ABFS Prices $200MM Deal

American Business Financial Services Inc., Bala Cynwyd, Pa., has priced a $200 million securitization of business-purpose and consumer home equity loans through three subsidiaries.ABFS Mortgage Loan Trust 1998-3, a real estate mortgage investment conduit with four classes of certificates, was underwritten by Prudential Securities Inc. The ABFS subsidiaries involved in the transaction were American Business Credit Inc., Upland Mortgage, and New Jersey Mortgage and Investment Corp. The Class A-1 certificates were priced at 100, with a spread of 90 basis points over the 6% June 1999 Treasury note to yield 5.926%. Class A-2 was priced at 100, with a 100-bp spread over the 5 1/2% May 2000 Treasury to yield 5.83%. Class A-3 was priced at 100, with a 147-bp spread over the 5 3/4% August 2003 five-year Treasury note to yield 6.271%. Class A-4 was priced at 30 bp over the one-month London Interbank Offered Rate, with an average life of 3.19 years to the call. Financial Security Assurance Inc. will insure the deal, which is scheduled to settle Sept. 29.