On May 28, 2008, Franklin Credit Management Corporation entered into various agreements to service approximately $245 million in residential home equity line of credit mortgage loans for Bosco Credit LLC, which is owned and controlled by Thomas J. Axon, Chairman of Franklin Credit. The loans that are subject to the loan servicing agreement were acquired by Bosco on May 28, 2008.

"This represents a major step forward for our Company in the execution of its business strategy targeting the provision of services for third parties on a fee-paying basis," observed Gordon Jardin, Chief Executive Officer of Franklin Credit Management Corporation. "We view this as a substantial servicing contract that will provide a source of diversified revenues for Franklin Credit as we build on our servicing and portfolio acquisition experience with residential mortgage loans." -- Franklin Credit Management Corporation