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Fidelity Investments and GMAC Mortgage Announce Innovative New Mortgage Program; Customers Can Receive Up To 100 Percent Mortgage Financing With No Cash Down Payment

Business Wire, March 23, 1999

BOSTON--(BUSINESS WIRE)--March 23, 1999--Fidelity Investments(R), one of the nation's leading providers of financial services, and GMAC Mortgage Corporation, a leading national mortgage lender and servicer, today announced the Fidelity Pledged Asset Program. This innovative new mortgage financing program allows customers of Fidelity Brokerage Services, Inc. to use their assets as security for a mortgage loan, which may eliminate the need to liquidate assets to obtain cash for a down payment.

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The Pledged Asset Program offers Fidelity brokerage customers who have an activated margin feature(1) mortgage financing of up to 100 percent of their home's value with no cash down payment. It can be a valuable money management and investment tool that makes it possible for customers to use a portion of their eligible assets to secure a mortgage loan while those assets remain invested.

"Working with GMAC Mortgage, Fidelity is providing customers with an excellent, exciting new service," said Stephen A. Cone, president, Fidelity Customer Marketing and Development. "Just as Fidelity is committed to helping individuals plan for retirement and manage wealth, we have made a new commitment to helping customers meet their needs for home financing in a way that allows their assets the possibility of continued growth."

Mortgage Financing Made Easy

Customers may be able to obtain a mortgage loan for the full value of their home--with no down payment--by pledging a portion of their Fidelity assets to secure the loan from GMAC Mortgage. Instead of making a cash down payment, customers can keep the money in their account and a portion of qualified assets will be leveraged to secure the down payment. At the same time, by avoiding the need to liquidate assets, customers may be able to avoid capital gains and income taxes that can be triggered by liquidation.(2)

Customers can continue to trade, redeem, or exchange pledged assets as long as the required level of equity is maintained in the account. If the market value of the securities in the account declines, the customer may be required to deposit more money or securities to maintain the line of credit. If the customer is unable to do so, Fidelity may be required to sell all or a portion of the pledged assets. Margin investing involves greater risks and is not suitable for all investors.

"No other mortgage financing program gives home buyers the same benefits and flexibility as the Pledged Asset Program," said Mike O'Brien, president, GMAC Mortgage. "Buyers can take advantage of this program whether they are purchasing a home or refinancing. We believe that the program that GMAC Mortgage is offering with Fidelity Investments is ideally suited for their sophisticated customers."

The Pledged Asset Program offers mortgage financing with fixed and adjustable rate mortgages, and balloon payment mortgages. Fidelity customers will receive a preferential fee structure, and all mortgage applications and management will be handled over the telephone and in correspondence by a specially trained team of GMAC Mortgage specialists. The program also allows customers to help a family member or someone close to them(3) obtain mortgage financing through the use of the customer's leveraged assets.

About Fidelity Investments

Fidelity Investments is the nation's largest mutual fund company and a leading provider of financial services. Fidelity offers investment management, retirement, brokerage and shareholder services directly to individuals and institutions, and through financial intermediaries. The firm also is the No. 1 provider of 401(k) retirement savings plans, the second largest discount brokerage firm and the third largest provider of 403(b) retirement plans for not-for-profit institutions in the United States. At February 28, 1999, Fidelity had total managed assets of $779.7 billion.

About GMAC Mortgage

GMAC Mortgage Corporation, based in Horsham, Pa., is an indirect wholly owned subsidiary of General Motors Acceptance Corporation (GMAC). It is one of the nation's leading mortgage bankers, servicing first and second mortgage loans for more than 1.5 million customers and originating loans from a nationwide retail branch network of more than 280 offices. More information on GMAC Mortgage is available at http://www.gmacmortgage.com.

Mortgage services provided through GMAC Mortgage. Mortgage services through this program may not be available in all states. Brokerage services provided by Fidelity Brokerage Services, Inc. Member NYSE, SIPC. GMAC Mortgage is an equal housing lender.

(1)Margin credit is extended by National Financial Services Corporation, member NYSE, SIPC, a Fidelity Investments company

(2)Investors should consult a tax advisor for advice on their own circumstances

(3)Certain limitations apply

Business Services Industry

Fidelity Investments and GMAC Mortgage Announce Innovative New Mortgage Program; Customers Can Receive Up To 100 Percent Mortgage Financing With No Cash Down Payment

Business Wire, March 23, 1999

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