Originations

The average 30-year fixed mortgage rate fell to 5.91% for the seven-day period ending April 14 from 5.93% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate decreased from 5.48% to 5.46%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages declined from 5.33% to 5.31%, and the average rate for one-year Treasury-indexed ARMs rose from 4.23% to 4.30%. Fees and points averaged 0.7 of a point for fixed-rate mortgages and hybrid ARMs, and 0.6 of a point for one-year ARMs. "Given the current economy, mortgage rates can only rise so much in a short period of time," said Frank Nothaft, Freddie Mac's chief economist. "And the recent release of the minutes of the [Federal Open Market Committee] meeting muted market chatter about inflation, allowing rates to slip a little further this week." A year ago, the average 30-year and 15-year fixed rates were 5.89% and 5.23%, respectively, and the average one-year ARM rate was 3.69%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.

Class E of GMAC Commercial Mortgage Securities Inc. variable-rate mortgage pass-through certificates, series 2000-FL-A, has been downgraded from Aaa to Aa1 by Moody's Investors Service and placed on review for further possible downgrade.Class E is insured by American International Specialty Lines Insurance Co., whose insurance financial strength rating was recently downgraded by Moody's from Aaa to Aa1. The rating action followed AIG's announcement on March 30 that it would delay the filing of its 2004 Form 10-K with the Securities and Exchange Commission in order to complete an extensive financial review. In placing the class E rating on review for possible further downgrade, Moody's cited continuing uncertainty about AIG concerning the scope of regulatory investigations, internal reviews, and financial restatements or adjustments. The rating agency can be found online at http://www.moodys.com.

Median home price appreciation will slow this year but remain above the historic norm, registering at about 6.3% for existing homes and 5.6% for new homes, according to the National Association of Realtors.In the association's April real estate outlook, NAR chief economist David Lereah forecasts resales of 6.62 million on the year, down 2.4% from last year's record 6.78 million, and new-home sales of 1.14 million, down 5.0% from last year's record 1.20 million. In both cases, the totals would be the second-highest on record. "The simple fact is, we still have more buyers than sellers in most of the country," Mr. Lereah said. "This supply-demand imbalance is continuing to put pressure on home prices, but we should get closer to equilibrium by the end of the year." The NAR economist said the 30-year fixed mortgage rate should rise gradually, reaching 6.8% in the fourth quarter. The NAR can be found on the Internet at http://realtor.org.

Lender Lead Banc, New York, whose Senior Lending Network links seniors with reverse mortgage lenders, has changed its name to Lender Lead Solutions.Lenders have told the company it needs to go beyond providing leads and give lenders training, online marketing, and support, said chief executive David Peskin. The company is now offering what it calls a total package of solutions, starting with a Needs Based Selling clinic it began offering on March 1. Mr. Peskin said the company's new half-hour sales training program "is making a huge impact on loan conversion." Mr. Peskin conducts the presentation himself.

Ventas Inc., a Louisville, Ky.-based real estate investment trust, has entered into a merger agreement to acquire Provident Senior Living Trust in a transaction valued at $1.2 billion.Provident shareholders are to receive 0.4951 of a common share of Ventas and $7.81 in cash for each Provident common share, the health care REIT said. Provident, a senior-living private REIT, owns 68 independent and assisted-living properties in 19 states with about 6,819 units, according to Ventas. Debra A. Cafaro, president and chief executive of Ventas, said the transaction expands the Ventas portfolio and "substantially advances our strategic goals of increasing our private-pay revenue sources and increasing our tenant diversification." Ventas said it expects to fund the $231 million cash portion of the purchase price by drawing on its revolving credit facility and also by issuing debt. The mortgage debt encumbering the Provident properties will be assumed by Ventas.

The Market Composite Index, an overall measure of mortgage applications, rose from 644.5 to 683.6 on a seasonally adjusted basis during the week ended April 8, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications rose 6.2% on the week but were down 12.1% from their level a year earlier. The Purchase Index rose from 446.0 to 474.5 on a seasonally adjusted basis, while the Refinance Index climbed from 1798.8 to 1899.6. Refinancings represented 38.1% of total applications, down from 38.3% the previous week, while adjustable-rate mortgages accounted for 35.8%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages rose from 5.91% to 5.95%, and points (including the origination fee) increased from 1.26 to 1.36 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mortgagebankers.org.

MBNA Corp., a credit card lender based in Wilmington, Del., has announced an agreement to acquire Nexstar Financial Corp., a provider of mortgage outsourcing services based in St. Charles, Mo.The terms of the agreement were not disclosed. Under the agreement, MBNA will acquire all of Nexstar's assets, including its proprietary home loan origination and processing platform. Nexstar's management and all its existing employees will join MBNA, and all Nexstar's facilities will remain in operation, the credit card lender said. "By integrating the Nexstar platform with our existing operations, MBNA will provide private-label and co-branded home equity loans through our many affinity group partners, further broadening our relationships with these groups," said Richard K. Struthers, an MBNA vice chairman. The credit card lender can be found on the Web at http://www.mbna.com.

Two classes of Credit Suisse First Boston Mortgage Securities Corp.'s commercial mortgage pass-through certificates, series 1999-C1, have been downgraded by Fitch Ratings.Class J was downgraded from BB-minus to B-plus, and class K was downgraded from B to B-minus and removed from Rating Watch Negative. In addition, Fitch affirmed the ratings on 10 other classes in the transaction. The downgrades were attributed to expected losses on six specially serviced loans.

Fairway Independent Mortgage Corp., Sun Prairie, Wis., has expanded into New England, opening a branch in the Boston suburb of Brookline, Mass.Amy Tierce is joining the company as president of Fairway New England Mortgage. Ms. Tierce is a top producer in the industry, with nearly $100 million in volume in 2003, and is also well-known as a motivational speaker. Running the office with Ms. Tierce is vice president Deana Auman, who has 12 years of experience on the operational side of the mortgage business, Fairway said. The new office will have a five-state territory: Massachusetts, Maine, Connecticut, Rhode Island, and New Hampshire. Fairway Independent has 90 branches nationwide.

CharterMac, New York, has revised its 2004 financial statements in a way that boosts reported earnings for the fourth quarter and for the year overall.Net income for the year totaled $65.4 million ($1.19 per share), versus the previously reported $62.0 million ($1.12 per share), the company said. For the fourth quarter, the revised net income totaled $19.8 million ($0.34 per share), compared with the previously reported $17.1 million ($0.29 per share). The company said the revisions (prompted by the discovery of accounting errors) had no effect on its operations, cash flows, or cash available for distribution. CharterMac, which provides financial services for the multifamily sector, can be found online at http://www.chartermac.com.

Countrywide Home Loans Inc., Calabasas, Calif., has announced its selection by Hudson United Bank to provide mortgage origination services to the bank, which operates 204 branches in four Northeastern states.Countrywide said it will provide personalized financing options for the bank's customers from "an extensive menu" of products and services. The company's dedicated Fulfillment Services Division offers mortgage origination services to banks, credit unions, and other institutions nationwide. Hudson United's branches are located in Connecticut, New Jersey, New York, and Pennsylvania. Countrywide can be found online at http://www.countrywide.com.

Two classes of GE Capital Commercial Mortgage Corp. commercial mortgage pass-through certificates, series 2000-1, have been downgraded by Moody's Investors Service.Class L was downgraded from B2 to B3, and class M was downgraded from B3 to Caa1. The rating agency also upgraded three classes and affirmed the ratings on 11 other classes in the deal. Moody's attributed the downgrades chiefly to realized and projected losses from specially serviced loans, and dispersion of loan-to-value ratios. The certificates are collateralized by 150 commercial and multifamily mortgages.

Sixteen certificates from six deals issued by Long Beach Mortgage Co. in 2000 and 2001 have been downgraded by Moody's Investors Service.The downgrades of asset backed certificates issued by Long Beach Home Mortgage Loan Trust were as follows: series 2000-1, class M-1, from Aa2 to A2; class M-2, from Baa3 to B1, and class M-3, from B2 to Caa2; series 2001-1, class M-1, from Aa2 to A1, class M-2, from Baa2 to Ba3, and class M-3, from B1 to Caa1; series 2001-2, class M-1, from Aa2 to A1, class M-2, from Baa2 to B1, and class M-3, from B2 to Ca; series 2001-3, class M-2, from Baa2 to Ba3, and class M-3, from B1 to Caa3; and series 2001-4, class M-3, from Ba3 to Caa1. In the sixth deal, issued by Asset Backed Securities Corp., Long Beach Home Equity Loan Trust 2000-LB1, class M1F was downgraded from Aa2 to A3, class M2F from Ba1 to B3, class BF from Ca to C, and class BV from Baa3 to B3. The downgrades were attributed to credit enhancement levels that may be low given the projected losses on the underlying pools, Moody's said. The deals are backed primarily by first-lien adjustable- and fixed-rate subprime mortgage loans originated by Long Beach.

The National Association of Mortgage Brokers is touting the findings of recent academic research on the price advantages of working with mortgage brokers.The research, presented at an April 7 Federal Reserve Board conference by Dr. Gregory Elliehausen of Georgetown University, found that the average borrower obtaining a subprime mortgage loan from a broker has a lower annual percentage rate than the average borrower obtaining a similar loan from a mortgage lender, the NAMB reported. According to the association, the research supports the hypothesis that "through competition, brokers tend to pass their origination cost advantages to the consumer." Dr. Elliehausen is with Georgetown University's Credit Research Center. The association can be found online at http://www.namb.org.

The ratings of General Growth Properties Inc., a Chicago-based real estate investment trust, and its subsidiary Price Development Co. LP have been downgraded by Fitch Ratings and removed from Rating Watch Negative.The downgrades were as follows: GGP, senior unsecured issuer, from BB-plus to BB, and preferred stock shelf, from BB to B-plus; and Price Development, senior unsecured debt, from BBB-minus to BB-plus. The downgrades were attributed chiefly to "the company's aggressive capitalization and unencumbered asset strategy" after its acquisition of The Rouse Co., Columbia, Md. GGP's leverage increased to 81.69% at the end of 2004 from its historical range of 55%-65%, the rating agency said. Fitch can be found online at http://www.fitchratings.com.

Stewart Mortgage Information, Houston, has announced the development of origination and post-closing products and services designed to help mortgage brokers make the transition to mortgage bankers.SMI and its affiliates provide title, closing, and funding fulfillment services, electronic mortgage documents, and post-closing collateral management, the company said. "SMI has designed a one-stop, custom service and product bundling that provides exactly what a broker needs to transition to a mortgage banker," said Kevin Gugenheim, SMI's president and chief operating officer. ".... We know there are many mortgage brokers out there who want to operate as mortgage bankers and gain more control of their business. However, many of them lack the personnel and expertise to handle the required additional administrative workload necessary to gain access to a warehouse line." The company can be found online at http://smi.stewart.com.

The average 30-year fixed mortgage rate fell to 5.93% for the seven-day period ending April 7 from 6.04% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate decreased from 5.58% to 5.48%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages declined from 5.43% to 5.33%, and the average rate for one-year Treasury-indexed ARMs fell from 4.24% to 4.23%. Fees and points averaged 0.7 of a point for all four mortgage categories. "Mortgage rates slipped this week on news that job creation in March came out much lower than had been expected," said Frank Nothaft, Freddie Mac's chief economist. "This would indicate there is less money being spent and, therefore, less inflationary pressure on the economy." A year ago, the average 30-year and 15-year fixed rates were 5.79% and 5.12%, respectively, and the average one-year ARM rate was 3.65%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.

Fannie Mae has announced that it is collaborating with the Hispanic Heritage Foundation and the Hispanic College Fund to jump-start Fannie's "American Dream Team" program to help place 50 minority college students in summer internships at mortgage lending companies.Fannie Mae said HHF and HCF are implementing Fannie's ADT program through their "Latinos on Fast Track" initiative to identify young Hispanics who will complete a week-long basic mortgage industry training in Washington. The training will brief the students about the marketplace and "the importance of outreach in driving minority homeownership," Fannie Mae said. The 25 Hispanic students selected through LOFT will then start their internships in the offices of several Fannie partners who serve Hispanic borrowers in 22 cities across the country, beginning May 31. The ADT program is part of a long-term effort to increase the number of Hispanic and African-American mortgage professionals who serve their community. Fannie Mae can be found online at http://www.fanniemae.com.

Stuart D. Marvin has been named executive vice president in charge of finance, capital markets, and corporate communications at Accredited Home Lenders Holding Co., a nonprime residential mortgage lender based in San Diego.The company said Mr. Marvin will assume many of the responsibilities now held by Accredited's EVP and secretary Ray W. McKewon, the company's co-founder, who has announced that he intends to retire in July. Mr. Marvin was most recently president for corporate operations and chief financial officer with Aegis Mortgage Corp. in Houston. He was previously CFO at Citifinancial Mortgage. Prior to his entry into the mortgage industry, Mr. Marvin was business assurance partner with the Coopers & Lybrand public accounting firm. Accredited can be found on the Web at http://www.accredhome.com.

Delinquencies for U.S. commercial mortgage-backed securities declined to 1.22% in March, and the trend is likely to continue for the rest of 2005, according to Fitch Ratings.The rating agency's loan delinquency index records a 31-basis-point decline in CMBS delinquencies compared with the March 2004 index, continuing the downward trend in loan delinquencies that Fitch has been seeing since August 2004, the rating agency said. "Fitch expects to see a continuing overall decline in the delinquency index over the remainder of 2005, as real estate fundamentals are improving across all property types and in almost all markets," said Mary O'Rourke, a Fitch senior director. For the latest period, the rating agency saw a "small gain" in multifamily delinquencies, and a corresponding decline in retail delinquencies. Fitch can be found online at http://www.fitchratings.com.