Origen Selling Servicing Platform to Green Tree

Origen Financial, a manufactured housing lender based in Southfield, Mich., has agreed to sell its servicing platform and related assets to Green Tree Servicing, St. Paul, Minn. The deal includes the transfer of approximately $1.6 billion of manufactured housing loans. Origen said it will use proceeds from the sale to retire a $15 million loan secured by the servicing assets, partially repay a $46 secured loan facility, and as working capital. As part of the sale, Green Tree will assume the lease for Origen's Fort Worth, Texas, servicing facility. Origen, battered by difficult market conditions, previously announced that it had suspended the origination of new loans for its own portfolio and sold recently originated but unsecuritized loans at a loss. "With the agreement to sell our servicing platform, we are now focused on trying to sell our origination platform assets and right-size our employee and cost structure to accommodate the continued management of our $1 billion securitized loan portfolio," said Ronald Klein, Origen's chief executive. Upon completion of the transaction, Green Tree will see its servicing portfolio grow to over $22 billion. Origen can be found online at http://www.origenfinancial.com.