Franklin Credit Management Corporation Successfully Completes SAS 70 Type II Audit of Servicing and Collection Operations
09 Februar 2010 - 10:37PM
PR Newswire (US)
NEW YORK, Feb. 9 /PRNewswire-FirstCall/ -- Franklin Credit
Management Corporation ("FCMC"), the mortgage servicing subsidiary
of Franklin Credit Holding Corporation (OTC:FCMC) (BULLETIN BOARD:
FCMC) and a specialty consumer finance company primarily engaged in
the servicing and resolution of performing, reperforming and
nonperforming residential mortgage loans, including specialized
loan recovery servicing; and in the analysis, pricing, due
diligence and acquisition of residential mortgage portfolios for
third parties, today announced the successful completion of its SAS
70 Type II audit for its loan servicing and collection processes.
SAS 70 is a widely recognized auditing standard developed by the
American Institute of Certified Public Accountants (AICPA) for
auditing and reporting on the effectiveness of operations,
processes and controls of third-party service providers. FCMC's SAS
70 Type II audit was conducted by Marcum LLP, a leading independent
auditing and accounting firm. The audit, which assessed the
suitability of the design and operational effectiveness of the
Company's controls for the stated period, focused on FCMC's
servicing and collection processes and included Franklin's control
environment, risk assessment, monitoring, control activities and
information and communication controls. The resulting Independent
Service Auditor's Report concluded that FCMC's tested controls, as
described in the report, were operating with sufficient
effectiveness to provide "reasonable assurance" that such controls
were in place and achieved for the period tested. "The successful
completion of the SAS 70 Type II audit provides validation to our
current and potential loan servicing and asset recovery clients
that Franklin is committed to delivering the highest quality of
performance in the mortgage servicing and collection industry,"
stated Thomas Axon, Chairman and President of Franklin Credit
Holding Corporation and Franklin Credit Management Corporation.
About Franklin Credit Holding Corporation Franklin Credit Holding
Corporation (together with its subsidiaries, the "Company") is a
specialty consumer finance company primarily engaged in the
servicing and resolution of performing, reperforming and
nonperforming residential mortgage loans, including specialized
loan recovery servicing, and in the analysis, pricing, due
diligence and acquisition of residential mortgage portfolios for
third parties. The portfolios serviced for other entities, as well
as the Company's remaining portfolio, consist of both first- and
second-lien loans secured by 1-4 family residential real estate
that generally fall outside the underwriting standards of Fannie
Mae and Freddie Mac and involve elevated credit risks as a result
of the nature or absence of income documentation, limited credit
histories, higher levels of consumer debt or past credit
difficulties. The Company's executive, administrative and
operations offices are located in Jersey City, New Jersey.
Additional information on the Company is available on the Internet
at http://www.franklincredit.com/. Statements contained herein that
are not historical fact may be forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, that are subject to a variety of risks and uncertainties.
There are a number of important factors that could cause actual
results to differ materially from those projected or suggested in
forward-looking statements made by the Company. These factors
include, but are not limited to: (i) unanticipated changes in the
U.S. economy, including changes in business conditions such as
interest rates, changes in the level of growth in the finance and
housing markets, such as slower or negative home price
appreciation; (ii) the Company's relations with its lenders and
such lenders' willingness to waive any defaults under the Company's
agreements with such lenders; (iii) increases in the delinquency
rates of the Company's borrowers; (iv) the availability of third
parties holding sub-prime mortgage debt for servicing by the
Company on a fee-paying basis; (v) changes in the statutes or
regulations applicable to the Company's business or in the
interpretation and enforcement thereof by the relevant authorities;
(vi) the status of the Company's regulatory compliance; (vii) the
Company's ability to meet collection targets under the Legacy
Credit Agreement with its lead lending bank in order to reduce the
pledge of equity interest in Franklin Credit Management Corporation
to its lead lending bank from 70% to a minimum of 20%; and (viii)
other risks detailed from time to time in the Company's SEC reports
and filings. Additional factors that would cause actual results to
differ materially from those projected or suggested in any
forward-looking statements are contained in the Company's filings
with the Securities and Exchange Commission, including, but not
limited to, those factors discussed under the captions "Risk
Factors", "Interest Rate Risk" and "Real Estate Risk" in the
Company's Annual Report on Form 10-K for the year ended December
31, 2008, filed with SEC on April 10, 2009, and Quarterly Reports
on Form 10-Q, which the Company urges investors to consider. The
Company undertakes no obligation to publicly release any revisions
to such forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to reflect the
occurrences of unanticipated events, except as otherwise required
by securities, and other applicable laws. Readers are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The Company undertakes no
obligation to release publicly the results on any events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. Contact: Paul Colasono, CFO Franklin Credit
Management Corporation (201) 604-4402 DATASOURCE: Franklin Credit
Management Corporation CONTACT: Paul Colasono, CFO of Franklin
Credit Management Corporation, +1-201-604-4402, Web Site:
http://www.franklincredit.com/
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