Originations

United Dominion Realty Trust Inc., a multifamily real estate investment trust based in Richmond, Va., has officially changed its name to UDR Inc.The REIT said it has also adopted a new logo and "corporate identity" and established the name RE3 for its taxable REIT subsidiary. The subsidiary will focus on development, redevelopment, land entitlement, and short-term hold investments. The company can be found on the Web at http://www.udrt.com.

New York Mortgage Trust Inc., which has sold its wholesale origination platform and is in the process of selling its retail platform, reported a net loss for 2006 of $14.2 million ($0.79 per share), compared with a net loss of $5.3 million ($0.30 per share) for the previous year.The company said the loss was entirely due to discontinued operations, which is how the origination platforms need to be carried on the company's books. NYMT reported a consolidated net loss of $8.8 million ($0.49 per share) for the fourth quarter of 2006, compared with a net loss of $8.7 million (0.49 per share) for the same period in 2005. "Our 2006 operating results are reflective of a continued deterioration in the mortgage lending environment," said Steven B. Schnall, chairman, president and co-chief executive of the company. "Despite the fact that we have virtually no subprime credit exposure, we have experienced a marked increase in the number of early payment defaults of the alt-A loans originated in our mortgage lending segment." Mr. Schnall said this has resulted in an unprecedented level of loan repurchases and credit losses totaling $7.4 million in the second half of 2006. "This pressure, compounded by our lack of sufficient scale to achieve profitability in this very challenging market, further validates our decision to exit the mortgage lending business," he said. NYMT, a real estate investment trust, can be found online at http://www.nymtrust.com.

IndyMac Bank, Pasadena, Calif., is looking to get into commercial real estate lending by setting up a division within the company to lend on commercial property.The division will lend on commercial real estate nationwide, specializing in multifamily, office, industrial, and retail financing. A spokeswoman for IndyMac told MortgageWire that the company is hoping to take advantage of an increased demand for commercial lending services. Pat Jackson is the chief executive officer of the IndyMac commercial real estate group. Meanwhile, the bank's parent company, IndyMac Bancorp Inc., has issued a financial update aimed at clarifying its position as a prime and alternative-A mortgage lender with "minimal exposure" to subprime loans. The company said it has been "inappropriately categorized by many media sources as a subprime lender." IndyMac said only 3% of its $90 billion in mortgage loan production last year were subprime loans (based on the definition used by the Office of Thrift Supervision), and only 4.4% of its $156 billion portfolio of asset-backed securitizations are classified as subprime. The company can be found online at http://www.indymacbank.com.

New York Attorney General Andrew Cuomo said Thursday that his office is investigating subprime lenders whose customers have fallen behind on their payments at the highest rate in four years, according to a published report.The Washington Post reported that Mr. Cuomo -- a former housing secretary in the Clinton administration -- revealed the investigation during a news conference but did not offer any details. According to the Quarterly Data Report, subprime foreclosures totaled 3% at the end of December. The overall delinquency rate stood at 14.35%. A year ago the foreclosure rate was 2.13%, but delinquencies totaled 15.89%, the QDR found.

Fremont General Corp., Santa Monica, Calif., says it has received increased funding from Credit Suisse to the tune of $1 billion.It also revealed that it "has received various proposals" for additional credit facilities. Credit Suisse also has been hired to sell the depository's subprime production affiliate, Fremont Investment & Loan, the nation's eighth-largest B&C funder. FGC said its commercial mortgage and servicing units are profitable. The company has delayed releasing its annual 10-K and is working with auditors to review its financial statements. In late February FGC said that, because of subprime-related troubles at FI&L, it would delay the release of its fourth-quarter and full-year earnings, decimating its share price. A wholesaler, FI&L has stopped funding loans. Fremont can be found online at http://www.fremontgeneral.com.

Hoping to bolster its liquidity, Accredited Home Lenders says it has found a buyer for $2.7 billion in "loans held for sale" but will take a $150 million hit on the deal.The San Diego-based subprime firm said the mortgages are being sold at a "substantial" discount. The identity of the buyer was not disclosed. The nondepository said the assets are being sold "to alleviate recent pressures from margin calls" from its warehouse providers. Terms of the sale include a holdback reserve of $40 million "to satisfy all future claims against the loans, including early payment defaults," the company said. "Claims in excess of the holdback reserve will have no recourse against the company." The sale is expected to close in the next few days. At deadline time its shares were rallying, up 20% to $11. A few days ago the stock hit a 52-week low of $3.77. The company also said it will not file its annual 10-K on time. Accredited can be found online at http://www.accredhome.com.

ACC Capital Holdings, Orange, Calif., laid off hundreds of retail and wholesale workers Thursday at affiliates Ameriquest and Argent Mortgage, consolidating its consumer call-center operation into just one location.A source inside the once high-flying subprime giant told MortgageWire that the job losses total close to 3,000. A company spokesman declined to comment. The spokesman said the only retail call center remaining will be the Orange, Calif., location. Previously, there were four sites. (For more details, see the March 19 issue of National Mortgage News.)

The overall Community Reinvestment Act performance of Detroit-based Comerica Bank has been rated "Outstanding" by the Federal Reserve Bank of Chicago, the highest possible rating.Major factors supporting the rating included Comerica's high volume of community development loans. The company made an outstanding level of community investments in such instruments as low-income tax credits and mortgage-backed securities in Michigan, California, and Texas, the Chicago Fed said. Comerica also showcased a high level of community development services, including financial education initiatives and participation on the boards of organizations that provide services to low- and moderate-income areas and individuals.

Wachovia Securities, Charlotte, N.C., has created a new brand called Vertice for the combined entities of American Mortgage Network and Wachovia Mortgage Third Party Lending.Vertice is a part of Wachovia's Corporate and Investment Bank and reports to Randy Robertson, head of Residential Mortgage and Consumer Business. Combined production from both entities totaled $18 billion in 2006, Wachovia reported. "The new brand reflects the combination of our vertical integration strategy and our mortgage expertise," said Mr. Robertson. The continued integration of the wholesale businesses will capitalize on the strong competitive advantages the company has in the marketplace, he added. "While our branding and structure may be new, our values and our mission remain the same: provide the highest-quality service, a broad product range, and a local business presence that links us closely to our client base, ensuring efficient underwriting and closing for our broker customers," Mr. Robertson said. Charlotte Catalfo and John Robbins remain co-heads of the unit. In October 2006, Robbins assumed more of a special adviser role when he began his tenure as chairman of the Mortgage Bankers Association. Offices in Charlotte, N.C., and San Diego will continue to be the main hubs for Vertice, Wachovia said.

The Market Composite Index, an overall measure of mortgage applications, rose from 671.6 to 690.5 on a seasonally adjusted basis during the week ended March 9, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications increased 3.2% on the week and were up 19.1% from the level recorded a year earlier. The Purchase Index rose from 405.3 to 414.3 on a seasonally adjusted basis, while the Refinance Index rose from 2234.2 to 2312.2. Refinancings represented 46.2% of total applications, up from 46.1% the previous week, while adjustable-rate mortgages accounted for 21.9%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages fell from 6.04% to 6.03%, and points (including the origination fee) rose from 1.27 to 1.38 for loans with 80% loan-to-value ratios, the association reported. The MBA can be found online at http://www.mortgagebankers.org.

The average 30-year fixed mortgage rate was unchanged, at 6.14%, for the seven-day period ended March 15, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 5.86% to 5.88%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages was unchanged, at 5.90%, and the average rate for one-year Treasury-indexed ARMs decreased from 5.47% to 5.42%, Freddie Mac reported. Fees and points averaged 0.4 of a point for fixed-rate mortgages, 0.6 of a point for hybrid ARMs, and 0.7 of a point for one-year ARMs. "Mortgage rates moved little in the past week, as the latest economic news gave no reason for change," said Frank Nothaft, Freddie Mac's chief economist. "The economy added 97,000 jobs in February, in line with consensus expectations, while the unemployment rate dipped to 4.5%. But the promising employment situation did not materialize at the cash registers, with retail sales only growing by 0.1% in February, falling short of the 0.3% gain that had been predicted." A year ago, the average 30-year and 15-year fixed rates were 6.34% and 5.98%, respectively, and the average hybrid and one-year ARM rates were 5.93% and 5.37%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.

When the National Home Equity Mortgage Association merged into the larger Mortgage Bankers Association late last year, the MBA registered a net gain of 77 new members -- but almost half those companies have never paid dues to their new trade master.The MBA said the 37 firms in question likely failed. "They just didn't make it," said Paul Green, the MBA's senior vice president of corporate relations. Mr. Green noted that NHEMA also had its billing cycle last summer -- while the merger was under way. The deal closed in November. NHEMA had 192 members, but 115 were already members of MBA. According to figures compiled by National Mortgage News, at least 30 nonprime-related shops or wholesale platforms have shut down since last year. (See the March 19 issue of NMN for details.)

The Federal Housing Administration could have hundreds of thousands of subprime borrowers if Congress passes an FHA reform bill, but if not, the agency will raise its mortgage insurance premiums, Housing Commissioner Brian Montgomery has told Senate appropriators.As a fallback position, the FHA commissioner testified that he will raise the FHA upfront premium from 150 basis points to 166 bps and its annual 50-bp premium by a few basis points. Sen. Christopher Bond, R-Mo., warned the commissioner that he is skeptical that the reforms will increase FHA revenues, and he doubts that the Department of Housing and Urban Development could implement the reforms fast enough to avoid a premium increase in fiscal year 2008. "As you know, HUD does nothing quickly," Sen. Bond said. Mortgage Bankers Association chairman John Robbins said the FHA could quickly regain a 10% market share if the reforms are passed, which would generate $3 billion in new revenues. Sen. Patty Murray, D-Wash., chairman of the Senate HUD appropriations subcommittee, said, "We need to work to make sure the FHA is strong and effective." However, she said she does not want the FHA to adopt risky subprime practices such as no-downpayment loans.

PHH Corp., Mt. Laurel, N.J., has agreed to be acquired by GE Capital Solutions, the business-to-business leasing, financing, and asset management unit of General Electric Co., in an all-cash transaction valued at approximately $1.8 billion.In connection with the transaction, GE has entered into an agreement to sell the mortgage operations of PHH, a prime mortgage originator and servicer, to an affiliate of The Blackstone Group, a global private investment and advisory firm. Under the terms of the merger agreement, PHH stockholders would receive $31.50 per share in cash at closing, representing a premium of 13.3% over the March 14 PHH stock closing price of $27.81 on the New York Stock Exchange. "We are attracted to [PHH's] platform and business model and look forward to working with the PHH Mortgage team to accelerate and enhance their strategic objectives and growth potential," said Chinh Chu, senior managing director at Blackstone. According to the Quarterly Data Report, PHH ranks 11th among mortgage servicers, with $160 billion in servicing.

Subprime lender Master Financial, Orange, Calif., closed its wholesale division late Wednesday, and another top-ranked funder -- People's Choice Financial Corp. -- pulled a key registration statement with securities regulators, suggesting that it too is in deep financial trouble.Sources told MortgageWire that People's Choice -- headed by former Aames Financial executive Neil Kornsweit -- is talking to a potential investor about a sale. The Irvine, Calif.-based company had hoped to go public. At deadline time, executives at both subprime shops could not be reached for comment. A Master Financial e-mail message provided to MW by a source states, "It is with the deepest regret that I have to announce that we are ceasing operations in our wholesale sub-prime origination unit effective today. This comes as a result of a continued strain in the secondary market and lack of liquidity for the loans we, as an industry, produce."

Three classes of Credit Suisse First Boston Mortgage Securities Corp. commercial mortgage pass-through certificates, series 2005-CND1, have been downgraded by Moody's Investors Service and placed on review for possible further downgrade.In addition, the ratings on five other classes -- classes A-2, A-X-1, A-X-3, A-Y, and B -- have been placed on review for possible downgrade, and the rating on one other class was affirmed. The downgrades were as follows: class C, from Aa2 to A2; class D, from A2 to Baa3; and class E, from A2 to Ba1. The certificates are collateralized by three senior participation interests. The negative rating actions were attributed to a foreclosure action initiated by the holder of the Hotel 71 mezzanine loan (an affiliate of Oaktree Capital Management LLC) and a Chapter 11 bankruptcy filing by the Hotel 71 mezzanine borrower. In addition, the Royal Palm Hotel Loan is in default, the rating agency said. Moody's can be found online at http://www.moodys.com.

The National Association of Realtors is warning that sales of existing homes could decline in March simply due to unusually cold weather and without any impact from the slowdown in subprime lending.Winter storms in February brought real estate markets to a halt in much of the country, and it "should drag sales down in March," chief economist David Lereah said. "This means we may not see an upturn in closed transactions before May 25 when we report sales for April." Mr. Lereah said he sees underlying trends pointing to a housing recovery in 2007, even though home sales could be "marginally reduced" by tighter restrictions on subprime lending. He is projecting that resales will pick up as the year progresses and total 6.42 million for 2007, down only slightly from 6.48 million last year. "Lending problems in our nation's subprime marketplace are building, which could inhibit future lending activity and further dampen our forecast," Mr. Lereah said. "Even so, these problems will be contained and not spill over into the prime mortgage market."

Freddie Mac has announced that it will release its quarterly and full-year results for the year ended Dec. 31 before the market opening of the New York Stock Exchange on March 23.The government-sponsored enterprise said it will hold a conference call at 8:30 a.m. EDT on that date to discuss the results. Freddie Mac said in a conference call in early January that it expected to post a loss for the third and fourth quarters of 2006. The company estimated that net income would total $2.5 billion for the first nine months of 2006, up from $1.4 billion for the first nine months of 2005, but that it would report a loss of about $550 million for the third quarter. The GSE can be found online at http://www.freddiemac.com.

Commercial and multifamily mortgage debt outstanding went up to $2.95 trillion at the end of 2006, a 12.7% increase from the level recorded at the end of 2005, according to the Mortgage Bankers Association.The Washington-based mortgage bankers trade group said that, based on an analysis of Federal Reserve data, commercial and multifamily mortgage debt outstanding increased by $99 billion, or 3.5%, in the fourth quarter alone. Multifamily debt outstanding stood at $731 billion at the end of 2006, an increase of 7.5% over the year and of 2.1% ($15 billion) in the fourth quarter alone. "The most recent Federal Reserve Beige Book characterized commercial real estate markets as strong, solid, and firming," said Jamie Woodwell, the MBA's senior director for commercial/multifamily research. "We also see low delinquencies and other signs of mortgage performance continuing to show strength." Commercial banks continue to hold the largest share of commercial/multifamily mortgages, with almost $1.3 trillion, or 44% of the total, while Fannie Mae, Freddie Mac, and Ginnie Mae hold the largest share, at 30%, of the multifamily debt outstanding.

High River Limited Partnership and entities managed by Icahn Management LP, intend to initiate an "any and all" tender offer, not subject to any minimum condition, for the common stock of WCI Communities Inc. at $22 per share.The tender offer will not be subject to due diligence or financing. "We believe that the board and CEO of WCI have not enabled the company to maximize the potential of its unique set of assets, which trade at a discount to their GAAP book value," said Mr. Icahn. "If elected, we expect our slate, in a manner consistent with their fiduciary duties, to ensure these unique assets are properly marshaled through the current residential housing industry downturn." WCI's board and chief executive officer have stated emphatically, and more than once, that now is not the time to sell the company.