GMAC Financiera, S.A. de C.V. is a wholly owned Mexican subsidiary of the US residential mortgage company GMAC Residential Funding Corporation (GMAC RFC), itself a subsidiary of GMAC Financial Services (GMAC FS). The company was setup in 2000 as part of GMAC RFC’s international strategy which identified Mexico as one of the growth countries for its mortgage operations. The company provides mortgage and construction warehouse lines of credit to specialized financial intermediaries (Sofols), and is building its presence in the secondary housing finance market through its securitization program. GMAC Financiera has developed an extended business relationship with most of the largest Sofols and has participated in two of the first three MBS issuances in the country. The company is recognized as an important alternative source of funding for Sofols and a key player in the Mexican secondary housing finance market. GMAC Financiera has enjoyed a rapid growth since its inception. Its loan portfolio has grown from MXN332 million ($36 million) as of December 2001 to MXN5.4 billion ($482 million) as of June 2004. The project consists of a $150 million line of credit to GMAC Financiera (the company), to finance the origination of eligible mortgage loans, and a Credit Enhancement Facility of $50 million to support the company’s mortgage-backed securities (MBS) program. In addition, the IFC would provide a Swap Facility of up to $15 million in loan-equivalent exposure terms, to hedge the market risks associated with the US Dollar loans.