Origen Financial Inc., a Southfield, Mich.-based real estate investment trust that manages residual interests on manufactured housing loan securities, lost $3.5 million in the second quarter, a 15% improvement over the $4.1 million lost in the same period last year.
The company reported a decline in net interest income before loan losses and impairment of $5.2 million. When the $6.4 million loan loss provision is included, the company had a net interest loss of $1.2 million, a 207% change from the $385,000 net interest loss for the second quarter 2010.
During the quarter, Origen sold its retained ownership in Origen Manufactured Housing Contract Trust Collateralized Notes, Series 2004-B, Class B-2 for proceeds of nearly $3 billion. Those proceeds were distributed as part of a $4.4 million dividend paid to shareholders on June 22.
Ronald A. Klein, Origen's chief executive, said, "While our cash flow was strong during the quarter, the weak housing market continues to impact our loan pools as recovery rates remain low. Overall loan performance was stable, however we did see a small increase in delinquency in some of our pools as our borrowers remain challenged by the high unemployment rate and the weak economy."
The dollar amount of repossessed homes on the company's balance sheet fell to $5.2 million from $6.7 million at the end of last year.
