Origen MH Class Downgraded

Class M-2 of Origen Financial Inc. manufactured housing contracts, series 2001-A, has been downgraded from B-minus to CCC by Fitch Ratings.In addition, Fitch affirmed the ratings on five other classes in the deal. Southfield, Mich.-based Origen, formerly named Dynex Financial, is a privately held company that provides financing for the purchase of manufactured housing. "Loss severity on Origen's liquidated loans have been better than the industry average due to the company's dealer relationships and ability to provide financing for purchasers of repossessed units," Fitch said. "Despite this advantage, problems in the manufactured housing sector have caused loss severities to be higher than Fitch's initial expectations. This, coupled with higher default rates, has reduced the relationship between expected losses and credit enhancement."