Origen Financial Announces Final Third Quarter 2009 Results

SOUTHFIELD, Mich., Nov. 12 /PRNewswire-FirstCall/ -- Origen Financial, Inc.
(Pink Sheets: ORGN), a real estate investment trust that manages residual
interests in securitized manufactured housing loan portfolios, today announced
a net loss of approximately $4.3 million or $0.17 per share, for the quarter
ended September 30, 2009, as compared to a net loss of approximately $1.2
million, or $0.04 cents per share, for the third quarter of 2008. For the
nine months year to date, Origen realized a net loss of approximately $6.3
million, or $0.24 per share, as compared to a net loss of approximately $30.9
million, or $1.21 per share, for the same period in 2008. Origen's Board of
Directors did not declare a dividend on its common stock for the third quarter
of 2009.

The third quarter 2009 provision for loan losses was approximately $6.8
million versus approximately $4.6 million for the prior year quarter, an
increase of 48 percent. Year to date, the loan loss provision totaled
approximately $15.7 million as compared to a provision of approximately $11.0
million for the first nine months of 2008, an increase of 43 percent. The
aging of Origen's static loan portfolio as loans enter the peak years for
delinquencies and defaults, as well as overall economic conditions, especially
the increased unemployment rate, has increased the level of loan loss
reserves needed, and has resulted in increased loan loss provisions.

As previously reported, we ceased originating loans for own account in March
2008, and pursuant to the execution of the Asset Management and Disposition
Plan ("the Plan") as approved by our shareholders in June 2008 and detailed in
our proxy filing dated May 22, 2008, we sold our loan servicing-related assets
effective July 1, 2008 and sold our loan origination platform and insurance
operations effective July 31, 2008. Our only remaining business is the
management of retained interests in our securitized loan portfolios. In
December 2008, we voluntarily delisted our common stock from the NASDAQ Global
Market and also deregistered the stock under the Securities Exchange Act of
1934. Since December 31, 2007, we have reduced our workforce by 96 per cent
and have dramatically reduced the operating and overhead costs associated with
on-going operations.

Net cash flows from operations and the use of excess liquidity enabled Origen
to pay down $4.8 million of principal on related party debt during the
quarter. Year to date through September 30, 2009, principal pay downs totaled
$9.7 million. Subsequent to quarter end, additional principal payments of
$1.9 million were made.

Ronald A. Klein, Origen's Chief Executive Officer, stated, "Our portfolio
performance continues to be impacted by the ongoing increase in the national
employment rate and issues in the housing market. This has necessitated an
increase to our loan loss reserves. Notwithstanding these difficulties, our
cash flows have continued to be strong and have significantly exceeded our
monthly cash expenses. This has allowed us to repay an additional $6.7
million of our related party debt since the end of the second quarter 2009."

Earnings Call and Webcast

A conference call and webcast have been scheduled for Friday, November 13,
2009, at 11:00 a.m. Eastern Time to discuss third quarter results. The call
may be accessed by dialing 888-747-4626. A replay will be available through
February 13, 2009 by dialing 888-203-1112 passcode 1090634.

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.

Financial Tables Follow...

ORIGEN FINANCIAL, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

ASSETS

(Unaudited)
September 30, December 31,
2009 2008
---- ----
Assets
Cash and Equivalents $6,113 $14,118
Restricted Cash 11,393 12,927
Investment Securities 9,749 9,739
Loans Receivable 831,394 911,947
Furniture, Fixtures and Equipment, Net 238 401
Repossessed Houses 7,673 4,543
Other Assets 7,683 11,858
----- ------
Total Assets $874,243 $965,533
======== ========

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities
Securitization Financing 709,280 775,120
Note Payable-Related Party 19,866 29,351
Derivative Liabilities 40,712 57,887
Other Liabilities 15,603 24,980
------ ------
Total Liabilities 785,461 887,338
------- -------

Equity 88,782 78,195
------ ------

Total Liabilities and Equity $874,243 $965,533
======== ========

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

Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Interest Income
Total Interest Income $19,274 $23,471 $62,021 $67,896
Total Interest Expense 12,561 14,222 38,608 46,739
------ ------ ------ ------
Net Interest Income Before
Loan Losses and Impairment 6,713 9,249 23,413 21,157
Provision for Loan Losses 6,755 4,649 15,739 11,021
Impairment of Purchased
Loan Pool 158 329 370 596
--- --- --- ---
Net Interest Income After
Loan Losses and Impairment (200) 4,271 7,304 9,540
Non-interest Income (Loss)
Servicing Income - - - 1,303
Losses on Loans Held for
Sale - - - (22,377)
Other 363 991 1,637 (3,919)
--- --- ----- ------
Total Non-interest Income
(Loss) 363 991 1,637 (24,993)
Non-interest Expenses
Total Personnel 720 7,254 3,566 16,696
Total Loan Origination &
Servicing 2,838 3,252 8,751 3,871
Investment Impairment 89 - 89 -
State Taxes 59 96 176 378
Total Other Operating 919 1,452 2,925 5,470
--- ----- ----- -----
Total Non-interest Expenses 4,625 12,054 15,507 26,415
----- ------ ------ ------
Income (Loss) From
Continuing Operations
Before Income Taxes (4,462) (6,792) (6,566) (41,868)
Income Tax Expense 17 12 56 75
--- --- --- ---
Income (Loss) From
Continuing Operations (4,479) (6,804) (6,622) (41,943)
Income From Discontinued
Operations Net of Income
taxes 151 5,631 331 11,004
--- ----- --- ------
Net Income (Loss) $(4,328) $(1,173) $(6,291) $(30,939)
======= ======= ======= ========

Weighted Average Common
Shares Outstanding,
Basic 25,926,149 25,926,149 25,926,149 25,610,227
========== ========== ========== ==========
Weighted Average Common
Shares Outstanding,
Diluted 25,926,149 25,926,149 25,926,149 25,610,227
========== ========== ========== ==========
Basic Earnings Per Common
Share:
Income (Loss) From
Continuing Operations $(0.17) $(0.26) $(0.25) $(1.64)
Income From Discontinued
Operations - 0.22 0.01 0.43
--- ---- ---- ----
Net Income (Loss) $(0.17) $(0.04) $(0.24) $(1.21)
====== ====== ====== ======

Notes:
* Prior to July 1, 2008, loan servicing fees were netted out of loan
interest income and recorded as servicing fee income to Origen;
beginning July 1, 2008, loan servicing fees were paid to Green Tree
Servicing and recorded as non-interest expense.
* For explanations of 2008 results of operations see the Company's annual
report on Form 10-K and Form 10-K/A for the year ended December 31,
2008 and the Company's quarterly report on Form 10-Q for the quarter
ended September 30, 2008.

SOURCE Origen Financial, Inc.

W. Anderson Geater, Chief Financial Officer of Origen Financial,
+1-248-746-7010; or Leslie Loyet of Financial Relations Board,
+1-312-640-6672, lloyet@frbir.com, for Origen Financial