##### 










Exhibit 99.1


RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE


THREE MONTHS ENDED MARCH 31, 2005 AND 2004


INDEX


|                                                                                                                               |  |      |   | 
|------------------------------------------------------------------------------------------------------------------------------ |  | ---- | - | 
|                                                                                                                               |  | Page |  
|                                                                                                                               |  |      |  
|Condensed Consolidated Balance Sheet as of
    March 31, 2005                                                                  |  |      | 2 | 
|Condensed Consolidated Statement of Income
    for the three months ended March 31, 2005 and 2004                              |  |      | 3 | 
|Condensed Consolidated Statement of Changes
    in Stockholders Equity for the three months ended
    March 31, 2005 and 2004 |  |      | 4 | 
|Condensed Consolidated Statement of Cash
    Flows for the three months ended March 31, 2005 and 2004                          |  |      | 5 | 
|Notes to Condensed Consolidated Financial
    Statements                                                                       |  |      | 6 | 





---



RESIDENTIAL CAPITAL CORPORATION





CONDENSED CONSOLIDATED BALANCE SHEET


March 31, 2005 and December 31, 2004


|                                                                                                        |                                                    |                        |            |            |              |   |            |            |            | 
|------------------------------------------------------------------------------------------------------- | -------------------------------------------------- | ---------------------- | ---------- | ---------- | ------------ | - | ---------- | ---------- | ---------- | 
|                                                                                                        |                                                    | March 31,              |            |            | December 31, |  
|                                                                                                        |                                                    | 2005                   |            |            | 2004         |  
|                                                                                                        |                                                    |                        |            |            |              |  
|                                                                                                        |                                                    | (Unaudited)            |           
|                                                                                                        |                                                    | (Dollars in thousands) |           
|ASSETS                                                                                                 
|Cash and cash equivalents                                                                               |                                                    | $                      | 543,772    |            |              | $ | 899,083    |           
|Mortgage loans held for sale                                                                            |                                                    |                        | 16,301,899 |            |              |   | 14,032,781 |           
|Trading securities                                                                                      |                                                    |                        | 5,796,670  |            |              |   | 2,714,700  |           
|Available for sale securities                                                                           |                                                    |                        | 1,342,236  |            |              |   | 1,244,658  |           
|Mortgage loans held for investment, net                                                                 |                                                    |                        | 55,056,157 |            |              |   | 56,835,356 |           
|Lending receivables, net                                                                                |                                                    |                        | 9,077,357  |            |              |   | 9,357,397  |           
|Mortgage servicing rights, net                                                                          |                                                    |                        | 3,672,322  |            |              |   | 3,365,992  |           
|Accounts receivable                                                                                     |                                                    |                        | 2,765,435  |            |              |   | 2,110,417  |           
|Investments in real estate and other                                                                    |                                                    |                        | 1,456,755  |            |              |   | 1,397,246  |           
|Goodwill                                                                                                |                                                    |                        | 452,223    |            |              |   | 454,278    |           
|Other assets                                                                                            |                                                    |                        | 2,181,363  |            |              |   | 1,937,556  |           
|                                                                                                        |                                                    |                        |            |            |              |  
|Total assets                                                                                            |                                                    | $                      | 98,646,189 |            |              | $ | 94,349,464 |           
|                                                                                                        |                                                    |                        |            |            |              |  
|                                                                                                       
|LIABILITIES                                                                                            
|Borrowings:                                                                                             |                                                    |                        |            |            |              |   |            |           
|                                                                                                        | Affiliate borrowings                               |                        | $          | 10,269,829 |              |   | $          | 10,006,242 |           
|                                                                                                        | Collateralized borrowings in securitization trusts |                        |            | 49,298,575 |              |   |            | 50,708,476 |           
|                                                                                                        | Other borrowings                                   |                        |            | 28,482,383 |              |   |            | 23,703,650 |           
|                                                                                                        |                                                    |                        |            |            |              |  
|                                                                                                        |                                                    | Total borrowings       |            |            | 88,050,787   |   |            |            | 84,418,368 | 
|Deposit liabilities                                                                                     |                                                    |                        | 2,010,881  |            |              |   | 1,664,970  |           
|Other liabilities                                                                                       |                                                    |                        | 3,826,757  |            |              |   | 3,900,381  |           
|                                                                                                        |                                                    |                        |            |            |              |  
|Total liabilities                                                                                       |                                                    |                        | 93,888,425 |            |              |   | 89,983,719 |           
|                                                                                                       
|STOCKHOLDERS EQUITY                                                                                   
|Common stock, $0.01 par value (1,000 shares
    authorized, issued and outstanding) and paid-in capital |                                                    |                        | 1,292,486  |            |              |   | 1,246,778  |           
|Retained earnings                                                                                       |                                                    |                        | 3,281,756  |            |              |   | 2,959,961  |           
|Accumulated other comprehensive income                                                                  |                                                    |                        | 183,522    |            |              |   | 159,006    |           
|                                                                                                        |                                                    |                        |            |            |              |  
|Total stockholders equity                                                                              |                                                    |                        | 4,757,764  |            |              |   | 4,365,745  |           
|                                                                                                        |                                                    |                        |            |            |              |  
|Total liabilities and stockholders equity                                                              |                                                    | $                      | 98,646,189 |            |              | $ | 94,349,464 |           
|                                                                                                        |                                                    |                        |            |            |              |  



2



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION





CONDENSED CONSOLIDATED STATEMENT OF INCOME


Three Months Ended March 31


|                                                     |  |                        |           |   |      |   |           |  
|---------------------------------------------------- |  | ---------------------- | --------- | - | ---- | - | --------- | -
|                                                     |  | 2005                   |           |   | 2004 |  
|                                                     |  |                        |           |   |      |  
|                                                     |  | (Unaudited)            |          
|                                                     |  | (Dollars in thousands) |          
|Revenue                                              |  |                        |           |   |      |   |           |  
|Interest income                                      |  | $                      | 1,309,980 |   |      | $ | 1,099,190 |  
|Interest expense                                     |  |                        | 765,910   |   |      |   | 505,232   |  
|                                                     |  |                        |           |   |      |  
|Net interest income                                  |  |                        | 544,070   |   |      |   | 593,958   |  
|Provision for loan losses                            |  |                        | 155,832   |   |      |   | 183,219   |  
|                                                     |  |                        |           |   |      |  
|Net interest income after provision for loan losses  |  |                        | 388,238   |   |      |   | 410,739   |  
|Gain on sale of mortgage loans, net                  |  |                        | 329,643   |   |      |   | 202,435   |  
|Servicing fees                                       |  |                        | 347,394   |   |      |   | 306,180   |  
|Amortization and impairment of servicing rights      |  |                        | (139,780  | ) |      |   | (315,963  | )
|Servicing asset valuation and hedge gain (loss), net |  |                        | (67,861   | ) |      |   | 130,403   |  
|                                                     |  |                        |           |   |      |  
|Net servicing fees                                   |  |                        | 139,753   |   |      |   | 120,620   |  
|Gain on investment securities, net                   |  |                        | 72,115    |   |      |   | 11,163    |  
|Real estate related revenues                         |  |                        | 131,374   |   |      |   | 109,890   |  
|Other income                                         |  |                        | 66,454    |   |      |   | 89,830    |  
|                                                     |  |                        |           |   |      |  
|Total net revenue                                    |  |                        | 1,127,577 |   |      |   | 944,677   |  
|Expenses                                             |  |                        |           |   |      |   |           |  
|Compensation and benefits                            |  |                        | 319,931   |   |      |   | 284,263   |  
|Professional fees                                    |  |                        | 50,298    |   |      |   | 44,437    |  
|Data processing and telecommunications               |  |                        | 49,445    |   |      |   | 46,050    |  
|Advertising                                          |  |                        | 39,305    |   |      |   | 33,538    |  
|Occupancy                                            |  |                        | 29,567    |   |      |   | 25,186    |  
|Other                                                |  |                        | 110,181   |   |      |   | 121,557   |  
|                                                     |  |                        |           |   |      |  
|Total expenses                                       |  |                        | 598,727   |   |      |   | 555,031   |  
|                                                     |  |                        |           |   |      |  
|Income before income tax expense                     |  |                        | 528,850   |   |      |   | 389,646   |  
|Income tax expense                                   |  |                        | 207,055   |   |      |   | 154,939   |  
|                                                     |  |                        |           |   |      |  
|Net income                                           |  | $                      | 321,795   |   |      | $ | 234,707   |  
|                                                     |  |                        |           |   |      |  



3



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION





CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
STOCKHOLDERS EQUITY


Three Months Ended March 31, 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                              |                                          |           |       |          |   |           | 321,795       |             |  | $             | 321,795 |         |               |         |        |   |   |           | 321,795 |        
|                           | Capital contribution                    |                                          |           | 45,708 |          |   |           |              |             |  |               |        |         |               |         |        |   |   |           | 45,708  |        
|                           | Other comprehensive income, net of tax: |                                          |           |        |          |   |           |               |             |  |               |         |         |               |         |         |   |   |           |         |        
|                           |                                         | Unrealized loss on investment securities |           |        |         |   |           |               |            |  |               |         | (25,823 | )             |         |         |  |   |           |         | (25,823 | )
|                           |                                         | Foreign currency translation adjustment  |           |        |         |   |           |               |            |  |               |         | (8,972  | )             |         |         |  |   |           |         | (8,972  | )
|                           |                                         | Unrealized gain on derivatives           |           |        |         |   |           |               |            |  |               |         | 59,311  |               |         |         |  |   |           |         | 59,311  |  
|                           |                                         |                                          |           |        |          |   |           |               |             |  |               |         |         |               |        
|                           | Other comprehensive income              |                                          |           |       |          |   |           |              |             |  |               | 24,516  |         |               |         | 24,516  |   |   |           |        |        
|                           |                                         |                                          |           |        |          |   |           |               |             |  |               |         |         |               |        
|                           | Comprehensive income                    |                                          |           |       |          |   |           |              |             |  | $             | 346,311 |         |               |         |        |   |   |           |        |        
|                           |                                         |                                          |           |        |          |   |           |               |             |  |               |         |         |               |        
|Balance at March 31, 2005  |                                         | $                                        | 1,292,486 |        |          | $ | 3,281,756 |               |             |  |               |         |         | $             | 183,522 |         |   | $ | 4,757,764 |        
|                           |                                         |                                          |           |        |          |   |           |               |             |  |               |         |         |               |        
|Balance at January 1, 2004 |                                         | $                                        | 1,193,592 |        |          | $ | 1,991,749 |               |             |  |               |         |         | $             | 666     |         |   | $ | 3,186,007 |        
|                           | Net income                              |                                          |           |       |          |   |           | 234,707       |             |  | $             | 234,707 |         |               |         |        |   |   |           | 234,707 |        
|                           | Other comprehensive income, net of tax: |                                          |           |        |          |   |           |               |             |  |               |         |         |               |         |         |   |   |           |         |        
|                           |                                         | Unrealized gain on investment securities |           |        |         |   |           |               |            |  |               |         | 790     |               |         |         |  |   |           |         | 790     |  
|                           |                                         | Foreign currency translation adjustment  |           |        |         |   |           |               |            |  |               |         | 3,091   |               |         |         |  |   |           |         | 3,091   |  
|                           |                                         | Unrealized loss on derivatives           |           |        |         |   |           |               |            |  |               |         | (54,273 | )             |         |         |  |   |           |         | (54,273 | )
|                           |                                         |                                          |           |        |          |   |           |               |             |  |               |         |         |               |        
|                           | Other comprehensive income              |                                          |           |       |          |   |           |              |             |  |               | (50,392 | )       |               |         | (50,392 | ) |   |           |        |        
|                           |                                         |                                          |           |        |          |   |           |               |             |  |               |         |         |               |        
|                           | Comprehensive income                    |                                          |           |       |          |   |           |              |             |  | $             | 184,315 |         |               |         |        |   |   |           |        |        
|                           |                                         |                                          |           |        |          |   |           |               |             |  |               |         |         |               |        
|Balance at March 31, 2004  |                                         | $                                        | 1,193,592 |        |          | $ | 2,226,456 |               |             |  |               |         |         | $             | (49,726 | )       |   | $ | 3,370,322 |        
|                           |                                         |                                          |           |        |          |   |           |               |             |  |               |         |         |               |        



4



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION





CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS


Three Months Ended March 31, 2005 and 2004


|                                                                                 |                                                     |                        |            |           |      |   |             |            |  
|-------------------------------------------------------------------------------- | --------------------------------------------------- | ---------------------- | ---------- | --------- | ---- | - | ----------- | ---------- | -
|                                                                                 |                                                     | Restated               |           
|                                                                                 |                                                     |                        |           
|                                                                                 |                                                     | 2005                   |            |           | 2004 |  
|                                                                                 |                                                     |                        |            |           |      |  
|                                                                                 |                                                     | (Unaudited)            |           
|                                                                                 |                                                     | (Dollars in thousands) |           
|NET CASH USED IN OPERATING ACTIVITIES                                            |                                                     | $                      | (7,718,223 | )         |      | $ | (756,795    | )         
|CASH FLOWS FROM INVESTING ACTIVITIES:                                            |                                                     |                        |            |           |      |   |             |           
|Net (increase) decrease in lending receivables                                   |                                                     |                        | 322,318    |           |      |   | (410,699    | )         
|Originations and purchases of mortgage loans held for investment                 |                                                     |                        | (4,774,089 | )         |      |   | (10,250,211 | )         
|Proceeds from sales and repayments of mortgage loans held for
    investment     |                                                     |                        | 8,023,712  |           |      |   | 4,617,051   |           
|Purchases of available for sale securities                                       |                                                     |                        | (297,803   | )         |      |   | (12,955     | )         
|Proceeds from sales and repayments of available for sale
    securities          |                                                     |                        | 160,457    |           |      |   | 4,108       |           
|Additions to mortgage servicing rights                                           |                                                     |                        | (28,044    | )         |      |   | (56,774     | )         
|Purchase of and advances to investments in real estate and other                 |                                                     |                        | (205,451   | )         |      |   | (101,892    | )         
|Proceeds from sales of and returns of investments in real estate
    and other   |                                                     |                        | 171,805    |           |      |   | 177,482     |           
|Other, net                                                                       |                                                     |                        | 22,776     |           |      |   | (28,931     | )         
|                                                                                 |                                                     |                        |            |           |      |  
|                                                                                 | Net cash provided by (used in) investing activities |                        |            | 3,395,681 |      |   |             | (6,062,821 | )
|CASH FLOWS FROM FINANCING ACTIVITIES                                             |                                                     |                        |            |           |      |   |             |           
|Net increase (decrease) in affiliate borrowings                                  |                                                     |                        | 263,587    |           |      |   | (150,436    | )         
|Net increase in other short-term borrowings                                      |                                                     |                        | 4,496,192  |           |      |   | 65,069      |           
|Proceeds from issuance of collateralized borrowings in
    securitization trusts |                                                     |                        | 3,751,145  |           |      |   | 8,826,016   |           
|Repayments of collateralized borrowings in securitization trusts                 |                                                     |                        | (5,086,291 | )         |      |   | (2,788,924  | )         
|Proceeds from other long-term borrowings                                         |                                                     |                        | 453,854    |           |      |   |            |           
|Repayments of other long-term borrowings                                         |                                                     |                        | (250,925   | )         |      |   | (150,000    | )         
|Increase in deposit liabilities                                                  |                                                     |                        | 345,911    |           |      |   | 289,386     |           
|                                                                                 |                                                     |                        |            |           |      |  
|                                                                                 | Net cash provided by financing activities           |                        |            | 3,973,473 |      |   |             | 6,091,111  |  
|Effect of foreign exchange rates on cash and cash equivalents                    |                                                     |                        | (6,242     | )         |      |   | 3,144       |           
|                                                                                 |                                                     |                        |            |           |      |  
|NET DECREASE IN CASH AND CASH EQUIVALENTS                                        |                                                     |                        | (355,311   | )         |      |   | (725,361    | )         
|CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                 |                                                     |                        | 899,083    |           |      |   | 941,093     |           
|                                                                                 |                                                     |                        |            |           |      |  
|CASH AND CASH EQUIVALENTS AT END OF PERIOD                                       |                                                     | $                      | 543,772    |           |      | $ | 215,732     |           
|                                                                                 |                                                     |                        |            |           |      |  
|SUPPLEMENTAL DISCLOSURES FOR NON-CASH TRANSACTIONS:                              |                                                     |                        |            |           |      |   |             |           
|Capital contribution of lending receivables                                      |                                                     | $                      | 45,708     |           |      | $ |            |           



5



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##### Table of Contents



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.




6



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS (Unaudited) 
(Continued)




|                                                    |                        |                              |   |            |      |  |   |            |  
|--------------------------------------------------- | ---------------------- | ---------------------------- | - | ---------- | ---- |  | - | ---------- | -
|                                                    |                        | Three Months Ended March 31, |  
|                                                    |                        |                              |  
|                                                    |                        | 2005                         |   |            | 2004 | 
|                                                    |                        |                              |   |            |      | 
|                                                    |                        | (Dollars in thousands)       |  
|Net cash provided by (used in) operating activities |                        |                              |   |            |      |  |   |           
|                                                    | As previously reported |                              | $ | (4,206,092 | )    |  | $ | 796,123    |  
|                                                    | As restated            |                              |   | (7,718,223 | )    |  |   | (756,795   | )
|Net cash provided by (used in) investing activities |                        |                              |   |            |      |  |   |           
|                                                    | As previously reported |                              |   | (116,450   | )    |  |   | (7,615,739 | )
|                                                    | As restated            |                              |   | 3,395,681  |      |  |   | (6,062,821 | )

Recently Issued Accounting Standards


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




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



|                                     |  |                |           |  |              |   |           | 
|------------------------------------ |  | -------------- | --------- |  | ------------ | - | --------- | 
|                                     |  | March 31,      |           |  | December 31, |  
|                                     |  | 2005           |           |  | 2004         |  
|                                     |  |                |           |  |              |  
|                                     |  | (In thousands) |          
|U.S. Treasury securities             |  | $              | 3,092,930 |  |              | $ | 150,375   | 
|Mortgage and asset-backed securities |  |                | 1,408,365 |  |              |   | 1,141,460 | 
|Residual interests                   |  |                | 1,063,879 |  |              |   | 1,033,544 | 
|Interest-only securities             |  |                | 208,103   |  |              |   | 187,835   | 
|Principal-only securities            |  |                | 22,712    |  |              |   | 200,666   | 
|Other                                |  |                | 681       |  |              |   | 820       | 
|                                     |  |                |           |  |              |  
|Total                                |  | $              | 5,796,670 |  |              | $ | 2,714,700 | 
|                                     |  |                |           |  |              |  
|Net unrealized gains                 |  | $              | 23,251    |  |              | $ | 29,895    | 
|Pledged as collateral                |  |                | 5,639,463 |  |              |   | 2,252,532 | 



7



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS (Unaudited) 
(Continued)




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



|                      |                                 |                |           |                  |       |   |       |        |  |   |            |         |   |   |           |           | 
|--------------------- | ------------------------------- | -------------- | --------- | ---------------- | ----- | - | ----- | ------ |  | - | ---------- | ------- | - | - | --------- | --------- | 
|                      |                                 | March 31, 2005 |          
|                      |                                 |                |          
|                      |                                 |                |           | Gross Unrealized |       |   |      
|                      |                                 |                |           |                  |       |   |      
|                      |                                 | Cost           |           |                  | Gains |   |       | Losses |  |   | Fair Value |        
|                      |                                 |                |           |                  |       |   |       |        |  |   |            |        
|                      |                                 | (In thousands) |          
|Debt securities:      |                                 |                |           |                  |       |   |       |        |  |   |            |         |   |   |           |          
|                      | U.S. Treasury securities        |                | $         | 1,246,349        |       |   | $     |       |  |   | $          | (27,302 | ) |   | $         | 1,219,047 | 
|                      | Mortgage-backed securities      |                |           | 93,216           |       |   |       | 44     |  |   |            | (1,349  | ) |   |           | 91,911    | 
|                      | Interest-only securities(a)     |                |           | 5,288            |       |   |       | 1,624  |  |   |            |        |   |   |           | 6,912     | 
|                      | Principal-only securities       |                |           | 300              |       |   |       | 311    |  |   |            |        |   |   |           | 611       | 
|                      | States & political subdivisions |                |           | 4,999            |       |   |       |       |  |   |            | (191    | ) |   |           | 4,808     | 
|                      | Other                           |                |           | 9,785            |       |   |       |       |  |   |            | (60     | ) |   |           | 9,725     | 
|                      |                                 |                |           |                  |       |   |       |        |  |   |            |        
|Total debt securities |                                 |                | 1,359,937 |                  |       |   | 1,979 |        |  |   | (28,902    | )       |   |   | 1,333,014 |          
|Equity securities     |                                 |                | 10,099    |                  |       |   |      |        |  |   | (877       | )       |   |   | 9,222     |          
|                      |                                 |                |           |                  |       |   |       |        |  |   |            |        
|Total                 |                                 | $              | 1,370,036 |                  |       | $ | 1,979 |        |  | $ | (29,779    | )       |   | $ | 1,342,236 |          
|                      |                                 |                |           |                  |       |   |       |        |  |   |            |        

|                      |                                 |                   |           |                  |       |   |        |        |  |   |            |        |   |   |           |           | 
|--------------------- | ------------------------------- | ----------------- | --------- | ---------------- | ----- | - | ------ | ------ |  | - | ---------- | ------ | - | - | --------- | --------- | 
|                      |                                 | 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.





|                             |  |                |        |  |      |   |   | 
|---------------------------- |  | -------------- | ------ |  | ---- | - | - | 
|Three Months Ended March 31, |  | 2005           |        |  | 2004
|                             |  |                |        |  |     
|                             |  | (In thousands)
|Gross realized gains         |  | $              | 15,884 |  |      | $ |  | 
|Gross realized losses        |  |                |       |  |      |   |  | 
|                             |  |                |        |  |      |  
|Net realized gains           |  | $              | 15,884 |  |      | $ |  | 
|                             |  |                |        |  |      |  



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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS (Unaudited) 
(Continued)








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



|                               |       |                |            |            |              |   |            |            | 
|------------------------------ | ----- | -------------- | ---------- | ---------- | ------------ | - | ---------- | ---------- | 
|                               |       | March 31,      |            |            | December 31, |  
|                               |       | 2005           |            |            | 2004         |  
|                               |       |                |            |            |              |  
|                               |       | (In thousands) |           
|Prime conforming               |       | $              | 1,108,211  |            |              | $ | 972,705    |           
|Prime non-conforming           |       |                | 5,108,600  |            |              |   | 4,937,544  |           
|Nonprime                       |       |                | 46,264,591 |            |              |   | 47,425,595 |           
|Prime second-lien              |       |                | 3,503,999  |            |              |   | 4,370,767  |           
|Government                     |       |                | 1,326      |            |              |   | 1,699      |           
|                               |       |                |            |            |              |  
|                               | Total |                |            | 55,986,727 |              |   |            | 57,708,310 | 
|Less allowance for loan losses |       |                | (930,570   | )          |              |   | (872,954   | )         
|                               |       |                |            |            |              |  
|Total, net                     |       | $              | 55,056,157 |            |              | $ | 56,835,356 |           
|                               |       |                |            |            |              |  







9



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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS (Unaudited) 
(Continued)




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



|                               |       |                |           |           |              |   |           |           | 
|------------------------------ | ----- | -------------- | --------- | --------- | ------------ | - | --------- | --------- | 
|                               |       | March 31,      |           |           | December 31, |  
|                               |       | 2005           |           |           | 2004         |  
|                               |       |                |           |           |              |  
|                               |       | (In thousands) |          
|Warehouse                      |       | $              | 5,114,946 |           |              | $ | 5,481,622 |          
|Construction                   |       |                | 2,327,400 |           |              |   | 2,174,688 |          
|Commercial business            |       |                | 1,118,675 |           |              |   | 1,086,405 |          
|Healthcare                     |       |                | 459,295   |           |              |   | 399,770   |          
|Commercial real estate         |       |                | 157,101   |           |              |   | 311,659   |          
|Other                          |       |                | 44,679    |           |              |   | 44,976    |          
|                               |       |                |           |           |              |  
|                               | Total |                |           | 9,222,096 |              |   |           | 9,499,120 | 
|Less allowance for loan losses |       |                | (144,739  | )         |              |   | (141,723  | )        
|                               |       |                |           |           |              |  
|Total, net                     |       | $              | 9,077,357 |           |              | $ | 9,357,397 |          
|                               |       |                |           |           |              |  





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



|                           |  |                |          |   |             |   |         |       |  |   |           |  
|-------------------------- |  | -------------- | -------- | - | ----------- | - | ------- | ----- |  | - | --------- | -
|                           |  | Mortgage Loans |          |   |             |   |        
|                           |  | Held for       |          |   | Lending     |   |         |      
|                           |  | Investment     |          |   | Receivables |   |         | Total | 
|                           |  |                |          |   |             |   |         |       | 
|                           |  | (In thousands) |         
|Balance at January 1, 2005 |  | $              | 872,954  |   |             | $ | 141,723 |       |  | $ | 1,014,677 |  
|Provision for loan losses  |  |                | 152,405  |   |             |   | 3,427   |       |  |   | 155,832   |  
|Charge-offs                |  |                | (108,743 | ) |             |   | (429    | )     |  |   | (109,172  | )
|Recoveries                 |  |                | 13,954   |   |             |   | 18      |       |  |   | 13,972    |  
|                           |  |                |          |   |             |   |         |       | 
|Balance at March 31, 2005  |  | $              | 930,570  |   |             | $ | 144,739 |       |  | $ | 1,075,309 |  
|                           |  |                |          |   |             |   |         |       | 
|Balance at January 1, 2004 |  | $              | 490,991  |   |             | $ | 126,959 |       |  | $ | 617,950   |  
|Provision for loan losses  |  |                | 161,444  |   |             |   | 21,775  |       |  |   | 183,219   |  
|Charge-offs                |  |                | (80,045  | ) |             |   | (333    | )     |  |   | (80,378   | )
|Recoveries                 |  |                | 737      |   |             |   |        |       |  |   | 737       |  
|                           |  |                |          |   |             |   |         |       | 
|Balance at March 31, 2004  |  | $              | 573,127  |   |             | $ | 148,401 |       |  | $ | 721,528   |  
|                           |  |                |          |   |             |   |         |       | 

10



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS (Unaudited) 
(Continued)




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



|                                           |  |                |           |   |      |   |            |  
|------------------------------------------ |  | -------------- | --------- | - | ---- | - | ---------- | -
|                                           |  | 2005           |           |   | 2004 |  
|                                           |  |                |           |   |      |  
|                                           |  | (In thousands) |          
|Balance at January 1                       |  | $              | 4,294,846 |   |      | $ | 4,333,609  |  
|Originations and purchases, net of sales   |  |                | 321,168   |   |      |   | 285,856    |  
|Amortization                               |  |                | (243,274  | ) |      |   | (187,816   | )
|Valuation adjustments for hedge accounting |  |                | 124,942   |   |      |   | (386,458   | )
|Other than temporary impairment            |  |                | (14,272   | ) |      |   | (2,303     | )
|                                           |  |                |           |   |      |  
|Balance at March 31                        |  |                | 4,483,410 |   |      |   | 4,042,888  |  
|Valuation allowance                        |  |                | (811,088  | ) |      |   | (1,275,146 | )
|                                           |  |                |           |   |      |  
|Carrying value at March 31                 |  | $              | 3,672,322 |   |      | $ | 2,767,742  |  
|                                           |  |                |           |   |      |  
|Estimated fair value at March 31           |  | $              | 3,678,418 |   |      | $ | 2,767,742  |  
|                                           |  |                |           |   |      |  



|                                |  |                |          |   |      |   |           |  
|------------------------------- |  | -------------- | -------- | - | ---- | - | --------- | -
|                                |  | 2005           |          |   | 2004 |  
|                                |  |                |          |   |      |  
|                                |  | (In thousands) |         
|Balance at January 1            |  | $              | 928,854  |   |      | $ | 1,149,302 |  
|Impairment                      |  |                | (103,494 | ) |      |   | 128,147   |  
|Other than temporary impairment |  |                | (14,272  | ) |      |   | (2,303    | )
|                                |  |                |          |   |      |  
|Balance at March 31             |  | $              | 811,088  |   |      | $ | 1,275,146 |  
|                                |  |                |          |   |      |  





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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS (Unaudited) 
(Continued)




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



|                                                      |                                              |                        |            |            |              |   |            |           |            | 
|----------------------------------------------------- | -------------------------------------------- | ---------------------- | ---------- | ---------- | ------------ | - | ---------- | --------- | ---------- | 
|                                                      |                                              | March 31,              |            |            | December 31, |  
|                                                      |                                              | 2005                   |            |            | 2004         |  
|                                                      |                                              |                        |            |            |              |  
|                                                      |                                              | (In thousands)         |           
|Affiliate borrowings                                  |                                              | $                      | 10,269,829 |            |              | $ | 10,006,242 |          
|Collateralized borrowings in securitization trusts(a) |                                              |                        | 49,298,575 |            |              |   | 50,708,476 |          
|Other borrowings:                                     |                                              |                        |            |            |              |   |            |          
|                                                      | Secured aggregation facilities               |                        |            | 10,413,670 |              |   |            | 9,867,955 |           
|                                                      | Repurchase agreements                        |                        |            | 10,417,106 |              |   |            | 6,598,433 |           
|                                                      | Investor custodial funds                     |                        |            | 2,229,130  |              |   |            | 1,915,061 |           
|                                                      | FHLB advances  short-term                   |                        |            | 1,100,000  |              |   |            | 853,000   |           
|                                                      | FHLB advances  long-term(a)                 |                        |            | 848,000    |              |   |            | 654,000   |           
|                                                      | Third party bank credit facilities           |                        |            | 557,500    |              |   |            | 766,500   |           
|                                                      | Debt collateralized by mortgage loans        |                        |            | 915,492    |              |   |            | 736,538   |           
|                                                      | Securities purchased under forward contracts |                        |            |           |              |   |            | 226,844   |           
|                                                      | Other  short-term                           |                        |            | 1,816,810  |              |   |            | 1,899,196 |           
|                                                      | Other  long-term(a)                         |                        |            | 184,675    |              |   |            | 186,123   |           
|                                                      |                                              |                        |            |            |              |  
|                                                      |                                              | Total other borrowings |            |            | 28,482,383   |   |            |           | 23,703,650 | 
|                                                      |                                              |                        |            |            |              |  
|Total borrowings                                      |                                              | $                      | 88,050,787 |            |              | $ | 84,418,368 |          
|                                                      |                                              |                        |            |            |              |  






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



|                                   |                                       |                |            |            |              |   |            |            | 
|---------------------------------- | ------------------------------------- | -------------- | ---------- | ---------- | ------------ | - | ---------- | ---------- | 
|                                   |                                       | March 31,      |            |            | December 31, |  
|                                   |                                       | 2005           |            |            | 2004         |  
|                                   |                                       |                |            |            |              |  
|                                   |                                       | (In thousands) |           
|Mortgage loans held for investment |                                       | $              | 54,066,774 |            |              | $ | 55,370,161 |           
|Mortgage loans held for sale       |                                       |                | 13,053,644 |            |              |   | 10,996,204 |           
|Lending receivables                |                                       |                | 6,126,354  |            |              |   | 5,426,695  |           
|Trading securities                 |                                       |                | 5,639,463  |            |              |   | 2,213,045  |           
|Available for sale securities      |                                       |                | 1,219,047  |            |              |   | 1,114,532  |           
|Servicing advances                 |                                       |                | 720,600    |            |              |   |           |           
|Mortgage servicing rights          |                                       |                | 459,790    |            |              |   | 444,601    |           
|Other assets                       |                                       |                | 362,891    |            |              |   | 143,196    |           
|                                   |                                       |                |            |            |              |  
|                                   | Total assets restricted as collateral |                | $          | 81,648,563 |              |   | $          | 75,708,434 | 
|                                   |                                       |                |            |            |              |  
|Related secured debt               |                                       | $              | 73,666,443 |            |              | $ | 69,933,446 |           
|                                   |                                       |                |            |            |              |  



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



|                                       |  |                |           |  |              |   |           | 
|-------------------------------------- |  | -------------- | --------- |  | ------------ | - | --------- | 
|                                       |  | March 31,      |           |  | December 31, |  
|                                       |  | 2005           |           |  | 2004         |  
|                                       |  |                |           |  |              |  
|                                       |  | (In thousands) |          
|Non-interest bearing deposits          |  | $              | 1,568,883 |  |              | $ | 1,302,677 | 
|NOW and money market checking accounts |  |                | 383,802   |  |              |   | 353,609   | 
|Certificates of deposit                |  |                | 58,196    |  |              |   | 8,684     | 
|                                       |  |                |           |  |              |  
|Total                                  |  | $              | 2,010,881 |  |              | $ | 1,664,970 | 
|                                       |  |                |           |  |              |  

12



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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS (Unaudited) 
(Continued)






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





|                                                             |                                             |               |       |       |      |   |       |                                 |   |  |                                                
|------------------------------------------------------------ | ------------------------------------------- | ------------- | ----- | ----- | ---- | - | ----- | ------------------------------- | - |  | -----------------------------------------------
|Three Months Ended March 31,                                 |                                             | 2005          |       |       | 2004 |   |       | Income Statement Classification
|                                                             |                                             |               |       |       |      |   |       |                                
|                                                             |                                             | (In millions) |       |       |     
|Fair value hedge ineffectiveness gain (loss):                |                                             |               |       |       |      |   |       |                                 |   | 
|                                                             | Mortgage servicing rights                   |               | $     | (26.5 | )    |   | $     | 2.1                             |   |  | Servicing asset valuation and hedge gain (loss)
|                                                             | Mortgage loans held for sale                |               |       | (5.8  | )    |   |       | 1.0                             |   |  | Gain on sale of mortgage loans                 
|Cash flow hedges ineffectiveness gain (loss):                |                                             |               |       |       |      |   |       |                                 |   | 
|                                                             | Debt and future debt issuance               |               |       | 5.1   |      |   |       | (1.9                            | ) |  | Interest expense                               
|Derivatives not designated as accounting hedges gain (loss): |                                             |               |       |       |      |   |       |                                 |   | 
|                                                             | Mortgage loans held for sale and investment |               |       | 53.8  |      |   |       | (49.4                           | ) |  | Gain on sale of mortgage loans                 
|                                                             | Foreign currency debt                       |               |       | 0.7   |      |   |       | (5.3                            | ) |  | Interest expense                               
|                                                             | Mortgage servicing rights                   |               |       | (36.3 | )    |   |       | 46.5                            |   |  | Servicing asset valuation and hedge gain (loss)
|                                                             | Mortgage-related securities                 |               |       | (43.0 | )    |   |       | (6.2                            | ) |  | Gain on investment securities                  
|                                                             | Other                                       |               |       | (1.3  | )    |   |       | (7.1                            | ) |  | Interest expense                               
|                                                             |                                             |               |       |       |      |   |       |                                
|Total                                                        |                                             | $             | (53.3 | )     |      | $ | (20.3 | )                               |   | 
|                                                             |                                             |               |       |       |      |   |       |                                





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





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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS (Unaudited) 
(Continued)
















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



|                                 |  |                |            |   |               |          |            |         |               |   |           |   |  |           |           |  |              |   |          |              |  |   |        |   |  |   |            |  
|-------------------------------- |  | -------------- | ---------- | - | ------------- | -------- | ---------- | ------- | ------------- | - | --------- | - |  | --------- | --------- |  | ------------ | - | -------- | ------------ |  | - | ------ | - |  | - | ---------- | -
|                                 |  |                |            |   |               | Business |            |         | International |   |           |   |  |           |           | 
|                                 |  | GMAC           |            |   | Residential   |          |            | Capital |               |   | Business  |   |  | Corporate |           |  |              |   |         
|Three Months Ended March 31,     |  | Residential    |            |   | Capital Group |          |            | Group   |               |   | Group     |   |  | and Other |           |  | Eliminations |   |          | Consolidated | 
|                                 |  |                |            |   |               |          |            |         |               |   |           |   |  |           |           |  |              |   |          |              | 
|                                 |  | (In thousands) |           
|2005                             |  |                |            |   |               |          |            |         |               |   |           |   |  |           |           |  |              |   |          |              |  |   |        |   |  |   |            |  
|Net interest income (expense)    |  | $              | 73,215     |   |               | $        | 416,049    |         |               | $ | 37,214    |   |  | $         | 23,491    |  |              | $ | (5,899   | )            |  | $ |       |   |  | $ | 544,070    |  
|Provision for loan losses        |  |                | (1,103     | ) |               |          | (148,346   | )       |               |   | (7,472    | ) |  |           | 1,330     |  |              |   | (241     | )            |  |   |       |   |  |   | (155,832   | )
|Other revenue                    |  |                | 278,071    |   |               |          | 192,773    |         |               |   | 50,038    |   |  |           | 66,100    |  |              |   | 152,357  |              |  |   |       |   |  |   | 739,339    |  
|                                 |  |                |            |   |               |          |            |         |               |   |           |   |  |           |           |  |              |   |          |              | 
|Total net revenue                |  |                | 350,183    |   |               |          | 460,476    |         |               |   | 79,780    |   |  |           | 90,921    |  |              |   | 146,217  |              |  |   |       |   |  |   | 1,127,577  |  
|Operating expenses               |  |                | 204,432    |   |               |          | 214,751    |         |               |   | 17,210    |   |  |           | 58,412    |  |              |   | 103,922  |              |  |   |       |   |  |   | 598,727    |  
|                                 |  |                |            |   |               |          |            |         |               |   |           |   |  |           |           |  |              |   |          |              | 
|Income before income tax expense |  |                | 145,751    |   |               |          | 245,725    |         |               |   | 62,570    |   |  |           | 32,509    |  |              |   | 42,295   |              |  |   |       |   |  |   | 528,850    |  
|Income tax expense               |  |                | 66,559     |   |               |          | 94,190     |         |               |   | 23,983    |   |  |           | 9,863     |  |              |   | 12,460   |              |  |   |       |   |  |   | 207,055    |  
|                                 |  |                |            |   |               |          |            |         |               |   |           |   |  |           |           |  |              |   |          |              | 
|Net income                       |  | $              | 79,192     |   |               | $        | 151,535    |         |               | $ | 38,587    |   |  | $         | 22,646    |  |              | $ | 29,835   |              |  | $ |       |   |  | $ | 321,795    |  
|                                 |  |                |            |   |               |          |            |         |               |   |           |   |  |           |           |  |              |   |          |              | 
|Total assets                     |  | $              | 20,693,730 |   |               | $        | 65,721,382 |         |               | $ | 4,679,369 |   |  | $         | 7,953,299 |  |              | $ | (398,252 | )            |  | $ | (3,339 | ) |  | $ | 98,646,189 |  
|                                 |  |                |            |   |               |          |            |         |               |   |           |   |  |           |           |  |              |   |          |              | 

14



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RESIDENTIAL CAPITAL CORPORATION


NOTES TO CONDENSED CONSOLIDATED


FINANCIAL STATEMENTS (Unaudited) 
(Continued)


|                                        |  |                |            |   |               |          |            |         |               |   |           |   |  |           |           |   |              |   |         |              |  |   |        |   |  |   |            |  
|--------------------------------------- |  | -------------- | ---------- | - | ------------- | -------- | ---------- | ------- | ------------- | - | --------- | - |  | --------- | --------- | - | ------------ | - | ------- | ------------ |  | - | ------ | - |  | - | ---------- | -
|                                        |  |                |            |   |               | Business |            |         | International |   |           |   |  |           |           |  
|                                        |  | GMAC           |            |   | Residential   |          |            | Capital |               |   | Business  |   |  | Corporate |           |   |              |   |        
|Three Months Ended March 31,            |  | Residential    |            |   | Capital Group |          |            | Group   |               |   | Group     |   |  | and Other |           |   | Eliminations |   |         | Consolidated | 
|                                        |  |                |            |   |               |          |            |         |               |   |           |   |  |           |           |   |              |   |         |              | 
|                                        |  | (In thousands) |           
|2004                                    |  |                |            |   |               |          |            |         |               |   |           |   |  |           |           |   |              |   |         |              |  |   |        |   |  |   |            |  
|Net interest income (expense)           |  | $              | 74,343     |   |               | $        | 484,572    |         |               | $ | 21,703    |   |  | $         | 19,142    |   |              | $ | (5,802  | )            |  | $ |       |   |  | $ | 593,958    |  
|Provision for loan losses               |  |                | (1,515     | ) |               |          | (175,386   | )       |               |   | (5,209    | ) |  |           | (1,014    | ) |              |   | (95     | )            |  |   |       |   |  |   | (183,219   | )
|Other revenue                           |  |                | 175,741    |   |               |          | 176,216    |         |               |   | 42,618    |   |  |           | 42,259    |   |              |   | 97,104  |              |  |   |       |   |  |   | 533,938    |  
|                                        |  |                |            |   |               |          |            |         |               |   |           |   |  |           |           |   |              |   |         |              | 
|Total net revenue                       |  |                | 248,569    |   |               |          | 485,402    |         |               |   | 59,112    |   |  |           | 60,387    |   |              |   | 91,207  |              |  |   |       |   |  |   | 944,677    |  
|Operating expenses                      |  |                | 187,539    |   |               |          | 201,885    |         |               |   | 13,997    |   |  |           | 44,100    |   |              |   | 107,510 |              |  |   |       |   |  |   | 555,031    |  
|                                        |  |                |            |   |               |          |            |         |               |   |           |   |  |           |           |   |              |   |         |              | 
|Income (loss) before income tax expense |  |                | 61,030     |   |               |          | 283,517    |         |               |   | 45,115    |   |  |           | 16,287    |   |              |   | (16,303 | )            |  |   |       |   |  |   | 389,646    |  
|Income tax expense                      |  |                | 24,042     |   |               |          | 108,400    |         |               |   | 17,256    |   |  |           | 3,520     |   |              |   | 1,721   |              |  |   |       |   |  |   | 154,939    |  
|                                        |  |                |            |   |               |          |            |         |               |   |           |   |  |           |           |   |              |   |         |              | 
|Net income (loss)                       |  | $              | 36,988     |   |               | $        | 175,117    |         |               | $ | 27,859    |   |  | $         | 12,767    |   |              | $ | (18,024 | )            |  | $ |       |   |  | $ | 234,707    |  
|                                        |  |                |            |   |               |          |            |         |               |   |           |   |  |           |           |   |              |   |         |              | 
|Total assets                            |  | $              | 16,416,396 |   |               | $        | 59,525,456 |         |               | $ | 3,340,674 |   |  | $         | 6,406,780 |   |              | $ | 10,257  |              |  | $ | (1,936 | ) |  | $ | 85,697,627 |  
|                                        |  |                |            |   |               |          |            |         |               |   |           |   |  |           |           |   |              |   |         |              | 



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





|                          |  |          |   |   |                  |  |    |           |  |  |      |  
|------------------------- |  | -------- | - | - | ---------------- |  | -- | --------- |  |  | ---- | -
|                          |  | Minimum  |   |   | Minimum to be    |  |    | March 31, | 
|                          |  | Required |   |   | Well-Capitalized |  |    | 2005      | 
|                          |  |          |   |   |                  |  |    |           | 
|Tier 1 leverage           |  |          | 4 | % |                  |  | 5  | %         |  |  | 11.2 | %
|Tier 1 risk-based capital |  |          | 4 |   |                  |  | 6  |           |  |  | 18.7 |  
|Total risk-based capital  |  |          | 8 |   |                  |  | 10 |           |  |  | 18.8 |  



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







15



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATED BALANCE SHEET


March 31, 2005


|                                           |                                                    |                        |           |           |              |   |               |              |            |   |              |            |            |              |            |            |            |   |            |            |            | 
|------------------------------------------ | -------------------------------------------------- | ---------------------- | --------- | --------- | ------------ | - | ------------- | ------------ | ---------- | - | ------------ | ---------- | ---------- | ------------ | ---------- | ---------- | ---------- | - | ---------- | ---------- | ---------- | 
|                                           |                                                    |                        |           | Guarantor |              |   | Non-Guarantor |              |            |   |              |           
|                                           |                                                    | Parent                 |           |           | Subsidiaries |   |               | Subsidiaries |            |   | Eliminations |            |            | Consolidated |           
|                                           |                                                    |                        |           |           |              |   |               |              |            |   |              |            |            |              |           
|                                           |                                                    | (Dollars in thousands) |          
|ASSETS                                    
|Cash and cash equivalents                  |                                                    | $                      |          |           |              | $ | 154,595       |              |            | $ | 440,035      |            |            | $            | (50,858    | )          |            | $ | 543,772    |           
|Mortgage loans held for sale               |                                                    |                        |          |           |              |   | 4,556,331     |              |            |   | 11,741,743   |            |            |              | 3,825      |            |            |   | 16,301,899 |           
|Trading securities                         |                                                    |                        |          |           |              |   | 3,688,950     |              |            |   | 2,119,171    |            |            |              | (11,451    | )          |            |   | 5,796,670  |           
|Available for sale securities              |                                                    |                        |          |           |              |   | 2,036,079     |              |            |   | 106,446      |            |            |              | (800,289   | )          |            |   | 1,342,236  |           
|Mortgage loans held for investment, net    |                                                    |                        |          |           |              |   | 2,426,901     |              |            |   | 52,629,256   |            |            |              |           |            |            |   | 55,056,157 |           
|Lending receivables, net                   |                                                    |                        |          |           |              |   | 2,305,093     |              |            |   | 6,783,202    |            |            |              | (10,938    | )          |            |   | 9,077,357  |           
|Mortgage servicing rights, net             |                                                    |                        |          |           |              |   | 3,668,180     |              |            |   | 4,142        |            |            |              |           |            |            |   | 3,672,322  |           
|Accounts receivable                        |                                                    |                        |          |           |              |   | 1,162,647     |              |            |   | 1,964,019    |            |            |              | (361,231   | )          |            |   | 2,765,435  |           
|Investments in real estate and other       |                                                    |                        |          |           |              |   | 200,247       |              |            |   | 1,256,508    |            |            |              |           |            |            |   | 1,456,755  |           
|Goodwill                                   |                                                    |                        |          |           |              |   | 214,073       |              |            |   | 238,150      |            |            |              |           |            |            |   | 452,223    |           
|Other assets                               |                                                    |                        |          |           |              |   | 1,431,661     |              |            |   | 1,400,917    |            |            |              | (651,215   | )          |            |   | 2,181,363  |           
|Investment in subsidiaries                 |                                                    |                        | 4,757,764 |           |              |   | 3,197,075     |              |            |   |             |            |            |              | (7,954,839 | )          |            |   |           |           
|                                           |                                                    |                        |           |           |              |   |               |              |            |   |              |            |            |              |           
|Total assets                               |                                                    | $                      | 4,757,764 |           |              | $ | 25,041,832    |              |            | $ | 78,683,589   |            |            | $            | (9,836,996 | )          |            | $ | 98,646,189 |           
|                                           |                                                    |                        |           |           |              |   |               |              |            |   |              |            |            |              |           
|                                          
|LIABILITIES                               
|Borrowings:                                |                                                    |                        |           |           |              |   |               |              |            |   |              |            |            |              |            |            |            |   |            |           
|                                           | Affiliate borrowings                               |                        | $         |          |              |   | $             | 8,557,400    |            |   | $            | 1,712,429  |            |              | $          |           |            |   | $          | 10,269,829 |           
|                                           | Collateralized borrowings in securitization trusts |                        |           |          |              |   |               | 1,220        |            |   |              | 49,308,806 |            |              |            | (11,451    | )          |   |            | 49,298,575 |           
|                                           | Other borrowings                                   |                        |           |          |              |   |               | 12,353,047   |            |   |              | 17,301,570 |            |              |            | (1,172,234 | )          |   |            | 28,482,383 |           
|                                           |                                                    |                        |           |           |              |   |               |              |            |   |              |            |            |              |           
|                                           |                                                    | Total borrowings       |           |           |             |   |               |              | 20,911,667 |   |              |            | 68,322,805 |              |            |            | (1,183,685 | ) |            |            | 88,050,787 | 
|Deposit liabilities                        |                                                    |                        |          |           |              |   |              |              |            |   | 2,061,739    |            |            |              | (50,858    | )          |            |   | 2,010,881  |           
|Other liabilities                          |                                                    |                        |          |           |              |   | (627,599      | )            |            |   | 5,103,918    |            |            |              | (649,562   | )          |            |   | 3,826,757  |           
|                                           |                                                    |                        |           |           |              |   |               |              |            |   |              |            |            |              |           
|Total liabilities                          |                                                    |                        |          |           |              |   | 20,284,068    |              |            |   | 75,488,462   |            |            |              | (1,884,105 | )          |            |   | 93,888,425 |           
|                                          
|STOCKHOLDERS EQUITY                      
|Common stock and paid-in capital           |                                                    |                        | 1,292,486 |           |              |   | 1,292,486     |              |            |   | 1,222,408    |            |            |              | (2,514,894 | )          |            |   | 1,292,486  |           
|Retained earnings                          |                                                    |                        | 3,281,756 |           |              |   | 3,281,756     |              |            |   | 1,771,985    |            |            |              | (5,053,741 | )          |            |   | 3,281,756  |           
|Accumulated other comprehensive income     |                                                    |                        | 183,522   |           |              |   | 183,522       |              |            |   | 200,734      |            |            |              | (384,256   | )          |            |   | 183,522    |           
|                                           |                                                    |                        |           |           |              |   |               |              |            |   |              |            |            |              |           
|Total stockholders equity                 |                                                    |                        | 4,757,764 |           |              |   | 4,757,764     |              |            |   | 3,195,127    |            |            |              | (7,952,891 | )          |            |   | 4,757,764  |           
|                                           |                                                    |                        |           |           |              |   |               |              |            |   |              |            |            |              |           
|Total liabilities and stockholders equity |                                                    | $                      | 4,757,764 |           |              | $ | 25,041,832    |              |            | $ | 78,683,589   |            |            | $            | (9,836,996 | )          |            | $ | 98,646,189 |           
|                                           |                                                    |                        |           |           |              |   |               |              |            |   |              |            |            |              |           

16



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATED STATEMENT OF INCOME


Three Months Ended March 31, 2005


|                                                     |  |                        |         |           |              |   |               |              |  |   |              |  |  |              |          |   |  |   |           |  
|---------------------------------------------------- |  | ---------------------- | ------- | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ |  |  | ------------ | -------- | - |  | - | --------- | -
|                                                     |  |                        |         | Guarantor |              |   | Non-Guarantor |              |  |   |              | 
|                                                     |  | Parent                 |         |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |  |  | Consolidated |         
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |  |  |              |         
|                                                     |  | (Dollars in thousands) |        
|Revenue                                              |  |                        |         |           |              |   |               |              |  |   |              |  |  |              |          |   |  |   |           |  
|Interest income                                      |  | $                      |        |           |              | $ | 211,656       |              |  | $ | 1,108,123    |  |  | $            | (9,799   | ) |  | $ | 1,309,980 |  
|Interest expense                                     |  |                        |        |           |              |   | 119,313       |              |  |   | 658,512      |  |  |              | (11,915  | ) |  |   | 765,910   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |  |  |              |         
|Net interest income                                  |  |                        |        |           |              |   | 92,343        |              |  |   | 449,611      |  |  |              | 2,116    |   |  |   | 544,070   |  
|Provision for loan losses                            |  |                        |        |           |              |   | 54,813        |              |  |   | 101,019      |  |  |              |         |   |  |   | 155,832   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |  |  |              |         
|Net interest income after provision for loan losses  |  |                        |        |           |              |   | 37,530        |              |  |   | 348,592      |  |  |              | 2,116    |   |  |   | 388,238   |  
|Gain on sale of mortgage loans, net                  |  |                        |        |           |              |   | 171,426       |              |  |   | 157,365      |  |  |              | 852      |   |  |   | 329,643   |  
|Servicing fees                                       |  |                        |        |           |              |   | 346,037       |              |  |   | 1,864        |  |  |              | (507     | ) |  |   | 347,394   |  
|Amortization and impairment of servicing rights      |  |                        |        |           |              |   | (140,105      | )            |  |   | 325          |  |  |              |         |   |  |   | (139,780  | )
|Servicing asset valuation and hedge loss, net        |  |                        |        |           |              |   | (67,861       | )            |  |   |             |  |  |              |         |   |  |   | (67,861   | )
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |  |  |              |         
|Net servicing fees                                   |  |                        |        |           |              |   | 138,071       |              |  |   | 2,189        |  |  |              | (507     | ) |  |   | 139,753   |  
|Gain on investment securities, net                   |  |                        |        |           |              |   | 54,233        |              |  |   | 17,882       |  |  |              |         |   |  |   | 72,115    |  
|Real estate related revenues                         |  |                        |        |           |              |   | 46,714        |              |  |   | 84,660       |  |  |              |         |   |  |   | 131,374   |  
|Other income                                         |  |                        |        |           |              |   | 18,322        |              |  |   | 75,519       |  |  |              | (27,387  | ) |  |   | 66,454    |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |  |  |              |         
|Total net revenue                                    |  |                        |        |           |              |   | 466,296       |              |  |   | 686,207      |  |  |              | (24,926  | ) |  |   | 1,127,577 |  
|Expenses                                             |  |                        |         |           |              |   |               |              |  |   |              |  |  |              |          |   |  |   |           |  
|Compensation and benefits                            |  |                        |        |           |              |   | 208,623       |              |  |   | 111,308      |  |  |              |         |   |  |   | 319,931   |  
|Professional fees                                    |  |                        |        |           |              |   | 40,759        |              |  |   | 9,539        |  |  |              |         |   |  |   | 50,298    |  
|Data processing and telecommunications               |  |                        |        |           |              |   | 33,148        |              |  |   | 16,297       |  |  |              |         |   |  |   | 49,445    |  
|Advertising                                          |  |                        |        |           |              |   | 32,623        |              |  |   | 6,682        |  |  |              |         |   |  |   | 39,305    |  
|Occupancy                                            |  |                        |        |           |              |   | 18,654        |              |  |   | 10,913       |  |  |              |         |   |  |   | 29,567    |  
|Other                                                |  |                        |        |           |              |   | 68,647        |              |  |   | 67,974       |  |  |              | (26,440  | ) |  |   | 110,181   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |  |  |              |         
|Total expenses                                       |  |                        |        |           |              |   | 402,454       |              |  |   | 222,713      |  |  |              | (26,440  | ) |  |   | 598,727   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |  |  |              |         
|Income before income tax expense                     |  |                        |        |           |              |   | 63,842        |              |  |   | 463,494      |  |  |              | 1,514    |   |  |   | 528,850   |  
|Income tax expense                                   |  |                        |        |           |              |   | 51,055        |              |  |   | 155,450      |  |  |              | 550      |   |  |   | 207,055   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |  |  |              |         
|Income before equity in net earnings of subsidiaries |  |                        |        |           |              |   | 12,787        |              |  |   | 308,044      |  |  |              | 964      |   |  |   | 321,795   |  
|Equity in net earnings of subsidiaries               |  |                        | 321,795 |           |              |   | 309,008       |              |  |   |             |  |  |              | (630,803 | ) |  |   |          |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |  |  |              |         
|Net income                                           |  | $                      | 321,795 |           |              | $ | 321,795       |              |  | $ | 308,044      |  |  | $            | (629,839 | ) |  | $ | 321,795   |  
|                                                     |  |                        |         |           |              |   |               |              |  |   |              |  |  |              |         

17



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATED STATEMENT OF INCOME


Three Months Ended March 31, 2004


|                                                            |  |                        |   |              |  |   |               |   |  |              |         |   |              |   |          |   |  |   |           |  
|----------------------------------------------------------- |  | ---------------------- | - | ------------ |  | - | ------------- | - |  | ------------ | ------- | - | ------------ | - | -------- | - |  | - | --------- | -
|                                                            |  |                        |   | Guarantor    |  |   | Non-Guarantor |   |  |              |         |  
|                                                            |  | Parent                 |   | Subsidiaries |  |   | Subsidiaries  |   |  | Eliminations |         |   | Consolidated |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |         |   |              |  
|                                                            |  | (Dollars in thousands) |  
|Revenue                                                     |  |                        |   |              |  |   |               |   |  |              |         |   |              |   |          |   |  |   |           |  
|Interest income                                             |  | $                      |  |              |  | $ | 189,243       |   |  | $            | 914,109 |   |              | $ | (4,162   | ) |  | $ | 1,099,190 |  
|Interest expense                                            |  |                        |  |              |  |   | 79,191        |   |  |              | 430,203 |   |              |   | (4,162   | ) |  |   | 505,232   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |         |   |              |   |         
|Net interest income                                         |  |                        |  |              |  |   | 110,052       |   |  |              | 483,906 |   |              |   |         |   |  |   | 593,958   |  
|Provision for loan losses                                   |  |                        |  |              |  |   | 70,673        |   |  |              | 112,546 |   |              |   |         |   |  |   | 183,219   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |         |   |              |   |         
|Net interest income after provision for loan losses         |  |                        |  |              |  |   | 39,379        |   |  |              | 371,360 |   |              |   |         |   |  |   | 410,739   |  
|Gain on sale of mortgage loans, net                         |  |                        |  |              |  |   | 111,612       |   |  |              | 96,491  |   |              |   | (5,668   | ) |  |   | 202,435   |  
|Servicing fees                                              |  |                        |  |              |  |   | 312,411       |   |  |              | (5,330  | ) |              |   | (901     | ) |  |   | 306,180   |  
|Amortization and impairment of servicing rights             |  |                        |  |              |  |   | (316,062      | ) |  |              | 99      |   |              |   |         |   |  |   | (315,963  | )
|Servicing asset valuation and hedge gain, net               |  |                        |  |              |  |   | 130,403       |   |  |              |        |   |              |   |         |   |  |   | 130,403   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |         |   |              |   |         
|Net servicing fees                                          |  |                        |  |              |  |   | 126,752       |   |  |              | (5,231  | ) |              |   | (901     | ) |  |   | 120,620   |  
|Gain (loss) on investment securities, net                   |  |                        |  |              |  |   | 42,847        |   |  |              | (31,684 | ) |              |   |         |   |  |   | 11,163    |  
|Real estate related revenues                                |  |                        |  |              |  |   | 31,759        |   |  |              | 78,131  |   |              |   |         |   |  |   | 109,890   |  
|Other income                                                |  |                        |  |              |  |   | 38,755        |   |  |              | 69,437  |   |              |   | (18,362  | ) |  |   | 89,830    |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |         |   |              |   |         
|Total net revenue                                           |  |                        |  |              |  |   | 391,104       |   |  |              | 578,504 |   |              |   | (24,931  | ) |  |   | 944,677   |  
|Expenses                                                    |  |                        |   |              |  |   |               |   |  |              |         |   |              |   |          |   |  |   |           |  
|Compensation and benefits                                   |  |                        |  |              |  |   | 188,443       |   |  |              | 95,820  |   |              |   |         |   |  |   | 284,263   |  
|Professional fees                                           |  |                        |  |              |  |   | 35,540        |   |  |              | 8,897   |   |              |   |         |   |  |   | 44,437    |  
|Data processing and telecommunications                      |  |                        |  |              |  |   | 34,384        |   |  |              | 11,666  |   |              |   |         |   |  |   | 46,050    |  
|Advertising                                                 |  |                        |  |              |  |   | 28,175        |   |  |              | 5,363   |   |              |   |         |   |  |   | 33,538    |  
|Occupancy                                                   |  |                        |  |              |  |   | 16,229        |   |  |              | 8,957   |   |              |   |         |   |  |   | 25,186    |  
|Other                                                       |  |                        |  |              |  |   | 82,279        |   |  |              | 58,540  |   |              |   | (19,262  | ) |  |   | 121,557   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |         |   |              |   |         
|Total expenses                                              |  |                        |  |              |  |   | 385,050       |   |  |              | 189,243 |   |              |   | (19,262  | ) |  |   | 555,031   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |         |   |              |   |         
|Income before income tax expense                            |  |                        |  |              |  |   | 6,054         |   |  |              | 389,261 |   |              |   | (5,669   | ) |  |   | 389,646   |  
|Income tax expense                                          |  |                        |  |              |  |   | 12,982        |   |  |              | 143,941 |   |              |   | (1,984   | ) |  |   | 154,939   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |         |   |              |   |         
|Income (loss) before equity in net earnings of subsidiaries |  |                        |  |              |  |   | (6,928        | ) |  |              | 245,320 |   |              |   | (3,685   | ) |  |   | 234,707   |  
|Equity in net earnings of subsidiaries                      |  |                        |  |              |  |   | 241,635       |   |  |              |        |   |              |   | (241,635 | ) |  |   |          |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |         |   |              |   |         
|Net income                                                  |  | $                      |  |              |  | $ | 234,707       |   |  | $            | 245,320 |   |              | $ | (245,320 | ) |  | $ | 234,707   |  
|                                                            |  |                        |   |              |  |   |               |   |  |              |         |   |              |   |         

18



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS


Three Months Ended March 31, 2005


|                                                                                 |  |                        |   |              |  |   |               |   |  |              |            |   |              |   |         |   |  |   |            |  
|-------------------------------------------------------------------------------- |  | ---------------------- | - | ------------ |  | - | ------------- | - |  | ------------ | ---------- | - | ------------ | - | ------- | - |  | - | ---------- | -
|                                                                                 |  |                        |   | Guarantor    |  |   | Non-Guarantor |   |  |              |            |  
|                                                                                 |  | Parent                 |   | Subsidiaries |  |   | Subsidiaries  |   |  | Eliminations |            |   | Consolidated |  
|                                                                                 |  |                        |   |              |  |   |               |   |  |              |            |   |              |  
|                                                                                 |  | (Dollars in thousands) |  
|                                                                                 |  | Restated               |  
|NET CASH USED IN OPERATING ACTIVITIES                                            |  | $                      |  |              |  | $ | (7,377,119    | ) |  | $            | (333,386   | ) |              | $ | (7,718  | ) |  | $ | (7,718,223 | )
|CASH FLOWS FROM INVESTING ACTIVITIES:                                            |  |                        |   |              |  |   |               |   |  |              |            |   |              |   |         |   |  |   |            |  
|Net (increase) decrease in lending receivables                                   |  |                        |  |              |  |   | (155,917      | ) |  |              | 478,235    |   |              |   |         |   |  |   | 322,318    |  
|Originations and purchases of mortgage loans held for investment                 |  |                        |  |              |  |   | (3,889,244    | ) |  |              | (884,845   | ) |              |   |        |   |  |   | (4,774,089 | )
|Proceeds from sales and repayments of mortgage loans held for
    investment     |  |                        |  |              |  |   | 2,882,811     |   |  |              | 5,140,901  |   |              |   |        |   |  |   | 8,023,712  |  
|Purchases of available for sale securities                                       |  |                        |  |              |  |   | (297,803      | ) |  |              |           |   |              |   |        |   |  |   | (297,803   | )
|Proceeds from sales and repayments of available for sale
    securities          |  |                        |  |              |  |   | 160,457       |   |  |              |           |   |              |   |        |   |  |   | 160,457    |  
|Additions to mortgage servicing rights                                           |  |                        |  |              |  |   | (27,471       | ) |  |              | (573       | ) |              |   |        |   |  |   | (28,044    | )
|Purchase of and advances to investments in real estate and other                 |  |                        |  |              |  |   | (1,682        | ) |  |              | (203,769   | ) |              |   |        |   |  |   | (205,451   | )
|Proceeds from sales of and returns of investments in real estate
    and other   |  |                        |  |              |  |   | 37,523        |   |  |              | 134,282    |   |              |   |        |   |  |   | 171,805    |  
|Payment of capital contribution                                                  |  |                        |  |              |  |   | (32,965       | ) |  |              |           |   |              |   | 32,965  |   |  |   |           |  
|Other, net                                                                       |  |                        |  |              |  |   | (3,720        | ) |  |              | 26,496     |   |              |   |        |   |  |   | 22,776     |  
|                                                                                 |  |                        |   |              |  |   |               |   |  |              |            |   |              |   |        
|Net cash provided by (used in) investing activities                              |  |                        |  |              |  |   | (1,328,011    | ) |  |              | 4,690,727  |   |              |   | (32,965 | ) |  |   | 3,395,681  |  
|CASH FLOWS FROM FINANCING ACTIVITIES                                             |  |                        |   |              |  |   |               |   |  |              |            |   |              |   |         |   |  |   |            |  
|Net increase (decrease) in affiliate borrowings                                  |  |                        |  |              |  |   | 440,400       |   |  |              | (176,813   | ) |              |   |        |   |  |   | 263,587    |  
|Net increase in other short-term borrowings                                      |  |                        |  |              |  |   | 4,263,803     |   |  |              | 232,389    |   |              |   |        |   |  |   | 4,496,192  |  
|Proceeds from issuance of collateralized borrowings in
    securitization trusts |  |                        |  |              |  |   | 3,507,011     |   |  |              | 244,134    |   |              |   |        |   |  |   | 3,751,145  |  
|Repayments of collateralized borrowings in securitization trusts                 |  |                        |  |              |  |   |              |   |  |              | (5,086,291 | ) |              |   |        |   |  |   | (5,086,291 | )
|Proceeds from other long-term borrowings                                         |  |                        |  |              |  |   |              |   |  |              | 453,854    |   |              |   |        |   |  |   | 453,854    |  
|Repayments of other long-term borrowings                                         |  |                        |  |              |  |   |              |   |  |              | (250,925   | ) |              |   |        |   |  |   | (250,925   | )
|Proceeds from capital contribution                                               |  |                        |  |              |  |   |              |   |  |              | 32,965     |   |              |   | (32,965 | ) |  |   |           |  
|Increase in deposit liabilities                                                  |  |                        |  |              |  |   |              |   |  |              | 345,911    |   |              |   |        |   |  |   | 345,911    |  
|                                                                                 |  |                        |   |              |  |   |               |   |  |              |            |   |              |   |        
|Net cash provided by (used in) financing activities                              |  |                        |  |              |  |   | 8,211,214     |   |  |              | (4,204,776 | ) |              |   | (32,965 | ) |  |   | 3,973,473  |  
|Effect of foreign exchange rates on cash and cash equivalents                    |  |                        |  |              |  |   |              |   |  |              | (6,242     | ) |              |   |        |   |  |   | (6,242     | )
|                                                                                 |  |                        |   |              |  |   |               |   |  |              |            |   |              |   |        
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                             |  |                        |  |              |  |   | (493,916      | ) |  |              | 146,323    |   |              |   | (7,718  | ) |  |   | (355,311   | )
|CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                 |  |                        |  |              |  |   | 648,511       |   |  |              | 293,712    |   |              |   | (43,140 | ) |  |   | 899,083    |  
|                                                                                 |  |                        |   |              |  |   |               |   |  |              |            |   |              |   |        
|CASH AND CASH EQUIVALENTS AT END OF PERIOD                                       |  | $                      |  |              |  | $ | 154,595       |   |  | $            | 440,035    |   |              | $ | (50,858 | ) |  | $ | 543,772    |  
|                                                                                 |  |                        |   |              |  |   |               |   |  |              |            |   |              |   |        









19



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##### Table of Contents



RESIDENTIAL CAPITAL CORPORATION


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS


Three Months Ended March 31, 2004


|                                                                                 |  |                        |   |              |  |   |               |   |  |              |            |   |              |   |          |   |  |   |             |  
|-------------------------------------------------------------------------------- |  | ---------------------- | - | ------------ |  | - | ------------- | - |  | ------------ | ---------- | - | ------------ | - | -------- | - |  | - | ----------- | -
|                                                                                 |  |                        |   | Guarantor    |  |   | Non-guarantor |   |  |              |            |  
|                                                                                 |  | Parent                 |   | Subsidiaries |  |   | Subsidiaries  |   |  | Eliminations |            |   | Consolidated |  
|                                                                                 |  |                        |   |              |  |   |               |   |  |              |            |   |              |  
|                                                                                 |  | (Dollars in thousands) |  
|                                                                                 |  | Restated               |  
|NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                              |  | $                      |  |              |  | $ | (1,954,180    | ) |  | $            | 776,525    |   |              | $ | 420,860  |   |  | $ | (756,795    | )
|CASH FLOWS FROM INVESTING ACTIVITIES:                                            |  |                        |   |              |  |   |               |   |  |              |            |   |              |   |          |   |  |   |             |  
|Net (increase) decrease in lending receivables                                   |  |                        |  |              |  |   | (527,640      | ) |  |              | 116,941    |   |              |   |         |   |  |   | (410,699    | )
|Originations and purchases of mortgage loans held for investment                 |  |                        |  |              |  |   | (10,061,770   | ) |  |              | (188,441   | ) |              |   |         |   |  |   | (10,250,211 | )
|Proceeds from sales and repayments of mortgage loans held for
    investment     |  |                        |  |              |  |   | 2,014,888     |   |  |              | 2,602,163  |   |              |   |         |   |  |   | 4,617,051   |  
|Purchases of available for sale securities                                       |  |                        |  |              |  |   | (12,955       | ) |  |              |           |   |              |   |         |   |  |   | (12,955     | )
|Proceeds from sales and repayments of available for sale
    securities          |  |                        |  |              |  |   | 4,108         |   |  |              |           |   |              |   |         |   |  |   | 4,108       |  
|Additions to mortgage servicing rights                                           |  |                        |  |              |  |   | (56,506       | ) |  |              | (268       | ) |              |   |         |   |  |   | (56,774     | )
|Purchase of and advances to investments in real estate and other                 |  |                        |  |              |  |   | (3,354        | ) |  |              | (98,538    | ) |              |   |         |   |  |   | (101,892    | )
|Proceeds from sales of and returns of investments in real estate
    and other   |  |                        |  |              |  |   | 60,328        |   |  |              | 117,154    |   |              |   |         |   |  |   | 177,482     |  
|Payment of capital contribution                                                  |  |                        |  |              |  |   | (28,925       | ) |  |              |           |   |              |   | 28,925   |   |  |   |            |  
|Other, net                                                                       |  |                        |  |              |  |   | (45,337       | ) |  |              | 16,406     |   |              |   |         |   |  |   | (28,931     | )
|                                                                                 |  |                        |   |              |  |   |               |   |  |              |            |   |              |   |         
|Net cash provided by (used in) investing activities                              |  |                        |  |              |  |   | (8,657,163    | ) |  |              | 2,565,417  |   |              |   | 28,925   |   |  |   | (6,062,821  | )
|CASH FLOWS FROM FINANCING ACTIVITIES                                             |  |                        |   |              |  |   |               |   |  |              |            |   |              |   |          |   |  |   |             |  
|Net increase (decrease) in affiliate borrowings                                  |  |                        |  |              |  |   | (161,382      | ) |  |              | 10,946     |   |              |   |         |   |  |   | (150,436    | )
|Net increase (decrease) in other short-term borrowings                           |  |                        |  |              |  |   | 1,365,765     |   |  |              | (1,300,696 | ) |              |   |         |   |  |   | 65,069      |  
|Proceeds from issuance of collateralized borrowings in
    securitization trusts |  |                        |  |              |  |   | 8,826,016     |   |  |              | 423,449    |   |              |   | (423,449 | ) |  |   | 8,826,016   |  
|Repayments of collateralized borrowings in securitization trusts                 |  |                        |  |              |  |   |              |   |  |              | (2,788,924 | ) |              |   |         |   |  |   | (2,788,924  | )
|Repayments of other long-term borrowings                                         |  |                        |  |              |  |   |              |   |  |              | (150,000   | ) |              |   |         |   |  |   | (150,000    | )
|Proceeds from capital contribution                                               |  |                        |  |              |  |   |              |   |  |              | 28,925     |   |              |   | (28,925  | ) |  |   |            |  
|Increase in deposit liabilities                                                  |  |                        |  |              |  |   |              |   |  |              | 289,386    |   |              |   |         |   |  |   | 289,386     |  
|                                                                                 |  |                        |   |              |  |   |               |   |  |              |            |   |              |   |         
|Net cash provided by (used in) financing activities                              |  |                        |  |              |  |   | 10,030,399    |   |  |              | (3,486,914 | ) |              |   | (452,374 | ) |  |   | 6,091,111   |  
|Effect of foreign exchange rates on cash and cash equivalents                    |  |                        |  |              |  |   |              |   |  |              | 3,144      |   |              |   |         |   |  |   | 3,144       |  
|                                                                                 |  |                        |   |              |  |   |               |   |  |              |            |   |              |   |         
|NET DECREASE IN CASH AND CASH EQUIVALENTS                                        |  |                        |  |              |  |   | (580,944      | ) |  |              | (141,828   | ) |              |   | (2,589   | ) |  |   | (725,361    | )
|CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                 |  |                        |  |              |  |   | 666,430       |   |  |              | 295,671    |   |              |   | (21,008  | ) |  |   | 941,093     |  
|                                                                                 |  |                        |   |              |  |   |               |   |  |              |            |   |              |   |         
|CASH AND CASH EQUIVALENTS AT END OF PERIOD                                       |  | $                      |  |              |  | $ | 85,486        |   |  | $            | 153,843    |   |              | $ | (23,597  | ) |  | $ | 215,732     |  
|                                                                                 |  |                        |   |              |  |   |               |   |  |              |            |   |              |   |         







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