8-K 1 d289561.txt ACE SECURITIES CORP. ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 29, 2004 ACE SECURITIES CORP. (as depositor under the Pooling and Servicing Agreement, dated as of October 1, 2004, providing for the issuance of ACE Securities Corp. Home Equity Loan Trust, Series 2004-HE3, Asset-Backed Pass-Through Certificates) ACE SECURITIES CORP. (Exact name of registrant as specified in its charter) -------------------------------------------------------------------------------- Delaware 333-110039 56-2088493 ---------------------------- ----------------- --------------------- (State or Other Jurisdiction (Commission File (I.R.S. Employer of Incorporation) Number) Identification Number) 6525 Morrison Blvd., Suite 318, Charlotte, North Carolina 28211 ---------------------------------- ---------- (Address of Principal (Zip Code) Executive Offices) Registrant's telephone number, including area code: 704-365-0569 ================================================================================ Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b)) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS Description of the Certificates and the Mortgage Pool On October 29, 2004, a series of certificates, entitled ACE Securities Corp. Home Equity Loan Trust, Series 2004-HE3, Asset-Backed Pass-Through Certificates (the "Certificates"), were issued pursuant to a pooling and servicing agreement, dated as of October 1, 2004 (the "Agreement"), attached hereto as Exhibit 4.1, among ACE Securities Corp. as depositor (the "Depositor"), Wells Fargo Bank, N.A. as master servicer, servicer and securities administrator (the "Master Servicer, Servicer and Securities Administrator") and HSBC Bank USA, National Association as trustee (the "Trustee"). The Certificates consist of twenty-one classes of certificates (collectively, the "Certificates"), designated as the "Class A-1A Certificates", "Class A-1B Certificates", "Class A-2A Certificates", "Class A-2B Certificates", "Class A-2C Certificates", "Class A-2D Certificates", "Class M-1 Certificates", "Class M-2 Certificates", "Class M-3 Certificates", "Class M-4 Certificates", "Class M-5 Certificates", "Class M-6 Certificates", "Class M-7 Certificates", "Class M-8 Certificates", "Class M-9 Certificates", "Class M-10 Certificates", "Class M-11 Certificates", "Class B Certificates", "Class P Certificates", "Class CE-1 Certificates", "Class CE-2 Certificates" and "Class R Certificates". The Certificates evidence in the aggregate the entire beneficial ownership interest in a trust fund (the "Trust Fund"), consisting of a pool of mortgage loans (the "Mortgage Pool'") of conventional, one- to four- family, adjustable rate and fixed rate, first lien mortgage loans having original terms to maturity up to 30 years (the "Mortgage Loans"). The Mortgage Pool consists of Mortgage Loans having an aggregate principal balance of approximately $1,105,596,756 as of October 1, 2004 (the "Cut-off Date"). The Mortgage Loans were purchased pursuant to the Mortgage Loan Purchase Agreement, dated October 29, 2004, between DB Structured Products, Inc. as seller and the Depositor (the "Mortgage Loan Purchase Agreement"). The Class A-1A Certificates, Class A-1B Certificates, Class A-2A Certificates, Class A-2B Certificates, Class A-2C Certificates, Class A-2D Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3 Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6 Certificates, Class M-7 Certificates, Class M-8 Certificates, Class M-9 Certificates, Class M-10 Certificates, Class M-11 Certificates were sold by Depositor pursuant to the Amended and Restated Underwriting Agreement, dated June 24, 1999, as amended and restated to and including July 8, 2002, between the Depositor and Deutsche Bank Securities Inc., and the Terms Agreement, dated October 28, 2004 between Depositor and Deutsche Bank Securities Inc. (collectively, the "Underwriting Agreement"). The Certificates have the following initial Certificate Balances and Pass-Through Rates: ================================================================================ INITIAL CERTIFICATE PASS-THROUGH CLASS PRINCIPAL BALANCE(1) RATE(2) -------------------------------------------------------------------------------- A-1A $ 464,234,000 One-Month LIBOR + 0.35% -------------------------------------------------------------------------------- A-1B $ 51,582,000 One-Month LIBOR + 0.45% A-2A $ 100,000,000 One-Month LIBOR + 0.37% A-2B $ 167,119,000 One-Month LIBOR + 0.18% A-2C $ 59,533,000 One-Month LIBOR + 0.34% A-2D $ 50,300,000 One-Month LIBOR + 0.54% M-1 $ 36,485,000 One-Month LIBOR + 0.62% M-2 $ 33,721,000 One-Month LIBOR + 0.67% M-3 $ 21,006,000 One-Month LIBOR + 0.72% M-4 $ 18,795,000 One-Month LIBOR + 1.00% M-5 $ 16,584,000 One-Month LIBOR + 1.10% M-6 $ 14,926,000 One-Month LIBOR + 1.30% M-7 $ 13,267,000 One-Month LIBOR + 1.85% M-8 $ 11,056,000 One-Month LIBOR + 2.00% M-9 $ 9,398,000 One-Month LIBOR + 2.35% M-10 $ 6,500,000 One-Month LIBOR + 3.50% M-11 $ 15,613,000 One-Month LIBOR + 3.50% ================================================================================ (1) Approximate. (2) After the optional termination date, the margins applicable to the Class A-1A, Class A-1B, Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates will increase by 100% and the margins applicable to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11 Certificates will increase by 50%. The Certificates, other than the Class B, Class CE-1, Class CE-2, Class P and Class R Certificates, and the Mortgage Loans are more particularly described in the Prospectus Supplement, dated October 28, 2004 (the "Prospectus Supplement"), and the Prospectus, dated November 5, 2003, as previously filed with the Securities and Exchange Commission pursuant to Rule 424(b). The Class B, Class CE-1, Class CE-2, Class P and the Class R Certificates have not been and will not be publicly offered by the Depositor. Capitalized terms used but not otherwise defined herein shall have the meanings assigned to them in the Prospectus Supplement. Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS (a) Not applicable (b) Not applicable (c) Exhibits ------------------------- ------------------------------------------------------ EXHIBIT NO. DESCRIPTION ------------------------- ------------------------------------------------------ 4.1 Pooling and Servicing Agreement, dated as of October 1, 2004, by and among ACE Securities Corp., as Depositor, Wells Fargo Bank, N.A., as Master Servicer, Servicer and Securities Administrator, and HSBC Bank USA, National Association, as Trustee relating to the Series 2004-HE3 Certificates. ------------------------- ------------------------------------------------------ SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: December 6, 2004 ACE SECURITIES CORP. By: /s/ Douglas K. Johnson ---------------------------- Name: Douglas K. Johnson Title: President By: /s/ Evelyn Echevarria ---------------------------- Name: Evelyn Echevarria Title: Vice President Index to Exhibits ----------------- Sequentially Exhibit No. Description Numbered Page ----------- ----------- ------------- 4.1 Pooling and Servicing Agreement, dated as of 7 October 1, 2004, by and among ACE Securities Corp., as Depositor, Wells Fargo Bank, N.A., as Master Servicer, Servicer and Securities Administrator, and HSBC Bank USA, National Association, as Trustee relating to the Series 2004-HE3 Certificates. EXHIBIT 4.1

ACE Securities Corporation Mortgage Pass-Through Certificates Record Date: 10/31/04 Distribution Date: 11/26/04 ACE Series: 2004-HE3 Contact: Customer Service - CTSLink Wells Fargo Bank, N.A. Securities Administration Services 7485 New Horizon Way Frederick, MD 21703 Telephone: (301) 815-6600 Fax: (301) 815-6660 Certificateholder Distribution Summary Certificate Certificate Beginning Class Pass-Through Certificate Interest Principal Class CUSIP Description Rate Balance Distribution Distribution A-1A 004421HJ5 SEN 2.31000% 464,234,000.00 834,073.75 5,801,932.13 A-1B 004421HK2 SEN 2.41000% 51,582,000.00 96,687.59 644,664.68 A-2A 004421HL0 SEN 2.33000% 100,000,000.00 181,222.22 1,145,084.28 A-2B 004421HM8 SEN 2.14000% 167,119,000.00 278,160.29 3,171,333.82 A-2C 004421HN6 SEN 2.30000% 59,533,000.00 106,497.92 0.00 A-2D 004421HP1 SEN 2.50000% 50,300,000.00 97,805.56 0.00 M-1 004421HQ9 MEZ 2.58000% 36,485,000.00 73,213.23 0.00 M-2 004421HR7 MEZ 2.63000% 33,721,000.00 68,978.18 0.00 M-3 004421HS5 MEZ 2.68000% 21,006,000.00 43,785.84 0.00 M-4 004421HT3 MEZ 2.96000% 18,795,000.00 43,270.27 0.00 M-5 004421HU0 MEZ 3.06000% 16,584,000.00 39,469.92 0.00 M-6 004421HV8 MEZ 3.26000% 14,926,000.00 37,845.70 0.00 M-7 004421HW6 MEZ 3.81000% 13,267,000.00 39,314.54 0.00 M-8 004421HX4 MEZ 3.96000% 11,056,000.00 34,052.48 0.00 M-9 004421HY2 MEZ 4.31000% 9,398,000.00 31,504.18 0.00 M-10 004421HZ9 MEZ 5.46000% 6,500,000.00 27,603.33 0.00 M-11 004421JA2 MEZ 5.46000% 15,613,000.00 66,303.21 0.00 B 004421JB0 MEZ 5.46000% 9,950,000.00 42,254.33 0.00 P 111300653 SEN 0.00000% 100.00 114,131.89 0.00 CE-1 111300976 SUB 0.00000% 5,527,655.90 3,995,876.51 (327.88) CE-2 111300984 SUB 0.00000% 0.00 0.00 0.00 R 111300661 SEN 0.00000% 0.00 0.00 0.00 Totals 1,105,596,755.90 6,252,050.94 10,762,687.03

Certificateholder Distribution Summary (continued) Current Ending Cumulative Realized Certificate Total Realized Class Loss Balance Distribution Losses A-1A 0.00 458,432,067.87 6,636,005.88 0.00 A-1B 0.00 50,937,335.32 741,352.27 0.00 A-2A 0.00 98,854,915.72 1,326,306.50 0.00 A-2B 0.00 163,947,666.18 3,449,494.11 0.00 A-2C 0.00 59,533,000.00 106,497.92 0.00 A-2D 0.00 50,300,000.00 97,805.56 0.00 M-1 0.00 36,485,000.00 73,213.23 0.00 M-2 0.00 33,721,000.00 68,978.18 0.00 M-3 0.00 21,006,000.00 43,785.84 0.00 M-4 0.00 18,795,000.00 43,270.27 0.00 M-5 0.00 16,584,000.00 39,469.92 0.00 M-6 0.00 14,926,000.00 37,845.70 0.00 M-7 0.00 13,267,000.00 39,314.54 0.00 M-8 0.00 11,056,000.00 34,052.48 0.00 M-9 0.00 9,398,000.00 31,504.18 0.00 M-10 0.00 6,500,000.00 27,603.33 0.00 M-11 0.00 15,613,000.00 66,303.21 0.00 B 0.00 9,950,000.00 42,254.33 0.00 P 0.00 100.00 114,131.89 0.00 CE-1 0.00 5,527,983.78 3,995,548.63 0.00 CE-2 0.00 0.00 0.00 0.00 R 0.00 0.00 0.00 0.00 Totals 0.00 1,094,834,068.87 17,014,737.97 0.00 All distributions required by the Pooling and Servicing Agreement have been calculated by the Certificate Administrator on behalf of the Trustee.

Principal Distribution Statement Original Beginning Scheduled Unscheduled Face Certificate Principal Principal Realized Class Amount Balance Distribution Distribution Accretion Loss (1) A-1A 464,234,000.00 464,234,000.00 0.00 5,801,932.13 0.00 0.00 A-1B 51,582,000.00 51,582,000.00 0.00 644,664.68 0.00 0.00 A-2A 100,000,000.00 100,000,000.00 0.00 1,145,084.28 0.00 0.00 A-2B 167,119,000.00 167,119,000.00 0.00 3,171,333.82 0.00 0.00 A-2C 59,533,000.00 59,533,000.00 0.00 0.00 0.00 0.00 A-2D 50,300,000.00 50,300,000.00 0.00 0.00 0.00 0.00 M-1 36,485,000.00 36,485,000.00 0.00 0.00 0.00 0.00 M-2 33,721,000.00 33,721,000.00 0.00 0.00 0.00 0.00 M-3 21,006,000.00 21,006,000.00 0.00 0.00 0.00 0.00 M-4 18,795,000.00 18,795,000.00 0.00 0.00 0.00 0.00 M-5 16,584,000.00 16,584,000.00 0.00 0.00 0.00 0.00 M-6 14,926,000.00 14,926,000.00 0.00 0.00 0.00 0.00 M-7 13,267,000.00 13,267,000.00 0.00 0.00 0.00 0.00 M-8 11,056,000.00 11,056,000.00 0.00 0.00 0.00 0.00 M-9 9,398,000.00 9,398,000.00 0.00 0.00 0.00 0.00 M-10 6,500,000.00 6,500,000.00 0.00 0.00 0.00 0.00 M-11 15,613,000.00 15,613,000.00 0.00 0.00 0.00 0.00 B 9,950,000.00 9,950,000.00 0.00 0.00 0.00 0.00 P 100.00 100.00 0.00 0.00 0.00 0.00 CE-1 5,527,655.90 5,527,655.90 0.00 0.00 0.00 0.00 CE-2 0.00 0.00 0.00 0.00 0.00 0.00 R 0.00 0.00 0.00 0.00 0.00 0.00 Totals 1,105,596,755.90 1,105,596,755.90 0.00 10,763,014.91 0.00 0.00 (1) Amount Does Not Include Excess Special Hazard, Bankruptcy, or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

Principal Distribution Statement (continued) Total Ending Ending Total Principal Certificate Certificate Principal Class Reduction Balance Percentage Distribution A-1A 5,801,932.13 458,432,067.87 0.98750214 5,801,932.13 A-1B 644,664.68 50,937,335.32 0.98750214 644,664.68 A-2A 1,145,084.28 98,854,915.72 0.98854916 1,145,084.28 A-2B 3,171,333.82 163,947,666.18 0.98102350 3,171,333.82 A-2C 0.00 59,533,000.00 1.00000000 0.00 A-2D 0.00 50,300,000.00 1.00000000 0.00 M-1 0.00 36,485,000.00 1.00000000 0.00 M-2 0.00 33,721,000.00 1.00000000 0.00 M-3 0.00 21,006,000.00 1.00000000 0.00 M-4 0.00 18,795,000.00 1.00000000 0.00 M-5 0.00 16,584,000.00 1.00000000 0.00 M-6 0.00 14,926,000.00 1.00000000 0.00 M-7 0.00 13,267,000.00 1.00000000 0.00 M-8 0.00 11,056,000.00 1.00000000 0.00 M-9 0.00 9,398,000.00 1.00000000 0.00 M-10 0.00 6,500,000.00 1.00000000 0.00 M-11 0.00 15,613,000.00 1.00000000 0.00 B 0.00 9,950,000.00 1.00000000 0.00 P 0.00 100.00 1.00000000 0.00 CE-1 (327.88) 5,527,983.78 1.00005932 (327.88) CE-2 0.00 0.00 0.00000000 0.00 R 0.00 0.00 0.00000000 0.00 Totals 10,762,687.03 1,094,834,068.87 0.99026527 10,762,687.03

Principal Distribution Factors Statement Original Beginning Scheduled Unscheduled Face Certificate Principal Principal Class (2) Amount Balance Distribution Distribution Accretion A-1A 464,234,000.00 1000.00000000 0.00000000 12.49786127 0.00000000 A-1B 51,582,000.00 1000.00000000 0.00000000 12.49786127 0.00000000 A-2A 100,000,000.00 1000.00000000 0.00000000 11.45084280 0.00000000 A-2B 167,119,000.00 1000.00000000 0.00000000 18.97650070 0.00000000 A-2C 59,533,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 A-2D 50,300,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M-1 36,485,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M-2 33,721,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M-3 21,006,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M-4 18,795,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M-5 16,584,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M-6 14,926,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M-7 13,267,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M-8 11,056,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M-9 9,398,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M-10 6,500,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M-11 15,613,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 B 9,950,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 P 100.00 1000.00000000 0.00000000 0.00000000 0.00000000 CE-1 5,527,655.90 1000.00000000 0.00000000 0.00000000 0.00000000 CE-2 0.00 0.00000000 0.00000000 0.00000000 0.00000000 R 0.00 0.00000000 0.00000000 0.00000000 0.00000000

Principal Distribution Factors Statement (continued) Total Ending Ending Total Realized Principal Certificate Certificate Principal Class Loss (3) Reduction Balance Percentage Distribution A-1A 0.00000000 12.49786127 987.50213873 0.98750214 12.49786127 A-1B 0.00000000 12.49786127 987.50213873 0.98750214 12.49786127 A-2A 0.00000000 11.45084280 988.54915720 0.98854916 11.45084280 A-2B 0.00000000 18.97650070 981.02349930 0.98102350 18.97650070 A-2C 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 A-2D 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M-1 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M-2 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M-3 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M-4 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M-5 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M-6 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M-7 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M-8 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M-9 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M-10 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M-11 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 B 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 P 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 CE-1 0.00000000 (0.05931628) 1,000.05931628 1.00005932 (0.05931628) CE-2 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 R 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 (3) Amount Does Not Include Excess Special Hazard, Bankruptcy, or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

Interest Distribution Statement Beginning Payment of Original Current Certificate/ Current Unpaid Current Face Certificate Notional Accrued Interest Interest Class Amount Rate Balance Interest Shortfall Shortfall A-1A 464,234,000.00 2.31000% 464,234,000.00 834,073.75 0.00 0.00 A-1B 51,582,000.00 2.41000% 51,582,000.00 96,687.59 0.00 0.00 A-2A 100,000,000.00 2.33000% 100,000,000.00 181,222.22 0.00 0.00 A-2B 167,119,000.00 2.14000% 167,119,000.00 278,160.29 0.00 0.00 A-2C 59,533,000.00 2.30000% 59,533,000.00 106,497.92 0.00 0.00 A-2D 50,300,000.00 2.50000% 50,300,000.00 97,805.56 0.00 0.00 M-1 36,485,000.00 2.58000% 36,485,000.00 73,213.23 0.00 0.00 M-2 33,721,000.00 2.63000% 33,721,000.00 68,978.18 0.00 0.00 M-3 21,006,000.00 2.68000% 21,006,000.00 43,785.84 0.00 0.00 M-4 18,795,000.00 2.96000% 18,795,000.00 43,270.27 0.00 0.00 M-5 16,584,000.00 3.06000% 16,584,000.00 39,469.92 0.00 0.00 M-6 14,926,000.00 3.26000% 14,926,000.00 37,845.70 0.00 0.00 M-7 13,267,000.00 3.81000% 13,267,000.00 39,314.54 0.00 0.00 M-8 11,056,000.00 3.96000% 11,056,000.00 34,052.48 0.00 0.00 M-9 9,398,000.00 4.31000% 9,398,000.00 31,504.18 0.00 0.00 M-10 6,500,000.00 5.46000% 6,500,000.00 27,603.33 0.00 0.00 M-11 15,613,000.00 5.46000% 15,613,000.00 66,303.21 0.00 0.00 B 9,950,000.00 5.46000% 9,950,000.00 42,254.33 0.00 0.00 P 100.00 0.00000% 100.00 0.00 0.00 0.00 CE-1 5,527,655.90 0.00000% 5,527,655.90 0.00 0.00 0.00 CE-2 0.00 0.00000% 0.00 0.00 0.00 0.00 R 0.00 0.00000% 0.00 0.00 0.00 0.00 Totals 1,105,596,755.90 2,142,042.54 0.00 0.00

Interest Distribution Statement (continued) Remaining Ending Non-Supported Total Unpaid Certificate/ Interest Realized Interest Interest Notional Class Shortfall Losses (4) Distribution Shortfall Balance A-1A 0.00 0.00 834,073.75 0.00 458,432,067.87 A-1B 0.00 0.00 96,687.59 0.00 50,937,335.32 A-2A 0.00 0.00 181,222.22 0.00 98,854,915.72 A-2B 0.00 0.00 278,160.29 0.00 163,947,666.18 A-2C 0.00 0.00 106,497.92 0.00 59,533,000.00 A-2D 0.00 0.00 97,805.56 0.00 50,300,000.00 M-1 0.00 0.00 73,213.23 0.00 36,485,000.00 M-2 0.00 0.00 68,978.18 0.00 33,721,000.00 M-3 0.00 0.00 43,785.84 0.00 21,006,000.00 M-4 0.00 0.00 43,270.27 0.00 18,795,000.00 M-5 0.00 0.00 39,469.92 0.00 16,584,000.00 M-6 0.00 0.00 37,845.70 0.00 14,926,000.00 M-7 0.00 0.00 39,314.54 0.00 13,267,000.00 M-8 0.00 0.00 34,052.48 0.00 11,056,000.00 M-9 0.00 0.00 31,504.18 0.00 9,398,000.00 M-10 0.00 0.00 27,603.33 0.00 6,500,000.00 M-11 0.00 0.00 66,303.21 0.00 15,613,000.00 B 0.00 0.00 42,254.33 0.00 9,950,000.00 P 0.00 0.00 114,131.89 0.00 100.00 CE-1 0.00 0.00 3,995,876.51 0.00 5,527,983.78 CE-2 0.00 0.00 0.00 0.00 0.00 R 0.00 0.00 0.00 0.00 0.00 Totals 0.00 0.00 6,252,050.94 0.00 (4) Amount Does Not Include Excess Special Hazard, Bankruptcy, or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

Interest Distribution Factors Statement Beginning Payment of Original Current Certificate/ Current Unpaid Current Face Certificate Notional Accrued Interest Interest Class (5) Amount Rate Balance Interest Shortfall Shortfall A-1A 464,234,000.00 2.31000% 1000.00000000 1.79666666 0.00000000 0.00000000 A-1B 51,582,000.00 2.41000% 1000.00000000 1.87444438 0.00000000 0.00000000 A-2A 100,000,000.00 2.33000% 1000.00000000 1.81222220 0.00000000 0.00000000 A-2B 167,119,000.00 2.14000% 1000.00000000 1.66444444 0.00000000 0.00000000 A-2C 59,533,000.00 2.30000% 1000.00000000 1.78888885 0.00000000 0.00000000 A-2D 50,300,000.00 2.50000% 1000.00000000 1.94444453 0.00000000 0.00000000 M-1 36,485,000.00 2.58000% 1000.00000000 2.00666658 0.00000000 0.00000000 M-2 33,721,000.00 2.63000% 1000.00000000 2.04555559 0.00000000 0.00000000 M-3 21,006,000.00 2.68000% 1000.00000000 2.08444444 0.00000000 0.00000000 M-4 18,795,000.00 2.96000% 1000.00000000 2.30222240 0.00000000 0.00000000 M-5 16,584,000.00 3.06000% 1000.00000000 2.38000000 0.00000000 0.00000000 M-6 14,926,000.00 3.26000% 1000.00000000 2.53555541 0.00000000 0.00000000 M-7 13,267,000.00 3.81000% 1000.00000000 2.96333308 0.00000000 0.00000000 M-8 11,056,000.00 3.96000% 1000.00000000 3.08000000 0.00000000 0.00000000 M-9 9,398,000.00 4.31000% 1000.00000000 3.35222175 0.00000000 0.00000000 M-10 6,500,000.00 5.46000% 1000.00000000 4.24666615 0.00000000 0.00000000 M-11 15,613,000.00 5.46000% 1000.00000000 4.24666688 0.00000000 0.00000000 B 9,950,000.00 5.46000% 1000.00000000 4.24666633 0.00000000 0.00000000 P 100.00 0.00000% 1000.00000000 0.00000000 0.00000000 0.00000000 CE-1 5,527,655.90 0.00000% 1000.00000000 0.00000000 0.00000000 0.00000000 CE-2 0.00 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000 R 0.00 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000 (5) Per $1 denomination.

Interest Distribution Factors Statement (continued) Remaining Ending Non-Supported Total Unpaid Certificate/ Interest Realized Interest Interest Notional Class Shortfall Losses (6) Distribution Shortfall Balance A-1A 0.00000000 0.00000000 1.79666666 0.00000000 987.50213873 A-1B 0.00000000 0.00000000 1.87444438 0.00000000 987.50213873 A-2A 0.00000000 0.00000000 1.81222220 0.00000000 988.54915720 A-2B 0.00000000 0.00000000 1.66444444 0.00000000 981.02349930 A-2C 0.00000000 0.00000000 1.78888885 0.00000000 1000.00000000 A-2D 0.00000000 0.00000000 1.94444453 0.00000000 1000.00000000 M-1 0.00000000 0.00000000 2.00666658 0.00000000 1000.00000000 M-2 0.00000000 0.00000000 2.04555559 0.00000000 1000.00000000 M-3 0.00000000 0.00000000 2.08444444 0.00000000 1000.00000000 M-4 0.00000000 0.00000000 2.30222240 0.00000000 1000.00000000 M-5 0.00000000 0.00000000 2.38000000 0.00000000 1000.00000000 M-6 0.00000000 0.00000000 2.53555541 0.00000000 1000.00000000 M-7 0.00000000 0.00000000 2.96333308 0.00000000 1000.00000000 M-8 0.00000000 0.00000000 3.08000000 0.00000000 1000.00000000 M-9 0.00000000 0.00000000 3.35222175 0.00000000 1000.00000000 M-10 0.00000000 0.00000000 4.24666615 0.00000000 1000.00000000 M-11 0.00000000 0.00000000 4.24666688 0.00000000 1000.00000000 B 0.00000000 0.00000000 4.24666633 0.00000000 1000.00000000 P 0.00000000 0.00000000 1141318.90000000 0.00000000 1000.00000000 CE-1 0.00000000 0.00000000 722.88807087 0.00000000 1000.05931628 CE-2 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 R 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 (6) Amount Does Not Include Excess Special Hazard, Bankruptcy,or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

CERTIFICATEHOLDER ACCOUNT STATEMENT CERTIFICATE ACCOUNT Beginning Balance 0.00 Deposits Payments of Interest and Principal 17,377,434.20 Liquidations, Insurance Proceeds, Reserve Funds 0.00 Proceeds from Repurchased Loans 0.00 Other Amounts (Servicer Advances) 8,848.41 Realized Loss (Gains, Subsequent Expenses & Recoveries) 0.00 Prepayment Penalties 114,131.89 Total Deposits 17,500,414.50 Withdrawals Reimbursement for Servicer Advances 0.00 Payment of Service Fee 486,001.90 Payment of Interest and Principal 17,014,412.60 Total Withdrawals (Pool Distribution Amount) 17,500,414.50 Ending Balance 0.00

PREPAYMENT/CURTAILMENT INTEREST SHORTFALL Total Prepayment/Curtailment Interest Shortfall 0.00 Servicing Fee Support 0.00 Non-Supported Prepayment/Curtailment Interest Shortfall 0.00

SERVICING FEES Gross Servicing Fee 460,665.32 Credit Risk Manager Fee - The Murrayhill Company 13,819.95 Master Servicing Fee - Wells Fargo 11,516.63 Supported Prepayment/Curtailment Interest Shortfall 0.00 Net Servicing Fee 486,001.90

OTHER ACCOUNTS Beginning Current Current Ending Account Type Balance Withdrawals Deposits Balance Reserve Fund 0.00 0.00 0.00 0.00 Reserve Fund 0.00 0.00 0.00 0.00 Reserve Fund 0.00 114,131.89 114,131.89 0.00

LOAN STATUS STRATIFICATION/CREDIT ENHANCEMENT STATEMENT DELINQUENCY STATUS DELINQUENT BANKRUPTCY FORECLOSURE REO Total No of Loans No of Loans No of Loans No of Loans No of Loans Principal Balance Principal Balance Principal Balance Principal Balance Principal Balance 0-29 Days 0 0 0 0 0.00 0.00 0.00 0.00 30 Days 6 0 0 0 6 972,777.09 0.00 0.00 0.00 972,777.09 60 Days 3 0 0 0 3 358,749.05 0.00 0.00 0.00 358,749.05 90 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 120 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 150 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 180+ Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 Totals 9 0 0 0 9 1,331,526.14 0.00 0.00 0.00 1,331,526.14 No of Loans No of Loans No of Loans No of Loans No of Loans Principal Balance Principal Balance Principal Balance Principal Balance Principal Balance 0-29 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 30 Days 0.102442% 0.000000% 0.000000% 0.000000% 0.102442% 0.088834% 0.000000% 0.000000% 0.000000% 0.088834% 60 Days 0.051221% 0.000000% 0.000000% 0.000000% 0.051221% 0.032761% 0.000000% 0.000000% 0.000000% 0.032761% 90 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 120 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 150 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 180+ Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% Totals 0.153662% 0.000000% 0.000000% 0.000000% 0.153662% 0.121594% 0.000000% 0.000000% 0.000000% 0.121594%

Delinquency Status By Groups DELINQUENT BANKRUPTCY FORECLOSURE REO Total Group 1 Sub Grp 1 No of Loans No of Loans No of Loans No of Loans No of Loans Principal Balance Principal Balance Principal Balance Principal Balance Principal Balance 0-29 Days 0 0 0 0 0.00 0.00 0.00 0.00 30 Days 1 0 0 0 1 151,195.95 0.00 0.00 0.00 151,195.95 60 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 90 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 120 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 150 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 180 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 Totals 1 0 0 0 1 151,195.95 0.00 0.00 0.00 151,195.95 0-29 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 30 Days 0.058617% 0.000000% 0.000000% 0.000000% 0.058617% 0.092755% 0.000000% 0.000000% 0.000000% 0.092755% 60 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 90 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 120 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 150 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 180 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% Totals 0.058617% 0.000000% 0.000000% 0.000000% 0.058617% 0.092755% 0.000000% 0.000000% 0.000000% 0.092755% DELINQUENT BANKRUPTCY FORECLOSURE REO Total Group 1 Sub Grp 2 No of Loans No of Loans No of Loans No of Loans No of Loans Principal Balance Principal Balance Principal Balance Principal Balance Principal Balance 0-29 Days 0 0 0 0 0.00 0.00 0.00 0.00 30 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 60 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 90 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 120 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 150 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 180 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 Totals 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 0-29 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 30 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 60 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 90 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 120 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 150 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 180 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% Totals 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% DELINQUENT BANKRUPTCY FORECLOSURE REO Total Group 2 Sub Grp 3 No of Loans No of Loans No of Loans No of Loans No of Loans Principal Balance Principal Balance Principal Balance Principal Balance Principal Balance 0-29 Days 0 0 0 0 0.00 0.00 0.00 0.00 30 Days 1 0 0 0 1 3,568.11 0.00 0.00 0.00 3,568.11 60 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 90 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 120 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 150 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 180 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 Totals 1 0 0 0 1 3,568.11 0.00 0.00 0.00 3,568.11 0-29 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 30 Days 0.163666% 0.000000% 0.000000% 0.000000% 0.163666% 0.004126% 0.000000% 0.000000% 0.000000% 0.004126% 60 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 90 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 120 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 150 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 180 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% Totals 0.163666% 0.000000% 0.000000% 0.000000% 0.163666% 0.004126% 0.000000% 0.000000% 0.000000% 0.004126% DELINQUENT BANKRUPTCY FORECLOSURE REO Total Group 2 Sub Grp 4 No of Loans No of Loans No of Loans No of Loans No of Loans Principal Balance Principal Balance Principal Balance Principal Balance Principal Balance 0-29 Days 0 0 0 0 0.00 0.00 0.00 0.00 30 Days 4 0 0 0 4 818,013.03 0.00 0.00 0.00 818,013.03 60 Days 3 0 0 0 3 358,749.05 0.00 0.00 0.00 358,749.05 90 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 120 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 150 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 180 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 Totals 7 0 0 0 7 1,176,762.08 0.00 0.00 0.00 1,176,762.08 0-29 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 30 Days 0.417537% 0.000000% 0.000000% 0.000000% 0.417537% 0.217493% 0.000000% 0.000000% 0.000000% 0.217493% 60 Days 0.313152% 0.000000% 0.000000% 0.000000% 0.313152% 0.095384% 0.000000% 0.000000% 0.000000% 0.095384% 90 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 120 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 150 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 180 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% Totals 0.730689% 0.000000% 0.000000% 0.000000% 0.730689% 0.312877% 0.000000% 0.000000% 0.000000% 0.312877%

OTHER INFORMATION Current Period Class A Insufficient Funds 0.00 Principal Balance of Contaminated Properties 0.00 Periodic Advance 8,848.41

COLLATERAL STATEMENT Collateral Description Fixed & Mixed ARM Weighted Average Gross Coupon 7.189518% Weighted Average Net Coupon 6.689517% Weighted Average Pass-Through Rate 6.662016% Weighted Average Maturity(Stepdown Calculation ) 344 Beginning Scheduled Collateral Loan Count 5,906 Number Of Loans Paid In Full 49 Ending Scheduled Collateral Loan Count 5,857 Beginning Scheduled Collateral Balance 1,105,596,755.90 Ending Scheduled Collateral Balance 1,094,834,068.87 Ending Actual Collateral Balance at 31-Oct-2004 1,095,056,189.48 Monthly P &I Constant 7,378,629.93 Special Servicing Fee 0.00 Prepayment Penalties 114,131.89 Realized Loss Amount 0.00 Cumulative Realized Loss 0.00 Scheduled Principal 754,399.59 Unscheduled Principal 10,008,287.44

COLLATERAL STATEMENT Collateral Description Fixed & Mixed ARM Weighted Average Coupon Rate 7.189518% Weighted Average Net Rate 6.689517% Weighted Average Pass Through Rate 6.662016% Weighted Average Maturity 344 Record Date 10/31/2004 Principal and Interest Constant 7,378,629.93 Beginning Loan Count 5,906 Loans Paid in Full 49 Ending Loan Count 5,857 Beginning Scheduled Balance 1,105,596,755.90 Ending Scheduled Balance 1,094,834,068.87 Ending Actual Balance at 31-Oct-2004 1,095,056,189.48 Scheduled Principal 754,399.59 Unscheduled Principal 10,008,287.44 Scheduled Interest 6,623,923.09 Servicing Fee 460,665.32 Master Servicing Fee 11,516.63 Trustee Fee 0.00 FRY Amount 0.00 Special Hazard Fee 0.00 Other Fee 13,819.95 Pool Insurance Fee 0.00 Spread 1 0.00 Spread 2 0.00 Spread 3 0.00 Net Interest 6,138,228.44 Realized Loss Amount 0.00 Cumulative Realized Loss 0.00 Percentage of Cumulative Losses 0.0000 Special Servicing Fee 0.00 Prepayment Penalties 114,131.89

Miscellaneous Reporting Credit Enhancement Percentage 19.439362% Required Overcollateralization Amount 5,527,983.78 Overcollateralization Reduction Amount 327.88 Overcollateralization Increase Amount 0.00

Group Level Collateral Statement Group Group 1 Sub Grp 1 Group 1 Sub Grp 2 Group 2 Sub Grp 3 Collateral Description Fixed 15/30 & ARM Fixed 15/30 & ARM Fixed 15/30 & ARM Weighted Average Coupon Rate 8.040760 7.012218 8.566360 Weighted Average Net Rate 7.540760 6.512218 8.066360 Weighted Average Maturity 313 359 265 Beginning Loan Count 1,720 2,605 614 Loans Paid In Full 14 23 3 Ending Loan Count 1,706 2,582 611 Beginning Scheduled Balance 164,596,079.65 474,185,614.70 86,795,558.30 Ending scheduled Balance 162,970,772.18 469,364,514.80 86,459,090.34 Record Date 10/31/2004 10/31/2004 10/31/2004 Principal And Interest Constant 1,241,747.64 3,113,577.22 678,615.41 Scheduled Principal 138,849.67 342,666.59 59,013.73 Unscheduled Principal 1,486,457.80 4,478,433.31 277,454.23 Scheduled Interest 1,102,897.97 2,770,910.63 619,601.68 Servicing Fees 68,581.70 197,577.34 36,164.82 Master Servicing Fees 1,714.54 4,939.43 904.12 Trustee Fee 0.00 0.00 0.00 FRY Amount 0.00 0.00 0.00 Special Hazard Fee 0.00 0.00 0.00 Other Fee 2,057.45 5,927.32 1,084.94 Pool Insurance Fee 0.00 0.00 0.00 Spread Fee 1 0.00 0.00 0.00 Spread Fee 2 0.00 0.00 0.00 Spread Fee 3 0.00 0.00 0.00 Net Interest 1,030,544.28 2,562,466.54 581,447.80 Realized Loss Amount 0.00 0.00 0.00 Cumulative Realized Loss 0.00 0.00 0.00 Percentage of Cumulative Losses 0.0000 0.0000 0.0000 Prepayment Penalties 0.00 0.00 0.00 Special Servicing Fee 0.00 0.00 0.00 Pass-Through Rate 7.513260 6.484718 8.038860

Group Level Collateral Statement Group Group 2 Sub Grp 4 Total Collateral Description Fixed 15/30 & ARM Fixed & Mixed ARM Weighted Average Coupon Rate 6.727590 7.189518 Weighted Average Net Rate 6.227590 6.689517 Weighted Average Maturity 359 344 Beginning Loan Count 967 5,906 Loans Paid In Full 9 49 Ending Loan Count 958 5,857 Beginning Scheduled Balance 380,019,503.25 1,105,596,755.90 Ending scheduled Balance 376,039,691.55 1,094,834,068.87 Record Date 10/31/2004 10/31/2004 Principal And Interest Constant 2,344,689.66 7,378,629.93 Scheduled Principal 213,869.60 754,399.59 Unscheduled Principal 3,765,942.10 10,008,287.44 Scheduled Interest 2,130,512.81 6,623,923.09 Servicing Fees 158,341.46 460,665.32 Master Servicing Fees 3,958.54 11,516.63 Trustee Fee 0.00 0.00 FRY Amount 0.00 0.00 Special Hazard Fee 0.00 0.00 Other Fee 4,750.24 13,819.95 Pool Insurance Fee 0.00 0.00 Spread Fee 1 0.00 0.00 Spread Fee 2 0.00 0.00 Spread Fee 3 0.00 0.00 Net Interest 1,963,769.82 6,138,228.44 Realized Loss Amount 0.00 0.00 Cumulative Realized Loss 0.00 0.00 Percentage of Cumulative Losses 0.0000 0.0000 Prepayment Penalties 0.00 0.00 Special Servicing Fee 0.00 0.00 Pass-Through Rate 6.200087 6.662016

Filing Compare · ACE Securities Corp Series 2004-HE3