DYNEX SHOWS SOME BOUNCE, SETS SIGHT ON ABS


Finance company Dynex Capital Inc., after exhibiting some resiliency during the second quarter by recovering somewhat from its poor first quarter showing, is gearing up to tap the securitization market sometime this quarter or early next quarter.

However, company spokeswoman Kathy Fern said there were no further details available on the planned issuance and that the company has not yet decided on investment bankers.

Despite plans to exit the manufactured housing lending business, Fern said that Dynex funded $130 million in such loans during the second quarter. Overall, the company's loan production totaled $295 million for the quarter, including $123 million in multifamily/commercial loans and $42 million from its specialty finance division.

Heading into the second half of 1999, Dynex said it held over $405 million of loans for securitizations, up from $388 million at the start of the year.

Those figures come as company officials move forward with their plans to sell the manufactured housing business. Company president Thomas H. Potts said "we have indications of interest from several companies. We anticipate that the sale should be completed sometime during the fourth quarter of 1999."

Over the balance of the year, Potts said, runoffs from the investment portfolio may continue to exceed its direct loan production, and "we may experience additional losses on the sale of commercial whole loans."

- David Feldheim