GSR HELOC Classes Downgraded

Two certificates from GSR Mortgage Loan Trust 2005-HEL1 have been downgraded by Moody's Investors Service and four have been placed on review for possible downgrade.Class B-1 was downgraded from Ba1 to C, and class B-2 was downgraded from Ba2 to C. Classes M-3, M-4, M-5, and M-6 were placed on review for possible downgrade. The transaction, backed by home equity line-of-credit loans, has seen recent losses that have "far exceeded" the excess spread available, the rating agency said. "In the last two months, writeoffs have exceeded $15 million, thereby completely depleting the overcollateralization," Moody's reported. "This is due to a recent change in servicing practice by Greenpoint Mortgage Funding Inc."