UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): September 27, 2007
COMMISSION FILE NUMBER OF ISSUING ENTITY:
333-140609-03
RAAC SERIES 2007-SP2 TRUST
(Exact name of issuing entity)
COMMISSION FILE NUMBER OF DEPOSITOR:
333-140609
RESIDENTIAL ASSET MORTGAGE PRODUCTS, INC.
(Exact name of depositor as specified in its charter)
RESIDENTIAL FUNDING COMPANY, LLC
(Exact name of sponsor as specified in its charter)
DELAWARE None
(STATE OR OTHER JURISDICTION (I.R.S. EMPLOYER
OF INCORPORATION) IDENTIFICATION NO.)
8400 Normandale Lake Blvd., Suite 250, Minneapolis, MN55437
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
Registrant's telephone number, including area code (952) 857-7000
_________________________________________________________________
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions.
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b))
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 6.02. Change of Servicer or Trustee.
On July 11, 2007 (the "Closing Date"), RAAC Series 2007-SP2 Trust (the "Issuing Entity") issued and sold Mortgage
Asset-Backed Pass-Through Certificates, Series 2007-SP2. As of the Closing Date, Homecomings Financial, LLC
("Homecomings") and GMAC Mortgage, LLC ("GMACM"), each an affiliate of the master servicer, Residential Funding
Company, LLC, and the depositor, Residential Asset Mortgage Products, Inc., acted as subservicers of
approximately 21.1% and 60.0%, respectively, by principal balance of the mortgage loans owned by the Issuing
Entity.
Residential Capital, LLC ("ResCap"), which owns indirectly all of the equity of both Homecomings and GMACM, has
restructured the operations of Homecomings and GMACM. As a result of such restructuring, on September 24, 2007,
Homecomings transferred its servicing platform and certain employees responsible for the servicing function to
its affiliate GMACM.
Subsequent to the transfer of the servicing platform and employees from Homecomings to GMACM, GMACM became the
subservicer for approximately 81.04% (by principal balance of the mortgage loans as of September 1, 2007) of the
mortgage loans owned by the Issuing Entity, and Homecomings will no longer service any of the mortgage loans. In
addition, GMACM will be servicing all of the GMACM and Homecomings servicing portfolios, which will consist of
the aggregate of the amounts set forth below under the headings "GMAC Mortgage LLC Primary Servicing Portfolio"
and "Homecomings Financial, LLC Servicing Portfolio."
GMACM is a Delaware limited liability company and a wholly-owned subsidiary of GMAC Residential Holding Company,
LLC, which is a wholly owned subsidiary of ResCap. ResCap is a Delaware limited liability company and a
wholly-owned subsidiary of GMAC Mortgage Group, LLC, which is a wholly-owned subsidiary of GMAC LLC. On August24, 2007, Fitch Ratings reduced GMACM's residential primary subservicer rating and residential primary servicer
rating for Alt-A product from RPS1 to RPS1- and placed the servicer ratings on Rating Watch Negative.
GMACM began acquiring, originating and servicing residential mortgage loans in 1985 through its acquisition of
Colonial Mortgage Service Company, which was formed in 1926, and the loan administration, servicing operations
and portfolio of Norwest Mortgage, which entered the residential mortgage loan business in 1906. These
businesses formed the original basis of what is now GMACM.
GMACM maintains its executive and principal offices at 1100 Virginia Drive, Fort Washington, Pennsylvania19034.
Its telephone number is (215) 734-5000.
In addition, GMACM purchases mortgage loans originated by GMAC Bank, which is wholly-owned by IB Finance Holding
Company, LLC, a subsidiary of ResCap and GMAC LLC, and which is an affiliate of GMACM. Formerly known as GMAC
Automotive Bank, GMAC Bank, a Utah industrial bank was organized in 2001. As of November 22, 2006, GMAC Bank
became the successor to substantially all of the assets and liabilities of GMAC Bank, a federal savings bank.
GMACM generally retains the servicing rights with respect to loans it sells or securitizes, and also occasionally
purchases mortgage servicing rights from other servicers or acts as a subservicer of mortgage loans (and does not
hold the corresponding mortgage servicing right asset).
As of the six months ended June 30, 2007, GMACM acted as primary servicer and owned the corresponding servicing
rights on approximately 2,271,474 of residential mortgage loans having an aggregate unpaid principal balance of
approximately $284 billion, and GMACM acted as subservicer (and did not own the corresponding servicing rights)
on approximately 334,864 loans having an aggregate unpaid principal balance of over $70.5 billion.
The following tables set forth the dollar amount of mortgage loans serviced by GMACM for the periods indicated,
and the number of such loans for the same period. GMACM was the servicer of a residential mortgage loan portfolio
of approximately $153.6 billion, $13.9 billion, $17.6 billion and $7.0 billion during the year ended December 31,2003 backed by prime conforming mortgage loans, prime non-conforming mortgage loans, government mortgage loans
and second-lien mortgage loans, respectively. GMACM was the servicer of a residential mortgage loan portfolio of
approximately $211.5 billion, $32.0 billion, $18.2 billion and $22.8 billion during the six months ended June 30,2007 backed by prime conforming mortgage loans, prime non-conforming mortgage loans, government mortgage loans
and second-lien mortgage loans, respectively. The percentages shown under "Percentage Change from Prior Year"
represent the ratio of (a) the difference between the current and prior year volume over (b) the prior year
volume.
GMAC MORTGAGE, LLC PRIMARY SERVICING PORTFOLIO
($ IN MILLIONS)
SIX MONTHS
YEAR ENDED DECEMBER 31, ENDED JUNE 30,
2003 2004 2005 2006 2007
Prime conforming mortgage loans
No. of Loans.................. 1,308,284 1,323,249 1,392,870 1,455,919 1,485,410
Dollar Amount of Loans........ $153,601 $165,521 $186,364 $203,894 $211,462
Percentage Change
from Prior Year.......... 2.11% 7.76% 12.59% 9.41% -
Prime non-conforming mortgage loans
No. of Loans.................. 34,041 53,119 69,488 67,462 68,062
Dollar Amount of Loans........ $13,937 $23,604 $32,385 $32,220 $32,035
Percentage Change
from Prior Year.......... 11.12% 69.36% 37.20% (0.51)%
Government mortgage loans
No. of Loans.................. 191,023 191,844 181,679 181,563 175,588
Dollar Amount of Loans........ $17,594 $18,328 $18,098 $18,843 $18,166
Percentage Change
from Prior Year.......... (16.91)% 4.17% (1.25)% 4.12% -
Second-lien mortgage loans
No. of Loans.................. 282,128 350,334 392,261 514,085 542,414
Dollar Amount of Loans........ $7,023 $10,374 $13,034 $20,998 $22,778
Percentage Change
from Prior Year.......... 5.36% 47.71% 25.64% 61.10% -
Total mortgage loans serviced
No. of Loans................... 1,815,476 1,918,546 2,036,298 2,219,029 2,271,474
Dollar Amount of Loans......... $192,155 $217,827 $249,881 $275,955 284,441
Percentage Change
from Prior Year.......... 0.71% 13.36% 14.72% 10.43% -
HOMECOMINGS FINANCIAL, LLC SERVICING PORTFOLIO
Homecomings Servicing Portfolio. The following table sets forth the aggregate principal amount of mortgage loans
serviced by Homecomings for the past five years and for the six months ended June 30, 2007. The percentages
shown under "Percentage Change from Prior Year" represent the ratio of (a) the difference between the current and
prior year volume over (b) the prior year volume.
FIRST LIEN MORTGAGE LOANS
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30,
------------------ ------------------- ------------------ ------------------ ------------------- -------------------
VOLUME BY 2002 2003 2004 2005 2006 2007
PRINCIPAL
BALANCE
Prime $27,343,774,000 $29,954,139,212 $31,943,811,060 $44,570,851,126 $67,401,832,594 $72,144,802,385
Mortgages(1)
Non-Prime $27,384,763,000 $39,586,900,679 $44,918,413,591 $52,102,835,214 $49,470,359,806 $43,013,399,177
Mortgages(2)
Total $54,728,537,000 $69,541,039,891 $76,862,224,651 $96,673,686,340 $116,872,192,400 $115,158,201,562
Prime 49.96% 43.07% 41.56% 46.10% 57.67% 62.65%
Mortgages(1)
Non-Prime 50.04% 56.93% 58.44% 53.90% 42.33% 37.35%
Mortgages(2)
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
PERCENTAGE
CHANGE FROM
PRIOR YEAR(3)
Prime 7.09% 9.55% 6.64% 39.53% 51.22%
Mortgages(1)
Non-Prime 60.71% 44.56% 13.47% 15.99% (5.05)%
Mortgages(2)
Total 28.55% 27.07% 10.53% 25.78% 20.89%
JUNIOR LIEN MORTGAGE LOANS
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30,
----------------- ----------------- --------------------- ----------------- -------------------- -------------------
VOLUME BY 2002 2003 2004 2005 2006 2007
PRINCIPAL
BALANCE
Prime $7,627,424,000 $7,402,626,296 $7,569,300,685 $7,442,264,087 $11,418,858,741 $11,134,597,105
Mortgages(1)
Non-Prime - - - - - -
Mortgages(2)
Total $7,627,424,000 $7,402,626,296 $7,569,300,685 $7,442,264,087 $11,418,858,741 $11,134,597,105
Prime 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Mortgages(1)
Non-Prime - - - - - -
Mortgages(2)
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
PERCENTAGE
CHANGE FROM
PRIOR YEAR(3)
Prime (4.94)% (2.95)% 2.25% (1.68)% 53.43%
Mortgages(1)
Non-Prime - - - - -
Mortgages(2)
Total (4.94)% (2.95)% 2.25% (1.68)% 53.43%
FIRST LIEN MORTGAGE LOANS
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30,
--------------- ------------------ -------------- -------------- --------------- -----------------------
VOLUME BY 2002 2003 2004 2005 2006 2007
NUMBER OF LOANS
Prime Mortgages(1) 125,209 143,645 150,297 187,773 252,493 264,077
Non-Prime Mortgages(2) 257,077 341,190 373,473 394,776 361,125 316,998
Total 382,286 484,835 523,770 582,549 613,618 581,075
Prime Mortgages(1) 32.75% 29.63% 28.70% 32.23% 41.15% 45.45%
Non-Prime Mortgages(2) 67.25% 70.37% 71.30% 67.77% 58.85% 54.55%
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
PERCENTAGE CHANGE FROM
PRIOR YEAR(3)
Prime Mortgages(1) (6.30)% 14.72% 4.63% 24.93% 34.47%
Non-Prime Mortgages(2) 52.85% 32.72% 9.46% 5.70% (8.52)%
Total 26.66% 26.83% 8.03% 11.22% 5.33%
JUNIOR LIEN MORTGAGE LOANS
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30,
--------------- ----------------- --------------- ----------------- ---------- --------------------------
VOLUME BY 2002 2003 2004 2005 2006 2007
NUMBER OF LOANS
Prime Mortgages(1) 217,031 211,585 210,778 199,600 266,900 255,804
Non-Prime Mortgages(2) - - - - - -
Total 217,031 211,585 210,778 199,600 266,900 255,804
Prime Mortgages(1) 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Non-Prime Mortgages(2) - - - - - -
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
PERCENTAGE CHANGE FROM
PRIOR YEAR(3)
Prime Mortgages(1) (5.20)% (2.51)% (0.38)% (5.30)% 33.72%
Non-Prime Mortgages(2) - - - - -
Total (5.20)% (2.51)% (0.38)% (5.30)% 33.72%
(1) Product originated under the Jumbo, Alt A, High Loan to Value First Lien programs and Closed End Home Equity Loan and
Home Equity Revolving Credit Line Loan Junior Lien programs.
(2) Product originated under the Subprime and Negotiated Conduit Asset programs. Subprime Mortgage Loans secured by junior
liens are included under First Lien Mortgage Loans--Non-Prime Mortgages because these types of loans are securitized together
in the same mortgage pools.
(3) Represents year to year growth or decline as a percentage of the prior year's volume.
Billing and Payment Procedures. As servicer, GMACM collects and remits mortgage loan payments, responds to
borrower inquiries, accounts for principal and interest, holds custodial and escrow funds for payment of property
taxes and insurance premiums, counsels or otherwise works with delinquent borrowers, supervises foreclosures and
property dispositions and generally administers the loans. GMACM sends monthly invoices or annual coupon books
to borrowers to prompt the collection of the outstanding payments. Borrowers may elect for monthly payments to
be deducted automatically from bank accounts on the same day every month or may take advantage of on demand ACH
payments made over the internet or via phone. GMACM may, from time to time, outsource certain of its servicing
functions, such as contacting delinquent borrowers, property tax administration and hazard insurance
administration, although any such outsourcing will not relieve GMACM of any of its responsibilities or
liabilities as a servicer.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
RAAC SERIES 2007-SP2 TRUST
(Issuing Entity)
By: Residential Funding Company, LLC, as Master
Servicer
By: /s/ Darsi Meyer
Name: Darsi Meyer
Title: Director
Dated: September 27, 2007
Dates Referenced Herein and Documents Incorporated by Reference
