Accredited Closes $515MM Asset-Backed Securitization.Business Editors SAN DIEGO--(BUSINESS WIRE)--Nov. 25, 2003 Accredited accredited recognition by an appropriate authority that the performance of a particular institution has satisfied a prestated set of criteria. accredited herds cattle herds which have achieved a low level of reactors to, e.g. Home Lenders Holding Co. (Nasdaq: LEND), a national non-prime mortgage lender based here, has closed a securitization of approximately $515.5 million of first priority residential mortgage loans through its operating subsidiary, Accredited Home Lenders, Inc. The lead manager for the transaction was Lehman Brothers, with Goldman Sachs as co-manager. Three classes of notes were issued in the securitization, each backed primarily by a pledge of one of three groupings of the mortgage loans. The mortgage loans backing the Class A-2 Notes conform to principal balance maximums and other investment requirements of Fannie Mae Fannie Mae: see Federal National Mortgage Association. and the Federal Home Loan Mortgage Corporation Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, privately owned, government-sponsored organization that uses private capital to buy home mortgages as a means to help lower housing costs. . The notes are guaranteed as to the timely payment of interest and as to specified payments of principal pursuant to the terms of a note insurance policy issued by Ambac Assurance Corporation Ambac Assurance Corporation A subsidiary of publicly traded Ambac Financial Group that provides financial guarantees for municipal borrowers and for asset-backed and structured issues. . Each class of the notes is rated "AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. " by Standard & Poor's Ratings Services and "Aaa" by Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. , Inc.
Original Note Price Final Stated
Principal Interest to the Maturity
Class Balance Rate Public Date
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A-1 $194,704,000 4.46% 99.999763% January 25, 2034
A-2 $210,312,000 1 Month LIBOR 100% January 25, 2034
+ 0.38%
A-3 $110,534,000 1 Month LIBOR 100% January 25, 2034
+ 0.38%
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Total $515,550,000
The securitization is structured as a financing for accounting purposes with the result 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 and recognizes as income amounts remaining after payment of the notes and the expenses of the securitization, and after the satisfaction of certain credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing 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 Investor relations The process by which the corporation communicates with its investors. 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, sells, securitizes and services nonprime mortgage loans secured by single-family residences. The company is headquartered in San Diego. Additional information may be found at www.accredhome.com. |
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