The residential servicer ratings of Homecomings Financial Network LLC and GMAC-RFC have been downgraded and placed on Rating Watch Negative by Fitch Ratings.The Homecomings residential primary servicer rating for prime product was downgraded from RPS1 to RPS1-minus, and its residential primary servicer ratings for alternative-A, subprime, high loan-to-value, and home equity/home equity lines of credit products were downgraded from RPS1 to RPS2-plus. The company's residential special servicer rating was downgraded from RSS1 to RSS1-minus. GMAC-RFC's residential master servicer rating was downgraded from RMS1 to RMS2-plus. The rating actions "reflect the underlying corporate ratings of Homecomings' and GMAC-RFC's parent, Residential Capital LLC," whose senior debt was recently downgraded from BBB to BB-plus and placed on Rating Watch Negative, Fitch reported. 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 Homecomings' and GMAC-RFC's loan servicing operations." Fitch can be found online at http://www.fitchratings.com.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry