WMF Capital Sells $691MM in Loans

WMF Capital Corp., Vienna, Va., has sold $691 million in commercial mortgage loans to Merrill Lynch Mortgage Capital Inc. and closed related hedges.The sale, which was on a servicing-retained basis, resulted in a pretax loss of approximately $30 million, according to WMF Capital's parent, WMF Group Ltd. WMF Group said it had intended to sell the loans in a September securitization led by Merrill Lynch, "but opted to sell the loans at this time due to continuing adverse securitization market conditions." The sale was made in conjunction with the WMF Group's decision to "adjust its business strategy to limit interest rate and spread risks that have developed as a result of global market instability," the company said. WMF Group also announced that it has received a $20 million subordinated loan commitment from Commercial Mortgage Investment Trust Inc., in which it has a minority interest. WMF Group's website address is http://www.wmfg.com.