Origen Suspends Own-Account Originations

Origen Financial Inc., a manufactured housing lender structured as a REIT, says reduced pricing in the whole-loan sales market and the inability to securitize loans are forcing it to suspend originating loans for its own account until the markets recover. The Southfield, Mich.-based company added that it would continue to provide its third-party loan origination business. Ronald A. Klein, chief executive, said even though Origen has no direct exposure to subprime mortgage loans, it has "been subjected to margin calls and market value adjustments on our credit facilities despite our continued excellent loan performance. The ongoing uncertainty and credit stress in the housing and capital markets, and the resulting lack of liquidity, have curtailed access to the securitization market. Further securitization financings of our loans have effectively become unavailable to us on a profitable basis." Origen made the announcement in its statement of fourth-quarter results, revealing that it lost $39.1 million ($1.54 per share) for the quarter and $31.8 million ($1.26 per share) for all of 2007.