Office of Thrift Supervision

General Motors Approved By OTS To Organize A Federal Thrift

WASHINGTON, D.C., April 20, 2000 – The Office of Thrift Supervision (OTS) has granted a thrift charter to General Motors Corporation (GM), Detroit. The new thrift, GMAC Bank, which will be located in Wilmington, Del., will be a full service banking operation. OTS also approved GM’s request to establish the GMAC Mortgage Corporation as an operating subsidiary of the thrift.

GM, GMAC Residential Holding Corp. – which will hold all the stock in the new bank – and two other GM subsidiaries become thrift holding companies. Founded in 1908, GM is the world’s largest automobile manufacturer. It filed its application with OTS in August 1998, prior to the May 4, 1999 deadline under Gramm-Leach-Bliley Act of 1999.

GMAC Bank will offer its products and services to the public through its Wilmington office, but will conduct the majority of its business through GMAC Mortgage Corp., which currently serves 1.6 million households nationwide. As a subsidiary of the federally chartered savings bank, GMAC Mortgage Corp. will be able to market standardized loan products nationwide. GMAC Bank will be one of the nation’s largest originators and servicers of residential mortgage loans and home equity loans.

The bank’s product line will include a full menu of residential loans, such as first-time home buyer programs, fixed and adjustable rate first mortgage and home equity loans, jumbo loans and new construction financing. The thrift is required to hire a compliance officer dedicated to managing its compliance program that covers all fair lending and consumer protection laws and regulations. Its CRA plan includes a $6 billion commitment to lend to low- and moderate-income markets and individuals throughout the nation over the next five years.

The thrift is required to maintain a tangible capital ratio of at least 8 percent for the first three years of operation. OTS requires the thrift to provide an initial analysis of its interest rate risk exposure, and submit any material change to its approved business plan for OTS approval.

At least 40 percent of the thrift’s directors must be individuals who are not employees of the holding companies or affiliates, and at least one member has to be independent of the thrift, holding company and affiliates. Officers and directors must comply with anti-tying laws and regulations governing conflict of interest, fiduciary duties and other policies and rules pertaining to the thrift’s operations.

Approval Order for General Motors <

The Office of Thrift Supervision (OTS), an office of the U.S. Treasury, regulates and supervises the nation's thrift industry. OTS's mission is to ensure the safety and soundness of thrift institutions and to support their role as home mortgage lenders and providers of other community credit and financial services. For copies of news releases or other documents visit the OTS web page at www.ots.treas.gov.

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Created: Thursday, 4/20/2000