ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

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                                                                 Exhibit 10.1(B)

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                                                                  EXECUTION COPY
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                                                               December 14, 2006


     ASSIGNMENT,  ASSUMPTION  AND  RECOGNITION  AGREEMENT  (this  "AAR"),  dated
December 14, 2006, is among Bank of America,  National  Association,  a national
banking association having an office at 100 North Tryon Street, Charlotte, North
Carolina 28255 (the "Assignor"),  Asset Backed Funding  Corporation,  a Delaware
corporation  having  an  office  at 214 North  Tryon  Street,  Charlotte,  North
Carolina 28255 (the "Assignee"), and Accredited Home Lenders, Inc., a California
corporation having an office at 15253 Avenue of Science,  San Diego,  California
92128 (the "Company").

     For  and in  consideration  of the  sum of one  dollar  ($1.00)  and  other
valuable   consideration  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged,  and of the mutual covenants herein contained,  the parties hereto
hereby agree as follows:

     1. The Assignor hereby grants, transfers and assigns to the Assignee all of
the right,  title and interest of the  Assignor,  as  Purchaser,  under (i) that
certain Flow Sale and Interim  Servicing  Agreement (the "Flow Sale Agreement"),
dated as of September 1, 2006, by and between the Assignor and the Company, (ii)
the Memorandum of Sale,  dated September 28, 2006 (the "Original  Closing Date")
(the  "Memorandum  of Sale,"  and  together  with the Flow Sale  Agreement,  the
"Transfer  Agreement"),  each by and  between  the  Assignor  and  the  Company,
including  but not limited to the  representations  and  warranties  made by the
Company in Sections 3.01 and 3.02 and the remedy provisions set forth in Section
3.03  of  the  Flow  Sale  Agreement  (other  than  the  Assignor's   rights  to
indenmnification  thereunder), but excluding the Assignor's rights under Section
3.05 of the Flow Sale Agreement,  and (iii) each of the Mortgage Loans delivered
under the Transfer Agreement by the Company to the Assignor. Notwithstanding the
foregoing,  the  Company  and the  Assignee  acknowledge  that in the  event the
Assignor   repurchases  any  Mortgage  Loan  or  otherwise  performs  any  other
obligation under the Mortgage Loan Purchase Agreement (as defined below) that is
also the  obligation of the Company under the Transfer  Agreement,  the Assignor
shall be deemed to have  retained its right to enforce such  obligation  against
the Company  and the  Assignee  will be deemed to have  waived  such  right.  In
addition,  notwithstanding  any  provision  in  this  AAR to the  contrary,  the
Assignor  specifically  reserves  and does not assign to the Assignee any right,
title and interest in, to or under any  Mortgage  Loans  subject to the Transfer
Agreement  other than the Mortgage  Loans that are subject to the Mortgage  Loan
Purchase Agreement (the "Assigned Mortgage Loans").

     2. The Assignor has sold,  assigned,  set over, and otherwise  conveyed its
rights in, to and under the Assigned Mortgage Loans delivered under the Transfer
Agreement  to the  Assignee  pursuant to that  certain  Mortgage  Loan  Purchase
Agreement  (the  "Mortgage  Loan Purchase  Agreement"),  dated as of November 1,
2006, by and between the Assignee, as purchaser, and the Assignor, as seller.


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     3. The Assignee  has further  assigned its rights in, to and under (i) this
AAR and (ii) the Assigned Mortgage Loans delivered under the Transfer  Agreement
to U.S. Bank National Association, as trustee (the "Trustee"),  pursuant to that
certain Pooling and Servicing Agreement (the "Pooling and Servicing Agreement"),
dated  as of  November  1,  2006,  among  the  Depositor,  Option  One  Mortgage
Corporation,  as a servicer,  JPMorgan Chase Bank,  National  Association,  as a
servicer,  Litton Loan Servicing LP, as a servicer,  Wells Fargo Bank,  N.A., as
master