Accredited Closes $917.2 Million 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 $917.2 million 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 five classes of senior notes and six classes of subordinate notes being issued.

Co-lead managers for the transaction were Credit Suisse First Boston and Morgan Stanley, with Lehman Brothers, Goldman Sachs and Merrill Lynch acting as co-managers.

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

A-1A  AAA/Aaa/AAA     $300,820,000  2.82   1M LIBOR      .23%     100
A-1B  AAA/Aaa/AAA       75,200,000  2.82   1M LIBOR      .28%     100
A-2A  AAA/Aaa/AAA      152,760,000  1.00   1M LIBOR      .10%     100
A-2B  AAA/Aaa/AAA      147,400,000  3.00   1M LIBOR      .21%     100
A-2C  AAA/Aaa/AAA       77,320,000  7.12   1M LIBOR      .35%     100
M-1   AA/Aa2/AA         55,030,000  5.39   1M LIBOR      .47%     100
M-2   A+/A1/A (high)    30,730,000  5.38   1M LIBOR      .69%     100
M-3   A/A2/A            12,840,000  5.37   1M LIBOR      .72%     100
M-4   A-/A3/A (low)     12,380,000  5.37   1M LIBOR      .77%     100
M-5   BBB+/Not Rated/
       Not Rated        29,350,000  5.37   1M LIBOR     2.20%     100
M-6   BBB/Not Rated/
       Not Rated         9,630,000  5.21   1M LIBOR     2.50% 88.33522

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. 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, and their expected cost of capital and funding costs. 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 performance of the mortgage loans represented by the notes; and other risk factors outlined in Accredited Home Lenders Holding Co.'s filing 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 November 15, 2004, and other SEC filings.