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To: Haim R. Branisteanu who wrote (64597)	3/16/2007 8:22:15 AM
From: Travis_Bickle	Read Replies (2) \| Respond to of 116555

If LEND's warehouse lenders insist that it liquidate loans at a substantial loss, you have to wonder if they will provide funds to issue loans going forward at a price that will allow LEND to come close to break-even. I.e., are they still in the business of subprime lending? NEWC is not, FMT is not. Maybe LEND is not. Though the market loves the news.

To: Haim R. Branisteanu who wrote (64597)	3/16/2007 12:55:56 PM
From: Elroy Jetson	Respond to of 116555

Accredited Home Lenders (LEND) can likely continue in business, but obviously, LEND is out of the sub-prime business, as is anyone who needs to sell their loans to the secondary market. If anyone makes a sub-prime loan today they can turn around and sell it to in the secondary market at a loss of 30% or so. The only people who can make sub-prime loans are those who continue to hold their own loans. Obviously LEND will not be one of those companies as its lenders wanted them to sell their own sub-prime portfolio, even though it was at a loss. .