Origen Estimates Storm-Related Losses

Origen Financial Inc., a manufactured housing lender based in Southfield, Mich., has reported that its provisions for loan losses related to hurricanes Katrina and Rita are expected to range from $5 million to $7 million.The anticipated losses represent less than 1% of the company's total loan portfolio, Origen said. Additionally, preliminary indications suggest that the loss exposure for Hurricane Wilma, which cut through South Florida earlier this week, will be substantially less than for Katrina and Rita. "Unfortunately, the reality of the situation is that many homes have been destroyed, and numerous jobs lost due to the unprecedented economic dislocation caused by these storms, and Origen will suffer losses as a result," said Ronald A. Klein, Origen's chief executive. "Nevertheless, our business continues to move forward. Despite the lack of any volume contribution from the hurricane-affected regions, September was our best production month of 2005, approximately 7.5% better than September 2004, and October is on pace to exceed September's volume." Meanwhile, Sun Communities Inc., also of Southfield, a real estate investment trust that owns and operates manufactured housing communities, said its third-quarter results were hurt by Origen's hurricane loan losses, which reduced Origen's contribution to Sun's earnings by $0.08 per share. Sun at one point owned Origen's predecessor firm and still has a stake in the company.