Briefly, the future of Conseco Finance now appears to be clear. Early this morning CFN Investment Holdings LLC (a joint venture) agreed to pay $700 Million in cash for the manufactured housing, home equity and home improvement unit, excluding Conseco's Mill Creek Bank (primarily a credit card lender), which will be acquired by GE Capitol for $310 Million. Two reliable sources at Conseco's headquarters told me today that they expect the sale to be completed in 60 days or less, and that CFN has indicated a strong interest in once again generating new and pre-owned manufactured home loans sometime in the future, once the new management group becomes familiar with the manufactured housing industry.

We were also informed by Conseco today that any Conseco repossession in a Commonwealth community will be treated as "business as usual" in Oregon or Washington, and that a relief of stay from bankruptcy is not necessary to collect rents or to proceed with the abandonment process (storage agreements etc.) in Oregon. Conseco informed me that it would be "a waste of time and money" to pursue this through legal channels since they voluntarily acknowledge their responsibility for paying space rent, and their willingness to honor storage agreements and the abandonment process with Commonwealth is clear.

Commonwealth's steadfast commitment to working with our industry lenders on a friendly and cooperative basis during these troubling times has once again proven to be an effective way of solving problems and protecting our clients investments, while maintaining a mutually beneficial relationship with our valued business partners.

Greg Harmon - President
Commonwealth Real Estate Services
E-mail: greg@cwres.com
Telephone 503.244.2300 Ext. 101