Originations

BioMed Realty Trust Inc., a real estate investment trust based in San Diego, has doubled the size of its unsecured revolving credit facility to $500 million.The amendment to the facility also extends the term to June 27, 2009, provides greater flexibility with respect to covenants, and reduces the interest rate on borrowings, the REIT said. KeyBank NA was the administrative agent, lead arranger, and sole book manager of the facility. BioMed, which specializes in providing real estate to the life science industry, can be found online at http://www.biomedrealty.com.

Vornado Realty LP, the operating partnership of Vornado Realty Trust, Paramus, N.J., has entered into a $1 billion unsecured revolving credit facility, according to the real estate investment trust.The four-year facility, which replaces one due to expire in July, bears interest at 55 basis points above the London interbank offered rate (based on the company's current credit ratings). Vornado said the joint book-running managers for the offering are J.P. Morgan Securities Inc. and Bank of America Securities LLC. The REIT can be found on the Web at http://www.vno.com.

Ellie Mae, Dublin, Calif., has announced the formation of a partnership with ComplianceEase, Burlingame, Calif., to offer free, automatic compliance audits to mortgage brokers using Ellie Mae's Encompass Mortgage Automation System.The compliance check, which is free of charge with every loan submission to one of the 45-plus lenders available on the ePASS Network, will work to ensure that loans comply with federal regulations and state and municipal predatory-lending laws, Ellie Mae said. (The acronym stands for Electronic Processing and Submission System.) "Compliance is essential these days, so having a compliance check built into a loan origination system provides great benefits to mortgage brokers," said Jonathan Corr, Ellie Mae's chief strategy officer. The compliance check provides an easy-to-understand "pass" or "fail" designation, but originators who want additional details on loans that failed can get an instant, in-depth report for a nominal fee, Ellie Mae said. The companies can be found online at http://www.elliemae.com and http://www.complianceease.com.

SunTrust Mortgage, a subsidiary of SunTrust Banks, Atlanta, has entered into an agreement with HouseRaising Inc., Charlotte, N.C., to provide construction-permanent financing for homes built by HouseRaising or one of its affiliated builders.HouseRaising is a general manager of projects, helping homebuilders in such areas as design and cost estimation through construction. HouseRaising said one of the reasons it chose SunTrust Mortgage was because its construction-permanent product has a one-time close feature. "We wanted a CP product that offered savings to our customers and a loan process that was as seamless as possible," said Gregory Wessling, HouseRaising chairman and chief executive. "In addition, we like the way SunTrust Mortgage administers their construction loans. All the processing and underwriting for our customers will be handled locally, and that's important to us." SunTrust can be found online at http://www.suntrust.com.

The average 30-year fixed mortgage rate rose from 6.71% to 6.78% over the seven-day period ended June 29, its highest level since May 2002, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 6.36% to 6.43%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages was up from 6.32% to 6.39%, and the average rate for one-year Treasury-indexed ARMs climbed from 5.75% to 5.82%, Freddie Mac reported. (The 15-year rate was the highest since April 2002, and the one-year ARM rate was the highest since June 2001, Freddie Mac said.) Fees and points averaged 0.5 of a point for fixed-rate mortgages and hybrid ARMs and 0.8 of a point for one-year ARMs. "Financial markets continue to expect more rate hikes by the [Federal Reserve Board] over the next six months, which has added upward pressure on mortgage rates," said Frank Nothaft, Freddie Mac's chief economist. "With higher interest rates, the housing market has begun a gradual and orderly reversion toward historical norms." A year ago, the average 30-year and 15-year fixed rates were 5.62% and 5.20%, respectively, and the average one-year ARM rate was 4.33%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.

Chicago-based Equity Residential is selling its Lexford Housing Division to affiliates of Empire Group Holdings, a Montvale, N.J.-based private company, for a cash price of $1.086 billion.The Lexford Housing Division is made up of 289 properties, consisting of 27,115 apartment units located in 10 states, as well as a Columbus, Ohio-based property management business, Equity Residential reported. "We will use the proceeds of this transaction to continue transforming our portfolio by reducing the number of markets in which we operate and focusing on markets that we believe will provide better growth prospects and higher total returns," said David J. Neithercut, Equity Residential's president and chief executive. Equity Residential purchased Lexford Residential Trust in 1999 for about $738 million, according to the real estate investment trust. The company said it expects to receive about $850 million of net sale proceeds after closing expenses and repayment of about $210 million of secured debt. A total book gain of about $430 million is expected from the sale, which is expected to close in the fourth quarter, the REIT said. It can be found online at http://www.equityapartments.com.

New York-based CharterMac has announced the formation of Centerbrook Financial LLC, a provider of credit intermediation products for the affordable housing industry, in conjunction with IXIS Capital Markets North America Inc.In addition to equity contributions from CharterMac, Centerbrook has obtained commitments totaling $155 million from four financial institutions, CharterMac reported. Concurrently with the launch, Centerbrook completed its first transaction, providing a pool of credit default swaps in connection with the resecuritization of $820 million of CharterMac's multifamily revenue bonds. "Out ownership of Centerbrook will enable us to retain a significant portion of the fees that we would have paid to third-party credit providers," said Marc D. Schnitzer, chief executive officer and president of CharterMac, which provides financial services for the multifamily sector. "CharterMac paid third-party credit providers over $13.5 million of fees in 2005, even though we retained a majority of the risk associated with the transactions." CharterMac can be found online at http://www.chartermac.com, and IXIS can be found at http://www.ixiscm.com.

Bear Stearns International Ltd. has appointed three New York executives to senior posts in its international mortgage operation.The London-based arm of the U.S. Wall Street firm has appointed Fred Khedouri as head of European residential mortgage and consumer loan origination. Bear has also appointed Doug Lucas as head of European asset-backed securities trading and Virginia "Ginny" Darrow as chief executive officer of its Rooftop Mortgages Ltd. subsidiary. Mr. Khedouri has worked for Bear Stearns for 20 years, and his experience includes serving as the head of the global financial institutions investment banking group, as the senior mortgage securitization banker, and as a manager of a hedge fund that invests in subprime mortgage securities. Ms. Darrow previously held responsibilities at Bear Stearns that included serving as part of the management oversight team for EMC Mortgage Corp., a U.S. servicer and originator. Mr. Lucas has worked for Bear for over eight years and has experience in trading ABS, mortgage-backed securities, and collateralized debt obligations. Bear Stearns can be found online at http://www.bearstearns.com.

Fannie Mae has announced that many changes to its MyCommunityMortgage product line -- including 40-year mortgages, new adjustable-rate and interest-only options, streamlined pricing, and expanded eligibility -- will go into effect in August and September.The changes, some of which were outlined in May at the Mortgage Bankers Association's National Secondary Market Conference in Chicago, are aimed at expanding the MCM line of affordable housing products. The government-sponsored enterprise said, for example, that standard whole-loan commitments and mortgage-backed security pool purchase contracts for delivery of MCM first-lien fixed-rate mortgages (and certain ARMs) will be offered beginning Aug. 1. Streamlined pricing that reduces the number of options requiring different guaranty fees or whole-loan pricing will also become available on Aug. 1, along with commitment and delivery options for 40-year loans. Several MCM IO options will be added as of Sept. 1. Numerous other MCM changes are presented in Fannie Mae announcement 06-07, "Community Lending Enhancements -- MyCommunityMortgage." Fannie Mae can be found online at http://www.fanniemae.com.

The Market Composite Index, an overall measure of mortgage applications, fell from 567.6 to 529.6 on a seasonally adjusted basis during the week ended June 23, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications decreased 7.0% on the week and were down 31.0% from the level recorded a year earlier. The Purchase Index fell from 414.8 to 389.0 on a seasonally adjusted basis, while the Refinance Index declined from 1466.1 to 1356.0. Refinancings represented 35.3% of total applications, down from 35.5% the previous week, while adjustable-rate mortgages accounted for 29.1%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages increased from 6.73% to 6.86%, and points (including the origination fee) decreased from 1.14 to 1.10 for loans with 80% loan-to-value ratios, the association reported.

Volatility in U.S. commercial real estate markets continued to decline in 2005, according to Fitch Ratings.The latest reading of Fitch's Property Market Metric showed a 0.05% decline in volatility in 2005 from that of 2004. Volatility scores for multifamily, office, and industrial properties declined across primary and secondary markets, while retail market volatility was mixed. New Orleans was the only primary multifamily market that experienced greater volatility, Fitch said. In the retail sector, primary retail market volatility fell 0.05%, while secondary retail markets saw greater volatility of 0.11%. Primary and secondary hotel markets experienced higher volatility in 2005. Lingering concerns in the retail sector may lead to greater volatility, according to Patty Bach, a Fitch senior director. "The pressure of rising interest rates, higher energy costs, and a potentially weaker housing market may further hinder the spending power of the leveraged U.S. consumer," Ms. Bach said. "This may prove to be particularly burdensome in select primary markets such as Dallas and Fort Worth, where overall volatility has gone up for the last two years." Fitch can be found online at http://www.fitchratings.com.

Many of the nation's hottest housing markets are cooling, but the strength of the economy is balancing the risk of price declines in the nation's 50 largest housing markets, according to PMI Mortgage Insurance Co., Walnut Creek, Calif.The average score in the PMI U.S. Market Risk Index rose from 287 to 288 in the second quarter, the company reported. This means the company's estimate of the probability of experiencing a home price decline in the next two years has risen from 28.7% to 28.8% in the 50 largest metropolitan statistical areas. According to the index, there are now 13 markets with a greater than 50% chance of price declines over two years, down from 14 in the first quarter. "This quarter's data signals that in many areas the expansion of the housing balloon has slowed substantially," said Mark Milner, chief risk officer of PMI Mortgage Insurance. "The Risk Index also shows that slowing price appreciation is balanced by underlying economic strength. In the absence of an unexpected economic shock, this makes a gradual cooling of the market the most likely outcome." PMI can be found online at http://www.pmigroup.com.

Freddie Mac has announced changes to its Loan Prospector automated underwriting service and its Home Possible affordable mortgage products that it says are designed to help more low- and moderate-income borrowers qualify for mortgages eligible for purchase by Freddie Mac.The government-sponsored enterprise said it expects more mortgages submitted to LP to get an "accept" response as a result of the revisions. Moreover, the GSE is waiving the LP assessment fee when a "caution" is returned on the first submission of a conforming, conventional mortgage. (Freddie said such responses are triggered by higher-risk mortgages that the GSE purchases as well as by loans that don't meet its loan purchase guidelines.) Paul Mullings, senior vice president of single-family sourcing at Freddie Mac, said the announcements "are the latest installment on the pledge we made to our lender customers to buy more of the loans they originate and give them new ways to build their market share with Loan Prospector." Freddie Mac can be found online at http://www.freddiemac.com.

Citizens Banking Corp., Flint, Mich., has agreed to purchase Republic Bancorp Inc., Ann Arbor, Mich., in a deal valued at $1.05 billion.While Republic is chartered as a commercial bank, analysts have noted that its primary line of business is mortgage banking. In 2004, Republic was the nation's 130th-largest mortgage lender, with volume of under $2 billion. As part of the transaction, the parties will sell $1 billion in mortgage loans and securities, along with liquidating $1 billion in wholesale funding and recording $20 million in credit-related adjustments. The moves are being done to improve the interest rate risk and credit risk positions at Citizens Republic, as the combination will be known.

The Federal Reserve Board has terminated an enforcement order against Citigroup's subprime lending unit that was imposed two years ago for lending violations and for "misleading" examiners during an investigation of the company's lending practices.In May 2004, CitiFinancial Credit Co., Baltimore, agreed to pay a $70 million civil money penalty to the Fed for alleged violations of the Equal Credit Opportunity Act and the Home Owners and Equity Protection Act. The Fed also cited the subsidiary of the giant New York banking company for "alleged actions to mislead examiners in connection with their interview of CitiFinancial employees." The Fed examiners found that CitiFinancial required co-signers on loans to increase sales of joint insurance. The Fed also alleged that CitiFinancial engaged in unsafe and unsound underwriting and lending practices with respect to high-cost HOEPA loans. CitiFinancial agreed to take corrective actions and to pay restitution to borrowers who were harmed by its lending practices.

Existing-home sales slipped 1.2% in May as the inventory of unsold homes continued to rise and sales in high-cost markets were slowing, according to the National Association of Realtors."There's now a clear pattern of slower home sales activity in many high-cost markets, which are more sensitive to rises in interest rates," NAR chief economist David Lereah said. The NAR reported that sales of single-family homes, condominiums, and cooperatives fell from a seasonally adjusted annual rate of 6.75 million in April to 6.67 million in May. Single-family home sales slipped 1.5% to 5.91 million in May, while the median price of a single-family home was up 6.6% from May 2005. In April, annual price appreciation had slipped to 4.7%. The NAR also reported that the inventory of unsold existing homes was 3.60 million units in May, compared with 2.56 million units in May 2005.

Five classes of Wachovia Bank Commercial Mortgage Trust commercial mortgage pass-through certificates, series 2004-WHALE 4, have been placed on review for possible downgrade by Moody's Investors Service.The affected securities are classes H, J, K, GP-1, and GP-2. In addition, Moody's upgraded five classes and affirmed the ratings on six other classes in the transaction. The certificates are collateralized by six loans ranging in size from 9.1% to 34.2% of the pool. Moody's said the negative rating actions were due to a decline in the credit quality of the Bellemead Portfolio Loan, which is secured by eight office properties in Troy, Mich. "The occupancy of the Troy properties, at 81.0%, has been stable since securitization, however there is significant near-term lease rollover exposure as leases for 26.0% of the premises expire between now and August 2007," Moody's said. In addition, four properties representing 41% of the portfolio are 100% leased to a single tenant, Electronic Data Systems. "The portfolio is now less diverse, more concentrated in a weak market, has significant lease rollover, and single-tenant exposure," the rating agency said. The trust balance includes the pooled loan and a $5.1 million nonpooled loan that secures nonpooled classes GP-1 and GP-2.

Two tranches of GSAMP Trust 2004-SEA2 have been downgraded by Moody's Investors Service, and two other tranches have been placed on review for possible downgrade.Class B-1 of the transaction was downgraded from Baa3 to Ba3, and class B-2 was downgraded from Ba1 to Caa3. Classes M-4 and M-5 were placed on review for possible downgrade. Moody's also upgraded one tranche issued by GSAMP Trust 2003-SEA2. The negative rating actions were based on a "rapid deterioration" of overcollateralization caused by accelerating losses, Moody's said. "From March to May of 2006. the transaction incurred nearly $4 million in losses," the rating agency reported. The deal consists of seasoned subprime mortgage loans, some of which experienced delinquency prior to securitization. Moody's can be found online at http://www.moodys.com.

Fidelity National Financial Inc., Jacksonville, Fla., and Fidelity National Information Services Inc. have announced a merger agreement under which FNF will be merged into FNIS, which will be the surviving entity.The merger agreement, previously reported as a proposal, will be consummated after the closing of a securities exchange and distribution agreement between FNF and Fidelity National Title Group Inc., FNF's majority-owned title insurance subsidiary. Under that agreement, FNF will contribute substantially all its assets and liabilities (other than its ownership interests in FNIS) to FNTG in exchange for shares of FNTG's class A common stock, the companies reported. Immediately after that exchange, FNF will convert its class B common stock of FNTG into shares of FNTG class A common stock and distribute all the class A shares as dividends to FNF stockholders. These transactions will leave FNF with an approximately 51% ownership in FNIS as its only asset prior to the merger, the companies said. William P. Foley II, FNF's chairman and chief executive officer, will become executive chairman of FNIS.

If there is a theme to Harry Dinham's term as the new president of the National Association of Mortgage Brokers, it is continuity.Elected at the NAMB's annual convention, the 39-year mortgage industry veteran from Plano, Texas, said he aims to maintain the good works of his predecessors. "I firmly believe in continuity from president to president," Mr. Dinham told the convention. One initiative planned by the new NAMB leader is a "serious effort to address the abuses that exist in some affiliated business arrangements." Such schemes "injure consumers because they inhibit and at times outright prevent them" from shopping for the best rates and terms, the soft-spoken Texan said. "We are against the use of affiliated business arrangements as a veil to coercive lending tactics," he said. On another front, the new president said he hopes to expand his group's educational efforts and certification initiatives. Along that line, it will soon pilot a new entry-level professional designation -- the General Mortgage Associate, or GMA.