Originations

The stocks of Apartment Investment and Management Co., Denver, and AMB Property Corp., San Francisco, have received "strong sell" ratings from Zacks.com.The Zacks Rank #5 (Strong Sell) ratings are assigned to a list of Stock to Sell Now by Chicago-based Zacks & Co. In explaining the ratings, Zacks said AIMCO was hurt by the weak economy in the fourth quarter, along with the whole multifamily real estate sector, while AMB "continues to grapple with a challenging industrial market." Zacks can be found online at http://www.zacks.com.

Berkshire Hathaway Inc., the Omaha, Neb.-based firm controlled by Warren Buffett, may have lost its bid to buy Conseco Finance Inc., but that doesn't mean it is shying away from the manufactured housing business.The company just entered into an agreement to buy Clayton Homes Inc., a Knoxville, Tenn., builder, retailer, and financer of manufactured homes. Clayton stockholders will receive $12.50 per share cash. The deal was announced after trading closed on April 1. On that day, Clayton's stock closed at $11.13 per share, up 9 cents per share. The following morning, Clayton opened at $12.65 per share, although by 11 a.m. it had retreated to $12.46. This is not Berkshire's first foray into manufactured housing. The company supplied some of the debtor-in-possession financing for Oakwood Homes, Greensboro, N.C., and has an agreement that will make Berkshire Oakwood's largest shareholder when the company emerges from bankruptcy.

Conseco Finance Corp., St. Paul, Minn., has filed its proposed plan of reorganization with the U.S. Bankruptcy Court in Chicago.A hearing on the disclosure statement has been set for April 30. The sale of Conseco Finance's assets to CFN Investment Holdings Inc. and GE Consumer Finance, already approved by the court, is the precursor to the plan. "We have worked hard over the past six months to find buyers for the Conseco Finance businesses, and are pleased with our progress thus far," said Chuck Cremens, president and chief executive of Conseco Finance. "The filing of our plan of reorganization is the next step in the process as we work to complete the sales transactions to CFN and GE and maximize the return to our creditors." Conseco can be found on the Internet at http://www.conseco.com.

The Market Composite Index, an overall measure of mortgage applications, fell to 1262.5 on a seasonally adjusted basis during the week ended March 28 from 1520.9 the week before, according to the Mortgage Bankers Association of America's Weekly Mortgage Applications Survey.On an unadjusted basis, applications were down 16.8% on the week but up 149.5% from the level recorded a year earlier. On a seasonally adjusted basis, the Purchase Index fell from 383.7 to 364.7, and the Refinance Index fell from 8135.7 to 6484.6. Refinancings represented 73.3% of total applications, down from the previous week's 76.5%, while adjustable-rate mortgages accounted for 13.5%. The average contract interest rate for 30-year fixed-rate mortgages fell from 5.81% to 5.63%, and points (including the origination fee) decreased from 1.55 to 1.50 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mbaa.org.

The ratings on 10 classes of Lehman Brothers Floating Rate Commercial Mortgage Trust 2000-LLF C7 multiclass pass-through certificates have been lowered by Standard & Poor's Ratings Services.The lowered ratings were as follows: class M, from BB-plus to BB; class N, from BB to B-plus; class P, from BB-minus to B; class Q, from B-plus to CCC-plus; class S, from B to CCC; class T, from B-minus to CCC; class U, from CCC to CCC-minus; class J-BO, from BBB-plus to BB-minus; class K-BO, from BBB to B-plus; and class L-BO, from BBB-minus to B. In addition, the ratings on seven other classes in the deal were raised, and the ratings on five classes were affirmed. S&P said the deal now contains 11 adjustable-rate loans from the original 21 loans at issuance, and it attributed the lowered ratings to four loans: MGM Plaza, Boykin Portfolio, Hampshire Hotels, and Francisco Bay Office. The rating agency can be found online at http://www.standardandpoors.com.

The Eleventh Federal Home Loan Bank District Cost of Funds Index set another new low in January as it declined by 7 basis points from the previous low in December.According to the Federal Home Loan Bank of San Francisco, COFI stood at 2.308% in January, compared with 2.375% in December and 2.823% in January 2002. However, even though the decline in COFI has slowed, it is likely that the index will fall even further three to six months down the line. According to data collected by the Federal Reserve Bank of St. Louis, in July 2002 the rates on certificates of deposit were 1.84% for the six-month, 1.79% for the three-month, and 1.78% for the one-month. Six months later, the rates had fallen by about 50 bps, to 1.30%, 1.29%, and 1.29%, respectively.

GMAC Institutional Advisors, a subsidiary of Horsham, Pa.-based GMAC Commercial Mortgage, and Apollo Real Estate Advisors, a private real estate investment company, have closed a real estate mezzanine fund with an investment capacity of $200 million.The fund will invest in "junior loans and preferred equity positions," typically ranging from $8 million to $20 million per transaction, with terms of up to five years, the companies said. Besides Apollo, the managing general partner, and GIA, the co-general partner, lead investors include insurance companies and a "private endowment." A GMAC affiliate has provided a five-year term credit facility for the fund as well. "We look at mezzanine investments as having components of both debt and equity," said Eric Lindner, president of GIA. "We believe we can offer more creative solutions to borrowers by teaming up with an established equity sponsor as we move into this space." The fund expects to invest the capital available over the next 24 months.

AmeriServ Financial Inc., Johnstown, Pa., has announced a move to consolidate the management of its mortgage servicing operation in Atlanta with that of its mortgage lending operations in Western Pennsylvania.As part of the consolidation, William D. Adams of AmeriServ Financial Bank has been appointed president and chief executive officer of Standard Mortgage Corp. of Georgia and will direct the restructuring of that Atlanta-based mortgage servicing affiliate from Johnstown, AmeriServ said. The company noted that it recently sold the servicing rights on approximately $450 million of mortgage loans serviced through SMCG. Gary McKeown, AmeriServ's chief lending officer, said the Atlanta operation "does not fit our long-term vision to return to more of a community banking focus." In a related announcement, AmeriServ said its local mortgage lending subsidiary, AmeriServ Mortgage Co., will become the residential lending division of AmeriServ Financial Bank. AmeriServ can be found online at http://www.ameriservfinancial.com.

Epic Financial Corp., Newport Beach, Calif., has announced the acquisition of American National Mortgage Services, a mortgage banking and mortgage brokerage company that operates as both a wholesale and retail originator.The terms of the transaction were not disclosed. William Parker, president of American National, has been named president of Epic and appointed to its board. "It is our intention to implement a new corporate direction, that of becoming a financial services holding company with emphasis on residential and commercial lending," Epic chairman Frank Iannuzzi said. "We intend to pursue a plan to acquire companies or initiate new businesses that will fit into this new corporate strategy."

Subprime mortgage and home equity lender HomeGold Financial Inc., Columbia, S.C., and one of its subsidiaries, HomeGold Inc., have announced filings for reorganization under Chapter 11 of the U.S. bankruptcy code.HomeGold Financial said the filings in the U.S. Bankruptcy Court for the District of South Carolina resulted from its inability to make repayments of an intercompany loan to another subsidiary, Carolina Investors Inc. "Investor interest in maintaining investments in notes and debentures issued by Carolina Investors Inc. recently declined significantly," HomeGold Financial said. "Because of these factors, Carolina Investors Inc. was unable to meet its payment obligations to all of its note and debenture holders and has not opened its offices for business since Friday, March 21, 2003." HomeGold can be found on the Web at http://www.homegold.com.

In a survey by American Business Financial Services Inc., the majority of potential borrowers with blemished credit records said they are taking steps to repair their credit rating and are using home equity loans for debt consolidation.Of those responding to the survey, 62% said they were looking for a loan to consolidate debts and 15% said they were planning home improvements, the company said. Moreover, 66% said they believed that if they successfully paid off a loan, it would help them repair their credit. "The results confirm what we have long suspected," said Anthony J. Santilli Jr., the company's chairman and chief executive officer. "Specifically, these individuals represent an underserved but viable market. They are hardworking people, and access to funds is key to helping them restore their credit." Participants in the survey were visitors to the website of the company's Upland Mortgage subsidiary who used the EasyLoan Advisor tool. The website can be found at http://www.uplandmortgage.com.

Bert B. Corkill has been named chairman of the board at National Closing Solutions, a real estate settlement, vendor management, and post-close servicing company with regional hubs in California and Texas.Mr. Corkill held numerous management responsibilities at Stewart Title and its affiliates, and retired in 2000 as chairman of Stewart Mortgage Information, NCS said. He was most recently the owner of Synergy Systems Consulting in the real estate industry. NCS can be found on the Web at http://www.nationalclosingsolutions.com.

Simon Property Group, Indianapolis, and Westfield America, Los Angeles, have extended the deadline for their $20-per-share bid for Taubman Centers shares to May 30, as expected.By the previous deadline of March 28, approximately 40.3 million shares of Taubman had been tendered, Simon said. In response, the Bloomfield Hills, Mich.-based Taubman said the approximately 40 million shares tendered by Taubman shareholders is less than 50% of the total Taubman shares outstanding. This amount is "insufficient to meet Simon's own minimum tender offer condition or to purchase the company," according to Taubman. At least two-thirds of Taubman's 84 million issued and outstanding shares -- or at least 56 million voting shares -- must approve any sale transaction or amendment to the corporate charter, Taubman said.

The Bond Market Association has filed a friend-of-the-court brief in opposition to New York City's predatory lending ordinance in a case involving the temporarily suspended law.In the brief, the association said Local Law 36 would "restrict credit to subprime mortgage borrowers and potentially increase city borrowing costs by limiting eligible financial services providers." The association filed the brief in the New York State Supreme Court case of the Mayor of the City of New York v. the Council and the Comptroller of the City of New York. The NYC ordinance is currently suspended due to a temporary restraining order that expires April 8, TBMA vice president Mike Williams told MortgageWire. Experts have said it is unclear whether a new state law slated to take effect April 1 pre-empts the temporarily suspended NYC law. The trade group can be found online at http://www.bondmarkets.com.

Orlando and the Central Florida area have launched a local version of Freddie Mac's "Don't Borrow Trouble" campaign to help families avoid falling prey to unscrupulous lending practices.The campaign uses advertising and consumer education to alert the public about predatory lending, Freddie Mac said. Local residents can now call a referral network of local agencies and nonprofit organizations. The hotline, 407-654-8076, will refer callers for appropriate counseling on legal or housing questions. The campaign also includes the Department of Housing and Urban Development, the Mortgage & Credit Center, and a coalition of housing and consumer groups. Freddie Mac began launching local "Don't Borrow Trouble" efforts in 2000, and the award-winning program is now targeted to 20 cities around the country, including Washington, Chicago, and Los Angeles. The campaign was pioneered in Boston by Mayor Thomas M. Menino and the Massachusetts Community & Banking Council.

The timing of recovery in the commercial real estate market will depend largely on the length of the war in Iraq, according to the National Association of Realtors.Barring a prolonged conflict, a gradual recovery is expected as a result of rising net absorption and moderating development in the fourth quarter of last year, as well as a turnaround in business spending and expected job growth, the NAR said in its Commercial Real Estate Quarterly report. NAR chief economist David Lereah said a relatively brief war that removes uncertainty would lead to a faster job recovery. "Under this scenario, stronger job growth will strengthen leasing activity and greatly improve the commercial market outlook over the next two years," Mr. Lereah said. "At this point, we project one million new jobs in 2003, with the momentum creating more jobs next year. The economy is expected to pick up speed in the second half of this year, brightening the commercial real estate outlook." The association can be found online at http://realtor.org.

Simon Property Group and Westfield America have nominated four individuals for election to the Taubman Centers board at Taubman's 2003 annual meeting.The nominees are: Benjamin Civiletti, a former U.S. attorney general and chairman of a law firm, Venable LLP; Douglas Crocker II, president and chief executive officer of Equity Residential; Roberta Karmel, a Brooklyn Law School professor and a former commissioner of the Securities and Exchange Commission; and Michael Koeneke, a retired chairman of Merrill Lynch's mergers-and-acquisitions group. Simon and Westfield's $20-per-share offer for Taubman shares expires March 28 unless it is extended. Responding to the nominations, Taubman said, "Simon and Westfield are subjecting the company to a proxy contest to elect their nominees solely to advance their own agenda. We believe that a proxy fight will only serve to disrupt all three companies, including Taubman Centers." Taubman also made clear its position that Taubman is not for sale. The real estate investment trusts are awaiting a ruling from a Michigan judge about the validity of Taubman's blocking position that will determine the future course of the takeover attempt.

PMC Commercial Trust and PMC Capital Inc., both headquartered in Dallas, have announced a merger agreement under which PMC Capital will be merged into PMC Commercial.Each issued and outstanding share of PMC Capital common stock will be converted into 0.37 of a share of PMC Commercial common stock, the companies said. Andrew S. Rosemore, chairman of PMC Commercial, said the merger will provide "a larger asset and equity base" that is expected to boost future growth. "Becoming a self-directed, instead of externally managed, REIT is a significant development in our ability to expand our investment parameters," Mr. Rosemore said. PMC Commercial is a real estate investment trust that specializes in originating commercial real estate loans to the hospitality industry. PMC Capital, a closed-end management company, can be found online at http://www.pmccapital.com.

Criimi Mae Inc., Rockville, Md., has reported a net loss of $64.2 million ($4.69 per share) for 2002, compared with a net loss of $24.2 million ($2.18 per share) for 2001.The commercial mortgage investor said the loss includes $70.2 million of impairment charges on commercial mortgage-backed securities investments. For the fourth quarter, the company reported a net loss of $34.6 million ($2.48 per share), compared with a loss of $27.2 million ($2.10 per share) a year earlier. Criimi Mae said the loss includes $35.2 million of CMBS impairment charges. The company recently increased its estimate of loss over the life of its 'B' piece CMBS investments to $503 million. Criimi Mae said the impairment charges for 2002 "are the result of lower estimates of values on certain properties in special servicing, higher defaults, and higher projected loss severities, which resulted in higher projected loan losses." Criimi Mae can be found on the Web at http://www.criimimaeinc.com.

Three classes of Meristar Commercial Mortgage Trust commercial mortgage pass-through certificates, series 1999-C1, have been downgraded by Standard & Poor's Ratings Services.The downgrades were as follows: class B, from A to BBB; class C, from BBB to BB-plus; and class D, from BBB-minus to B. S&P also affirmed the ratings of three other classes in the deal. The rating agency attributed the downgrades to a deterioration in the pool's operating performance since issuance, citing a decrease in debt service coverage from 1.70 times to 1.39 times and an increase in the loan-to-value ratio from 65% to 80%. The transaction consists of a single fixed-rate loan evidenced by two notes secured by 19 hotels located in 10 states. S&P can be found on the Web at http://www.standardandpoors.com.