Bingham Financial Services Corporation Announces $40 Million Equity Raise for Origen Financial.

Business Editors

BIRMINGHAM, Mich.--(BUSINESS WIRE)--Dec. 19, 2001

Bingham Financial Services Corporation (Nasdaq:BFSC) announced today it had closed its previously announced recapitalization of Origen Financial, Inc. and Bingham's other operating subsidiaries. In the recapitalization, Bingham's operating subsidiaries are being converted to limited liability companies and three investors have made capital contributions totaling $40 million in the limited liability companies. The funds from the capital contributions have been used to repay a substantial portion of Origen Financial, Inc.'s and Bingham's debt to Sun Communities Operating Limited Partnership. The remaining portion of this debt has been restructured as a one-year line of credit between Origen Financial, Inc. and Sun Communities Operating Limited Partnership.

Bingham will retain an initial ownership interest of approximately 17% and the three investors will receive an initial aggregate ownership interest of approximately 71% in the reorganized limited liability companies, in each case on a fully diluted basis after giving effect to options held by management of the limited liability companies to acquire an ownership interest of up to 11.5%. "We are extremely pleased to have implemented our recapitalization," said Ronald A. Klein, Bingham's President and Chief Executive Officer. "The equity raise from investors provides Origen with much needed capital. In particular, it provides Origen with a capital structure that should allow it to better execute its securitizations of manufactured home loans."

The recapitalization will be completed when Origen Financial, Inc. and its subsidiaries are merged into Origen Financial L.L.C. and its subsidiaries. That will occur when Origen Financial L.L.C. obtains all material licenses and permits it needs to continue to operate Origen Financial, Inc.'s business. The parties expect the mergers to occur in the first quarter of 2002. Until the mergers are completed, all of the economic benefit of the operations of Origen Financial, Inc. and its subsidiaries will accrue to Origen Financial L.L.C.

All statements made in this document and in any other communication regarding Bingham that are not statements of historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and Bingham intends that such forward-looking statements be subject to the safe harbors created thereby. The words "believe," "expect," "anticipate," and similar expressions are examples of words that identify forward-looking statements, which may include, without limitation, statements regarding Bingham's future financial position, business strategy and expected cost savings or synergies. Each forward-looking statement is subject to risks, uncertainties and other factors, that could cause actual results to differ materially from future results expressed or implied by such forward-looking statement. Important factors that could cause actual results to differ materially from the results expressed or implied by any forward-looking statements include general economic conditions with particular emphasis on certain interest rates, competition and other factors. All subsequent written and oral forward-looking statements relating to Bingham and attributable to Bingham or to persons acting on behalf of any of them are expressly qualified in their entirety by the risk factors set forth in Bingham's most recent Annual Report on Form 10-K, which is incorporated by reference in this press release. Bingham undertakes no obligation to update or revise these forward-looking statements, publicly or otherwise, to reflect new information or future events.