GMAC-RFC, the most prolific ABS issuer over the past year-and-a-half recently introduced a new securitization product backed by what could become a new sub-sector in the mortgage related ABS market. Residential Asset Acquisition Corp. Trust (RAAC), issued off the RAMP shelf, is backed by heavily seasoned collateral acquired by RFC's Principal Investment Activities group acquired from banks selling assets and prime scratch and dent loans. Many of the loans were repurchased by originators following deal clean-up calls, as factors shrank during the three-year-long refi wave.

RAAC is actually a derivative of GMAC-RFC's RAMP shelf, which securitizes loans that do not conform to any of its other programs. Some of the collateral in the inaugural series 2004-SP1 was originated in the mid 1970's, according to sources, and were purchased in the whole loan market. In fact, the SP nomenclature stands for "Seasoned Portfolio."

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