Dear ResCap Associates:

I can’t begin to tell you how exciting it is to be a part of the Residential Finance Group. I’ve been working with GMAC ResCap for eight months now, and over the last few weeks in my new role, I’ve met with a number of groups throughout the RFG and worked closely with the leadership team. It is clear to me that the company has a rich and successful history, a reputation second to none, and talented associates who have made it a strong force in the industry. Even when facing the toughest challenges of this past year, your loyalty and dedication remain strong, and I am proud to join your team.

Let me assure you that we have a plan in place to restore the RFG to profitability and remain a significant player in the industry. Together, our objectives for 2008 include:

• Net Income – Our goal is to continue to progress toward profitability. In 2007, we lost $4 billion, but it was portfolio related. Our Target for 2008 is to break even.
• Operating Expense/People Metrics – With the restructuring behind us, we are leaner and stronger than we were a year ago. Our leaders and associates must continue to remove any unnecessary expenses from our operations and lower our costs to make us more profitable.
• Performance Culture –We will set objectives and metrics that are vertically and horizontally integrated with mid- and year-end reviews so that there is a clear line from performance to compensation.

We will succeed in meeting these objectives only if we have an engaged workforce. My promise to you is to communicate often so you will know exactly where we stand. The good news I can share now is that we are performing to plan for the first two months of 2008, and we’re off to a good start.

We must continue to work as one company – one winning team – to help us improve our business practices. In addition, while difficult market conditions remain beyond our control, it is up to us drive ahead. It’s not going to be easy, but there is no limit to what we can accomplish.

I look forward to working with all of you.

Paul Bossidy