Accredited Comments on Moody's Servicer Rating Review.Company Affirms Continued Investment in Servicing Platform in Response to Possible Moody's Action SAN DIEGO San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. -- 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 NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : LEND) issued a statement in response to a decision by Moody's to review the company's servicer quality rating. James A. Konrath, Accredited's chairman and chief executive officer, said, "Although we are disappointed with the announcement by Moody's, we note that any possible downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. will be primarily the result of the challenges facing the non-prime mortgage industry. As we have stated previously, Accredited has moved aggressively to address the current market conditions, including tightening our underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. guidelines and disciplines, increasing reserves, and bolstering our liquidity. Should the downgrade occur, we believe it will have no substantial impact on our business." Mr. Konrath added, "We also note that Accredited's portfolio performance continues to outperform the industry averages as measured by the 'subprime subindex' that is published by Moody's Investor Services. This consistently better performance is attributable in part to our servicing platform and employees, which we will continue to support in order to produce the best possible portfolio performance." About Accredited Accredited Home Lenders Holding Co. is a mortgage company operating throughout the U.S. and in Canada. Accredited 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 http://investors.accredhome.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 impact of a downgrade of Accredited's servicer quality rating on the company's business, the performance of the company's mortgage loan portfolio and the reasons for that performance. 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: the company's ability to obtain financing; the perception of the company in the investment community; interest rate volatility and the level of interest rates generally; fluctuations in the real estate markets generally; the nature and characteristics of the loans originated by the company; general political and economic conditions; the ability of the company to manage costs; and other risk factors as outlined in Accredited Home Lenders Holding Co.'s annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the period ended December 31, 2005, its reports on Form 10-Q Form 10-Q See 10-Q. for the first, second and third quarters of 2006, and other documents filed with the SEC. |
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