Originations

Class B-6 of DLJ Commercial Mortgage Corp.'s commercial mortgage pass-through certificates, series 2000-CKP1, has been downgraded from B to B-minus by Fitch Ratings.Fitch also upgraded five classes in the transaction and affirmed the ratings on five other classes. The rating agency said the downgrade reflects an increase in loans of concern, which total 17.7% of the outstanding balance. They include specially serviced assets representing 3.5% of the balance and loans with low debt service coverage ratios and occupancies. Fitch can be found online at http://www.fitchratings.com.

Highwoods Properties Inc., a real estate investment trust based in Raleigh, N.C., has announced that its $350 million unsecured revolving credit facility has been syndicated with 15 banks and increased to $450 million.The three-year credit facility includes an option to extend it for a year, and at any time before May 1, 2008, Highwoods may request up to $50 million of additional borrowing capacity. The facility was led by Bank of America NA as administrative agent, with Banc of America Securities LLC as sole lead arranger and sole book manager. The company can be found on the Web at http://www.highwoods.com.

The Market Composite Index, an overall measure of mortgage applications, rose from 527.6 to 553.3 on a seasonally adjusted basis during the week ended Aug. 4, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications increased 4.3% on the week but were down 24.9% from the level recorded a year earlier. The Purchase Index rose from 376.2 to 388.9 on a seasonally adjusted basis, while the Refinance Index climbed from 1417.2 to 1518.1. Refinancings represented 38.0% of total applications, up from 37.0% the previous week, while adjustable-rate mortgages accounted for 27.6%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages decreased from 6.62% to 6.45%, and points (including the origination fee) increased from 1.00 to 1.01 for loans with 80% loan-to-value ratios, the association reported.

The monetary policy-making committee of the Federal Reserve Board has left the target federal funds rate unchanged at 5.25%, opining that "inflation pressures seem likely to moderate over time."It was the first time in more than two years that the Federal Open Market Committee has met without raising its target for the key short-term rate, which banks charge on overnight loans. "Economic growth has moderated from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices," the Fed panel said Aug. 8. Despite its comment on moderating inflation pressures, the FOMC said "some inflation risks remain," citing recent core inflation levels and the prices of energy and other commodities. Swiss Re U.S. chief economist Kurt Karl said the pause was understandable, but declared that "the Fed needs at least one more interest rate hike as an insurance policy against a rising inflation." The Fed can be found online at http://www.federalreserve.gov.

Morgan Stanley has announced an agreement to acquire Saxon Capital Inc., a servicer and originator of residential mortgages based in Glen Allen, Va., for $706 million.The price tag is based on a cash consideration of $14.10 per share of Saxon stock. Morgan Stanley said the acquisition is in line with its strategy of building a global, vertically integrated residential mortgage business. "Saxon builds on our existing origination and securitization capabilities by providing us with an extremely strong servicing platform," said Anthony Tufariello, global head of Morgan Stanley's Securitized Products Group. The acquisition "will further enhance our risk management of mortgage portfolios" and provide "new origination capabilities in the nonprime market," Mr. Tufariello said. Morgan Stanley was the lead adviser on the transaction and was also advised by Milestone Merchant Partners, the company said. Saxon, a real estate investment trust, was advised by Credit Suisse Securities (USA) LLC. Morgan Stanley can be found online at http://www.morganstanley.com, and Saxon can be found at http://www.saxonmortgage.com.

Fannie Mae has reported that the price tag for its accounting scandal may be lower than its original $10.8 billion estimate when it releases a restatement of its 2001 through 2004 financial results later this year.The mortgage giant said in a securities filing that an estimated $2.4 billion loss due to its misapplication of hedge accounting on mortgage commitments will be "significantly reduced." However, Fannie admitted that it is "unable to quantify the amount at this time." The government-sponsored enterprise also disclosed that a $400 million settlement it paid to securities regulators for alleged "fraudulent" financial reporting is not tax deductible. The expense will be recorded in its 2004 financial statement. Regarding its mortgage business, Fannie said the issuance of single-family mortgage-backed securities increased to $112.1 billion in the second quarter, up 5% from that of the previous quarter. However, Fannie's issuance of multifamily mortgage-backed securities fell by 51%, to $1.2 billion. The GSE cited a "lower number of seasoned pool issuance" for the steep decline in its multifamily business. "We expect multifamily lending to decrease during the second half of 2006 due to declining apartment building sales," Fannie said in the second-quarter update of its business activities and financial developments.

Anworth Mortgage Asset Corp., Santa Monica, Calif., has reported a net loss to common stockholders of $12.9 million ($0.28 per share) for the second quarter, including a loss of approximately $10 million from the sale of about $400 million in agency mortgage-backed securities.The unaudited results represented a big decline from the net income of $7.8 million ($0.16 per share) recorded a year earlier. Anworth, a mortgage real estate investment trust, said the weighted average coupon of the agency MBS held by the company as of June 30 stood at 5.34%. The REIT can be found on the Web at http://www.anworth.com.

The board of trustees of American Mortgage Acceptance Co., a New York City-based multifamily real estate investment trust, has approved the sale of AMAC's interests in ARCap Investors LLC to CharterMac as part of a CharterMac purchase of all third-party membership interests in ARCap.The transaction values the third-party interests at $210.3 million, or approximately $35 per membership unit. If the acquisition closes, AMAC said it expects to receive total proceeds of approximately $40 million. CharterMac is the parent company of AMAC's adviser, CharterMac AMI Associates. AMAC's board has also named J. Larry Duggins as chief executive officer of the company. Mr. Duggins is a founder of ARCap and now serves as its CEO. Jeff Blau, AMAC's existing CEO, will resign from that post, but will remain a member of the board, AMAC reported. The board also named Daryl J. Carter president the company. Mr. Carter is CEO of CharterMac Mortgage Capital, the mortgage banking subsidiary of CharterMac. Marc D. Schnitzer will resign as president and become chairman of the board.

Sizeler Property Investors, a New Orleans-based retail and multifamily real estate investment trust, has signed a letter of intent with Revenue Properties Co. for the acquisition of Sizeler at a cash price of $15.10 per Sizeler common share.The REIT reported that the merger transaction hinges on whether the two companies enter into a "mutually acceptable definitive merger agreement" prior to Aug. 17. Revenue Properties is a publicly traded owner and operator of property in which Morguard Corp., a Canada-based real estate and property management company, has a 68% interest, Sizeler said. Earlier this year, Sizeler had retained Wachovia Capital Markets to explore its "strategic alternatives."

Eight classes from five Ameriquest Mortgage Securities Inc. home equity issues have been downgraded by Fitch Ratings.The downgrades were as follows: series 2002-3, class M-4, from B to C; series 2002-4, class M-4, from BBB-minus to BB-minus; series 2003-1, class M-3, from BBB to BBB-minus, and class M-4, from BBB-minus to BB; series 2003-2, class M-3, from BBB to BBB-minus, and class M-4, from BBB-minus to BB; and series 2003-AR2, class M-3, from BBB to BB, and class M-4, from BBB-minus to BB-minus. Fitch also assigned a DR4 Distressed Recovery rating to class M-4 of series 2002-3. In addition, Fitch upgraded two Ameriquest classes and affirmed the ratings on eight classes from the five Ameriquest deals. The downgrades were attributed to a deterioration in the relationship between credit enhancement and expected losses.

Centerbrook Financial LLC, a provider of credit intermediation products for the affordable housing industry, has announced the completion of its second transaction, providing a pool of credit default swaps in connection with the resecuritization of approximately $175 million of multifamily revenue bonds.Centerbrook said it has provided nearly $1 billion of credit default swaps on CharterMac bonds since its launching in late June. Centerbrook, which is 90% owned by a subsidiary of CharterMac, can be found online at http://www.centerbrookfinancial.com, and CharterMac can be found at http://www.chartermac.com.

Sterling Financial Corp., Spokane, Wash., has announced the acquisition of the servicing portfolio, name, and other assets of Mason-McDuffie Financial Corp., an Oakland, Calif.-based mortgage banking operation, by Sterling's wholly owned subsidiary Intervest-Mortgage Investment Co.The terms of the transaction were not disclosed. "Since opening an office in Sacramento in 2004, Intervest has originated over $450 million in construction and interim loans in that region," said John Harlow, president of Intervest. "The combination of the Oakland office of Mason-McDuffie with Intervest's Sacramento office will create a full-service mortgage banking operation, second to none in Northern California." Intervest will operate under the name of Mason-McDuffie Financial Corp. in Northern California. The company said Campbell O'Neill will be president of Mason-McDuffie and will lead Intervest's lending activities in that area. Sterling Financial can be found online at http://www.sterlingsavingsbank.com.

Freedom Mortgage Corp., Mount Laurel, N.J., has announced an agreement to acquire the mortgage production operations of Irwin Mortgage Corp., a wholly owned subsidiary of Irwin Financial Corp., Columbus, Ind.The terms of the transaction were not disclosed. "Through this purchase, we acquire Irwin's deep distribution channels and gain access to their talented work force," said Freedom chief executive Stan Middleman. "It creates an instant presence for Freedom in many desirable markets. The Irwin footprint complements ours with virtually no redundancy." Freedom serves primarily the mid-Atlantic, Northeast, and California through the Northwest, but the acquisition of Irwin will expand its reach into the Southeast, the Midwest, Arizona, and Florida and add nearly 40 offices, Freedom said. Will Miller, chairman of Irwin Financial, said Irwin wants to focus its attention on the growth of its small-business and nonconforming consumer mortgage business. Freedom's purchase does not include Irwin's mortgage servicing operations and its mortgage servicing asset, each of which is being marketed separately. Classic Strategies Group LLC advised Freedom Mortgage and JPMorgan advised Irwin Financial. Irwin can be found online at http://www.irwinfinancial.com.

Zacks.com, the online unit of Zacks Investment Research Inc., Chicago, has reported that Wells Fargo & Co., San Francisco, is on its Brokerage Buy List portfolio, as it was in January.The portfolio consists of stocks that currently appear on the core recommended lists of at least three of the top 14 brokerage firms, Zacks said. The company reported that Wells Fargo's second-quarter earnings of $1.23 per share fell a penny short of the consensus figure, but added that earnings were up 10% from the $1.12 per share recorded a year earlier, while revenue rose 12%. The company can be found online at http://www.zacks.com.

Classes K-NO, M-NO, and N-NO of GCCFC 2004-FL2 have been placed on Rating Watch Negative by Fitch Ratings.Fitch said the three rake classes (those supported entirely by a single asset) associated with the Northlake Office Park loan, and representing 10.9% of the pool, were placed on the watchlist due to the uncertainty surrounding the future of the loan, which matures Sept. 1. "Based upon Fitch's analysis, the collateral cash flow is insufficient to meet the debt service coverage ratio required by the loan documents for an extension," the rating agency said. Furthermore, if the loan is placed in special servicing, interest shortfalls could occur that would affect investors in the rake classes, Fitch said, adding that the original timetable for repositioning the property has been slower than expected. Vacancy in the remaining buildings ranges from 13% to 100%.

The ratings on Reckson Associates Realty Corp., a real estate investment trust based in Melville, N.Y., have been placed on Rating Watch Negative by Fitch Ratings in the wake of the recently announced planned acquisition of the REIT by SL Green Realty Corp.The affected ratings are as follows: Issuer Default Rating, BBB-minus; senior unsecured notes issued by Reckson Operating Partnership LP, BBB-minus; and Reckson Operating Partnership's unsecured credit facility, BBB-minus. The rating actions reflect the execution risk associated with the transaction as well as the "somewhat weaker credit profile of the acquiring entity," Fitch said. The rating agency can be found online at http://www.fitchratings.com.

CapitalSource Inc., Chevy Chase, Md., has reported a $400 million increase in its committed credit facilities.The increase was provided by Swiss Re Financial Products Corp. in the form of a commercial paper conduit, CapitalSource said. Citigroup Global Markets Realty Corp. is the administrative agent for the facility. CapitalSource said it now has eight credit facilities with 19 financial institutions that provide a total capacity of $5.2 billion. The company can be found online at http://www.capitalsource.com.

Gramercy Capital Corp., New York, has announced the pricing of Gramercy Real Estate CDO 2006-1, its second $1 billion commercial real estate collateralized debt obligation.Gramercy said it will use the proceeds to retire outstanding borrowings under secured repurchase agreements and to fund debt investments. The CDO securities, to be issued by Gramercy Real Estate CDO 2006-1 LTD and Gramercy Real Estate CDO 2006-1 LLC, will consist of $903.75 million of investment-grade bonds, plus non-investment-grade bonds, preferred equity, and equity that will be retained by Gramercy. At issuance, the weighted-average interest rate of the investment-grade securities will be 36.95 basis points over the three-month London interbank offered rate, excluding transaction costs. Assets to be contributed to the CDO will consist primarily of first-mortgage loans secured by transitional and stabilized commercial properties, the company said. Also included in lesser proportions will be subordinate participation interests in first-mortgage loans, mezzanine loans, and preferred equity investments.

ECC Capital Corp., a real estate investment trust based in Irvine, Calif., has announced the completion of a $1.06 billion securitization of subprime mortgage loans.ECC Capital said it has sold the notes from BMAT Mortgage Asset NIM Trust, series 2006-1, representing the completion of the Bravo Mortgage Asset Trust 2006-1 securitization. The Bravo deal was a private placement with an initial closing on May 2 and prefundings on June 7 and June 30. Bear, Stearns & Co. was the sole offering agent for the notes and the certificates. ECC Capital, a mortgage finance REIT, can be found online at http://www.encorecredit.com.

Bank of America and Habitat for Humanity International recently celebrated 20 years of partnership -- and a 2001 commitment to fund the construction of 120 houses in the United States and another 100 across the globe -- by building the 100th house in Charlotte, N.C., where the bank is headquartered.The 2001 project is named after former BoA chairman and chief executive officer Hugh McColl Jr. and is designed to provide "sweat equity"-based affordable housing. Since 2002, BoA has donated about $10 million to Habitat. In addition, over 20,000 BoA volunteers from across the country have donated time and effort to building the homes. Another goal, Habitat said, is to serve about 700 families in Charlotte by the end of the summer.