Piper Jaffray analyst Robert Napoli has applauded the decision of Accredited Home Lenders, San Diego, to buck the growing trend of publicly traded subprime lenders converting to real estate investment trust status.Accredited announced the decision in a recent news release on its first-quarter earnings. "While the company found certain arguments for becoming a REIT to be compelling, it also found the structure would add significant administrative complexity," Accredited said. "The company received divergent advice concerning how a hybrid REIT should be structured and how it would be valued." Mr. Napoli commented that "[t]his is a different decision than most competitors who are choosing the REIT structure, and we like it. Accredited can still choose to become a REIT at a later date after it reviews the success of its peers. We recommend aggressive purchase of Accredited stock if it sells off because of this less 'popular' decision."

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