NEW YORK, Sept. 16 /PRNewswire/ -- Residential Credit Solutions, Inc. ("RCS") today announced that it was the successful bidder for a 50% equity interest in a structured sale of approximately $1.3 billion of residential mortgage loans, as Receiver for Franklin Bank offered by the Federal Deposit Insurance Corporation ("FDIC").

The transaction, one of the largest structured sales of residential mortgage loans conducted by the FDIC, is the pilot transaction involving a funding mechanism for the Legacy Loan Program (LLP). The LLP is part of the Public-Private Investment Program announced in March by the Secretary of the Treasury, the Federal Reserve, and the FDIC. In the pilot sale, RCS will purchase a managing membership interest in a limited liability corporation (LLC) that will hold the entire pool of mortgage loans. RCS and the FDIC will each own a 50% equity interest in the LLC while RCS will manage and service the loans on behalf of the LLC. As part of the LLP pilot program, the FDIC is providing a funding mechanism involving financing offered by the receivership to the LLC using an amortizing note guaranteed by the FDIC.

"We are pleased that RCS was the winning bidder and will be the FDIC's partner in this important sale. RCS will use its specialized asset management and servicing capabilities to enhance the value of the assets it will own in partnership with the receivership," said Dennis Stowe, President and Chief Executive Officer, "RCS will actively manage the mortgage assets, contacting at-risk borrowers proactively to understand their financial situation and to offer them viable solutions. We believe we can help more borrowers stay in their homes while enhancing the value of our significant joint investment with the receivership."

RCS is a residential mortgage asset servicing specialist. It was formed in 2006 by a team of seasoned industry executives and an experienced institutional investor group led by Equifin Capital Partners, Och-Ziff Capital Management Group and other institutional investors to focus exclusively on at-risk and servicing-intensive mortgages.

The company's special servicing platform is one of the most effective in the industry at establishing contact with at-risk borrowers, structuring loss mitigation solutions for them, and protecting the value of mortgage assets. RCS is a participant in the Home Affordable Modification Program (HAMP). RCS is an approved HUD and Fannie Mae Servicer and carries servicer ratings from Standard and Poor's and Fitch.

The FDIC transaction is expected to close on September 30, 2009.

About Residential Credit Solutions:

Residential Credit Solutions is an integrated residential mortgage investment and servicing company focused on credit-sensitive and servicing-intensive mortgage assets. The Company is headquartered in Fort Worth, TX and also has operations in Los Angeles, CA and New York, NY. For more information about RCS call (682) 647-2500 or visit www.residentialcredit.com.

About Equifin Capital:

Equifin Capital Partners is a New York-based investment firm exclusively focused on consumer and commercial finance, asset servicing, capital asset management and other related sectors of the financial services industry. Equifin combines financial services industry expertise with the operating backgrounds of its principals at leading global financial services firms and extensive capital markets relationships. For more information about Equifin, visit www.equifincapital.com.

About Och-Ziff Capital Management

Och-Ziff Capital Management Group LLC ("Och-Ziff"), is a leading global institutional alternative asset management firm listed on the New York Stock Exchange (NYSE: OZM). Och-Ziff is one of the largest alternative asset managers in the world, with $21.7 billion of assets under management as of September 1, 2009. In addition to its role as a lead investor in Residential Credit Solutions, Och-Ziff invests directly in residential and commercial mortgage backed securities as well other distressed structured products, with dedicated teams in both New York and London. For more information, please visit www.ozcap.com.

SOURCE Residential Credit Solutions, Inc.