Fitch Rates Accredited Home Lenders 'RPS3-' For Resi Subprime Product.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 13, 2003 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. assigns Individuals to whom property is, will, or may be transferred by conveyance, will, Descent and Distribution, or statute; assignees. The term assigns is often found in deeds; for example, "heirs, administrators, and assigns to denote the assignable nature of 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, Inc. (Accredited) an 'RPS3-' residential primary servicer rating for subprime product. This rating reflects Accredited's seasoned senior and servicing management teams, its capable loan administration and default management practices, and its effective training program. Accredited's parent, Accredited Home Lenders Holding Co., has been publicly traded on NASDQ (LEND) since February February: see month. 2003. Accredited is an independent originator Originator A bank, savings and loan, or mortgage banker that initially made a mortgage loan that is part of a pool. Also, an investment bank that has worked with the issuer of a new securities offering from the beginning and is usually appointed manager of the underwriting and servicer of subprime loan Subprime Loan A loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans. Notes: Subprime loans tend to have a rate that is 0.1% to 0.6% higher than the prime rate. product. Founded in 1990, Accredited reported record originations in 2002 of over $4 billion, ranked 14th in 2002 production per B&C Lending. As of June 2003, Accredited had over 1,600 employees in 40 leased locations nationwide. Accredited utilizes a nationwide network of over 4,500 brokers as loan sources for its 316 account executives and eight division offices. In addition, Accredited originates loans through a retail division with 240 loan officers working out of 24 branch locations. In the past 12 months Accredited has completed three securitizations: $207.4 million in 3rd-quarter 2002 (3Q'02); $541.8 million in 4Q'02; and $303 million in 2Q'03. As of June 30, 2003, Accredited serviced 22,131 mortgage loans totaling $2.8 billion. Accredited's servicing portfolio consists of all subprime product and no agency loans. Nearly 50% of the portfolio (by loan volume) is composed of private residential mortgage backed securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. loans and the remaining loans are owned or interim serviced. The total servicing portfolio has grown by 118% by loan volume from December 2001 to June 2003. Accredited has recently introduced enhancements to its quality control and internal audits programs, and has installed additional default technology in anticipation of portfolio growth. Fitch fitch: see polecat. will continue to monitor Accredited's progress in maintaining consistent performance while pursuing its growth initiatives and corporate business strategy. Fitch rates residential mortgage primary, master, and special servicers on a scale of 1 to 5, with 1 being the highest rating. Within some of these rating levels, Fitch further differentiates ratings by plus (+) and minus (-) as well as the flat rating. For more information on Fitch's residential servicer rating program, please see Fitch's report, 'Residential Mortgage Servicer Ratings', dated Feb. 21, 2003 or 'Rating Residential Loan Servicers', dated Aug. 3, 1999, both of which are available on the Fitch Ratings web site at 'www.fitchratings.com'. |
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