Originations

New York Mortgage Trust Inc., New York, has reported a loss of $5.3 million ($0.29 per share) for fiscal year 2005, compared with net income of $4.9 million ($0.27 per share) a year earlier."In our mortgage banking subsidiary we experienced record loan origination volume for the year, an 86% increase over 2004, yet our operating results were less favorable than expected," said Steven B. Schnall, chairman, president, and co-chief executive of the company. Michael I. Wirth, NYMT's chief financial officer, added that the company's annual results reflect "various growth and efficiency initiatives" carried out during the year as well as the downturn in the mortgage portfolio investment and origination markets. "During 2005 our taxable REIT subsidiary incurred startup expenses relating to the creation of its new wholesale loan division of $2.6 million and accrued expenses of $2.6 million related to its assumption of the branches and sales force of Guaranty Residential Lending Inc.," Mr. Wirth said.

Public Storage, a Glendale, Calif.-based real estate investment trust, is acquiring Seattle-based Shurgard Storage Centers, another self-storage REIT, for about $5 billion.Public Storage is issuing about 38.4 million shares of common stock to fund the merger and assuming about $1.8 billion of Shurgard debt, Public Storage said. In addition, $136 million of Shurgard preferred stock will be redeemed. The REITs said they expect to benefit from economies of scale following the merger. Each Shurgard common share will be exchanged for 0.82 of a share of Public Storage common stock, which values each Shurgard common share at $65.16, Public Storage said. Public Storage had made a previous bid for Shurgard last summer, in which 0.80 of a share of Public Storage were offered for each Shurgard share, which Shurgard rejected at the time. On March 6, Shurgard common shares closed at $63.60 and Public Storage common shares at $79.46. After the merger, Public Storage is expected to have a total market capitalization of about $18 billion and an interest in over 2,100 facilities in 38 states and seven European countries. It can be found online at http://www.publicstorage.com.

A Maryland circuit court on Tuesday morning halted -- for now -- the enforcement of an ordinance on discriminatory lending that had caused 50 lenders to pull out of Montgomery County.Thomas Shaner, executive director of the Maryland Association of Mortgage Brokers, told MortgageWire that a full hearing on the ordinance is now set for July 6. "It's enjoined," he said. Passed by the Montgomery County Council, the law carries a minimum penalty of $500,000 per violation for discriminatory lending practices. The bill, set to go into effect March 8, has stirred controversy because it penalizes lenders for charging "excessive" fees without defining what excessive means. Mr. Shaner said his "assumption" is that the 50 lenders who promised to curtail lending in Montgomery will continue to lend there. The American Financial Services Association and seven county brokers sued to enjoin the law. A spokesman for county executive Douglas Duncan, who is running for governor, said the law "is fair and reasonable," adding that the county will "vigorously defend" it.

Pennsylvania Real Estate Investment Trust, Philadelphia, has reported an amendment to its $500 million credit facility that lowers the interest rate range from 1.05%-1.55% to 0.95%-1.40%.The amendment also modified certain financial covenants, reducing the minimum interest coverage and total debt ratios and allowing for an increase in joint venture investments, the REIT said. The term of the amended facility will end Jan. 20, 2009, with an option to extend for 14 months under certain conditions. The shopping center REIT can be found online at http://www.preit.com.

CDS IndexCo LLC and Markit Group Ltd., both based in New York, have announced the launch of CMBX, a synthetic index of U.S. commercial mortgage-backed securities.The index consists of five subindices based on the 25 most recent CMBS deals. To qualify for inclusion in the index, a deal must total at least $700 million and an issuer must have ratings from at least two of the following rating agencies: Moody's Investors Service, Fitch Ratings, and Standard & Poor's Ratings Services. CDS IndexCo is a consortium of 16 investment banks licensed as market makers in the Dow Jones CDX indices, and Markit Group is a provider of independent mark-to-market pricing and valuations. The market-makers in the new CMBX index are Bank of America, Bear Stearns, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, Nomura International, RBS, Greenwich Capital, UBS, and Wachovia. Markit Group can be found online at http://www.markit.com.

In the wake of hurricanes Katrina and Rita, massive property damage and high unemployment rates pushed default rates on subprime mortgages up to 32.6% in Louisiana and 29.9% in Mississippi as of Dec. 30, according to Friedman Billings Ramsey.But the bad news is not over, according to the investment banking firm. FBR said it expects conditions to get worse as this year progresses, with subprime defaults (90 days or more past due) in New Orleans rising from 47.8% to 61.3% by the end of the year, and defaults in Biloxi, Miss., rising from 35.4% to 66.4% by year-end. Nationwide, the default rate on subprime mortgages was 7.07% at the end of 2005. The FBR research report on the performance of residential asset-backed securities also shows that defaults on nonagency prime loans had climbed to 13.20% in Louisiana and to 6.02% in Mississippi as of Dec. 30. Hibernia National Bank, a Fannie Mae/Freddie Mac prime lender based in Baton Rouge, La., reported that its default rate was 6.72% as of Dec. 30, up from 0.33% at year-end 2004, according to the Quarterly Data Report, a MortgageWire affiliate.

A federal judge in Sacramento, Calif., has ruled in favor of the parties suing to overturn California's Junk Fax Law.The state passed its own law last year in a direct challenge to the federal Junk Fax Prevention Act. The California law did not carve out an "established business relationship" safe harbor, as did the federal law. "Because of this victory, businesses nationwide will be spared the unnecessary cost and bureaucracy of navigating what would have been grossly conflicting federal and state laws," said Stephen A. Bokat, executive vice president of the National Chamber Litigation Center, an arm of the U.S. Chamber of Commerce, one of those suing the state over the law. Among those benefiting from the ruling are mortgage wholesalers who send out rate sheets to brokers and mortgage brokers who fax marketing materials to real estate brokers.

CarrAmerica Realty Corp., Washington, D.C., has announced a merger agreement under which it will be acquired by an affiliate of The Blackstone Group in a transaction valued at approximately $5.6 billion.Under the agreement, Blackstone, a New York-based commercial real estate investor, will acquire all the outstanding common stock of CarrAmerica for $44.75 per share in cash. The share price represents an 18.4% premium over CarrAmerica's closing stock price on Feb. 16, the day before the first reports were published about a possible acquisition of the company, CarrAmerica said. CarrAmerica's board has unanimously approved the deal and recommended stockholder ratification. Goldman, Sachs & Co. acted as financial adviser to CarrAmerica, and Blackstone's advisers were Citigroup, Bank of America, and Deutsche Bank. The companies can be found on the Web at http://www.carramerica.com and http://www.blackstone.com.

A leading indicator of existing-home sales edged down by only 1.1% in January, which may be signaling that the decline in homes sales over the past five months is beginning to level off, according to the National Association of Realtors.NAR chief economist David Lereah told CNBC-TV that the 1% decline could be a sign that home sales are "plateauing or reaching a new low," after declining by 9.3% since August. "This looks like we're touching down for the soft landing we've been expecting," Mr. Lereah said. The NAR reported that its index of pending homes sales slipped to 116.3 in January from a seasonally adjusted annual rate of 117.6 in December. The November to December decline in pending sales was 2.6%. The NAR can be found online at http://www.realtor.org.

The Mortgage Bankers Association says a pending law in Maryland will have a "chilling" affect on lenders and loan investors working in the state's most prosperous county because it affects both the primary and secondary markets.During a March 6 press briefing, the trade group also blasted Montgomery County executive Douglas Duncan -- who is running for governor -- for not vetoing the law. (The county executive is not related to Doug Duncan, the MBA's chief economist.) Passed by the Montgomery County Council, the law in question carries a minimum penalty of $500,000 per violation for discriminatory lending practices. The bill has stirred controversy because it penalizes lenders for charging "excessive" fees without defining what excessive means. To date, 40 lenders have decided to curtail lending in the county, at least for now. On Tuesday a judge will consider a motion to block the law. Standard & Poor's said it analyzed the ordinance but concluded that investors have no "assignee" liability. Still, the MBA says it believes investors are weary, despite S&P's conclusion. The MBA can be found online at http://www.mortgagebankers.org.

Equity Residential, Chicago, has announced the retention of J.P. Morgan to assist the company in the possible sale of its Lexford housing division.The division is composed of 299 properties in 10 states, consisting of 27,390 apartment units and a property management business based in Columbus, Ohio. "There is currently tremendous demand for large multifamily portfolios, particularly those that include an operating platform," said David J. Neithercut, president and chief executive officer of Equity Residential. The company can be found online at http://www.equityresidential.com.

Home prices increased at an annualized rate of 12.5% nationwide in the fourth quarter, down from a revised rate of 13.4% in the third quarter, according to the Conventional Mortgage Home Price Index released by Freddie Mac.The Mountain states recorded the biggest price increases, with a 19.4% annualized growth rate, Freddie Mac said. The Pacific states experienced the second-highest annualized gains in the fourth quarter, with an 18.2% growth rate, and the South Atlantic states came in third, at 16.8%. "Mortgage rates rose sharply in the fourth quarter, and we are starting to see marked slowing in the rate of home price appreciation," said Frank Nothaft, Freddie Mac's chief economist. ".... We've now seen two consecutive quarters of moderation in home-value growth. We expect the trend of slowing growth in home values to continue, with national average home-value appreciation about one-half of last year's rise." The index was jointly developed by Freddie Mac and Fannie Mae. Freddie Mac's website address is http://www.freddiemac.com.

Genworth Financial, Richmond, Va., has announced the pricing of a General Electric secondary public offering of approximately 71 million shares of Genworth class A common stock at $32.75 per share.Genworth, whose mortgage insurance subsidiary is headquartered in Raleigh, N.C., said it will also repurchase 15 million shares of Genworth's class B common stock directly from GE for $479 million, contingent upon the closing of the secondary offering. After the transactions, GE will not own any shares of Genworth common stock, the company said. The global coordinator and bookrunner for the offering was Merrill Lynch & Co., with Citigroup; Goldman, Sachs & Co; J.P. Morgan; and Morgan Stanley & Co. as bookrunners. Genworth can be found online at http://www.genworth.com.

LoopNet, an online commercial real estate marketplace, has filed a registration statement with the Securities and Exchange Commission for a proposed initial public offering of its common stock.The San Francisco-based company said the number of shares to be offered and the price range have not yet been determined. LoopNet enables commercial real estate brokers, and other agents, to list properties for sale or lease. In addition, the company provides technology and information services to enable commercial real estate organizations to manage their online listings and property marketing. The company can be found on the Web at http://www.loopnet.com.

The average 30-year fixed mortgage rate fell from 6.26% to 6.24% over the seven-day period ended March 2, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate was unchanged, at 5.89%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages increased slightly from 5.96% to 5.97%, and the average rate for one-year Treasury-indexed ARMs climbed from 5.32% to 5.34%. Fees and points averaged 0.6 of a point for fixed-rate mortgages and hybrid ARMs and 0.8 of a point for one-year ARMs. "Consumer confidence slipped in February to the lowest reading in three months, but manufacturing activity appears to have strengthened last month," said Frank Nothaft, Freddie Mac's chief economist. "On net, the latest economic news had little effect on mortgage rates this week." A year ago, the average 30-year and 15-year fixed rates were 5.79% and 5.33%, respectively, and the average one-year ARM rate was 4.14%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.

At least 40 mortgage firms -- and counting -- will no longer fund loans in Maryland's most prosperous county because of a new anti-discrimination law that carries a minimum penalty of $500,000 per violation.As of MortgageWire's deadline on Friday, the Montgomery County anti-discrimination law was a chief topic of conversation at the Maryland Association of Mortgage Brokers show in Baltimore. Thomas Shaner, executive director of the MAMB, told MW that the ordinance -- set to take effect March 8 -- is "poorly worded, vague, and greatly enhances the exposure to" residential first- and second-lien funders there. "We're all for ways to fight discrimination, but this isn't it," he said. The American Financial Services Association and seven county brokers have filed suit to prevent the law from taking effect. A hearing is set for March 7. Among other things, the law penalizes lenders for charging "excessive fees" or financing single-premium credit life insurance. Mr. Shaner, whose group opposes the law, said the bill does not even define what "excessive" means. He said his members, including many Hispanic and Korean brokers, are "livid" over the law. At least 125 mortgage bankers fund in the county (not counting the 40 who just left).

Jones Lang LaSalle Inc., a Chicago-based real estate services firm, has announced the closing of a $450 million, five-year unsecured revolving credit facility.Initial pricing under the new facility, which replaces a $325 million revolving facility, will be 55 basis points above the London interbank offered rate, a reduction of 45 bps, the company reported. Harris Nesbitt acted as lead arranger on the transaction. Jones Lang LaSalle can be found on the Web at http://www.joneslanglasalle.com.

Zacks.com, the online unit of Zacks Investment Research Inc., Chicago, has placed General Growth Properties on its #5 Rank List -- Stocks to Sell Now.The Chicago-based real estate investment trust recently reported funds from operations of $0.91 per share, $0.10 below analysts' projections and the second straight quarterly shortfall, Zacks said. The REIT's guidance -- FFO of $3.27-3.37 per share for 2006, versus a previous consensus estimate of $3.48 per share -- was also disappointing, Zacks said. Zacks noted that nine of the 13 analysts that cover GGP have cut their forecasts, dropping the consensus estimate to $3.38 per share. Zacks can be found online at http://www.zacks.com.

G REIT Inc., Santa Ana, Calif., has announced stockholder approval of a plan of liquidation, involving the sale of 25 properties, that is expected to take up to two years.G REIT said the net liquidation value is estimated at somewhere between $10.31 and $11.50 per share of common stock. G REIT's adviser and operational manager is Triple Net Properties LLC, Santa Ana, which can be found on the Web at http://www.1031nnn.com.

It may be a long year for the mortgage insurance industry if the number of applications received in January is any indicator.According to the Mortgage Insurance Companies of America, there were 95,131 applications received in January, down from 160,038 in December and 103,901 in January 2005. In calendar year 2005, last January was the worst month for application volume. In terms of dollar volume for traditional primary mortgage insurance written, the group's members did $10.0 billion worth of business, compared with $12.8 billion in December and $10.9 billion last January. A comparison of total volume between December and January is skewed because of an unusually high number of bulk transactions that were insured. In December, $26.7 billion of primary new insurance was written; one month later, it was down 48% to $13.6 billion. Just short of $14 billion was written in January 2005. The cure/default ratio for January was 75.6%, with 37,270 cures and 49,311 defaults. MICA can be found online at http://www.micanews.com.