Origen Financial, Inc. : Dec 13 2012 - Origen Financial Inc Announces Preliminary Unaudited 3nd Qtr 2012 Results

o R I G E

At Origen Financial: W. Anderson Geater Chief Financial Officer [phone]

FOR IMMEDIATE RELEASE THURSDAY, DECEMBER 13,2012

At Financial Relations Board:

HanHuie
[phone] [e-mail]

ORIGEN FINANCIAL ANNOUNCES THIRD QUARTER 2012 RESULTS

SOUTHFIELD, MI- December 13, 2012- Origen Financial, Inc. (Pink Sheets: ORGN) ("Origen" or the "Cornpany''), a rea!estate investrnent tmst that rnanages residua!interests in securitized rnanufactured housing loan portfolios, today announced a net loss of $1.9 rnillion, or

$0.07 per share, for the quarter ended Septernber 30, 2012, as cornpared to a net loss of $1.8 rnillion, or $0.07 per share, for the third quarter of2011, as restated. Net loss for the nine months ended Septernber 30, 2012 was $1.3 million, or $0.05 per share, as cornpared to a net loss of $7.4 rnillion, or $0.28 per share for the nine rnonths ended Septernber 30, 2011, as restated. The 2012 year to date results include a first quarter gain of approxirnately $6.2 rnillion relating to the termination of certain of Origen's interest rate swap transactions with Citibank, N.A.
During the rnonth ofOctober 2012, the Cornpany received notice frorn the Bank ofNewYork Mellon, in its capacity as indenture trustee (the "Trustee") for Origen Manufactured Housing Contract Trust 2006-a and Origen Manufactured Housing Contract Trust 2007-a (the "Issuers"), disclosing that the Trustee had, beginning July 31,2009 and ending August 31,2012, calculated the interest rate on the Issuers' Class A-2 notes at a rate higher than that prescribed by the related indentures. The indentures specify that the Note Rate for the Class A-2 notes will be the least of the applicable Auction Rate, Net Contract Rate and the rnaxirnurn cap rate of 18.00 percent per annurn. During the indicated periods the Trustee had applied the higher applicable Auction Rate. The over-calculation of interest resulted in underpayrnent of principal to the Class A-1 Notes.
The Tmstee initiated a reclaim process with the Depository Tmst Cornpany ("DTC"), through
which DTC is seeldng the return of the interest overpayrnents. Since the Cornpany structured the subject transactions as financings, any restaternent of arnonnts previously disbursed, between principal payrnents and interest payrnents, are required to be reflected in the financial staternents ofthe Cornpany. Accordingly, the Cornpany has restated its Consolidated Financial Staternents for the three and nine rnonths ended Septernber 30, 2011 to reflect the reduced interest expense
on the Notes. The reduction in interest expense for the three rnonths ended Septernber 30, 2011,
was approxirnately $0.3 rnillion and the reduction in interest expense for the nine rnonths ended Septernber 30, 2012 was approxirnately $1.0 rnillion. Such restaternents had no irnpact on cash payrnents to the Cornpany relating to its residua!interests in the affected securities.

-MORE-

Origen Financial, Inc. Addl

On December 13, 2012, Origen's Board ofDirectors declared a dividend on common stock of
$0.13 per share to be paid to holders ofOrigen's common stock ofrecord on December 24, 2012. The dividend will be paid on December 28, 2012 and will approximate $3.4 million. The cash dividend will represent a return of capitai for tax purposes.
Net interest incarne, before loan losses and impairment, decreased by approximately 9 percent for the third quatter 2012 to $4.8 million from $5.3 million the third quarter 2011 and decreased approximately 24 percent to $13.7 million for 2012 year to date versus $18.0 million for 2011. Such decrease is the result ofthe continued runoff ofthe Company's static loan portfolio. The third quarter 2012 provision for loan losses was $4.1 million versus $4.9 million for the prior yeat· quarter, a decrease of approximately 16 percent. The provision for loan losses for 2012 year to date was $14.1 million as compat·ed to $18.1 million for the prior year to date, a decrease of approximately 22 percent.
Non-interest expenses, including $1.9 million ofloan servicing expense, were $2.7 million for the third quarter 2012, as compared to $3.1 million, including $2.2 million ofloan servicing expense, for the year ago quarter, a decrease of approximately 13 percent. Year to date 2012 non-interest expenses, including $6.0 million ofloan servicing expense, were $8.6 million as compared to $9.9 million, including $6.9 million of loan servicing expense, for the prior year to date, a decrease of approximately 13 percent.

Earnings Cali and Webcast

A conference cali has been scheduled for Tuesday, December 18, 2012, at 2:00p.m. Eastern
Time to discuss third quarter results and current operations. The call may be accessed by dialing
888-395-3227 or 719-457-2645. A replay will be available through December 26,2012 by dialing 877-870-5176 or 858-384-5517 pass code 3492552.

Forward-Looking Statements

This press release contains various "forward-looking statements" within the meaning ofthe Securities Act of 1933 and the Securities Exchange Act of 1934, and Origen intends that such forward-looking statèments 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 generai 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. 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.

-MORE-

Origen Financial, Inc.

Add2

Abont Origen Financial, Inc.

Origen is an intemally managed and internally advised company that has elected to be taxed as a rea!estate investment ttust. Origen is based in Southfield, Michigan.
For more information about Origen, please visit ltttp:llwww.origentinancial.com.

Financial Tables Follow...

-MORE-

Origen Flnanclal, lnc.

Add3

ORIGEN FINANCIAL, INC. CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

ASSETS

A

To

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Securitization Financing 509,899 559,420

Derivative Liabilities 38,932 41,662

Other Liabilities 9,879 9,963

Total Liabilities 558,710 611,045

Equity 25,102 40,587

Total Liabilities and Equity $ 583,812 $ 651,632

·MORE·

Origen Financial, lnc.

Add4

lnterest lncome

ORIGEN FINANCIAL, INC. CONSOLIDATED STATEMENT OF EARNINGS (Dollars in thousands, except for share data)

(Unaudited) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30,

2012 2011 (as restated) 2012 2011 (as restated)

Totallnterest lncome	$ 13,539	$ 15,623	$ 42,234	$ 48,397
Total lnterest Expense	8,699	10.322		30,440
Net lnterest lncome Before Loan Losses and lmpairment	4,840	5,301		17,957
Provision for Loan Losses	4,074	4,871	14,136	18,103
lmpairment cf Purchased Loan Peci
Net lnterest lncome (Loss) After Loan Losses and lmpairment	766	430	(413)	(146)
Non-interest lncome (Loss)
Gain on Derivative Other	103		6,278 1,51o	2,735
Total Non-interest lncome Non-interest Expenses	103		7,788	.,735
Total Personnel	345	349	1,069	1,177
Total Loan Origination & Servicing	1,935	2,217	6,009	6,890
State Taxes	29	55	200	180
Other Operating	428	520	1,362	1,678
Tota! Non-interest Expenses	2,737	3 141	8,640	9,925
Net Loss Before lncome Taxes	(1,868)	(1,768)	(1,265)	(7,336)

lncome Tax Expense {Benefit) 11 14 43

Net Loss $ (1,879) $ (1,782) $ (7,379)

Weighted Average Common Shares Outstanding, Basic and Diluted 25,926 25,926,149 25,926,149 25,926 149

Net Loss Per common Share $ (0,0])_ $ (Q,.()Z.L $ (0.05)_$ (0.28)_

...