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| Residential Capital LLC’s servicer ratings have been upgraded.
Fitch Ratings said today that it raised ResCap’s primary servicer rating to RPS3 from RPS4 for prime, Alt-A, subprime, high loan-to-value and home-equity line-of-credit loans. In addition, the GMAC-subsidiary’s specialty-subservicer and special-servicer ratings were also bumped to RSS3 from RSS4. In December 2008, Fitch had downgraded some of the servicer ratings to RPS4 from RPS3. Servicer ratings range from the worst of RSS5- to the best of RSS1+. “The upgrades reflect the continuing evolution of ResCap’s financial condition through the company’s current difficult cycle,” Fitch stated. GMAC’s continued financial support, an experienced management team and a “robust technology platform” were among other factors cited. Fitch noted that more than 300 servicing staffers have been added since its last review. The additions addressed increased modification and loan defaults, while bankruptcies and foreclosures are now handled under the same management. A new servicing site was recently opened in Carlsbad, Calif, and sites already existed in Dallas, Fort Washington, Pa., and Waterloo, Iowa. A master servicing operation is located in Burbank, Calif. ResCap serviced nearly 2.7 million loans for $386.3 billion as of April 30, down from 2.8 million units for $400.3 billion as of Dec. 31, 2008, according to the ratings agency. Nonprime mortgages accounted for around 28 percent of the April 30 portfolio, and non-agency prime represented 14 percent. The rest of the portfolio was government and conforming. “The company continues to maintain a strong servicing operation with an experienced staff, acceptable controls, and a proficient and focused technology platform,” Fitch said. |
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