100+ Conseco Classes Downgraded

More than 100 classes in 57 securitizations of manufactured housing contracts by Conseco Finance Corp. and its predecessor, Green Tree Financial Corp., have been downgraded by Fitch Ratings.In addition, the ratings on over 100 classes in the 57 MH deals were affirmed. The downgrades reflect the "continued high level" of delinquencies and losses, Fitch said. CFC filed for Chapter 11 bankruptcy protection in December and announced that it would no longer originate MH loans. "Since the liquidation of repossessed units through the retail channel relies on providing financing for the new purchaser, CFC has relied exclusively on the wholesale channel to liquidate repossessions since the bankruptcy," Fitch said. "This has caused an increase in loss severities due to the lower recoveries available through the wholesale channel." Fitch said the recent finalization of CFC's sale of its MH platform to CFN Investment Holdings LLC is "a positive development that will provide continuity in the servicing of the loans," but added that there is still uncertainty regarding the servicing platform. The rating agency can be found online at http://www.fitchratings.com.