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Fitch Ratings Slashes ResCap Credit Ratings

""Fitch Ratings"":http://www.fitchratings.com/web/en/dynamic/fitch-home.jsp downgraded servicer ratings for ""Residential Capital LLC"":https://www.rescapholdings.com/ on the heels of a bankruptcy filing by the ""Ally Financial"":http://www.ally.com/financial/ subsidiary.

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The ratings agency slashed credit ratings for the residential servicer to RMS4, down from RMS3.

""The ratings downgrade is due to the bankruptcy filing by RFC's parent, Residential Capital LLC,"" Fitch said in a statement, adding that analysts placed the company on negative rating watch.

Earlier Monday Ally Financial announced that Residential Capital, or ResCap, decided to file Chapter 11 bankruptcy, selling assets from the estate to Lewisville, Texas-based ""Nationstar Mortgage Holdings Inc"":https://www.nationstarmtg.com/.

Nationstar billed the maneuver as one that would make it the nation's largest non-bank residential mortgage lender and one of the largest residential mortgage originators.

The market shift takes place as numerous other lenders and servicers shrink their share of the residential mortgage market.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.
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