Originations

Inland Western Retail Real Estate Trust, Oak Brook, Ill., has announced an initial public offering of 270 million shares of common stock.The IPO consists of 250 million shares priced at $10 per share and 20 million shares, issuable under Inland Western's distribution reinvestment program, priced at $9.50 per share. Inland Securities Corp., an affiliate of the company, will manage the underwriting of the best-efforts offering. Inland Western, a real estate investment trust, is part of the Inland Real Estate Group of Companies, which can be found online at http://www.inlandgroup.com.

A week ago RBC Mortgage president Dave Matthews was bullish on the future of his company. Today, Mr. Matthews is out in the cold.In a statement released after the market closed Thursday, the Royal Bank of Canada-owned RBC revealed that Mr. Matthews had left the company, "to pursue other interests." As of MortgageWire's deadline Friday, Mr. Matthews could not be reached for comment. A company spokeswoman would only say, "He decided to leave." He is scheduled to speak at the upcoming annual convention of the Mortgage Bankers Association of America. Mr. Matthews joined the Chicago-based RBC in the spring of 2000, leaving Ultraprise, a business-to-business mortgage firm. A well-known industry veteran, he started his career in mortgage banking at Margaretten & Co., Edison, N.J. In the wake of his departure, the company has named Jonathan Threadgill as its new president. Mr. Threadgill was chief executive of Sterling Capital Mortgage, Houston, which RBC recently acquired. With the Sterling acquisition, RBC now ranks among the top 20 residential funders in the U.S., according to statistics compiled in the Quarterly Data Report.

Federal Realty Investment Trust, Rockville, Md., has announced the closing of a new $550 million unsecured credit facility to replace its $300 million revolving credit facility and $125 million term loan.The equity real estate investment trust said the new facility consists of a $150 million five-year term loan, a $100 million three-year term loan, and a $300 million three-year revolving credit facility, with a one-year extension option. The term loans bear interest at 95 basis points over the London interbank offered rate, and the revolving facility is priced at 75 bps over LIBOR. The REIT can be found on the Web at http://www.federalrealty.com.

Peyton "Chip" Owen Jr. has been named executive vice president and chief operating officer of Equity Office Properties Trust, Chicago.The real estate investment trust said Mr. Owen will be responsible for EOPT's regional operations and functions such as leasing, marketing, and real estate services. Mr. Owen, 46, was formerly COO of Jones Lang LaSalle's Americas Region (comprising the United States, Canada, and Mexico). He will take over as COO on Oct. 20. EOPT can be found online at http://www.equityoffice.com.

Class M of GMAC Commercial Mortgage Securities Inc. series 2000-C1 has been downgraded from B-minus to CCC by Fitch Ratings and removed from Rating Watch Negative.In addition, the rating on class N was affirmed and removed from Rating Watch Negative, and the ratings on 13 other classes in the deal were affirmed. Fitch attributed the downgrade to expected losses on seven delinquent and specially serviced loans, which will cause a reduction in credit enhancement.

Two classes of Diversified Asset Securitization Holdings II LP have been downgraded by Fitch Ratings.The downgrades were as follows: class A-2L, from AA-minus to A-minus; and class B-1, from BBB-minus to BB-minus. Class B-1 was also removed from Rating Watch Negative. Fitch said DASH II is a collateralized debt obligation that was originated and managed by Asset Allocation & Management LLC, but that Western Asset Management Co. became the substitute asset manager for AAMCO in October 2002. The portfolio backing the CDO consists of residential and commercial mortgage-backed securities and commercial and consumer asset-backed securities. Fitch said its review of the credit quality of the collateral and a cash-flow analysis indicated that the original ratings assigned to the downgraded classes "no longer reflect the current risk to noteholders." Fitch can be found online at http://www.fitchratings.com.

Class C of HarbourView CDO III Ltd. -- which is backed by residential and commercial mortgage-backed securities, among other securities -- has been downgraded from BBB to BBB-minus by Fitch Ratings.Fitch also affirmed the ratings on two other classes of the collateralized debt obligation. The CDO is backed by a portfolio of RMBS, general asset-backed securities, CMBS, and other CDOs. The rating agency attributed the downgrade to a continuing deterioration in the credit quality of the underlying portfolio. "HarbourView III holds a number of securities that Fitch has identified as having the potential to impair the ability of the CDO to pay ultimate interest and principal on the class C notes," Fitch said. "The portfolio has experienced a significant credit deterioration in various sectors, including aircraft, manufactured housing, commercial real estate, small business loans, subprime credit card, and mutual fund fee securitizations." Fitch can be found online at http://www.fitchratings.com.

Simon Property Group and Westfield America have withdrawn their $20-per-share cash offer for Taubman Centers common shares, bringing an end to the takeover battle for Taubman that was initiated almost a year ago.The signing into law of an amendment to the Michigan Control Share Acquisition Act by Michigan Gov. Jennifer Granholm has prompted the Indianapolis-based Simon and the U.S. subsidiary of Australia-based Westfield America Trust to put an end to their bid, the two companies said. The amendment was made to nullify an earlier ruling by a U.S. District Court in Michigan that the Taubman family and their affiliates could not vote their shares against the tender offer because Taubman's activities created a control share acquisition under the act. The enactment of the amendment with retroactive effect enables the Taubman faction to block the Simon/Westfield takeover attempt without the approval of other shareholders. The Bloomfield Hills, Mich.-based Taubman said it is "pleased that Simon Property and Westfield America have withdrawn their tender offer."

The average 30-year fixed mortgage rate rose to 5.95% for the week ending Oct. 10 from 5.77% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 5.10% to 5.26%, and the average rate for one-year Treasury-indexed adjustable-rate mortgages declined from 3.72% to 3.69%. Fees and points averaged 0.6 points for all three mortgage categories. "Not only did the market get good news about September employment last week, but it was further bolstered by the upward revision of jobs in August," said Frank Nothaft, Freddie Mac's chief economist. "This inspired a little optimism in the market that we may have bottomed out as far as job losses are concerned." A year ago, the average 30-year and 15-year fixed rates were 5.98% and 5.34%, respectively, and the average one-year ARM rate was 4.23%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.

Transnational Financial Network Inc., San Francisco, has announced that it has arranged a $20 million warehouse facility with an undisclosed lender.Joseph Kristul, Transnational's chairman and chief executive, said the line has a borrowing rate of 2.25% above the 30-day London interbank offered rate. "Not only will this facility provide additional capability, but also this new facility carries a borrowing cost that is the lowest of all our borrowing facilities," Mr. Kristul said. "Full utilization of this credit line in place of credit lines we previously have used would result in annual interest expense savings of $400,000 to $600,000 when compared to what our financing costs were in the first half of this calendar year."

PMC Capital Inc. and PMC Commercial Trust, both of Dallas, have announced the completion of a $92.9 million joint structured loan securitization consisting of variable-rate notes issued by a newly formed joint venture and secured by a portfolio of their loans.PMC Capital received gross proceeds of $52.0 million, and PMC Commercial received $40.9 million. The companies said the proceeds were used to pay the costs of the transaction, fund the required reserve balance, and repay the balances on their revolving credit facilities. The remainder will be used for working capital and to originate additional loans. The debt was issued by a newly formed special purpose affiliate of the companies at a variable interest rate, reset quarterly, of 1.25% above the 90-day London interbank offered rate. The initial rate was 2.41%. PMC Capital can be found online at http://www.pmccapital.com.

American Mortgage Network, San Diego, has received a $100 million warehouse line of credit from GMAC Residential Funding Corp., Minneapolis.The new line brings AmNet's total warehouse capability to $1.4 billion. John M. Robbins, chief executive of AmNet, said the deal "enhances our ability to broaden our product menu and offer our brokers new alternatives for their customers. The new purchase environment encompasses a wide range of borrowers, many of whom want alternatives to the traditional 30- and 15-year fixed-rate product." Other warehouse providers for AmNet include Countrywide Warehouse Lending, UBS Warburg Real Estate Securities Inc., and JPMorgan Chase Bank. AmNet can be found online at http://www.amnetmortgage.com.

Issuance of commercial mortgage-backed securities for 2003 could reach $72 billion, according to Moody's Investors Service, making 2003 the second- or third-highest year ever for domestic CMBS issuance.Speaking at a Moody's CMBS conference, Jim Duca, a Moody's managing director and CMBS analyst, said issuance had reached $57 billion as of the third quarter, with about $15 billion in the pipeline. Moody's is seeing more fusion transactions (in which a large deal is included in a CMBS pool) this year, with 65% of Moody's-rated CMBS deals year-to-date falling in this category, compared with 57% of such deals for all of 2002. These deals are becoming more common in the post-9/11 market, Mr. Duca said. Another factor that has aided CMBS issuance this year is historically low interest rates. This is likely to cause some refinance risk, to the extent that interest rates rise, especially for floating-rate mortgage loans of the 2003 vintage, Mr. Duca said.

Washington Mutual Inc., Seattle, has announced that it will open three new multifamily lending offices on the Eastern Seaboard by the end of the year, one each in Boston, Miami, and Washington.WaMu said the planned openings are the company's latest moves to boost its multifamily lending presence in the East. The multifamily office it opened last year in New York City generated $450 million in applications and more than $70 million in closed loans in its first 120 days, WaMu reported. Al Brooks, executive vice president and division executive of WaMu's multifamily lending division, said the lender plans to hire loan consultants, underwriters, appraisers, and closers in each of the new markets. The bank recently hired Jim Whitehouse as senior vice president and Eastern region manager to oversee its multifamily lending in the East, WaMu said. The company now has multifamily lending offices in Los Angeles; Orange County, Calif.; San Diego; Sacramento, Calif.; Oakland, Calif.; Portland, Ore.; Seattle; Denver; Minneapolis; Chicago; and New York. WaMu can be found online at http://www.wamu.com.

Lenders should already be feeling a downdraft if Freddie Mac's latest forecast is right, since originations of conventional mortgages are projected to plunge by 43% from the third to the fourth quarter -- with another significant drop coming in the first quarter of the new year.Freddie Mac economists estimate that third-quarter originations totaled $858 billion, while the forecast for fourth-quarter originations is $489 billion. Even though 30-year mortgage rates will remain steady at 6% over the next two quarters, conventional mortgage originations will drop by another 19% in the first quarter to $395 billion, before rising to $431 billion in the second quarter. Meanwhile, originations of loans insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs should decline by only 15% from the third to the fourth quarter, Freddie's economists predict. Overall, Freddie Mac's updated forecast calls for $1.85 trillion in single-family mortgage originations in 2004, compared with $3.26 trillion this year, as refinancings drop from two-thirds of originations to 36%.

The Market Composite Index, an overall measure of mortgage applications, jumped to 817.3 on a seasonally adjusted basis during the week ended Oct. 3 from 707.2 the week before, according to the Mortgage Bankers Association of America's Weekly Mortgage Applications Survey.On an unadjusted basis, applications were up 15.7% on the week, but down 38.5% from a year earlier. The Purchase Index increased from 398.0 to 441.1 on a seasonally adjusted basis, while the Refinance Index surged from 2505.8 to 3005.5. Refinancings represented 55.0% of total applications, up from 53.1% the previous week, while adjustable-rate mortgages accounted for 22.7%. The average contract interest rate for 30-year fixed-rate mortgages rose from 5.67% to 5.79%, and points (including the origination fee) increased from 1.26 to 1.56 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mbaa.org.

Tanger Factory Outlet Centers, Greensboro, N.C., and an affiliate of New York-based Blackstone Real Estate Advisors are acquiring a portfolio of nine factory outlet centers from Charter Oak Partners for $491 million, including the assumption of about $187 million of debt.The approximately 3.3 million-square-foot portfolio is being acquired through a joint venture in which Tanger has a one-third interest and Blackstone a two-thirds interest, Tanger said. Stanley K. Tanger, Tanger's chairman and chief executive officer, said he expects the acquisition to further the company's strategy of "creating an increased presence in high-end resort locations." The acquisition is also adding to Tanger's current portfolio of 33 properties. Tanger will manage the properties on behalf of the joint venture.

Nationwide Advantage Mortgage Co., Des Moines, Iowa, and the National Black Nurses Association have launched a program designed to help association members finance or refinance a home.The Home Buyer's Assistance Program allows members of the NBNA to take advantage of an existing low-cost, low-rate mortgage program, either online or via a toll-free number. The Internet application is designed to give NBNA members a chance to review various loan options, and then use a streamlined loan application process that provides binding approval decisions in as little as 10 minutes, NAMC and the NBNA said. "With out product you won't be asked for your life story -- the process is so streamlined that some borrowers don't even need to provide verification of their income," said Robert Kallio, associate vice president of marketing for NAMC. The organizations can be found online at http://www.nationwideadvantage.com and http://www.nbna.org.

Inflation should remain low despite accelerating economic growth, keeping mortgage rates low and the housing market near historic highs in 2004, according to the National Association of Realtors.NAR chief economist David Lereah is forecasting annualized growth of 5.6% in the gross domestic product for the current quarter, followed by 4% growth next year. "Many industries, including the hard-hit manufacturing sector, are now facing increased demand, and we can expect strong economic growth into next year," Mr. Lereah said. "With no inflation in sight, we don't expect the Federal Reserve to move on interest rates until the third quarter of 2004." The NAR economist is projecting that next year will be the third-best on record for housing, with 5.48 million existing-home sales and 944,000 new-home sales. That would come on the heels of what he forecasts will be a record year for resales and new homes in 2003, with sales of 5.89 million and 1.05 million, respectively. The NAR can be found online at http://realtor.org.

Franklin Financial Group, Southfield, Mich., has announced that it will expand its presence coast-to-coast through the acquisition of Approved Federal Savings Bank, a wholesale mortgage provider based in Virginia Beach, Va.The terms of the deal were not disclosed. Upon the closing of the deal, Franklin will acquire AFSB's wholesale residential mortgage lending operations in Virginia Beach; Orlando, Fla.; and Huntington Beach, Calif. Ownership rights will be transferred to Franklin's chief executive officer, Bob Pilcowitz, and its chief operating officer, Edan King, but Franklin and AFSB will operate as separate entities. Both transactions (which are subject to regulatory and shareholder approval) are expected to close by the end of 2003. Franklin said it plans to restructure AFSB initially as a community bank that will continue to operate through its current headquarters. Franklin also said it plans to expand AFSB's loan product mix with "an array of consumer-oriented financial service products," and will diversify from a residential mortgage lender to a nationwide financial services operation, serving both individual and commercial needs.