Originations

David S. Loeb, co-founder of Countrywide Credit Industries and IndyMac Bancorp Inc., died June 30 in Sparks, Nev., at the age of 79, IndyMac has reported.Mr. Loeb, who was also chairman emeritus of IndyMac, co-founded Countrywide (now Countrywide Financial Corp.) with Angelo Mozilo in 1969 and served as its president and chairman from March 1969 through February 2000. In 1985, Messrs. Loeb and Mozilo founded Countrywide Mortgage Investments Inc., a real estate investment trust, which evolved into IndyMac Bancorp, IndyMac said. "David was a giant in the mortgage industry," said Michael W. Perry, IndyMac's chairman and chief executive officer. ".... His wisdom and industry experience, coupled with his strategic vision, strongly influenced IndyMac's foundation and helped us become what we are today. He was also a great mentor and friend, and we will miss him."

E-Loan Inc., Dublin, Calif., was scheduled to join the Russell 2000 and Russell 3000 stock indices July 1, according to the online mortgage lender.E-Loan said its stock was included in a preliminary list of index additions issued June 27 by Frank Russell Co. as a result of the company's growth in market capitalization. Membership in Russell's 21 U.S. equity indices is determined by multiplying the common stock price by the number of shares outstanding, "in addition to style attributes," E-Loan said. "The Russell indexes are widely used by managers for index funds and as benchmarks for both passive and active investment strategies," E-Loan said. The Russell 3000 consists of the 3,000 largest U.S. companies, by market capitalization, as of the end of May. The largest 1,000 make up the Russell 1000, and the remaining 2,000 constitute the Russell 2000, E-Loan said. The company can be found on the Web at http://www.eloan.com.

American Financial Realty Trust, a real estate investment trust based in Jenkintown, Pa., has made its first property acquisition following a recent initial public offering.The REIT has acquired a portfolio of 158 properties, totaling approximately 8.1 million square feet, for $769.8 million in a sale/leaseback transaction with Bank of America. BoA is leasing 5.2 million square feet of the portfolio for 20 years on a triple-net basis (whereby the bank will be responsible for some property maintenance expenses). The bank is also leasing an additional 804,000 square feet on a short-term basis, the REIT said. Another 813,000 square feet of space is leased to other tenants. The portfolio includes office buildings, banking, and operations centers in 19 states, including the Bank of America Center, a 1.03 million-square-foot Chicago building. "This transaction is consistent with our strategy to be the preferred landlord to financial institutions with high credit profiles," said Nicholas Schorsch, chief executive officer of AFRT.

The Eleventh Federal Home Loan District Cost of Funds Index fell nearly 8 basis points in May, setting a new low.The index, calculated on the cost of mortgage money for thrifts that belong to the Federal Home Loan Bank of San Francisco, is now at 2.130%. From March to April, the index remained virtually static. The Freddie Mac Primary Mortgage Market Survey shows the monthly average commitment rate on the one-year adjustable-rate mortgage falling 47 bps from January to June. The average, which actually increased 6 bps in April, has fallen by 14 bps since then.

National Closing Solutions Inc., Auburn, Calif., has announced the sale of its post-close servicing division to Robertson & Anschutz PC, a Houston-based law firm that specializes in the needs of the mortgage industry.The terms of the sale were not disclosed. Current NCS customers will be serviced by R&A, with the billing being "the only noticeable difference," NCS said. David Tandy, chief executive officer of NCS, said the company has decided to focus its efforts on title and settlement services and appraisals. "As document preparation attorneys servicing the real estate market, R&A's service offering dovetails with the post-closing NCS currently provides," he said. NCS can be found online at http://www.nationalclosingsolutions.com, and R&A can be found at http://www.radocs.com.

Private mortgage insurance companies wrote $35.4 billion of new policies in May, up 14.6% from April's $30.9 billion, according to data collected by the Mortgage Insurance Cos. of America.Of that total, $29.3 billion came from the traditional channel and $6.1 billion from the bulk channel. According to a Citigroup Smith Barney report on the industry, persistency remains a problem, falling to a record low 49.2% in May. Another issue is growing defaults. The cure/default ratio fell from 104.0% in April to 81.3% in May. "While this seems like a dramatic drop, it is consistent with the seasonal pattern observed over the last several years," said Citi analyst Matthew L. Vetto, the author of the report. In 2002, the ratio fell from 100% in April to 96% in May; in 2001, from 100% to 85%; and in 2000, from 103% to 75%. MICA can be found on the Web at www.micadc.org.

One of every five Asians and Pacific Islanders who attempt to buy or rent a house is discriminated against, according to an 11-city study released by the Department of Housing and Urban Development.The study found that, among Asians and Pacific Islanders, 21.5% of prospective renters experienced "consistent adverse treatment" relative to comparable whites, and 20.4% of prospective homebuyers experienced such treatment, HUD said. These rates of discrimination are similar to those found for African-Americans and Hispanics in earlier studies, the agency said. The study, conducted by the Urban Institute, was based on 889 paired tests, a technique whereby a minority and a white non-Hispanic pose as otherwise identical homeseekers with comparable housing needs, income, assets, and debt. "In addition to using the research findings to document our nation's progress in reducing housing discrimination, we also will use the data to better target HUD's education and enforcement resources," said Carolyn Peoples, HUD's assistant secretary for fair housing and equal opportunity. Chicago, Honolulu, Los Angeles, New York, San Francisco, and Washington were among the cities covered by the study. HUD can be found online at http://www.hud.gov.

LNR Property Corp., Miami Beach, Fla., has announced the completion of a private placement of $350 million of 7 5/8% senior subordinated notes due 2013 to institutional investors.LNR said it expects to use approximately $216 million of the proceeds to redeem its 9 3/8% senior subordinated notes due 2008 at a price equal to 104.688% of their principal amount plus accrued interest of approximately $7 million. The remainder of the proceeds will be used to reduce senior debt and for general corporate purposes. LNR, a real estate investment, finance, and management company, can be found online at http://www.lnrproperty.com.

Housing affordability issues are concerning an increasing number of voters, according to a National Low Income Housing Coalition poll.Over 52% of the respondents say they or someone they know have had trouble meeting monthly housing expenses such as rent, mortgage payments, or household utilities in 2002, the coalition reported. Affordability problems extend across income lines. Of the respondents who did not face housing affordability problems, 76% said they were concerned about the lack of affordable housing some Americans face, with over one-third of all respondents being "very concerned." About 82% of the respondents consider the provision of adequate federal funding for low-income housing to be important, while 57% agreed that it is more important for Congress to fund affordable housing than to cut taxes, the coalition said. The telephone poll of 800 likely voters was conducted May 27-29 by the bipartisan polling firms of Laszlo and Associates Inc. and Public Opinion Strategies Inc.

America's Senior Financial Services, Jupiter, Fla., has announced that Jupiter Mortgage Corp., a subsidiary, has entered into an agreement with a securities firm for the securitization and bulk sale of mortgage loan production into the secondary market.America's Senior said Jupiter expects to complete its first securitization and bulk sale in July. Nelson Locke, chief executive officer of America's Senior, said the company's strategic plan involves "multiple business platforms," including retail forward and reverse mortgage loan origination, correspondent wholesale lending, branch partners, and secondary marketing. "This agreement represents the launch of the secondary marketing platform," he said. America's Senior can be found online at http://www.americassenior.com, and Jupiter can be found at http://www.jupiter-mortgage.com.

First Union Real Estate Equity and Mortgage Investments, a stapled-stock real estate investment trust based in New York, and Gotham Partners LP, formerly a major shareholder in the REIT, have announced an agreement terminating their proposed merger.The proposed merger of First Union into Gotham Golf Corp. has been enjoined by an order of the New York State Supreme Court for New York County that has been appealed by both parties, the companies reported. Under the termination pact, First Union made a $2.4 million termination payment and has purchased all the approximately 5.84 million common shares owned by Gotham and its affiliates at $1.90 per share. First Union said it has no plans to pursue an alternative transaction and intends to continue operating as a REIT.

Simon Property Group and Westfield America have extended to Aug. 1 their $20-per-share all-cash tender offer for the common shares of Taubman Centers, Bloomfield Hills, Mich.Taubman Centers is now trying to get a favorable interpretation of a Michigan anti-takeover law in a bid to ward off the Simon/Westfield takeover attempt, which was launched last November. The Indianapolis-based Simon has said that about 23% of Taubman Centers common shares have been tendered to them so far. In response, Taubman said the percentage "is clearly insufficient to meet Simon's own minimum tender offer condition or to purchase the company, since at least two-thirds of Taubman Centers' 81 million issued and outstanding voting shares must approve any sale transaction or amendment to corporate charter." Simon can be found online at http://www.simon.com, and Taubman can be found at http://www.taubman.com.

Prime Retail Inc., a Baltimore-based real estate investment trust, has announced that it is negotiating with an undisclosed third party about a possible sale of the REIT.In connection with the talks, Prime Retail's financial adviser, Houlihan Lokey Howard & Zukin, has "facilitated limited discussions" with holders of the REIT's series A and series B preferred stock regarding the possible allocation of a consideration of approximately $115 million if an acquisition is agreed to, the REIT said. The stockholders involved in the discussions have signed confidentiality agreements, Prime Retail said. The REIT can be found online at http://www.primeretail.com.

Community groups and housing advocates on Chicago’s northwest side are opening the Northwest Side Housing Center to provide homeowners with a variety of services, according to Neighborhood Housing Services, one of the center’s founders.The center will offer pre-purchase counseling, homebuyer education classes to help people avoid predatory loans, and default and foreclosure counseling. NHS will also offer several loan products through the center. The center was established by a partnership of three community groups -- NHS, Northwest Neighborhood Federation, and Rogers Park Community Development Corp. Funding is to be provided by several banks and financial institutions, as well as the Chicago Department of Housing.

New Century Financial Corp., Irvine, Calif., has increased its warehouse funding capabilities by $750 million to a total of $4.5 billion from five providers.The line of credit from Morgan Stanley Mortgage Capital Inc. increased from $900 million to $1.3 billion, and there was a $250 million increase in the facility from UBS Warburg Real Estate Securities Inc., making that line $1.0 billion, New Century said. In addition, a $100 million increase in the line from CDC Mortgage Capital Inc. brings that facility up to $570 million. Lines of $850 million from Salomon Brothers Realty Corp. and $750 million from Bank of America remain unchanged.

The AFL-CIO Building Investment Trust, Washington, has launched an investment program that is expected to generate up to $1 billion in multifamily development investment by 2005.BIT, a pooled real estate fund serving pension plans, is looking at financing 25-30 projects, creating up to 4,000 multifamily housing units, and providing union construction work nationwide, the AFL-CIO said. The first investment under the initiative is a joint venture with the New York City-based Dermot Co. on the New Development at Kew Gardens Hills, a $109 million mixed-income, multifamily project in Queens. BIT is providing $34.9 million in funding for the 388-unit project. The initiative will invest in projects in major urban communities nationwide and seek third-party debt financing and possibly co-investment from other equity providers, the AFL-CIO said. The projects are expected to meet BIT's requirements for use of exclusively union labor.

The U.S. Bank Consumer Lending Division has hired Abdul Rajput to start a manufactured housing finance business.The company says it is looking to partner with reputable, preferred dealers and manufacturers to help originate loans. Its target consumer, one with "low-risk demographics," is similar to those in its recreation finance business. "We are keenly aware of what it takes to succeed in this industry," said Randy Griffith, executive vice president of U.S. Bank Consumer Lending. "I am confident that with Abdul’s leadership and our proven track record with start-up operations, we will be successful while differentiating ourselves from others in the manufactured housing industry."

Standard & Poor's has lowered its corporate credit rating on Associated Estates Realty Corp., a real estate investment trust based in Richmond Heights, Ohio, from BB-minus to B-plus.In addition, the rating on the REIT's preferred stock was lowered from B-minus to CCC-plus. The rating outlook remains negative. S&P attributed the downgrades to deterioration at the property level that has weakened the REIT's cash flow and "already low" coverage measures. "The negative outlook remains in place due to the persistent challenges the company faces in its portfolio and markets," said S&P analyst George Skoufis. "However, the company's current ratings do acknowledge a very manageable near-term debt maturity schedule and largely fixed-rate capital structure." The rating agency can be found online at http://www.standardandpoors.com.

MGIC Investment Corp., Milwaukee, has taken a pair of hits to its ratings from two different sources.Zacks.com, the Chicago-based online arm of Zacks Investment Research Inc., gave MGIC a "#4 Sell" ranking, which means Zacks thinks the stock should be sold or avoided for the next one to three months. MGIC's earnings estimates for this year and next "have moved lower by about 2% and 4%, respectively, from levels three months ago," Zacks said. "Analysts have also kept their distance from other companies in MGIC Investment's industry, including PMI Group." Meanwhile, Standard & Poor's Ratings Services has revised its outlook on MGIC to negative. Charles Titterton, an analyst for S&P, explained that the negative outlook "reflects the possibly temporarily less robust earnings picture of the organization relative to [those of] its competitors. More specifically, higher losses and continued industrywide declining profitability in the flow market could further affect earnings."

Standard & Poor’s has put GE Mortgage Insurance Corp., Raleigh, N.C., on CreditWatch Negative and threatened to drop the AAA rated mortgage insurer (one of only two with that rating) to AA-plus.S&P said the move was made because of changes in its ratings criteria that "limit the rating support for a strategically important subsidiary to one notch below the rating on the parent. In addition, S&P is uncertain as to General Electric’s long-term plans for its operations within the insurance sector." A statement issued by GEMICO said there is no change in the financial condition of the company, and that it "continues to hold capital well in excess of S&P 'AAA' requirements." GEMICO also noted that the other two rating agencies, Fitch Ratings and Moody's Investors Service, have both reaffirmed the AAA rating of the company. S&P is looking to meet with GE management in the next month, and based on that discussion it says it will decide whether to reaffirm the AAA rating or cut it one notch.