Accredited Closes $1.047 Billion Asset-Backed Securitization in Senior/Subordinated Transaction.

SAN DIEGO -- Accredited Home Lenders Holding Co. (NASDAQ:LEND), a national non-prime mortgage lender based here, has closed a securitization of approximately $1.047 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. The securitization utilized a senior/subordinated structure, with six classes of senior notes and six classes of subordinate notes being issued.

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

(S&P/M/DBRS)
Class    Rating    Note Balance  WAL  Benchmark  Spread  Rate  Price

A-1A  AAA/Aaa/AAA  $309,736,000  2.82  1M LIBOR    .34%         100
A-1B  AAA/Aaa/AAA    77,435,000  2.82  1M LIBOR    .39%         100
A-2A  AAA/Aaa/AAA    62,279,000  1.00  1M LIBOR    .15%         100
A-2B  AAA/Aaa/AAA    60,417,000  3.00  1M LIBOR    .32%         100
A-2C  AAA/Aaa/AAA    30,406,000  7.08  1M LIBOR    .50%         100
A-2D  AAA/Aaa/AAA   322,076,000  3.00  1M LIBOR    .35%         100
M-1   AA/Aa2/AA      64,925,000  5.35  1M LIBOR    .58%         100
M-2   A+/A2/A (high) 50,788,000  5.34  1M LIBOR   1.05%         100
M-3   A/A3/A         13,613,000  5.34  1M LIBOR   1.25%         100
M-4   A-/Baa1/A
      (low)          10,996,000  5.34  1M LIBOR   1.70%         100
M-5   BBB+/Baa2/
      BBB (high)     10,471,000  5.34  1M LIBOR   1.80%         100
M-6   BBB/Baa3/BBB
      (low)          12,043,000  5.32    Swaps    3.75% 5.25% 89.26566

The securitization is 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 received on the underlying mortgage loans over time, Accredited is entitled to all amounts remaining after the payment of principal and interest on the notes, expenses of the securitization 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 nonprime mortgage loans secured by single-family residences. The company is headquartered in San Diego, CA. 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 matters discussed in this news release constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements regarding the company's planned capital raising and revenue generating strategies, corporate restructurings, projected growth, anticipated securitizations, expected net earnings for 2005 and beyond; the company's liquidity; the company's outlook on the competitive and regulatory environments and the company's intended loan disposition strategy. 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: 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 of the company to sell or securitize mortgage loans; the company's ability to access the capital markets and successfully complete a financing; and other risk factors outlined in Accredited Home Lenders Holding Co.'s annual report on Form 10-K filed with the SEC on March 26, 2004, its reports on Form 10-Q filed with the SEC on May 17, 2004, August 16, 2004, and November 15, 2004 and other SEC filings.