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Fitch Takes Various Actions on GMACM Home Equity Loan Trust 2001-HE2

--$14,719,784.54 class I-A-1 notes affirmed at 'BBB/LS1';

--$11,411,044.21 class I-A-2 notes downgraded to 'BB/LS1' from 'BBB';

--$283,274.60 class II-A-5 notes affirmed at 'BBB/LS1';

--$9,762,364.43 class II-A-7 notes affirmed at 'BBB/LS1'.

Fitch also places the class II-A-7 notes on Rating Watch Negative.

Expected losses (EL) were determined on this transaction by assigning a frequency of foreclosure (FOF) to each delinquency bucket in the transaction. Since the pool is 100% second lien collateral a severity assumption of 100% was utilized.

A cash flow analysis was performed to assess each bond's credit risk. Fitch determined the amount of pool collateral losses that will cause the bond to experience a dollar of impairment which is referred to as the bond's break loss (BL). This analysis takes into account a bond's position in the capital structure, payment priority, and any other structural features that provide loss protection to the bond.

The relationship between the bond's BL and the EL is used to determine the bond's loss coverage ratio (LCR). This is used to drive the ratings on the transaction. The ratings on the notes address the timely payment of interest and ultimate repayment of principal upon maturity.

In conjunction with these rating actions, Fitch Ratings has assigned Loss Severity (LS) ratings to four bonds in this transaction. Introduced in February 2009, LS ratings are meant to complement the existing long-term credit (LTC) ratings for structured finance securities. LTC ratings exclusively address the probability of default of a security. The LS ratings provide an indication of the relative degree of risk that a security might suffer a high loss severity in the event that the security defaults. It will always be necessary to consider loss severity (as indicated by the LS rating) in conjunction with probability of default (as indicated by the LTC rating.) The LS rating scale consists of five rating categories from 'LS1' to 'LS5'. LS ratings are only assigned to securities that have corresponding LTC ratings in rating categories 'AAA' through 'B'. The LS rating category to be assigned will be determined through a calculation that measures the size of the tranche (tranche thickness) relative to the base expected loss determined for the asset portfolio underlying the transaction. Additional information is available in Fitch's Feb. 17 global report, 'Criteria for Structured Finance Loss Severity Ratings', available at www.fitchratings.com.

Additional details are available in the following research, also available at www.fitchratings.com:

--'Updated Surveillance Criteria for U.S. Subprime RMBS' (Nov. 19, 2008);

--'U.S. Subprime RMBS/HEL Upgrade/Downgrade Criteria' (June 12, 2007).

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

Fitch Ratings, New York
Tara Sweeney, 212-908-0347
Michele Patterson, 212-908-0779
Sandro Scenga, 212-908-0278 (Media Relations)
sandro.scenga@fitchratings.com