OFFERING ANNOUNCEMENT

Sealed Bid Auction of Mortgage Loan Servicing Related to Approximately $1 Billion of Mortgage Loans
 

The Federal Deposit Insurance Corporation (FDIC) in its capacity as Receiver for Franklin Bank, S.S.B., has retained Interactive Mortgage Advisors, LLC (IMA) as its financial advisor to assist it in marketing and sale of the Mortgage Servicing Rights (MSRs) related to approximately $1.0 billion of residential mortgage loans pursuant to which Franklin and its designees are currently providing mortgaging servicing.

The MSRs are related to Fannie Mae, Freddie Mac and private mortgage loans (Mortgage Loans) that were primarily originated in and after 2002, and the properties securing the Mortgage Loans are predominantly located in Texas, Montana and Illinois. The beneficial interests in such Mortgage Loans are held by Fannie Mae, Freddie Mac and private investors. The Mortgage loans are secured by residential properties, of which 84% are single family properties and the remaining 16% are a combination of condos, townhomes, PUDs, etc. Of the total portfolio 89% are owner-occupied, with the remaining 11% being investment properties or second homes. The current average principal loan amount in the portfolio is $128,008, with a weighted average note rate of 6.162%. The net service fee on the portfolio is 27.53 basis points, and the total delinquencies within the portfolio are 9.65%.

This Announcement is not an offer to sell or a solicitation of an offer to buy the Mortgage Loan Business, Mortgage Loans, or the associated MSRs. Further information concerning the sale will be furnished only to, and bids will be accepted only from, such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks and the resources to bear the risks, of a purchase of the MSRs and who meet the other criteria required to become a qualified bidder as described in the Key documents section below.

The purchase of the MSRs involves substantial risk and prospective bidders should, along with their advisors, undertake such investigation as they deem advisable to evaluate the risks associated with such purchase.

The definitive bidding structure will be announced in the Offering Memorandum to be distributed on or about July 17, 2009 to bidders that have been pre-qualified by the FDIC. The Bid Date is expected to be on or about August 14, 2009.

KEY DOCUMENTS
(PDF Help)

Interested prospective bidders should complete and return the forms requested in the Bidder Qualification Package section of the Announcement, along with the $5,000 fee for the temporary use of the hard drive to:

Federal Deposit Insurance Corporation
P.O. Box 971774
Dallas, TX 75397-1774

KEY DATES