Originations

Ameriprise Financial Inc., a Minneapolis-based financial planning and services company, has announced the establishment of Ameriprise Bank FSB, a bank based in New York that is now launching a home lending program.The bank will offer its products primarily through a network of more than 10,000 Ameriprise financial advisers, the parent company said. "Establishing our own banking platform is an important element of meeting our clients' financial needs," said Jim Cracchiolo, chairman and chief executive officer of Ameriprise Financial. Joe Sweeney, president of financial planning, products, and services at Ameriprise, noted that buying a house is "the biggest expense most people will ever have" and said "our advisers are uniquely suited to provide solutions and suggestions for home lending and other bank products." The home lending program includes mortgages, home equity loans, and home equity line of credit. In addition to its New York headquarters, the bank will have operations in Minneapolis and Phoenix.

Single-family housing starts took in on the chin again in August, falling 6% from the level recorded in July and 20% from that of a year earlier, according to government figures.It was the weakest reading since April 2003. Single-family starts totaled 1.36 million units on an annualized basis, and multifamily starts totaled 265,000 units. Multifamily activity grew 8.2% from July's level, but fell 16.9% compared with that of August 2005. The poor numbers prompted Merrill Lynch to issue a report entitled "House of Horrors." Merrill quoted news reports that some builders are offering to "make payments on the old mortgage (and the new one) just to close the deal." Merrill added: "It's the New Deflation -- and it spans a $22 trillion market otherwise called residential real estate." The housing figures are compiled by the Commerce Department, and the Department of Housing and Urban Development.

Three classes of Morgan Stanley Dean Witter Capital I Trust commercial mortgage pass-through certificates, series 2001-TOP3, have been downgraded by Moody's Investors Service.The downgrades were as follows: class J, from Ba3 to B1; class L, from B2 to B3; and class M, from B3 to Caa1. Moody's also affirmed the ratings on 12 other classes in the deal. The downgrades were attributed to poorer performance by two shadow-rated loans and to loan-to-value ratio dispersion. The pool consists of three shadow-rated loans, representing 13.3% of the pool, and a conduit component. Based on Moody's analysis, 12.6% of the conduit pool has an LTV greater than 100%, compared with 1.7% at securitization.

Zacks Equity Research, Chicago, has declared The Mills Corp. its "Bear of the Day" -- a stock expected to underperform the markets over the next three to six months -- for Sept. 18.Mills is an Arlington, Va., retail real estate investment trust that recently received bids from potential buyers and investors. "The company is dealing with myriad problems, including a restatement of its financial results from 2000 through the first three quarters of 2005, failed developments, and executive departures," Zacks said. "Additionally, the company is under investigation by the [Securities and Exchange Commission] for accounting irregularities." Zacks said the company is struggling and noted that the common dividend has been cut "significantly." It predicted much lower-than-expected earnings when Mills releases its 2005 and year-to-date 2006 results. Zacks can be found online at http://www.zacks.com.

Consumers in their 20s are more likely to buy a home than their older siblings and baby boomer parents were at the same age, according to the National Association of Realtors.Many are not waiting for marriage or a long-term relationship before becoming homeowners, the NAR reported in "Tomorrow's Buyers: Who They Are and What They Want" in the September issue of Realtor Magazine. "The next generation of homeowners is beginning to exert its influence on the housing market," said NAR president Thomas M. Stevens. "Many younger buyers have seen the wealth-building effects of homeownership in their parents and understand the value of housing as a good long-term investment." The NAR said the percentage of first-time homebuyers under the age of 25 rose from 11% in 2001 to 14% in 2005. The association can be found online at http://www.realtor.org.

Triple Net Properties, a Santa Ana, Calif.-based real estate investor, has entered into a strategic relationship agreement with Wachovia Bank under which Wachovia will provide capital to Triple Net.Through the arrangement, Triple Net will have access to Charlotte, N.C.-based Wachovia's financing programs, banking products, and services, Triple Net reported. The company, a provider of tenancy-in-common 1031 solutions and other real estate financing, said it expects that the financing from Wachovia will "fuel Triple Net's acquisition pipeline" for its investment programs. "Our expectations for this relationship extend beyond a line of credit," said Bill Green, managing director and head of real estate capital markets at Wachovia Securities. "We expect both parties to benefit considerably from our shared expertise under this relationship." Triple Net can be found on the Web at http://www.1031nnn.com.

Merrill Lynch economists are forecasting that housing prices could decline by 5% next year and that the slowdown in the housing market could push the United States toward a recession."The much-vaunted housing market correction, which has finally hit the U.S. economy, has the potential to pull the U.S. to the brink of recession by early 2007," according to Merrill Lynch's global economic team. The economists declared that housing has become "extremely overvalued," by 20% to 40%. "Merrill Lynch expects an outright decline in housing prices of about 5% next year," they said. The economists also warn that new home construction could be in for a prolonged slump. "Judging from past experience, housing starts decline by 50% peak-to-trough, and the correction lasts well over two years," they said.

Members of the National Home Equity Mortgage Association have "overwhelmingly" approved the group's merger into the Mortgage Bankers Association.Reached last month, the pact calls for the merger to be effective on or before Nov. 1. "The cooperation between the associations has been great," said NHEMA's general counsel, Maurice Shevin. "NHEMA's officers and counsel are working through the details with MBA for concluding the merger as efficiently as possible." According to Mr. Shevin, the MBA will begin corresponding this week with NHEMA's 250-member companies -- half of which are already MBA members -- to welcome them to the fold. "This merger means that NHEMA and MBA will be able to act cohesively as 'one' mortgage industry to give great strength and direction to what had been somewhat of a fragmented industry," the Birmingham, Ala.-based attorney told Mortgage Wire. Under the merger, NHEMA will become the Nonprime Council of the MBA. The council "should be a giant, unifying force for the nonprime segment of the industry to carry forward its membership education and public affairs functions," Mr. Shevin said. The organizations can be found online at http://www.mortgagebankers.org and http://www.nhema.org.

NorthStar Realty Finance, a New York-based real estate investment trust, has announced the closing of a public offering of 2.4 million shares of 8.75% series A cumulative redeemable preferred stock, priced at $25 per share.The share total includes 200,000 shares purchased by the underwriters under an overallotment option. Wachovia Securities was the sole book-running manager of the offering.

Wachovia Securities, with a $187.0 billion portfolio as of June 30, is the largest primary and master servicer of commercial mortgage-backed securities, according to the Mortgage Bankers Association.Capmark Finance Inc., with $140.1 billion, is the second-largest CMBS servicer on the MBA's list. Rounding out the top five are Midland Loan Services, with $115.0 billion; Wells Fargo, with $78.4 billion; and KeyBank Real Estate Capital, with $64.0 billion. LNR Partners Inc. is named as the special servicer on $207.5 billion of CMBS deals, ranking it No. 1 in that category, the MBA reported. The association can be found online at http://www.mortgagebankers.org.

The board of directors of North Carolina's State Employees' Credit Union has approved the adoption of a "green" mortgage program that encourages home energy conservation.The green mortgages will offer expanded debt-to-income ratios, a 50% reduction in origination fees, and 100% financing for qualifying members, according to SECU. The mortgages will be available on homes that have received an Energy STAR rating, which indicates that the home's energy efficiency level is at least 15% higher than the minimum requirements of the 2004 International Energy Conservation Code. SECU can be found online at http://www.ncsecu.org.

The Chicago Board of Trade has announced a $1 million investment in ROOT, a commodities exchange for Internet-generated consumer leads co-founded by Lewis Ranieri, the inventor of the mortgage-backed security.New York-based ROOT now operates a commodities exchange for Internet-generated mortgage leads, but the platform is designed to be easily adapted for use with automobile and insurance leads, among others, according to the CBOT. "More than 30 years ago, the CBOT was the first exchange to trade interest rate futures contracts," said Bernard W. Dan, president and chief executive officer of the CBOT. He said the partnership with ROOT "represents an opportunity to be at the forefront of Internet lead futures trading." Mr. Ranieri, chairman of ROOT, said the exchanges "plan to explore new financial instruments based on the underlying fundamentals of Internet advertising and lead generation." The companies can be found online at http://www.cbot.com and http://www.rootexchange.com.

American Campus Communities Inc., Austin, Texas, has priced a public offering of 4.95 million shares of common stock at $24.60 per share.The real estate investment trust, which focuses on the financing, development, and management of student housing, said the proceeds of the offering will be used to fund its development pipeline and potential acquisitions of student housing properties. Merrill Lynch & Co. and Citigroup Global Markets Inc. are the joint book-running managers of the offering. ACC said it has granted the underwriters an option to buy up to 742,500 additional shares to cover any overallotments.

New Plan Excel Realty Trust, New York, has priced an offering of $175 million of 3.7% senior convertible notes due 2026 and announced that it will repurchase $50 million of its common stock.The real estate investment trust said the notes will be convertible into New Plan common stock upon the occurrence of certain events, at an initial conversion price of $32.73 per share. The proceeds of the note sales will be used to repurchase the common stock at a price of $26.83 per share, as well as for general corporate purposes. The offering will be made to qualified institutional investors pursuant to Rule 144A under the U.S. Securities Act of 1933. The initial purchasers have been granted an option to buy up to an additional $25 million of notes to cover any overallotments, New Plan said. The REIT can be found on the Web at http://www.newplanexcel.com.

New York-based iStar Financial Inc. has announced that it plans to sell $700 million of fixed-rate notes and $500 million of floating-rate notes.The 5.95% fixed-rate notes, due 2013, will be sold at 99.755 to yield 5.992%. The floating-rate notes, due 2009, will bear interest at 0.34% above the three-month London interbank offered rate. The real estate investment trust said the offering of senior unsecured notes will be made to qualified institutional investors pursuant to Rule 144A and to non-U.S. buyers pursuant to Regulation S under the U.S. Securities Act of 1933. The commercial real estate finance company can be found online at http://www.istarfinancial.com.

Dynex Capital Inc., Glen Allen, Va., has announced a joint venture agreement with DBAH Capital LLC, an affiliate of Deutsche Bank AG, under which Dynex will contribute certain interests in two existing commercial mortgage loan securitizations for a 50% stake.Dynex and DBAH, which will contribute $36.5 million in cash, will own equal shares in the venture. The joint venture will focus primarily in mortgage-related investments and special situations. "This joint venture accomplishes the goal of diversifying our commercial mortgage risk, and is a solid first step toward establishing partnerships with others," said Dynex chairman Thomas B. Akin. Dynex, a real estate investment trust, can be found online at http://www.dynexcapital.com.

Municipal Mortgage & Equity LLC, Baltimore, has announced that it will restate its financial results for the first quarter and for the years 2003-2005, and will miss the deadline for filing its third-quarter Form 10-Q.MuniMae said the restatements stem from the need to record adjustments for errors related primarily to three areas: accounting for syndication fees, accounting for equity commitments related to affordable housing projects, and the classification of cash received from investors in guaranteed tax credit equity funds. The company, which arranges debt and equity financing for developers of real estate and clean energy projects, said the restatements will not affect cash available for distribution, a supplemental performance measure reported by MuniMae in addition to net earnings. The company can be found online at http://www.munimae.com.

American Express has announced a pilot program under which its cards will be accepted for making downpayments on condominiums.The New York-based company said The Moinian Group, a New York-based real estate firm, will be the first to roll out the program. American Express noted that it launched a program of card acceptance for recurring payments at luxury rental properties in 2003, and that The Moinian Group began accepting AmEx cards for rental payments soon after the launch. "Our cardmembers around the country have embraced the benefits of monthly rental payments on the card," said Kyle Curtin, vice president of strategy and business development at American Express. "Downpayments on the card bring the convenience and rewards to an entirely new level." The companies can be found online at http://www.americanexpress.com and http://www.moiniangroup.com.

Countrywide Financial Corp., Calabasas, Calif., originated $5.4 billion in payment-option ARMs in August, a 48% decline from the level recorded a year ago.Overall, the nation's largest mortgage banker originated $40 billion in product during the month, a 24% decline from that of August 2005. However, its overall fundings rose 11% compared with those of July of this year. Payment-option adjustable-rate mortgages have come under the scrutiny of federal banking regulators and some legislators. Next week the Senate Banking subcommittee on housing will hold a hearing on "exotic" mortgages, which include option ARMs and interest-only loans. This past summer, Countrywide chief executive Angelo Mozilo said publicly he is concerned about resets on option ARMs.

The average 30-year fixed mortgage rate fell from 6.47% to 6.43% over the seven-day period ended Sept. 14, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 6.16% to 6.11%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages declined from 6.14% to 6.10%, and the average rate for one-year Treasury-indexed ARMs decreased from 5.63% to 5.60%, Freddie Mac reported. Fees and points averaged 0.4 of a point for 15-year fixed-rate mortgages, 0.5 of a point for 30-year fixed-rate mortgages, 0.6 of a point for hybrid ARMs, and 0.7 of a point for one-year ARMs. "Although 30-year mortgage rates are about three-fourths of a percentage point higher than they were last year, it's good to keep in mind that rates have dropped from the high of 6.80% reached just eight weeks ago," said Frank Nothaft, Freddie Mac's chief economist. "And with short-term interest rate increases seemingly on hold, for a while at least, interest rates over all should not experience any big shifts in either direction." A year ago, the average 30-year and 15-year fixed rates were 5.74% and 5.32%, respectively, and the average hybrid and one-year ARM rates were 5.26% and 4.46%, respectively, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.