Originations

The Market Composite Index, an overall measure of mortgage applications, fell from 916.1 to 868.9 on a seasonally adjusted basis during the week ended Jan. 23, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications fell 12.1% on the week and 27.5% from the level of a year earlier. The Purchase Index declined from a record high of 501.6 to 451.6 on a seasonally adjusted basis, while the Refinance Index slipped from 3327.3 to 3296.7. Refinancings represented 58.5% of total applications, up from 57.7% the previous week, while adjustable-rate mortgages accounted for 26.3%. The average contract interest rate for 30-year fixed-rate mortgages crept up from 5.55% to 5.58%, and points (including the origination fee) increased from 1.32 to 1.47 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mortgagebankers.org.

New-home sales fell 5.1% in December compared with the level of the previous month, according to new figures compiled by the U.S. Commerce Department.However, compared with sales in the same month a year ago, new-home sales rose slightly, by 0.8%. According to the government, sales of new single-family homes totaled a seasonally adjusted annual rate of 1.06 million units during the month. The median sales price of a new home was $197,600, and the average sales price totaled $261,100. The government said that 1,085,000 hew homes were sold during all of 2003, an 11.5% increase from the total of the year before. According to an analysis report by Greenwich Capital, "The drop in new home sales in December is surprising in view of the rebound in mortgage demand and existing homes toward year-end."

AmeriVest Properties, Denver, has filed a universal shelf registration statement with the Securities and Exchange Commission that would permit the offering of up to $200 million of AmeriVest securities.The securities could be either preferred stock or common stock, the company said. The registration statement has not yet been declared effective by the SEC. AmeriVest acquires and operates office buildings, mainly in the Denver, Phoenix, Dallas, and Indianapolis markets. It can be found online at http://www.amvproperties.com.

The National Association of Realtors and the U.S. Conference of Mayors Council for the New American City have announced the "Realtors Ambassador to Cities" initiative designed to expand urban affordable homeownership opportunities across the country "on a city-by-city basis," NAR said.The first RAC initiative was introduced recently in Memphis, Tenn. It includes an educational campaign that will help raise Realtors' awareness about the housing needs of low- to moderate-income borrowers. The idea for the new affordable housing initiative, based on a partnership between public officials and the private sector, has been in development since September 2003. "The Ambassador to Cities program will help to further expand the relationship between mayors and the people who frequently introduce new citizens to our cities -- Realtors," said James A. Garner, president of the Conference of Mayors. According to the NAR, research shows an increasing need for affordable housing in the country's urban areas, where the NAR and the Conference of Mayors are trying to help create housing opportunities for first-time homebuyers.

Four classes of GMAC Commercial Mortgage Securities Inc. mortgage pass-through certificates, series 2000-FL1, have been downgraded by Moody's Investors Service.The downgrades were as follows: class C, from A2 to Baa1; class D, from Ba1 to Baa2; class E, from Baa3 to Ba2; and class F, from Ba2 to B2. The ratings on three other classes in the deal were affirmed. Moody's said the downgrades were based on a significant decline in the value of the $84.2 million Level 3 loan, the second-largest in the deal. The loan represents 41.5% of the pool balance and is secured by a 775,000-square-foot class A office complex northwest of Denver. "While a near-term default on the debt is not expected, Moody's is concerned about refinancing prospects given the current Denver market conditions," the rating agency said. Moody's can be found online at http://www.moodys.com.

Capital Title Group Inc., Scottsdale, Ariz., has signed an agreement to acquire Nationwide Appraisal Services Corp., Pittsburgh, in a $25 million cash transaction.Deferred payments of up to $3 million could also be made to Nationwide's owners, depending on whether certain conditions are met, Capital Title said. Besides offering appraisal services, Nationwide is licensed as a title agent in 36 states. "The acquisition of Nationwide would significantly expand the geographic scope of Capital Title's operations, as well as the breadth of bundled real estate settlement services that Capital can offer to its lending and real estate clients," the company said. Capital is both an agency and an underwriter of title insurance policies.

Countrywide Financial Corp., Calabasas, Calif., has reported consolidated net earnings of $2.37 billion ($12.47 per share) for 2003, up 182% from $841.8 million ($4.87 per share) in 2002.For the fourth quarter, earnings totaled $563.7 million ($2.74 per share), up 121% from $254.9 million ($1.45 per share) a year earlier. The results reflect a 4-for-3 stock split that took effect in December, Countrywide said. In the mortgage banking segment, loan volume totaled $434.86 billion for the year, up 73%, but fourth-quarter volume of $76.32 billion was down 25% from that of a year earlier, the company reported. "Most noteworthy was the 33% year-over-year fourth-quarter increase in purchase volume, which helped to mitigate the decline in refinance volume," said Angelo R. Mozilo, Countrywide's chairman and chief executive officer. "In addition, demand for less interest-rate-sensitive products continued to be robust, with fourth-quarter year-over-year production volume increasing 145% for adjustable-rate mortgages, 54% for home equity loans, and 109% for subprime fundings." Countrywide said its servicing portfolio stood at $645 billion at the end of the year, more than double its $285 billion level at the beginning of the refi boom in December 2000. The company can be found online at http://www.countrywide.com.

Fannie Mae has set a new goal to help 6 million families -- including 1.8 million minority families -- become first-time homebuyers over the next 10 years.The new commitment means Fannie Mae will have to increase its annual financing of first-time homebuyers by 70% over the annual average of the past four years and double its annual financing of minority first-time homebuyers. To reach this goal, the giant secondary market agency is pledging to drive down the cost of originating a mortgage by $500, offer more flexible underwriting for recent immigrants, purchase more Community Reinvestment Act loans from banks, and transform the manufactured housing market. "We and our partners have bold ideas and big plans to work on the toughest housing problems facing America," said Fannie Mae chairman and chief executive Franklin Raines. Fannie Mae can be found online at http://www.fanniemae.com.

The New York affiliate of Cleveland-based Forest City Enterprises is planning a $2.5 billion mixed-use project in downtown Brooklyn, which will include an 800,000-square-foot stadium for the Nets NBA basketball team.Forest City Ratner Cos., together with a group of investors, has entered into a $300 million deal for the purchase of the Nets team, the company said. The group of investors, including the company, is also financing the development of the project. The Brooklyn Atlantic Yards, as the developer is calling the project, is to be designed by the renowned architect Frank Gehry, Forest City said. The project is expected to include 2.1 million square feet of commercial office space; 300,000 square feet of retail space; and 4.4 million square feet of residential space, including about 4,500 units of affordable, middle-income, and market-rate housing. "This project will be a part of the unique fabric of Brooklyn -- a dynamic commercial and recreational destination complementing vibrant residential neighborhoods," said Bruce Ratner, president and chief executive officer of Forest City Ratner.

Economic growth in Texas this year will exceed the national average, while Louisiana will see economic growth that lags the average rate, Fannie Mae chief economist David Berson said at a mortgage conference in Baton Rouge, La., sponsored by Hibernia National Bank.In Texas, Mr. Berson said Dallas may see more sluggish growth than other markets because of its reliance on the telecommunications industry. Nationwide, Mr. Berson said he expects 2004 to be another strong year for home sales, though he said refinancing may diminish substantially. By the end of this year, rates may rise to 6.5% on 30-year mortgage loans, he said.

Sales of existing single-family homes jumped 6.9% in December to close out another record sales year in which house prices rose 7.5% and inventories of unsold homes remained lean.The National Association of Realtors reported that resales rose from a seasonally adjusted annual rate of 6.05 million in November to a 6.47 million rate in December. Sales of previously occupied homes totaled 6.10 million in 2003, which shattered the 5.94 million record set in 2002. Home price appreciation in 2003 also exceeded the 7.0% increase in 2002. NAR chief economist David Lereah told reporters that 2003 ended on an "up note" and that mortgages rate have declined since December. His 2004 forecast calls for a 4% decline in resales, but he admitted he might have to make an upward revision if the Federal Reserve Board remains accommodative. If interest rates stay low because of weakness in the labor market, "I will have to revise my home sales numbers upward as the year progresses," Mr. Lereah said. Sales of existing single-family homes started the first half of 2003 at a strong 5.85 million pace but then accelerated to a 6.36 million pace in the second half. Meanwhile, the inventory of unsold homes ended the year at a lean 4.3-month supply. The NAR can be found on the Internet at http://realtor.org.

Great Lakes REIT, Oak Brook, Ill., has announced a merger agreement under which it will be acquired by Asian Realty Partners II LP, an affiliate of Transwestern Investment Co.Great Lakes said Transwestern has agreed to pay no less than $14.98 per share in cash to shareholders upon the closing of the merger. Under the agreement, Great Lakes is permitted to sell certain of its properties, including its portfolio of medical office buildings and its two Minnesota assets, to the extent that the net proceeds from the sales would exceed the value of such properties specified by Transwestern.

Glimcher Realty Trust, Columbus, Ohio, has priced a $150 million public offering of six million shares of 8.125% redeemable preferred shares at a price of $25.00 per share.The net proceeds of the offering of approximately $144.85 million will be used to repay $16.9 million in subordinated mortgage debt relating to the company's Great Mall of the Great Plains located in Olathe, Kansas, and to partially fund the redemption of all of the company's outstanding 9.25% Series B cumulative preferred shares, the company said. Morgan Stanley & Co. and McDonald Investments acted as co-managers of the offering.

Paramax Capital Group plans to launch a new multi-seller, asset-backed commercial paper program, Paramax Capital Funding.The new vehicle will target financing various asset pools including trade receivables, consumer credit assets, mortgages and highly rated securities. Paramax is broadening its product set to provide additional services to complement its "expected loss note activities." Gordon Baird, chief executive officer of Paramax Capital, said the company's executives believe "there is a need and demand for third party conduits in this new structured finance paradigm." Paramax Capital Group is a specialty structured finance firm headquartered in Stamford, Conn., with over $8 billion of consolidated assets. Paramax provides subordinated capital to the structured finance markets including FIN 46 expected loss and mezzanine ABS capital as well as the advisory and administrative services.

Horizon Bancorp, Michigan City, Ind., said it would start a wholesale mortgage production operation sometime in the early part of this year.The announcement was made in the company's annual earnings press release. Craig M. Dwight, president and chief executive of Horizon, said it is starting the wholesale channel as part of its plan to mitigate the reduction in mortgage refinancing. Another part of the plan was the acquisition of Anchor Mortgage, St. Joseph, Mich., in August 2003. Fourth quarter income at Horizon declined by $568,000 or 36% from the same period of the prior year, primarily due to a reduction in mortgage loan volume. Mortgage warehouse loans at Horizon fell from an average of $275 million outstanding during the third quarter of 2003 to an average of $150 million outstanding during the fourth quarter.

The Mortgage Bankers Associations has revised its origination forecast for 2004 upwards to nearly $2 trillion and it expects the industry to shed 65,000 jobs due to the decline in refinancings.As a result of modeling changes, MBA has increased its 2004 origination forecast from $1.55 trillion to $1.99 trillion. Nevertheless, the fall in production this year will be steep, since MBA is now estimating 2003 loan production to hit $3.79 trillion -- a new record. "There is no question that the decline in volume will reveal excess capacity," MBA chief economist Doug Duncan said. Employment in the mortgage industry peaked at 435,000 in August. By year-end 2004, the MBA economist expects 65,000 positions will be terminated. He stressed, however, that most of the layoffs will be temporary workers. "We have already seen early indications of business exits, a couple of publicly announced business failures and a number of acquisitions, Mr. Duncan told reporters at a press briefing. "This happens after every refinancing wave peaks," he added. On Feb. 6, the Bureau of Labor Statistics will release revised payroll numbers for 2003 that is expected to push the 10-year Treasury note up. If the revision shows a 100,000 increase in payrolls for the last several months, "it will add 20 basis points," to the 10-year Treasury yield, Mr. Duncan told MortgageWire.

HRPT Properties Trust, Newton, Mass., has priced a public offering of 3 million common shares of beneficial interest of Senior Housing Properties Trust, also of Newton, at $18.20 per share.The shares were owned by HRPT, a real estate investment trust. At the same time, Senior Housing Properties, also a REIT, has agreed to sell 5 million newly issued common shares. HRPT said it has granted the underwriters a 30-day option to buy up to 1.20 million additional shares of its Senior Housing Properties holdings to cover any overallotments for the combined offering of 8 million shares. Senior Housing Properties will not receive any proceeds from the sale of shares sold by HRPT. After the closing of the offering, and assuming no exercise of the overallotment option, HRPT will own 9.8 million shares of Senior Housing Properties, the company said. UBS Investment Bank and RBC Capital Markets are the joint book-running managers of the combined offering. The REITs can be found online at http://www.hrpreit.com and http://www.snhreit.com.

Federal Realty Investment Trust, Rockville, Md., has announced the pricing of a $75 million offering of 4.5%, seven-year, senior unsecured notes at 99.698.The joint book-running managers for the offering are Citigroup Global Markets Inc. and Wachovia Securities. The equity real estate investment trust can be found online at http://www.federalrealty.com.

Pennsylvania Real Estate Investment Trust, Philadelphia, has announced that it will soon create a five-person Office of the Chairman and make several executive changes.PREIT said the new office -- which will formulate and execute the company's strategic direction -- will consist of Ronald Rubin, the company's chairman and chief executive officer, and Jonathan Weller, George Rubin, Edward Glickman, and Joseph Coradino. Mr. Weller will become a vice chairman and will be responsible for formulating long-term corporate strategy. George Rubin will become a vice chairman and will be responsible for property development and acquisition initiatives. Mr. Glickman will become president and chief operating officer. And Mr. Coradino will become president of PREIT Services LLC and PREIT-Rubin Inc. The changes will take effect upon the filing of the company's 2003 financial statements, which is scheduled to occur on or before March 15. PREIT can be found online at http://www.preit.com.

Countrywide Financial Corp., Calabasas, Calif., has announced the promotions of two executives to executive managing director.Carlos Garcia, who joined Countrywide in 1984, has been promoted to executive managing director of banking and insurance operations. Keith McLaughlin, who has also been with the company for nearly 20 years, was promoted to executive managing director and will continue to oversee the secondary markets, risk management, corporate accounting and tax budgeting, and financial reporting, Countrywide said. Mr. McLaughlin will also retain his title as chief financial officer. Countrywide also announced the promotion of 14 other executives to senior managing director. The company can be found online at http://www.countrywide.com