Franklin Credit Management Corp., New York, has announced that it will restate its earnings for 2003, 2004, and three quarters of 2005 to expense certain fees and costs related to the acquisition of residential mortgage loans.Franklin said it had been deferring and amortizing the fees and costs over the estimated life of the acquired assets based on an accounting interpretation reached in consultation with Deloitte & Touche LLP. But the company said it has now changed its interpretation based on further consultations with the accounting firm regarding Statement of Financial Accounting Standards No. 91 on nonrefundable fees and costs. Franklin said its restatements (for the full years 2003 and 2004, all quarterly periods in 2004, and three quarterly periods in 2005) will also include certain other adjustments. The aggregate effect of the adjustments is estimated to result in reductions to after-tax income of $771,000 ($0.11 per share) in 2004 and $439,000 ($0.07 per share) in 2003, the company said. In other news, Franklin said its wholly owned mortgage origination subsidiary, Tribeca Lending Corp., entered into a new $100 million master credit and security agreement with BOS (USA) Inc., an affiliate of the Bank of Scotland. Franklin can be found online at http://www.franklincredit.com.

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