Originations

HRPT Properties Trust, Newton, Mass., has priced a follow-on public offering of 10 million common shares of beneficial interest at $13.12 per share.The company said it expects to use the proceeds of the offering to reduce the outstanding amounts on its revolving credit facility. The joint book-running managers for the offering are Merrill Lynch & Co. and Wachovia Securities. HRPT, a real estate investment trust, can be found on the Internet at http://www.hrpreit.com.

General Electric Co., Stamford, Conn., will sell 60 million shares of class A common stock of Genworth Financial, Richmond, Va., in a secondary public offering.In addition, GE will sell 21 million shares to Citigroup Global Markets Inc., New York. In turn, an affiliate of Citigroup intends to publicly offer securities exchangeable for Genworth class A common stock. Overallotment options of 9 million shares and 3.15 million shares have been granted to the underwriters of the secondary offering and to Citigroup, respectively. The global coordinator and bookrunner for the offering is Morgan Stanley, with Bank of America Securities, JP Morgan, and Merrill Lynch as joint lead managers and bookrunners. In the Genworth IPO in May 2004, GE sold 30% of the company to the public. An offering announced in March cut its holdings to 51%, and if this deal is completed, GE will own just 32% of Genworth. The market did not react well to the announcement at first. As of shortly before 1 p.m. Sept. 14, Genworth was trading at $31.16 per share, down $0.62 on the day. But at one point after the deal was announced, Genworth was down to $30.91 per share. Among the lines of business GE spun off to Genworth was the mortgage insurance operation based in Raleigh, N.C.

As Fiserv held its client conference in Las Vegas, the company announced that Fiserv Lending Solutions' CredStar has entered into an alliance with Boston-based PCi Corp. to integrate several of PCi's Wiz systems with WebStar, CredStar's credit services platform.The Brookfield, Wis.-based Fiserv said the combined offering is expected to streamline processes for wholesalers using CredStar with Fiserv's easyLender and UniFi LOS systems. The alliance also promises to reduce steps for brokers submitting loans to lenders using CredStar. The PCi functionality available to CredStar customers includes: geocoding, edit checks, and validation of Home Mortgage Disclosure Act data using FFIEC error-checking logic, flood zone determinations, and identification of high-cost loans before they are funded. The companies can be found on the Web at http://www.fiserv.com and http://www.pciwiz.com.

McCracken Financial Software, Billerica, Mass., has announced the acquisition of the DealCentral origination system from Atlanta-based MortgageRamp for an undisclosed amount.McCracken said DealCentral streamlines the origination process for commercial loan packages. The company said it plans to integrate the software with its Strategy commercial loan servicing system, enabling the transfer of underwriting and asset information into Strategy and eliminating the costs of duplicate data entry. "The commercial finance industry has been asking for a robust, single-vendor solution that can manage the entire loan life cycle," said McCracken president Noel Webster. "Now they have one." OfficeTiger, a New York-based professional support services firm, recently announced an agreement to acquire MortgageRamp, which is slated to become the Global Real Estate Division of OfficeTiger. The companies can be found online at http://www.mccrackenfs.com, http://www.mortgageramp.com, and http://www.officetiger.com.

The Market Composite Index, an overall measure of mortgage applications, fell from 771.6 to 760.6 on a seasonally adjusted basis during the holiday-shortened week ended Sept. 9, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications decreased 12.3% on the week, but were up 26.4% from the level recorded a year earlier. The Purchase Index rose from 499.1 to 513.4 on a seasonally adjusted basis, while the Refinance Index declined from 2357.1 to 2198.7. The four-week moving average for the Purchase Index rose 0.7%, from 489.4 to 492.9, and the comparable average for the Refinance Index fell 0.9%, from 2284.6 to 2286.1. Refinancings represented 42.9% of total applications, down from 44.8% the previous week, while adjustable-rate mortgages accounted for 28.2%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages increased from 5.64% to 5.72%, and points (including the origination fee) increased from 1.13 to 1.18 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mortgagebankers.org.

Wachovia Corp., Charlotte, N.C., and AmNet Mortgage Inc., San Diego, have signed a definitive agreement under which Wachovia will acquire AmNet, the parent company of American Mortgage Network, for approximately $83 million ($10.30 per share) in cash.AmNet's board, with the unanimous recommendation of a special committee of independent directors, has approved the proposed merger and agreed to recommend that the company's stockholders approve it, the companies announced. "This merger gives our stockholders the ability to maximize the value of our mortgage banking business, which has been created over the last four years," said John M. Robbins, AmNet's co-founder, chairman, and chief executive officer. (Mr. Robbins is vice chairman of the Mortgage Bankers Association.) AmNet has a nationwide branch network that serves over 7,000 mortgage brokers and funded $9 billion in residential mortgage loans in 2004, according to the company. AmNet will remain headquartered in San Diego and will operate as a wholly owned subsidiary of Wachovia Bank NA after the merger. Wachovia will also continue to originate residential mortgages and home equity lines of credit through Wachovia Mortgage Corp. The companies can be found online at http://www.wachovia.com and http://www.amnetmortgage.com.

Windrose Medical Properties Trust will replace Catellus Development Corp. in the S&P REIT Composite Index after the close of trading Sept. 14, Standard & Poor's has announced.S&P said the reason for the change is that Catellus is being acquired by ProLogis, another constituent of the index. Windrose is an Indianapolis-based real estate investment trust that focuses on specialty medical properties.

New Plan Excel Realty Trust, New York, has priced a public offering of $250 million of senior unsecured notes.The offering includes $125 million of 5.125% seven-year fixed-rate notes, priced at 99.919 to yield 5.139%, and $125 million of 5.25% 10-year fixed-rate notes, priced at 99.372 to yield 5.332%, New Plan reported. The net proceeds from the offering will be used to redeem all $250 million of the company's outstanding 5.875% senior unsecured notes, the real estate investment trust said. J.P. Morgan Securities Inc., UBS Securities LLC, and Wachovia Capital Markets LLC were the joint bookrunners for the offering. The shopping center REIT can be found on the Web at http://www.newplanexcel.com.

Reducing capital requirements under Basel II may spur more securitization of mortgage and credit card loans among banks, according to a new report from Fitch Ratings.The report, "Basel II: The 'Bottom-line' Impact on Securitization Markets," explores the quantitative effect of Basel II capital charges on various structured transactions. Fitch concluded that banks could face lower capital charges by investing in rated securitization deals rather than by directly holding a comparable pool of unsecuritized assets, especially for credit card asset-backed securities, commercial mortgage-backed securities, and residential MBS. The rating agency also said Basel II could influence the structure of securitizations. "Banks will face strong pressures under Basel II to minimize their exposure to sub-investment-grade tranches, given the significant amount of regulatory capital they will have to hold against these positions," said Krishnan Ramadurai, a Fitch senior director for financial institutions.

Real estate "flippers" -- those who buy residential properties and resell them within 24 months -- have often obtained returns greater than 100% per year in three of the nation's hottest real estate markets, according to First American Real Estate Solutions, Anaheim, Calif.The company's study of real estate flipping in Las Vegas, Miami, and Orange County, Calif., from 1999 through June 2005 found that flippers have often far exceeded the average annual appreciations of 20%-30% in the nation's strongest real estate markets. "During the past six years, flippers have exercised a level of strategic intelligence and savvy in their investments that proved to be even more profitable than the strong gains experienced by the general market," said Christopher Cagan, director of research and analytics at First American RES and the author of the report. The study also found that the especially profitable "sweet spot" between purchase and resale is from three to six months after purchase. A copy of the study, "Real Estate Flipping: Gold Mine, Mistake or Fraud," can be found online at http://www.firstamres.com.

A federal court in Delaware has denied $88 million in claims by Chase Manhattan Mortgage, Iselin, N.J., that it was deceived by Advanta Corp. when it bought the credit card company's residential subprime division four years ago.However, the court ruled in Chase's favor in regard to one specific contract claim, which means that Advanta must pay Chase $17.5 million plus interest. A post-trial "findings of fact" document issued by the court states that Advanta made "several misstatements or omissions of fact in its dealings with Chase…" In a separate issue involving claims and counterclaims tied to the $1 billion purchase, Chase agreed to pay Advanta, of Spring House, Pa., $8.75 million. It appears that Advanta's exposure on the case -- excluding legal costs -- totals $8.75 million. Advanta officials could not be reached for comment as of MortgageWire's deadline.

Rebuilding in the aftermath of Hurricane Katrina will push up single-family housing starts by 130,000 in 2006, but it will not be enough to top this year's construction activity, according to the National Association of Realtors.The NAR is forecasting that 2005 single-family starts will hit 1.69 million -- the highest level in 25 years. However, housing starts should decline 5.3% to 1.60 million in 2006, and new-home sales will fall 2% from a record pace in 2005, the forecast says. NAR economists attribute the slowdown to higher mortgage rates and a large inventory of unsold newly constructed homes. They expect the 30-year mortgage rate to rise from 5.9% in the fourth quarter to 6.7% in the fourth quarter of 2006 thanks to robust economic growth next year. The NAR's updated forecast also indicates that existing-home sales will hit a record 7.02 million by year-end, followed by a 3% decline in 2006. House price appreciation on existing homes is projected to slow from 10.8% in 2005 to 5.2% next year. But there will be upward pressure on new-home prices due to shortages of building materials, and the NAR expects prices to jump 6.2% in 2006, compared with a 3.8% increase this year. "Given the general tight inventory of homes available for sale across the country, rebuilding in the region of the Gulf Coast will place additional pressure on overall home prices," NAR chief economist David Lereah said.

Vornado Realty Trust, Paramus, N.J., has announced the sale of $100 million of 6.75% series D-14 cumulative redeemable preferred units in a private placement.The units, which were sold to an institutional investor, may be called without penalty at the option of the issuer beginning in September 2010. The equity REIT can be found on the Web at http://www.vno.com.

Subprime wholesaling giant Argent Mortgage has voluntarily agreed to a cease-and-desist order with the Georgia Department of Banking and Finance regarding its relationship with loan brokers.In a C&D signed last week, Argent was ordered by the department to ensure that loan brokers it conducts business with have a valid license and to adopt "best practices" on fraud prevention and detection. The Orange, Calif.-based company, an affiliate of Ameriquest Mortgage, was also ordered to report suspected broker fraud to the state and to develop policies and procedures that will ensure compliance with state banking laws. Argent, one of the largest subprime wholesale lenders in the United States, would not comment on the specifics of the case but stressed that its license to lend in Georgia has not been revoked or suspended. As of MortgageWire's deadline, Georgia banking department officials could not be reached for comment.

Gramercy Capital Corp., a New York-based investor in commercial mortgage-related loans and securities, has priced a public offering of 2.5 million shares of common stock for net proceeds of approximately $64 million.The company also reported that it is selling 833,333 shares to its affiliate SL Green Realty Corp. for net proceeds of about $21.5 million. Wachovia Securities was the sole book-running manager for the public offering, and was granted an option to buy up to 375,000 additional shares to cover any overallotments. Gramercy Capital can be found online at http://www.gramercycapitalcorp.com.

Class M of GMAC Commercial Mortgage Securities Inc.'s mortgage pass-through certificates, series 2000-C1, has been downgraded from CC to C by Fitch Ratings.Fitch also upgraded five classes from the transaction and affirmed the ratings on eight other classes. The downgrade was attributed to expected losses on several specially serviced loans that would hurt credit enhancement levels. Three assets representing 3.2% of the pool are in special servicing and real estate owned, and losses are expected on two of them, the rating agency reported. Additionally, one loan has been transferred into special servicing since the August distribution date. Fitch can be found online at http://www.fitchratings.com.

Housing affordability in California stood at 16% in July, unchanged from the level recorded in June but down from 19% a year earlier, according to the California Association of Realtors.The Housing Affordability Index indicates the percentage of households that can afford to buy a median-priced home in California, which cost $540,900 in July. The minimum household income needed to buy a median-priced home was $125,670, up from $109,170 a year earlier, CAR said. (The figures are based on an average effective mortgage rate of 5.73%, assuming a 20% downpayment.) CAR can be found on the Web at http://www.car.org.

Homeowners in the Southwest and the Southeast are much more likely to refinance with subprime loans than those in the Pacific and New England regions, according to a new study by the Consumer Federation of America."The variation in prevalence of high-cost mortgages by geography raises concerns about whether this type of lending is priced solely on risk factors, or whether some lenders take advantage of the lack of competition in certain localities to price mortgages as high as they can," said Allen Fishbein, the CFA's director of credit and housing policy. According to the study, "Subprime Cities: Patterns of Geographic Disparity in Subprime Lending," the share of subprime refinance lending ranges from 10.5% in the Pacific states to 27.4% in the Southwest. Moreover, regional variation was even higher for what the CFA termed the most expensive segments of subprime lending (with interest rates generally above 10%), with only 2.3% of Pacific state homeowners receiving such loans compared with 10.3% of Southwestern homeowners. The loan information was obtained from lenders who had compiled the data for reports they must file under the Home Mortgage Disclosure Act. The CFA can be found online at http://www.consumerfed.org.

The Consumer Bankers Association, having moved its annual Home Equity Lending Conference from New Orleans to Phoenix Sept. 18-21, has announced that it will contribute $50,000 to hurricane relief efforts.The Arlington, Va.-based CBA will contribute $100 for each conference registration to Red Cross relief efforts, as well as accept donations on-site. "We send our wishes for a speedy recovery by this great city," said CBA president Joe Belew. "CBA banks and in fact all banks in the region have done a heroic job in helping victims, whether in making cash available or working on loan flexibility." The conference, originally scheduled for the New Orleans Sheraton, has been moved to the JW Marriott Desert Ridge Resort and Spa in Phoenix. Registrations were transferred by the CBA to the new hotel and notices were sent to attendees.

LandAmerica Financial Group Inc., Richmond, Va., has reported an agreement with the Arizona Department of Insurance under which it will resolve disagreements over captive reinsurance transactions by voluntarily contributing $1 million to relief efforts related to Hurricane Katrina.LandAmerica said the "discussions over the propriety and legality" of such arrangements had been resolved "cooperatively and creatively" because the department agreed that no Arizona consumer had paid more for title insurance under captive reinsurance transactions. "We especially appreciate the willingness of the Arizona DOI to seek a creative resolution to our discussions and are grateful for this novel approach in a time of crisis for so many," said Theodore L. Chandler Jr., LandMark's president and chief executive officer. The $1 million will be given to Arizona chapters of the American Red Cross to benefit Arizona citizens and the hurricane victims recently evacuated to Arizona.