Citing its strong cash position, Vanderbilt Mortgage postponed last week its plans to sell up to $250 million of a manufactured housing receivables-backed security, a company source said.

"We currently have $197 million in cash on our books and the mortgages we are holding have been generating so much cash we don't have the need to securitize this quarter," said the company spokesman.

This will be the first quarter since 1994 in which Vanderbilt will not securitize a portion of its mortgage portfolio. The Maryville, Tenn.-based unit of Clayton Homes Inc. will return to the ABS market sometime in August, the spokesman added.

"Currently $397 million in mortgages with a 11.1% coupon rate is available for securitization and Clayton Homes will take advantage of the efficiencies involved in a larger transaction in August," said CEO and President Kevin Clayton in a release.

The proposed series 2001-2 offering was scheduled to be led via Credit Suisse First Boston.

Vanderbilt is the mortgage lending and insurance arm of Clayton, a leading producer of manufactured housing.

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