Origen Completes Sale of Servicing Portfolio to Green Tree
Origen Financial, Inc. (ORGN) said Wednesday that it had completed a previously-announced sale of its servicing platform assets to Green Tree Servicing LLC, a well-known servicer of manufactured housing loans, other residential and consumer loans. The deal involves approximately $1.6 billion of manufactured housing loans, Origen said in a press statement. Green Tree will also assume the lease for Origen's Fort Worth, Texas-based servicing facility. Specifics of the transaction were not made public, but Origen said in a press statement that it used proceeds from the sale to retire a $15 million loan, to partially repay a $46 million secured loan facility entered into in April 2008, and for working capital. "With the agreement to sell our servicing platform, we are 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," Origen CEO Ronald Klein said in May, when the deal was first announced. Shares in Origen had fallen 3.62 percent to $1.33 in afternoon trading when this story was published. Disclosure: The author held no positions in ORGN when this story was originally published. HW reporters and writers follow a strict disclosure policy, the first in the mortgage trade.