Accredited Forms $1B Asset-Backed CP Conduit

Accredited Home Lenders Holding Co., a national nonprime mortgage lender based in San Diego, has announced the establishment of a $1.0 billion extendible note asset-backed commercial paper conduit through its subsidiary, Carmel Mountain Funding Trust.The trust will finance mortgage loans through the issuance of extendible ABCP rated A-1+/P-1 and subordinated debt rated BBB/Baa2 by Standard & Poor's and Moody's Investors Service, respectively. Mortgage loans financed by Carmel Mountain Funding -- a special purpose, bankruptcy-remote trust formed by Accredited Home Lenders Inc., a wholly owned subsidiary of the holding company -- will occasionally be directed into securitizations or whole-loan sales and may be replaced with new mortgage loans, the company said. Jim Konrath, Accredited's chairman and chief executive officer, said the conduit represents "a big step forward" for the company. "Directly accessing the commercial paper markets increases our warehouse capacity, provides a lower funding cost for loans we originate, and enhances our ongoing strategy of diversification throughout the company," Mr. Konrath said. The company can be found online at http://www.accredhome.com.