Originations

Antonio F. Faria, a former commissioner of financial institutions in Puerto Rico, has been named chief executive officer of Doral Bank, a subsidiary of residential mortgage lender Doral Financial Corp., San Juan, Puerto Rico, which recently announced a management shake-up.Mr. Faria joined Doral in June as president of Doral Money Inc., a New York-based subsidiary of Doral Bank, Doral said. He was previously president of the Government Development Bank and president of the Economic Development Bank, as well as Puerto Rico's commissioner of financial institutions. Doral Financial recently announced the termination of its chief financial officer and the resignation of several senior executives in connection with the company's financial restatement process. Zoila Levis, the company's president, chief operating officer, and recently named vice chairman, said Doral Financial has "significant plans" for Doral Bank, citing "outstanding cross-selling opportunities" with its mortgage lending subsidiaries, among other things.

Six classes from two Structured Asset Securities Corp. residential mortgage-backed certificate transactions have been downgraded by Fitch Ratings.The downgrades were as follows: series 2002-HF2, class M3, from BBB to BBB-minus, and classes B1 and B2, from BBB-minus to BB; and series 2003-BC2, class M4, from BBB-plus to BBB, class B1, from BBB-minus to BB, and class B2, from BB-plus to B. In addition, Fitch has affirmed the ratings on 12 classes in the two deals. The downgrades were attributed to concerns about the adequacy of credit enhancement in light of declining collateral performance. Fitch said remittance information for SASCO 2002-HF2 indicates that as of July 25, excess spread had not been sufficient to cover losses for the previous three months. The mortgage pool consists primarily of first-lien subprime loans. For SASCO 2003-BC2, comparable remittance information indicates that excess spread had not been sufficient to cover losses for the previous five months, the rating agency said. The mortgage pool consists primarily of subprime first- and second-lien loans. Fitch can be found online at http://www.fitchratings.com.

The average 30-year fixed mortgage rate fell from 5.80% to 5.77% over the seven-day period ended Aug. 25, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate decreased from 5.40% to 5.35%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages fell from 5.34% to 5.30%, and the average rate for one-year Treasury-indexed ARMs declined from 4.58% to 4.56%. Fees and points averaged 0.5 of a point for 30-year fixed-rate mortgages, 0.6 of a point for 15-year FRMs and hybrid ARMs, and 0.7 of a point for one-year ARMs. "New-home sales hit a record in July, while existing-home sales were at the third-highest level they have ever been," said Frank Nothaft, Freddie Mac's chief economist. "There is no doubt that low mortgage rates have been the driver of this phenomenal housing market." A year ago, the average 30-year and 15-year fixed rates were 5.82% and 5.21%, respectively, and the average one-year ARM rate was 4.05%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.

Vornado Realty Trust, Paramus, N.J., has announced the pricing of a public offering of 7 million shares of perpetual 6.625% series I cumulative redeemable preferred stock at $25 per share.The joint book-running managers for the offering are Morgan Stanley, UBS Investment Bank, and Merrill Lynch & Co. Vornado, a real estate investment trust, said it has granted the underwriters an option to buy up to 1.05 million additional preferred shares to cover any overallotments. The REIT can be found on the Web at http://www.vno.com.

Sales of existing single-family homes in Florida totaled 21,669 in July, down 8% from the level recorded a year earlier, but median prices were up significantly, according to the Florida Association of Realtors.The median sales price of homes sold in July climbed to $252,300, up 33% from $190,300 in July 2004, FAR said. Among the state's larger markets, resales increased 7% in the Jacksonville Metropolitan Statistical Area and 1% in the Tampa-St. Petersburg-Clearwater MSA, while the Fort Lauderdale and Sarasota-Bradenton MSAs led the declines at 28%, FAR reported.

The Market Composite Index, an overall measure of mortgage applications, fell from 761.3 to 756.2 on a seasonally adjusted basis during the week ended Aug. 19, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications decreased 1.8% on the week, but were up 17.2% from the level recorded a year earlier. The Purchase Index fell from 499.3 to 488.4 on a seasonally adjusted basis, while the Refinance Index climbed from 2285.5 to 2313.9. The four-week moving average for the Purchase Index rose 0.2%, from 494.4 to 495.3, and the comparable average for the Refinance Index fell 0.1%, from 2258.2 to 2256.6. Refinancings represented 43.7% of total applications, up from 42.4% the previous week, while adjustable-rate mortgages accounted for 28.1%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages decreased from 5.79% to 5.78%, and points (including the origination fee) decreased from 1.22 to 1.20 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mortgagebankers.org.

New single-family home sales jumped 6.5% to a monthly record in July as demand for housing continued to defy gravity and the expectations of a slowdown.The U.S. Census Bureau reported that new-home sales rose from a seasonally adjusted annual rate of 1.32 million units in June to a record 1.41 million rate in July. New-home sales were already headed for another record year, and the July figures, which outpace July 2004 sales by 17%, will force economists to revise their estimates upward. The Census Bureau report also shows that the inventory of unsold new homes edged down to a four-month supply. Sales jumped 36% in the West in July and 10.1% in the Northeast. Sales fell 13.5% in the Midwest and 3.5% in the South.

Glimcher Realty Trust, Columbus, Ohio, has closed a three-year, $300 million unsecured credit facility.The initial interest rate on the amended facility is 1.15% over the London interbank offered rate, but the rate can range from 1.05% to 1.55% over LIBOR depending on the company's ratio of debt to total asset value. "When factoring in the improved LIBOR spread and the change in the annual facility fee, we would initially expect our all-in pricing to improve around 20 basis points under the amended facility," said Mark E. Yale Sr., vice president and chief financial officer of Glimcher. The sole lead arranger and administrative agent is KeyBank NA, and nine other banks are participants in the facility. Glimcher, a real estate investment trust specializing in the ownership, management, and development of malls, can be found on the Web at http://www.glimcher.com.

Builder and mortgage originator Beazer Homes USA Inc., Atlanta, has announced the closing of a new $750 million credit facility that replaces a $550 million facility.The facility, which matures in August 2009, has an accordion feature under which the total commitment may be increased to $1 billion subject to the availability of additional commitments, Beazer said. J.P. Morgan Securities Inc. was the lead arranger and sole bookrunner for the facility, in which 10 other banks are participants. Beazer, which also provides title and insurance services, can be found on the Web at http://www.beazer.com.

The Praedium Group, a New York-based real estate investor, has attracted $700 million in private equity investments for its latest real estate fund.The money, together with the use of additional debt funding, will be used to acquire over $2 billion in real estate assets, the company said. The Praedium Fund VI is looking to invest in "mid-cap assets" in the United States and Canada in the $10 million to $70 million range, targeting multifamily, office, retail, and industrial properties. "We are seeking assets that can be enhanced through focused or creative leasing, management or repositioning," said Russell Appel, president of The Praedium Group. Besides Mr. Appel, the fund's principals are Floyd Lattin, Frank Patafio, and Christopher Hughes.

In the wake of a management shake-up at Doral Financial Corp., Zacks.com has assigned the mortgage lender a #5 (Strong Sell) rank, while Fitch Ratings has affirmed the company's ratings and maintained its status on Rating Watch Negative.Zacks, the online component of Zacks Investment Research, Chicago, said Doral "continues to incite pessimism among analysts" and noted the announced departure of its chief executive officer. In addition, Zacks said the consensus annual earnings forecast for the San Juan, Puerto Rico-based Doral has been reduced by seven cents over the past week, to $1.74 per share, compared with a forecast of $2.17 per share three months ago. Meanwhile, Fitch noted the connection between the announced "resignations and terminations" at Doral and the company's financial restatement process. "The most important factor in Fitch's decision to affirm the company's ratings at this time is the comfort that the named replacements for the three management positions have the ability and knowledge to lead Doral through the restatement process and beyond," the rating agency said. Zacks can be found online at http://www.zacks.com, and Fitch can be found at http://www.fitchratings.com.

Existing-home sales slipped 2.6% in July but remained above a 7.1 million-unit sales pace for the fourth consecutive month.The National Association of Realtors reported that resales of single-family homes, condominiums, and cooperatives fell from a record seasonally adjusted annual rate of 7.35 million units in June to a 7.16 million rate in July. Meanwhile, house prices in July were 14.1% higher than they were a year earlier, and the four-and-a-half year housing boom is spreading geographically. "In examining the hottest markets for home price appreciation, we see a rolling boom moving from one metro area to another over time, as well as a spillover effect into nearby areas with lower home prices," NAR chief economist David Lereah said. Resales of single-family homes slipped 2.3% in July to a 6.24 million seasonally adjusted annual rate. The median single-family home price was $217,900 in July, up 14.6% from a year ago.

LaSalle Hotel Properties, Bethesda, Md., has announced a public offering of $75 million of series D cumulative redeemable preferred shares.The shares have a fixed distribution rate of 7.50% per year. Raymond James & Associates was the lead underwriter of the offering. The underwriters were granted an option to buy up to 300,000 additional shares to cover any overallotments. LaSalle, a real estate investment trust, can be found online at http://www.lasallehotels.com.

Edward L. Hurley, managing director and head of agency lending for Charlotte, N.C.-based Wachovia Securities, has been named chair of the Mortgage Bankers Association Commercial Real Estate/Multifamily Finance Board of Governors for 2006.Mr. Hurley, who has 24 years of commercial banking and real estate finance experience, replaces Kieran Quinn, president and chief executive officer of Atlanta-based Column Financial. An MBA spokeswoman told MortgageWire that Mr. Quinn resigned as COMBOG chair because he is also vice chair-elect of the MBA's board of directors. As previously reported, Edward Padilla, chief executive officer of Minnesota-based NorthMarq Capital, will be a vice chair for 2006. The other vice chair will be Stacey M. Berger, executive vice president of Midland Loan Services/PNC Real Estate Finance, Overland Park, Kan. The new leadership becomes effective in October. The 30-member COMBOG, representing the commercial/multifamily real estate finance industry, works on the strategic development of commercial/multifamily policy, industry technology, and best practices and standards. The MBA can be found online at http://www.mortgagebankers.org.

The National Association of Realtors and the Center for Responsible Lending have issued a brochure warning consumers about the potential pitfalls of certain types of specialty mortgages.The publication, "Shopping for a Mortgage? Do Your Homework First," informs homebuyers that monthly payments on some specialty mortgages can increase more than 50% when the introductory period ends. The brochure helps consumers understand conventional fixed-rate and adjustable-rate mortgages as well as "more exotic" loan programs such as interest-only mortgages, 40-year fixed-rate mortgages, negative amortization mortgages, and option payment ARMs, the organizations said. "We're warning homebuyers to approach these new mortgages carefully," said Mike Calhoun, general counsel of the Center for Responsible Lending. "They should be cautious about accepting a mortgage they can't afford. These mortgages can be devastating for families who are stretching their budget to buy a home." The organizations can be found online at http://www.realtor.org and http://www.responsiblelending.org.

Thrift institutions posted record profits in the second quarter as single-family originations jumped 20% from those of the prior quarter to $169.4 billion, according to the Office of Thrift Supervision.Lower mortgage rates increased loan demand, the OTS said. However, the percentage of adjustable-rate mortgages fell to 42% of loan production from 50% in the first quarter. And refinancings declined to 30% of loan production from 37% in the prior quarter. The OTS said its examiners are closely monitoring newer types of loans, such as interest-only ARMs, as well as home equity lines of credit. But troubled loans at thrifts are at a record low. Meanwhile, thrifts reported record earnings for the third consecutive quarter even though the value of mortgage servicing assets declined by $112.6 million in the second quarter. Earnings totaled $4.03 billion, up 1% from those of the first quarter and up 20% from those of the second quarter of 2004.

Fannie Mae chief economist David Berson is forecasting record home sales this year, with house prices rising at an annual rate of 10%, down from 12% in 2004."We now project an increase of nearly 4% in total homes to an all-time high of 8.29 million units (comprised of 7.03 million existing units, including sales of condominiums and co-ops, and 1.27 million new units)," Mr. Berson says in his August commentary on the mortgage market. "This assumes that there will be a small fall off in activity later this year, presumably as investor activity begins to cool and as mortgage rates continue to edge up." But so far, there are no signs of a slowdown, he admits. And even with the Federal Reserve pushing up short-term rates, Fannie's chief economist says he expects the interest rate on the 30-year fixed-rate mortgage to be 5.83% at year-end and only 5.88% at the end of 2006. Nevertheless, he is forecasting a 9% drop in total home sales next year to 7.57 million units and a slowdown in price increases. "House price gains should slow to the 3%-4% range, although there is a risk of a larger slowdown given the increased use of riskier mortgage products in recent years and the sharp jump in investor buying -- especially in certain metro areas." Fannie Mae can be found online at http://www.fanniemae.com.

National City Mortgage, Cleveland, has announced plans to position its wholesale division for long-term growth by merging some wholesale branches and originating all mortgages under the National City brand name.The company said the mergers of yet-to-be-identified branches will be aimed at creating more full-service locations with enhanced infrastructure and expanded management, sales, and operations staffs. By the first quarter of 2006, National City's wholesale distribution channels -- which include AccuBanc Mortgage and Commonwealth United Mortgage as well as National City Mortgage -- will all originate mortgages under the National City name. "This strategy will strengthen our brand presence, clarify geographic relationships, and allow us to grow the wholesale mortgage business under one instantly recognizable name," said Buck Bibb, chief executive officer of National City Mortgage. The company said its correspondent lending channel will not be affected by the wholesale initiative. National City Mortgage can be found online at http://www.nationalcitymortgage.com.

The National Affordable Housing Management Association, Alexandria, Va., has launched the "Specialist in Housing Credit Management" certification program for managers of properties developed and operated under the Low Income Housing Tax Credit program.SHCM-certified individuals will be listed in the NAHMA's online directory and will receive free access to its LIHTC website. To qualify, applicants must have a minimum two years of housing credit management experience, complete at least 12 hours of coursework or training by an NAHMA-approved provider, sit for the SHCM exam, and submit a $150 application fee. "To maximize their careers, managers in the affordable housing industry must be able to demonstrate their experience and expertise in mastering the complex requirements of the LIHTC program to their peers, employers, residents, regulators, and the general public," said NAHMA president Jim McGrath.

SBM Financial Group, Bethesda, Md., has announced that its mortgage division, Atlantic Capital Funding Corp., has been renamed SBM Mortgage Corp.SBM said the name change is the final step in a rebranding process aimed at combining all its products, services, and business lines under the SBM corporate identity. As part of the rebranding, the company has launched a new website, SBMHomeLoans.com. SBM Mortgage is a full-service mortgage broker that originates residential and commercial mortgages in Maryland, Virginia, and the District of Columbia. SBM Financial and its mortgage division can be found online at http://www.sbmfinancial.com and http://www.sbmhomeloans.com.