American Home's Servicer Ratings Upgraded

Fitch Ratings has raised its residential servicer ratings on American Home Mortgage by one notch, reflecting the company's post-bankruptcy restructuring under new ownership.Fitch raised the company's ratings as a primary servicer of prime loans, alternative-A loans, and home equity loans and lines of credit from RPS4 to RPS3-minus. Fitch also removed American Home Mortgage Servicing from Rating Watch Negative. American Home filed for bankruptcy protection in August of this year. WL Ross & Co., a firm that specializes in turning around distressed companies, acquired the servicing unit in November. As of Oct. 31, American Home Mortgage Servicing managed a portfolio totaling $48 billion of home loans. Fitch rates servicers on a scale of one to five, with one being the highest rating.