kl11035.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
12b-25
NOTIFICATION
OF LATE FILING
(Check
One): [_]
Form 10-K [_] Form
11-K [_] Form
20-F [X] Form
10-Q [_]
Form
10D
[_]
Form
N-SAR
[_] Form N-CSR
For
Period Ended: September 30, 2007
[_] Transition
Report on Form 10-K
[_] Transition
Report on Form 20-F
[_] Transition
Report on Form 11-K
[_] Transition
Report on Form 10-Q
[_] Transition
Report on Form N-SAR
For
the
Transition Period Ended: _________________________
Read
attached instruction sheet before preparing form. Please print or
type.
Nothing
in this form shall be construed to imply that the Commission has verified any
information contained herein.
If
the
notification relates to a portion of the filing checked above, identify the
item(s) to which the notification relates:
PART
I
REGISTRANT
INFORMATION
Franklin
Credit Management
Corporation
Full
Name
of Registrant
____________________________________________________________________________________________________________________
Former
Name if Applicable
101
Hudson
Street
Address
of Principal Executive Office (Street and Number)
Jersey
City, New Jersey
07302
City,
State and Zip Code
PART
II
RULE
12b-25(b) AND (c)
If
the
subject report could not be filed without unreasonable effort or expense and
the
registrant seeks relief pursuant to Rule 12b-25(b), the following should be
completed. (Check box if appropriate.)
|
|
[X]
|
(a)
|
The
reasons described in reasonable detail in Part III of this form could
not
be eliminated without unreasonable effort or
expense;
|
|
|
[ ]
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(b)
|
The
subject annual report, semi-annual report, transition report on Form
10-K,
Form 20-F, Form 11-K, Form N-SAR or Form N-CSR, or portion thereof,
will
be filed on or before the fifteenth calendar day following the prescribed
due date; or the subject quarterly report or transition report on
Form
10-Q or subject distribution report on Form 10D, or portion thereof,
will
be filed on or before the fifth calendar day following the prescribed
due
date; and
|
|
|
[ ]
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(c)
|
The
accountant’s statement or other exhibit required by Rule 12b-25(c) has
been attached if applicable.
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PART
III
NARRATIVE
State
below in reasonable detail why the Form 10-K, 20-F, 11-K, 10-Q, 10D, N-SAR,
N-CSR or the transition report or portion thereof, could not be filed within
the
prescribed time period.
Due
to
the rapidly deteriorating real estate and mortgage origination credit market
and
resulting increased delinquencies industry wide in mortgages originated in
the
years 2005 and 2006, particularly for second-lien loans, the Registrant is
in
the process of reviewing and assessing its reserves for its portfolio of
acquired loans, particularly second-lien mortgage loans acquired in those
years. As a result, certain financial presentation matters could not
be finalized within the prescribed time without unreasonable expense and
effort. The Registrant currently anticipates that it will complete
its review, release its quarterly results and file its Form 10-Q for the third
quarter of 2007 prior to December 31, 2007.
PART
IV
OTHER
INFORMATION
|
(1)
|
Name
and telephone number of person to contact in regard to this
notification
|
Paul
D.
Colasono 201
604-4402
(Name) (Area
Code) (Telephone
Number)
|
(2)
|
Have
all other periodic reports required under Section 13 or 15(d) of
the
Securities Exchange Act of 1934 or Section 30 of the Investment Company
Act of 1940 during the preceding 12 months or for such shorter period
that
the registrant was required to file such report(s) been
filed? If the answer is no, identify
report(s).
|
[X]
Yes [ ] No
|
(3)
|
Is
it anticipated that any significant change in results of operations
from
the corresponding period for the last fiscal year will be reflected
by the
earnings statements to be included in the subject report or portion
thereof?
|
[X]
Yes [ ] No
If
so:
attach an explanation of the anticipated change, both narratively and
quantitatively, and, if appropriate, state the reasons why a reasonable estimate
of the results cannot be made.
Due
to
the rapidly deteriorating real estate and mortgage origination credit market
and
resulting increased delinquencies industry wide in mortgages originated in
the
years 2005 and 2006, particularly for second-lien loans, the Registrant is
in
the process of reviewing and assessing its reserves for its portfolio of
acquired loans, particularly second-lien mortgage loans acquired in those
years. Due to the fact that this review is ongoing, a reasonable
estimate of the results cannot be made. Generally, the Registrant
expects that this credit review will result in a substantial increase in the
provision for loan losses for the quarter ended September 30, 2007 due to
increased delinquencies and the expectation of increased defaults and ultimate
losses inherent in the portfolio as of September 30, 2007, again particularly
for its portfolio of second-lien loans. The Registrant expects that
this increase will result in substantial negative stockholder’s equity as of
September 30, 2007. The Registrant currently anticipates that it will
complete its review, release its quarterly results and file its Form 10-Q for
the third quarter prior to December 31, 2007.
Franklin Credit Management
Corporation
(Name
of
Registrant as Specified in Charter)
Has
caused this notification to be signed on its behalf by the undersigned thereunto
duly authorized.
Date:
November 15,
2007 By:
/s/
Paul D.
Colasono
Name:
Paul D.
Colasono
Title: Chief Financial Officer and Executive Vice
President