MuniMae announced today an treaty to exchange its Agency allowance operations to Oak Grove Commercial Mortgage, LLC, a newly formed subsidiary of Mud Duck Equities LLC. The two percentage action consists of a $10 million bond accommodation from Oak Grove, accompanied by an Acquisition Agreement pursuant to which Oak Grove will buy the business. Upon closing of the sale, MuniMae will pull down $23.5 million in a array of moolah and vindication of the advance and, in addition, will endure two series of dividend paying preferred interests in Oak Grove having a combined hero volume of $47 million (subject to reduction of a lump of the preferred interests under some circumstances).
MuniMae's Agency province consists of the underwriting and origination of affordable container and shop merit multifamily apartment undertaking loans that are sold to or insured or guaranteed by the government-sponsored enterprises Fannie Mae, Freddie Mac and supervision agencies HUD/FHA. MuniMae originates and, in most cases, sells the loans to these agencies, and remains tied up as the credit servicer, for which MuniMae is paid a servicing fee. The loan from Oak Grove was funded on December 18, 2008. Completion of the rummage sale negotiation is national to a or slue of conditions, including leave by the government-sponsored agencies to which MuniMae sells, or which insure the loans it originates in this orientation of its business.
Total MuniMae Agency loan originations in the primary three quarters of 2008 were $875 million up from $625 million in the same days in 2007. Michael F. Falcone, Chief Executive Officer stated, "This garage sale is an worthy business for MuniMae as it provides us with working savings in this sensitive operating environment." Third Quarter 2008 Production Third neighbourhood 2008 making (debt and disinterestedness originations) was $349 million, compared to $754 million in the former year period, due first of all to the import of the continual disruption in the initial markets on our businesses and the Company's steadfastness to abridge traffic activities.
Production in MMA Financial, the Company's affordable shield business, included approximately $29 million in strain recognition right-mindedness placements, compared to $81 million in the whilom year space and $99 million of stable loan originations, compared with $39 million in the ex year period. MMA Realty Capital oeuvre included approximately $120 million in activity originations and approximately $80 million in non-agency originations, compared to $152 million and $259 million, respectively, in the late year period. Production in the Company's MMA Renewable Ventures constituent was $21 million, compared to $44 million in the 2007 period. Mr. Falcone stated, "Our forming numbers with to throw back the darned intricate operating environment.
As a consequence of these conditions, we resume to mark off our role activities, reserve our resources and scrutinize crucial alternatives." Consistent with its one-time two quarters and the straits to take care of capital, the Company will remain the deferment of its quarterly dividend for the third quadrature of 2008. Strategic Alternatives & Asset Sales On June 26, 2008, MuniMae announced that it was preoccupied in evaluating principal alternatives for the Company. In joining to today's bulletin of an compatibility to sell the Agency business, the Company continues to be in discussions with concealed buyers for other trade units.
There is no faith that this process will development in any transactions. MuniMae continues to be in rhythmic contact with its lenders regarding its borrowings and hold accountable support agreements. While the Company's lenders have been cooperative, as in days of yore announced, some lenders have been circumspect to formally renounce various covenants in their agreements relating to the expression of audited financial statements.
The Company's washout to bear these statements constitutes a default on several loan arrangements which could assign the affected lenders to bid some of these loans. As fragment of its broader business strategy operating forward, the company stated it will split away from non-core business operations. The Company announced it is exiting the monitory business, although its connection venture, International Housing Solutions, will extend to accord advisory services to institutional investors. In conjunction with exiting the hortatory business, the Company delivered discontinuation notices to particular of its advisory clients and was terminated by other consultive clients.
The Company also intends to slenderize its third bust-up loan brokerage business, in particular, its California operations, which the Company does not judgement as being notes to its business plan. Mr. Falcone stated, "As wish as the paramount markets tarry constrained, we will not pursue the continuation of negligible businesses. Our primary core will be capital conservation and liquidity until a more rational market begins to emerge, which may be quite some time.
" Update on Restatement The Company believes it is culmination to completing and releasing its audited consolidated economic statements of MuniMae and subsidiaries, including consolidated stability sheets as of December 31, 2006 and 2005, and the correlated consolidated proclamation of operations, full income, shareholders' even-handedness and lolly flows for each of the years in the three-year era ended December 31, 2006. These pecuniary statements contain the impression of the Company's restatement for the years ended December 2005 and 2004 as well as the cumulative consequences on shareholder impartiality through December 31, 2005. As neck of the woods of the continuing financial statement organization and accounting processes, the Company is implementing significant changes in its point and accounting practices and policies.
The Company also announced that it is now drift in its monetary reporting as it relates to its more significant every inch owned subsidiaries, including MuniMae TE Bond Subsidiary, LLC and its MMA Mortgage Investment Corporation. About MuniMae MuniMae and its subsidiaries determine accountability and equitableness financing for developers and owners of valid belongings and uncontaminated vigour projects. Assets under management as of September 30, 2008 exceeded $20.4 billion including investments in over 3,000 properties, containing about 328,000 units in 49 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands.
MuniMae is organized as a restricted accountability company, which allows it to ally the reduced liability, governance and command characteristics of a corporation with the pass-through duty features of a partnership. MuniMae also conducts activities through root and branch owned taxable corporate subsidiaries. This Report contains hurry looking statements intended to moderate for the secured harbor contained in Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements often comprise words such as "may," "will," "should," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "seek," "would," "could," and like words or are made in association with discussions of time to come operating or fiscal performance.
Forward-looking statements send our management's expectations at the epoch of this Report apropos to be to come conditions, events or results. They are not guarantees of unborn performance. By their nature, forward-looking statements are vassal to risks and uncertainties. Our current results and financial inure may be separate seriously from what is anticipated in the forward-looking statements.
There are many factors that could cause realized conditions, events or results to distinct from those anticipated by the forward-looking statements contained in this Report. They number changes in make available conditions that sway the willingness of possible investors or lenders to purchase fair-mindedness of, or loan to, funds we form, changes in customer base conditions that stir the value or marketability of assets we own, changes in retail conditions or other factors that alter our access to spondulix we requirement to bump into our commitments to other persons, changes in participation rates or other conditions that pretend the value of mortgage loans we, or funds we manage, have made, changes in dispose rates, weight laws, environmental laws or other conditions that sham the value of the truthful manor underlying mortgage loans we, or funds we manage, own, changes in levy a tax laws or other things beyond our command that attack the impost benefits within reach to investors in high-mindedness funds we form or would relish to form, or changes in technology that act upon the value of renewable energy projects in which we and funds we formed have judiciousness investments. Readers are cautioned not to status undue dependence on forward-looking statements. We have not undertaken to update any forward-looking statements in this Report. MUNIMAE: INTEGRITY. INNOVATION. SERVICE.
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