Originations

CarrAmerica Realty Corp., Washington, has priced 7 million shares of 7.5% series E cumulative redeemable preferred stock at $25 per share.The company said the underwriters have been granted a 30-day option to buy up to 1.05 million additional shares to cover any overallotments. The joint book-running managers for the offering were Goldman, Sachs & Co. and Wachovia Capital Markets LLC. CarrAmerica, which owns, operates, and develops office properties in 12 markets around the country, can be found on the Web at http://www.carramerica.com.

Michael R. Walker, chairman of Wilmington, Del.-based ElderTrust, has been appointed to the additional posts of acting president and chief executive officer, replacing D. Lee McCreary Jr., who has resigned.The company said it would recognize approximately $1.3 million of severance expense during the third quarter relating to Mr. McCreary's departure. Mr. McCreary, who resigned all his posts with the real estate investment trust and its subsidiaries, said "it's time for new leadership" at ElderTrust. The equity health care REIT can be found online at http://www.eldertrust.com.

Prime Retail Inc., Baltimore, and The Lightstone Group LLC, Lakewood, N.J., have announced an amendment to their merger agreement that would increase the consideration payable to Prime Retail's shareholders and revise its allocation among classes of capital stock.The companies said the aggregate consideration has been increased from $115 million to approximately $115.5 million. Cash amounts would be allocated to shareholders in the following amounts: series A preferred stock, $18.40 per share ($2.15 per share higher than under the original allocation); series B preferred stock, $8.169 per share ($0.491 per share lower); and common stock, $0.17 per share ($0.01 per share lower). Prime Retail, a real estate investment trust, also reported that it recently received notice of a class-action lawsuit by four series A preferred stockholders alleging, among other things, that the REIT's directors breached their fiduciary duties in approving the proposed merger and that the original consideration payable to series A preferred stockholders was unfair and inadequate. The companies can be found online at http://www.primeretail.com and http://www.lightstonegroup.com.

GMAC Commercial Mortgage, Horsham, Pa., has filed a lawsuit against the Port Authority of New York and New Jersey and certain other parties to protect the interests of investors in a $563 million commercial mortgage-backed securities deal that was backed by the World Trade Center.GMACCM had made a $563 million mortgage loan to developer Larry Silverstein for purchasing a 99-year lease on the twin World Trade Center towers, as well as WTC 4 and WTC 5. CMBS bonds backed by the properties were then issued by Wells Fargo as trustee, with GMACCM acting as the servicer. In the complaint filed in the Supreme Court of New York, the commercial mortgage lender is alleging (in its capacity as servicer) that the Port Authority, together with the Lower Manhattan Development Corp. and the Silverstein parties, have violated the rights of the lender under the loan agreement "to be secure with respect to the payment of all principal and interest due under the loan agreement." GMACCM asserts that the Port Authority is not entitled to recover the first $1.5 billion of insurance proceeds on the WTC properties because the properties are going to be restored. Moreover, the defendants have taken steps toward rebuilding the properties without getting GMACCM's consent. In a written statement, Silverstein Properties said, "It is incumbent upon everyone involved to sit down and try to solve GMAC's issues in a way that will enable us to proceed without delay in rebuilding the World Trade Center."

Mortgage lenders added 7,200 full-time employees to their payrolls in July even though mortgage rates began to climb during the month.Data released Friday by the U.S. Bureau of Labor Statistics show that employment in the mortgage banker/broker sector rose from 414,500 in June to 421,700 in July. (There is a one-month lag in mortgage employment data due to recent changes in the BLS employment report.) Next month's employment report is likely to show some slowdown in hiring in August, but lenders are still processing a huge number of loans, and some firms continue to hire loan officers to increase their market share. Over the past 12 months, employment in the mortgage industry has increased by nearly 20%, or 66,900 new hires. Meanwhile, the U.S. jobless recovery continued in August. The BLS reported that nonfarm payrolls declined by 93,000 in August even though the unemployment rate edged down to 6.1% from 6.2% in July. The BLS can be found online at http://stats.bls.gov.

The ratings on classes G through L of Bear Stearns Commercial Mortgage Securities Inc. commercial mortgage pass-through securities, series 2000-WF1, have been lowered by Standard & Poor's Ratings Services.The downgrades were as follows: class G, from BB-plus to BB; class H, from BB to BB-minus; class I, from BB-minus to B-plus; class J, from B-plus to B; class K, from B to CCC; and class L, from B-minus to D. In addition, classes J, K, and L were removed from CreditWatch negative, and the ratings on eight other classes in the deal were affirmed, the rating agency said. The downgrades were attributed to delinquencies, specially serviced loans, and watchlist items. Interest shortfalls have accumulated on classes K and L as a result of appraisal reductions and special servicing fees, S&P said. The rating agency can be found online at http://www.standardandpoors.com.

Criimi Mae, Rockville, Md., has reported that it will take a charge of approximately $2.9 million to its third-quarter earnings in connection with the termination of the employment contracts of three senior executives.The commercial mortgage investor said the employment contracts for David Iannarone, Cynthia Azzara, and Brian Hanson expired in August and were not renewed. The contracts, which were put in place in 2001 to ensure management continuity after Criimi Mae emerged from bankruptcy restructuring, provide for payments of approximately $1 million to each of the three executives with the termination of the contracts. Mr. Iannarone and Ms. Azzara will continue to work with the real estate investment trust on an "at-will" basis, Criimi Mae said. Mr. Iannarone has taken on the position of executive vice president for legal and deal management, and Ms. Azzara has been promoted to EVP, chief financial officer, and treasurer. Mr. Hanson is no longer employed by Criimi Mae, but the REIT said he is likely to enter into a "short-term consulting arrangement" with the company while a search is conducted for an executive to oversee asset management. Criimi Mae can be found online at http://www.criimimaeinc.com.

The Radian Group Inc., Philadelphia, has attributed its decision to pull out of the Mortgage Insurance Companies of America, the trade group that represents the private mortgage insurance industry, to "strategic goals.""Radian has made a strategic decision to discontinue its membership in MICA based on the determination that the company is better served by re-deploying its time and resources in a manner more fitting with our long-term strategic goals as a global credit enhancement company," the company said in a written statement. "These goals focus on growing our mortgage insurance business both domestically and internationally through our new international mortgage team, as well as our financial guaranty and mortgage services business lines." The statement avoids mentioning the split in the industry over Radian Lien Protection. Radian was opposed by MICA and the other six private mortgage insurance companies in the battle over RLP in California. MICA filed a brief with the state's insurance commissioner asking that RLP be declared title insurance. Radian says RLP is a pool mortgage insurance policy, but Commissioner John Garamendi -- siding with the title insurance industry and MICA -- said it was title insurance.

Fair Isaac Corp., San Rafael, Calif., and Kroll Factual Data, Loveland, Colo., have announced the launch of a service for Kroll's business customers -- mortgage brokers, lenders, and others -- that provides an analysis of their applicants' FICO scores.The companies said selected customers can now receive a FICO Score Analysis report with each FICO score and credit report from Kroll. Businesses can then either share the report with the consumer or refer the consumer to a co-branded website where Fair Isaac offers further information and interactive tools. One of the tools is a FICO score simulator designed for "what if" sessions to help applicants understand how to improve their scores, the companies said. "Providing customers with insight into their FICO scores can give businesses a distinct competitive advantage," said Sue Simon, vice president of myFICO.com at Fair Isaac. James Donnan, Kroll's senior vice president, said his company's stature in the credit information arena "makes us the perfect partner for bringing score interaction to new levels for loan originators and loan applicants nationwide." The companies can be found online at http://www.fairisaac.com and http://www.factualdata.com.

The average 30-year fixed mortgage rate rose to 6.44% for the week ending Sept. 5 from 6.32% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 5.66% to 5.77%, and the average rate for one-year Treasury-indexed adjustable-rate mortgages climbed from 3.88% to 3.98%. Fees and points averaged 0.6 points for all three mortgage categories. "The 10-year Treasury bond yields continue to climb, raising mortgage rates as they go," said Amy Crews Cutts, Freddie Mac's deputy chief economist. "Also contributing to the current rise in rates is the growing number of favorable news reports about an upturn in economic growth. It is important to note that we are also seeing a moderation in the rate of house price appreciation, and that should help counter higher mortgage rates, keeping housing affordable and the industry busy." A year ago, the average 30-year and 15-year fixed rates were 6.15% and 5.56%, respectively, and the average one-year ARM rate was 4.35%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.

San Francisco luxury home prices fell slightly in the second quarter, but luxury values continued to rise in Southern California, according to First Republic Bank.The average price of a luxury home -- defined as a home worth more than $1 million -- was $2.18 million in the Bay area, down 0.1% from one year ago. The second quarter was the region's third consecutive quarter of luxury price contraction. But prices rose to an all-time high in San Diego, where the $1.46 million average was 3.6% higher than the average of a year earlier. Los Angeles luxury home prices rose even more dramatically, gaining 12.9% over the same period. LA's $1.46 million average was its highest since 1992.

Jack Cassidy has been elected president and chief executive officer of America First Apartment Investors Inc., a real estate investment trust based in Omaha, Neb.Mr. Cassidy has been affiliated with America First since 1987, most recently as head of its real estate group, the REIT said. Other officers appointed by the REIT's board of directors are Mark Hiatt, as chief financial officer, treasurer, and secretary; Joseph Grego, as executive vice president for real estate; Maurice Cox, as executive vice president for investor relations; and Lisa Rezac, as controller.

Lexington Corporate Properties Trust, New York, has expanded its unsecured credit facility from $60 million to $100 million.The new credit facility, which matures in August 2006 (with a one-year extension option), bears interest at a rate of 150-250 basis points over the London interbank offered rate, depending on the number of properties Lexington owns free and clear of mortgage debt, the company said. The real estate investment trust can be found on the Web at http://www.lxp.com.

Manufactured Home Communities, Chicago, is in the process of obtaining a $500 million loan commitment from an unnamed institutional lender.The real estate investment trust said the lender will make loans secured by mortgages on 56 heretofore unencumbered properties. The loans will bear a blended annual interest rate of 5.92%, with an average term of about nine years. "This transaction is based upon the company's belief in the stability of its cash flow, and upon the attractive interest rate and financing terms available for our quality assets," said MHC chairman Sam Zell. "We believe the unique nature of MHC's assets allows a higher debt level than is typically appropriate for other REITs." Proceeds from the financing will be used for a special dividend and possibly for share repurchases or other corporate purposes such as debt repayment, redemption of preferred operating partnership units, and property acquisitions. MHC has been authorized to repurchase up to three million shares of its common stock, the REIT said.

Six classes of Asset Securitization Corp.'s commercial mortgage pass-through certificates, series 1997-D5, have been downgraded by Fitch Ratings.The downgrades were as follows: class A-5, from BBB to BB; class A-6, from BB-plus to B; class A-7, from BB to B-minus; class B-1, from B to C; class B-2, from CCC to C; and class B-3, from CC to C. In addition, classes A-1A through A-1E were placed on Rating Watch Negative, and classes B-1 through B-5 were removed from Rating Watch Negative. Fitch attributed the downgrades to expected losses and interest shortfalls stemming from the declining value of the Hyde Park loan, which represents 2.8% of the pool, and several other specially serviced loans. "Principal losses are expected to affect classes B-1 through B-6, with most losses due to occur after the disposition of the Hyde Park loan, secured by a vacant hospital in Chicago," the rating agency said. Fitch can be found online at http://www.fitchratings.com.

Matrix Bancorp Inc., Denver, has reported the completion of the sale of the wholesale platform of its subsidiary Matrix Financial Services Corp. to AmPro Mortgage Corp.The deal does not affect Matrix's mortgage servicing platform, the company said. Matrix can be found online at http://www.matrixbancorp.com.

Thornburg Mortgage Home Loans Inc., the mortgage lending subsidiary of Thornburg Mortgage Inc., Santa Fe, N.M., has announced that it will begin originating single-family residential mortgages in New York State and the District of Columbia.Furthermore, TMHL has received approval to lend in New Hampshire, Hawaii, and Washington and should start originating in those states by Oct. 1, the company said. "The New York City area in particular is compelling," said Joseph Bedal, TMHL's chief executive officer. "With the median existing-home price in New York City of $350,900, it's essentially a market comprised of jumbo loans, which is our primary lending focus." In addition, Thornburg is now accepting mortgage loans from correspondent lenders on properties vested in limited liability corporations and trusts. LLCs and trusts are used by consumers for tax and estate planning purposes, the company explained.

Home prices increased at an annualized rate of 4.6% nationwide in the second quarter, down from a revised rate of 5.0% in the first quarter, according to the Conventional Mortgage Home Price Index released by Freddie Mac.The index showed that the New England states recorded the largest gains in home prices in the second quarter, rising at an annualized rate of 6.9%. The Pacific states followed with a 6.3% annualized growth rate, and the South Atlantic states of Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and West Virginia, along with the District of Columbia, finished third with a 5.9% growth rate. "The second quarter saw the lowest mortgage interest rates in 45 years and corresponding record high home sales," said Frank Nothaft, Freddie Mac's chief economist. "Growth in home prices has slowed over the past two years from the 8% to 8 1/2% growth we saw in 2001 to a more sustainable growth rate of around 5% to 6% on an annual basis." The index was jointly developed by Freddie Mac and Fannie Mae. Freddie Mac can be found online at http://www.freddiemac.com.

The Radian Group Inc. is no longer a member of the Mortgage Insurance Companies of America, effective July 1, a spokesman for the trade group and a spokeswoman for the company have confirmed.When MICA issued its monthly statistics for July, a footnote indicated that Radian did not provide data for the report. The remaining private mortgage insurers recorded $30.6 billion in primary new insurance written during July, with $28.2 billion in traditional and $2.4 billion in bulk. In June, with Radian included in the data, there was $36.4 billion of primary new insurance written. Application volume fell from 334,385 (with Radian data) in June to 291,678 (without Radian) in July. Meanwhile, the cure/default ratio continued to slip, going from 90.5% in June to 78.5% in July, with 35,131 cures and 44,743 defaults. MICA can be found online at http://www.micanews.com.

The Market Composite Index, an overall measure of mortgage applications, fell to 628.7 on a seasonally adjusted basis during the week ended Aug. 29 from 638.6 the week before, while the Refinance Index fell below 2000 for the first time since June 2002, according to the Mortgage Bankers Association of America's Weekly Mortgage Applications Survey.On an unadjusted basis, applications were down 2.7% on the week and 40.3% from the level recorded a year earlier. On a seasonally adjusted basis, the Purchase Index increased from 375.5 to 396.1, and the Refinance Index declined from 2169.0 to 1981.5. Refinancings represented 45.9% of total applications, down from 48.9% the previous week, while adjustable-rate mortgages accounted for 23.3%. The average contract interest rate for 30-year fixed-rate mortgages rose from 6.22% to 6.25%, and points (including the origination fee) decreased 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.mbaa.org.