Accredited Home Lenders closed its recently created $1 billion Carmel Mountain Funding Trust extendable asset-backed commercial paper conduit last week and plans to quickly tap its full capacity, said Charlie Ryan, securitization coordinator at Accredited.
The facility cuts out some of the fees charged by warehouse lenders, making it a cheaper funding source, Ryan said. The line will also give the company diversified funding lines - up until this month, the lender obtained all of its funding through eight warehouse lines. Ryan said, however, the company does not have plans to decrease reliance on those lines. The ABCP conduit brings Accredited's total borrowing capacity to $5 billion. "We intend to utilize it to the extent that we can," Ryan said. "We'd like to get up to the billion dollars within the next two months."