Servicing

Eight classes from six Saxon Asset Securities Trust issues have been downgraded by Fitch Ratings.The downgrades were as follows: series 1999-5, class BF-1, from BB-minus to B-minus; series 2000-2 group 1, class MF-2, from A to BBB; series 2000-3 group 1, class MF-2, from BBB to BB; series 2000-4 group 1, class MF-2, from BBB to BB; series 2001-1 group 1, class MF-2, from BBB to BB; and series 2001-3, class M-1, from AA to A, class M-2, from A to BBB, and class B, from BBB to BB. The downgrades reflect "deterioration in the relationship between credit enhancement and future loss expectations," Fitch said. All the loans -- fixed- and adjustable-rate subprime loans secured by first and second liens -- were originated or acquired by Saxon Mortgage Inc., Glen Allen, Va. "Although losses and delinquency have generally been higher than initially expected, the bonds in transactions prior to series 2001-3 have benefited from trigger requirements, which have prevented credit enhancement from stepping down and overcollateralization from being released," the rating agency said. "It is Fitch's expectation that the triggers in these transactions will continue to fail, and credit enhancement will continue to grow as a percentage of the outstanding pool balance."

Foreclosures continued to decline in California in the second quarter, and smaller home price increases suggest that the state's "unprecedented price boom" of recent years may be ending, according to Foreclosures.com, Fair Oaks, Calif.Overall, 11,715 notices of default were filed in the second quarter, down from 13,363 in the first quarter, the company reported. Alexis McGee, president of Foreclosures.com, said home price appreciation is slowing in both Northern and Southern California. "For example, price appreciation in Orange County has slowed to 8.7%, the lowest rate of increase in more than five years," she said. The company can be found online at http://www.foreclosures.com.

MHI Hospitality Corp., a real estate investment trust based in Williamsburg, Va., has been listed on the new Russell Microcap Index.The index, which was launched July 1, consists of the stocks of the smallest 2,000 companies in the U.S. equity market. MHI, a lodging REIT, can be found on the Web at http://www.mhihospitality.com.

Two classes of GS Mortgage Participation Securities mortgage pass-through certificates have been downgraded by Fitch Ratings.The downgrades, from GSMPS Mortgage Loan Trust 2003-3, were as follows: class B-4, from BB to B, and class B-5, from B to CCC. In addition, the ratings on five other classes from the deal and one class from a second GSMPS transaction were affirmed. The downgrades were attributed to growing average monthly losses in series 2003-3 over the past 12 months, from $73,000 to $115,000 per month. The collateral for the deal consists of reperforming loans backed by the Federal Housing Administration or the Department of Veterans Affairs, Fitch said.

Fitch Ratings has outlined its procedure for evaluating a natural disaster's implications for U.S. commercial mortgage-backed securities, a procedure that it says "shines the spotlight" especially on the master servicer.After a disaster such as Hurricane Dennis, Fitch's CMBS Performance Analytics Group polls master servicers of Fitch-rated transactions to identify deals and loans that may be affected, according to Fitch director Britt Johnson. "Typically, master servicers rely on the Federal Emergency Management Agency's website to identify affected areas and will contact borrowers and property managers directly to determine what damage those properties may have suffered and if the natural disaster may impact the borrower's ability to pay debt service in a timely manner," the Fitch analyst said. The findings are summarized and provided to Fitch, and properties sustaining damage above a certain threshold are included on the master servicers' monthly watchlist reports, the rating agency said. "The master servicers' information helps to identify the exposure within a transaction, with special attention paid to larger loans and any concentrations of affected loans," Fitch explained. The rating agency can be found online at http://www.fitchratings.com.

JER Investors Trust Inc., a McLean, Va.-based specialty finance company that originates and acquires real estate debt securities and loans, has announced the pricing of an initial public offering of approximately 12.2 million shares of common stock at $17.75 per share.Of the total, 12 million shares are being sold by the company and 222,399 are being sold by stockholders. JER Investors said it will not receive any proceeds from the shares sold by stockholders, and that it expects gross proceeds of $213 million from the offering. The underwriters have been granted an option to buy up to about 1.8 million additional shares to cover any overallotments. The lead manager of the offering was Friedman, Billings, Ramsey & Co.

CB Richard Ellis Group, Los Angeles, has announced that it is expanding its commercial mortgage loan servicing business to include Europe.The company says it plans to target portfolio lenders as well as the growing European commercial mortgage-backed securities market. CBRE is a major player in commercial mortgage servicing through its subsidiary, L.J. Melody & Co. Melody's joint venture with GE Commercial Finance Real Estate, GEMSA Loan Services, serviced a commercial loan portfolio of approximately $60 billion as of Dec. 31. GEMSA serves more than 90 portfolio lenders and 150 securitized pools. The company can be found on the Web at http://www.cbre.com.

The Federal Agricultural Mortgage Corp., a government-sponsored enterprise commonly known as Farmer Mac, has announced the formation of a global debt program to help fund its growth.Farmer Mac said it may list global notes issued under the program on the New York Stock Exchange or a foreign exchange. The GSE, which was chartered to provide a secondary market for agricultural real estate and rural housing mortgage loans, can be found on the Web at http://www.chartermac.com.

CapTech Financial Group, a Lighthouse Point, Fla.-based holding company for title agencies, says it will apply for listing on the American Stock Exchange in view of its planned acquisition of Your Title Choice Inc., which has offices in Fort Lauderdale and Tampa.The deal would add $4 million in revenues to CapTech, which currently trades over the counter, thus qualifying it to pursue listing on Amex, the company said. The agencies that CapTech owns do business as National Security Title. CapTech acquired the original National Security Title, which has offices in Lighthouse Point and Tampa, in June. The company said then that the goal was to build a nationwide business of title agencies. As of midday July 14, it was trading at 32.7 cents per share, up 5.7 cents on the day.

Freddie Mac has announced that families whose homes have been damaged or destroyed by Hurricane Dennis can seek mortgage relief aimed at protecting their credit ratings and financial interests in their homes.Freddie Mac said it is encouraging its servicers to provide borrowers with relief through the company's disaster relief guidelines, and advised affected homeowners to contact their mortgage servicers. The government-sponsored enterprise said it also "strongly encourages" servicers to expedite the release of insurance proceeds to help borrowers obtain materials and labor to repair their homes; to waive the assessment of penalties or late fees; and not to report forbearance or delinquencies caused by the hurricane to credit bureaus. Freddie Mac's disaster relief policies can be found at http://www.freddiemac.com/singlefamily/relief.html.