Originations

An additional $100 million of lending to low- and moderate-income families for affordable housing has been made available in Los Angeles and Orange counties by two California housing finance agencies.The "historic" agreement was announced by the California Housing Finance Agency (the state's affordable housing bank) and the Southern California Home Financing Authority (the state's largest local user of single-family mortgage revenue bonds). "For too long, working families have been squeezed out of the Southern California housing market because their income was either too low or too high to qualify for first-time homebuyer loans at below-market interest rates," said Theresa Parker, executive director of CalHFA. "This unique partnership between our two entities will allow income limits to be adjusted and interest rates lowered, thereby expanding the sphere of affordable housing within their reach." CalHFA can be found online at http://www.calhfa.ca.gov.

Julie Joseforsky has been named chief administrative officer of Key Consumer Finance, a division of Cleveland-based KeyCorp.She will focus especially on optimizing technology and operations across the company's Consumer Finance organization, including its home equity, prime services, and Champion businesses, Key said. Ms. Joseforsky was previously director of direct lending and director of compliance for Household International, and she held similar positions in the consumer lending group at Banc One.

Lenders Direct Capital Corp., a recently formed national mortgage lender headquartered in Lake Forest, Calif., has announced that Baseball Hall-of-Fame outfielder Reggie Jackson will be a spokesman for the company."This is the perfect time to start a mortgage company specializing in niche products like second mortgages, subprime, and alternative-A loans," company president Michael McQuiggan said. "With the changing interest rate environment it is essential to be in the marketplace with programs that will serve the future needs of the consumers." Mr. Jackson, known for his World Series heroics as a member of the New York Yankees and Oakland A's, also played for the Baltimore Orioles and California Angels. Mr. Jackson's "rock-solid credibility, intelligence, and experience are assets to us as his new teammates, and that translates into a marketing and public relations bonanza for us," Mr. McQuiggan said.

Less than 3% of the 13,419 U.S. structured finance securities issued since 1993 have defaulted, according to a study by Moody's Investors Service.The structured finance default study included 167 asset-backed securitizations, 80 commercial mortgage-backed securitizations, and 143 residential mortgage-backed securitizations. While gross payment defaults are "the simplest measure of performance," according to Moody's analyst Jian Hu, defaults are often cured within a short time in the structured finance arena. Therefore, the rating agency also tracked securities that defaulted and were not subsequently cured, finding that only 94 of the 390 defaults during the study period were later cured. The study found that the average loss severity rate for the 84 securities that defaulted was approximately 42% of their original balances. In the CMBS arena, the study identifies interest shortfalls as the cause of all the defaults to date. Most recent defaults have been "precipitated by appraisal reductions and special servicing fees," Moody's said. Other causes of shortfalls include loan modifications, unanticipated terrorism insurance expenses, and legal expenses. However, losses on CMBS defaults so far have been "extremely low," the rating agency said. Moody's can be found online at http://www.moodys.com.

The average 30-year fixed mortgage rate rose to 6.02% for the week ending Dec. 5 from 5.89% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 5.22% to 5.36%, and the average rate for one-year Treasury-indexed adjustable-rate mortgages was unchanged, at 3.77%. Fees and points averaged 0.6 points for all three mortgage categories. "Financial markets are speculating about what the Federal Reserve Board will say when it meets [the week of Dec. 7]," said Frank Nothaft, Freddie Mac's chief economist. "And it looks like the market is taking bets that the Fed will soften its language and raise rates sooner rather than later. As a result, bond yields drifted higher, and with them went mortgage rates." A year ago, the average 30-year and 15-year fixed rates were 6.19% and 5.60%, respectively, and the average one-year ARM rate was 4.21%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.

Commercial Net Lease Realty Inc., a real estate investment trust based in Orlando, Fla., has announced a public offering of approximately 3 million shares of its common stock.The net proceeds totaled approximately $54 million, the REIT said. Citigroup is acting as the sole underwriter of the offering, which is expected to close on Dec. 8. The REIT invests in single-tenant retail, office, and industrial properties subject to long-term net leases. It can be found online at http://www.cnlreit.com.

Correctional Properties Trust, Palm Beach Gardens, Fla., has announced the completion of an amended three-year bank credit line that consists initially of a $95 million secured revolving credit facility.The amended facility contains provisions to expand the total to $200 million by increasing the revolver or originating a new term loan of up to $100 million. Banc of America Securities LLC was the sole lead arranger and book manager for the transaction. The real estate investment trust can be found on the Web at http://www.correctionalpropertiestrust.com.

Camden Property Trust, a Houston-based real estate investment trust, has priced a $200 million offering of 5.375% senior unsecured notes at 99.424.The multifamily REIT will use the net proceeds of approximately $198 million to reduce the balance under its unsecured credit facility. Camden can be found on the Web at http://www.camdenliving.com.

Randy Pool has been named executive vice president of Argent Mortgage Co. LLC, Irvine, Calif.Mr. Pool will manage the Business Controls Group, responsible for broker/vendor management, post-close/collateral control, appraisal review, audit/due diligence, and investor relations, Argent said. Mr. Pool was most recently employed by The Money Store for five years in Sacramento, Calif. He was previously executive vice president for Remodelers Acceptance Corp. (later FirstPlus Financial) and vice president for home equity/improvement lending for The Associates Financial Services Co.

Wells Real Estate Funds, Norcross, Ga., has announced the launch of Wells Real Estate Investment Trust II Inc. with an offering of 600 million shares of common stock priced at $10 per share.Wells REIT II is also offering up to 185 million shares of common stock at $9.55 per share under its dividend reinvestment plan. The fund is expected to use virtually all the proceeds of the offering to acquire and operate commercial real estate, with a special focus on office and industrial properties, Wells said. The company can be found online at http://www.wellsref.com.

WealthSpring Mortgage, Minneapolis, has announced the introduction of Rightfee, a new guaranteed closing cost system.WealthSpring president Michael Warner said the system offers a guaranteed closing fee (excluding variable prepaid costs such as taxes and insurance) along with a "competitive interest rate guarantee." He said Rightfee is modeled on the Guaranteed Mortgage Package Agreement that has been proposed by the Department of Housing and Urban Development as part of a rule that would reform regulations under the Real Estate Settlement Procedures Act. The company can be found online at http://www.wealthspringmortgage.com.

New Jersey's new predatory lending law may jeopardize billions of dollars in mortgage loans to the state's consumers, according to a survey of top New Jersey lenders conducted for the National Home Equity Mortgage Association.NHEMA said the survey of 16 of the top 25 mortgage lenders in New Jersey found that they expect to reduce mortgage lending by $4.2 billion a year in the state because of the new restrictions, which took effect Nov. 27. In addition, all said they would reduce lending to New Jersey borrowers who don't meet prime lending standards (with an average reduction of 69%), and most said they would severely curtail or eliminate cash-out refinance and home improvement lending in the state. "Mortgage lenders want to keep doing business in New Jersey, but they say the law that went into effect last week will make it impossible to serve as many people as they have in the past," said Dr. Richard F. DeMong, the Virginia Bankers Professor of Bank Management at the University of Virginia. "While the lenders I surveyed expect to reduce lending in the state by over $4 billion a year, the total mortgage credit lost to New Jersey's borrowers as a result of the law could be several times that amount." NHEMA can be found online at http://www.nhema.org.

The Market Composite Index, an overall measure of mortgage applications, fell to 685.1 on a seasonally adjusted basis during the holiday-shortened week ended Nov. 28 from 775.6 the week before, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications dropped 39.9% on the week and were down 29.7% from the level of a year earlier. The Purchase Index fell from 459.9 to 441.8 on a seasonally adjusted basis, while the Refinance Index plunged from 2612.2 to 2100.0. Refinancings represented 50.0% of total applications, down from 53.3% the previous week, while adjustable-rate mortgages accounted for 26.6%. The average contract interest rate for 30-year fixed-rate mortgages rose from 5.73% to 5.93%, and points (including the origination fee) were unchanged, at 1.45, for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mortgagebankers.org.

After almost a year of peddling its commercial mortgage banking unit, General Motors has decided that it loves the business after all.Late Tuesday the automaker said it has decided to keep GMAC Commercial Mortgage, Elkins Park, Pa., noting that the unit "has continued to post record operating results, with origination volume and earnings during the first nine months of 2003 already at or above the levels" achieved last year. One source told MortgageWire that analyzing GMACCM is not an easy task, given all the "B-piece" securities it owns. Sources said that a few months back, GM had a deal in principle to sell GMACCM to Deutsche Bank for about $1 billion, pending additional due diligence. "But given GMAC's size, three months was just not enough time," the source said, adding that there were additional "complications" as well. One factor in GM's initial decision to sell GMACCM was its pension fund, which has been underfunded. But according to Goldman Sachs, the pension fund is returning to health after a 20% gain in 2003. GMACCM is the largest commercial real estate lender and servicer in the United States. GMACCM can be found online at http://www.gmaccm.com.

The Pacific Exchange has announced the initiation of trading in options on General Growth Properties Inc., a Chicago-based real estate investment trust.The options will trade on the January expiration cycle, with limits set at 22,500 contracts. The issue will be traded by lead market makers Steven D. Juno and Ethan Dorr of Cutler Group. The exchange can be found on the Web at http://www.pacificex.com.

Nationwide Advantage Mortgage Co., Des Moines, Iowa, and the National Hispanic Corporate Council have joined forces to provide mortgage services for NHCC member corporations and employees.Nationwide Advantage, the mortgage affiliate of Nationwide, said it offers a 10-minute mortgage product that emphasizes speed, simplicity, and savings. The product is especially attractive to employers and organizations seeking to add a voluntary benefits program at minimal cost, the company said. "Our relationship with NHCC will be a valuable informational resource and provides the financial tools to lower the cost of buying and owning a home," said Robert Kallio, associate vice president of marketing for Nationwide Advantage. The company can be found on the Web at http://www.nationwideadvantage.com.

Terry Stevens has been named chief financial officer of Highwoods Properties Inc., a real estate investment trust based in Raleigh, N.C.Mr. Stevens was most recently executive vice president and CFO of Crown American Realty Trust, which recently merged with Pennsylvania Real Estate Investment Trust. Meanwhile, Carmen Liuzzo, Highwoods' previous CFO, has been named to the newly created post of vice president of investments and strategic analysis. Highwoods can be found online at http://www.highwoods.com.

Vasant M. Prabhu has been named executive vice president and chief financial officer of Starwood Hotels & Resorts Worldwide, White Plains, N.Y.Ron Brown, Starwood's EVP and CFO since 1995, will assist Mr. Prabhu during the transition. Mr. Brown has been named EVP of strategy. Mr. Prabhu was most recently EVP and CFO of Safeway Inc. Starwood can be found online at http://www.starwood.com.

Bob Mansur has been appointed to the newly created position of national director of training at Oak Street Mortgage LLC, Carmel, Ind.Mr. Mansur, a 20-year veteran of the financial services industry, was most recently vice president for employee and organizational development at Firstring Inc., an international call center company that services mortgage and credit card clients. Oak Street said Mr. Mansur has also worked at Household Finance, American General Finance, and the Money Store. Oak Street can be found online at http://www.oakstreetmortgage.com.

1st Centennial Bancorp, Redlands, Calif., has announced the formation of a Religious Lending Division at its subsidiary, 1st Centennial Bank, to extend the bank's real estate and construction lending to religious organizations.Robert Pavlik has been hired as senior vice president and manager of the division and Brian Day has been named vice president and relationship manager. The new division will be headquartered in the Brea Branch in Orange County, Calif.