American Business Financial Services Closes 11th Consecutive Quarterly Securitization; Announces Improved Overcollateralization Requirements.

Business Editors

BALA CYNWYD, Pa.--(BUSINESS WIRE)--Sept. 29, 2000

American Business Financial Services, Inc. (Nasdaq: ABFI), a diversified financial services company operating nationwide, today announced that it has closed a $150 million mortgage loan securitization through its three subsidiaries, American Business Credit, Inc., Upland Mortgage and New Jersey Mortgage and Investment Corp. The Company's 11th consecutive quarterly securitization represents approximately one-half of the loans originated during the Company's first fiscal quarter 2001.

In addition, ABFI believes that this securitization was more economically beneficial to the Company than the prior quarter's securitization, based on improved credit enhancement levels (overcollateralization) on this pool of loans. This improvement represents an estimated 20% reduction in required overcollateralization from the prior quarter's securitization.

ABFS Mortgage Loan Trust 2000-3 consists of fixed rate mortgage loans. Prudential Securities, as sole manager, sold the notes representing debt of the Trust. The trust was insured by an Ambac Assurance Corporation insurance policy. Because of this credit enhancement, the notes received an AAA rating from Standard & Poor's, and an Aaa rating from Moody's. The Class A-1 fixed rate notes carry a coupon interest rate of 7.61%.

The remainder of the originated loans this quarter are expected to be securitized through the use of off-balance sheet facilities. These facilities were obtained earlier this year from UBS Principal Finance, LLC, and Prudential Securities Corp., LLC.

For further information, contact Jeffrey M. Ruben, Executive Vice President, 610-617-5562, Keith Bratz, VP--Corporate Communications, 610-617-7475, or David R. Evanson, Gregory FCA Communications, 610-642-8253.

Certain statements contained in this press release, which are not historical fact, may be deemed to be forward-looking statements under federal securities laws. There are many important factors that could cause American Business Financial Services, Inc. and its subsidiaries' actual results to differ materially from those indicated in the forward-looking statements. Such factors include, but are not limited to, general economic conditions, including interest rate risk, future residential real estate values, regulatory changes (legislative or otherwise) affecting the real estate market and mortgage lending activities, competition, demand for American Business Financial Services, Inc. and its subsidiaries' services, availability of funding, loan payment rates, delinquency and default rates, changes in factors influencing the loan securitization market and other risks identified in American Business Financial Services, Inc.'s Securities and Exchange Commission filings.