Fremont's Servicer Rating Downgraded

The residential primary servicer rating of Fremont Investment & Loan for subprime product has been lowered from RPS3-plus to RPS4 by Fitch Ratings.The rating was also placed on Rating Watch Negative. As recently reported in MortgageWire, Fremont General Corp., FIL's Santa Monica, Calif.-based parent company, is in discussions to sell its subprime division after agreeing to a cease-and-desist order with the Federal Deposit Insurance Corp. Fitch said the actions were based on the disclosure about the C&D order. Fitch rates residential servicers on a scale of 1 to 5, with 1 being the highest rating. The rating agency can be found online at http://www.fitchratings.com.