Originations

Rockpoint Group, a San Francisco-based real estate investment management firm, has closed $1.7 billion in equity commitments for Rockpoint Real Estate Fund II, its third real estate investment fund.The investors include public and corporate pension funds and endowments, Rockpoint reported. The fund will look for investment opportunities in all real estate property types in the United States, and will also invest in Japan and Europe. Overseas, the fund will target "distressed, restructuring, and deep value creation" opportunities, the company said. The fund is looking to acquire as much as $7 billion worth of real estate investments, and could invest up to 45% of its equity commitments overseas. Patrick K. Fox, Keith B. Gelb, Gregory J. Hartman, Jonathan H. Paul, and William H. Walton are the principals of Rockpoint Group.

New single-family home sales jumped 13% in October to a new monthly record, but there are signs that demand is softening along with prices of newly constructed homes.The U.S. Census Bureau reported that new-home sales rose to a seasonally adjusted annual rate of 1.42 million in October, up from 1.26 million in September. Despite the October sales report, National City Corp. chief economist Richard DeKaser said, "we are seeing a market that is at a turning point." He noted that the median price of new homes is up only 0.9% this year, compared with 18.0% in 2004. "We are seeing price softening, which is not something one typically observes during a period of extraordinarily robust demand," Mr. DeKaser said. He also observed that interest rates may have prompted some prospective homebuyers or "fence-sitters" to sign a sales contract. During October, the 30-year mortgage rate moved above 6% for the first time since March.

Two home equity loan pass-through certificates from a deal issued by Long Beach Mortgage Co. in 2000 have been placed under review for possible downgrade by Moody's Investors Service.The affected securities are classes M2V and BV of Asset Backed Securities Corp., Long Beach Home Equity Loan Trust 2000-LB1. The transaction is backed by primarily first-lien adjustable- and fixed-rate subprime mortgages originated by Long Beach. Two subordinate classes from the adjustable-rate group were placed on review for possible downgrade because credit enhancement levels may be low given the projected losses on the underlying pools, Moody's said. The transaction has taken significant losses, causing gradual erosion of the overcollateralization, the rating agency reported.

Lane Co., an Atlanta-based multifamily real estate company, has announced a $150 million joint venture with Mortgage Stanley Real Estate, New York, to invest in apartments, condominium conversions, and new development in major metropolitan areas in the Southeast.Bill Donges, Lane's chief executive officer, said the Southeast has "very strong" multifamily demographics. "The venture will be weighted more heavily towards apartment acquisitions and will target high-quality locations for core through value-added acquisition opportunities," he said. Lane Co. can be found on the Web at http://www.lanecompany.com.

The U.S. home equity market could reach $1 trillion in value by the end of the year, according to the TowerGroup, a Boston-area research and consulting group focused on the financial services industry.The firm said the low interest rates and potential tax deductions offered by home equity represent "a better option" than other forms of credit or tapping into savings. "As mortgage rates creep up and lenders get creative, TowerGroup believes home equity will become the popular choice for consumers locked into a low-rate first mortgage -- as well as for those who need extra money for seasonal purchases at year-end, debt consolidation after the New Year, or tax payments in the spring," the company said. TowerGroup can be found online at http://www.towergroup.com.

Mortgage bankers originated $925 billion in loans during the third quarter, the industry's best showing in two years, according to exclusive survey figures compiled by National Mortgage News and the Quarterly Data Report.NMN/QDR found that through the first three quarters of the year lenders funded $2.4 trillion in home loans, and likely will end the year with well over $3 trillion in production, making it the industry's second-best year ever. Countrywide Home Loans, Calabasas, Calif., ranked first among all lenders, funding $146 billion in home mortgages, giving it a market share of 15.8%. (For a ranking of the top 30, see the Nov. 28 issue of NMN.)

Existing-home sales fell 2.7% in October, confirming a slowdown in the housing market, but house prices rose at the highest annual rate since 1979, when inflation was rampant.The National Association of Realtors reported that October sales of single-family homes, condominiums, and cooperatives fell from a seasonally adjusted annual rate of 7.29 million in September to a 7.09 million rate in October. Inventories of unsold homes rose to a 4.9-month supply -- the highest in more than two years. However, the median sales price of a single-family home was $216,200 in October, up 16.6% from a year ago. "It is clear to me that the housing markets have peaked," NAR chief economist David Lereah said, noting that the prediction includes home price increases. He said he expects house price appreciation of only 5% in 2006. Sellers will have to reduce their expectations as the real estate market continues its transition to a buyer's market over the next four months, the NAR economist said. The NAR report shows that single-family home sales fell 2.5% in October, while condo and coop sales fell 4.4%. The NAR can be found online at http://www.realtor.org.

Class B-7 of DLJ Commercial Mortgage Corp.'s series 1999-CG1 commercial mortgage pass-through certificates has been downgraded from B to B-minus.In addition, Fitch upgraded two classes in the deal and affirmed the ratings on 10 other classes. The rating agency attributed the downgrade to a deterioration of credit enhancement as a result of expected losses on specially serviced assets. The two largest specially serviced loans, each representing about 1.0% of the pool, are a retail property in Roanoke Rapids, N.C., and an office property in Colorado Springs, Colo., Fitch said. Both are 90-plus days delinquent, and the special servicer of the former loan is finalizing a deed-in-lieu of foreclosure. Fitch can be found online at http://www.fitchratings.com.

Luminent Mortgage Capital Inc., San Francisco, has securitized $520.5 million of hybrid adjustable-rate mortgages.Bear Stearns & Co. and Morgan Stanley underwrote the transaction, Luminent 2005-1. Luminent retained $20.2 million of the securities for its securitized residential mortgage credit portfolio. Luminent can be found on the Web at http://www.luminentcapital.com.

The Market Composite Index, an overall measure of mortgage applications, fell to 635.4 for the week ending November 18, down from 657.6 a week earlier as a 7% drop in refinancing reduced loan application volume, according to the Mortgage Bankers Association.The MBA's seasonally adjusted home purchase index fell slightly to 472.3 from 477.9 a week earlier, while the refinancing index declined to 1584.1 from 1702.4 a week earlier. Moreover, the refinancing index was down 17% compared to four weeks earlier. The refinancing share of mortgage applications dipped to 39.9% of total applications from 40.4% the previous week. The adjustable-rate share of activity rose to 33.2%, from 32.9% the previous week. The Mortgage Bankers Association can be found online at www.mortgagebankers.org.

The average rate on 30-year, fixed-rate mortgages was 6.28%, down from 6.37% a week earlier, for the week ending November 24, according to Freddie Mac's weekly survey.The average for 15-year FRMs was 5.81%, down from 5.90% a week earlier. Five-year, Treasury-indexed hybrid adjustable-rate mortgages averaged 5.75%, down from 5.86% a week earlier. One-year Treasury ARMs averaged 5.14%, down from 5.20%. Rates remained substantially higher than at this time in 2004, however. Freddie Mac chief economist Frank Nothaft attributed the decline in rates to lower oil prices, which helped alleviate some inflationary fears during the week of November 24. "That helped to reduce upward pressure on interest rates last week, allowing mortgage rates to ease a bit for the first time in 13 weeks."

Government Properties Trust Inc., a real estate investment trust based in Omaha, Neb., has reported the closing of a $50 million secured revolving corporate credit facility.The entire amount is available for loans over three years based on the combined value of certain collateral properties, and the revolver includes an accordion feature that allows for an expansion up to $225 million under certain conditions, the REIT said. Initial loans will bear interest at the London interbank offered rate plus 120 basis points. The facility was arranged by Wachovia Capital Markets LLC, and replaces a $50 million facility led by First National Bank of Omaha, which is participating in the new facility, the REIT said. The company can be found online at http://www.gptrust.com.

Windrose Medical Properties Trust, Indianapolis, has priced a public offering of 3.0 million common shares of beneficial interest at $14.10 per share.Windrose, a real estate investment trust with additional offices in Nashville, Tenn., said it plans to use the net proceeds (approximately $40.7 million) of the offering to fund part of the purchase price of a previously announced acquisition of a 22-property portfolio in Arizona, California, Georgia, and Florida. Cohen & Steers Capital Advisors LLC and Robert W. Baird & Co. acted as placement agents for the offering. The REIT can be found online at http://www.windrosempt.com.

More than half (52%) of all U.S. homeowners in a recent survey said they were not at all or only somewhat knowledgeable about their mortgage options when they bought their homes, according to Radian Guaranty, Philadelphia.Of the 48% who said they were knowledgeable or very knowledgeable about mortgage options, 55% were homeowners over the age of 55, 54% were divorced, widowed, or separated, and 51% had at least a college education, Radian reported. Homeowners said prospective homebuyers should understand how much of a home they can afford to buy (55% mentioned this as their first or second piece of advice), should research the best mortgage options for their needs (45%), and should get pre-approved for a mortgage before searching for a home (36%). Harris Interactive conducted the survey for Radian Guaranty, a provider of mortgage insurance products and services and a subsidiary of Radian Group Inc. Radian can be fund online at http://www.radian.biz.

Sizeler Property Investors Inc., a New Orleans-based real estate investment trust, has announced that its board has decided to consider various strategic options, including a merger, sale, or plan of liquidation.Sizeler said it will continue its efforts to sell its regional malls. The REIT also announced that Mark M. Tanz has been elected non-executive chairman of the board. He will replace Sidney W. Lassen, who has retired as chairman and chief executive officer of the REIT but will remain a member of the board. Meanwhile, Boston-based First Equity Real Estate Equity and Mortgage, which owns 8.31% of Sizeler's outstanding common stock, said it "strongly supports" the Sizeler board's decision and the appointment of Mr. Tanz. Sizeler can be found online at http://www.sizeler.net.

Bankrate Inc., New York, has announced an agreement to acquire Wescoco LLC (d/b/a FastFind), a San Francisco-based aggregator of Internet leads for mortgages and other financial products, for $10 million in cash.Thomas R. Evans, president and chief executive officer of Bankrate, said the company plans to leverage its Internet traffic to enhance FastFind's lead-generation platform. "The online mortgage industry represents an enormous, emerging, and addressable market," Mr. Evans said. "We believe we are strategically positioned to take advantage of the shift of spending from traditional outlets to the Internet." Bankrate also announced the acquisition of MMIS/Interest.com, a publisher of mortgage guides based in suburban Chicago, for $30 million in cash. Bankrate can be found online at http://www.bankrate.com.

Genworth Financial, the Richmond, Va.-based parent of what was formerly known as GE Capital Mortgage Insurance Co., Raleigh, N.C., has confirmed that General Electric plans to cut its holdings in the company to below 20% by year-end and fully divest itself of Genworth by the end of 2006.This would complete a process started in May 2004, when the Stamford, Conn.-based GE made an initial public offering that sold 30% of Genworth. GE made the announcement in a Nov. 18 news release, saying it was selling most of its Insurance Solutions unit to Swiss Re. "Since GE's ownership of Insurance Solutions and Genworth will go below 20% and consistent with generally accepted accounting principles, GE will report the majority of Insurance earnings as 'discontinued operations' commencing with the fourth quarter 2005," the company said, adding that it would sell all its ownership in Genworth by the end of 2006.

Health Care REIT Inc., Toledo, Ohio, has priced a public offering of 3.0 million shares of common stock that produced net proceeds in excess of $101 million, according to the real estate investment trust.The closing price of the company's stock on Nov. 16 was $35 per share, the REIT said. The sole underwriter of the offering, UBS Investment Bank, has been granted an option to buy up to 450,000 additional shares to cover any overallotments. The company can be found on the Web at http://www.hcreit.com.

Mark A. Casale has been named executive vice president for mortgage insurance at Radian Group Inc., a Philadelphia-based provider of credit risk management products and services.Mr. Casale, 41, will be responsible for the company's mortgage insurance business in the United States. Mr. Casale was most recently Radian's senior vice president for capital markets, and was responsible for developing credit enhancement solutions for nonprime mortgage originators and securities firms. Before joining Radian in 2001, Mr. Casale held several executive positions in Advanta Corp.'s mortgage group. Radian can be found on the Web at http://www.radian.biz.

The nation's largest residential subprime lender, Ameriquest Capital Corp., trimmed its work force by 10% late Thursday, but excluded two divisions from the cuts: wholesaler Argent Mortgage, and its auto finance division.A company spokesman confirmed the layoffs to MortgageWire, but said at this time it is not quantifying the number of positions eliminated. He said Ameriquest's loan servicing and special servicing platforms are not affected and that "we are not leaving geographic markets in which we currently operate." Ameriquest cited rising interest rates and challenging market conditions as reasons for the layoffs. Based in Orange, Calif., the privately held Ameriquest Capital controls Ameriquest Mortgage, Argent, and other mortgage brands. The company is negotiating a $325 million global settlement with 30-plus states regarding allegations that some of its lending practices were abusive. The settlement is not yet final. The company's founder, Roland Arnell, has been nominated to be the next U.S. ambassador to the Netherlands. Mr. Arnell recently stepped down as Ameriquest co-chairman, leaving his wife in charge of the company. Ameriquest can be found online at http://www.ameriquest.com.