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Class II-B-2 of Credit Suisse First Boston Mortgage Securities Corp. series 2002-22 has been placed under review for possible downgrade by Moody's Investors Service.The action is based on the fact that the bonds' credit enhancement levels, including excess spread, are low compared with the projected loss numbers for the current rating level, the rating agency said. Cumulative losses in the deal have exceeded the rating agency's original expectations, Moody's said. The company can be found online at http://www.moodys.com.

Bresler & Reiner Inc., Washington, has announced the completion of a $40 million private placement of 30-year trust preferred securities through a newly created subsidiary, Bresler & Reiner Statutory Trust I.The proceeds of the private placement will be used to repay debt with less favorable terms and provide added liquidity for future investments, the company said. The securities bear interest at 8.37% for the first five years, and thereafter at the three-month London interbank offered rate plus 3.50%. They are redeemable at par beginning in January 2011. Bresler & Reiner, which owns and develops commercial and residential properties, can be found online at http://www.breslerandreiner.com.

Genworth Financial, Richmond, Va., has reported the pricing of General Electric's secondary public offering of 38 million class A shares of Genworth's common stock at $34.66 per share.Genworth, whose mortgage insurance subsidiary is headquartered in Raleigh, N.C., said GE would own approximately 18% of Genworth's common stock if the underwriter's overallotment option to buy up to 2.85 million additional shares is exercised. (The sole underwriter of the offering is Morgan Stanley & Co.) Genworth said it will not receive any proceeds from the transaction. The company noted that GE has indicated its intention to sell its remaining holdings in Genworth by the end of next year. Genworth can be found online at http://www.genworth.com.

Fiserv Inc. has announced the formation of Fiserv Lending Solutions' Portfolio Services, Boulder, Colo., which will target the secondary mortgage market.The new company will help those in the mortgage portfolio investment business identify and mitigate risks in their portfolios, Fiserv said. "We help firms get comfortable with what they are paying for when they have a portfolio of residential mortgage loans," said James L. Smith, executive vice president of FLS-Portfolio Services. "That helps facilitate whole-loan sales transactions of their mortgage-backed securities for Wall Street firms." Fiserv can be found on the Web at http://www.fiserv.com.

Meanwhile, Freddie Mac's board of directors has announced a dividend of $0.47 per share on the corporation's voting common stock for the fourth quarter, up 34% from $0.35 in the fourth quarter."Today's dividend announcement reflects our strong capital position and demonstrates our increasing confidence in Freddie Mac's long-term business prospects," said Richard F. Syron, Freddie's chairman and chief executive officer. The board also declared the following preferred stock dividends per share: $0.47 on its 1996 and 1998 variable-rate stock; $0.7675 on its 6.14% stock; $0.72625 on its 1997, 2001, and 2002 5.81% stock; $0.625 on its 5% stock; $0.6375 on its 1998 and 1999 5.1% stock; $0.6625 on its 5.3% stock; $0.72375 on its 5.79% stock; $0.4475 on its 1999 variable-rate stock; $0.49125 on its January 2001 variable-rate stock; $0.46511 on its March 2001 variable-rate stock; $0.48125 on its May 2001 variable-rate stock; $0.75 on its 6% stock; and $0.7125 on its 5.7% stock. The dividends will be payable on Dec. 30 to stockholders of record as of Dec. 12.

Freddie Mac is projecting third-quarter earnings of $600 million, including a $190 million after-tax hit due to storm damage caused by hurricanes Katrina and Rita.It projects earnings of $2.1 billion through the first nine months of the year, a 19% decline from those of the same period last year. In a conference call late Dec. 1, the government-sponsored enterprise said it now has a GSE market share of 45%, compared with 41% last year. Freddie Mac, which is almost finished working its way through a $5 billion accounting scandal, is required by its regulator to have excess capital of $12 billion. At the end of September it surpassed that goal by $4.7 billion, spurring it to increase its dividend. (See related story below.)

Mortgage lenders and brokers added 8,000 full-time employees to their payrolls in October after completing a robust third quarter in which originations hit levels not seen in two years.The U.S. Bureau of Labor Statistics reported Friday that employment in the mortgage industry rose from 527,400 in September to 535,400 in October. (There is a one-month lag in BLS reporting of mortgage-sector employment data. The November data will be released Jan. 6.) The number of people working in the mortgage industry has increased by more than 100,000 since January 2004. But it appears that the housing boom has reached a turning point, and additional hiring may end soon. The Mortgage Bankers Association's mortgage application index dropped from 713.5 in the last week of September to 635.5 for the week ended Nov. 18. Friday's employment report indicates that the U.S. economy generated 215,000 new jobs in November and the unemployment rate remained unchanged at 5.0%. The BLS can be found online at http://stats.bls.gov.

Countrywide Home Loans, Calabasas, Calif., the nation's largest mortgage banking firm, plans to close two "central processing units," cutting about 300 jobs in the process. The company labeled the moves as "strategic" but also cited a downturn in loan applications and what a spokesman called a "seasonal" decline in production. The CPUs that will be shuttered Jan. 3 are in Westlake Village, Calif. (200 jobs), and Sunrise, Fla. (100 jobs). The company said it will rely more on its 39 regional operations centers. Come January it will have just two CPUs, which are more national in scope. Lenders are starting to experience a decline in loan production, but executives say their biggest concern isn't volume but profit margins. They cite a flat yield curve as a key factor and the reluctance of some originators to raise their rates.

Three classes of mortgage-backed securities from various transactions aggregated by Lehman Brothers Inc. have been downgraded by Moody's Investors Service.The downgrades were as follows: Structured Asset Securities Corp. series 2001-BC1, class M1, from Aa2 to A3, class M2, from A2 to Baa3, and class M3, from Baa2 to Baa3. In addition, Moody's upgraded 45 classes, confirmed the ratings on two classes, placed six classes on watch for possible upgrade, and withdrew the ratings on eight classes following their redemption. The downgrades were prompted by credit enhancement levels that are low in view of projected losses on the underlying pools, Moody's said.

Three subordinate tranches from two subprime mortgage transactions issued by Metropolitan Asset Funding Inc. in 1999 and 2000 have been downgraded by Moody's Investors Service.The downgrades were as follows: series 1999-B, class B-2, from Ba2 to B2, and class B-3, from B2 to Caa2; and series 2000-A, class M-2, from B3 to Caa2. The downgrades were attributed to the weaker-than-expected performance of the mortgage pools and the resulting erosion of credit support. "Specifically, the overcollateralization in the 1999-B deal is almost completely depleted and the class B-3 certificates are likely to experience losses in the near future," Moody's said. "In addition, the overcollateralization in the 2000-A deal has been fully exhausted, the class B-1 certificates have been fully written down, and the class M-2 certificates have realized losses." The pools are backed by first-lien fixed-rate subprime mortgage loans, and they include "a significant amount" of seller-financed loans and loans with small average balances, the rating agency reported. Moody's can be found online at http://www.moodys.com.