Palm Harbor Homes Cites Mortgage Loan Sale

Palm Harbor Homes Inc., a Dallas-based manufacturer and marketer of factory-built homes, has announced the sale of approximately $51.3 million of chattel and mortgage loans by its mortgage lending subsidiary, CountryPlace Mortgage Ltd. The loans represented the majority of CountryPlace's $69.4 million warehoused portfolio of chattel and mortgage loans. Approximately $41.5 million of the proceeds were used to repay in full and terminate the company's warehouse borrowing facility, Palm Harbor said. "Multiple parties expressed interest in our warehoused portfolio, and we believe the positive market response, in sharp contrast to the tightening mortgage credit markets, reflects the strength of our business model and our strict underwriting standards, the historically strong performance of our two securitized financings, and the high quality of our assets," said Larry H. Keener, chairman and chief executive officer of Palm Harbor. The company can be found online at http://www.palmharbor.com.