Servicer Ratings Lowered for Indymac, Sub

The residential servicer ratings of Indymac Bank FSB and a subsidiary have been downgraded by Fitch Ratings. Indymac Bank's primary servicer rating for prime product was downgraded from RPS2 to RPS3-plus, its primary servicer ratings for alternative-A and subprime product were downgraded from RPS2 to RPS3, and its special servicer rating was downgraded from RSS2 to RSS3. The ratings remain on Rating Watch Negative. In addition, the residential primary specialty-reverse servicer rating of Financial Freedom Senior Funding Corp., the company's reverse mortgage subsidiary, has been downgraded from RPS3-plus to RPS3 and placed on Rating Watch Negative. The actions "reflect the company's challenges in returning to profitability and [its] decision to defer dividend payments on preferred stock" issued by Indymac Bank and its holding company, Indymac Bancorp, Fitch said.