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.
