Accounting Errors at Franklin Bank Corp. Draw SEC’s Attention

"...,the audit found that Fanklin did not properly account for certain single family mortgage loan modification programs developed and implemented as part of an effort to reduce delinquencies and mitigate foreclosure losses — a finding that, on the surface, looks similar to a January audit at Downey Financial (DSL: 8.61, -5.80%) that changed how the firm accounted for “troubled debt restructurings.” "