GMAC Mortgage Servicer Ratings Lowered

The residential servicer ratings of GMAC Mortgage LLC have been downgraded by Fitch Ratings and placed on Rating Watch Negative.The company's residential primary servicer ratings for prime and alternative-A products were downgraded from RPS1 to RPS1-minus, and its residential primary servicer ratings for subprime, high loan-to-value, and home equity/home equity lines of credit products were downgraded from RPS1 to RPS2-plus. In addition, its primary sub-servicer rating was downgraded from RPS1 to RPS1-minus, and its residential special servicer rating was downgraded from RSS1 to RSS1-minus. The rating actions "reflect the underlying corporate ratings of the company's parent, Residential Capital LLC," whose senior debt was recently downgraded from BBB to BB-plus and placed on Rating Watch Negative, Fitch said. They also reflect "the continued pressure on ResCap's liquidity position and financial flexibility in the increasingly challenged residential mortgage market and its potential impact on GMAC Mortgage's loan servicing operations."