           |  
|Compensation and benefits                            |  |                            | 364,875   |   |                          |   | 329,007   |      |  |   | 684,806   |   |  |   | 613,270   |  
|Professional fees                                    |  |                            | 46,085    |   |                          |   | 48,886    |      |  |   | 96,383    |   |  |   | 93,323    |  
|Data processing and telecommunications               |  |                            | 47,628    |   |                          |   | 46,741    |      |  |   | 97,073    |   |  |   | 92,791    |  
|Advertising                                          |  |                            | 46,613    |   |                          |   | 37,383    |      |  |   | 85,918    |   |  |   | 70,921    |  
|Occupancy                                            |  |                            | 30,837    |   |                          |   | 26,433    |      |  |   | 60,404    |   |  |   | 51,619    |  
|Other                                                |  |                            | 103,320   |   |                          |   | 124,653   |      |  |   | 213,501   |   |  |   | 246,210   |  
|                                                     |  |                            |           |   |                          |   |           |      |  |   |           |  
|Total expenses                                       |  |                            | 639,358   |   |                          |   | 613,103   |      |  |   | 1,238,085 |   |  |   | 1,168,134 |  
|                                                     |  |                            |           |   |                          |   |           |      |  |   |           |  
|Income before income tax expense                     |  |                            | 459,047   |   |                          |   | 486,985   |      |  |   | 987,897   |   |  |   | 876,631   |  
|Income tax expense                                   |  |                            | 158,621   |   |                          |   | 214,147   |      |  |   | 365,676   |   |  |   | 369,086   |  
|                                                     |  |                            |           |   |                          |   |           |      |  |   |           |  
|Net Income                                           |  | $                          | 300,426   |   |                          | $ | 272,838   |      |  | $ | 622,221   |   |  | $ | 507,545   |  
|                                                     |  |                            |           |   |                          |   |           |      |  |   |           |  



2



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RESIDENTIAL CAPITAL CORPORATION





CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
STOCKHOLDERS EQUITY


Six Months Ended June 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                              |                                          |           |          |          |   |           | 622,221       |             |  | $             | 622,221 |         |               |         |        |   |   |           | 622,221   |        
|                           | Capital contributions                   |                                          |           | 2,103,681 |          |   |           |              |             |  |               |        |         |               |         |        |   |   |           | 2,103,681 |        
|                           | Other comprehensive income, net of tax: |                                          |           |           |          |   |           |               |             |  |               |         |         |               |         |         |   |   |           |           |        
|                           |                                         | Unrealized loss on investment securities |           |           |         |   |           |               |            |  |               |         | (7,337  | )             |         |         |  |   |           |           | (7,337  | )
|                           |                                         | Foreign currency translation adjustment  |           |           |         |   |           |               |            |  |               |         | (17,696 | )             |         |         |  |   |           |           | (17,696 | )
|                           |                                         | Unrealized loss on derivatives           |           |           |         |   |           |               |            |  |               |         | (5,932  | )             |         |         |  |   |           |           | (5,932  | )
|                           |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        
|                           | Other comprehensive income              |                                          |           |          |          |   |           |              |             |  |               | (30,965 | )       |               |         | (30,965 | ) |   |           |          |        
|                           |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        
|                           | Comprehensive income                    |                                          |           |          |          |   |           |              |             |  | $             | 591,256 |         |               |         |        |   |   |           |          |        
|                           |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        
|Balance at June 30, 2005   |                                         | $                                        | 3,350,459 |           |          | $ | 3,582,182 |               |             |  |               |         |         | $             | 128,041 |         |   | $ | 7,060,682 |          
|                           |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        
|Balance at January 1, 2004 |                                         | $                                        | 1,193,592 |           |          | $ | 1,991,749 |               |             |  |               |         |         | $             | 666     |         |   | $ | 3,186,007 |          
|                           | Net income                              |                                          |           |          |          |   |           | 507,545       |             |  | $             | 507,545 |         |               |         |        |   |   |           | 507,545   |        
|                           | Other comprehensive income, net of tax: |                                          |           |           |          |   |           |               |             |  |               |         |         |               |         |         |   |   |           |           |        
|                           |                                         | Unrealized loss on investment securities |           |           |         |   |           |               |            |  |               |         | (1,258  | )             |         |         |  |   |           |           | (1,258  | )
|                           |                                         | Foreign currency translation adjustment  |           |           |         |   |           |               |            |  |               |         | 1,377   |               |         |         |  |   |           |           | 1,377   |  
|                           |                                         | Unrealized gain on derivatives           |           |           |         |   |           |               |            |  |               |         | 130,027 |               |         |         |  |   |           |           | 130,027 |  
|                           |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        
|                           | Other comprehensive income              |                                          |           |          |          |   |           |              |             |  |               | 130,146 |         |               |         | 130,146 |   |   |           |          |        
|                           |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        
|                           | Comprehensive income                    |                                          |           |          |          |   |           |              |             |  | $             | 637,691 |         |               |         |        |   |   |           |          |        
|                           |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        
|Balance at June 30, 2004   |                                         | $                                        | 1,193,592 |           |          | $ | 2,499,294 |               |             |  |               |         |         | $             | 130,812 |         |   | $ | 3,823,698 |          
|                           |                                         |                                          |           |           |          |   |           |               |             |  |               |         |         |               |        



3



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##### 



RESIDENTIAL CAPITAL CORPORATION





CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS


|                                                                                         |                                                          |                          |             |            |      |   |             |             |  
|---------------------------------------------------------------------------------------- | -------------------------------------------------------- | ------------------------ | ----------- | ---------- | ---- | - | ----------- | ----------- | -
|                                                                                         |                                                          | Restated                 |            
|                                                                                         |                                                          |                          |            
|                                                                                         |                                                          | Six Months Ended June 30 |            
|                                                                                         |                                                          |                          |            
|                                                                                         |                                                          | 2005                     |             |            | 2004 |  
|                                                                                         |                                                          |                          |             |            |      |  
|                                                                                         |                                                          | (Unaudited)              |            
|                                                                                         |                                                          | (Dollars in Thousands)   |            
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                    |                                                          |                          |             |            |      |   |             |            
|Net income                                                                               |                                                          | $                        | 622,221     |            |      | $ | 507,545     |            
|Reconciliation of net income to net cash provided by (used in)
    operating activities: |                                                          |                          |             |            |      |   |             |            
|                                                                                         | Amortization and impairment of mortgage servicing rights |                          |             | 446,709    |      |   |             | 451,547     |  
|                                                                                         | Depreciation and amortization                            |                          |             | 358,177    |      |   |             | 177,932     |  
|                                                                                         | Provision for loan losses                                |                          |             | 297,926    |      |   |             | 379,852     |  
|                                                                                         | Gain on sale of mortgage loans, net                      |                          |             | (480,247   | )    |   |             | (420,435    | )
|                                                                                         | Net gain on sale of other assets                         |                          |             | (26,177    | )    |   |             | (18,208     | )
|Gain on valuation of derivatives                                                         |                                                          |                          | (304,942    | )          |      |   | (54,219     | )          
|Gain on investment securities                                                            |                                                          |                          | (73,494     | )          |      |   | (10,177     | )          
|Equity in earnings of investees in excess of cash received                               |                                                          |                          | (66,227     | )          |      |   | (62,952     | )          
|Loss (gain) on valuation of mortgage servicing rights                                    |                                                          |                          | 338,004     |            |      |   | (237,663    | )          
|Originations and purchases of mortgage loans held for sale                               |                                                          |                          | (71,219,250 | )          |      |   | (56,550,124 | )          
|Proceeds from sales and repayments of mortgage loans held for
    sale                   |                                                          |                          | 66,180,438  |            |      |   | 55,642,969  |            
|Deferred income tax                                                                      |                                                          |                          | (36,917     | )          |      |   | 578,617     |            
|Net change in:                                                                           |                                                          |                          |             |            |      |   |             |            
|                                                                                         | Trading securities                                       |                          |             | (952,148   | )    |   |             | 982,793     |  
|                                                                                         | Accounts receivable                                      |                          |             | 214,267    |      |   |             | (34,532     | )
|                                                                                         | Other assets                                             |                          |             | 373,805    |      |   |             | 1,153,625   |  
|                                                                                         | Other liabilities                                        |                          |             | (467,655   | )    |   |             | (1,251,965  | )
|                                                                                         |                                                          |                          |             |            |      |  
|                                                                                         | Net cash provided by (used in) operating activities      |                          |             | (4,795,510 | )    |   |             | 1,234,605   |  
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                    |                                                          |                          |             |            |      |   |             |            
|Net increase in lending receivables                                                      |                                                          |                          | (1,100,635  | )          |      |   | (1,100,260  | )          
|Originations and purchases of mortgage loans held for investment                         |                                                          |                          | (10,011,203 | )          |      |   | (18,829,454 | )          
|Proceeds from sales and repayments of mortgage loans held for
    investment             |                                                          |                          | 14,279,948  |            |      |   | 8,684,197   |            
|Purchases of available for sale securities                                               |                                                          |                          | (562,741    | )          |      |   | (382,056    | )          
|Proceeds from sales and repayments of available for sale
    securities                  |                                                          |                          | 444,958     |            |      |   | 11,695      |            
|Additions to mortgage servicing rights                                                   |                                                          |                          | (66,424     | )          |      |   | (126,112    | )          
|Purchase of and advances to investments in real estate and other                         |                                                          |                          | (428,821    | )          |      |   | (267,429    | )          
|Proceeds from sales of and returns of investments in real estate
    and other           |                                                          |                          | 373,444     |            |      |   | 351,072     |            
|Other, net                                                                               |                                                          |                          | 118,152     |            |      |   | 215,227     |            
|                                                                                         |                                                          |                          |             |            |      |  
|                                                                                         | Net cash provided by (used in) in investing activities   |                          |             | 3,046,678  |      |   |             | (11,443,120 | )
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                    |                                                          |                          |             |            |      |   |             |            
|Net increase (decrease) in affiliate borrowings                                          |                                                          |                          | 212,325     |            |      |   | (208,840    | )          
|Net increase (decrease) in other short-term borrowings                                   |                                                          |                          | 739,923     |            |      |   | (235,761    | )          
|Proceeds from issuance of collateralized borrowings in
    securitization trusts         |                                                          |                          | 6,829,583   |            |      |   | 17,016,524  |            
|Repayments of collateralized borrowings in securitization trusts                         |                                                          |                          | (10,817,845 | )          |      |   | (7,180,469  | )          
|Proceeds from other long-term borrowings                                                 |                                                          |                          | 4,825,963   |            |      |   |            |            
|Repayments of other long-term borrowings                                                 |                                                          |                          | (64,268     | )          |      |   | (209,124    | )          
|Increase in deposit liabilities                                                          |                                                          |                          | 1,326,026   |            |      |   | 650,680     |            
|                                                                                         |                                                          |                          |             |            |      |  
|                                                                                         | Net cash provided by financing activities                |                          |             | 3,051,707  |      |   |             | 9,833,010   |  
|Effect of foreign exchange rates on cash and cash equivalents                            |                                                          |                          | (12,569     | )          |      |   | 2,021       |            
|                                                                                         |                                                          |                          |             |            |      |  
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                     |                                                          |                          | 1,290,306   |            |      |   | (373,484    | )          
|CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                           |                                                          |                          | 899,083     |            |      |   | 941,093     |            
|                                                                                         |                                                          |                          |             |            |      |  
|CASH AND CASH EQUIVALENTS AT END OF PERIOD                                               |                                                          | $                        | 2,189,389   |            |      | $ | 567,609     |            
|                                                                                         |                                                          |                          |             |            |      |  
|SUPPLEMENTAL DISCLOSURES FOR NON-CASH TRANSACTIONS:                                      |                                                          |                          |             |            |      |   |             |            
|Capital contribution through forgiveness of affiliate borrowings                         |                                                          | $                        | 2,000,000   |            |      | $ |            |            
|Capital contributions of lending receivables                                             |                                                          |                          | 103,681     |            |      |   |            |            



4



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##### 



RESIDENTIAL CAPITAL CORPORATION





NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)




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











| |                                     
| | ------------------------------------
| | Restatement of Cash Flow Information

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




5



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##### 



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS
(Unaudited)  (Continued)




|                                                     |  |                           |            |   |      |   |             |  
|---------------------------------------------------- |  | ------------------------- | ---------- | - | ---- | - | ----------- | -
|                                                     |  | Six Months Ended June 30, |           
|                                                     |  |                           |           
|                                                     |  | 2005                      |            |   | 2005 |  
|                                                     |  |                           |            |   |      |  
|                                                     |  | (Dollars in thousands)    |           
|Net cash provided by (used in) operating activities: |  |                           |            |   |      |   |             |  
|As previously reported                               |  | $                         | (650,515   | ) |      | $ | 3,019,143   |  
|As restated                                          |  |                           | (4,795,510 | ) |      |   | 1,234,605   |  
|                                                    
|Net cash provided by (used in) investing activities: |  |                           |            |   |      |   |             |  
|As previously reported                               |  |                           | (1,098,317 | ) |      |   | (13,227,658 | )
|As restated                                          |  |                           | 3,046,678  |   |      |   | (11,443,120 | )



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

Accounting
for Certain Loans or Debt Securities Acquired in a Transfer


Accounting Changes and Error Corrections


6



---



##### 



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS
(Unaudited)  (Continued)




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



|                                     |  |                |           |  |              |   |           | 
|------------------------------------ |  | -------------- | --------- |  | ------------ | - | --------- | 
|                                     |  | June 30,       |           |  | December 31, |  
|                                     |  | 2005           |           |  | 2004         |  
|                                     |  |                |           |  |              |  
|                                     |  | (In thousands) |          
|Mortgage and asset-backed securities |  | $              | 1,535,601 |  |              | $ | 1,141,460 | 
|Residual interests                   |  |                | 1,098,791 |  |              |   | 1,033,544 | 
|Interest-only securities             |  |                | 189,451   |  |              |   | 187,835   | 
|Principal-only securities            |  |                | 24,707    |  |              |   | 200,666   | 
|U.S. Treasury securities             |  |                | 872,555   |  |              |   | 150,375   | 
|Other                                |  |                | 866       |  |              |   | 820       | 
|                                     |  |                |           |  |              |  
|Total                                |  | $              | 3,721,971 |  |              | $ | 2,714,700 | 
|                                     |  |                |           |  |              |  
|Net unrealized gains                 |  | $              | 123,802   |  |              | $ | 29,895    | 
|Pledged as collateral                |  |                | 2,366,791 |  |              |   | 2,252,532 | 





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



|                      |                                 |                |           |                  |       |   |       |        |  |   |            |        |   |   |           |           | 
|--------------------- | ------------------------------- | -------------- | --------- | ---------------- | ----- | - | ----- | ------ |  | - | ---------- | ------ | - | - | --------- | --------- | 
|                      |                                 | June 30, 2005  |          
|                      |                                 |                |          
|                      |                                 |                |           | Gross Unrealized |       |   |      
|                      |                                 |                |           |                  |       |   |      
|                      |                                 | Cost           |           |                  | Gains |   |       | Losses |  |   | Fair Value |       
|                      |                                 |                |           |                  |       |   |       |        |  |   |            |       
|                      |                                 | (In thousands) |          
|Debt securities:      |                                 |                |           |                  |       |   |       |        |  |   |            |        |   |   |           |          
|                      | U.S. Treasury securities        |                | $         | 1,251,621        |       |   | $     | 2,912  |  |   | $          | (2,346 | ) |   | $         | 1,252,187 | 
|                      | Mortgage-backed securities      |                |           | 88,232           |       |   |       | 141    |  |   |            | (588   | ) |   |           | 87,785    | 
|                      | Interest-only securities(a)     |                |           | 4,056            |       |   |       | 1,081  |  |   |            |       |   |   |           | 5,137     | 
|                      | Principal-only securities       |                |           | 226              |       |   |       | 158    |  |   |            |       |   |   |           | 384       | 
|                      | States & political subdivisions |                |           | 4,999            |       |   |       |       |  |   |            | (36    | ) |   |           | 4,963     | 
|                      | Other                           |                |           | 20,309           |       |   |       | 142    |  |   |            |       |   |   |           | 20,451    | 
|                      |                                 |                |           |                  |       |   |       |        |  |   |            |       
|Total debt securities |                                 |                | 1,369,443 |                  |       |   | 4,434 |        |  |   | (2,970     | )      |   |   | 1,370,907 |          
|Equity securities     |                                 |                | 1,500     |                  |       |   |      |        |  |   | (802       | )      |   |   | 698       |          
|                      |                                 |                |           |                  |       |   |       |        |  |   |            |       
|Total                 |                                 | $              | 1,370,943 |                  |       | $ | 4,434 |        |  | $ | (3,772     | )      |   | $ | 1,371,605 |          
|                      |                                 |                |           |                  |       |   |       |        |  |   |            |       

7



---



##### 



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS
(Unaudited)  (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 & 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.





|                            |  |                |        |   |      |   |      |  
|--------------------------- |  | -------------- | ------ | - | ---- | - | ---- | -
|Six Months Ended June 30,   |  | 2005           |        |   | 2004 |  
|                            |  |                |        |   |      |  
|                            |  | (In thousands) |       
|Gross realized gains        |  | $              | 22,511 |   |      | $ |     |  
|Gross realized losses       |  |                | (1,378 | ) |      |   | (740 | )
|                            |  |                |        |   |      |  
|Net realized gains (losses) |  | $              | 21,133 |   |      | $ | (740 | )
|                            |  |                |        |   |      |  





8



---



##### 



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS
(Unaudited)  (Continued)




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



|                               |       |                |            |            |              |   |            |            | 
|------------------------------ | ----- | -------------- | ---------- | ---------- | ------------ | - | ---------- | ---------- | 
|                               |       | June 30,       |            |            | December 31, |  
|                               |       | 2005           |            |            | 2004         |  
|                               |       |                |            |            |              |  
|                               |       | (In thousands) |           
|Prime conforming               |       | $              | 1,413,186  |            |              | $ | 972,705    |           
|Prime non-conforming           |       |                | 5,984,181  |            |              |   | 4,937,544  |           
|Nonprime                       |       |                | 45,838,628 |            |              |   | 47,425,595 |           
|Prime second-lien              |       |                | 3,317,282  |            |              |   | 4,370,767  |           
|Government                     |       |                | 1,115      |            |              |   | 1,699      |           
|                               |       |                |            |            |              |  
|                               | Total |                |            | 56,554,392 |              |   |            | 57,708,310 | 
|Less allowance for loan losses |       |                | (933,598   | )          |              |   | (872,954   | )         
|                               |       |                |            |            |              |  
|Total, net                     |       | $              | 55,620,794 |            |              | $ | 56,835,356 |           
|                               |       |                |            |            |              |  









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



|                               |       |                |            |            |              |   |           |           | 
|------------------------------ | ----- | -------------- | ---------- | ---------- | ------------ | - | --------- | --------- | 
|                               |       | June 30,       |            |            | December 31, |  
|                               |       | 2005           |            |            | 2004         |  
|                               |       |                |            |            |              |  
|                               |       | (In thousands) |           
|Warehouse                      |       | $              | 6,369,581  |            |              | $ | 5,481,622 |          
|Construction                   |       |                | 2,407,971  |            |              |   | 2,174,688 |          
|Commercial business            |       |                | 1,076,984  |            |              |   | 1,086,405 |          
|Healthcare                     |       |                | 588,614    |            |              |   | 399,770   |          
|Commercial real estate         |       |                | 207,582    |            |              |   | 311,659   |          
|Other                          |       |                | 46,792     |            |              |   | 44,976    |          
|                               |       |                |            |            |              |  
|                               | Total |                |            | 10,697,524 |              |   |           | 9,499,120 | 
|Less allowance for loan losses |       |                | (160,782   | )          |              |   | (141,723  | )        
|                               |       |                |            |            |              |  
|Total, net                     |       | $              | 10,536,742 |            |              | $ | 9,357,397 |          
|                               |       |                |            |            |              |  



9



---



##### 



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS
(Unaudited)  (Continued)




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



|                           |  |            |          |   |             |   |         |       |  |   |           |  
|-------------------------- |  | ---------- | -------- | - | ----------- | - | ------- | ----- |  | - | --------- | -
|                           |  | Mortgage   |          |   |             |   |        
|                           |  | Loans Held |          |   |             |   |        
|                           |  | for        |          |   | Lending     |   |         |      
|                           |  | Investment |          |   | Receivables |   |         | Total | 
|                           |  |            |          |   |             |   |         |       | 
|Balance at January 1, 2005 |  | $          | 872,954  |   |             | $ | 141,723 |       |  | $ | 1,014,677 |  
|Provision for loan losses  |  |            | 276,575  |   |             |   | 21,351  |       |  |   | 297,926   |  
|Charge-offs                |  |            | (239,072 | ) |             |   | (2,552  | )     |  |   | (241,624  | )
|Recoveries                 |  |            | 23,141   |   |             |   | 260     |       |  |   | 23,401    |  
|                           |  |            |          |   |             |   |         |       | 
|Balance at June 30, 2005   |  | $          | 933,598  |   |             | $ | 160,782 |       |  | $ | 1,094,380 |  
|                           |  |            |          |   |             |   |         |       | 
|Balance at January 1, 2004 |  | $          | 490,991  |   |             | $ | 126,959 |       |  | $ | 617,950   |  
|Provision for loan losses  |  |            | 363,238  |   |             |   | 16,614  |       |  |   | 379,852   |  
|Charge-offs                |  |            | (194,090 | ) |             |   | (20,054 | )     |  |   | (214,144  | )
|Recoveries                 |  |            | 6,280    |   |             |   | 104     |       |  |   | 6,384     |  
|                           |  |            |          |   |             |   |         |       | 
|Balance at June 30, 2004   |  | $          | 666,419  |   |             | $ | 123,623 |       |  | $ | 790,042   |  
|                           |  |            |          |   |             |   |         |       | 



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



|                                           |  |                |           |   |      |   |           |  
|------------------------------------------ |  | -------------- | --------- | - | ---- | - | --------- | -
|                                           |  | 2005           |           |   | 2004 |  
|                                           |  |                |           |   |      |  
|                                           |  | (In thousands) |          
|Balance at January 1                       |  | $              | 4,294,846 |   |      | $ | 4,333,609 |  
|Originations and purchases, net of sales   |  |                | 665,048   |   |      |   | 766,478   |  
|Amortization                               |  |                | (487,467  | ) |      |   | (370,276  | )
|Valuation adjustments for hedge accounting |  |                | (338,004  | ) |      |   | 237,663   |  
|Other than temporary impairment            |  |                | (20,514   | ) |      |   | (340,285  | )
|                                           |  |                |           |   |      |  
|Balance at June 30                         |  |                | 4,113,909 |   |      |   | 4,627,189 |  
|Valuation allowance                        |  |                | (867,582  | ) |      |   | (890,288  | )
|                                           |  |                |           |   |      |  
|Carrying value at June 30                  |  | $              | 3,246,327 |   |      | $ | 3,736,901 |  
|                                           |  |                |           |   |      |  
|Estimated fair value at June 30            |  | $              | 3,259,000 |   |      | $ | 3,739,000 |  
|                                           |  |                |           |   |      |  



|                                |  |                |         |   |      |   |           |  
|------------------------------- |  | -------------- | ------- | - | ---- | - | --------- | -
|                                |  | 2005           |         |   | 2004 |  
|                                |  |                |         |   |      |  
|                                |  | (In thousands) |        
|Balance at January 1            |  | $              | 928,854 |   |      | $ | 1,149,302 |  
|Additions (deductions)          |  |                | (40,758 | ) |      |   | 81,271    |  
|Other than temporary impairment |  |                | (20,514 | ) |      |   | (340,285  | )
|                                |  |                |         |   |      |  
|Balance at June 30              |  | $              | 867,582 |   |      | $ | 890,288   |  
|                                |  |                |         |   |      |  





10



---



##### 



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS
(Unaudited)  (Continued)




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



|                                                      |                                              |                        |            |            |              |   |            |           |            | 
|----------------------------------------------------- | -------------------------------------------- | ---------------------- | ---------- | ---------- | ------------ | - | ---------- | --------- | ---------- | 
|                                                      |                                              | June 30,               |            |            | December 31, |  
|                                                      |                                              | 2005                   |            |            | 2004         |  
|                                                      |                                              |                        |            |            |              |  
|                                                      |                                              | (In thousands)         |           
|Affiliate borrowings                                  |                                              | $                      | 8,253,463  |            |              | $ | 10,006,242 |          
|Collateralized borrowings in securitization trusts(a) |                                              |                        | 46,535,191 |            |              |   | 50,708,476 |          
|Other borrowings:                                     |                                              |                        |            |            |              |   |            |          
|                                                      | Secured aggregation facilities               |                        |            | 11,048,572 |              |   |            | 9,867,955 |           
|                                                      | Repurchase agreements                        |                        |            | 8,844,800  |              |   |            | 6,598,433 |           
|                                                      | Senior unsecured notes(a)                    |                        |            | 3,996,963  |              |   |            |          |           
|                                                      | FHLB advances  short-term                   |                        |            | 800,000    |              |   |            | 853,000   |           
|                                                      | FHLB advances  long-term(a)                 |                        |            | 1,293,000  |              |   |            | 654,000   |           
|                                                      | Debt collateralized by mortgage loans        |                        |            | 1,333,058  |              |   |            | 736,538   |           
|                                                      | Investor custodial funds                     |                        |            | 162,531    |              |   |            | 1,915,061 |           
|                                                      | Third-party bank credit facilities           |                        |            | 157,500    |              |   |            | 766,500   |           
|                                                      | Securities purchased under forward contracts |                        |            |           |              |   |            | 226,844   |           
|                                                      | Other  short-term                           |                        |            | 1,589,279  |              |   |            | 1,899,196 |           
|                                                      | Other  long-term(a)                         |                        |            | 192,550    |              |   |            | 186,123   |           
|                                                      |                                              |                        |            |            |              |  
|                                                      |                                              | Total other borrowings |            |            | 29,418,253   |   |            |           | 23,703,650 | 
|                                                      |                                              |                        |            |            |              |  
|Total borrowings                                      |                                              | $                      | 84,206,907 |            |              | $ | 84,418,368 |          
|                                                      |                                              |                        |            |            |              |  






|    |                                                                                       
|--- | --------------------------------------------------------------------------------------
|(a) | Represents borrowings with an original contractual maturity in
    excess of one year.



|                                   |                                       |                |            |            |              |   |            |            | 
|---------------------------------- | ------------------------------------- | -------------- | ---------- | ---------- | ------------ | - | ---------- | ---------- | 
|                                   |                                       | June 30,       |            |            | December 31, |  
|                                   |                                       | 2005           |            |            | 2004         |  
|                                   |                                       |                |            |            |              |  
|                                   |                                       | (In thousands) |           
|Mortgage loans held for investment |                                       | $              | 54,768,453 |            |              | $ | 55,370,161 |           
|Mortgage loans held for sale       |                                       |                | 11,448,836 |            |              |   | 10,996,204 |           
|Lending receivables                |                                       |                | 7,639,302  |            |              |   | 5,426,695  |           
|Trading securities                 |                                       |                | 2,366,791  |            |              |   | 2,213,045  |           
|Available for sale securities      |                                       |                | 1,252,188  |            |              |   | 1,114,532  |           
|Servicing advances                 |                                       |                | 640,831    |            |              |   |           |           
|Mortgage servicing rights          |                                       |                | 412,004    |            |              |   | 444,601    |           
|Other assets                       |                                       |                | 447,878    |            |              |   | 143,196    |           
|                                   |                                       |                |            |            |              |  
|                                   | Total assets restricted as collateral |                | $          | 78,976,283 |              |   | $          | 75,708,434 | 
|                                   |                                       |                |            |            |              |  
|Related secured debt               |                                       | $              | 70,494,633 |            |              | $ | 69,933,446 |           
|                                   |                                       |                |            |            |              |  

11



---



##### 



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS
(Unaudited)  (Continued)




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



|                                       |  |                |           |  |              |   |           | 
|-------------------------------------- |  | -------------- | --------- |  | ------------ | - | --------- | 
|                                       |  | June 30,       |           |  | December 31, |  
|                                       |  | 2005           |           |  | 2004         |  
|                                       |  |                |           |  |              |  
|                                       |  | (In thousands) |          
|Non-interest bearing deposits          |  | $              | 1,811,728 |  |              | $ | 1,302,677 | 
|NOW and money market checking accounts |  |                | 381,508   |  |              |   | 353,609   | 
|Certificates of deposit                |  |                | 797,760   |  |              |   | 8,684     | 
|                                       |  |                |           |  |              |  
|Total                                  |  | $              | 2,990,996 |  |              | $ | 1,664,970 | 
|                                       |  |                |           |  |              |  





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



12



---



##### 



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS
(Unaudited)  (Continued)




|                                                 |                                             |               |       |       |      |   |        |                                 |   |  |                                         
|------------------------------------------------ | ------------------------------------------- | ------------- | ----- | ----- | ---- | - | ------ | ------------------------------- | - |  | ----------------------------------------
|Six months ended June 30,                        |                                             | 2005          |       |       | 2004 |   |        | Income Statement Classification
|                                                 |                                             |               |       |       |      |   |        |                                
|                                                 |                                             | (In millions) |       |       |     
|Fair value hedge ineffectiveness gain (loss):    |                                             |               |       |       |      |   |        |                                 |   | 
|                                                 | Mortgage servicing rights                   |               | $     | 9.1   |      |   | $      | 41.7                            |   |  | Servicing asset valuation and hedge gain
|                                                 | Mortgage loans held for sale                |               |       | (14.7 | )    |   |        | (5.1                            | ) |  | Gain on sale of mortgage loans          
|                                                 | Senior unsecured notes                      |               |       | (1.6  | )    |   |        |                                |   |  | Interest expense                        
|Cash flow hedges ineffectiveness gain (loss):    |                                             |               |       |       |      |   |        |                                 |   | 
|                                                 | Debt and future debt issuance               |               |       | 0.3   |      |   |        | (1.5                            | ) |  | Interest expense                        
|Derivatives not designated as accounting hedges: |                                             |               |       |       |      |   |        |                                 |   | 
|                                                 | Mortgage loans held for sale and investment |               |       | (40.2 | )    |   |        | (11.5                           | ) |  | Gain on sale of mortgage loans          
|                                                 | Foreign currency debt                       |               |       | 0.4   |      |   |        | (8.4                            | ) |  | Interest expense                        
|                                                 | Mortgage servicing rights                   |               |       | 38.6  |      |   |        | (128.8                          | ) |  | Servicing asset valuation and hedge gain
|                                                 | Mortgage-related securities                 |               |       | (33.8 | )    |   |        | (81.5                           | ) |  | Gain (loss)on investment securities     
|                                                 | Other                                       |               |       | (3.9  | )    |   |        | (4.2                            | ) |  | Interest expense                        
|                                                 |                                             |               |       |       |      |   |        |                                
|Total                                            |                                             | $             | (45.8 | )     |      | $ | (199.3 | )                               |   | 
|                                                 |                                             |               |       |       |      |   |        |                                





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









13



---



##### 



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS
(Unaudited)  (Continued)








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



|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              |  |   |             |   |  |   |            |  
|-------------------------------- |  | -------------- | ---------- | ----------- | ------- | - | ---------- | ------- |  | ------------- | --------- | - |  | --------- | --------- | - | ------------ | - | ---------- | ------------ |  | - | ----------- | - |  | - | ---------- | -
|                                 |  |                |            | Residential |         |   | Business   |         |  | International |           |   |  |           |           |   |             
|                                 |  | GMAC           |            |             | Capital |   |            | Capital |  |               | Business  |   |  | Corporate |           |   |              |   |           
|Three Months Ended June 30,      |  | Residential    |            |             | Group   |   |            | Group   |  |               | Group     |   |  | and other |           |   | Eliminations |   |            | Consolidated | 
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 
|                                 |  | (In thousands) |           
|2005                             |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              |  |   |             |   |  |   |            |  
|Net interest income              |  | $              | 70,526     |             |         | $ | 335,216    |         |  | $             | 35,757    |   |  | $         | 47,340    |   |              | $ | 16,230     |              |  | $ |            |   |  | $ | 505,069    |  
|Provision for loan losses        |  |                | 4,002      |             |         |   | (132,091   | )       |  |               | (12,191   | ) |  |           | (2,074    | ) |              |   | 260        |              |  |   |            |   |  |   | (142,094   | )
|Other revenue                    |  |                | 301,001    |             |         |   | 153,047    |         |  |               | 66,260    |   |  |           | 84,607    |   |              |   | 130,515    |              |  |   |            |   |  |   | 735,430    |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 
|Total net revenue                |  |                | 375,529    |             |         |   | 356,172    |         |  |               | 89,826    |   |  |           | 129,873   |   |              |   | 147,005    |              |  |   |            |   |  |   | 1,098,405  |  
|Operating expenses               |  |                | 225,155    |             |         |   | 200,203    |         |  |               | 20,829    |   |  |           | 60,699    |   |              |   | 132,472    |              |  |   |            |   |  |   | 639,358    |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 
|Income before income tax expense |  |                | 150,374    |             |         |   | 155,969    |         |  |               | 68,997    |   |  |           | 69,174    |   |              |   | 14,533     |              |  |   |            |   |  |   | 459,047    |  
|Income tax expense (benefit)     |  |                | 57,540     |             |         |   | 58,472     |         |  |               | 25,657    |   |  |           | 20,650    |   |              |   | (3,698     | )            |  |   |            |   |  |   | 158,621    |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 
|Net income                       |  | $              | 92,834     |             |         | $ | 97,497     |         |  | $             | 43,340    |   |  | $         | 48,524    |   |              | $ | 18,231     |              |  | $ |            |   |  | $ | 300,426    |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 
|Total assets                     |  | $              | 19,420,718 |             |         | $ | 64,653,984 |         |  | $             | 4,959,319 |   |  | $         | 8,191,500 |   |              | $ | 12,080,166 |              |  | $ | (10,980,376 | ) |  | $ | 98,325,311 |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 

|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   |  |   |   |  |  |   |            |  
|--------------------------------------- |  | -------------- | ---------- | ----------- | ------- | - | ---------- | ------- |  | ------------- | --------- | - |  | --------- | --------- | - | ------------ | - | ------------ | - |  | - | - |  |  | - | ---------- | -
|                                        |  |                |            | Residential |         |   | Business   |         |  | International |           |   |  |           |           |   |             
|                                        |  | GMAC           |            |             | Capital |   |            | Capital |  |               | Business  |   |  | Corporate |           |   |              |   |             
|Three Months Ended June 30,             |  | Residential    |            |             | Group   |   |            | Group   |  |               | Group     |   |  | and other |           |   | Eliminations |   | Consolidated |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |  
|                                        |  | (In thousands) |           
|2004                                    |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   |  |   |   |  |  |   |            |  
|Net interest income (expense)           |  | $              | 90,814     |             |         | $ | 559,707    |         |  | $             | 31,440    |   |  | $         | 24,917    |   |              | $ | (5,288       | ) |  | $ |  |  |  | $ | 701,590    |  
|Provision for loan losses               |  |                | (1,193     | )           |         |   | (194,379   | )       |  |               | (150      | ) |  |           | (760      | ) |              |   | (151         | ) |  |   |  |  |  |   | (196,633   | )
|Other revenue                           |  |                | 262,694    |             |         |   | 70,922     |         |  |               | 49,444    |   |  |           | 74,968    |   |              |   | 137,103      |   |  |   |  |  |  |   | 595,131    |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 
|Total net revenue                       |  |                | 352,315    |             |         |   | 436,250    |         |  |               | 80,734    |   |  |           | 99,125    |   |              |   | 131,664      |   |  |   |  |  |  |   | 1,100,088  |  
|Operating expenses                      |  |                | 192,191    |             |         |   | 212,914    |         |  |               | 14,344    |   |  |           | 48,032    |   |              |   | 145,622      |   |  |   |  |  |  |   | 613,103    |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 
|Income (loss) before income tax expense |  |                | 160,124    |             |         |   | 223,336    |         |  |               | 66,390    |   |  |           | 51,093    |   |              |   | (13,958      | ) |  |   |  |  |  |   | 486,985    |  
|Income tax expense (benefit)            |  |                | 85,866     |             |         |   | 115,347    |         |  |               | 25,395    |   |  |           | 10,218    |   |              |   | (22,679      | ) |  |   |  |  |  |   | 214,147    |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 
|Net income                              |  | $              | 74,258     |             |         | $ | 107,989    |         |  | $             | 40,995    |   |  | $         | 40,875    |   |              | $ | 8,721        |   |  | $ |  |  |  | $ | 272,838    |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 
|Total assets                            |  | $              | 15,462,040 |             |         | $ | 63,506,704 |         |  | $             | 3,895,319 |   |  | $         | 5,425,704 |   |              | $ | 169,530      |   |  | $ |  |  |  | $ | 88,459,297 |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 

14



---



##### 



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS
(Unaudited)  (Continued)


|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              |  |   |             |   |  |   |            |  
|-------------------------------- |  | -------------- | ---------- | ----------- | ------- | - | ---------- | ------- |  | ------------- | --------- | - |  | --------- | --------- | - | ------------ | - | ---------- | ------------ |  | - | ----------- | - |  | - | ---------- | -
|                                 |  |                |            | Residential |         |   | Business   |         |  | International |           |   |  |           |           |   |             
|                                 |  | GMAC           |            |             | Capital |   |            | Capital |  |               | Business  |   |  | Corporate |           |   |              |   |           
|Six Months Ended June 30,        |  | Residential    |            |             | Group   |   |            | Group   |  |               | Group     |   |  | and other |           |   | Eliminations |   |            | Consolidated | 
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 
|                                 |  | (In thousands) |           
|2005                             |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              |  |   |             |   |  |   |            |  
|Net interest income              |  | $              | 143,741    |             |         | $ | 751,265    |         |  | $             | 72,971    |   |  | $         | 77,458    |   |              | $ | 10,331     |              |  | $ |            |   |  | $ | 1,055,766  |  
|Provision for loan losses        |  |                | 2,899      |             |         |   | (280,438   | )       |  |               | (19,663   | ) |  |           | (744      | ) |              |   | 20         |              |  |   |            |   |  |   | (297,926   | )
|Other revenue                    |  |                | 579,072    |             |         |   | 345,821    |         |  |               | 116,298   |   |  |           | 144,080   |   |              |   | 282,871    |              |  |   |            |   |  |   | 1,468,142  |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 
|Total net revenue                |  |                | 725,712    |             |         |   | 816,648    |         |  |               | 169,606   |   |  |           | 220,794   |   |              |   | 293,222    |              |  |   |            |   |  |   | 2,225,982  |  
|Operating expenses               |  |                | 429,588    |             |         |   | 414,955    |         |  |               | 38,039    |   |  |           | 119,111   |   |              |   | 236,392    |              |  |   |            |   |  |   | 1,238,085  |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 
|Income before income tax expense |  |                | 296,124    |             |         |   | 401,693    |         |  |               | 131,567   |   |  |           | 101,683   |   |              |   | 56,830     |              |  |   |            |   |  |   | 987,897    |  
|Income tax expense               |  |                | 124,099    |             |         |   | 152,662    |         |  |               | 49,640    |   |  |           | 30,513    |   |              |   | 8,762      |              |  |   |            |   |  |   | 365,676    |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 
|Net income                       |  | $              | 172,025    |             |         | $ | 249,031    |         |  | $             | 81,927    |   |  | $         | 71,170    |   |              | $ | 48,068     |              |  | $ |            |   |  | $ | 622,221    |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 
|Total assets                     |  | $              | 19,420,718 |             |         | $ | 64,653,984 |         |  | $             | 4,959,319 |   |  | $         | 8,191,500 |   |              | $ | 12,080,166 |              |  | $ | (10,980,376 | ) |  | $ | 98,325,311 |  
|                                 |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |            |              | 

|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   |  |   |   |  |  |   |            |  
|--------------------------------------- |  | -------------- | ---------- | ----------- | ------- | - | ---------- | ------- |  | ------------- | --------- | - |  | --------- | --------- | - | ------------ | - | ------------ | - |  | - | - |  |  | - | ---------- | -
|                                        |  |                |            | Residential |         |   | Business   |         |  | International |           |   |  |           |           |   |             
|                                        |  | GMAC           |            |             | Capital |   |            | Capital |  |               | Business  |   |  | Corporate |           |   |              |   |             
|Six Months Ended June 30,               |  | Residential    |            |             | Group   |   |            | Group   |  |               | Group     |   |  | and other |           |   | Eliminations |   | Consolidated |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |  
|                                        |  | (In thousands) |           
|2004                                    |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   |  |   |   |  |  |   |            |  
|Net interest income (expense)           |  | $              | 165,158    |             |         | $ | 1,044,278  |         |  | $             | 53,143    |   |  | $         | 46,615    |   |              | $ | (11,090      | ) |  | $ |  |  |  | $ | 1,298,104  |  
|Provision for loan losses               |  |                | (2,709     | )           |         |   | (369,764   | )       |  |               | (5,359    | ) |  |           | (1,774    | ) |              |   | (246         | ) |  |   |  |  |  |   | (379,852   | )
|Other revenue                           |  |                | 438,435    |             |         |   | 247,138    |         |  |               | 92,062    |   |  |           | 114,671   |   |              |   | 234,207      |   |  |   |  |  |  |   | 1,126,513  |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 
|Total net revenue                       |  |                | 600,884    |             |         |   | 921,652    |         |  |               | 139,846   |   |  |           | 159,512   |   |              |   | 222,871      |   |  |   |  |  |  |   | 2,044,765  |  
|Operating expenses                      |  |                | 379,730    |             |         |   | 414,800    |         |  |               | 28,341    |   |  |           | 92,132    |   |              |   | 253,131      |   |  |   |  |  |  |   | 1,168,134  |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 
|Income (loss) before income tax expense |  |                | 221,154    |             |         |   | 506,852    |         |  |               | 111,505   |   |  |           | 67,380    |   |              |   | (30,260      | ) |  |   |  |  |  |   | 876,631    |  
|Income tax expense (benefit)            |  |                | 109,908    |             |         |   | 223,747    |         |  |               | 42,651    |   |  |           | 13,738    |   |              |   | (20,958      | ) |  |   |  |  |  |   | 369,086    |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 
|Net income (loss)                       |  | $              | 111,246    |             |         | $ | 283,105    |         |  | $             | 68,854    |   |  | $         | 53,642    |   |              | $ | (9,302       | ) |  | $ |  |  |  | $ | 507,545    |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 
|Total assets                            |  | $              | 15,462,040 |             |         | $ | 63,506,704 |         |  | $             | 3,895,319 |   |  | $         | 5,425,704 |   |              | $ | 169,530      |   |  | $ |  |  |  | $ | 88,459,297 |  
|                                        |  |                |            |             |         |   |            |         |  |               |           |   |  |           |           |   |              |   |              |   | 



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





|                          |  |          |     |   |                  |  |      |          |  |  |              |   |  |  |      |  
|------------------------- |  | -------- | --- | - | ---------------- |  | ---- | -------- |  |  | ------------ | - |  |  | ---- | -
|                          |  | Minimum  |     |   | Minimum to be    |  |      | June 30, |  |  | December 31, |  
|                          |  | required |     |   | well-capitalized |  |      | 2005     |  |  | 2004         |  
|                          |  |          |     |   |                  |  |      |          |  |  |              |  
|Tier 1 leverage           |  |          | 4.0 | % |                  |  | 5.0  | %        |  |  | 10.4         | % |  |  | 11.9 | %
|Tier 1 risk-based capital |  |          | 4.0 |   |                  |  | 6.0  |          |  |  | 17.2         |   |  |  | 17.3 |  
|Total risk-based capital  |  |          | 8.0 |   |                  |  | 10.0 |          |  |  | 17.3         |   |  |  | 17.5 |  

15



---



##### 



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS
(Unaudited)  (Continued)




|    |                                   
|--- | ----------------------------------
|14. | Supplemental Financial Information





16



---



##### 



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING BALANCE SHEET


June 30, 2005


|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |             |             |             |   |            |            |            | 
|------------------------------------------ | -------------------------------------------------- | ---------------------- | ---------- | --------- | ------------ | - | ------------- | ------------ | ---------- | - | ------------ | ---------- | ---------- | ------------ | ----------- | ----------- | ----------- | - | ---------- | ---------- | ---------- | 
|                                           |                                                    |                        |            | Guarantor |              |   | Non-Guarantor |              |            |   |              |           
|                                           |                                                    | Parent                 |            |           | Subsidiaries |   |               | Subsidiaries |            |   | Eliminations |            |            | Consolidated |            
|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |            
|                                           |                                                    | (Dollars in thousands) |           
|ASSETS                                     |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |             |             |             |   |            |           
|Cash and cash equivalents                  |                                                    | $                      | 1,541,257  |           |              | $ | 118,184       |              |            | $ | 589,223      |            |            | $            | (59,275     | )           |             | $ | 2,189,389  |           
|Mortgage loans held for sale               |                                                    |                        |           |           |              |   | 7,255,434     |              |            |   | 7,761,344    |            |            |              | 3,492       |             |             |   | 15,020,270 |           
|Trading securities                         |                                                    |                        |           |           |              |   | 1,513,453     |              |            |   | 2,219,937    |            |            |              | (11,419     | )           |             |   | 3,721,971  |           
|Available for sale securities              |                                                    |                        |           |           |              |   | 1,258,406     |              |            |   | 113,199      |            |            |              |            |             |             |   | 1,371,605  |           
|Mortgage loans held for investment, net    |                                                    |                        |           |           |              |   | 660,317       |              |            |   | 54,960,477   |            |            |              |            |             |             |   | 55,620,794 |           
|Lending receivables, net                   |                                                    |                        |           |           |              |   | 2,420,592     |              |            |   | 8,126,035    |            |            |              | (9,885      | )           |             |   | 10,536,742 |           
|Mortgage servicing rights, net             |                                                    |                        |           |           |              |   | 3,242,631     |              |            |   | 3,696        |            |            |              |            |             |             |   | 3,246,327  |           
|Accounts receivable                        |                                                    |                        | 837        |           |              |   | 925,194       |              |            |   | 1,322,303    |            |            |              | (364,299    | )           |             |   | 1,884,035  |           
|Investments in real estate and other       |                                                    |                        |           |           |              |   | 216,365       |              |            |   | 1,310,020    |            |            |              |            |             |             |   | 1,526,385  |           
|Goodwill                                   |                                                    |                        |           |           |              |   | 214,073       |              |            |   | 235,953      |            |            |              |            |             |             |   | 450,026    |           
|Other assets                               |                                                    |                        | 24,491     |           |              |   | 5,212,518     |              |            |   | 2,045,486    |            |            |              | (4,524,728  | )           |             |   | 2,757,767  |           
|Investment in and loans to subsidiaries    |                                                    |                        | 16,035,859 |           |              |   | 3,462,620     |              |            |   |             |            |            |              | (19,498,479 | )           |             |   |           |           
|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |            
|Total assets                               |                                                    | $                      | 17,602,444 |           |              | $ | 26,499,787    |              |            | $ | 78,687,673   |            |            | $            | (24,464,593 | )           |             | $ | 98,325,311 |           
|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |            
|                                          
|LIABILITIES                                |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |             |             |             |   |            |           
|Borrowings:                                |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |             |             |             |   |            |           
|                                           | Affiliate borrowings                               |                        | $          | 6,500,000 |              |   | $             | 10,874,000   |            |   | $            | 1,824,463  |            |              | $           | (10,945,000 | )           |   | $          | 8,253,463  |           
|                                           | Collateralized borrowings in securitization trusts |                        |            |          |              |   |               | 1,220        |            |   |              | 46,545,390 |            |              |             | (11,419     | )           |   |            | 46,535,191 |           
|                                           | Other borrowings                                   |                        |            | 3,996,963 |              |   |               | 7,557,806    |            |   |              | 18,237,651 |            |              |             | (374,167    | )           |   |            | 29,418,253 |           
|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |            
|                                           |                                                    | Total borrowings       |            |           | 10,496,963   |   |               |              | 18,433,026 |   |              |            | 66,607,504 |              |             |             | (11,330,586 | ) |            |            | 84,206,907 | 
|Deposit liabilities                        |                                                    |                        |           |           |              |   |              |              |            |   | 3,050,271    |            |            |              | (59,275     | )           |             |   | 2,990,996  |           
|Other liabilities                          |                                                    |                        | 44,799     |           |              |   | 3,011,278     |              |            |   | 5,578,710    |            |            |              | (4,568,061  | )           |             |   | 4,066,726  |           
|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |            
|Total liabilities                          |                                                    |                        | 10,541,762 |           |              |   | 21,444,304    |              |            |   | 75,236,485   |            |            |              | (15,957,922 | )           |             |   | 91,264,629 |           
|                                          
|STOCKHOLDERS EQUITY                       |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |             |             |             |   |            |           
|Common stock and paid-in capital           |                                                    |                        | 3,350,459  |           |              |   | 1,350,460     |              |            |   | 1,282,608    |            |            |              | (2,633,068  | )           |             |   | 3,350,459  |           
|Retained earnings                          |                                                    |                        | 3,582,182  |           |              |   | 3,576,982     |              |            |   | 2,040,470    |            |            |              | (5,617,452  | )           |             |   | 3,582,182  |           
|Accumulated other comprehensive income     |                                                    |                        | 128,041    |           |              |   | 128,041       |              |            |   | 128,110      |            |            |              | (256,151    | )           |             |   | 128,041    |           
|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |            
|Total stockholders equity                 |                                                    |                        | 7,060,682  |           |              |   | 5,055,483     |              |            |   | 3,451,188    |            |            |              | (8,506,671  | )           |             |   | 7,060,682  |           
|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |            
|Total liabilities and stockholders equity |                                                    | $                      | 17,602,444 |           |              | $ | 26,499,787    |              |            | $ | 78,687,673   |            |            | $            | (24,464,593 | )           |             | $ | 98,325,311 |           
|                                           |                                                    |                        |            |           |              |   |               |              |            |   |              |            |            |              |            

17



---



##### 



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF INCOME


Three Months Ended June 30, 2005


|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |          |   |  |   |           |  
|---------------------------------------------------- |  | ---------------------- | ------- | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | - |  | ------------ | -------- | - |  | - | --------- | -
|                                                     |  |                        |         | Guarantor |              |   | Non-Guarantor |              |  |   |              |  
|                                                     |  | Parent                 |         |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |   |  | Consolidated |         
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|                                                     |  | (Dollars in thousands) |        
|Revenue                                              |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |          |   |  |   |           |  
|Interest income                                      |  | $                      | 67,538  |           |              | $ | 259,162       |              |  | $ | 1,108,536    |   |  | $            | (80,106  | ) |  | $ | 1,355,130 |  
|Interest expense                                     |  |                        | 57,466  |           |              |   | 171,028       |              |  |   | 700,605      |   |  |              | (79,038  | ) |  |   | 850,061   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|Net interest income                                  |  |                        | 10,072  |           |              |   | 88,134        |              |  |   | 407,931      |   |  |              | (1,068   | ) |  |   | 505,069   |  
|Provision for loan losses                            |  |                        |        |           |              |   | 33,634        |              |  |   | 108,460      |   |  |              |         |   |  |   | 142,094   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|Net interest income after provision for loan losses  |  |                        | 10,072  |           |              |   | 54,500        |              |  |   | 299,471      |   |  |              | (1,068   | ) |  |   | 362,975   |  
|Gain on sale of mortgage loans, net                  |  |                        |        |           |              |   | 80,088        |              |  |   | 70,851       |   |  |              | (335     | ) |  |   | 150,604   |  
|Servicing fees                                       |  |                        |        |           |              |   | 354,506       |              |  |   | (8,709       | ) |  |              | (541     | ) |  |   | 345,256   |  
|Amortization and impairment of servicing rights      |  |                        |        |           |              |   | (307,170      | )            |  |   | 241          |   |  |              |         |   |  |   | (306,929  | )
|Servicing asset valuation and hedge gain, net        |  |                        |        |           |              |   | 161,128       |              |  |   |             |   |  |              |         |   |  |   | 161,128   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|Net servicing fees                                   |  |                        |        |           |              |   | 208,464       |              |  |   | (8,468       | ) |  |              | (541     | ) |  |   | 199,455   |  
|Gain (loss) on investment securities, net            |  |                        | (1,553  | )         |              |   | 46,387        |              |  |   | 58,635       |   |  |              |         |   |  |   | 103,469   |  
|Real estate related revenues                         |  |                        |        |           |              |   | 59,009        |              |  |   | 134,676      |   |  |              |         |   |  |   | 193,685   |  
|Other income                                         |  |                        | 1       |           |              |   | 18,787        |              |  |   | 93,404       |   |  |              | (23,975  | ) |  |   | 88,217    |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|Total net revenue                                    |  |                        | 8,520   |           |              |   | 467,235       |              |  |   | 648,569      |   |  |              | (25,919  | ) |  |   | 1,098,405 |  
|Expenses                                             |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |          |   |  |   |           |  
|Compensation and benefits                            |  |                        |        |           |              |   | 217,883       |              |  |   | 146,992      |   |  |              |         |   |  |   | 364,875   |  
|Professional fees                                    |  |                        | 15      |           |              |   | 33,711        |              |  |   | 12,359       |   |  |              |         |   |  |   | 46,085    |  
|Data processing and telecommunications               |  |                        |        |           |              |   | 36,179        |              |  |   | 11,449       |   |  |              |         |   |  |   | 47,628    |  
|Advertising                                          |  |                        |        |           |              |   | 35,798        |              |  |   | 10,815       |   |  |              |         |   |  |   | 46,613    |  
|Occupancy                                            |  |                        |        |           |              |   | 19,108        |              |  |   | 11,729       |   |  |              |         |   |  |   | 30,837    |  
|Other                                                |  |                        | 85      |           |              |   | 92,997        |              |  |   | 51,504       |   |  |              | (41,266  | ) |  |   | 103,320   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|Total expenses                                       |  |                        | 100     |           |              |   | 435,676       |              |  |   | 244,848      |   |  |              | (41,266  | ) |  |   | 639,358   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|Income before income tax expense                     |  |                        | 8,420   |           |              |   | 31,559        |              |  |   | 403,721      |   |  |              | 15,347   |   |  |   | 459,047   |  
|Income tax expense                                   |  |                        | 3,220   |           |              |   | 14,299        |              |  |   | 135,236      |   |  |              | 5,866    |   |  |   | 158,621   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|Income before equity in net earnings of subsidiaries |  |                        | 5,200   |           |              |   | 17,260        |              |  |   | 268,485      |   |  |              | 9,481    |   |  |   | 300,426   |  
|Equity in net earnings of subsidiaries               |  |                        | 295,226 |           |              |   | 277,966       |              |  |   |             |   |  |              | (573,192 | ) |  |   |          |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         
|Net income                                           |  | $                      | 300,426 |           |              | $ | 295,226       |              |  | $ | 268,485      |   |  | $            | (563,711 | ) |  | $ | 300,426   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |         

18



---



##### 



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF INCOME


Three Months Ended June 30, 2004


|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |          |   |  |   |           |  
|----------------------------------------------------------- |  | ---------------------- | - | ------------ |  | - | ------------- | - |  | ------------ | --------- | - | ------------ | - | -------- | - |  | - | --------- | -
|                                                            |  |                        |   | Guarantor    |  |   | Non-Guarantor |   |  |              |           |  
|                                                            |  | Parent                 |   | Subsidiaries |  |   | Subsidiaries  |   |  | Eliminations |           |   | Consolidated |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |  
|                                                            |  | (Dollars in thousands) |  
|Revenue                                                     |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |          |   |  |   |           |  
|Interest income                                             |  | $                      |  |              |  | $ | 182,574       |   |  | $            | 1,081,188 |   |              | $ | (6,838   | ) |  | $ | 1,256,924 |  
|Interest expense                                            |  |                        |  |              |  |   | 91,518        |   |  |              | 472,121   |   |              |   | (8,305   | ) |  |   | 555,334   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Net interest income                                         |  |                        |  |              |  |   | 91,056        |   |  |              | 609,067   |   |              |   | 1,467    |   |  |   | 701,590   |  
|Provision for loan losses                                   |  |                        |  |              |  |   | 90,672        |   |  |              | 105,961   |   |              |   |         |   |  |   | 196,633   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Net interest income after provision for loan losses         |  |                        |  |              |  |   | 384           |   |  |              | 503,106   |   |              |   | 1,467    |   |  |   | 504,957   |  
|Gain on sale of mortgage loans, net                         |  |                        |  |              |  |   | 143,231       |   |  |              | 74,909    |   |              |   | (140     | ) |  |   | 218,000   |  
|Servicing fees                                              |  |                        |  |              |  |   | 321,657       |   |  |              | (8,546    | ) |              |   | (566     | ) |  |   | 312,545   |  
|Amortization and impairment of servicing rights             |  |                        |  |              |  |   | (135,676      | ) |  |              | 92        |   |              |   |         |   |  |   | (135,584  | )
|Servicing asset valuation and hedge loss, net               |  |                        |  |              |  |   | (84,889       | ) |  |              | (30,836   | ) |              |   |         |   |  |   | (115,725  | )
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Net servicing fees                                          |  |                        |  |              |  |   | 101,092       |   |  |              | (39,290   | ) |              |   | (566     | ) |  |   | 61,236    |  
|Gain (loss) on investment securities, net                   |  |                        |  |              |  |   | (2,643        | ) |  |              | 59,762    |   |              |   |         |   |  |   | 57,119    |  
|Real estate related revenues                                |  |                        |  |              |  |   | 46,073        |   |  |              | 133,884   |   |              |   |         |   |  |   | 179,957   |  
|Other income                                                |  |                        |  |              |  |   | 28,593        |   |  |              | 72,167    |   |              |   | (21,941  | ) |  |   | 78,819    |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Total net revenue                                           |  |                        |  |              |  |   | 316,730       |   |  |              | 804,538   |   |              |   | (21,180  | ) |  |   | 1,100,088 |  
|Expenses                                                    |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |          |   |  |   |           |  
|Compensation and benefits                                   |  |                        |  |              |  |   | 191,994       |   |  |              | 137,013   |   |              |   |         |   |  |   | 329,007   |  
|Professional fees                                           |  |                        |  |              |  |   | 38,496        |   |  |              | 10,390    |   |              |   |         |   |  |   | 48,886    |  
|Data processing and telecommunications                      |  |                        |  |              |  |   | 34,784        |   |  |              | 11,957    |   |              |   |         |   |  |   | 46,741    |  
|Advertising                                                 |  |                        |  |              |  |   | 30,604        |   |  |              | 6,779     |   |              |   |         |   |  |   | 37,383    |  
|Occupancy                                                   |  |                        |  |              |  |   | 16,793        |   |  |              | 9,640     |   |              |   |         |   |  |   | 26,433    |  
|Other                                                       |  |                        |  |              |  |   | 70,258        |   |  |              | 75,436    |   |              |   | (21,041  | ) |  |   | 124,653   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Total expenses                                              |  |                        |  |              |  |   | 382,929       |   |  |              | 251,215   |   |              |   | (21,041  | ) |  |   | 613,103   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Income (loss) before income tax expense                     |  |                        |  |              |  |   | (66,199       | ) |  |              | 553,323   |   |              |   | (139     | ) |  |   | 486,985   |  
|Income tax expense                                          |  |                        |  |              |  |   | 20,811        |   |  |              | 193,385   |   |              |   | (49      | ) |  |   | 214,147   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Income (loss) before equity in net earnings of subsidiaries |  |                        |  |              |  |   | (87,010       | ) |  |              | 359,938   |   |              |   | (90      | ) |  |   | 272,838   |  
|Equity in net earnings of subsidiaries                      |  |                        |  |              |  |   | 359,848       |   |  |              |          |   |              |   | (359,848 | ) |  |   |          |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Net income                                                  |  | $                      |  |              |  | $ | 272,838       |   |  | $            | 359,938   |   |              | $ | (359,938 | ) |  | $ | 272,838   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         

19



---



##### 



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF INCOME


Six Months Ended June 30, 2005


|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |           |  
|---------------------------------------------------- |  | ---------------------- | ------- | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | - |  | ------------ | ---------- | - |  | - | --------- | -
|                                                     |  |                        |         | Guarantor |              |   | Non-Guarantor |              |  |   |              |  
|                                                     |  | Parent                 |         |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |   |  | Consolidated |           
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|                                                     |  | (Dollars in thousands) |        
|Revenue                                              |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |           |  
|Interest income                                      |  | $                      | 67,538  |           |              | $ | 470,818       |              |  | $ | 2,223,286    |   |  | $            | (89,905    | ) |  | $ | 2,671,737 |  
|Interest expense                                     |  |                        | 57,466  |           |              |   | 290,341       |              |  |   | 1,359,117    |   |  |              | (90,953    | ) |  |   | 1,615,971 |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|Net interest income                                  |  |                        | 10,072  |           |              |   | 180,477       |              |  |   | 864,169      |   |  |              | 1,048      |   |  |   | 1,055,766 |  
|Provision for loan losses                            |  |                        |        |           |              |   | 88,447        |              |  |   | 209,479      |   |  |              |           |   |  |   | 297,926   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|Net interest income after provision for loan losses  |  |                        | 10,072  |           |              |   | 92,030        |              |  |   | 654,690      |   |  |              | 1,048      |   |  |   | 757,840   |  
|Gain on sale of mortgage loans, net                  |  |                        |        |           |              |   | 251,514       |              |  |   | 228,216      |   |  |              | 517        |   |  |   | 480,247   |  
|Servicing fees                                       |  |                        |        |           |              |   | 700,543       |              |  |   | (13,472      | ) |  |              | (1,048     | ) |  |   | 686,023   |  
|Amortization and impairment of servicing rights      |  |                        |        |           |              |   | (447,275      | )            |  |   | 566          |   |  |              |           |   |  |   | (446,709  | )
|Servicing asset valuation and hedge gain, net        |  |                        |        |           |              |   | 93,267        |              |  |   |             |   |  |              |           |   |  |   | 93,267    |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|Net servicing fees                                   |  |                        |        |           |              |   | 346,535       |              |  |   | (12,906      | ) |  |              | (1,048     | ) |  |   | 332,581   |  
|Gain (loss) on investment securities, net            |  |                        | (1,553  | )         |              |   | 100,620       |              |  |   | 76,517       |   |  |              |           |   |  |   | 175,584   |  
|Real estate related revenues                         |  |                        |        |           |              |   | 105,723       |              |  |   | 219,336      |   |  |              |           |   |  |   | 325,059   |  
|Other income                                         |  |                        | 1       |           |              |   | 37,109        |              |  |   | 168,923      |   |  |              | (51,362    | ) |  |   | 154,671   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|Total net revenue                                    |  |                        | 8,520   |           |              |   | 933,531       |              |  |   | 1,334,776    |   |  |              | (50,845    | ) |  |   | 2,225,982 |  
|Expenses                                             |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |           |  
|Compensation and benefits                            |  |                        |        |           |              |   | 426,506       |              |  |   | 258,300      |   |  |              |           |   |  |   | 684,806   |  
|Professional fees                                    |  |                        | 15      |           |              |   | 74,470        |              |  |   | 21,898       |   |  |              |           |   |  |   | 96,383    |  
|Data processing and telecommunications               |  |                        |        |           |              |   | 69,327        |              |  |   | 27,746       |   |  |              |           |   |  |   | 97,073    |  
|Advertising                                          |  |                        |        |           |              |   | 68,421        |              |  |   | 17,497       |   |  |              |           |   |  |   | 85,918    |  
|Occupancy                                            |  |                        |        |           |              |   | 37,762        |              |  |   | 22,642       |   |  |              |           |   |  |   | 60,404    |  
|Other                                                |  |                        | 85      |           |              |   | 161,644       |              |  |   | 119,478      |   |  |              | (67,706    | ) |  |   | 213,501   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|Total expenses                                       |  |                        | 100     |           |              |   | 838,130       |              |  |   | 467,561      |   |  |              | (67,706    | ) |  |   | 1,238,085 |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|Income before income tax expense                     |  |                        | 8,420   |           |              |   | 95,401        |              |  |   | 867,215      |   |  |              | 16,861     |   |  |   | 987,897   |  
|Income tax expense                                   |  |                        | 3,220   |           |              |   | 65,354        |              |  |   | 290,686      |   |  |              | 6,416      |   |  |   | 365,676   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|Income before equity in net earnings of subsidiaries |  |                        | 5,200   |           |              |   | 30,047        |              |  |   | 576,529      |   |  |              | 10,445     |   |  |   | 622,221   |  
|Equity in net earnings of subsidiaries               |  |                        | 617,021 |           |              |   | 586,974       |              |  |   |             |   |  |              | (1,203,995 | ) |  |   |          |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           
|Net income                                           |  | $                      | 622,221 |           |              | $ | 617,021       |              |  | $ | 576,529      |   |  | $            | (1,193,550 | ) |  | $ | 622,221   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |   |  |              |           

20



---



##### 



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF INCOME


Six Months Ended June 30, 2004


|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |          |   |  |   |           |  
|----------------------------------------------------------- |  | ---------------------- | - | ------------ |  | - | ------------- | - |  | ------------ | --------- | - | ------------ | - | -------- | - |  | - | --------- | -
|                                                            |  |                        |   | Guarantor    |  |   | Non-Guarantor |   |  |              |           |  
|                                                            |  | Parent                 |   | Subsidiaries |  |   | Subsidiaries  |   |  | Eliminations |           |   | Consolidated |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |  
|                                                            |  | (Dollars in thousands) |  
|Revenue                                                     |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |          |   |  |   |           |  
|Interest income                                             |  | $                      |  |              |  | $ | 371,817       |   |  | $            | 1,997,853 |   |              | $ | (11,000  | ) |  | $ | 2,358,670 |  
|Interest expense                                            |  |                        |  |              |  |   | 170,709       |   |  |              | 902,324   |   |              |   | (12,467  | ) |  |   | 1,060,566 |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Net interest income                                         |  |                        |  |              |  |   | 201,108       |   |  |              | 1,095,529 |   |              |   | 1,467    |   |  |   | 1,298,104 |  
|Provision for loan losses                                   |  |                        |  |              |  |   | 161,345       |   |  |              | 218,507   |   |              |   |         |   |  |   | 379,852   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Net interest income after provision for loan losses         |  |                        |  |              |  |   | 39,763        |   |  |              | 877,022   |   |              |   | 1,467    |   |  |   | 918,252   |  
|Gain on sale of mortgage loans, net                         |  |                        |  |              |  |   | 254,843       |   |  |              | 171,400   |   |              |   | (5,808   | ) |  |   | 420,435   |  
|Servicing fees                                              |  |                        |  |              |  |   | 634,068       |   |  |              | (16,432   | ) |              |   | (1,467   | ) |  |   | 616,169   |  
|Amortization and impairment of servicing rights             |  |                        |  |              |  |   | (451,738      | ) |  |              | 191       |   |              |   |         |   |  |   | (451,547  | )
|Servicing asset valuation and hedge gain (loss), net        |  |                        |  |              |  |   | 45,514        |   |  |              | (30,836   | ) |              |   |         |   |  |   | 14,678    |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Net servicing fees                                          |  |                        |  |              |  |   | 227,844       |   |  |              | (47,077   | ) |              |   | (1,467   | ) |  |   | 179,300   |  
|Gain on investment securities, net                          |  |                        |  |              |  |   | 40,204        |   |  |              | 28,078    |   |              |   |         |   |  |   | 68,282    |  
|Real estate related revenues                                |  |                        |  |              |  |   | 77,832        |   |  |              | 212,015   |   |              |   |         |   |  |   | 289,847   |  
|Other income                                                |  |                        |  |              |  |   | 67,348        |   |  |              | 141,604   |   |              |   | (40,303  | ) |  |   | 168,649   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Total net revenue                                           |  |                        |  |              |  |   | 707,834       |   |  |              | 1,383,042 |   |              |   | (46,111  | ) |  |   | 2,044,765 |  
|Expenses                                                    |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |          |   |  |   |           |  
|Compensation and benefits                                   |  |                        |  |              |  |   | 380,437       |   |  |              | 232,833   |   |              |   |         |   |  |   | 613,270   |  
|Professional fees                                           |  |                        |  |              |  |   | 74,036        |   |  |              | 19,287    |   |              |   |         |   |  |   | 93,323    |  
|Data processing and telecommunications                      |  |                        |  |              |  |   | 69,168        |   |  |              | 23,623    |   |              |   |         |   |  |   | 92,791    |  
|Advertising                                                 |  |                        |  |              |  |   | 58,779        |   |  |              | 12,142    |   |              |   |         |   |  |   | 70,921    |  
|Occupancy                                                   |  |                        |  |              |  |   | 33,022        |   |  |              | 18,597    |   |              |   |         |   |  |   | 51,619    |  
|Other                                                       |  |                        |  |              |  |   | 152,537       |   |  |              | 133,976   |   |              |   | (40,303  | ) |  |   | 246,210   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Total expenses                                              |  |                        |  |              |  |   | 767,979       |   |  |              | 440,458   |   |              |   | (40,303  | ) |  |   | 1,168,134 |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Income (loss) before income tax expense                     |  |                        |  |              |  |   | (60,145       | ) |  |              | 942,584   |   |              |   | (5,808   | ) |  |   | 876,631   |  
|Income tax expense                                          |  |                        |  |              |  |   | 33,793        |   |  |              | 337,326   |   |              |   | (2,033   | ) |  |   | 369,086   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Income (loss) before equity in net earnings of subsidiaries |  |                        |  |              |  |   | (93,938       | ) |  |              | 605,258   |   |              |   | (3,775   | ) |  |   | 507,545   |  
|Equity in net earnings of subsidiaries                      |  |                        |  |              |  |   | 601,483       |   |  |              |          |   |              |   | (601,483 | ) |  |   |          |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         
|Net income                                                  |  | $                      |  |              |  | $ | 507,545       |   |  | $            | 605,258   |   |              | $ | (605,258 | ) |  | $ | 507,545   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |           |   |              |   |         

21



---



##### 



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


Six Months Ended June 30, 2005


|                                                                                 |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |             |  
|-------------------------------------------------------------------------------- |  | ---------------------- | ---------- | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | - |  | ------------ | ---------- | - |  | - | ----------- | -
|                                                                                 |  |                        |            | Guarantor |              |   | Non-Guarantor |              |  |   |              |  
|                                                                                 |  | Parent                 |            |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |   |  | Consolidated |           
|                                                                                 |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |           
|                                                                                 |  | (Dollars in thousands) |           
|                                                                                 |  | Restated               |           
|NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                              |  | $                      | 24,670     |           |              | $ | (5,519,790    | )            |  | $ | 956,638      |   |  | $            | (257,028   | ) |  | $ | (4,795,510  | )
|CASH FLOWS FROM INVESTING ACTIVITIES:                                            |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |             |  
|Net increase in lending receivables                                              |  |                        |           |           |              |   | (287,852      | )            |  |   | (812,783     | ) |  |              |           |   |  |   | (1,100,635  | )
|Originations and purchases of mortgage loans held for investment                 |  |                        |           |           |              |   | (7,471,768    | )            |  |   | (2,539,435   | ) |  |              |           |   |  |   | (10,011,203 | )
|Proceeds from sales and repayments of mortgage loans held for
    investment     |  |                        |           |           |              |   | 3,586,779     |              |  |   | 10,693,169   |   |  |              |           |   |  |   | 14,279,948  |  
|Purchases of available for sale securities                                       |  |                        |           |           |              |   | (552,144      | )            |  |   | (10,597      | ) |  |              |           |   |  |   | (562,741    | )
|Proceeds from sales and repayments of available for sale
    securities          |  |                        |           |           |              |   | 434,793       |              |  |   | 10,165       |   |  |              |           |   |  |   | 444,958     |  
|Additions to mortgage servicing rights                                           |  |                        |           |           |              |   | (69,471       | )            |  |   | 3,047        |   |  |              |           |   |  |   | (66,424     | )
|Purchase of and advances to investments in real estate and other                 |  |                        |           |           |              |   | (15,453       | )            |  |   | (413,368     | ) |  |              |           |   |  |   | (428,821    | )
|Proceeds from sales of and returns of investments in real estate
    and other   |  |                        |           |           |              |   | 64,049        |              |  |   | 309,395      |   |  |              |           |   |  |   | 373,444     |  
|Payment of capital contribution                                                  |  |                        |           |           |              |   | (5,884        | )            |  |   |             |   |  |              | 5,884      |   |  |   |            |  
|Net increase in affiliate lending                                                |  |                        | (2,971,376 | )         |              |   |              |              |  |   |             |   |  |              | 2,971,376  |   |  |   |            |  
|Other, net                                                                       |  |                        |           |           |              |   | (26,127       | )            |  |   | 144,279      |   |  |              |           |   |  |   | 118,152     |  
|                                                                                 |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |           
|Net cash provided by (used in) investing activities                              |  |                        | (2,971,376 | )         |              |   | (4,343,078    | )            |  |   | 7,383,872    |   |  |              | 2,977,260  |   |  |   | 3,046,678   |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                                            |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |            |   |  |   |             |  
|Net increase (decrease) in affiliate borrowings                                  |  |                        | 491,000    |           |              |   | 2,757,000     |              |  |   | (64,299      | ) |  |              | (2,971,376 | ) |  |   | 212,325     |  
|Net increase (decrease) in other short-term borrowings                           |  |                        |           |           |              |   | 27,958        |              |  |   | 471,072      |   |  |              | 240,893    |   |  |   | 739,923     |  
|Proceeds from issuance of collateralized borrowings in
    securitization trusts |  |                        |           |           |              |   | 6,547,583     |              |  |   | 282,000      |   |  |              |           |   |  |   | 6,829,583   |  
|Repayments of collateralized borrowings in securitization trusts                 |  |                        |           |           |              |   |              |              |  |   | (10,817,845  | ) |  |              |           |   |  |   | (10,817,845 | )
|Proceeds from other long-term borrowings                                         |  |                        | 3,996,963  |           |              |   |              |              |  |   | 829,000      |   |  |              |           |   |  |   | 4,825,963   |  
|Repayments of other long-term borrowings                                         |  |                        |           |           |              |   |              |              |  |   | (64,268      | ) |  |              |           |   |  |   | (64,268     | )
|Proceeds from capital contribution                                               |  |                        |           |           |              |   |              |              |  |   | 5,884        |   |  |              | (5,884     | ) |  |   |            |  
|Increase in deposit liabilities                                                  |  |                        |           |           |              |   |              |              |  |   | 1,326,026    |   |  |              |           |   |  |   | 1,326,026   |  
|                                                                                 |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |           
|Net cash provided by (used in) financing activities                              |  |                        | 4,487,963  |           |              |   | 9,332,541     |              |  |   | (8,032,430   | ) |  |              | (2,736,367 | ) |  |   | 3,051,707   |  
|Effect of foreign exchange rates on cash and cash equivalents                    |  |                        |           |           |              |   |              |              |  |   | (12,569      | ) |  |              |           |   |  |   | (12,569     | )
|                                                                                 |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |           
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                             |  |                        | 1,541,257  |           |              |   | (530,327      | )            |  |   | 295,511      |   |  |              | (16,135    | ) |  |   | 1,290,306   |  
|CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                   |  |                        |           |           |              |   | 648,511       |              |  |   | 293,712      |   |  |              | (43,140    | ) |  |   | 899,083     |  
|                                                                                 |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |           
|CASH AND CASH EQUIVALENTS AT END OF PERIOD                                       |  | $                      | 1,541,257  |           |              | $ | 118,184       |              |  | $ | 589,223      |   |  | $            | (59,275    | ) |  | $ | 2,189,389   |  
|                                                                                 |  |                        |            |           |              |   |               |              |  |   |              |   |  |              |           











22



---



##### 



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


Six Months Ended June 30, 2004


|                                                                                 |  |                        |   |              |  |      |              |   |  |              |            |   |              |   |         |   |  |   |             |  
|-------------------------------------------------------------------------------- |  | ---------------------- | - | ------------ |  | ---- | ------------ | - |  | ------------ | ---------- | - | ------------ | - | ------- | - |  | - | ----------- | -
|                                                                                 |  |                        |   |              |  | Non- |              |   |  |              |           
|                                                                                 |  |                        |   | Guarantor    |  |      | Guarantor    |   |  |              |            |  
|                                                                                 |  | Parent                 |   | Subsidiaries |  |      | Subsidiaries |   |  | Eliminations |            |   | Consolidated |  
|                                                                                 |  |                        |   |              |  |      |              |   |  |              |            |   |              |  
|                                                                                 |  | (Dollars in thousands) |  
|                                                                                 |  | Restated               |  
|NET CASH PROVIDED BY OPERATING ACTIVITIES                                        |  | $                      |  |              |  | $    | (1,513,925   | ) |  | $            | 2,754,533  |   |              | $ | (6,003  | ) |  | $ | 1,234,605   |  
|CASH FLOWS FROM INVESTING ACTIVITIES:                                            |  |                        |   |              |  |      |              |   |  |              |            |   |              |   |         |   |  |   |             |  
|Net (increase) decrease in lending receivables                                   |  |                        |  |              |  |      | 288,779      |   |  |              | (1,389,039 | ) |              |   |        |   |  |   | (1,100,260  | )
|Originations and purchases of mortgage loans held for investment                 |  |                        |  |              |  |      | (18,610,804  | ) |  |              | (218,650   | ) |              |   |        |   |  |   | (18,829,454 | )
|Proceeds from sales and repayments of mortgage loans held for
    investment     |  |                        |  |              |  |      | 2,282,335    |   |  |              | 6,401,862  |   |              |   |        |   |  |   | 8,684,197   |  
|Purchases of available for sale securities                                       |  |                        |  |              |  |      | (356,105     | ) |  |              | (25,951    | ) |              |   |        |   |  |   | (382,056    | )
|Proceeds from sales and repayments of available for sale
    securities          |  |                        |  |              |  |      | 3,481        |   |  |              | 8,214      |   |              |   |        |   |  |   | 11,695      |  
|Additions to mortgage servicing rights                                           |  |                        |  |              |  |      | (121,575     | ) |  |              | (4,537     | ) |              |   |        |   |  |   | (126,112    | )
|Purchase of and advances to investments in real estate and other                 |  |                        |  |              |  |      | (36,205      | ) |  |              | (231,224   | ) |              |   |        |   |  |   | (267,429    | )
|Proceeds from sales of and returns of investments in real estate
    and other   |  |                        |  |              |  |      | 78,026       |   |  |              | 273,046    |   |              |   |        |   |  |   | 351,072     |  
|Payment of capital contribution                                                  |  |                        |  |              |  |      | (30,811      | ) |  |              |           |   |              |   | 30,811  |   |  |   |            |  
|Other, net                                                                       |  |                        |  |              |  |      | 202,441      |   |  |              | 12,786     |   |              |   |        |   |  |   | 215,227     |  
|                                                                                 |  |                        |   |              |  |      |              |   |  |              |            |   |              |   |        
|Net cash provided by (used in) investing activities                              |  |                        |  |              |  |      | (16,300,438  | ) |  |              | 4,826,507  |   |              |   | 30,811  |   |  |   | (11,443,120 | )
|CASH FLOWS FROM FINANCING ACTIVITIES                                             |  |                        |   |              |  |      |              |   |  |              |            |   |              |   |         |   |  |   |             |  
|Net increase (decrease) in affiliate borrowings                                  |  |                        |  |              |  |      | 537,311      |   |  |              | (746,151   | ) |              |   |        |   |  |   | (208,840    | )
|Net increase (decrease) in other short-term borrowings                           |  |                        |  |              |  |      | 350,799      |   |  |              | (567,106   | ) |              |   | (19,454 | ) |  |   | (235,761    | )
|Proceeds from issuance of collateralized borrowings in
    securitization trusts |  |                        |  |              |  |      | 16,508,357   |   |  |              | 508,167    |   |              |   |        |   |  |   | 17,016,524  |  
|Repayments of collateralized borrowings in securitization trusts                 |  |                        |  |              |  |      |             |   |  |              | (7,195,490 | ) |              |   | 15,021  |   |  |   | (7,180,469  | )
|Repayments of other long-term borrowings                                         |  |                        |  |              |  |      |             |   |  |              | (209,124   | ) |              |   |        |   |  |   | (209,124    | )
|Proceeds from capital contribution                                               |  |                        |  |              |  |      |             |   |  |              | 30,811     |   |              |   | (30,811 | ) |  |   |            |  
|Increase in deposit liabilities                                                  |  |                        |  |              |  |      |             |   |  |              | 650,680    |   |              |   |        |   |  |   | 650,680     |  
|                                                                                 |  |                        |   |              |  |      |              |   |  |              |            |   |              |   |        
|Net cash provided by (used in) financing activities                              |  |                        |  |              |  |      | 17,396,467   |   |  |              | (7,528,213 | ) |              |   | (35,244 | ) |  |   | 9,833,010   |  
|Effect of foreign exchange rates on cash and cash equivalents                    |  |                        |  |              |  |      |             |   |  |              | 2,021      |   |              |   |        |   |  |   | 2,021       |  
|                                                                                 |  |                        |   |              |  |      |              |   |  |              |            |   |              |   |        
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                             |  |                        |  |              |  |      | (417,896     | ) |  |              | 54,848     |   |              |   | (10,436 | ) |  |   | (373,484    | )
|CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                   |  |                        |  |              |  |      | 666,430      |   |  |              | 295,671    |   |              |   | (21,008 | ) |  |   | 941,093     |  
|                                                                                 |  |                        |   |              |  |      |              |   |  |              |            |   |              |   |        
|CASH AND CASH EQUIVALENTS AT END OF PERIOD                                       |  | $                      |  |              |  | $    | 248,534      |   |  | $            | 350,519    |   |              | $ | (31,444 | ) |  | $ | 567,609     |  
|                                                                                 |  |                        |   |              |  |      |              |   |  |              |            |   |              |   |        







23