Dear Colleagues, Friends, and Clients:

I want to let you know about some exciting recent developments pertaining to Co-op Underlying Mortgages and Credit Lines here at Winter & Company:

· On January 15th, 2003 a Fifth Avenue co-op closed a new $3,000,000, 5.38% 10 year, fixed-rate Underlying mortgage. This 100% owner-occupied, 27-story, 45-unit co-op, overlooking Central Park at 79th street, locked it's rate months ago, and we structured the closing of the loan to coincide with the expiration of the prepayment penalty on their current mortgage.

· On December 30th, 2002 we closed a new $4,250,000, 30-year, fixed-rate Underlying mortgage for a 144-unit, Garden Apartment Cooperative located in Fort Lee, New Jersey. This co-op traded in it's old 9.5% balloon mortgage for a long-term, fully self-liquidating loan. The surplus proceeds will help to fund capital improvements and will bolster their reserve fund. The new loan features a very low prepayment penalty during the second half of the loan term, as well as a provision to lend the co-op additional funds over the years if and when they are needed.

· On December 13th, 2002, a previously troubled, 16-story, 209-unit Bronx cooperative refinanced it's above-market rate mortgage with a new 6.06%, $4,250,000, 10-year, fixed-rate mortgage. Although this co-op still has very low owner-occupancy and a sponsor who has borrowed against his shares, we were able to achieve an ultra-competitive 6.06% rate for this post-war co-op, which we had refinanced out of foreclosure only a few years ago in 1999.

· On October 18th, 2002, we closed a $6,700,000, 5.95% 10-year fixed rate for 860 Fifth Avenue, a 156-unit 100% owner occupied cooperative. At the time, it was the lowest 10-year fixed rate that we have locked in the company's 13-year history! As you can see from the 5.38% rate shown above, it has since been surpassed.

· On November 14th, 2002, we closed in a $4,500,000, 6.48% 30-year fixed-rate mortgage for a six-building, 396-unit property in Jackson Heights, Queens. This complex, which was previously debt-free, will devote nearly all the loan proceeds to a series of major capital improvements. A $500,000 unsecured credit line was also arranged for this borrower.

· On August 2nd, 2002 we locked in a forward commitment for a 6.67% 25-year fixed rate, fully amortizing $1,400,000 mortgage. Delaying the closing for 10 months will save this borrower tens of thousands of dollars on the pre-payment penalty on their existing loan.

· We recently closed a $1,850,000 10-year fixed rate Co-op Underlying Mortgage for a 15-story, 34-unit Upper West Side Co-op located on West 67th Street just off Central Park West. We also obtained an unsecured line of credit for this Co-op, and we negotiated their ability to repay a portion of the fixed-rate loan without incurring the usual yield-maintenance prepayment penalty.

· On May 31st, 2002 we closed a 5.34% 15-year fixed rate, fully self-liquidating mortgage for a 162-unit 20-story Co-op in Fort Lee, NJ. The mortgage amount was $2 million along with a $1 million unsecured line of credit priced at only 195 basis points above LIBOR (as of today that would result in an interest rate for the unsecured line of only 3.81%).

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