Servicing

Saxon Capital Inc., a residential mortgage lender and servicer based in Glen Allen, Va., has announced a $980.5 million securitization of nonconforming mortgage loans by a subsidiary.The securitization, Saxon Asset Securities Trust 2003-3, consists of 14 classes of fixed- and variable-rate certificates ranging in size from $8.5 million to $421.1 million, the company said. The lead manager of the deal was RBS Greenwich Capital, and the co-managers were Credit Suisse First Boston, J.P. Morgan, and Merrill Lynch & Co. The company can be found on the Web at http://www.saxoncapitalinc.com.

Fannie Mae has priced a $200 million offering of 5.5% fixed-rate, noncumulative preferred stock.The 4 million shares of Series N stock have a stated value of $50 per share, the government-sponsored enterprise said. Goldman, Sachs & Co. (the bookrunner) and Bear, Stearns & Co. served as co-lead manager for the issue. The co-managers were FTN Financial Capital Markets, Loop Capital Markets, Sandler O'Neill & Partners LP, Vining-Sparks IBG LP, and Wachovia Securities. Fannie Mae can be found online at http://www.fanniemae.com.

The rating on class F of Merrill Lynch Mortgage Investors Inc.'s mortgage pass-through certificates, series 1995-C3, has been lowered from B to B-minus by Standard & Poor's Ratings Services.S&P also raised the ratings on three classes in the deal and affirmed the ratings on two others. The rating agency said the actions reflect an increase in credit support levels from a 62% paydown of the loan pool and improved performance from the remaining properties, offset by potential losses associated with three real estate owned properties and three loans that have been delinquent for more than 90 days. S&P can be found online at http://www.standardandpoors.com.

Wells Fargo Home Mortgage has announced the activation of a toll-free telephone number for customers who have been affected by Hurricane Isabel and the related flooding.The number of the disaster call center is 1-888-818-9147. The company said the number can be dialed in Delaware, the District of Columbia, Maryland, New Jersey, North Carolina, Pennsylvania, Virginia, and West Virginia, and will be available as long as it is needed. The disaster call center team will be the lead contact for customers with mortgage questions related to the storm, Wells Fargo said. The company can be found online at http://www.wellsfargo.com.

Anworth Mortgage Asset Corp., Santa Monica, Calif., has indicated that it expects net income for the third quarter to be in the range of $0.29 to $0.32 per share, citing the high level of home mortgage prepayment activity in recent months.The real estate investment trust's net income and dividend per share for the second quarter both stood at $0.45. Lloyd McAdams, Anworth's chairman and chief executive officer, said that based on the prepayment reports released so far in September, the mortgage REIT expects a third-quarter prepayment rate of 46% CPR. This has called for increased premium amortization on the portfolio of the mortgage backed-securities investor and will affect earnings for the third quarter. However, considering the increase in mortgage rates and the "significant decline" in the Mortgage Bankers Association of America's refinancing index for the quarter to date, Anworth said it expects refi levels to decline in the fourth quarter and early 2004. Annaly Mortgage, Capstead Mortgage, and MFA Mortgage -- three other mortgage REITs whose primary business is MBS investments -- have made similar announcements recently.

Freddie Mac has announced a $100,000 donation for hurricane relief assistance and said it has asked mortgage servicers to extend payment relief to qualified borrowers in areas affected by Hurricane Isabel.The donation to the American Red Cross will go directly to support victims of Hurricane Isabel, the government-sponsored enterprise said. "We want to ensure that affected families keep their homes and that they receive services they need to get back on their feet," said Paul Peterson, Freddie Mac's chief operating officer.

Bank One Corp., Chicago, has announced an agreement to acquire Security Capital Research & Management Inc., an investment adviser and manager of real estate securities for institutional investors, from GE Real Estate.The terms of the agreement were not disclosed. The Chicago-based Security Capital, which manages approximately $3.5 billion in real estate investments, will become a wholly owned subsidiary of Banc One Investment Advisors, but will operate as a "distinct investment team," Bank One said. David J. Kundert, chief executive officer of Bank One's investment management group, said the acquisition "expands our growing asset management capabilities and bolsters our strategy to provide institutional clients with a wide range of high-performing products." The company can be found online at http://www.bankone.com.

The Federal Trade Commission will issue a "very significant consent decree" before year-end that establishes a "best-practices" standard for servicers of subprime loans, according to one industry attorney.Skadden Arps attorney Andrew Sandler told a fair-lending conference that an FTC official who spoke about subprime servicing at an American Bar Association meeting in August outlined 10 areas of concern, including timely posting of payments, forced-place insurance, and aggressive foreclosures. Mr. Sandler told the Consumer Bankers Association conference that most servicers have problems with forced-place insurance because subprime loans generally don't have escrow accounts for property insurance and taxes. He recommended that subprime lenders get the escrow whenever they can, "because that prevents equity stripping, asset-based lending," and other kinds of predatory practices. Mr. Sandler did not indicate the target of the FTC's consent decree, but it is well known that Fairbanks Capital Corp., Salt Lake City, is the subject of an FTC investigation into servicing abuses. A spokeswoman for the subprime servicing company declined to comment on settlement talks.

Four classes in two CWMBS (IndyMac) Inc. mortgage pass-through deals have been downgraded by Fitch Ratings.The downgrades were as follows: series 2000-C (RAST 2000-A3), class B4, from B to CCC, and class B5, from C to D; and series 2000-H (RAST 2000-A8), class B-3, from BB to B, and class B4, from CC to D. In addition, Fitch affirmed its ratings on seven other classes in the two deals. The rating agency said the downgrades stemmed from loss levels and high delinquencies relative to the applicable credit support. Fitch can be found online at http://www.fitchratings.com.

The ratings on two classes of Soundview Home Equity Loan Trust, series 2001-1, have been lowered by Standard & Poor's Ratings Services.The downgrades were as follows: class M-2, from A to BBB-plus; and class B, from BBB to D. In addition, the ratings on 13 other classes issued by Financial Asset Securities Corp. (Soundview) and Soundview Home Equity Loan Trust were affirmed, S&P said. The downgrades were based on declining credit support percentages for the subordinate classes due to net losses that are "consistently and significantly" greater than excess interest, eroding overcollateralization over the past 10 months, the rating agency said. "Based on the current performance, it is not likely that the principal loss will be recoverable," S&P said.