Originations

So far, the National Association of Mortgage Brokers' letter-writing campaign to the Department of Housing and Urban Development has resulted in over 40,000 comment letters, according to Neill Fendly, the NAMB's past president and current legislative chair.Speaking at the Southeastern Mortgage Brokers Conference in New Orleans, Mr. Fendly said such a response will be "hard for [HUD Secretary Mel Martinez] to ignore." (HUD's proposal to reform the mortgage application and settlement process would, among other things, require brokers to disclose their total compensation in the good-faith estimate.) Mr. Fendly also noted that the results of the recent elections were favorable to the NAMB. He added that mortgage brokers should establish ties with the new members of Congress and educate them. His own speculation is that HUD will issue a revised rule, and "that is when the real fight will begin." Current NAMB president Armand Cosenza called on the mortgage broker community to step up and not to be apathetic, specifically making a request for money to help fund lobbying activities. One of the NAMB's plans is to create an education campaign around the topic "I am a mortgage." The NAMB can be found on the Web at http://www.namb.org.

Sales of existing single-family homes in Florida rose 8% in the third quarter, according to the Florida Association of Realtors.Resales totaled 40,881 statewide, compared with 37,917 a year earlier, FAR reported. The median sales price of homes sold in the third quarter hit $141,300, up 8% from $131,200 in the third quarter of 2001. Among the state's larger metropolitan statistical areas, resales increased 13% in Jacksonville, 8% in Orlando, 7% in Tampa-St. Petersburg-Clearwater, and 2% in Miami, FAR said.

U.S. Bank Home Mortgage has announced the promotion of Michael Norris, Robert Smiley, and Maria Zoglman to various executive posts.Mr. Norris has been named executive vice president of U.S. Bank Home Mortgage and managing director of The Leader Mortgage Co., a subsidiary of U.S. Bank NA. He will relocate to Cleveland to oversee the integration of Leader into U.S. Bank. Mr. Smiley was named senior vice president and loan administration manager of U.S. Bank's Mortgage Loan Servicing Center in Owensboro, Ky. Ms. Zoglman was named vice president and cash and reconciliation manager at the loan servicing center. U.S. Bank can be found on the Web at http://www.usbank.com.

Jan Garrett-Walker has been named vice president for product development at PMI Mortgage Insurance Co., Walnut Creek, Calif.Ms. Garrett-Walker joined PMI as a marketing manager, and was named a director of structured transactions and capital markets in 1998. She was previously a secondary market officer at First Nationwide Bank and assistant vice president for product development at North American Mortgage. PMI is a subsidiary of The PMI Group Inc., which can be found on the Web at http://www.pmigroup.com.

Barry Alan Moore has been named to the newly created post of executive vice president of marketing at GMAC Commercial Holding Corp., Horsham, Pa.Mr. Moore, a 24-year veteran of the commercial real estate and finance industry, joined GMACCM in 1993 and was most recently president of the company's European operations, the company said. Before joining the company, he held various senior-level positions in real estate and finance. GMACCM can be found on the Internet at http://www.gmaccm.com.

Kenneth E. Edge, president and chief executive officer of Amcore Financial Inc., Rockford, Ill., has been elected Amcore's board chairman to replace the retiring Robert J. Meulman.Mr. Edge, 57, has been president of the company since May and CEO since July, the company said. He will take over as chairman on Jan. 1. Mr. Edge joined Amcore in 1969. Among Amcore's subsidiaries is Amcore Mortgage Inc. The company can be found on the Web at http://www.amcore.com.

Friedman, Billings, Ramsey Group Inc., Arlington, Va., and FBR Asset Investment Corp. have agreed to merge in a tax-free stock-for-stock exchange.Under the terms of the transaction, each share of FBR Asset common stock outstanding at closing will be converted into 3.65 shares of Class A common stock, and each share of FBR Group will be converted into one corresponding Class A or Class B share of a new entity that will elect the status of a real estate investment trust for tax purposes. Based on the closing price of FBR Group shares on Nov. 14, the combined company will have a market capitalization of approximately $1.2 billion, the companies said. Based on the $9.50 closing price of FBR Group shares on Nov. 14, the value to be received in exchange for each share of FBR Asset would be $34.68, representing a 22% premium to the closing price of FBR Asset shares on that date. "From FBR Group's perspective, this transaction will add more than $700 million of new capital, and create new business flexibility and earnings stability, while providing substantial dividends to our shareholders in a tax-efficient manner," said Emanuel Friedman, chairman and co-chief executive officer of FBR Group. "The resulting company?s book equity will make it one of the largest public investment banks in the United States."

Criimi Mae Inc., Rockville, Md., has announced an investment agreement to recapitalize the real estate investment trust under which William B. Dockser will be replaced as chairman.Under the investment agreement with an affiliate of Brascan Real Estate Financial Partners LLC, BREF will purchase shares of common stock at $8.22 per share, or at the 10-day average of the closing prices as of the closing date of the transaction, whichever is lower. The pact provides that Criimi Mae will name Barry Blattman as chairman and chief executive officer, and that Mr. Dockser will resign as chairman and H. William Willoughby will resign as president and board member. Separately, Criimi Mae reported a net loss of $25.1 million ($1.80 per share) for the third quarter, compared with a net loss of $724,000 ($0.06 per share) a year earlier. The net loss includes approximately $30 million of impairment charges on the company's subordinated commercial mortgage-backed securities. Criimi Mae's website address is http://www.criimimaeinc.com.

Taubman Centers Inc., a real estate investment trust based in Bloomfield Hills, Mich., has rejected an unsolicited offer by Simon Property Group Inc., an Indianapolis-based REIT, to acquire Taubman for $17.50 per share in cash."The Taubman Centers board of directors has unanimously rejected this proposal," the board said. "In addition, the Taubman family has informed the board that it is categorically opposed to the sale of the company." In a letter to the Taubman board dated Nov. 13, Simon chief executive officer David Simon criticized the Taubman family's refusal to consider the offer, arguing that it prevents public shareholders from "choosing to receive a premium" for their shares. "Mr. Taubman apparently believes the Taubman family is not accountable to the public shareholders because of the family's claimed blocking position -- via the Series B preferred stock -- which was surreptitiously issued in a 'restructuring' transaction many years after the Company's initial public offering without either proper disclosure or a shareholder vote," Mr. Simon said. The REITs can be found online at http://www.taubman.com and http://www.simon.com.

American Business Financial Services Inc., Bala Cynwyd, Pa., has announced that its commercial lending subsidiary, American Business Credit Inc., is expanding into the mortgage broker market via its new ABC Broker Services Division.ABC's loans range from $15,000 to $500,000 and are secured by commercial and personal real estate. ABC president Beverly Santilli said the type of commercial loan offered by ABC "is often missing from the typical mortgage broker's arsenal of products." Ms. Santilli touted the company's "streamlined" loan application process, which she said usually provides a decision within 24 hours. The new division can be found on the Web at http://www.abcbrokerbiz.com.

All three average mortgage rates tracked by Freddie Mac's Primary Mortgage Market Survey fell to survey-record lows for the week ending Nov. 15, according to the government-sponsored enterprise.The average 30-year fixed mortgage rate dropped from 6.11% the previous week to 5.94%, its lowest level since Freddie Mac started tracking it in 1971, and the average 15-year fixed mortgage rate fell from 5.48% to 5.32%, its lowest level since the GSE started tracking it in 1991. Meanwhile, the average rate for one-year Treasury-indexed adjustable-rate mortgages dropped from 4.15% to 4.09%, its lowest level since Freddie began tracking it in 1984. Fees and points averaged 0.6 points for fixed-rate mortgages and 0.7 points for ARMs. "The Fed rate cut and Greenspan's recent remarks that the economy has hit a 'soft spot' had a huge impact on financial markets," said Frank Nothaft, Freddie Mac's chief economist. "Combined with the anticipation that the U.S. could soon be at war with Iraq, market sentiment turned toward the negative, driving mortgage rates to new lows again." A year ago, the average 30-year and 15-year fixed rates were 6.51% and 5.98%, respectively, and the average one-year ARM rate was 5.06%, Freddie Mac said. Freddie Mac can be found on the Web at http://www.freddiemac.com.

FM Watch, a group whose mission is to lobby against Fannie Mae and Freddie Mac, says it is unconcerned about the news that one of its key backers, Household International, is being sold to HSBC Holdings.HSBC's U.S. mortgage affiliate, which is based in upstate New York, is a large seller of residential loans to both Fannie and Freddie. "We don't expect it to affect us at all," said an FM Watch spokeswoman. FM Watch is supported financially by a handful of trade groups, but also by five key players in the mortgage market: Chase Manhattan Mortgage, GE Mortgage Insurance, Household, United Guaranty, and Wells Fargo Home Mortgage. The news of Household's sale is so recent (it broke Thursday morning) that it's too early to tell whether the lender's new parent will stay committed to FM Watch's cause. However, according to one news report, Household's current chairman and chief executive, William Aldinger, is expected to retain those titles at the new holding company. The sale is not expected to close until late next year.

In a deal that caught the mortgage market by surprise, overseas banking giant HSBC Holdings agreed on Thursday to pay $13 billion for Household International, Prospect Heights, Ill., the largest player in the subprime residential niche.HSBC, the parent of HSBC Mortgage, Depew, N.Y., will gain access to more than 1,400 retail outlets, $49 billion in housing receivables (all subprime), and all the headaches that go along with B&C lending. Though Household's sale is the largest subprime deal in terms of receivables, it pales in comparison to the $31 billion that Citigroup paid two years ago for then-subprime-giant Associates First Capital, which had just 1,000 branches and $28 billion in mortgage receivables. Legg Mason analyst Chris Brendler told MortgageWire that HSBC is getting a "steal," but added this caveat: "unless there's some credit problems buried in there that we don't know about." He said that a few years ago Household chairman William Aldinger was asking north of $75 a share for the company, but now "they're getting less than $30." Recently, Household agreed to pay almost $500 million to settle predatory lending charges brought by several states. Its stock had been trading near a 52-week low (until Thursday) and speculators have raised questions about its funding costs and its ability to make future bond payments. In trading late Thursday morning, its share price was up 25% to $28 a share, still far below its 52-week high of $63 established in the spring.

Volt Inc., Catheys Valley, Calif., has announced that its Opportunity Knocks subsidiary will expand credit counseling services for pre-approved mortgage applicants for a federal gift program to include military personnel and faith-based organizations.The subsidiary already services union, government, fire, and police personnel applying for the gift program sponsored by the Department of Housing and Urban Development. The "Stop Renting--Start Living" campaign, which is slated to begin this month in Virginia and Maryland, counsels potential first-time homebuyers on the benefits of homeownership and helps them to pre-qualify for a mortgage requiring little or no downpayment on properties owned, identified, or being rehabilitated by the company and its partners. Volt is a power provider and marketer of financial services and the parent company of First Washington Financial Corp., Bethesda, Md.

Maguire Properties Inc., Los Angeles, has filed a registration statement with the Securities and Exchange Commission for an initial public offering of common stock.Maguire Properties, which was formed to succeed the businesses of the Maguire Partners real estate company, said it will be the largest owner and operator of Class A office properties in the central business district of Los Angeles upon completion of the IPO. The company said it will also own properties in the California cities of Pasadena, Glendale, and Burbank and in the Dallas/Fort Worth area.

Banyan Strategic Realty Trust, Oak Brook, Ill., has announced that its net assets in liquidation decreased from about $12.4 million at Dec. 31, 2001, to about $3.4 million at Sept. 30, 2002.The decline was due primarily to about $7.7 million in distributions to shareholders over the nine months and an operating loss of approximately $1.7 million, the company said. As previously announced, Banyan has submitted a written request to the Securities and Exchange Commission for "no-action" relief in connection with the trust's intention to transfer all its remaining assets and liabilities into a liquidating trust and to cease operations on Dec. 31, 2002. Banyan, an equity real estate investment trust, adopted a Plan of Termination and Liquidation on Jan. 5, 2001. On May 17, 2001, it sold approximately 85% of its portfolio in a single transaction. The remaining properties were sold on April 1, May 1, and Oct. 16 of 2002.

Post Properties, an Atlanta-based multifamily real estate investment trust, is categorically denying market rumors that the company is for sale."We have not received any proposals or engaged in any form of discussions, preliminary or otherwise, regarding a possible sale of the company or a management-led buyout," said Dave Stockert, the REIT's chief executive officer. "Any reports to the contrary are inaccurate." The REIT also reported that it intends to reduce its dividend rate 42.3% to $0.45 per share in the first quarter of 2003. "Reducing the dividend will free up approximately $55 million in 2003, which we will use to fund our limited development pipeline and to reduce indebtedness," Mr. Stockert said. Post said it will continue to sell properties selectively to take advantage of what it views as "currently favorable pricing for apartment assets." The REIT will also continue repurchasing its shares on an "opportunistic" basis.

It may seem like a fixed-rate environment to most lenders, but adjustable-rate specialist Golden West, Oakland, Calif., is seeing a big increase in its business this year.Russell Kettell, Golden West's president, treasurer, and chief financial officer, told investors and analysts meeting in New York that for many borrowers, adjustable-rate loans make sense even when interest rates on fixed-rate loans are at historic lows. "Over the years, borrowers who have taken adjustable-rate loans have paid less than borrowers who have taken fixed-rate loans," he told attendees at the U.S. Bancorp Piper Jaffray financial services conference. During the first nine months of 2002, new loan volume totaled $19.0 billion, a 27% increase from the volume recorded in the first three quarters of 2001. ARMs accounted for 93% of Golden West's originations during the first nine months of this year. The company can be found online at http://www.worldsavings.com.

Mortgage applications fell 3.7% on a seasonally adjusted basis for the week ended Nov. 8, according to the Mortgage Bankers Association of America's Weekly Mortgage Applications Survey.On an unadjusted basis, applications were down 4.3% on the week and 6.4% from the level recorded a year earlier. On a seasonally adjusted basis, the Purchase Index fell from 369.5 to 333.3, while the Refinance Index declined from 4875.1 to 4825.6. Refinancings represented 73.0% of total applications, up from 70.6% the previous week, while adjustable-rate mortgages accounted for 13.3%. The average contract interest rate for 30-year fixed-rate mortgages plunged from 6.03% to a survey-record low of 5.74%, and points (including the origination fee) increased from 1.40 to 1.52 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mbaa.org.

Robert M. Adams and Mark B. Cohen, who helped transform the thrift industry's method of raising equity capital, have reunited after seven years to launch Adams Cohen Venture Capital LLC, Great Neck, N.Y.The two led the mutual-to-stock conversion movement of savings banks and savings-and-loan associations in the 1980s and 1990s, as the Adams Cohen Cos. raised billions of dollars for the beleaguered thrift industry. Messrs. Adams and Cohen are credited with revolutionizing the way thrifts raised equity capital by developing a direct sale of stock approach ("subscription enhancement") to depositors and the public. In recent years, Mr. Cohen continued pursuing conversion offerings as a partner at Sandler O'Neill & Partners, and Mr. Adams was mostly an active investor/principal in technology-related private equity transactions. The new venture will focus on raising capital for the technology sector.