Accredited Closes $1.012 Billion Asset-Backed Securitization Using Senior/Subordinated Structure.

SAN DIEGO -- Accredited Home Lenders Holding Co. (NASDAQ:LEND), a national non-prime mortgage lender based here, has closed a securitization of approximately $1.012 billion of first priority residential mortgage loans through its real estate investment trust (REIT) subsidiary, Accredited Mortgage Loan REIT Trust. The REIT subsidiary was established in May 2004 to reduce long-term funding costs, provide flexibility in structuring future securitizations and facilitate capital structure alternatives. This securitization utilized a senior/subordinated structure, with eleven classes of senior notes and fourteen classes of subordinate notes being issued.

Chairman and CEO Jim Konrath said: "This is the largest securitization that Accredited has ever done, containing over $1.0 billion of mortgage loans. It is also our first securitization using a senior/subordinated structure, allowing us to achieve lower funding costs by closing the transaction in the REIT."

The lead manager for the transaction was Lehman Brothers, with Morgan Stanley, Goldman Sachs & Co., Credit Suisse First Boston and Barclays Capital acting as co-managers.

Class  Rating      Note Balance WAL Benchmark Spread/ Coupon  Price
     (S&P/F/M)                                Margin
1A1   AAA/AAA/Aaa  $69,191,000 1.00  2.277%   0.45%   2.90%  99.991775
1A2   AAA/AAA/Aaa   18,358,000 2.00  2.784%   0.57%   3.44%  99.981621
1A3   AAA/AAA/Aaa   48,158,000 3.00  3.215%   0.65%   3.92%  99.980935
1A4   AAA/AAA/Aaa   24,083,000 5.00  3.821%   1.10%   4.94%  99.974521
1A5   AAA/AAA/Aaa   31,020,000 7.83  4.371%   1.19%   5.25%  98.079602
1A6   AAA/AAA/Aaa   21,201,000 6.52  4.146%   0.60%   4.75%  99.962976
1M1   AA+/AA/Aa2     9,832,000 6.16  4.078%   1.35%   5.25%  99.041114
1M2   A+/A+/A2       7,989,000 6.16  4.078%   1.70%   5.25%  97.295711
1M3   BBB+/BBB+/Baa2 6,514,000 6.16  4.078%   2.00%   5.25%  95.830856
1M4   BBB/BBB/Baa3   2,458,000 6.16  4.078%   3.70%   5.25%  88.043481
1B    BBB/BBB-/ -    1,844,000 6.16     N/A     N/A   5.25%        N/A
2A1   AAA/AAA/Aaa $310,058,000 2.14 1M LIBOR  0.30%                100
2A2   AAA/AAA/Aaa   42,914,000 7.31 1M LIBOR  0.60%                100
2A3   AAA/AAA/Aaa  120,165,000 1.00 1M LIBOR  0.17%                100
2A4   AAA/AAA/Aaa  108,390,000 3.00 1M LIBOR  0.35%                100
2A5   AAA/AAA/Aaa   48,867,000 6.87 1M LIBOR  0.54%                100
2A6   AAA/AA+/Aa1   22,993,000 5.16 1M LIBOR  0.58%                100
2M1   AA+/AA+/Aa2   21,077,000 5.15 1M LIBOR  0.60%                100
2M2   AA/AA/Aa3     12,263,000 5.14 1M LIBOR  0.65%                100
2M3   A+/A+/A2      19,161,000 5.14 1M LIBOR  1.12%                100
2M4   A/A/A3         9,964,000 5.13 1M LIBOR  1.35%                100
2M5   A-/A-/Baa1     7,664,000 5.12 1M LIBOR  1.80%                100
2M6   BBB+/BBB+/Baa2 7,664,000 5.12 1M LIBOR  1.90%                100
2M7   BBB/BBB/Baa3   7,665,000 5.12 1M LIBOR  3.50%    2.50% 95.501136
2B    BBB/BBB-/ -   15,328,000 5.06 1M LIBOR    N/A    2.50%       N/A

The securitization was structured as a financing by Accredited with the result being that both the mortgage loans and the debt represented by the notes remain on Accredited's balance sheet. As payments are made on the underlying mortgage loans over time, Accredited is entitled to amounts remaining after principal and interest payments to note holders, and after the satisfaction of certain credit enhancement requirements. Accredited used the proceeds from the securitization primarily to repay warehouse financing for the mortgage loans.

Copies of the prospectus and supplement relating to the notes may be obtained from Accredited's Investor Relations Department, 15090 Avenue of Science, San Diego, CA 92128.

About Accredited Home Lenders

Accredited Home Lenders Holding Co. is a nationwide mortgage banking company that originates, finances, securitizes, sells, and services non-prime mortgage loans secured by residential real estate. The company is headquartered in San Diego. Additional information may be found at www.accredhome.com.

About Accredited Mortgage Loan REIT Trust

Accredited Mortgage Loan REIT Trust is a Maryland real estate investment trust that was formed in May 2004, and was created for the purpose of acquiring, holding and managing real estate assets that will generate net income for distribution to its shareholders.

Forward Looking Statements

Certain of the information discussed herein constitutes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements regarding the financing plans of Accredited Home Lenders Holding Co. and Accredited Mortgage Loan REIT Trust, their prospects and future results, planned revenue generating strategy, expected net earnings, origination volume, whole loan premiums, and hedging strategy and results. Such statements are based on current expectations, and the actual results and the timing of certain events could differ materially from those projected in or contemplated by these forward-looking statements due to a number of factors, including but not limited to financial market conditions, interest rate volatility and the level of interest rates generally; general political and economic conditions; the sustainability of loan origination volumes; the availability of financing for the origination of mortgage loans; the ability to sell or securitize mortgage loans; and other risk factors outlined in Accredited Home Lenders Holding Co.'s filings with the Securities and Exchange Commission ("SEC"), including those listed in Accredited's registration statement on Form S-3 filed with the SEC on July 19, 2004, the related prospectus supplement and accompanying prospectus for the offering of the Accredited Mortgage Loan REIT Trust Series A Perpetual Cumulative Preferred Shares and Accredited's report on Form 10-K filed with the SEC on March 26, 2004, its report on Form 10-Q filed with the SEC on August 16, 2004, and other SEC filings.