Auditor Raises Doubts about Origen's Future

Manufactured housing lender Origen Financial Inc., Southfield, Mich., said its auditor, Grant Thornton, has given the company an unqualified opinion, a move which in accounting terminology raises doubt about the real estate investment trust's ability to continue as a going concern. Based on the value of its assets and discussions with third parties regarding strategic alternatives, Origen said it would be able to raise the additional funds it needs on a timely basis. Meanwhile the company has sold unsecuritized loans with a carrying value of $176 million for proceeds of $155 million. Many of the proceeds were used to pay off its warehouse line. Origen's debt is now $46 million under its supplemental advance facility and $15 million under related party notes secured by servicing fees. Origen previously said it is halting all originations for its own portfolio because of the inability to securitize its production.