April 19 - Fitch Ratings has placed 157 RMBS classes serviced by GMAC
Mortgage on Rating Watch Negative. GMAC Mortgage (GMAC) is a subsidiary of
Residential Capital LLC (ResCap). The rating actions follow Fitch's downgrade of
ResCap's Issuer Default Rating to 'C' from 'CCC' on April 18. GMAC's servicer
ratings were placed on Rating Watch Negative earlier today.
The RMBS actions reflect increased uncertainty for the servicing portfolio due
to the growing possibility of a bankruptcy or debt restructuring for ResCap.
Although a servicing disruption is still not expected in the most-likely
scenario, Fitch believes the rising risk of a disruption should be considered in
stressed rating scenarios.
A spreadsheet listing the transactions reviewed can be found at
'www.fitchratings.com' by performing a title search for 'Fitch Places Various
GMAC-Serviced RMBS on Rating Watch Negative'.
Close to 80% of the approximately 2,700 RMBS classes rated by Fitch and serviced
by GMAC currently have a non-investment grade or distressed long-term rating. Of
those classes currently with investment-grade ratings, 90% are in the Prime and
Alt-A sectors and were issued primarily prior to 2005.
While Prime and Alt-A transactions currently face a low likelihood of a
servicing disruption, Fitch felt the risk should be reflected in high investment
grade stress scenarios for mortgage pools with a material amount of delinquency.
Pools with higher delinquency may be less attractive to potential buyers of
GMAC's servicing rights. Consequently, Fitch placed 'AAAsf' and 'AAsf' rated
Prime and Alt-A classes on Rating Watch if more than 10% of the mortgage pool is
currently delinquent and GMAC services over 30% of the mortgage pool.
Fitch believes the risk of a servicing disruption is greatest for Subprime
mortgage pools, which likely have fewer potential servicers willing and able to
acquire the servicing rights from GMAC. To reflect this risk, Fitch placed on
Rating Watch all investment grade classes in Subprime transactions in which GMAC
serviced over 30% of the mortgage pool.
In the coming months, Fitch will monitor ResCap's ability and willingness to
meet its financial obligations and the implications for GMAC's servicing
Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.
Applicable Criteria and