Origen sells to Greentree


#1

The field gets smaller and smaller!

Here’s an article off the PR Newswire:

Origen Financial Announces Agreement to Sell Servicing Platform Assets to Green Tree Servicing LLC

SOUTHFIELD, Mich., April 30 /PRNewswire-FirstCall/ -- Origen Financial,

Inc. (Nasdaq: ORGN), a real estate investment trust that is in the business

of originating and servicing manufactured housing loans, today announced it

has entered into an agreement for the sale of its servicing platform assets

to Green Tree Servicing LLC (“Green Tree”), a leading servicer of

manufactured housing loans, as well as other residential and consumer

loans. Upon completion, the transaction will include the transfer of

approximately $1.6 billion of manufactured housing loans. Proceeds from the

sale would be used to retire a $15 million loan secured by the servicing

assets, to partially repay a $46 million secured loan facility entered into

in April 2008 and for working capital. As part of the sale transaction,

Green Tree will assume the lease for Origen’s Fort Worth, Texas servicing

facility.

Completion of the sale is conditioned on approval by Origen's

stockholders, consents by third parties, including trustees of

securitization trusts and rating agencies, and other customary closing

conditions for transactions of this type. Origen expects to present the

proposed sale for approval at its annual meeting of stockholders to be held

in late June 2008. Certain of Origen’s executive management and each of

Origen’s directors have entered into a voting agreement in support of the

transaction. There is no assurance that the sale transaction will be

completed.

Ronald A. Klein, Origen's Chief Executive Officer, stated, "As

previously announced on March 13, 2008, recent and current conditions in

the credit markets have adversely impacted Origen’s ability to originate

loans for its own portfolio. As a result, Origen has recorded significant

losses from the write off of goodwill, suspended origination of new loans

for its owned-loan portfolio, sold its recently originated unsecuritized

loans at a loss and used the proceeds of that sale and a new secured credit

facility to pay off our previous credit facilities. Our Board has now

determined that it is in the best interests of our stockholders to sell the

servicing platform to Green Tree."

Mr. Klein added that, "With the agreement to sell our servicing

platform, we are focused on trying to sell our origination platform assets

and right size our employee and cost structure to accommodate the continued

management of our $1 billion securitized loan portfolio. The servicing sale

does not reflect on the credit performance or long-term realizable value of

Origen’s loan portfolio, which in management’s opinion continues to remain

very high. We are pleased that in Green Tree, we have a new servicer for

our loans that enjoys a well-deserved reputation for excellence and

expertise as a manufactured home loan servicer."

About Green Tree Servicing LLC



Green Tree, a privately held financial services organization

headquartered in St. Paul, Minnesota, services the nation’s largest

portfolio of secured manufactured housing consumer loans and installment

contracts, and is a leading servicer of residential mortgage loans and

other consumer loan products. Green Tree operates service centers in Tempe,

Arizona and Rapid City, South Dakota as well as 30 regional offices located

throughout the United States. Upon completion of this transaction, combined

with other recent acquisitions, Green Tree’s loan servicing portfolio will

grow to over $22 billion. For more information about Green Tree, please

visit http://www.gtservicing.com. ORGN-G

About Origen Financial, Inc.



Origen is an internally managed and internally advised company that has

elected to be taxed as a real estate investment trust. Origen is based in

Southfield, Michigan. For more information about Origen, please visit

http://www.origenfinancial.com.

Forward-Looking Statements



This press release contains various "forward-looking statements" within

the meaning of the Securities Act of 1933 and the Securities Exchange Act

of 1934, and Origen intends that such forward-looking statements will be

subject to the safe harbors created thereby. The words “will,” “may,”

“could,” “expect,” “anticipate,” “believes,” “intends,” “should,” “plans,”

“estimates,” “approximate” and similar expressions identify these

forward-looking statements. These forward-looking statements reflect

Origen’s current views with respect to future events and financial

performance, but involve known and unknown risks and uncertainties, both

general and specific to the matters discussed in this press release. These

risks and uncertainties may cause Origen’s actual results to be materially

different from any future results expressed or implied by such

forward-looking statements. Such risks and uncertainties include, among

others, the foregoing assumptions and those risks referenced under the

headings entitled “Factors That May Affect Future Results” or "Risk

Factors" contained in Origen’s filings with the Securities and Exchange

Commission (the “SEC”). In addition, as reported in this release, Origenis

selling a substantial portion of its assets, which injects considerable

uncertainty beyond risks associated with a continuing business enterprise.

The forward-looking statements contained in this press release speak only

as of the date hereof and Origen expressly disclaims any obligation to

provide public updates, revisions or amendments to any forward- looking

statements made herein to reflect changes in Origen’s expectations or

future events.

Additional Information and Where it Can Be Found



In connection with the proposed sale transaction, Origen will file a

proxy statement and other materials with the Securities and Exchange

Commission. WE URGE INVESTORS TO READ THE PROXY STATEMENT AND THESE OTHER

MATERIALS CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN

IMPORTANT INFORMATION ABOUT ORIGEN AND THE PROPOSED TRANSACTION. Investors

will be able to obtain free copies of the proxy statement and a related

proxy card (when available) as well as other filed documents containing

information about Origen at http://www.sec.gov, the SEC’s website. Free

copies of Origen’s SEC filings are also available at

http://www.origenfinancial.com, Origen’s website.

Origen and its executive officers and directors may be deemed, under

SEC rules, to be participants in the solicitation of proxies from Origen’s

stockholders with respect to the proposed sale transaction. Information

regarding the officers and directors of Origen is included in its Amendment

No. 1 to Annual Report for the year ended December 31, 2007 on Form 10-K/A

filed with the SEC on April 29, 2008. More detailed information regarding

the identity of potential participants, and their direct or indirect

interests, by securities, holdings or otherwise, will be set forth in the

proxy statement and other materials to be filed with the SEC in connection

with the proposed sale transaction.


#2

I sure hope that at some point in the near future a lending model emerges that is sustainable, profitable, and effective in facilitating MH sales. I realize that few on this forum are particularly affected by the lack of lending by nation wide companies. And while I love the model used to fill vaccant lots by putting loans togather inhouse, I am concerned that during these past 8 years new home sales into parks have dwindled to a precious few, if we continue much longer at this rate all we will have for sale are very old homes. At that point it is hard to imagine much value in MHP’s.


#3

Shawn,

I have a meeting with Jim Clayton next week and a “Chattel Loan Program for MHP Operators” is at the top of my list.

The only way I see anyone jumping back into the chattel loan business is with the help (and skin) of MHP owners and operators. Let’s face it, banks are in business to make money and if they continually lose on MH loans, they surely won’t stay in that type of lending very long.

I’ll give you an update if anything develops from our meeting.

Steve


#4

I think having skin in the game for the park operator is a risk we all can live with. Here is a thought for J.C. - If each bonafide MHP in the USA sold just 1 new MH per year, it would result in a 50% increase in MH production over 2007 numbers.


#5

Great point. Unfortunately, Jim now focuses on banking instead of manufacturing. However, maybe he can convince Kevin that there is a bonafide market out there in park owners.

Steve