Fitch Rates Accredited Mortgage Loan Asset-Backed Notes, 2004-3.

NEW YORK -- Accredited Mortgage Loan asset-backed notes, series 2004-3, are rated by Fitch as follows:

Group I

-- $212.0 million class 1A 'AAA';

-- $9.8 million class 1M1 'AA';

-- $8.0 million class 1M2 'A+';

-- $6.5 million class 1M3 'BBB+';

-- $2.5 million class 1M4 'BBB';

-- $1.8 million class 1B 'BBB-'.

Group II

-- $630.4 million class 2A 'AAA';

-- $23.0 million class 2A6 'AA+';

-- $21.1 million class 2M1 'AA+';

-- $12.3 million class 2M2 'AA';

-- $19.2 million class 2M3 'A+';

-- $10.0 million class 2M4 'A';

-- $7.7 million class 2M5 'A-';

-- $7.7 million class 2M6 'BBB+';

-- $7.7 million class 2M7 'BBB';

-- $15.3 million class 2B 'BBB-'.

The 'AAA' rating on the Group I class 1A notes reflects the 13.75% subordination provided by the 4.00% class 1M1, the 3.25% class 1M2, the 2.65% class 1M3, the 1.00% class 1M4, the 0.75% class 1B, monthly excess interest, and initial overcollateralization (OC) of 2.10%. The 'AAA' rating on the Group II class 2A notes reflects the 17.75% subordination provided by the 3.00% class 2A6, the 2.75% class 2M1, the 1.60% class 2M2, the 2.50% class 2M3, the 1.30% class 2M4, the 1.00% class 2M5, the 1.00% class 2M6, the 1.00% class 2M7, the 2.00% class 2B, monthly excess interest, and initial OC of 1.60%. In addition, the ratings also reflect the quality of the loans, the soundness of the legal and financial structures, and the capabilities of Accredited Home Lenders, Inc. as servicer and Countrywide Home Loans Servicing LP as backup servicer. Deutsche Bank National Trust Company will act as indenture trustee.

The collateral pool consists of fixed- and adjustable-rate collateral totaling $1.01 billion as of the cut-off date.

Group I consists of fixed-rate mortgage loans totaling $246 million as of the cut-off date. The weighted average OLTV is 74.42%, the average outstanding principal balance is $144,850, the weighted average coupon is 6.73%, and the weighted average remaining term is 343 months. 91.13% of the fixed loans have prepayment penalties. The loans are geographically concentrated in CA (31.52%), FL (11.17%), and TX (8.92%).

Group II consists of fixed- and adjustable-rate mortgage loans totaling $766 million as of the cut-off date. The weighted average OLTV is 78.330%, the average outstanding principal balance is $174,072, the weighted average coupon is 6.86%, and the weighted average remaining term is 356 months. 90.13% of the adjustable-rate loans have prepayment penalties. The loans are geographically concentrated in CA (35.53%), FL (7.99%), and NV (4.57%).