Franklin Credit Management Corp.
(OTC:FCSC) (BULLETIN BOARD: FCSC) , a specialty financial services company that
acquires, manages and sells subprime residential mortgage assets, today
announced the purchase of a mixed pool of performing, subperforming, and
nonperforming mortgage loans (and related servicing rights) with a face value
totaling approximately $99.3 million. The loans, which are secured by single-
family residences, were purchased from Master Financial Corporation, N.A.
Master Financial Corporation is a national mortgage banking company that is
headquartered in Orange, CA.
The purchase of the mortgage pool was funded by an extension of the Company's
Senior Debt facility with Sky Financial Bank ("Sky Financial") pursuant to the
Company's Master Credit and Security Agreement with Sky Financial. The new
Senior Debt bears interest at a rate initially equal to 5.5% adjusted monthly
as provided in the Master Credit Agreement.
"We are very pleased to announce the closing of this bulk purchase of subprime
mortgage loans," stated Jeffrey Johnson, Chief Executive Officer of Franklin
Credit Management Corp. "On a pro forma basis, the purchase expands our Net
Notes Receivable portfolio by more than 12.6%, to approximately $732 million as
of June 30, 2004. We expect the acquisition of this mortgage pool to be
accretive to net income and earnings per share in the twelve months following
the closing of the transaction."
About Franklin Credit Management Corp.
Franklin Credit Management Corporation ("FCMC", and together with its
wholly-owned subsidiaries, the "Company") is a specialty consumer finance and
asset management company primarily engaged in the acquisition, origination,
servicing and resolution of performing, sub-performing and non-performing
residential mortgage loans and residential real estate. The Company acquires
these mortgages from a variety of mortgage bankers, banks, and other specialty
finance companies. These loans are generally purchased in pools at discounts
from their aggregate contractual balances, from sellers in the financial
services industry. Real estate is acquired in foreclosure or otherwise and is
also generally acquired at a discount relative to the appraised value of the
asset. The Company conducts its business from its executive and main office in
New York City and through its website http://www.franklincredit.com/. Its
common stock trades on the OTC Bulletin Board under the symbol "FCSC".
Statements contained herein that are not historical fact may be forward-
looking statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, that are subject to a variety of risks and uncertainties. There are a
number of important factors that could cause actual results to differ
materially from those projected or suggested in forward-looking statements made
by the Company. These factors include, but are not limited to: (i)
unanticipated changes in the U.S. economy, including changes in business
conditions such as interest rates, and changes in the level of growth in the
finance and housing markets; (ii) the status of relations between the Company
and its sole Senior Debt Lender and the Senior Debt Lender's willingness to
extend additional credit to the Company; (iii) the availability for purchases
of additional loans; (iv) the status of relations between the Company and its
sources for loan purchases; (v) unanticipated difficulties in collections under
loans in the Company's portfolio; and (vi)other risks detailed from time to
time in the Company's SEC reports. Additional factors that would cause actual
results to differ materially from those projected or suggested or suggested in
any forward-looking statements are contained in the Company's filings with the
Securities and Exchange Commission, including, but not limited to, those
factors discussed under the caption "Real Estate Risk" in the Company's Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q, which the Company urges
investors to consider. The Company undertakes no obligation to publicly
release the revisions to such forward-looking statements that may be made to
reflect events or circumstances after the date hereof or to reflect the
occurrences of unanticipated events, except as other wise required by
securities and other applicable laws. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
hereof. The Company undertakes no obligation to release publicly the results
on any events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
For further information, please contact:
Alan Joseph, CFO of Franklin Credit Management Corp. at
212-925-8745 (Ext. 169)
DATASOURCE: Franklin Credit Management Corp.
CONTACT: Alan Joseph, CFO of Franklin Credit Management Corp.,
+1-212-925-8745 ext. 169,
Web site: http://www.franklincredit.com/