Originations

Vornado Realty Trust, Paramus, N.J., has priced the sale of 8.1 million shares of common stock in a public offering that netted approximately $1 billion.The company said it has granted Lehman Brothers and J.P. Morgan, the underwriters, an option to buy up to an additional 1.215 million common shares to cover any overallotments. Vornado, an equity real estate investment trust, can be found on the Web at http://www.vno.com.

ECC Capital Corp., an Irvine, Calif.-based real estate investment trust that originates and invests in residential mortgage loans, has announced that it expects to take a fourth-quarter loss and that the pending sale of its mortgage banking business will likely close in the first quarter of 2007.The company said arrangements with Bear Stearns Residential Mortgage Corp., which is buying ECC's mortgage banking operations for an estimated total consideration of $26 million, are expected to reduce the cash requirements of funding the operating losses of the mortgage banking operations in the fourth quarter. "However, management cautions that, based on preliminary October and November results, operating losses are still expected for the fourth quarter of 2006," the company said.

Mitch Freifeld has announced his resignation as president of Global Branch Solutions to start Branch Management Solutions, Clearwater, Fla., which will provide guidance on recruiting, marketing, and training.The move "represents the culmination of years of work in the mortgage industry," Mr. Freifeld said. "My company's core focus will be to represent and market an innovative, new branch organization that will be making its debut in early 2007." Mr. Freifeld previously served for over 20 years as president of United Shelter Homes. He said he will maintain "a strong focus" on his work with the Coalition Against Broker Fraud, which he co-founded early this year in response to mounting fraud-related losses at mortgage firms.

The Market Composite Index, an overall measure of mortgage applications, rose from 599.0 to 647.6 on a seasonally adjusted basis during the week ended Dec. 1 as refinancings climbed above 50% of all applications for the first time in two-and-a-half years, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications increased 52.0% on the week and were up 1.9% from the level recorded a year earlier. The Purchase Index rose from 406.7 to 426.6 on a seasonally adjusted basis, while the Refinance Index rose from 1749.6 to 1989.7. Refinancings represented 50.1% of total applications (the highest level since April 2004), up from 46.9% the previous week, while adjustable-rate mortgages accounted for 23.9% (the lowest level since October 2003), the MBA said. The average contract interest rate for 30-year fixed-rate mortgages fell from 6.13% to 5.98%, its lowest level since October 2005, and points (including the origination fee) fell from 0.97 to 0.91 for loans with 80% loan-to-value ratios, the association reported. The MBA can be found online at http://www.mortgagebankers.org.

First American Title Insurance has completed its one-millionth order for FACT, the company's accelerated title and settlement product that protects home equity lenders against losses resulting from undisclosed liens, poor legal descriptions, fraud, and forgery.Introduced in 2003, FACT helps lenders complete same-day closings while also mitigating their risk. Because a pre-closing title search is not required, "FACT speeds the origination process," said Paul Dorman, equity division director at First Am Title's Lenders Advantage. With mortgage fraud on the rise, FACT's insuring provisions are particularly useful for lenders operating highly automated, "low-touch" origination channels, Mr. Dorman said. A recent enhancement includes fraud prevention notification prior to closing. First American Title is a subsidiary of First American Corp., which can be found on the Web at http://www.firstam.com.

Zacks Equity Research, Chicago, has designated Affordable Residential Communities Inc. its "Bear of the Day" -- a stock expected to underperform the markets over the next three to six months -- for Dec. 5.Affordable Residential, a real estate investment trust, is a Denver-based owner and operator of manufactured-home communities. Zacks said the REIT exceeded Zacks' funds-from-operations estimates for the third quarter, but that the estimates had been "significantly lowered" because of disappointing results. Furthermore, the company pays no dividend, has high debt levels, and "is in an industry with little pricing power," Zacks said. Occupancy remains low, and the company is "valued well above better-positioned peers," according to the equity research firm. "We don't see much upside in the next few quarters, and ARC will continue to struggle throughout 2007," Zacks said. Zacks can be found online at http://www.zacks.com.

Pointing to a slowdown in activity, originations of commercial and multifamily mortgage loans fell 6% in the third quarter from the level recorded a year earlier, according to the Mortgage Bankers Association.Loan originations for conduits, life insurance companies, and credit companies saw the biggest dropoffs, leading the third-quarter decline, the trade group said. All the major property types saw origination declines, with only hotel properties bucking the trend with a 5% increase. However, third-quarter loan originations were up 5% compared with those in the second quarter, and originations through the third quarter remained higher than at the same time last year. "Mortgage bankers' commercial/multifamily origination activity is down compared to last year's third quarter, but origination levels remain extremely strong," noted Jamie Woodwell, the MBA's senior director of commercial/multifamily research. The MBA can be found online at http://www.mortgagebankers.org.

Fitch Ratings has removed North Fork Bancorp. Inc., the parent company of GreenPoint Mortgage, from Rating Watch Negative but has downgraded its long-term issuer default rating following completion of its acquisition by Capital One Financial Corp.The downgrade of North Fork from A-minus to BBB-plus reflects the ratings equalization with Capital One. Capital One's issuer default rating was affirmed -- in light of the deal, Fitch had upgraded Capital One in March and given it a Positive Rating Outlook. "The Positive Outlook continues to reflect Fitch's view that [Capital One] will enhance its franchise through the NFB acquisition," the rating agency said. North Fork brings with it a "material residential mortgage banking platform," an area in which Capital One has a small presence, as well as strong deposit share in the New York City area, Fitch said.

ACC Capital Holdings, the Orange, Calif.-based parent of Ameriquest Mortgage and Argent, is selling its auto finance unit, Long Beach Acceptance Corp., Paramus, N.J., to Fort Worth, Texas-based AmeriCredit Corp. in an all-cash transaction that values LBAC at $282.5 million.According to the Dec. 4 issue of National Mortgage News, ACC has placed both Ameriquest and Argent up for sale. A statement issued by AmeriCredit quotes LBAC president and chief executive Stephen Prough as saying, "Like Long Beach, AmeriCredit is solely focused on auto finance, and we look forward to working with them to deliver a full spectrum of financing solutions to auto dealers and their customers." Aseem Mital, chief executive officer of ACC Capital Holdings, said the transaction "enables us to focus our resources and efforts on our core mortgage business as we strategically position the company for the future." The ACC Capital website lists four operating units for the company; the fourth is AMC Mortgage Services, a servicing company. ACC is privately held. Its owner, Roland Arnall, is currently U.S. ambassador to the Netherlands.

Countrywide Home Loans has agreed to improve its pricing on mortgage loans to blacks and Hispanics as a result of an investigation by New York Attorney General Eliot Spitzer into the giant lender's Home Mortgage Disclosure Act data."This agreement should serve as a model for other lenders who, like Countrywide, seek to eradicate racial and ethnic disparities in mortgage lending," Mr. Spitzer said. Based on an outside analysis of Countrywide's pricing, the New York attorney general concluded that black and Latino borrowers paid more than whites on average, especially for loans generated by mortgage brokers. Countrywide has agreed to compensate minorities who "improperly" received subprime and alternative-A loans in 2004 and to implement a $3 million consumer education program in New York. Countrywide disputed the AG's findings and conclusions but cooperated with the inquiry. "Countrywide and Attorney General Spitzer share a common goal: to assure that all individuals who apply for a mortgage loan receive equal treatment, and any pricing differences should be based on credit, property, and other risk factors," Countrywide senior managing director Rick Wentz said.

Class M2 of Ameriquest Mortgage Securities Inc. series 2002-C has been downgraded from B to CC/DR4 by Fitch Ratings, and two classes from another AMSI home equity issue have been placed on Rating Watch Negative.Classes M5 and M6 of series 2003-6 were placed on watch. In addition, Fitch affirmed the ratings on seven classes from the two Ameriquest transactions. The negative rating actions were attributed to monthly losses that have generally exceeded excess spread and caused a deterioration in the amount of overcollateralization.

Two classes of the Long Beach Mortgage Loan Trust series 2003-1 subprime mortgage deal have been downgraded by Fitch Ratings.Class M-3 was downgraded from BBB to BB-plus, and class M-4 was downgraded from BB-minus to B. In addition, the ratings on two other classes were affirmed. The downgrades reflect continued deterioration in the relationship between credit enhancement and loss expectations, the rating agency said. The performance of the deal has also been hurt by a growing concentration of loans secured by manufactured homes, Fitch said.

Curt G. Johnson has been named president of First American Title Insurance Co., Santa Ana, Calif., succeeding Gary L. Kermott, who recently became vice chairman of the title insurance company.Mr. Johnson was previously senior vice president and national commercial services director for First American Title. He joined First American in 1996 as vice president of builder/commercial services for the company's Phoenix branch office, the company said. Mr. Johnson was previously senior associate for Prudential Arizona Realty Commercial Services Group in Phoenix and executive vice president and designated broker for the Phoenix office of Merrill Lynch Commercial Real Estate. First American Title is a subsidiary of The First American Corp., which can be found online at http://www.firstam.com.

While traditional primary new insurance had its third-best month of the year in October, a decline in the bulk category resulted in a month-to-month drop of 13% in total primary new mortgage insurance written, according to data from the Mortgage Insurance Cos. of America.Total primary new insurance written amounted to $18.8 billion, down from $21.6 billion in September. Traditional primary new insurance written increased to $13.5 billion from $13.1 billion the previous month. The only better months for the traditional category were August and June. Application volume was 129,612, down 5% from September. New pool risk written in October totaled $31.0 million, down from $43.4 million in September. The cure/default ratio was 71.8% for the month, down from 72.3% the previous month. There were 33,163 cures and 46,217 defaults in October. MICA can be found online at http://www.micanews.com.

For the first time since May 2004, the Eleventh Federal Home Loan District Cost of Funds Index has declined on a month-to-month basis.The index, as calculated by the Federal Home Loan Bank of San Francisco, stood at 4.346% for October, down slightly less than 4 basis points from 4.382% in September. COFI is traditionally a lagging indicator, some three to six months behind, and many other rates have been declining in recent months. The Federal Reserve Board has not taken any action on the federal funds rate since August. From trough to peak, COFI increased only 267 bps, while the Fed raised rates 425 basis points. But Freddie Mac's primary mortgage market survey showed that the rate for one-year adjustable-rate mortgages had increased only 238 bps when it reached its peak in July of this year.

The National Association of Realtors has reported that the latest reading of its pending home sales index provides "another indication that a stabilization is occurring in the housing sector."A leading indicator of home sales, the PHSI slipped 1.7% in October, from 109.1 in September to 107.2, but it has been "hovering in a narrow range," the NAR said. The index is down 13.2% since October 2005. "It's important to focus on where the housing market is now -- it appears to be stabilizing, and comparisons with an unsustainable boom mask the fact that home sales remain historically high," said NAR chief economist David Lereah. "They'll stay that way through 2007." The NAR can be found online at http://www.realtor.org.

Home prices increased at an annualized rate of 4.0% nationwide in the third quarter, down from a revised rate of 5.2% in the second quarter, according to the Conventional Mortgage Home Price Index released by Freddie Mac.The Mountain states recorded the biggest price increases, with a 7.1% annualized growth rate, Freddie Mac said. The West South Central states of Arkansas, Louisiana, Oklahoma, and Texas experienced the second-highest annualized gains in the third quarter, with a 6.7% growth rate, and the East South Central states of Alabama, Kentucky, Mississippi, and Tennessee came in third, at 6.4%. "It takes between six and 18 months for the economy to fully react to [Federal Reserve Board] actions, and housing is the most interest-rate-sensitive segment of the economy," said Frank Nothaft, Freddie Mac's chief economist. "Thus, it isn't surprising that the housing sector is now showing such a strong reaction to higher rates." The index was jointly developed by Freddie Mac and Fannie Mae. Freddie Mac's website address is http://www.freddiemac.com.

Carl Icahn is going it alone in pursuing a merger bid for Reckson Associates following the withdrawal of Harry Macklowe and Mack-Cali (a New York-based office real estate investment trust) from the Rome Partnership that had been set up to pursue the merger.Reckson, a New York office REIT, reported that Mr. Icahn has submitted a bid to acquire Reckson for a total consideration of $4.3 billion through American Real Estate Partners, an entity in which he has a 90% interest. The consideration consists of $3.3 billion in AREP preferred units and $1 billion in cash. Reckson shareholders are slated to vote on the pending merger with SL Green this week, and the Reckson board is recommending that merger (for a $3.9 billion consideration to shareholders), which has a breakup penalty attached if it does not go through. AREP has also agreed in its proposal to pay the breakup fee if Reckson decides to pursue the AREP offer. Reckson Associates can be found online at http://www.reckson.com.

Three classes from Equity One ABS Inc. mortgage pass-through certificates issued in 2002 have been downgraded by Fitch Ratings.The downgrades were as follows: series 2002-3, class B-1, from BBB-plus to BB, and class B-2, from BB to B; and series 2002-4, class B, from BBB to BBB-minus. Fitch also affirmed the ratings on six classes in the two Equity One subprime transactions. The rating agency attributed the downgrades to a deterioration in the relationship between credit enhancement and expected losses. Fitch can be found online at http://www.fitchratings.com.

NNN Realty Advisors Inc., a commercial real estate management and services firm based in Santa Ana, Calif., has announced that Friedman, Billings, Ramsey & Co. has closed a $160 million private placement of NNN Realty's common stock.The private placement to institutional investors and certain accredited investors involved the sale of 16 million shares of common stock at $10 per share. NNN Realty Advisors is the parent company of Triple Net Properties LLC and Triple Net Properties Realty Inc.