Originations

Andrew J. Hannigan has been promoted to chairman of Centex Homes, a Dallas-based homebuilder, and Robert D. Hillman has been promoted to president of the company.Centex said Mr. Hannigan, 51, will retain his title of chief executive officer. He succeeds Timothy R. Eller as chairman, who will focus on his responsibilities as president and chief operating officer of Centex Corp., the parent company of Centex Homes. Mr. Hillman, 52, will retain his title of COO while assuming Mr. Hannigan's former role as president of Centex Homes. The homebuilder can be found online at http://www.centexhomes.com.

Optimum Mortgage Group, Charlotte, N.C., has announced the opening of a regional origination center in Charlotte to seek new mortgage customers in several states.The center will service customers in North and South Carolina, Florida, and Tennessee. Sam Kakitsis, a new addition to Optimum, will oversee the center.

Insurance companies are still charging high premiums for terrorism insurance despite a federal backstop that covers nearly 90% of all claims, according to a report by the Consumer Federation of America.The consumer group opposed the terrorism insurance bill that Congress passed five months ago, and now reports that insurers are still demanding excessive rates from their higher-risk customers. "To make matters worse, insurers are refusing to cover some kinds of terrorist attacks and don't appear to be granting refunds to consumers who deserve them," CFA director of insurance Robert Hunter said. Gary Karr, a spokesman for the American Insurance Association, said the law is not perfect, but that in general it is working. "It is getting insurance to the people who needed it," Mr. Karr said. But the CFA contends that Congress needs to take a look at the implementation of the Terrorism Risk Insurance Act. "It is time for Congress to get wise to the insurance industry's tricks, and hold tough oversight hearings," Mr. Hunter said.

Weingarten Realty Investors, Houston, has filed a universal shelf registration statement with the Securities and Exchange Commission to permit the sale of up to $1 billion of securities to the public.The shelf registration, which has not become effective, provides for the issuance of debt, stock, and warrants, the company said. Weingarten, a real estate investment trust that chiefly owns shopping centers and industrial properties, can be found on the Web at http://www.weingarten.com.

J.P. Morgan Chase, the corporate parent of Chase Home Finance, has reported earnings of $1.4 billion ($0.69 per share) for the first quarter, up from $982 million ($0.48 per share) a year earlier.Supplemental earnings information provided by the company indicate that substantial revenue from the trading of fixed-income products, among them mortgage-backed securities, was a strong contributor to earnings. The company said a 39% increase in earnings from its Chase Financial Services unit, driven notably by record revenues and earnings from Chase Home Finance, was also among the highlights of the first-quarter results. The company's earnings supplement indicates that balance sheet originations in Chase's Home Finance unit totaled about $67.1 billion for the quarter, up from approximately $54.5 billion a year earlier. J.P. Morgan Chase can be found online at http://www.jpmorganchase.com.

Golden West Financial Corp., Oakland, Calif., has reported net earnings of $260.1 million ($1.67 per share) for the first quarter, up from $238.1 million ($1.51 per share) a year earlier.The earnings per share represented a record high for Golden West. Mortgage loan originations also reached a record high, totaling $6.9 billion, up 28% from $5.4 billion in the first quarter of 2002. "Expanding the mortgage portfolio, which is our major earning asset, is always a key contributor to growth in profits," said Herbert Sandler, Golden West's chairman and chief executive officer. "Fueled by record originations, our loan balances increased 19% during the past 12 months." Golden West's primary spread -- the difference between the yield received on loans (and other earning assets) and the rate paid on savings and borrowings -- averaged 2.97% in the first quarter, down from the record high of 3.12% a year earlier, the company said. Golden West, the parent of World Savings Bank, can be found on the Web at http://www.gdw.com.

A new effort to combat identity fraud by simplifying the way victims notify credit reporting companies has been announced by the Consumer Data Industry Association, which includes companies in the mortgage reporting services industry.Under the new initiative, victims of identity fraud can make one toll-free call to any of the U.S. credit reporting companies -- Equifax, Experian, and TransUnion -- and be assured that all three companies will take "aggressive" steps to protect their credit information, the CDIA said. "With one phone call, victims will have, in essence, contacted all of the national credit reporting companies," said Stuart Pratt, president and chief executive officer of the CDIA. The association can be found online at http://www.cdiaonline.org.

Nexstar Financial Corp., Creve Coeur, Mo., has announced the leasing of an 80,000-square-foot building in St. Charles, Mo., that it plans to establish as its second national operations center.The new center will house network technology operations and national loan operations, as well as certain customer care groups. Nexstar said it will maintain its corporate headquarters and existing national operations center in Creve Coeur, a suburb of St. Louis. The company has approximately 400 employees nationwide, over 300 of them in the St. Louis area. "Over the past two years, our business has experienced significant growth," said Rick Thornberry, president and chief executive officer of Nexstar. "We have signed several outsourcing clients this year, and our 2003 loan volume is projected to increase by more than 200% over 2002." Nexstar provides outsourced mortgage services to financial services companies through its Powered by Nexstar program. It can be found online at http://www2.nexstar.com.

Six classes of CNC's series 1994-1 pass-through certificates, secured in part by Kmart Corp. leases, have been downgraded by Fitch Ratings and removed from Rating Watch Negative.Classes A-1, A-2, and A-3 were downgraded from BB-plus to BB-minus; class B from CCC to CC; class C from CC to C; and class D from CC to C. Fitch attributed the downgrades to "further deterioration in the credit ratings of the largest tenant concentration, Kmart, which comprises 51% of the pool, as well as limited information on the underlying collateral." The rating agency said it withdrew the corporate ratings of the bankrupt retailer in March and "will closely monitor Kmart's decision to affirm or reject any more leases, and the further effect that decision may have on this transaction."

The ratings on three classes of Credit Suisse First Boston Mortgage Securities Corp.'s commercial mortgage pass-through certificates, series 1997-C1, have been lowered by Standard & Poor's Ratings Services.The downgrades were as follows: class F, from BB to B-plus; class G, from BB-minus to B; and class H, from B to CCC. The ratings on classes A-1B, A-1C, and A-2 in the deal were affirmed. S&P said the rating actions "reflect anticipated credit support erosion upon the eventual disposition of some of the specially services assets, and concerns regarding the watchlist loans, particularly those secured by lodging properties." S&P can be found online at http://www.standardandpoors.com.

Silverado Financial Inc., Campbell, Calif., has announced the adoption of a new business model focused on the acquisition of established, profitable mortgage brokerage and banking operations in Northern California.The company said the move was linked to the transfer of real estate licenses from Realty Capital Corp. in conjunction with a binding letter of intent signed on April 9. The acquisition model calls for buying the companies for a low multiple of free cash flow, with the seller carrying a note that will typically be paid over a 12-month period from the acquisition's own cash flow, Silverado said. The company said prospective changes in the Real Estate Settlement Procedures Act "will force the relationship between the mortgage broker and the mortgage banker to change," making it "more important than ever" that the brokerage community have "immediate access to pertinent information from its lending sources." Silverado's principal business consists of investing in, originating, and servicing mortgage loans, primarily those secured by first trust deeds to residential and commercial properties.

A $100 million multifamily housing initiative to finance small, affordable properties in major markets has been announced by Fannie Mae and the Community Development Trust, the first real estate investment trust created for the sole purpose of acquiring community development assets.The initiative establishes a secondary-market facility to help provide liquidity for small multifamily loans averaging $2 million. Fannie Mae will buy the senior participation in small loans on properties that qualify for federal Low Income Housing Tax Credits, and CDT will retain the junior participation, the companies said. "Our primary goal is to preserve and increase the stock of affordable housing, both through long-term equity investments in properties and by providing a secondary market for permanent fixed-rate mortgages," said Mark Jarrell, CDT's senior vice president for debt. The companies can be found online at http://www.fanniemae.com and http://www.commdevtrust.com.

Delinquencies in commercial mortgage-backed securities rose more than 14% in the first quarter from levels in the last quarter of 2002, according to Fitch Ratings.Fitch's delinquency index reading of 1.39% for the first quarter, up from 1.31% for the previous period, represents the largest quarterly increase in CMBS delinquencies since Fitch created the index at the end of 2001, the rating agency said. "The increase in CMBS delinquencies is directly due to a dramatic rise in delinquent hotel and office loans," said Mary MacNeill, a Fitch senior director. The delinquency balance for hotel loans grew by $270 million in the first quarter, a 37% increase from the year-end level. Fitch said it is "quite certain" that delinquencies in the hotel sector will continue to rise, given the number of hotel loans Fitch analysts have under review. The delinquent office loan balance grew by 30% in the first quarter, from $200 million to $260 million, the rating agency said. Within the other property sectors, retail and industrial delinquent balances grew by 5% and 7%, respectively, in the first quarter. Delinquent multifamily loans declined by 4%. Fitch can be found online at http://www.fitchratings.com.

The average 30-year fixed mortgage rate fell to 5.82% for the week ending April 18 from 5.85% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 5.17% to 5.12%, while the average rate for one-year Treasury-indexed adjustable-rate mortgages drifted down from 3.80% to 3.79%. Fees and points averaged 0.6 points for all three mortgage categories. "Housing is poised for another exceptional year," said Frank Nothaft, Freddie Mac's chief economist. "For instance, for the year so far, mortgage rates have been continually under 6%, as opposed to last year when rates averaged about a half percentage point higher." A year ago, the average 30-year and 15-year fixed rates were 6.94% and 6.42%, respectively, and the average one-year ARM rate was 4.95%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.

Equity Office Properties Trust, Chicago, has sold four commercial properties, comprising 383,246 square feet, and 32 residential units for a total price of approximately $67.6 million.Richard Kincaid, EOPT's president and chief executive officer, said the sales "reflect the continued execution of our long-term investment strategy of leveraging market conditions to dispose of noncore assets." The office real estate investment trust is exiting the Salt Lake City market with the sale of the U.S. West Dex Center property. The other three properties, all located in California, include buildings designed for uses -- such as mixed use, flex office, and industrial -- that do not fit in with the office REIT's primary business strategy, EOPT said.

Washington Mutual Inc., Seattle, has reported record earnings of $1.0 million ($1.07 per share) for the first quarter, up from $956 million ($0.99 per share) a year earlier.Originations of single-family residential loans totaled $97.47 billion for the quarter, up from $58.97 billion a year earlier. Home equity loans and lines of credit and multifamily loans totaled $38.72 billion as of March 31, up $6.73 billion, or 21%, from a year earlier, WaMu reported. The company said it is on schedule to open approximately 250 financial center stores and 70 home loan stores this year. WaMu can be found online at http://www.wamu.com.

Seven classes of notes issued by Prudential Structured Finance CBO I, which are supported in part by residential and commercial mortgage-backed securities, have been downgraded by Fitch Ratings.The downgrades were as follows: class A-1L floating rate notes and class A-1 fixed-rate notes, from AAA to AA-plus; class A-2L floating-rate notes, from A-minus to BBB-plus; class B-1L floating-rate notes and class B-1 fixed-rate notes, from BBB-minus to BB-plus; and class B-2L floating-rate notes and class B-2 fixed-rate notes, from BB-minus to B. Classes A-2L, B-1L, B-1, B-2L, and B-2 were also removed from Rating Watch Negative. The rating agency attributed the downgrades to various factors, including "substantial downward rating migration in the credit quality of the portfolio and a reduction in excess spread." The transaction, a collateralized bond obligation, is supported by a diversified portfolio of RMBS, CMBS, and asset-backed securities. Fitch can be found online at http://www.fitchratings.com.

Paul H. Olson has been named president of Community First Mortgage LLC, a Fargo, N.D.-based joint venture of Community First Bancshares Inc. and Wells Fargo Home Mortgage Inc.Mr. Olson has more than 20 years of experience in financial services with Wells Fargo & Co. and Norwest (which was acquired by Wells Fargo), the company said. Most recently, he has led Wells Fargo's northern Arizona banking group since 1996. Community First can be found online at http://www.communityfirst.com.

Richard Saltzman, who has been credited with introducing the real estate investment trust to Wall Street, has been named president of Colony Capital LLC, a Los Angeles-based investment firm focused chiefly on real-estate-related assets.Mr. Saltzman, 46, is managing director and vice chairman of Merrill Lynch & Co.'s investment banking division, a post he will leave as of May 1. He joined Merrill Lynch in 1982, and became group head for real estate investment banking in 1992. "Richard is regarded as a truly great innovator in the world of real estate finance," said Thomas J. Barrack Jr., Colony's chairman and chief executive officer. "In real estate public and private equity and global M&A, Richard and his team usually were there first, provided many of the best ideas, and closed the most transactions." Colony can be found online at http://www.colonycapital.com.

Fannie Mae has named four new vice presidents, including two who have worked at the Department of Justice and another who was involved in developing Mexico's mortgage industry.The four are: Gabriel Galvan, vice president for emerging markets; Joseph Grassi III, vice president and deputy general counsel for multifamily legal services; Monica Medina, vice president and deputy general counsel for corporate governance; and Jon Seward, vice president and deputy general counsel for fair lending. Mr. Galvan has worked for several technology-related firms during his career, including IBM, and he was assigned to Mexico in 1995 and "was heavily involved in the development of the mortgage industry in that country," according to Fannie Mae. Mr. Grassi joined Fannie in 1994 -- from Freddie Mac. Ms. Medina was a partner in a private law firm and was previously deputy associate attorney general at the DOJ. Mr. Seward was a deputy chief at the DOJ and also a trial attorney in the fair housing division of the Department of Housing and Urban Development. Fannie Mae can be found online at http://www.fanniemae.com.