Accredited Closes $1.1 Billion Asset-Backed Securitization.

SAN DIEGO -- Accredited Home Lenders Holding Co. (NASDAQ:LEND), a national non-prime mortgage lender based here, has closed a securitization containing approximately $1.120 billion of first- and second-lien 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 securitizations, and facilitate capital structure alternatives. The securitization utilized a senior/subordinated structure, with five classes of senior notes and nine classes of subordinate notes being issued.

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

(S&P/M/DBRS)
Class    Rating             Note Balance  WAL  Benchmark  Spread Price
A-1    AAA/Aaa/AAA          $356,840,000  2.42  1M LIBOR   .24%   100
A-2A   AAA/Aaa/AAA           257,110,000  1.00  1M LIBOR   .10%   100
A-2B   AAA/Aaa/AAA            91,720,000  2.00  1M LIBOR   .16%   100
A-2C   AAA/Aaa/AAA           156,650,000  3.50  1M LIBOR   .25%   100
A-2D   AAA/Aaa/AAA            61,154,000  6.71  1M LIBOR   .37%   100
M-1    AA+/Aa1/AA (High)      37,521,000  4.81  1M LIBOR   .45%   100
M-2    AA+/Aa2/AA (High)      34,721,000  4.76  1M LIBOR   .47%   100
M-3    AA/Aa3/AA              23,521,000  4.73  1M LIBOR   .48%   100
M-4    AA-/A1/AA (Low)        17,921,000  4.71  1M LIBOR   .58%   100
M-5    A+/A2/A (High)         17,921,000  4.70  1M LIBOR   .63%   100
M-6    A/A3/A                 15,121,000  4.68  1M LIBOR   .70%   100
M-7    A-/Baa1/A (Low)        15,681,000  4.68  1M LIBOR  1.12%   100
M-8    BBB+/Baa2/BBB (High)   12,320,000  4.67  1M LIBOR  1.30%   100
M-9    BBB/Baa3/BBB           12,880,000  4.66  1M LIBOR  1.70%   100

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.

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, services and sells non-prime mortgage loans secured by residential real estate. Founded in 1990, 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.