Fitch Eyes GMAC-RFC Transactions

After evaluating a new technique employed by GMAC-RFC's servicer that originally appeared to pose new risks, Fitch determined that it was not necessary to increase credit enhancement levels for the company's March transactions, the rating agency said in a report released April 10.The ratings company pointed out that the new practice -- loan modification as an alternatives to foreclosures -- can be "a useful loss mitigation technique," the ability of the servicer to administer and report modifications within the parameters of the deal could present additional risks to the transaction. Fitch had been reviewing GMAC-RFC's process for selecting loans that could qualify for capitalization since before the new modification standards were finalized. Fitch can be found on the Web at http://www.fitchratings.com.