Franklin Credit Cuts Borrowing Costs

Franklin Credit Management Corp., a New York-based finance company that specializes in acquiring, originating, servicing, and resolving residential mortgage loans, has announced modifications to its borrowing agreements, including the elimination of all success fee liabilities.The success fee liability of $6.7 million, which would have increased, has been eliminated in consideration for $4.5 million paid to its lead bank, the company reported. A corresponding debt discount of $2.9 million was reduced to approximately $725,000 and will be amortized to expense over the remaining terms of the applicable debt, Franklin said. The company also reported that the lead lending bank has agreed to reduce, from 250 basis points to 235 bps, the interest rate margin on new term debt incurred after Nov. 14 to fund the purchase of one- to four-family residential loans secured by second mortgages. The company can be found online at http://www.franklincredit.com.