Originations

C. Kent Conine, a home and apartment builder from Dallas, has been elected as 2003 president of the 205,000-member National Association of Home Builders.He is president of Conine Residential Group, which specializes in single-family building, single-family subdivision development, and multifamily development, and was appointed by former Gov. George W. Bush to the board of the Texas housing finance agency. Elected to serve with Mr. Conine were Bobby Rayburn of Rayburn & Associates in Jackson, Miss., as first vice president; David F. Wilson of Wilson Construction in Ketchum, Idaho, vice president/treasurer; and David Pressly of Pressly Development Co. Inc. in Statesville, N.C., vice president/secretary.

Builders and managers of multifamily properties are "cautiously optimistic" about their prospects over the next six months, according to new indices from the National Association of Home Builders, despite NAHB projections calling for a slide in the apartment sector.Multifamily starts are projected to fall from 336,000 units last year to 322,000 units this year and then rebound to 334,000 units in 2004, according to the NAHB forecast released at the association's annual convention in Las Vegas. But the 350 apartment builders and managers who responded to the NAHB survey on which the new Multifamily Housing Market Indices are based were a little more enthusiastic. On the supply side, builders who produce low- and moderate-income rentals anticipate little change in activity levels, but those who build market-rent and for-sale units think a small rebound is in the offing. On a scale of zero to 100, with 50 being average, the index for market-rent apartments projects a jump from 41.0 to 46.2, while the index for for-sale units calls for a rise from 51.1 to 53.3. On the demand side, multifamily practitioners expect occupancies to rise in the next six months, especially in the class A luxury and class B market-rate sectors.

ABN Amro Mortgage Group Inc., Ann Arbor, Mich., has reported its 2002 production totaled a record-breaking $119 billion, a 44% increase over its origination volume in 2001.AAMG's production totaled $40.95 billion in the fourth quarter. Executive vice president William A. Newman credited the company’s OneFee offering with generating significant consumer interest and helping to drive its consumer-lending divisions to unprecedented production gains. AAMG's National Lending Center was the company’s fastest-growing channel, with production at $7.4 billion. Since OneFee was introduced through Mortgage.com, production through the site has increased more than 7,000%, Mr. Newman added. The company's website address is http://www.abnamro.com.

Countrywide Credit Industries Inc., Calabasas, Calif., has reported record unaudited earnings of $841.8 million ($6.49 per share) for 2002, up 57% from $537.5 million ($4.34 per share) in the comparable fiscal 12-month period, which ended Nov. 30, 2001.(Countrywide adopted a calendar-year reporting schedule in January 2002.) Pretax earnings by the company's core mortgage banking operations totaled $968 million in 2002, up 45% from $667 million, while pretax earnings from diversified businesses nearly doubled to $375 million, representing 28% of total earnings, the company said. In the fourth quarter, earnings totaled $254.9 million ($1.94 per share), up 58% from $161.0 million ($1.27 per share) in the fiscal quarter ended Nov. 30, 2001. "Remarkable quarterly and annual operational milestones were established, while setting earnings records in mortgage banking," said Angelo R. Mozilo, Countrywide's chairman and chief executive officer. "Record fundings of $102 billion in the fourth quarter far exceeded prepayments by $50 billion. Annual fundings exceeded prepayments by $123 billion, driving the uninterrupted growth in the servicing portfolio to $452 billion at Dec. 31, 2002." The company can be found online at http://www.countrywide.com.

The California Land Title Association has announced that state insurance regulators have approved new pricing for title insurance products that will cut the premiums of a policy to as low as $275 for a refinance or $85 for home equity line transactions.California is the battleground for Radian Lien Protection, an alternative program aimed largely at these types of transactions. Radian Group says RLP can save the state's consumers approximately $273 million this year. CLTA executive vice president Larry Green said the association's member companies are using technology to drive down prices across the board. "These new products build upon the discounted rates that title companies have been offering for many years on mortgage refinances and home equity loans,” he said.

NovaStar Mortgage Inc., Kansas City, Mo., has announced that the company has ceased doing business in Georgia, including conforming and nonconforming loans.The action was prompted by the recent decision by Standard & Poor’s to refuse to assign ratings to structured finance transactions that include home loans from the state of Georgia, the company said. “Mortgage securities with collateral originated in Georgia will be unrated by Standard & Poor’s and, therefore, will not be marketable,” the company said. NovaStar Mortgage’s parent company, NovaStar Financial Inc., is a real estate investment trust that invests in mortgage securities collateralized by loans originated by NovaStar Mortgage. The company's website address is http://www.novastaris.com.

Sandalwood Lodging Investment Corp., Potomac, Md., has announced an initial public offering of 10 million shares of common stock at $20 per share.An additional 1 million shares are being offered for the real estate investment company's dividend reinvestment plan. The company says it intends to qualify as a real estate investment trust for federal income tax purposes. "In today's challenging financial markets, investors seeking to diversify their equity holdings should consider real estate investment trusts, an asset class which offers more predictable and higher dividends, superior risk-adjusted returns, and lower volatility than many other investment alternatives," said Bryan E. Gordon, Sandalwood's chairman and managing director. Emerald Bay Capital Management LLC is the managing underwriter of the IPO. The companies can be found online at http://www.sandalwoodlodging.com and http://www.emeraldbaycapital.com.

Golden West Financial Corp., Oakland, Calif., has reported net earnings of $958.3 million and record earnings per share of $6.12 for 2002, compared with $812.8 million ($5.07 per share) in 2001.For the fourth quarter, earnings totaled $249.4 million ($1.60 per share), up from $228.0 million ($1.44 per share) a year earlier. Loan production also set a record of $26.7 billion in 2002, up 29% from $20.8 billion in 2001. "Golden West's loan team produced our highest mortgage volume ever," said Marion O. Sandler, chairman and chief executive officer of Golden West, the parent company of World Savings. "While this was impressive, what was special was the make-up of these originations. The vast majority of the company's new loans were in the form of adjustable-rate mortgages, and virtually all had interest rates that change monthly. This is important, because these variable-rate loans help limit the exposure of the company's earnings to swings in interest rates." Golden West and World Savings can be found online at http://www.gdw.com and http://www.worldsavings.com.

The outlook for Chateau Communities Inc. and its operating partnership, CP LP, has been revised from stable to negative by Standard & Poor's.In addition, the BBB-minus corporate credit and senior note ratings were affirmed. "The rating actions follow recently announced management changes and strategic shifts unrelated to the company's core competencies," S&P said. "Furthermore, the pending acquisition of remaining equity in N'Tandem Trust will initially weaken the overall asset quality of the portfolio and modestly increase already-high leverage levels, which in turn constrains financial flexibility." Chateau is a real estate investment trust that owns and operates manufactured housing communities. S&P can be found online at http://www.standardandpoors.com.

The rating outlook for LandAmerica Financial Group Inc., Richmond, Va., has been revised from stable to negative by Fitch Ratings.Fitch said it took the action because LandAmerica, the third-largest title insurer in the nation, "has not yet attained optimal consolidated operating performance during one of the strongest real estate markets in recent history. This view is supported by recent exits of ancillary real estate operations that had not generated favorable operating performance." Therefore, Fitch continued, LandAmerica is more reliant on its title business than some industry peers who have profitable ancillary service operations. In addition, LandAmerica's market share fell from 20.9% at the end of 2000 to 19.8% at the end of 2001. Fitch can be found online at http://www.fitchratings.com.

There is a new twist to the tale of Simon Property Group's attempt to acquire Taubman Centers, as the two real estate investment trusts have interpreted a Michigan federal court ruling in different ways.Taubman says the U.S. District Court for the Eastern District of Michigan has granted its motion to dismiss "the central claim" of Simon's lawsuit -- that the issuance of series B preferred shares to the Taubman family required a shareholder vote -- because the Michigan Control Share Acquisition Act does not pertain to a direct issue from a corporation of its own shares. Simon maintains, however, that the ruling only says the 1998 issuance was "in technical compliance" with the statute and that Simon "has a viable legal claim that the Taubman family's one-third voting position in Taubman Centers was obtained without a shareholder vote in violation of Michigan law." The Indianapolis-based Simon said the judge ruled that "the Taubman family's claimed blocking position in the company may be challenged" by Simon at a March 21 hearing. A spokesman for Taubman said the lawyers for both sides had given their own interpretations of the ruling. Taubman maintains that Simon's central argument has been dismissed and that the March 21 hearing will consider other matters. Simon did not return phone calls by deadline time.

The average 30-year fixed mortgage rate fell to 5.91% for the week ending Jan. 24 from 5.97% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 5.36% to 5.31%, while the average rate for one-year Treasury-indexed adjustable-rate mortgages dropped from 4.03% to 3.93%. Fees and points averaged 0.6 points for fixed-rate mortgages and 0.7 points for ARMs. "Market concerns over weak economic indicators and an increased risk of war in the Middle East pushed mortgage rates even lower this week," said Frank Nothaft, Freddie Mac's chief economist. "That and falling stock prices raised investor appeal for U.S. Treasury bonds, which in turn allowed most interest rates to drift even lower." A year ago, the average 30-year and 15-year fixed rates were 6.96% and 6.44%, respectively, and the average one-year ARM rate was 5.10%, Freddie Mac said. Freddie Mac can be found on the Web at http://www.freddiemac.com.

Thornburg Mortgage Inc., Santa Fe, N.M., has reported earnings of $120 million ($2.60 per share) for 2002, compared with $58.5 million ($2.09 per share) in 2001.The company's closed originations increased to $2.3 billion during the year from $589.6 million in 2001. Thornburg can be found on the Internet at http://www.thornburg.com.

Joel Pate, president of American Family Funds, Mobile, Ala., has been named chairman of the Homeownership Alliance of Nonprofit Downpayment Providers.The Bethesda, Md.-based HAND represents 12 organizations that provide downpayment gifts to low- and moderate-income homebuyers who qualify for a mortgage but lack the cash for downpayment or closing costs. At its first annual meeting in Atlanta Jan. 17, HAND established a political action committee and assigned committees to devise plans to improve homebuyer education and foreclosure avoidance strategies, the organization said. Other officers and members of the HAND board are: vice chairman, Ann Ashburn, chief executive officer of The AmeriDream Charity Inc., Gaithersburg, Md.; secretary, Scott Syphax, CEO of the Nehemiah Corp. of California; assistant secretary, Fred Proctor Jr., CEO of Family Home Providers, Cumming, Ga.; and treasurer, Richard Ferguson, CEO of Neighborhood Gold, Orem, Utah. HAND can be found online at http://www.downpaymentalliance.org.

William P. Hankowsky has been named president and chief executive officer of Liberty Property Trust, Malvern, Pa., replacing William G. Rouse III, who has resigned as CEO.Mr. Rouse, who was diagnosed with lung cancer about a year ago, will remain as chairman of the board of the real estate investment trust. "I continue to respond well to treatment, and am feeling very healthy," Mr. Rouse said. "But I feel an obligation to ensure a smooth transition of management, regardless of the status of my health." Mr. Hankowsky, 51, was previously the REIT's president and chief investment officer. Liberty, which specializes in office and industrial properties, can be found online at http://www.libertyproperty.com.

Old Republic Title, Minneapolis, has increased its single-risk limit for commercial properties to $100 million, where permitted by state law.Rande Yeager, the company's president and chief executive, said the increased limit "positions Old Republic Title as a more versatile competitor within the commercial market. Being able to assume a higher risk liability offers benefits to both commercial title agents and lenders. Title agents can save a significant amount of time and money by avoiding the need for additional reinsurance coverage; lenders have the benefit of working with one of the highest-rated underwriters for their larger commercial deals." When a transaction's price is higher than an underwriter's single-risk limit, there is a need to seek reinsurance through another carrier, adding fees and extending the processing time.

Simon Property Group, Indianapolis, has announced that it is not withdrawing its $20-per-share offer for Taubman Centers (which is being made together with Westfield America) even though Taubman has rejected the new offer."Despite the size of the premium and the certainty of a fully financed all-cash offer, the Taubman Board has dismissed out of hand Simon and Westfield's $20 per share offer," Simon noted. "Simon and Westfield fully expect Taubman shareholders to demonstrate their strong support by tendering their shares by February 14th." Simon, a real estate investment trust, also indicated that the judge in the U.S. District Court for the Eastern District of Michigan has set a March 21 date to hear Simon's motion to enjoin the voting of the Taubman family's series B preferred shares. Meanwhile, Standard & Poor's has reported that its ratings on Simon remain on Credit Watch with negative implications, where they were placed after Simon's initial bid for Taubman. The rating agency said Westfield's involvement in the offer could reduce Simon's capital requirements, but that "the eventual capitalization of the potential transaction remains unclear." Simon can be found online at http://www.simon.com.

Mortgage applications fell 4.7% on a seasonally adjusted basis for the week ended Jan. 17, according to the Mortgage Bankers Association of America's Weekly Mortgage Applications Survey.On an unadjusted basis, applications were down 3.6% on the week and 55.5% from the level recorded a year earlier. On a seasonally adjusted basis, the Purchase Index declined from 358.0 to 355.3, and the Refinance Index fell from 5786.4 to 5433.4. Refinancings represented 75.7% of total applications, down from 77.7% the previous week, while adjustable-rate mortgages accounted for 13.8%. The average contract interest rate for 30-year fixed-rate mortgages decreased from 5.84% to 5.74%, and points (including the origination fee) increased from 1.42 to 1.57 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mbaa.org.

MBS Mortgage Co. LLC, Grand Rapids, Mich., has announced the addition of several mortgage programs designed exclusively for credit union members.The new offerings include: a stated-income program; one-time closing, for new construction mortgages; 100% mortgages for refinances and purchases; and expanded programs for credit-challenged members. "Twenty-five to 30 percent of [credit union] members are unable to qualify for traditional conventional mortgages," said MBS Mortgage president John Teweles. "We now have programs available for many of these members.” MBS Mortgage, a division of Multi-Bank Services Ltd., offers mortgage services to credit unions in the Midwestern and Eastern United States.

Three classes from three single-asset commercial mortgage-backed securities deals have been placed on Rating Watch Negative by Fitch Ratings due to interest shortfalls related to terrorism insurance costs.The affected securities are class F of 280 Park Avenue Trust 2001-XL280; class F of 1345 Avenue of the Americas Trust 2000-XL1345; and class E of 1251 Avenue of the Americas Trust 1999-XL1251. Fitch said they were placed on watch as a result of interest shortfalls stemming from expense reimbursements related to terrorism insurance costs incurred by Wells Fargo Bank, the master servicer for each transaction. Fitch can be found online at http://www.fitchratings.com.