Origen Financial Announces Third Quarter 2010 Results

SOUTHFIELD, Mich., Nov. 10, 2010 /PRNewswire-FirstCall/ -- Origen Financial, Inc. (Pink Sheets: ORGN) ("Origen"), a real estate investment trust that manages residual interests in securitized manufactured housing loan portfolios, today announced a net loss of approximately $2.9 million, or $0.11 per share, for the quarter ended September 30, 2010, as compared to a net loss of approximately $4.3 million, or $0.17 cents per share, for the third quarter of 2009.  For the nine months year to date, Origen realized a net loss of approximately $10.9 million, or $0.42 per share, as compared to a net loss of approximately $6.3 million, or $0.24 per share, for the same period in 2009.

Origen's Board of Directors declared a dividend payment of $0.10 per share to be paid to holders of Origen's common stock of record on November 30, 2010.  The dividend will be paid on December 21, 2010, and will approximate $2.6 million.  The cash dividend will represent a return of capital.

The third quarter 2010 provision for loan losses was approximately $5.7 million versus approximately $6.8 million for the prior year quarter, a decrease of 16 percent.  Year-to-date, the loan loss provision totaled approximately $19.7 million as compared to a provision of approximately $15.7 million for the first nine months of 2009, an increase of 25 percent.  The aging of Origen's static loan portfolio as loans enter the expected peak years for delinquencies and defaults, as well as overall economic conditions, especially the increased unemployment rate, has generally increased the level of loan loss reserves needed.  This has been mitigated to some degree by the decline in the total balance of the loan portfolio. Non-interest expenses, including loan servicing fees, totaled $3.9 million for the third quarter 2010 and $12.2 million for the nine months year to date, representing decreases of 17 percent and 22 percent, respectively, from the year ago periods.

Net cash flows from operations enabled Origen to pay down $3.0 million of principal on related party debt during the quarter. Year to date through September 30, 2010, principal pay downs totaled $15.2 million.  On October 15, 2010, Origen paid off the remainder of the related party debt.

Ronald A. Klein, chief executive officer, stated, "Our loans continued to perform in line with the previous quarter's performance and our cash flows allowed us to completely repay our related party debt subsequent to quarter end.  Pursuant to the Plan adopted by stockholders in 2008, management believes that, at this time, efficient management of the residual interests in our securitized loan portfolio will continue to result in greater overall distributions to stockholders than a sale of such residual interests under current market conditions.  Therefore, consistent with the Plan, the Board has determined that we should begin paying dividends with our excess cash flow.  The timing and amount of dividends will vary and will be dependent on numerous factors including, but not limited to, loan amortization and performance, hedge positions, costs associated with managing the portfolio, managing the redemption rights related to the call provisions of our securitization transactions, and other opportunities to preserve or enhance stockholder value."

Earnings Call

A conference call has been scheduled for Thursday, November 11, 2010, at 11:00 a.m. Eastern Time to discuss third quarter results.  The call may be accessed by dialing 877-795-3610 or 719-325-4887.  A replay will be available through November 18, 2010 by dialing 877-870-5176 passcode 8977408.  

Forward-Looking Statements

This press release contains various "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, and Origen intends that such forward-looking statements will be subject to the safe harbors created thereby. The words "will," "may," "could," "expect," "anticipate," "believes," "intends," "should," "plans," "estimates," "approximate" and similar expressions identify these forward-looking statements. These forward-looking statements reflect Origen's current views with respect to future events and financial performance, but involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this press release. These risks and uncertainties may cause Origen's actual results to be materially different from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the foregoing assumptions and those risks referenced under the headings entitled "Factors That May Affect Future Results" or "Risk Factors" contained in Origen's filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release speak only as of the date hereof and Origen expressly disclaims any obligation to provide public updates, revisions or amendments to any forward- looking statements made herein to reflect changes in Origen's expectations or future events.

About Origen Financial, Inc.

Origen is an internally managed and internally advised company that has elected to be taxed as a real estate investment trust. Origen is based in Southfield, Michigan.

For more information about Origen, please visit http://www.origenfinancial.com.

SOURCE Origen Financial, Inc.