Residential Mortgage Credit Report

Franklin Credit Announces Debt Modifications

NEW YORK, Aug. 9 /PRNewswire-FirstCall/ -- Franklin Credit Management Corporation (NASDAQ Global Market: FCMC), a specialty consumer finance company primarily engaged in the acquisition, origination, servicing and resolution of performing, reperforming and nonperforming residential mortgage loans, today announced several modifications to its borrowing agreements.

"We are particularly pleased to announce that, unlike our existing term debt, new borrowings under our term loan agreement after June 25, 2006 will not be subject to a 50 basis point success fee upon payoff," stated Paul Colasono, Chief Financial Officer of Franklin Credit Management Corporation. "Also, the 75 basis point origination fee has been reduced to 50 basis points on all new term debt incurred to fund acquisitions of loan pools after June 25, 2006."

In addition, the Company reported that its lead lending bank has agreed to reduce the interest rate margin on approximately $475 million of existing term debt, initially by at least 25 basis points no later than October 1, 2006, and by an additional 25 basis points no later than January 1, 2007.

Morgan Stanley to Acquire Residential Mortgage Servicer and ...

NEW YORK--(BUSINESS WIRE)--Aug. 9, 2006--Morgan Stanley (NYSE: MS) announced today that it has reached a definitive agreement to acquire Saxon Capital, Inc. (NYSE: SAX), a premier servicer and originator of residential mortgages, for $706 million, or $14.10 per share in cash for Saxon stock. Pending customary regulatory and shareholder approvals, the acquisition is expected to be completed by the end of 2006.

The transaction supports Morgan Stanley's strategy of building a global, vertically integrated residential mortgage business. Saxon adds a premier servicing operation with a scalable U.S. origination platform to Morgan Stanley's substantial existing residential mortgage franchise.

"The acquisition of Saxon is another important step in our long-term strategy of broadening the Firm's global franchise in the critical residential mortgage business, which represents the single largest segment of the global debt market," said Anthony Tufariello, Global Head of the Securitized Products Group.

E-ECONOMIC NEWSLETTER

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