Minneapolis-based GMAC-Residential Funding Corp. (GMAC-RFC) is looking to increase its high-loan-to-value (HLTV) and subprime operations, sources at the company said.

"GMAC-RFC is committed to a 30% growth increase in its growth areas," said Peter Baynard, managing director and national sales manager for the consumer finance group at RFC. "I would categorize the subprime and the 125% HLTV as a growth target for GMAC-RFC.

"RFC believes that we have a very good process of reviewing the credit and the risks associated with the subprime business," he added.

"We take a similar approach on the HLTV side," he said. "Clearly, we are one of very few buyers of 125s. We take what we think is a very appropriate view of the risk of that business and we believe that we have the ability to manage the risks through our operational and our servicing strategies."

Baynard points to the change in market conditions and RFC's financial stability due to its alliance with GMAC as the factors that allowed the company to expand its operations in these sectors.

"The many changes that have occurred in the marketplace and the financial stability of GMAC as a parent provided us with the opportunity to expand in those arenas," he said.

In line with this renewed focus on subprime products, GMAC-RFC has appointed new marketing directors for its California, New York and upper-midwest operations.

The new marketing heads for California are Marty Richardson and Robert Villapando. Richardson came from North Carolina-based First Union Home Equity while Villapando came from Aames Financial Corp., in Los Angeles.

Headed for GMAC-RFC's New York branch is Colleen Morse, who was working for ContiMortgage before joining the company.

Meanwhile, Jane White, who is based in the firm's Minneapolis office, was promoted to marketing director to expand the company's upper-midwest subprime and HLTV business.

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