DBRS Upgrades Five Classes and Confirms Two Classes of Canada Mortgage Acceptance Corporation Pass-Through Certificates, Series 2004–C2

DBRS has today upgraded the ratings of five classes of Canada Mortgage Acceptance Corporation Pass-Through Certificates, Series 2004 – C2 (the Certificates) as follows:

-- Class B upgraded to AAA from AA
-- Class C upgraded to AA from A
-- Class D upgraded to A from BBB
-- Class E upgraded to BBB from BB
-- Class F upgraded to BB from B

In addition, DBRS has also confirmed two classes of the Certificates as follows:

-- Class A at AAA
-- Class IO at AAA

The upgrade and confirmation are based on the following factors:

First, the high levels of structural enhancement, which are significantly higher than the initial enhancement levels (as of January 31, 2007 Class A had 19.58% credit enhancement, Class B had 13.49% enhancement, Class C had 8.71% and Class D had 5.23%, compared with 11.5%, 8%, 5.25% and 3.25% at closing, respectively);

Second, generally high quality borrowers (the weighted average credit score on origination was 700 as of January 31, 2007 and 695 at closing); and

Third, the experience of GMAC Residential Funding Company LLC (RFC) in the residential mortgage market.

The Class IO Certificates represent interest only “strips” and are sensitive to prepayment assumptions. The AAA rating reflects the requirement that interest payments are made as per the legal documentation and does not evaluate the risks associated with prepayment.

GMAC Residential Funding of Canada (RFOC), the mortgage originator, is a wholly-owned subsidiary of RFC, which is owned by Residential Capital LLC (rated BBB with negative trend as of March 13, 2007). RFOC has issued $2 billion RMBS since 2004. This was RFOC’s second public securitization transaction.

Notes:
All figures are in Canadian dollars unless otherwise noted.