Franklin Suspends Originations

Franklin Credit Management Corp., a New York-based finance company that acquires, originates, services, and resolves residential mortgage loans, has announced the suspension of loan acquisition and origination and a delay in reporting its third-quarter operating results.Citing the deteriorating real estate and mortgage credit market, Franklin said it is assessing the reserves for its portfolio of acquired loans, especially second-lien loans acquired during 2005 and 2006. "The company expects that this review will result in a substantial increase in the provision for loan losses for the quarter ended Sept. 30, 2007, due to increased delinquencies and the expectation of increased defaults and ultimate losses inherent in the portfolio as of Sept. 30, 2007, particularly for its portfolio of second-lien loans," Franklin said. The company can be found online at http://www.franklincredit.com.