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Franklin Bank Defends Quality Of its Mortgage Balance Sheet

Franklin Bank Corp., the parent company of Franklin Bank SSB, reported net income of $6.2 million for the first quarter 2007.

In its business update, Franklin said the company's single-family portfolio has an overall average FICO score of 711 and an average loan-to-value of 72%.

"As a result of an extensive analysis of our single-family portfolio, we believe that our delinquent loans are not the result of systemic credit issues. The majority of our delinquencies are the result of normal life event circumstances," said Dan Cooper, EVP and managing director of mortgage banking.

As a result of the current housing market conditions, some of Franklin's builder customers have slowed or moderated construction compared to last quarter and last year.

"Most of our customers have been customers for many years. These customers are experienced builders/developers and have managed through homebuilding cycles," said Mike Davitt, EVP and managing director of commercial lending.

"The expected growth from the regional builder business is largely attributed to the stabilization of the three new regional commercial lending offices that opened during 2006. In addition, Franklin's management team monitors third-party market reports and market analysis for each regional market." (c) 2007 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com

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