GMAC-RFC said Friday that effective January 24, it had terminated the subservicing rights of Mortgage Lenders Network USA, Inc. as well as the associated servicing rights of Emax Financial Group, LLC. MLN was a subservicer for EMAX on a number of deals which named Residential Funding Company as master servicer, and RFC said its termination applies to loans serviced on its behalf or on behalf of its securitization trusts. MLN had previously agreed to the termination of the subservicing agreement between MLN and EMAX as noted in the current report on Form 8-K filed with the Securities and Exchange Commission on January 4, 2007.
RFC did not provide information on a transfer of servicing rights subsequent to the termination, although industry sources have told Housing Wire that it is likely that any impacted loans will be serviced by GMAC/Homecomings going forward. Residential Funding Company is an indirect subsidiary of Residential Capital; ResCap is the corporate parent of GMAC-RFC, GMAC Mortgage,, as well as Homecomings Financial.