Servicing

Dow Jones Indexes, Wilshire Associates, and Wells Real Estate Funds have announced the launch of Wells' newest mutual fund, the first licensed to track the Dow Jones Wilshire Global Real Estate Securities Index.The Wells Dow Jones Wilshire Global RESI Index Fund marks the first time the full global RE securities index -- including publicly traded securities of about 240 real estate operating companies and real estate investment trusts in 24 countries -- has been licensed for an investment product, the companies said. The new mutual fund will seek to provide corresponding investment results by investing in the stocks included in the index. "We're seeing an explosion of interest in REITs and other investment vehicles around the world," said Leo Wells, president of Wells Real Estate Funds. " .... [T]wo dozen countries have created, or are considering, REIT-like structures for investors. We think the time is right to bring this global opportunity to Wells investors." The companies can be found online at http://www.djindexes.com, http://www.wilshire.com, and http://www.wellsref.com.

First Financial Bancorp, Hamilton, Ohio, has announced a strategic partnership with PHH Mortgage, a provider of private-label mortgage services and a subsidiary of PHH Corp., Mt. Laurel, N.J.Under the arrangement, PHH Mortgage will provide First Financial with mortgage loan processing, servicing, secondary-market functions, and other mortgage-related loan origination services for new loans, First Financial said. The company said the partnership will offer its clients a greater variety of mortgage products, faster approvals, reduced documentation requirements for most loans, and 24-hour access to the status of their loan applications. "Partnering with PHH gives us a new mortgage loan operating model with more channels for originating loans, freedom to use our name to create brand equity with our clients, and greater access to technology, products, competitive pricing, and world-class client service," said Claude E. Davis, president and chief executive officer of First Financial. The company can be found online at http://www.ffbc-oh.com.

Mortgage acquisitions by Freddie Mac fell 14% in 2006 to $502 billion, according to figures released by the company.Year-end production volumes for the entire industry have not yet been tabulated, but according to preliminary estimates from the Quarterly Data Report, residential originations fell 6.7% in 2006 to just over $3 trillion. (The QDR is published by National Mortgage News.) At year-end 2006, Freddie Mac's retained portfolio totaled $703.6 billion, compared with $710 billion at year-end 2005. The government-sponsored enterprise can be found on the Web at http://www.freddiemac.com.

Fitch Ratings has assigned its first construction loan servicer rating to JP Morgan Commercial Real Estate Loan Administration, Phoenix.CRELA is rated 'Acceptable' as a construction loan servicer for commercial real estate loans. (Fitch rates construction loan servicers 'Acceptable' or 'Unacceptable.') "The rating considers CRELA's extensive history of construction loan administration, project underwriting and servicing, experienced and tenured management and staff, and the strong operational risk and financial resources provided by its parent, JP Morgan Chase & Co.," Fitch said. The rating also considers CRELA's "extensive use" of technology. Fitch said it is the first rating agency to publish criteria for the rating of construction loan pools. It can be found online at http://www.fitchratings.com.

The bull market in residential mortgage-backed securities in recent years appears to have run its course, according to a new report published by Standard & Poor's Ratings Services.As evidence, S&P pointed to slowing home price appreciation, diminished profitability for mortgage lenders, widening credit spreads, and an acceleration of negative rating actions. Issuance will decline in 2007 by as much as 10%-15%, bringing the dollar amount to $900 billion-$950 billion, S&P said. However, the rating agency said RMBS issuance will still be significantly higher than in 2003 and 2004, when it totaled $586 billion and $864 billion, respectively. "We foresee further compression of the upgrade-to-downgrade ratio because fewer outstanding transactions are now collateralized by prime mortgage loans, and the recent trend in securitization is toward structures with fewer speculative-grade ratings," the rating agency said. S&P said it expects more downgrades and fewer upgrades this year. The report is titled, "For U.S. RMBS, 2007 Will Be a Year of Transition for Issuance and Performance Concerns." S&P can be found online at http://www.standardandpoors.com.

Citigroup has agreed to purchase ABN Amro Mortgage Group, Ann Arbor, Mich., for an undisclosed sum, a purchase that will make it the nation's fourth-largest residential servicer, with $728 billion in receivables.The sale effectively removes AAMG -- once the nation's largest wholesale funder -- as a major player in mortgages. The sale includes the broker platform, InterFirst, and Mortgage.com. AAMG's parent, LaSalle Bank Corp., will continue to fund mortgages and home equity loans through its branch network. According to a statement issued by ABN, Citi will purchase $9 billion in net assets, $3 billion of which represents the value of ABN's $228 billion servicing portfolio. In November, National Mortgage News broke the news that ABN Amro was for sale. The deal is expected to close by the end of the first quarter. The companies can be found online at http://www.citigroup.com and http://www.abnamro.com.

Fitch Ratings has assigned Wachovia Bank NA an RPS2 residential primary servicer rating for home equity and prime products.Fitch said the rating is based on the company's "experienced and tenured management team, effective performing-loan management procedures, and its extensive training programs." Fitch rates residential servicers on a scale of 1 to 5, with 1 being the highest rating. Wachovia Bank, based in Charlotte, N.C., can be found online at http://www.wachovia.com.

The Prestwick Mortgage Group, Alexandria, Va., is brokering the sale of servicing rights on a $35 million portfolio of Freddie Mac home loans, primarily from Pennsylvania.The fixed-rate, owner-occupied portfolio has a weighted average note rate of 4.811%, an average loan balance of $122,339, and weighted average seasoning of 33 months. None of the loans are in foreclosure or bankruptcy. The bid deadline is Jan. 25.

Interactive Mortgage Advisors, Denver, is brokering a $172 million package of Freddie Mac, Fannie Mae, Ginnie Mae, and private bulk servicing rights.IMA said the weighted average interest rate of the offering is 6.030%, and the weighted average service fee is 0.278%. The average loan size is approximately $80,200, and more than 99% of the loans are concentrated in Oklahoma. The bid deadline is Jan. 25.

Williams & Williams, a real estate auction firm based in Tulsa, Okla., has announced plans to launch a program to help delinquent mortgage borrowers and their secured lenders avoid foreclosure via advance auction sales.The Assisted Sales Auction Program allows a property to be sold before foreclosure takes place and offers the settlement of the obligations and a reduction in losses for all parties, Williams & Williams said. "We had already successfully used ASAP with many national lenders in 2006, offering it to the lenders as a loss mitigation program to reduce the costs they incur from defaults and foreclosures," said Dean Williams, president and chief executive officer of the auction firm. "We realized that it also was very beneficial to borrowers as well, and have decided to offer ASAP to them directly as a way to avoid foreclosure and everything associated with it." The company can be found on the Web at http://www.williamsauction.com.