Servicing

Class M of GMAC Commercial Mortgage Securities Inc.'s mortgage pass-through certificates, series 2000-C1, has been downgraded from CC to C by Fitch Ratings.Fitch also upgraded five classes from the transaction and affirmed the ratings on eight other classes. The downgrade was attributed to expected losses on several specially serviced loans that would hurt credit enhancement levels. Three assets representing 3.2% of the pool are in special servicing and real estate owned, and losses are expected on two of them, the rating agency reported. Additionally, one loan has been transferred into special servicing since the August distribution date. Fitch can be found online at http://www.fitchratings.com.

LandAmerica Financial Group Inc., Richmond, Va., has reported an agreement with the Arizona Department of Insurance under which it will resolve disagreements over captive reinsurance transactions by voluntarily contributing $1 million to relief efforts related to Hurricane Katrina.LandAmerica said the "discussions over the propriety and legality" of such arrangements had been resolved "cooperatively and creatively" because the department agreed that no Arizona consumer had paid more for title insurance under captive reinsurance transactions. "We especially appreciate the willingness of the Arizona DOI to seek a creative resolution to our discussions and are grateful for this novel approach in a time of crisis for so many," said Theodore L. Chandler Jr., LandMark's president and chief executive officer. The $1 million will be given to Arizona chapters of the American Red Cross to benefit Arizona citizens and the hurricane victims recently evacuated to Arizona.

The nationwide inventory of foreclosed residential properties rose 3% in August, according to Foreclosure.com, an online foreclosure listing service based in Boca Raton, Fla.There were 24,328 new foreclosed residential properties listed in the United States in August, and such properties totaled 93,440 overall, the company reported. "Foreclosure inventory has been steadily increasing since May, representing a slowdown in the purchase of foreclosed homes," said Brad Geisen, president and chief executive officer of Foreclosure.com. "This trend of sustained high inventory presents a strong investment opportunity for buyers, as lenders are challenged with greater holding and disposition costs the longer that they have to hold on to a property." The company can be found online at http://www.foreclosure.com.

Prepayment rates for agency mortgage-backed securities were generally flat for 5.0% and 5.5% coupons but increased as much as 12% for higher coupons in the August reporting period, according to Bear Stearns.Bear Stearns analyst Dale Westhoff attributed the strength of the numbers to the three additional business days in August, which he said "clearly offset" the rise in mortgage rates that took place during the period. Discount prepayment rates maintained a record pace in August, he reported, noting that the speed of the huge 2003 vintage 5.0% coupon rose from a constant prepayment rate of 18.4 CPR in July to 19.1 CPR. "This pace continues to be over 50% faster than historical averages and reflects rising home prices and vigorous cash-out refinancing activity," Mr. Westhoff said. "It is important to note that so far the massive flattening in the yield curve has had little impact on discount/current coupon MBS prepayments." The Bear Stearns analyst said speeds are likely to slow significantly in September. Bear Stearns can be found online at http://www.bearstearns.com.

Freddie Mac has announced a three-month suspension of mortgage collections for mortgage borrowers in major disaster areas designated by the Federal Emergency Management Agency in the wake of Hurricane Katrina.Freddie said it is instructing its servicers to suspend mortgage collections for the months of September, October, and November. "This temporary suspension will apply to every borrower with a Freddie Mac-owned single-family mortgage in these FEMA-designated zones, regardless of the condition of their home," said Richard F. Syron, Freddie's chairman and chief executive officer. After the three months, servicers will have the discretion to continue suspending or reducing payments for an additional nine months on a case-by-case basis, depending on each borrower's circumstances, according to an advisory letter sent to Freddie Mac's 2,300 single-family servicers. Other newly announced policies allow servicers to return September mortgage payments that have already been made but not reported to Freddie; instruct servicers not to report to credit bureaus any reversed and suspended payments on Freddie-owned loans as a result of Katrina during the suspension period; and instructs them to suspend all late fees, collection, and foreclosure activities in the storm-affected areas during the suspension period.

Mortgage Assistance Center Corp., Dallas, has announced the acquisition of 100% of the capital stock of Mortgage Assistance Corp. in a reverse merger transaction.The transaction, which took effect Aug. 22, included the issuance of approximately 11 million shares of MACC common stock to three shareholders of Mortgage Assistance Corp. who currently own 87.1% of the company's stock. Mortgage Assistance Corp. is a specialty financial acquisitions company that buys nonperforming mortgage promissory notes at a discount and then re-performs, manages, and resells the notes or the underlying real estate to unaffiliated investors. Dale J. Hensel, president and chief executive officer of MACC, said his company "sees great opportunity in the nonconforming and subprime mortgage assets that have become problems for mortgage bankers, commercial banks, and other financial institutions. As more traditional financial institutions have moved aggressively into subprime mortgage lending in recent years, they are inevitably discovering nonperforming loans, delinquencies, and foreclosed properties in their loan portfolios that do not meet regulatory standards or the requirements for securitization." MACC can be found online at http://www.mac-tx.com.

Ginnie Mae has announced that in December it will begin disclosing more comprehensive information about its securities.The agency said it will report the number and the unpaid principal balance of loans that are paid off in full, repurchased by issuers due to delinquency, or liquidated from the pool due to foreclosure. Ginnie Mae will also disclose information regarding loans that are 30, 60, or 90 or more days delinquent and include the number and unpaid principal balance of interest rate buydown loans backing its mortgage-backed securities. Ginnie Mae noted that since February 2004 it has moved from quarterly to monthly disclosures and has begun reporting the loan-to-value ratio, purpose, property type, original loan amount, and year of origination for loans backing its securities. "Our investors have been asking for more details," said Steve Ledbetter, Ginnie Mae's director of securities, policy, and research, who is leading the disclosure initiative. "We believe these enhancements will greatly increase understanding of our securities and lead to better pricing in the secondary market." Ginnie Mae can be found online at http://www.ginniemae.gov.

The Appraisal Institute has announced a Web board to enable members in areas affected by Hurricane Katrina to discuss appraisal issues online and find publications related to appraising property after a natural disaster.The organization said it has organized a bibliography of articles and publications on the subject that can be accessed in the members-only section of its website. The institute is offering a 40% discount on its publications to members located in Louisiana and Mississippi, and to members in other affected states on a case-by-case basis. The trade group can be found on the Web at http://www.appraisalinstitute.org.

New York-based Time Equities, an investor in real estate, development, and property management, will donate shelter to at least 200 people left homeless by Hurricane Katrina in its vacant apartments in the Dallas-Fort Worth area.Francis Greenburger, chief executive officer of Time Equities, said the victims will receive shelter with no rent or utility payments for three months while they make plans to rebuild their lives. Thousands of Louisiana residents recently fled to Texas to escape Katrina's wrath. "It might be easier to simply donate money, but we in the real estate industry have something tangible to offer -- shelter, and we should do all we can to help those left homeless by the hurricane," said Mr. Greenburger. The company will work with the local Dallas chapter of the American Red Cross and other relief organizations to shelter the displaced in two apartment complexes in Fort Worth and Mesquite, a suburb of Dallas.

Radian Guaranty Inc., a Philadelphia-based provider of mortgage insurance, has announced that it will support more flexible mortgage payment terms to accommodate homeowners in the areas affected by Hurricane Katrina.Radian said its forbearance guidelines will enable loan servicers to apply Fannie Mae's and Freddie Mac's special relief provisions to mortgage loans for which Radian has insured the first-lien portion. In addition, Radian will make the guidelines available to servicers of private-label mortgage-backed securities and nonconforming loans that Radian has insured. Under these provisions, loan servicers and lenders will have the flexibility to offer various resolution scenarios, including suspension of mortgage payments for up to six full payments; repayment plans of up to 24 months; loan modifications to help bring delinquent loans current; and suspension of pending foreclosures for up to three months. Radian Guaranty, a subsidiary of credit enhancement provider Radian Group Inc., can be found online at http://www.radian.biz.