Shopping for scratched and dented products is an activity not usually associated with the mortgage industry. But Franklin Credit Management Corp. said it picked up some less-than-perfect loans -- and at a pretty good discount.
The New York specialty financial services company announced it acquired $310 million in first and second mortgages from Bank One, N.A.
The pool of residential loans, which includes performing, subperforming, and nonperforming mortgages, was purchased for $275.1 million, Franklin said.
"On a pro forma basis, the purchase expands our Net Notes Receivable portfolio by more than 42%, to approximately $654 million as of March 31, 2004," said Thomas J. Axon, chairman, in the announcement.
Revenues would have been around $83.4 million and net income after taxes would have been $10.6 million on a pro forma basis for 2003, the publicly traded company said, compared to actual revenues of $57.6 million and actual net income after taxes of $6.7 million.