Fitch Ratings has downgraded GMAC Mortgage's U.S. residential mortgage servicer ratings.

The following rating actions were made: downgraded the firm's residential  primary  servicer  rating  for  prime  product to 'RPS4' from 'RPS3'; lowered residential  primary  servicer  rating  for  Alt-A  product to 'RPS4' from 'RPS3'; downgraded residential  primary  servicer  rating for subprime collateral to 'RPS4' from 'RPS3'; lowered residential  primary  servicer  rating  for  HLTV collateral to 'RPS4' from 'RPS3'; residential  primary  servicer  rating  for  HELOCs to 'RPS4' from 'RPS3'; downgraded residential primary servicer rating for subservicer to 'RPS4' from 'RPS3'; and downgraded residential special servicer rating to 'RSS4' from 'RSS3'.

According to Fitch, the downgrades are a result of the bankruptcy filing by GMAC Mortgage's parent Residential Capital on May 14. 

The rating agency had placed GMAC  Mortgage's  servicer  ratings  on  Rating Watch Negative on April 19.  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 19,  the agency  reviewed  all dear serviced by GMAC Mortgage. It placed  157  classes  on  Rating  Watch  Negative as a result.  These classes were earmarked as being at risk for a rating revision given the rising servicer disruption risk.

The rating agency will resolve the Rating Watch Negative for the 157 classes as more is disclosed regarding the future of the servicing for each respective pool in the coming weeks.

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