ABFI Closes $376M Mortgage Securitization

PHILADELPHIA-Bala Cynwyd, PA-based American Business Financial Services, Inc. has closed a $376.2-million public senior and subordinated mortgage loan securitization through lead manager Credit Suisse First Boston. Bear Stearns & Co. was co-manager of the deal.

It is ABFI’s third consecutive public senior and subordinated securitization. The securities offered are not guaranteed by any certificate insurance policies. Credit enhancement is provided through the structure of the securitization.

Standard & Poor’s and Moody’s rate approximately 87% of the securities issued in this securitization AAA and Aaa.

“The fact that a government-sponsored entity purchased 100% of the triple-A bonds makes us very proud of what we’ve been able to accomplish,” says Anthony J. Santilli, ABFI chairman and chief executive officer, in a statement.

In eight years, ABFI has built a loan portfolio of more than $3.2 million, which it manages and services for others.

“We believe it is that managed portfolio which will bring the company to the position where we consistently achieve positive cash flow from operations,” Santilli says.

ABFI originates business purpose loans and first and second mortgage loans through a combination of channels, including a national processing center at its Bala Cynwyd office, a regional center in Roseland, NJ, and several retail branch offices.