Originations

Regions Financial Corp., Birmingham, Ala., and Union Planters Corp., Memphis, have announced plans to integrate their respective mortgage companies, Regions Mortgage and Union Planters Mortgage, in connection with their previously announced merger.The combined entity, Regions Mortgage, will be headquartered in Memphis. The current operations of Regions Mortgage in Montgomery, Ala., (excluding sales offices and an operations center) will be relocated to Memphis and to Hattiesburg, Miss., the companies said. Union Planters Mortgage's operations in Montgomery, except for the wholesale lending office, will also be relocated to Memphis. The companies said approximately 450 positions will be affected by the changes, which are scheduled to take place between October 2004 and March 2005. "Combining the strengths of our two mortgage companies will be an integral part of Regions' and Union Planters' efforts to create a new regional force in banking and financial services," said Regions Mortgage chairman Robert A. Goethe, who will be the chairman of mortgage banking for the combined company. ".... We did not approach these decisions lightly, and every attempt has been made to minimize the negative repercussions on the people involved." Regions can be found online at http://www.regions.com.

The Louisville, Ky., metropolitan area has launched a local version of Freddie Mac's "Don't Borrow Trouble" campaign to help families avoid falling prey to scams and other unscrupulous lending practices.The campaign, headed by the Don't Borrow Trouble Louisville Metro Coalition, uses advertising and consumer education to alert the public about predatory lending, Freddie Mac said. Local residents can now call a hotline, at 502-736-9999, that will refer them for appropriate counseling on legal or housing questions. The lead agencies coordinating the campaign with Freddie Mac are The Housing Partnership and the Louisville Urban League. Freddie Mac began launching local "Don't Borrow Trouble" efforts in 2000. Freddie Mac can be found online at http://www.freddiemac.com.

Bank of America, Charlotte, N.C., has introduced a no-fee home equity line of credit on the West Coast that it says offers competitive rates and flexible payment terms.The product, Equity Maximizer, requires no application fees, no closing costs, no minimum draw, no prepayment or early-closure fees, no fixed-rate loan option conversion fees, and no annual maintenance fees, BoA said. "Many banks say they offer no-fee home equity lines, but they are only talking about the upfront fees consumers often pay to secure a home equity line of credit," said BoA home equity executive David Rupp. The new HELOC product is now available to homeowners in California, Oregon, Washington, and Idaho, but BoA said it plans to expand the offering nationwide this summer. BoA can be found online at http://www.bankofamerica.com.

Housing affordability in California improved slightly in February from the January level, although it was down by six percentage points from the level recorded a year earlier, according to the California Association of Realtors.Housing affordability stood at 24% in February, up from 23% in January but down from 30% a year earlier, CAR said. The index indicates the percentage of households that can afford to buy a median-priced home in California, which cost $394,300 in February. The minimum household income needed to buy a median-priced home was $91,690, up from $77,220 a year earlier, CAR said. (The figures are based on a 30-year fixed-rate mortgage at a 5.74% interest rate, assuming a 20% downpayment.) CAR can be found on the Web at http://www.car.org.

Brookfield Properties Corp., New York, has announced an agreement to issue $150 million of cumulative redeemable preferred shares (denominated in Canadian dollars) to a syndicate of investment dealers led by CIBC World Markets Inc.The shares carry a dividend rate of 5.0%. Brookfield said it has granted the underwriters an option to buy up to an additional C$50 million of shares at the same offering price. Brookfield, which owns, develops, and manages North American office properties, can be found on the Web at http://www.brookfieldproperties.com.

Medical Properties Trust Inc., a newly formed real estate investment trust based in Birmingham, Ala., has reported the completion of a private offering of 25.3 million shares of common stock.The net proceeds of approximately $233.55 million will be used to acquire and develop net-leased health care facilities, to repay debt, to pay pre-offering operating expenses, and for working capital, the REIT said. Friedman, Billings, Ramsey & Co. was the sole placement agent and initial purchaser of the offering, which included 3.3 million shares to cover overallotments.

The ratings of Sun Communities Inc., a real estate investment trust based in Southfield, Mich., and its operating partnership have been lowered by Moody's Investors Service.The downgrades were as follows: Sun Communities preferred stock shelf, from (P)Baa3 to (P)Ba1; and Sun Communities Operating LP senior unsecured debt and debt shelf, from Baa2 to Baa3, and subordinate debt shelf, from (P)Baa3 to (P)Ba1. The ratings remain under review for possible downgrade. Moody's said the rating actions are based on Sun's announcement of a tender offer to buy all outstanding senior unsecured notes at par value (plus a specified spread) with proceeds from the issuance of longer-term debt secured by the REIT's housing communities. "This rating action also reflects management's decision to change the REIT's capital structure to a primarily secured debt financing strategy with high leverage, and a low unencumbered portfolio," Moody's said. In connection with the tender offer, Sun is soliciting consents to a proposed amendment to the indenture governing the notes that would "eliminate substantially all of the restrictive covenants under the indenture and the notes," the rating agency said. Moody's can be found online at http://www.moodys.com.

Wescom Credit Union, Pasadena, Calif., is entering the commercial real estate lending market and has hired Dean Lambertson as vice president for its new commercial real estate division.The division will provide the CU's 215,000 members with financing of up to $5 million for the purchase of multifamily properties of five or more units, as well as industrial, retail, and office properties, the company said. Darren Williams, Wescom's president and chief executive officer, said the addition of commercial real estate financing to the CU's offerings "significantly increases our presence as a major lender in the Southern California market." Mr. Lambertson was previously a vice president at First Regional Bank, Glendale, Calif.

Equity Inns Inc., Germantown, Tenn., has entered into an underwriting agreement with Citigroup Global Markets Inc. to sell 2.4 million shares of its common stock.The net proceeds from the issuance are expected to total $21.4 million, of which $16 million will be used to fund previously announced acquisitions and the remainder for general corporate purposes, the real estate investment trust said. Citigroup has been granted a 30-day option to buy up to 360,000 additional shares to cover any overallotments. The hotel REIT can be found online at http://www.equityinns.com.

Eleven classes of Credit Suisse First Boston Mortgage Securities Corp.'s commercial mortgage pass-through certificates, series 2002-TFL1, have been placed on review for possible downgrade by Moody's Investors Service.The affected classes were as follows: class F-717, class G-717, class H-717, class F-ALH, class F-COT, class G-COT, class F-WBC, class G-WBC, class H-WBC, class F-POR, and class G-POR. As of March 9, the aggregate certificate balance of the deal had decreased by approximately 13.2% to $689.1 million, Moody's said. The pooled certificates are currently collateralized by 10 mortgage loans. The rating agency said classes A through E are pooled classes, which benefit from pool diversity, while the watchlisted classes F, G, and H depend on the performance of specific loans for debt service and ultimate repayment. Moody's attributed the watchlisting to the weaker-than-expected operating performance of five loans totaling approximately 53.1% of the trust's assets -- 717 Fifth Avenue (21.0%), Alliance LHMD Multifamily Portfolio (15.9%), Cottonstar Portfolio (5.8%), Williamsburg & The Commons (6.1%), and Portland Multifamily Portfolio (4.3%). Moody's can be found online at http://www.moodys.com.

The National Association of Insurance Commissioners, Kansas City, Mo., has sent a letter to Congress regarding the Terrorism Risk Insurance Act, asking for "Congressional action this year to avoid market disruptions that will occur in the absence of a federal backstop program."TRIA was enacted at the end of 2002 to provide a federal backstop for terrorism insurance coverage on commercial real estate. It is due to expire at the end of 2005, and the NAIC is concerned that "significant market disruption may develop before TRIA's expiration." Policyholders and insurers will have to make decisions this year relating to insurance coverage going into 2006, and they might have to consider a scenario involving no federal backstop in 2006, according to the letter. This means that there could be "widespread introduction of conditional exclusions for terrorism coverage," the NAIC said. The letter is addressed to the chairmen of the House Financial Services Committee and the Senate Banking Committee.

Banc of America Large Loan Inc.'s commercial mortgage pass-through certificates, series 2001-7WTC -- secured by mortgage loans on a leasehold interest in 7 World Trade Center -- have been downgraded by Fitch Ratings.All classes in the deal remain on Rating Watch Negative. The downgrades were as follows: class A, from AAA to A; interest-only classes X-1 and X-2, from AAA to A; class B, from AA-plus to BBB-plus; class C, from AA to BBB; class D, from AA-minus to BBB-minus; class E, from A-plus to BB-plus; class F, from A to BB; class G, from BBB-plus to B-plus; and class H, from BBB to B. The certificates are secured by ownership in a trust that owns a $383 million loan backed by certificates secured by four mortgage loans to the underlying borrower on a leasehold interest in 7WTC. Fitch said the rating actions reflect the fact that "the credit characteristics of the underlying loan are now similar to that of a construction loan, a position for which the original ratings are inconsistent." It cited several contributing factors, including: the decline in net effective market rents; the smaller size of the building planned for construction; and the use of insurance proceeds to fund construction because other sources are not yet available.

The average 30-year fixed mortgage rate jumped to 5.79% for the week ending April 9 from 5.52% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 4.84% to 5.12%, and the average rate for one-year Treasury-indexed ARMs climbed from 3.46% to 3.65%. Fees and points averaged 0.7 of a point for fixed-rate mortgages and 0.5 of a point for ARMs. "The bond market reacted to the welcome news [April 2] that jobs are finally being created, which is much needed for continued expansion of the economy," said Amy Crews Cutts, Freddie Mac's deputy chief economist. "Mortgage rates again followed the bond market, rising significantly from last week to this week, and spurring speculation that the Federal Reserve Board will raise rates sooner rather than later." A year ago, the average 30-year and 15-year fixed rates were 5.85% and 5.17%, respectively, and the average one-year ARM rate was 3.80%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.

Class F of GMAC Commercial Mortgage Securities Inc. mortgage pass-through certificates, series 2001-FL1, has been downgraded from B1 to B3 by Moody's Investors Service.In addition, Moody's upgraded two classes in the deal and affirmed the ratings of two other classes. The certificates are collateralized by three remaining mortgage loans ranging in size from 17.7% to 62.9% of the pool (based on current principal balances), Moody's reported. Each of the loans defaulted in late 2003 or early 2004, and the special servicer is pursuing resolution. Class F was downgraded due to poorer pool performance, while classes C and D were upgraded due to increased credit support levels, the rating agency said. Moody's can be found online at http://www.moodys.com.

Arbor Realty Trust, New York, has priced an initial public offering of its common stock at $20 per share.The commercial real estate financing company expects to realize gross proceeds of $135 million from the sale of 6.2725 million shares, of which 22,500 are being offered by a stockholder of the company. The stock will trade on the New York Stock Exchange under the symbol ABR, Arbor said. The company said it expects to use the net proceeds from the offering to repay debt under a credit facility and a "master repurchase agreement." The offering, which is expected to close April 13, is led by Wachovia Securities.

Total home sales are likely to set another record this year as interest rates remain low and mortgage originations remain high, according to Freddie Mac's latest economic forecast.In its April economic outlook, the government-sponsored enterprise predicts that home sales will total 7.27 million units this year, 1% higher than sales in 2003. Rates on 30-year fixed-rate mortgages, which averaged 5.6% in the first quarter, should "dip 10 basis points in the second quarter before gently rising up to 5.7% in the fourth quarter," Freddie Mac says. The lowering of its mortgage rate forecast led the GSE to boost its forecast for total single-family mortgage originations. "Total single-family mortgage originations in 2004 are now expected to be near $2.8 trillion," the GSE said. Freddie Mac can be found on the Web at http://www.freddiemac.com.

The Market Composite Index, an overall measure of mortgage applications, fell from 1091.3 to 1012.9 on a seasonally adjusted basis during the week ended April 2, although purchase applications rose, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications fell 6.6% on the week and were down 17.6% from the level of a year earlier. The Purchase Index climbed from 443.8 to 477.5 on a seasonally adjusted basis, while the Refinance Index fell from 4857.6 to 4126.7. Refinancings represented 57.1% of total applications, down from 62.8% the previous week, while adjustable-rate mortgages accounted for 28.8%. The average contract interest rate for 30-year fixed-rate mortgages rose from 5.49% to 5.75%, and points (including the origination fee) fell from 1.29 to 1.27 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mortgagebankers.org.

American Residential Investment Trust Inc., the San Diego-based parent company of the American Mortgage Network wholesale mortgage bank, has announced that it will soon change its corporate name to AmNet Mortgage Inc.John M. Robbins, ARIT's chief executive officer, said the company's transformation into a mortgage bank is complete. "Our goal is to link the parent company with a name that is more closely aligned with American Mortgage Network, our primary subsidiary and core business," Mr. Robbins said. The company can be found online at http://www.amnetmortgageinc.com and http://www.amerreit.com.

A "Borrow With Confidence" homebuyer education campaign has been unveiled in Franklin, Tenn., by Fannie Mae, the Tennessee Association of Realtors, the Williamson County Association of Realtors, and Rep. Marsha Blackburn, R-Tenn.Fannie Mae said BWC "puts Realtors at the forefront of preventing unwarranted high-cost lending," through a multifaceted education campaign that it says will ultimately help homebuyers get the best mortgage financing they qualify for and expand homeownership opportunities throughout middle Tennessee. The campaign was first introduced last year in Texas by the National Association of Realtors. "Realtors have the closest professional relationship with the local homebuyer and are often the primary source of information for consumers when shopping for a mortgage," said Sandra Gilley, president-elect of TAR. "Now TAR members can help homebuyers obtain competitive rates appropriate to the buyer's credit qualifications." BWC will help Realtors promote consumer awareness about seeking out responsible lenders, educate them about the mortgage process, and ensure that Realtors know about low-cost flexible mortgage loans and are committed to offer competitive rates.

Nehemiah Corp. of America, Sacramento, Calif., has introduced a mortgage payment protection insurance policy to help its downpayment gift recipients protect their homes in case of job loss.The company said the Nehemiah Program has formed a partnership with Mortgage Payment Protection Inc. to offer the new policy, called MortgageGuardian. It covers up to six months of the buyer's mortgage payments (including principal, interest, taxes, and insurance, up to $1,500 per month) during the first year of the loan. "While it has been documented that downpayment assistance recipients do not pose any greater risk to foreclosure than transitional homebuyers, we are offering MortgageGuardian to help insure that protection begins at home," said Scott Syphax, Nehemiah's president and chief executive officer. Nehemiah can be found online at http://www.nehemiahcorp.org and http://www.getdownpayment.com.