Leasing News

NEW YORK,) - Fannie Mae, the No. 1 U.S. home funding company, said on Monday its portfolio growth fell 7.9 percent on an annualized basis and its duration gap risk measure was minus one month in November.

That drop in its portfolio is the largest this year and leaves the month-end mortgage portfolio balance at $906.38 billion. Year- to-date portfolio growth is 15.5 percent, Fannie Mae <FNM.N> said in a release.

The duration gap, which reflects how well the company is matching its assets and liabilities, stood at plus one month in October. Both the October and November readings are within Fannie Mae's target range of plus or minus six months.

The housing giant said its retained commitments rose to $13.1 billion, reflecting narrow mortgage-to-debt spreads in November. Also, mortgage portfolio purchases in November were $17.6 billion. Liquidations for Fannie Mae's mortgage portfolio and mortgage-backed securities outstanding fell in November.

Fannie Mae's November portfolio liquidations were $22.4 billion, while mortgage-backed securities liquidations were $34.2 billion.

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WARREN CAPITAL ACQUIRES THE BUSINESS OF

WESTERN STATES LEASING

Warren Capital announces it has acquired the business of Western States Leasing, a thirty-year-old leasing company serving the food processing and packaging industries.

Based in Marin, Western States Leasing served over 800 equipment vendors and clients nationwide. The company was founded by Lou Funston of Belvedere, California, who passed away this fall. According to Kathy Funston, “Western States had a close relationship with Warren Capital for over 15 years. This acquisition was the best way to honor Lou and continue to provide his clients with access to capital.”

Warren Capital Corporation is a 20-year old specialty finance company that has completed over $1 Billion of financing transactions for over 2,000 businesses throughout the United States.

This is the letter from Kathy Funston to Western States accounts:

“As you may have hard, Lou Funston passed away recently from pancreatic cancer. He

remained active in his business virtually until the end and did all he could to provide service to his vendors and clients.

“As we cope with this tremendous loss we are committed to ensure that Lou’s business continues. He spent 30 years building Western States Leasing and he would have wanted to see it continue to flourish. To honor his work and as a source of income for our family, I have arranged with Warren Capital Corporation to assume responsibility for Lou’s accounts.

“Many of you may already familiar with warren Capital since Lou occasionally referred his clients to them. He maintained a 15-yar relationship with Warren Capital and they often cooperated on financing.

“I chose to have Western Sates Leasing join venture with Warren Capital because I know that they are best suited to deliver the level of service, professionalism and integrity that initially attracted you to Lou’s company.

“Clay Stephens, President of Warren Capital, has been a trusted business colleague and friend of Lou’s for many years. After working with Clay these past difficult weeks, I can understand why Lou as fond of him. He has made the transition pleasurable.

“Besides Clay, Ted Levinson of Warren Capital will be calling you in the next few weeks

to introduce you to warren Capital. Others involved in the business are John Hudson and Scott Shapiro. I hope you will give them every opportunity to earn your business. They can be reached at 415-898-1875. I am sure you will be hearing from them directly...”

For additional information on Warren Capital, contact Linda Rieschel at 415-898-1875, email Linda@warrencapital.com, or visit our website at www.warrencapital.com.

Warren Capital Corporation

505 San Marin DRIVE SUITE 240

Novato, CA 94945

415.898.1875

415.892.7075 (FAX)

http://www.leasingnews.org/Conscious-Top%20Stories/Louis_B_Funston.htm

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Form to Help Brokers Cover Expenses and Costs

“I think a pool of companies is a great idea. I'm in. I have modified my

agreement a bit already. I'll fax you a copy later today.”

Paul Behechti

Bridge Capital Leasing

pbehechti@bridgeleasing.com

“I'm in for the $200.”

Gary Saulter

Chase Industries, Inc.

800-968-5000

Fax: 616-459-6822

www.chaseindustries.com

“I support your efforts.

Hope all is well, keep up the good work.”

“Your leasing buddy,

Tree”

Theresa Kabot

Kabot Commercial Leasing

KabComLsng@aol.com

“Count me in I will be glad to help out and be a sponsor. A copy of a

standard proposal letter and broker agreement would be a good result.

Your’s in leasing...”

Warren Hawkins

whawkins@bancpartners.com

---

Leasing News is collecting forms in use that when signed by both parties

spell out what happens to the money advance whether it be

a “commitment fee,” “earnest money,” “advance rental,” “security

deposit.”

While we do not want to give legal advice, particularly realizing that

states differ and there are also licensing issue, we asked Ken Greene

for some "generic" help.

He has agreed to perform this service, review the forms, and then

devise a “generic one” to help brokers retain expenses, particularly

if an application is not approved or terms and conditions change.

“If 10 companies share the cost, it's only $200 each. I think you get what you pay

for, and if they want a "free" form, they will not get the comfort level I

would want if I was in their shoes, “ Ken said. “ And though they don't want to pay, I am sure the companies who have been sued on this issue, and who have paid

thousands of dollars in attorneys fees have ended up paying much much more,

not to mention the hassle of litigation.

“I am glad to help if a pool of leasing companies would like to get together

and hire me to put together a thorough form. It can still be simple, but it

should be internally consistent and not appear to be punitive in nature.”

Ken

Kenneth C. Greene

Law Offices of Kenneth C. Greene

980 Magnolia Avenue Suite 6C

Larkspur, CA 94939

Vox: 415 461 3777

Fax: 415 461 3733

E-Mail: keng@kengreenelaw.com

Website: www.kengreenelaw.com

For those who participate, Ken Greene is willing to do extra work for a minimal fee on the form for their specific needs. Each company will sign an agreement regarding this form to cover expenses incurred should a lease not go forward, plus give other clauses for specific terms and conditions to be covered in the proposal. Should we not obtain the $2,000 needed, all money will be returned. As per our policy, we also reserve the right to refuse a sponsorship. editor

From Winter, 1998, “Leasing Logic,” a publication of the National Association

of Equipment Leasing Brokers:

“From the Desk of Joseph G. Bonanno—Legal Counsel:

“VI. Preventative Medicine.

‘These laws are very new, the application is even newer and the enforcement is uncharted territory. Attorneys are not yet certain as to what could occur in any of the above stages, but some preventative items (which are untested) that may help are the following:

“1. Certainly, registries with the states in which the broker is doing business.

“2. Provisions in all commitment letters and/or proposals that(1) a portion of up front fees(specify the dollar amount) are to be applied to documentation fees and costs of obtaining credit information on the applicant, such as credit reports,(2) these funds are strictly to reimburse the broker for the normal costs associated with processing the lease application,(3) these funds are not advance fees but costs that shall be deemed to become the property of the broker upon receipt of these funds by the broker,(4) that the applicant authorizes the broker to expend these funds in the application of process.

“3. A further provision in all commitment letters and/or proposals that states the first and last rental payments for whatever advances are being collected) are (1) advance rental payments and not fees or commission to the broker for the services or procuring a loan,(2) are deemed earned by the broker upon notification of credit approval from the broker to the applicant as consideration for the efforts of the broker in obtaining financing for the applicant and (3) shall become the property of the broker upon notification of credit approval form the broker to the applicant whether or not(a) the transaction closes or (b) the equipment is accepted by the applicant.

“VII. Conclusion.

“We have all been aware that government regulation in this industry was on the way and I believe that it has finally arrived. What makes it arrive is the fact that a lessee’s attorney from Illinois is aware of the loan broker statute and used it as leverage against a lessor/broker in a dispute over the return of advance rental payments. This indicates to me that end users and/or their attorneys are aware of these registration requirements and in my opinion, brokers should be aware of and comply with these requirements as well.

As always, be aware that the within advice is general advice, and you are interested in for more details on the loan broker statutes.”

From Spring, 2000 “ Leasing Logic” a publication of the National Association of Equipment Leasing Brokers:

“From the desk of Joseph G. Bonanno-Legal Counsel”

“V. Conclusion.

“To protect advance fees, first and foremost, be ethical. A broker is not entitled to advance fees until they are earned. The definition of when fees are earned must be specified in the lease contract so that the fees are deemed earned by the broker upon the occurrence of a particular event, usually acceptance. Note, however, that other events can define the earning of fees. I have recently seen one set of documents that states that the advance fees are earned upon the documents being sent out by the funding source to the lessee. I very much question the enforceability of such a document. In all cases, question the enforceability of such a document. In all cases, keep the advance fees in a separate escrow account and if the fees are large enough, utilize the services of an escrow agent. Finally, review your lease contracts to be certain that there is as much protection in the language of the contract as possible. Recognize that there is no concrete answer as to what will and will not work if a lawsuit results over advance fees. The approach to take in this area is to be as prepared as possible in the event a dispute results.”

Hopefully, we will have more sponsors to help us print a form for all brokers, and tomorrow, we will quote more from this article, and others that the present legal counsel for the National Association of Equipment Brokers has Joseph G. Bonanno has written

on the subject.

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Cartoon---Menkin Chooses the Wrong Door, by Mistake

http://two.leasingnews.org/cartoons/TRAINING.gif

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MERCHANT CAPITAL TO BECOME A MAINSTREET FINANCE AFFILIATE PARTNER

Affiliate Partnerships are one of MainStreet's strategies for expanding market presence.

KIRKLAND, WA. - MainStreet Finance Corporation announced today its newest Affiliate Partner - Merchant Capital, a Portland, Oregon company providing equipment lease financing and SBA loans throughout the western United States. Merchant Capital is headed by Travis Foxx.

"Travis Foxx and Merchant Capital bring a great mix of business finance expertise, and established marketing presence in the Portland market for MainStreet Finance" says Cliff Monlux, Senior Managing Partner with MainStreet Finance.

"Merchant Capital understands the value of offering multiple finance programs to businesses." says Travis Foxx, President of Merchant Capital. According to Travis "this is a great opportunity for us to broaden our finance offerings and leverage the marketing strength of MainStreet Finance. We can now expand our business activity with existing clients and provide marketing and service support for MainStreet's programs with equipment finance companies, CPAs, banks, and other channel partners."

As an Affiliate Partner, Merchant Capital will become a part of the MainStreet Finance Corporation. Merchant Capital will maintain their offices in Portland, Oregon and will pursue continued business development for MainStreet. Merchant Capital's credit service and funding operations will be transferred to MainStreet Finance Corporation offices in Kirkland Washington.

About MainStreet Finance Corporation

MainStreet Finance Corporation is a Washington company headquartered in Kirkland Washington, specializing in providing specialty business finance for businesses in the US, working through CPA firms, banks, equipment manufacturers and equipment finance companies. MainStreet provides a broad spectrum of financing services from SBA loans, PO and AR finance, leasing, real estate and other forms of asset based lending. For more information, visit MainStreet's Website at www.mainstreetfinance.com.

About Merchant Capital

Merchant Capital specializes in working with entrepreneurial businesses, providing financing for equipment, real estate and SBA loans. Merchant Capital's strategy is to focus their business development efforts on particular industries and develop a competitive advantage by better understanding their customers business and finance needs. This also allows them to work not only with established companies, but also with young companies and even start-ups.

MainStreet Media Contact:

Cliff Monlux, Senior Managing Partner, MainStreet Finance Corporation

866-889-6886, ext. 228

cliff@mainstreetfinance.com

Merchant Capital Media Contact:

Travis Foxx, President, Merchant Capital

800-333-5513

Travis@merchantcapital.net

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KEY EQUIPMENT FINANCE

NAMES

PAUL PIGGOTT & MICHAEL OXBY

EUROPEAN DIRECTORS

SUPERIOR, CO, -- Key Equipment Finance, one of the U.S.'s

largest bank-held equipment financing companies, has announced that Paul

Piggott has been named European business development director, and Michael

Oxby has been named regional sales director for the United Kingdom and

Ireland. Both work within Key's global vendor services business. Their

offices are located at Key Equipment Finance's European headquarters in

Ascot, England.

Mr. Piggott will be responsible for various business development

activities, including prospecting for new programs, researching new

markets/industries and new program development negotiation. Prior to

joining Key Equipment Finance, Mr. Piggott was head of sales finance for

Fujitsu Siemens Computers. He previously was U.K. managing director for

Heller Vendor Financial Services. He also held senior positions at G.E.

Capital Equipment Finance and ABN AMRO.

"Paul has 17 years of experience in the European equipment financing

industry where his record shows consistent sales achievement," said Karen

L. Larson, president and chief operating officer, global vendor services,

Key Equipment Finance. "His focus on the customer's needs and his ability

to build high performing teams will be a great benefit to Key."

Mr. Oxby will spearhead sales efforts in the U.K. and Ireland. Prior to

joining Key Equipment Finance, he was in charge of large enterprise

customer financing for Fujitsu Siemens Computers Ltd. He also held the

position of European business development manager at Heller Global Vendor

Finance UK Ltd. before being promoted to sales director for Heller

Commercial Equipment Leasing, a new joint venture established in the U.K.

He had previously been director at European Capital Finance Ltd. (ECF).

"Mike is a proven sales leader with pan-European business development

experience for both direct and vendor-driven business covering a wide

variety of high and low technology assets," said Karen L. Larson. "His

equipment financing experience will be an asset as he takes on his new

responsibilities at Key."

Key Equipment Finance is an affiliate of KeyCorp (NYSE: KEY) and provides

business-to-business equipment financing solutions to businesses of many

types and sizes. They focus on four distinct markets:

 businesses of all sizes in the U.S. and Canada (from small business

to large corporate);

 equipment manufacturers, distributors and value-added resellers

worldwide;

 federal, provincial, state and local governments as well as other

public sector organizations; and

 lease advisory services for manufacturers' captive leasing and

finance companies.

Headquartered outside Boulder, Colorado, Key Equipment Finance oversees an

$9.3 billion equipment portfolio with annual originations of approximately

$3.5 billion. The company has major management and operations bases in

Toronto, Ontario; Albany, New York; London, England; and Sydney, Australia.

The company, which operates in 24 countries and employs more than 600

people worldwide, has been in the equipment financing business for 30

years. Additional information regarding Key Equipment Finance, its products

and services can be obtained online at KEFonline.com.

Cleveland-based KeyCorp (NYSE: KEY) is one of the nation's largest bank-

based financial services companies, with assets of approximately $85

billion. Key companies provide investment management, retail and commercial

banking, consumer finance, and investment banking products and services to

individuals and companies throughout the United States and, for certain

businesses, internationally. The company's businesses deliver their

products and services through KeyCenters and offices; a network of nearly

2,200 ATMs; telephone banking centers (1.800.KEY2YOU); and a Web site,

Key.com®, that provides account access and financial products 24 hours a

day.

Lisa A. Miller, Corporate Development

Key Equipment Finance

NY-31-66-0900

P.O. Box 1865

Albany NY 12201-1865

Phone: (518) 257-8235

Fax: (518) 257-8821

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Fitch Equipment Lease ABS Delinquency Index Reaches Record Low

NEW YORK----During third quarter 2003, Fitch Ratings' equipment lease asset-backed securities (ABS) delinquency index fell to its lowest level since its December 1997 inception, according to the latest edition of 'The ABS Equipment Expo'.

As of September 30, 2003, total delinquencies over 30 days past due fell 52 basis points from the second quarter to reach 2.45%. Likewise, the three and 12- month moving averages dropped 123 basis points and 59 basis points, respectively. While the economy built muscle and investors embraced a surprising 8.2% annual GDP growth rate during third-quarter 2003 clearly, ABS issuers within the leasing industry have strengthened in-step as evidenced by the index's decline.

Aside from DVI, issuers within Fitch's index remain stable and have delivered solid performance over the past two years. Given the unique nature of the DVI bankruptcy situation, combined with the fact that the company's ailments are not representative of the leasing industry's current health or correlated with its peers' performance, Fitch presents its Equipment Lease ABS Delinquency Index both with and without DVI's third-quarter data.

Overall, the equipment ABS market continues to build on the positive momentum evident through the first half of 2003. While fewer players are financing through the ABS market than in years past, the consolidated sector is dominated by healthier equipment lease ABS issuers.

In addition to highlighting the delinquency index, Fitch's 'ABS Equipment Expo' newsletter features a Leasing Industry update from Fitch's Financial Institutions Group, an update on the DVI, Inc. bankruptcy situation and a spotlight on the CNH Equipment Trust 2003-VA transaction, which closed in October 2003.

All public and 144A Fitch-rated ABS equipment lease transactions since December 1997 are included in Fitch's index, which now tracks the performance of 97 transactions over a five-year period. 'The ABS Equipment Expo' is a publication that follows equipment lease ABS performance, industry trends and developments within the securitization market. Both current and historical editions of the newsletter are available on Fitch's web site at 'www.fitchratings.com' or by contacting the Ratings Desk at 1-800-893-4824.

CONTACT:Fitch Ratings Sara Grohl, 212-908-0564 Matt Burkhard

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NetBank, Inc. Appoints Catherine A. Ghiglieri and Tamara L. Adler to Its Board of Directors

ATLANTA----NetBank, Inc. (Nasdaq:NTBK), parent company of the country's first commercially successful Internet bank, NetBank(R) (www.netbank.com), today announced Catherine A. Ghiglieri and Tamara L. Adler have been appointed to its board of directors.

The board's Corporate Governance Committee recommended both individuals after completing a candidate search and preliminary interview process. The company's full board voted unanimously to approve their appointment, citing their backgrounds in the fields of bank regulation and finance. Ghiglieri will serve on the Compensation Committee, and Adler will serve on the board's Corporate Governance Committee.

"Catherine and Tamara are great additions to our board," said Douglas K. Freeman, chairman and CEO, NetBank, Inc. "Both are seasoned professionals with specialized experience within the financial services industry. Their respective regulatory and securities backgrounds enhance our board's depth. It was also important to further diversify our board to better represent the interests of the large, varied customer base we are fortunate to serve."

Ghiglieri currently serves as president of Ghiglieri & Company, a management consulting firm she founded four years ago after an extensive bank regulatory career. Ghiglieri served as Texas Banking Commissioner for seven years and was responsible for the supervision of the third largest state banking system in the United States. Prior to that, she spent 18 years in various positions of responsibility with the Office of the Comptroller of the Currency.

Ghiglieri received her bachelor's degree in finance from the University of Notre Dame and her law degree from Georgia State University. She currently serves as a member of the Board of Directors of RateGenius.

Adler is a senior finance professional and lawyer with more than 20 years of structured finance, corporate and real estate experience in the United States and Europe. Most recently, she was the managing director and head of the Structured Finance group within Debt Capital Markets at JP Morgan Chase. Prior to joining JP Morgan, she served as the managing director and head of Deutsche Bank's European Securitization Group where she was also a member of Deutsche Bank's Global Markets Management Committee. Adler was also a partner at Hogan & Hartson, LLP in Washington, D.C.

Adler's formal education includes a bachelor's degree in political science from Wellesley College and a law degree from the Northwestern University School of Law. She has served as the Chairman of the Bond Market Association's European Securitization Forum and as a member of its European Advisory Board. Adler is also a member of the Board of Trustees of the e-Learning Foundation (United Kingdom).

Ghiglieri, whose term expires in 2005, replaces Ward H. Clegg who retired from the board this summer. Adler, whose term expires in 2006, fills a newly created position. The company intends to have its shareholders ratify both appointments at its 2004 Shareholder Meeting.

About NetBank, Inc.

NetBank, Inc. (Nasdaq:NTBK) operates with a revolutionary business model through a diverse group of complementary financial services businesses that leverage technology for more efficient and cost-effective delivery of services. Its major subsidiaries include NetBank(R) (www.netbank.com), the country's first commercially successful Internet bank; RBMG, Inc., a wholesale mortgage lender that generates residential mortgages through a nationwide network of independent brokers and correspondent lenders; Market Street Mortgage Corporation, a retail residential mortgage lender that conducts business in 39 states; Meritage Mortgage Corporation, a wholesale mortgage lender that originates non-conforming residential mortgages through a nationwide network of independent brokers; Republic Leasing Company, Inc., a wholesale originator and servicer of commercial business equipment leases; and NetInsurance, Inc. (formerly known as RBMG Insurance Services, Inc.), an online insurance agency representing some of the nation's leading insurance companies. NetBank is a Member FDIC. NetBank, RBMG(R), Market Street Mortgage(R) and Meritage(R) are Equal Housing Lenders.

CONTACT:NetBank, Inc., Atlanta Rich Jeffers, 678-942-7596 rjeffers@netbank.com

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Christmas Gifts---Meaningful presents for the Leasing Industry

We weren’t kidding. These are great presents to give to a colleague,

or even, a banker!!!!

http://two.leasingnews.org/Books.htm

Here are two excellent books:

“Power Tools for Successful Leasing”

"Selling Leasing In A Tough Economy"

http://two.leasingnews.org/Books_Direct.htm#power