Origen MH Classes Downgraded

Six classes of Origen Financial Inc. manufactured housing contracts, series 2001-A, have been downgraded by Fitch Ratings.The downgrades are as follows: class A-5, from AAA to AA; classes A-6 and A-7, from AAA to A; class M-1, from AA to BB; class M-2, from A to B-minus; class B-1, from BB to C. Fitch also affirmed the rating on class A-4 in the deal. The rating agency attributed the downgrades to loss severities and default rates. "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." Fitch can be found online at http://www.fitchratings.com.