Fitch Ratings has downgraded the U.S. residential mortgage servicer ratings of GMAC Mortgage LLC (GMAC Mortgage) as follows:
--Residential primary servicer rating for prime product to 'RPS4'from 'RPS3';
--Residential primary servicer rating for Alt-A product to 'RPS4'from 'RPS3';
--Residential primary servicer rating for subprime product to 'RPS4'from 'RPS3';
--Residential primary servicer rating for HLTV product to 'RPS4'from 'RPS3';
--Residential primary servicer rating for HELOC product to 'RPS4'from 'RPS3';
--Residential primary servicer rating for subservicer to 'RPS4'from 'RPS3';
--Residential special servicer rating to 'RSS4'from 'RSS3'.
The rating downgrades are due to the bankruptcy filing by GMAC Mortgage's parent, Residential Capital LLC (ResCap), on May 14, 2012. Fitch had placed GMAC Mortgage's servicer ratings on Rating Watch Negative on April 19, 2012. Fitch does not expect the downgrade of GMAC Mortgage's primary and special servicer ratings to affect the RMBS ratings at this point. On April 19th, Fitch reviewed all transactions that are serviced by GMAC Mortgage and placed 157 classes on Rating Watch Negative. These classes were identified as being at risk for a rating revision due to the increased risk of a servicer disruption. Fitch will resolve the Rating Watch Negative for the 157 classes as more is disclosed about the future of the servicing for each respective pool over the coming weeks.
Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within some of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information on Fitch's residential servicer rating program, please see Fitch's report 'U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria', dated Jan. 31, 2011, which is available on the Fitch Ratings web site at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Global Rating Criteria for Structured Finance Servicers' (Aug. 13, 2010);
--'U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria' (Jan. 31, 2011).
Applicable Criteria and Related Research:
Global Rating Criteria for Structured Finance Servicers
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547305
U.S. Residential and Small Balance Commercial Mortgage Servicer Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=600065
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