================================================================================
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)
September 10,1998
AMRESCO Residential Securities Corporation
(Exact name of registrant as specified in its charter)
Delaware 333-30759-04 75-2620414
- ------------------------------- ------------ -------------------
(State or Other Jurisdiction of (Commission (I.R.S. Employer
Incorporation) File Number) Identification No.)
700 North Pearl Street
Suite 2400, LB #342
Dallas, Texas 75201-7424
- ----------------------------------------------------- -------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (214) 953-7700
--------------
No Change
-------------------------------------------------------------
(Former name or former address, if changed since last report)
================================================================================
<PAGE>
Item 5. Other Events.
In connection with the offering of AMRESCO Residential Securities
Corporation Mortgage Loan Pass-Through Certificates, Series 1998-3, described in
a Prospectus Supplement to be dated as of September 1998, certain term sheets
and "Computational Materials" within the meaning of the May 20, 1994 Kidder,
Peabody No-Action Letter and the February 17, 1995 Public Securities Association
No-Action Letter were furnished to certain prospective investors (the "Related
Computational Materials").
The Related Computational Materials furnished to certain prospective
investors by the lead Underwriter, Morgan Stanley Dean Witter, are filed
herewith as Exhibit 99.1. In addition, Prudential Securities Incorporated and
Credit Suisse First Boston, as co-underwriters, have furnished Related
Computational Materials to certain prospective investors, which are
substantially identical to the Related Computational Materials furnished by
Morgan Stanley Dean Witter, other than the disclosure in each related
co-underwriter's legend. Therefore, only each co-underwriter's legend has been
filed herewith.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) Not applicable
(b) Not applicable
(c) Exhibits:
99.1 Computational Materials and ABS Term Sheets of Morgan Stanley Dean
Witter relating to the Offered Certificates.
99.2 Legend to Related Computational Materials and ABS Term Sheets of
Prudential Securities Incorporated relating to the Offered
Certificates.
99.3 Legend to Related Computational Materials and ABS Term Sheets of
Credit Suisse First Boston relating to the Offered Certificates.
<PAGE>
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 hereunto duly authorized.
AMRESCO RESIDENTIAL SECURITIES CORPORATION,
as Depositor
By: /s/ Ronald B. Kirkland
---------------------------------
Name: Ronald B. Kirkland
Title: Vice President and
Chief Accounting Officer
Dated: September 10, 1998
<PAGE>
EXHIBIT INDEX
Exhibit No. Description Page No.
99.1 Computational Materials and ABS Term Sheets of
Morgan Stanley Dean Witter relating to the Offered
Certificates. ________
99.2 Legend to Related Computational Materials and ABS
Term Sheets of Prudential Securities Incorporated
relating to the Offered Certificates. ________
99.3 Legend to Related Computational Materials and ABS
Term Sheets of Credit Suisse First Boston relating
to the Offered Certificates. ________
Exhibit 99.1
ABS New Transaction
Computational Materials
$724,411,000 (Approximate)
AMRESCO
Asset Backed Certificates
Series 1998-3
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
<PAGE>
$724.4 million AMRESCO Residential Securities Corporation
Mortgage Loan Trust 1998-3
AMRESCO Residential Capital Markets, Inc.
Seller
AMRESCO Residential Mortgage Corp.
Servicer
Transaction Highlights
----------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Payment
Expected Average Life to Mod Dur to Window to
Class Size Tranche Type Ratings Call / Maty Call / Maty Call / Maty Day Price
Class(1) ($millions) (Pool / Type) (Moody's / (years) (years) (months) Count Benchmark Talk
====================================================================================================================================
Fitch)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 $81.000 FRM / Sequential Aaa / AAA
A-2 $60.000 FRM / Sequential Aaa / AAA
A-3 $27.000 FRM / Sequential Aaa / AAA Offered separately through Freddie Mac Guarantee
A-4 $59.000 FRM / Sequential Aaa / AAA
A-5 $21.289 FRM / Sequential Aaa / AAA
A-6 $27.300 FRM / Fixed NAS Aaa / AAA
- ------------------------------------------------------------------------------------------------------------------------------------
B-1F $6.344 FRM / Subordinate Baa3 / BBB 5.50 / 5.65 4.16 / 4.23 62 / 85 30 / 360 TBD +[ ]
A-7 $429.657 ARM / Floater Aaa / AAA 2.09 / 2.36 1.81 / 1.96 85 / 196 Actual / 360 TBD +[ ]
A-8 $143.000 ARM / Fixed NAS Aaa / AAA 2.51 / 2.51 2.26 / 2.26 40 / 40 30 / 360 TBD +[ }
M-1A $55.650 ARM / Mezzanine Aa2 / AA 4.97 / 5.54 4.17 / 4.49 44 / 127 Actual / 360 TBD +[ ]
M-2A $48.470 ARM / Mezzanine A2 / A 4.86 / 5.38 4.05 / 4.34 47 / 115 Actual / 360 TBD +[ ]
B-1A $41.290 ARM / Subordinate Baa3 / BBB 4.81 / 5.15 3.92 / 4.10 49 / 95 Actual / 360 TBD +[ ]
- ------------------------------------------------------------------------------------------------------------------------------------
Total $1,000.00 -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Classes A-1 through A-6, and B-1F are backed by a Freddie Mac conforming
fixed rate pool; Classes A-7, A-8, M-1A, M-2A, and B-1A are backed primarily
by an ARM pool. The Certificates also include a fixed and ARM pool
Subordinate IO strip, as described below under "Subordinate IO".
Seller: AMRESCO Residential Capital Markets, Inc.
Servicer: AMRESCO Residential Mortgage Corp.
Sub-Servicer: Wendover Financial Services Corporation
Trustee: Norwest Bank Minnesota, N.A.
Collateral:
- -----------
Group I Portfolio: Freddie Mac-conforming fixed rate home equity loans
secured by first and second lien mortgages.
See "Collateral Description" herein for more detail.
Group II Portfolio: Conventional fixed and adjustable rate home equity
loans secured by first lien mortgages only.
See "Collateral Description" herein for more detail.
Prepayment Speed:
- -----------------
Group I Certificates: All classes are priced at a prepayment speed of 24
HEP. 24 HEP describes prepayments starting at 2.4%
CPR in month 1, increasing by approximately 2.4% CPR
per month to 24% CPR in month 10, and remaining at
24% CPR thereafter.
Group II Certificates: Constant 27% CPR.
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
<PAGE>
Transaction Highlights
----------------------
(continued)
Expected Pricing Date: Monday, September 14, 1998
Expected Settlement: Tuesday, September 29, 1998 through DTC, Euroclear
and CEDEL.
Distribution Dates: The 25th of each month, beginning October, 1998
Credit Enhancement:
- -------------------
Overcollateralization: The Group I certificates will benefit from
overcollateralization which is initially 0% and
increases to 2.0% of the original pool balance
through the allocation of excess spread. The Group
II certificates will benefit from
overcollateralization which is initially 0% and
increases to 2.5% of the original pool balance
through the allocation of excess spread.
Subordination: Classes A-1 through A-6 will benefit from 2.25% in
subordinate certificates, and classes A-7 and A-8
will benefit from 20.25% in subordinate
certificates.
Freddie Mac
Guarantee: The fixed rate (i.e., Group I) certificates will
benefit from a Freddie Mac guarantee.
O/C Step-Down: The required overcollateralization can also "step-
down" after the later of (i) 36 months and (ii)
when the Senior Enhancement Percentage is greater
than 8.5%, to the greater of:
-- The product of (i) two times the base
overcollateralization requirement (i.e., 4.0%
for the Group I pool and 5.0% for the Group II
pool) and (ii) the outstanding pool balance;
-- 0.50% of the original related pool balance
(i.e., the o/c floor);
Excess Spread: Current period losses will be covered by any excess
spread available in that period.
Crosscollateralization: Excess spread available on the Group I fixed-rate
portfolio will be made available to cover losses on
the Group II certificates, but not the reverse.
Subordinate IO: The certificates will include a Subordinate IO
strip off of the Group I and Group II pools which
are not offered hereby. The Group I pool
Subordinate IO pays a 7.5% coupon for the first 24
months based on its notional principal balance. The
Group II pool Subordinate IO pays a 3.0% coupon for
the first 24 months based on its notional principal
balance.
Available Funds Cap: All Certificates are subject to an available funds
cap. The cap, for both the Group I and Group II
pools, is the weighted average coupon for that
group less the approximately 0.50% Servicing Fee.
Shortfalls due to the available funds cap will be
carried forward on the adjustable rate certificates
ONLY.
Interest Carry Forward: Any interest due but not paid to the certificates
is carried forward and paid in future periods to
the extent interest funds are available. Any
Interest Carry Forward amount WILL earn interest at
the current certificate rate.
Basis Risk Carry Forward: Any interest due to class A-7 based on its coupon
formula but not paid due to the available funds cap
may be paid from amounts which would otherwise be
paid to the residual. While these amounts due can
be carried forward, they will not accrue interest.
Option and Auction Call: 10% mandatory auction call (10% of original
certificate balance) followed by a 5% servicer
clean-up call.
Coupon Step Up: Two months after the Auction Call Date, the spread
to LIBOR on the Class A-7 will double, while the
spread to LIBOR on the M-1A, M-2A, and B-1A will
increase by 50% to incent AMRESCO to call the
bonds. The coupon on the Class A-5 certificates
also will increase by 0.75%.
Tax Status: REMIC
ERISA Eligibility: The Class A-1 through A-8 certificates are ERISA
eligible; All other Certificate Classes are NOT
ERISA eligible.
SMMEA Eligibility: Only the Class A-7, A-8 and M-1A Certificates are
SMMEA eligible.
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
<PAGE>
Loss and Delinquency Experience of
AMRESCO Residential Mortgage Corporation Servicing Portfolio
------------------------------------------------------------
o ARMC's historical loss and delinquency performance for the home equity loan
portfolio is detailed in the following table.
<TABLE>
<CAPTION>
---------------------------------------------------------------------
As of July 31, 1998
---------------------------------------------------------------------
By Number of Percent By By Dollar of Percent By
Loans Number Loans Dollar
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Portfolio 22,203 N/A $ 2,012,177,435 N/A
Period of Delinquency(1)
31 - 60 Days 645 2.91% $ 55,566,021 2.76%
61 - 90 Days 317 1.43% $ 27,398,216 1.36%
91 Days or more 640 2.88% $ 51,810,181 2.57%
------ ---- --------------- -----
Total Delinquencies (not including 1,602 7.22% $ 134,774,418 6.70%
bankruptcies or reo's) ====== ==== =============== =====
Bankruptcies 245 1.10% $ 19,909,292 0.99%
REO(2) 216 0.97% $ 15,065,303 0.75%
Foreclosures(3) 507 2.28% $ 41,093,556 2.04%
Net Losses -- -- $ 26,305.00 0.001%
---------------------------------------------------------------------
</TABLE>
NOTES:
- ------
(1) The period of delinquency is based on the number of days payments are
contractually past due. The delinquency statistics for the period include
loans in foreclosure.
(2) REO Properties (i.e., "real estate owned" properties - properties relating
to mortgage foreclosed or for which deeds in lieu of foreclosure have been
accepted, and held by the Servicer pending disposition) percentages are
calculated using the number of loans, not the dollar amount.
(3) "Foreclosure Rate" is the number of mortgage loans or the dollar amount of
mortgage loans in foreclosure as a percentage of the total number of
mortgage loans or the dollar amount of mortgage loans, as the case may be,
as of the date indicated.
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
<PAGE>
AMRESCO 1998-3 Collateral Description
-------------------------------------
<TABLE>
<CAPTION>
Conforming Fixed Rate Home Equity Loans ARM Home Equity and Non-Conforming Fixed
Group I Rate Loans - Group II
--------------------------------------- ----------------------------------------
<S> <C> <C>
Aggregate Pool Balance: $170,456,319 $577,591,127
Number of Loans: 2,369 5,045
Average Outstanding Balance: $71,953 (min: $9,064 / max: $430,989) $114,488 (min: $10,363 / max: $597,096)
Total Original Balance: $170,872,528 $579,352,612
Average Original Balance: $72,129 $114,837
Lien Position: 97.51% firsts; 2.49% seconds 100% firsts
Prepayment Penalty: a) 24.13% No Penalty a) 27.00% No Penalty
b) 1.91% 0.5 to 1-year b) 8.67% 1-year
c) 3.03% 2-year c) 27.66% 2-year
d) 6.63% 3-year d) 15.92% 3-year
e) 64.27% 4-year e) 20.76% 4-year
f) 0.02% 6-year
WA Original Combined Loan to
Value Ratio: 74.14% (31.39% >80%, min: 12.95% / 78.75% (40.88% >80%, min: 18.75% /
max: 94.74%) max: 100.00%)
WA Junior Loan Ratio(1): 29.82% (min: 6.75% / max: 85.18%) NA
Loan Type: a) 97.34% Fully Amortizing a) 67.29% 2-year fixed/6-month ARM
b) 2.66% Balloon b) 15.53% 6-month ARM
c) 7.22% 3-year fixed/6-month ARM
d) 6.59% 5-year fixed/6-month ARM
e) 3.32% fixed
f) 0.02% 1-year fixed/6-month ARM
g) 0.02% 1-year ARM
WA Stated Original Term: 328 months 358 months
WA Stated Remaining Term: 327 months (min: 55 / max: 360) 355 months (min: 174 / max: 360)
WA Seasoning: 1 months 3 months
Interest Rate Index: N/A a) 96.66% 6-month LIBOR
b) 0.01% 1-year UST
c) 3.32% fixed rate
</TABLE>
NOTE: (1) EXCLUDES FIRST MORTGAGES. DEFINED AS RATIO OF ORIGINAL PRINCIPAL
BALANCE OF THE MORTGAGE LOAN TO THE SUM OF THE ORIGINAL PRINCIPAL BALANCE OF
LOAN AND PRINCIPAL BALANCE AT TIME OF ORIGINATION OF THE LOAN OF ANY SENIOR
LIENS.
- ---------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
<PAGE>
AMRESCO 1998-3 Collateral Description
-------------------------------------
(continued)
<TABLE>
<CAPTION>
Conforming Fixed Rate Home Equity Loans ARM Home Equity and Non-Conforming Fixed
Group I Rate Loans - Group II
--------------------------------------- ----------------------------------------
<S> <C> <C>
WA Gross Coupon: 10.035% (min: 6.500%/max: 16.500%) 9.838% (current, min: 5.625%/
max: 16.050%)
Latest Scheduled Maturity: September 1, 2028 September 1, 2028
Property Type: a) 79.95% single family a) 81.03% single family
b) 8.26% 2-4 family b) 8.32% 2-4 family
c) 5.95% PUD c) 6.30% PUD
d) 5.29% condominium d) 3.57% condominium
e) 0.56% manufactured housing e) 0.78% manufactured housing
Owner Occupancy: a) 87.97% owner occupied a) 90.62% owner occupied
b) 12.03% investor property b) 9.38 investor property
Geographic Distribution (=> 5%): CA (17.55%), HI (12.04%), FL (9.91%), CA (26.85%), IL (7.26%),
TX (9.02%), OH (5.53%) FL (6.05%), OH (5.00%)
% Cashout Refinancing: 61.98% 48.47%
% Full Doc: 75.30% 70.24%
WA Gross Margin (ARMS only): NA 6.235% (current, min: 2.500%/
max: 10.300%)
WA Initial Periodic Cap
(ARMS only): NA 2.006%
WA Periodic Cap (ARMS only): NA 1.113%
WA Months to Roll (ARMS only): NA 22 months
WA Floor: (ARMS only) NA 9.842%
WA Ceiling: (ARMS only) NA 16.540%
</TABLE>
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 2,369 records
Group 1 Balance: 170,456,319
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Remaining Principal Balance Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5,000.01 - 10,000.00 7 68,390.55 0.04 12.710 9,770 67.35 100.00 100.00 100.00
10,000.01 - 15,000.00 21 277,798.18 0.16 12.242 13,228 72.57 95.89 94.99 94.62
15,000.01 - 20,000.00 71 1,334,258.47 0.78 11.858 18,792 63.54 81.52 86.25 90.28
20,000.01 - 25,000.00 134 3,082,012.29 1.81 11.452 23,000 65.95 78.41 70.89 80.62
25,000.01 - 30,000.00 156 4,340,654.40 2.55 11.282 27,825 68.22 71.26 76.32 75.78
30,000.01 - 35,000.00 166 5,435,542.24 3.19 11.038 32,744 65.15 66.95 71.72 77.38
35,000.01 - 40,000.00 165 6,232,979.72 3.66 11.193 37,776 67.00 72.16 75.73 78.23
40,000.01 - 45,000.00 130 5,540,417.26 3.25 10.792 42,619 72.99 64.51 76.79 87.59
45,000.01 - 50,000.00 151 7,186,732.79 4.22 10.686 47,594 71.78 73.00 75.38 81.41
50,000.01 - 55,000.00 124 6,544,667.88 3.84 10.537 52,780 70.84 67.86 69.40 87.98
55,000.01 - 60,000.00 125 7,204,035.15 4.23 10.661 57,632 73.07 64.92 77.46 90.40
60,000.01 - 65,000.00 104 6,523,674.87 3.83 10.505 62,728 75.70 50.95 88.45 91.29
65,000.01 - 70,000.00 95 6,443,659.18 3.78 10.223 67,828 70.57 65.29 79.94 93.77
70,000.01 - 75,000.00 75 5,480,408.40 3.22 10.093 73,072 73.54 66.81 79.85 91.89
75,000.01 - 80,000.00 75 5,815,146.47 3.41 9.830 77,535 75.24 55.72 83.89 85.23
80,000.01 - 85,000.00 77 6,358,497.89 3.73 10.036 82,578 73.40 67.59 70.15 89.70
85,000.01 - 90,000.00 62 5,417,802.41 3.18 9.814 87,384 73.00 58.03 74.10 85.57
90,000.01 - 95,000.00 57 5,278,466.32 3.10 9.901 92,605 76.40 63.08 80.84 87.68
95,000.01 - 100,000.00 68 6,634,587.57 3.89 10.087 97,567 75.29 61.85 79.42 91.16
100,000.01 - 105,000.00 51 5,223,930.56 3.06 10.085 102,430 78.67 64.82 84.41 92.25
105,000.01 - 110,000.00 44 4,719,591.59 2.77 9.706 107,263 75.79 59.15 72.60 93.23
110,000.01 - 115,000.00 35 3,932,880.83 2.31 9.741 112,368 75.72 80.00 85.79 85.52
115,000.01 - 120,000.00 35 4,135,591.63 2.43 10.008 118,160 77.43 62.89 71.44 85.59
120,000.01 - 125,000.00 39 4,772,759.43 2.80 9.857 122,378 75.10 58.99 56.30 81.99
125,000.01 - 130,000.00 28 3,575,825.92 2.10 9.535 127,708 74.52 57.13 71.30 85.75
130,000.01 - 135,000.00 28 3,716,458.99 2.18 9.778 132,731 76.83 53.72 78.49 78.51
135,000.01 - 140,000.00 20 2,759,280.12 1.62 10.348 137,964 78.66 45.24 60.10 100.00
140,000.01 - 145,000.00 20 2,856,541.98 1.68 8.971 142,827 78.69 69.99 74.88 94.98
145,000.01 - 150,000.00 16 2,369,121.76 1.39 9.025 148,070 74.87 56.25 93.68 93.80
150,000.01 - 160,000.00 29 4,520,959.92 2.65 9.438 155,895 78.30 72.53 89.61 93.15
160,000.01 - 170,000.00 29 4,783,648.38 2.81 9.840 164,953 76.68 55.29 65.28 86.09
170,000.01 - 180,000.00 21 3,673,846.15 2.16 9.440 174,945 79.99 47.25 71.45 95.22
180,000.01 - 190,000.00 28 5,187,315.66 3.04 9.147 185,261 76.20 64.55 67.82 93.01
190,000.01 - 200,000.00 17 3,320,469.64 1.95 9.599 195,322 75.21 46.96 76.20 93.98
200,000.01 - 210,000.00 18 3,688,033.28 2.16 9.577 204,891 74.30 33.44 72.00 94.31
210,000.01 - 220,000.00 18 3,892,325.61 2.28 8.862 216,240 77.37 44.52 61.05 88.73
220,000.01 - 230,000.00 8 1,791,818.54 1.05 8.567 223,977 82.09 74.93 87.53 100.00
230,000.01 - 240,000.00 3 712,261.35 0.42 7.852 237,420 77.65 33.33 33.33 100.00
240,000.01 - 250,000.00 3 732,802.16 0.43 9.834 244,267 79.01 100.00 0.00 66.84
250,000.01 - 300,000.00 9 2,467,422.32 1.45 7.698 274,158 76.18 44.62 66.27 88.26
300,000.01 - 350,000.00 5 1,578,032.84 0.93 7.844 315,607 82.60 39.04 80.93 100.00
400,000.01 - 450,000.00 2 845,668.21 0.50 7.912 422,834 73.31 49.04 100.00 49.04
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
Min: 9,063.98
Max: 430,988.75
Average: 71,952.86
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 1 of 7
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 2,369 records
Group 1 Balance: 170,456,319
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Mortgage Rates Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7.000 and less 7 1,483,895.25 0.87 6.860 211,985 70.56 63.35 100.00 100.00
7.001 - 7.500 17 3,024,710.68 1.77 7.399 177,924 73.28 50.56 93.85 94.39
7.501 - 8.000 127 13,986,906.01 8.21 7.829 110,133 75.84 69.86 79.64 91.77
8.001 - 8.250 67 7,253,975.17 4.26 8.211 108,268 78.04 71.52 76.30 93.14
8.251 - 8.500 71 7,859,717.91 4.61 8.434 110,700 73.64 61.24 70.13 76.04
8.501 - 8.750 89 8,795,719.82 5.16 8.690 98,828 74.88 55.66 66.47 84.36
8.751 - 9.000 119 10,730,610.60 6.30 8.926 90,173 73.37 67.97 76.09 88.40
9.001 - 9.250 84 7,605,179.55 4.46 9.185 90,538 74.64 60.85 73.70 78.16
9.251 - 9.500 97 7,026,415.37 4.12 9.419 72,437 73.39 65.80 74.95 84.51
9.501 - 9.750 131 10,941,261.98 6.42 9.662 83,521 76.55 58.52 78.75 87.59
9.751 - 10.000 191 14,546,128.93 8.53 9.919 76,158 75.26 56.99 75.39 92.56
10.001 - 10.250 118 8,028,242.40 4.71 10.158 68,036 76.88 60.11 83.86 88.16
10.251 - 10.500 144 9,837,106.16 5.77 10.427 68,313 74.68 57.84 69.94 85.06
10.501 - 10.750 158 9,903,621.54 5.81 10.662 62,681 76.29 46.94 81.39 82.86
10.751 - 11.000 147 8,984,423.26 5.27 10.924 61,119 75.97 64.16 73.38 91.80
11.001 - 11.250 105 5,629,736.72 3.30 11.151 53,617 74.78 67.95 78.87 87.63
11.251 - 11.500 91 5,147,760.75 3.02 11.413 56,569 72.49 66.31 55.87 90.49
11.501 - 11.750 106 5,448,663.19 3.20 11.658 51,402 75.49 62.66 82.10 95.96
11.751 - 12.000 105 5,197,137.64 3.05 11.929 49,497 72.09 82.85 65.41 79.96
12.001 - 13.000 233 10,975,632.56 6.44 12.535 47,106 67.67 62.33 72.96 89.90
13.001 - 14.000 113 5,311,918.91 3.12 13.512 47,008 66.44 65.52 74.85 93.13
14.001 - 15.000 42 2,467,145.63 1.45 14.520 58,742 64.69 39.08 69.43 92.21
15.001 - 16.000 6 210,939.94 0.12 15.593 35,157 65.17 20.71 81.53 88.66
16.001 - 17.000 1 59,468.94 0.03 16.500 59,469 70.00 100.00 100.00 100.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
Min: 6.500
Max: 16.500
Weighted Average Coupon: 10.0350
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Seasoning Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0 1,614 119,412,565.38 70.05 9.825 73,985 75.60 59.01 76.90 87.81
1 - 6 718 48,869,700.07 28.67 10.476 68,064 70.70 69.10 71.23 88.22
7 - 12 36 2,137,548.71 1.25 11.639 59,376 71.29 66.37 78.54 91.43
13 - 18 1 36,504.75 0.02 12.950 36,505 55.00 0.00 100.00 100.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
Min: 0
Max: 18
Weighted Average: 0.88
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 2 of 7
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 2,369 records
Group 1 Balance: 170,456,319
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Months Remaining to Mortgage Principal Principal Average Current Original Cashout Full Owner
Scheduled Maturity Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 - 60 3 42,009.18 0.02 9.212 14,003 50.67 72.83 100.00 100.00
61 - 120 15 624,889.99 0.37 9.686 41,659 74.71 100.00 100.00 91.56
121 - 180 574 27,188,378.42 15.95 10.305 47,367 70.74 72.58 78.18 86.83
181 - 240 58 3,171,472.08 1.86 10.477 54,681 73.44 92.20 82.55 90.89
241 - 300 2 196,341.87 0.12 8.470 98,171 86.92 0.00 100.00 100.00
301 - 360 1,717 139,233,227.37 81.68 9.976 81,091 74.80 59.14 74.42 88.09
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
Min: 55
Max: 360
Weighted Average: 327.16
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Product Type Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fixed - 30 Year 1,717 139,233,227.37 81.68 9.976 81,091 74.80 59.14 74.42 88.09
Fixed - 15 Year 498 22,662,760.44 13.30 10.015 45,508 70.40 76.77 79.07 86.40
Balloon - 15/30 76 4,525,617.98 2.66 11.753 59,548 72.46 51.59 73.71 88.96
Fixed - 20 Year 58 3,171,472.08 1.86 10.477 54,681 73.44 92.20 82.55 90.89
Fixed - 10 Year 15 624,889.99 0.37 9.686 41,659 74.71 100.00 100.00 91.56
Fixed - 25 Year 2 196,341.87 0.12 8.470 98,171 86.92 0.00 100.00 100.00
Fixed - 5 Year 3 42,009.18 0.02 9.212 14,003 50.67 72.83 100.00 100.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Distribution of Loan Purpose Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Refinance - Cashout 1,562 105,651,975.97 61.98 10.007 67,639 72.39 100.00 74.58 87.75
Refinance - Rate Term 435 37,210,753.57 21.83 10.061 85,542 74.69 0.00 77.97 88.09
Purchase 372 27,593,589.37 16.19 10.107 74,176 80.06 0.00 74.46 88.65
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Distribution of Mortgage Principal Principal Average Current Original Cashout Full Owner
Occupancy Status Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Owner-Occupied 2,038 149,954,164.45 87.97 10.046 73,579 74.84 61.83 76.36 100.00
Non-Owner Occupied 331 20,502,154.46 12.03 9.953 61,940 68.95 63.11 67.58 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 3 of 7
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 2,369 records
Group 1 Balance: 170,456,319
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Distribution of Mortgage Principal Principal Average Current Original Cashout Full Owner
Property Types Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Single Family Residence 1,967 136,278,814.19 79.95 10.113 69,283 74.24 65.99 76.72 91.49
2-4 Family 158 14,078,422.66 8.26 9.739 89,104 71.64 52.70 67.87 56.83
PUD 113 10,136,334.24 5.95 9.906 89,702 76.84 32.17 74.93 97.17
Condo 112 9,014,818.46 5.29 9.448 80,489 73.69 46.62 65.49 72.64
Manufactured Housing 19 947,929.36 0.56 10.162 49,891 71.98 88.97 78.73 92.12
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Loan Documentation Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Full Documentation 1,806 128,358,040.88 75.30 9.992 71,073 76.01 61.39 100.00 89.20
Stated Income 478 34,456,725.09 20.21 10.196 72,085 68.07 63.66 0.00 85.22
Limited 85 7,641,552.94 4.48 10.031 89,901 70.01 64.40 0.00 79.70
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Lien Position Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1st Lien 2,220 166,214,532.61 97.51 9.991 74,871 74.12 61.21 75.11 87.71
2nd Lien 149 4,241,786.30 2.49 11.741 28,468 74.61 92.28 82.83 98.13
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Amresco Credit Grade (PAG) Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 600 54,437,876.93 31.94 8.954 90,730 78.24 59.57 76.88 82.67
2 298 23,747,724.63 13.93 9.652 79,690 79.71 49.78 77.99 87.78
3 631 44,674,909.76 26.21 9.960 70,800 73.32 68.67 72.20 92.00
4 364 19,580,073.63 11.49 11.117 53,791 70.97 62.46 78.58 90.46
5 476 28,015,733.96 16.44 11.822 58,857 64.94 66.02 72.61 90.26
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
Wgt Avg: 2.67
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Prepayment Penalty Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0.5 Year 1 73,867.73 0.04 12.650 73,868 80.00 0.00 100.00 100.00
1 Year 44 3,190,008.81 1.87 12.284 72,500 65.94 60.39 72.12 90.18
2 Years 66 5,170,220.92 3.03 10.465 78,337 75.04 45.69 79.92 91.65
3 Years 169 11,306,280.82 6.63 10.603 66,901 72.41 68.60 80.03 85.35
4 Years 1,383 109,556,085.85 64.27 9.638 79,216 74.81 58.64 74.59 86.91
6 Years 1 27,623.30 0.02 13.500 27,623 67.47 100.00 100.00 100.00
No Prepayment Penalty 705 41,132,231.48 24.13 10.702 58,344 73.32 71.31 75.51 90.85
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 4 of 7
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 2,369 records
Group 1 Balance: 170,456,319
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Geographical Distribution Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
California 325 29,920,082.79 17.55 9.513 92,062 69.95 65.61 68.36 84.37
Hawaii 130 20,530,233.17 12.04 8.581 157,925 73.80 51.60 66.92 83.87
Florida 238 16,892,706.61 9.91 10.124 70,978 77.79 45.17 73.62 91.94
Texas 260 15,374,897.25 9.02 10.628 59,134 73.93 47.37 79.44 90.12
Ohio 162 9,421,923.47 5.53 10.261 58,160 75.92 71.54 79.36 85.07
Pennsylvania 135 8,346,038.60 4.90 10.157 61,823 76.76 69.45 73.79 89.92
Maryland 113 8,083,126.12 4.74 9.984 71,532 79.03 65.59 90.03 91.67
Georgia 64 4,712,283.31 2.76 10.301 73,629 76.47 70.25 82.04 98.75
Michigan 64 3,597,711.28 2.11 10.686 56,214 76.19 75.05 88.83 90.80
North Carolina 63 3,543,806.03 2.08 11.583 56,251 71.13 80.24 64.18 90.78
Arkansas 75 3,525,076.21 2.07 11.059 47,001 77.83 69.53 83.38 94.82
Illinois 54 3,109,841.34 1.82 10.984 57,590 71.54 80.49 70.80 85.09
Oregon 38 3,082,570.81 1.81 9.947 81,120 72.70 76.14 69.52 84.90
Indiana 64 2,923,850.22 1.72 10.352 45,685 73.34 82.01 72.55 85.06
Massachusetts 28 2,615,274.27 1.53 10.071 93,403 73.57 53.65 74.78 64.41
Tennessee 49 2,540,087.80 1.49 10.726 51,839 78.85 62.20 76.59 91.76
Missouri 48 2,266,865.50 1.33 10.885 47,226 75.12 67.54 87.75 94.01
Colorado 30 2,246,466.35 1.32 9.897 74,882 70.73 62.23 81.42 86.17
Oklahoma 44 2,134,809.23 1.25 10.409 48,518 74.77 68.62 77.61 86.07
Utah 29 2,101,925.90 1.23 9.534 72,480 73.34 78.34 80.83 97.15
New York 23 2,069,001.73 1.21 12.215 89,957 66.20 68.55 82.91 90.15
Virginia 27 1,973,874.44 1.16 10.258 73,106 75.64 73.47 94.66 91.06
Wisconsin 37 1,961,017.67 1.15 10.712 53,000 76.21 74.86 77.22 87.46
Connecticut 20 1,866,347.09 1.09 11.220 93,317 70.63 49.48 66.17 91.10
Louisiana 29 1,749,045.87 1.03 10.788 60,312 69.78 63.28 68.83 84.03
Nevada 17 1,744,550.48 1.02 9.394 102,621 77.76 66.05 86.56 91.06
Mississippi 39 1,678,119.55 0.98 11.264 43,029 76.19 47.36 80.65 100.00
Arizona 33 1,613,104.23 0.95 9.698 48,882 76.23 63.48 90.73 88.33
Washington 16 1,534,058.75 0.90 9.384 95,879 73.69 60.54 90.63 79.01
New Jersey 13 1,085,159.18 0.64 11.106 83,474 76.56 48.50 77.98 80.49
Kentucky 13 879,796.38 0.52 10.477 67,677 71.48 65.42 71.07 100.00
District of Columbia 9 778,490.23 0.46 9.605 86,499 78.94 81.74 86.11 87.60
Minnesota 16 710,233.15 0.42 11.375 44,390 67.90 70.19 81.86 100.00
Idaho 6 640,264.73 0.38 9.557 106,711 78.73 38.80 57.12 69.81
South Carolina 16 595,552.21 0.35 11.879 37,222 65.57 73.89 77.74 89.99
New Mexico 9 552,801.55 0.32 9.562 61,422 73.08 70.93 90.40 82.61
New Hampshire 6 327,971.99 0.19 10.753 54,662 72.01 37.59 100.00 88.59
Wyoming 4 325,902.55 0.19 9.894 81,476 63.29 36.45 56.07 100.00
Rhode Island 2 280,998.03 0.16 9.942 140,499 81.50 100.00 0.00 100.00
Maine 3 224,391.55 0.13 10.129 74,797 82.96 100.00 100.00 100.00
Kansas 5 222,084.06 0.13 10.489 44,417 76.10 84.17 100.00 100.00
Montana 2 175,100.92 0.10 9.688 87,550 77.87 100.00 57.38 100.00
Iowa 4 153,844.07 0.09 11.692 38,461 72.74 83.77 67.34 100.00
West Virginia 3 133,525.04 0.08 10.515 44,508 79.12 47.53 81.16 100.00
Nebraska 2 86,202.93 0.05 9.227 43,101 62.72 100.00 100.00 100.00
Delaware 1 68,525.15 0.04 10.950 68,525 70.00 100.00 100.00 0.00
Vermont 1 56,779.12 0.03 12.990 56,779 51.82 100.00 100.00 100.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 5 of 7
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 2,369 records
Group 1 Balance: 170,456,319
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Calendar Year of Origination Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 1 36,504.75 0.02 12.950 36,505 55.00 0.00 100.00 100.00
1997 97 5,274,886.78 3.09 11.535 54,380 70.43 70.66 64.28 82.05
1998 2,271 165,144,927.38 96.88 9.986 72,719 74.26 61.72 75.65 88.16
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Calendar Year of Maturity Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2003 3 42,009.18 0.02 9.212 14,003 50.67 72.83 100.00 100.00
2008 15 624,889.99 0.37 9.686 41,659 74.71 100.00 100.00 91.56
2012 36 1,814,439.94 1.06 11.836 50,401 71.93 61.16 76.55 89.85
2013 538 25,373,938.48 14.89 10.195 47,163 70.66 73.40 78.30 86.61
2018 58 3,171,472.08 1.86 10.477 54,681 73.44 92.20 82.55 90.89
2023 2 196,341.87 0.12 8.470 98,171 86.92 0.00 100.00 100.00
2026 1 36,504.75 0.02 12.950 36,505 55.00 0.00 100.00 100.00
2027 16 1,265,153.32 0.74 11.541 79,072 69.18 61.65 61.19 85.61
2028 1,700 137,931,569.30 80.92 9.961 81,136 74.86 59.13 74.54 88.11
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
Latest: 2028-09-01
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Combined Original Mortgage Principal Principal Average Current Original Cashout Full Owner
Loan-to-Value Ratios Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10.01 - 20.00 10 359,439.45 0.21 10.075 35,944 16.38 100.00 53.90 100.00
20.01 - 30.00 31 1,231,379.51 0.72 9.524 39,722 25.57 84.68 67.16 89.53
30.01 - 40.00 52 2,718,214.85 1.59 10.175 52,273 35.96 79.35 60.81 95.72
40.01 - 50.00 102 6,065,259.60 3.56 9.715 59,463 45.39 76.08 64.68 85.71
50.01 - 60.00 192 10,165,185.72 5.96 10.512 52,944 56.29 81.11 53.74 78.15
60.01 - 70.00 569 36,239,435.37 21.26 10.807 63,690 66.71 68.61 64.44 80.14
70.01 - 75.00 340 25,987,462.18 15.25 9.937 76,434 74.05 61.32 68.19 76.42
75.01 - 80.00 470 34,182,149.55 20.05 9.976 72,728 78.89 58.87 78.10 90.63
80.01 - 85.00 300 25,707,946.26 15.08 9.606 85,693 82.81 53.74 81.60 97.65
85.01 - 90.00 191 17,625,608.34 10.34 9.578 92,281 88.18 53.62 98.57 100.00
90.01 - 95.00 112 10,174,238.08 5.97 9.346 90,841 91.65 49.61 100.00 99.65
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
Min: 12.95
Max: 94.74
Weighted Average: 74.14
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 6 of 7
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 2,369 records
Group 1 Balance: 170,456,319
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Junior Loan Ratios (1) Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5.001 - 10.000 4 47,794.60 1.13 14.324 11,949 75.96 100.00 100.00 100.00
10.001 - 15.000 17 304,503.67 7.18 12.581 17,912 79.31 100.00 87.86 100.00
15.001 - 20.000 28 626,371.37 14.77 11.876 22,370 81.29 87.73 100.00 92.85
20.001 - 25.000 36 991,103.58 23.37 11.963 27,531 78.90 100.00 84.99 100.00
25.001 - 30.000 19 664,028.13 15.65 11.449 34,949 75.98 85.85 77.51 100.00
30.001 - 35.000 17 507,316.62 11.96 11.720 29,842 68.19 100.00 62.32 100.00
35.001 - 40.000 9 211,659.68 4.99 11.683 23,518 74.62 88.21 90.70 100.00
40.001 - 45.000 4 203,523.89 4.80 9.920 50,881 73.71 78.61 100.00 100.00
45.001 - 50.000 7 337,895.90 7.97 11.363 48,271 59.20 84.08 68.82 100.00
50.001 - 55.000 3 143,151.66 3.37 12.134 47,717 68.88 100.00 75.74 75.74
55.001 - 60.000 3 143,063.13 3.37 11.432 47,688 71.33 76.02 100.00 100.00
60.001 - 65.000 1 18,962.79 0.45 12.230 18,963 56.96 100.00 100.00 100.00
85.001 - 90.000 1 42,411.28 1.00 11.950 42,411 60.85 100.00 0.00 100.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 149 4,241,786.30 100.00 11.741 28,468 74.61 92.28 82.83 98.13
- ------------------------------------------------------------------------------------------------------------------------------------
Min: 6.750
Max: 85.175
Weighted Average: 29.820
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Excludes first liens
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Originator Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NEW CENTURY 447 29,576,425.55 17.35 10.214 66,167 69.24 75.28 68.89 89.09
AMRESCO 318 23,547,168.92 13.81 9.741 74,048 77.45 74.21 90.12 93.57
HOME LOAN MORTGAGE 97 7,337,094.65 4.30 9.110 75,640 79.62 75.13 94.84 91.70
MORTGAGES OF AMERICA 19 3,706,367.77 2.17 8.296 195,072 75.63 48.38 61.97 93.13
PAN AMERICAN 59 3,684,068.08 2.16 10.177 62,442 69.84 72.89 73.41 83.04
Other 1,429 102,605,193.94 60.19 10.175 71,802 74.49 54.50 72.90 86.09
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,369 170,456,318.91 100.00 10.035 71,953 74.14 61.98 75.30 87.97
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 7 of 7
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 5,045 records
Group 2 Balance: 577,591,127
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Remaining Principal Balance Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10,000.01 - 15,000.00 3 39,642.64 0.01 10.420 13,214 68.53 26.14 73.86 36.13
15,000.01 - 20,000.00 14 262,116.92 0.05 11.187 18,723 61.80 78.13 56.88 86.38
20,000.01 - 25,000.00 62 1,420,536.86 0.25 11.050 22,912 66.37 54.88 64.45 67.95
25,000.01 - 30,000.00 84 2,312,469.73 0.40 10.966 27,529 64.85 60.17 57.30 63.48
30,000.01 - 35,000.00 127 4,158,832.09 0.72 10.939 32,747 68.32 50.35 69.71 80.28
35,000.01 - 40,000.00 147 5,567,313.85 0.96 10.769 37,873 70.11 55.94 73.66 71.53
40,000.01 - 45,000.00 156 6,698,988.70 1.16 10.762 42,942 72.52 50.29 63.23 74.41
45,000.01 - 50,000.00 204 9,794,181.62 1.70 10.681 48,011 72.52 46.88 74.20 82.92
50,000.01 - 55,000.00 201 10,578,536.57 1.83 10.377 52,630 75.92 45.85 72.32 88.07
55,000.01 - 60,000.00 231 13,307,267.81 2.30 10.344 57,607 75.78 48.63 74.46 86.63
60,000.01 - 65,000.00 191 11,996,048.68 2.08 10.313 62,807 77.27 49.38 71.14 85.79
65,000.01 - 70,000.00 226 15,345,972.88 2.66 10.154 67,903 76.81 51.03 74.32 88.89
70,000.01 - 75,000.00 211 15,278,060.67 2.65 10.160 72,408 78.36 47.98 75.82 92.42
75,000.01 - 80,000.00 182 14,130,295.71 2.45 10.105 77,639 77.84 51.61 74.76 90.10
80,000.01 - 85,000.00 199 16,435,149.15 2.85 10.162 82,589 77.39 51.76 71.68 91.91
85,000.01 - 90,000.00 213 18,696,767.66 3.24 10.136 87,778 77.95 49.29 74.14 90.17
90,000.01 - 95,000.00 136 12,562,051.70 2.17 10.053 92,368 77.58 49.96 72.10 87.61
95,000.01 - 100,000.00 186 18,154,288.47 3.14 9.839 97,604 78.27 55.43 72.01 92.50
100,000.01 - 105,000.00 155 15,913,197.22 2.76 10.159 102,666 79.38 43.29 70.95 91.59
105,000.01 - 110,000.00 131 14,058,291.30 2.43 9.963 107,315 81.00 47.99 71.77 92.35
110,000.01 - 115,000.00 148 16,685,889.26 2.89 9.847 112,742 80.13 41.87 77.03 90.55
115,000.01 - 120,000.00 141 16,572,939.14 2.87 9.846 117,539 79.55 45.30 69.49 87.23
120,000.01 - 125,000.00 103 12,614,298.56 2.18 9.966 122,469 81.07 41.82 71.73 96.08
125,000.01 - 130,000.00 112 14,265,483.12 2.47 9.953 127,370 81.24 39.27 74.13 90.23
130,000.01 - 135,000.00 113 14,992,790.09 2.60 9.914 132,680 80.24 46.02 71.68 89.40
135,000.01 - 140,000.00 96 13,225,613.87 2.29 9.620 137,767 80.12 51.08 65.60 90.54
140,000.01 - 145,000.00 82 11,714,698.79 2.03 9.700 142,862 81.55 46.34 74.44 92.72
145,000.01 - 150,000.00 66 9,721,678.74 1.68 9.751 147,298 82.91 40.94 69.67 96.95
150,000.01 - 160,000.00 122 18,894,341.42 3.27 9.700 154,872 82.27 39.36 73.84 93.35
160,000.01 - 170,000.00 118 19,448,266.22 3.37 9.930 164,816 80.14 45.07 66.08 93.18
170,000.01 - 180,000.00 113 19,774,324.70 3.42 9.704 174,994 78.86 46.96 61.95 92.91
180,000.01 - 190,000.00 91 16,869,330.82 2.92 9.487 185,377 79.89 48.37 68.10 92.30
190,000.01 - 200,000.00 82 16,039,352.57 2.78 9.631 195,602 80.18 51.37 68.34 95.07
200,000.01 - 210,000.00 61 12,501,211.17 2.16 9.485 204,938 80.26 42.62 67.06 93.40
210,000.01 - 220,000.00 50 10,752,055.20 1.86 9.455 215,041 82.44 45.93 77.98 89.95
220,000.01 - 230,000.00 51 11,474,979.23 1.99 9.467 225,000 81.32 52.86 62.75 100.00
230,000.01 - 240,000.00 51 11,996,362.39 2.08 9.907 235,223 78.65 53.07 64.60 90.05
240,000.01 - 250,000.00 35 8,601,611.54 1.49 9.817 245,760 80.04 39.99 62.78 97.11
250,000.01 - 300,000.00 173 47,063,919.99 8.15 9.384 272,046 79.67 49.20 71.46 86.89
300,000.01 - 350,000.00 75 24,260,345.10 4.20 9.541 323,471 78.02 55.16 59.79 96.07
350,000.01 - 400,000.00 46 17,102,655.93 2.96 9.047 371,797 80.21 56.77 76.08 93.56
400,000.01 - 450,000.00 28 12,066,193.05 2.09 9.737 430,935 76.34 57.23 61.50 96.32
450,000.01 - 500,000.00 24 11,421,054.85 1.98 8.791 475,877 73.04 54.36 66.82 83.67
Greater than 500,000.00 5 2,821,720.79 0.49 9.682 564,344 78.25 42.32 78.84 100.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
Min: 10,363.40
Max: 597,096.10
Average: 114,487.83
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 1 of 11
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 5,045 records
Group 2 Balance: 577,591,127
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Mortgage Rates Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7.000 and less 31 4,739,804.98 0.82 6.795 152,897 70.26 83.78 64.04 73.82
7.001 - 7.500 49 8,535,105.53 1.48 7.422 174,186 73.33 65.79 53.75 94.29
7.501 - 8.000 152 25,288,685.64 4.38 7.843 166,373 77.90 53.14 80.76 89.31
8.001 - 8.250 87 13,422,012.56 2.32 8.191 154,276 76.47 58.98 60.76 90.15
8.251 - 8.500 211 31,614,699.10 5.47 8.443 149,833 76.25 58.85 68.97 84.09
8.501 - 8.750 195 26,994,979.93 4.67 8.687 138,436 78.56 46.80 69.86 89.18
8.751 - 9.000 366 50,005,013.20 8.66 8.943 136,626 80.03 56.29 71.16 91.32
9.001 - 9.250 246 32,496,291.92 5.63 9.189 132,099 79.69 51.87 72.93 86.99
9.251 - 9.500 410 52,495,993.57 9.09 9.434 128,039 80.93 46.60 71.42 92.47
9.501 - 9.750 359 42,628,771.57 7.38 9.681 118,743 80.37 52.61 75.32 90.77
9.751 - 10.000 561 65,766,985.33 11.39 9.927 117,232 81.05 38.15 71.23 91.21
10.001 - 10.250 316 34,596,648.98 5.99 10.182 109,483 81.35 42.77 74.41 90.08
10.251 - 10.500 382 39,832,982.92 6.90 10.428 104,275 80.59 45.66 76.16 91.43
10.501 - 10.750 360 34,385,860.26 5.95 10.688 95,516 78.75 42.56 66.00 90.51
10.751 - 11.000 379 36,141,224.94 6.26 10.935 95,359 77.43 47.46 63.53 93.51
11.001 - 11.250 194 15,540,241.45 2.69 11.174 80,104 79.85 38.13 70.66 91.56
11.251 - 11.500 182 15,302,751.96 2.65 11.431 84,081 77.32 51.31 64.48 91.71
11.501 - 11.750 144 12,192,214.19 2.11 11.673 84,668 76.58 51.50 60.94 91.10
11.751 - 12.000 122 11,477,621.92 1.99 11.929 94,079 75.73 43.20 60.70 94.53
12.001 - 13.000 201 16,727,113.81 2.90 12.509 83,219 68.86 48.44 65.12 94.04
13.001 - 14.000 63 5,024,126.02 0.87 13.518 79,748 67.01 49.17 65.15 89.81
14.001 - 15.000 31 1,972,044.43 0.34 14.552 63,614 65.70 22.67 77.39 100.00
15.001 - 16.000 3 362,374.51 0.06 15.411 120,792 69.68 0.00 100.00 100.00
16.001 - 17.000 1 47,578.05 0.01 16.050 47,578 70.00 0.00 100.00 100.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
Min: 5.625
Max: 16.050
Weighted Average Coupon: 9.838
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Seasoning Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0 1,195 137,487,088.32 23.80 9.789 115,052 79.48 40.99 75.80 92.95
1 - 6 3,556 408,504,919.88 70.73 9.798 114,878 78.74 51.24 68.97 90.38
7 - 12 289 31,289,033.95 5.42 10.561 108,267 75.74 45.23 62.31 83.37
13 - 18 4 221,081.59 0.04 10.763 55,270 80.05 29.24 100.00 100.00
19 - 24 1 89,003.03 0.02 11.625 89,003 70.31 100.00 0.00 100.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
Min: 0
Max: 22
Weighted Average: 3.00
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 2 of 11
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 5,045 records
Group 2 Balance: 577,591,127
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Months Remaining to Mortgage Principal Principal Average Current Original Cashout Full Owner
Scheduled Maturity Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
121 - 180 44 4,733,017.04 0.82 9.335 107,569 76.71 63.44 64.83 79.64
181 - 240 3 380,608.12 0.07 9.010 126,869 86.66 81.23 100.00 100.00
241 - 300 4 397,727.10 0.07 10.381 99,432 80.91 44.57 100.00 100.00
301 - 360 4,994 572,079,774.51 99.05 9.842 114,553 78.76 48.33 70.24 90.70
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
Min: 174
Max: 360
Weighted Average: 355.40
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Product Type (1) Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ARM - 2 Year/6 Month 3,567 388,679,950.35 67.29 10.027 108,966 79.02 46.25 71.73 92.08
ARM - 6 Month 741 89,705,717.87 15.53 9.464 121,060 77.99 51.09 62.13 86.36
ARM - 3 Year/6 Month 377 41,718,906.38 7.22 10.028 110,660 78.28 47.06 72.57 90.67
ARM - 5 Year/6 Month 298 38,082,459.85 6.59 8.949 127,793 79.24 63.02 71.62 88.84
Fixed - 30 Year 52 16,924,309.26 2.93 9.063 325,467 76.62 55.28 67.80 85.81
Fixed - 15 Year 6 2,020,691.14 0.35 9.567 336,782 77.31 50.83 82.77 68.81
Fixed - 20 Year 1 253,392.67 0.04 8.450 253,393 90.00 100.00 100.00 100.00
ARM - 1 Year/6 Month 1 104,804.14 0.02 9.350 104,804 89.24 0.00 100.00 100.00
ARM - 1 Year 2 100,895.11 0.02 10.359 50,448 72.31 100.00 74.36 100.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
(1) ARM Product Type is defined by its Initial Fixed Rate Period/Standard
Subsequent Reset Period.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Distribution of Loan Purpose Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Refinance - Cashout 2,451 279,970,522.42 48.47 9.726 114,227 76.62 100.00 66.53 88.62
Purchase 1,521 166,430,990.64 28.81 9.884 109,422 82.49 0.00 73.98 92.39
Refinance - Rate Term 1,073 131,189,613.71 22.71 10.017 122,264 78.55 0.00 73.39 92.64
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Distribution of Mortgage Principal Principal Average Current Original Cashout Full Owner
Occupancy Status Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Owner-Occupied 4,456 523,406,293.51 90.62 9.858 117,461 79.42 47.40 71.31 100.00
Non-Owner Occupied 589 54,184,833.26 9.38 9.641 91,995 72.32 58.81 59.84 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 3 of 11
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 5,045 records
Group 2 Balance: 577,591,127
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Distribution of Mortgage Principal Principal Average Current Original Cashout Full Owner
Property Types Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Single Family Residence 4,119 468,000,228.65 81.03 9.839 113,620 78.91 50.58 71.04 93.82
2-4 Family 417 48,059,590.34 8.32 9.922 115,251 75.96 45.85 66.26 60.27
PUD 246 36,377,219.14 6.30 9.697 147,875 81.26 31.09 67.29 94.31
Condo 201 20,644,729.63 3.57 9.764 102,710 77.88 35.97 66.01 80.35
Manufactured Housing 62 4,509,359.01 0.78 10.287 72,732 75.77 54.88 71.77 99.20
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Loan Documentation Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Full Documentation 3,582 405,674,113.62 70.24 9.813 113,254 81.19 45.92 100.00 92.01
Stated Income 1,220 141,114,594.23 24.43 9.906 115,668 72.19 54.42 0.00 88.37
Limited 243 30,802,418.92 5.33 9.849 126,759 76.76 54.92 0.00 82.62
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Lien Position Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1st Lien 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Amersco Credit Grade (PAG) Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 581 78,258,924.43 13.55 9.349 134,697 84.37 38.73 76.92 91.96
2 2,369 295,642,478.47 51.19 9.461 124,796 80.46 51.08 68.02 87.42
3 1,072 116,545,161.14 20.18 10.071 108,718 77.94 45.87 74.63 94.04
4 377 34,858,834.34 6.04 10.684 92,464 72.97 50.96 75.92 97.79
5 646 52,285,728.39 9.05 11.617 80,938 66.34 52.45 59.17 94.29
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
Wgt Avg: 2.46
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Prepayment Penalty Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year 381 50,089,590.60 8.67 9.950 131,469 77.44 52.47 64.61 89.95
2 Years 1,285 159,735,723.51 27.66 9.796 124,308 79.46 44.11 70.78 92.98
3 Years 837 91,940,049.80 15.92 9.839 109,845 79.33 48.92 73.37 90.56
4 Years 1,041 119,881,491.51 20.76 9.335 115,160 79.39 52.49 73.12 88.29
No Prepayment Penalty 1,501 155,944,271.35 27.00 0.230 103,894 77.61 48.30 67.42 90.25
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 4 of 11
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 5,045 records
Group 2 Balance: 577,591,127
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Geographical Distribution Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
California 915 155,110,034.03 26.85 9.251 169,519 79.17 49.92 72.21 88.56
Illinois 410 41,958,614.03 7.26 10.238 102,338 77.86 57.18 66.61 92.67
Florida 361 34,958,886.24 6.05 10.029 96,839 80.36 29.77 69.98 92.28
Ohio 356 28,868,969.12 5.00 10.143 81,093 79.39 54.88 70.71 90.02
Washington 210 25,932,196.79 4.49 9.855 123,487 78.11 52.89 69.53 94.73
Texas 222 22,604,987.47 3.91 9.995 101,824 81.33 20.93 71.79 92.88
Utah 156 20,316,316.27 3.52 9.525 130,233 80.07 57.31 77.46 97.51
Colorado 182 19,790,938.07 3.43 9.642 108,741 79.79 57.93 70.02 91.40
Oregon 151 19,334,248.69 3.35 9.570 128,041 79.66 47.87 70.52 87.11
Massachusetts 128 16,196,678.94 2.80 10.545 126,537 74.76 56.58 57.36 88.71
Arizona 150 15,851,876.70 2.74 9.507 105,679 79.78 49.71 66.65 89.06
New Jersey 113 15,272,219.11 2.64 10.509 135,152 77.35 37.07 61.27 90.24
Hawaii 52 13,728,193.73 2.38 8.836 264,004 75.80 45.22 67.64 77.39
Maryland 99 11,887,918.58 2.06 10.273 120,080 79.46 48.55 74.30 97.80
Michigan 135 10,822,091.50 1.87 10.663 80,164 76.62 56.77 75.05 95.51
Pennsylvania 131 10,783,508.43 1.87 10.384 82,317 78.12 51.24 71.24 90.56
Missouri 132 9,837,235.73 1.70 10.257 74,525 79.00 45.28 69.72 92.71
Minnesota 89 9,338,058.92 1.62 10.215 104,922 76.82 49.26 65.75 95.16
North Carolina 117 9,072,628.86 1.57 10.720 77,544 79.38 50.96 81.07 95.40
Nevada 73 8,761,581.53 1.52 9.298 120,022 76.96 50.43 56.17 85.32
Indiana 114 8,057,774.86 1.40 10.062 70,682 80.26 53.65 85.10 93.28
Connecticut 50 7,225,099.79 1.25 10.624 144,502 74.39 40.01 62.28 89.79
Wisconsin 109 7,048,154.76 1.22 10.919 64,662 77.06 40.30 72.68 91.89
Georgia 67 6,878,195.12 1.19 10.266 102,660 81.52 46.78 68.12 88.59
New York 55 6,768,712.60 1.17 11.030 123,068 73.48 44.56 62.54 93.98
New Mexico 49 5,579,209.82 0.97 9.454 113,861 80.04 46.24 81.13 81.02
Tennessee 50 4,294,218.64 0.74 9.748 85,884 82.25 53.68 85.72 98.86
Virginia 29 3,299,044.69 0.57 10.365 113,760 80.89 43.53 72.95 95.54
New Hampshire 35 3,112,160.61 0.54 10.428 88,919 74.31 64.77 63.24 83.98
Rhode Island 30 2,612,821.80 0.45 10.695 87,094 78.04 42.28 62.62 85.06
Kentucky 29 2,265,656.78 0.39 9.945 78,126 80.19 56.10 74.74 90.22
Idaho 21 2,219,165.51 0.38 9.541 105,675 79.35 57.84 66.94 100.00
South Carolina 25 1,974,591.95 0.34 10.765 78,984 77.87 27.19 66.60 97.55
Louisiana 22 1,896,557.27 0.33 10.112 86,207 81.91 49.17 98.80 77.06
Oklahoma 22 1,809,720.76 0.31 9.984 82,260 79.39 40.29 45.24 99.09
Arkansas 21 1,754,775.88 0.30 10.508 83,561 79.50 54.94 71.60 95.43
District of Columbia 14 1,645,687.92 0.28 9.959 117,549 75.28 62.69 63.43 88.91
Mississippi 21 1,436,049.05 0.25 10.009 68,383 79.62 53.36 86.56 89.38
Montana 16 1,313,688.26 0.23 9.848 82,106 77.52 37.61 50.93 100.00
Kansas 18 1,247,861.93 0.22 10.214 69,326 82.50 27.38 79.29 100.00
Iowa 21 1,094,411.49 0.19 10.758 52,115 75.25 63.77 77.23 96.61
Alaska 7 792,631.41 0.14 9.990 113,233 73.16 51.58 50.42 91.21
Maine 7 719,719.22 0.12 11.147 102,817 61.65 100.00 22.87 66.76
Delaware 7 584,174.82 0.10 10.041 83,454 74.92 18.24 55.83 79.86
Wyoming 5 458,408.26 0.08 9.691 91,682 70.00 85.38 70.01 58.77
West Virginia 8 360,972.10 0.06 10.037 45,122 79.36 72.81 64.74 82.55
Nebraska 6 259,812.76 0.04 12.117 43,302 76.67 70.94 74.13 88.50
South Dakota 2 191,081.26 0.03 10.130 95,541 83.42 0.00 100.00 34.19
Vermont 2 190,422.90 0.03 8.918 95,211 70.36 58.18 100.00 41.82
North Dakota 1 73,161.81 0.01 11.000 73,162 90.00 100.00 100.00 100.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 5 of 11
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 5,045 records
Group 2 Balance: 577,591,127
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Calendar Year of Origination Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1988 1 126,793.23 0.02 10.450 126,793 77.91 0.00 100.00 100.00
1996 1 89,003.03 0.02 11.625 89,003 70.31 100.00 0.00 100.00
1997 1,592 174,069,824.81 30.14 9.887 109,340 77.54 54.26 67.96 88.51
1998 3,451 403,305,505.70 69.83 9.816 116,866 79.28 45.98 71.22 91.52
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Calendar Year of Maturity Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2012 2 74,781.89 0.01 13.385 37,391 65.00 100.00 51.26 100.00
2013 42 4,658,235.15 0.81 9.270 110,910 76.90 62.85 65.05 79.31
2018 3 380,608.12 0.07 9.010 126,869 86.66 81.23 100.00 100.00
2022 2 220,472.53 0.04 10.666 110,236 76.10 0.00 100.00 100.00
2023 2 177,254.57 0.03 10.027 88,627 86.89 100.00 100.00 100.00
2026 1 89,003.03 0.02 11.625 89,003 70.31 100.00 0.00 100.00
2027 796 79,277,581.42 13.73 10.408 99,595 77.09 48.88 64.79 88.99
2028 4,197 492,713,190.06 85.30 9.751 117,397 79.03 48.23 71.13 90.97
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
Latest: 2028-09-01
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Original Mortgage Principal Principal Average Current Original Cashout Full Owner
Loan-to-Value Ratios Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10.01 - 20.00 4 294,263.27 0.05 9.274 73,566 19.35 54.15 26.16 72.01
20.01 - 30.00 19 852,792.77 0.15 9.733 44,884 25.92 90.70 59.05 92.13
30.01 - 40.00 37 2,504,974.62 0.43 9.123 67,702 36.41 86.56 46.99 66.45
40.01 - 50.00 80 5,938,495.19 1.03 9.857 74,231 46.56 69.06 34.59 89.46
50.01 - 60.00 224 19,659,950.15 3.40 10.133 87,768 57.16 64.61 45.81 81.01
60.01 - 70.00 845 83,504,955.58 14.46 10.418 98,822 67.04 60.95 44.33 83.14
70.01 - 80.00 1,975 228,704,823.99 39.60 9.646 115,800 77.70 52.97 61.68 85.69
80.01 - 90.00 1,656 210,439,921.28 36.43 9.825 127,077 86.74 38.93 89.93 99.04
90.01 - 100.00 205 25,690,949.92 4.45 9.611 125,322 91.31 23.80 99.37 100.00
- -----------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- -----------------------------------------------------------------------------------------------------------------------------------
Min: 18.75
Max: 100.00
Weighted Average: 78.75
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Index Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fixed Rate 59 19,198,393.07 3.32 9.108 325,396 76.87 55.40 69.80 84.21
Treasury - 1 Year 1 75,021.67 0.01 9.750 75,022 80.00 100.00 100.00 100.00
Libor - 6 Month 4,985 558,317,712.03 96.66 9.863 112,000 78.82 48.23 70.25 90.84
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 6 of 11
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 5,045 records
Group 2 Balance: 577,591,127
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Distribution of Margins (1) Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2.001 - 2.500 1 55,262.87 0.01 6.350 55,263 91.02 100.00 100.00 100.00
3.501 - 4.000 2 564,690.14 0.10 7.519 282,345 66.43 0.00 12.94 100.00
4.001 - 4.500 29 3,248,492.76 0.58 8.567 112,017 80.60 55.30 76.58 91.86
4.501 - 5.000 249 29,372,109.57 5.26 8.871 117,960 75.10 51.36 68.96 85.96
5.001 - 5.500 866 104,601,935.56 18.73 9.319 120,787 81.05 45.15 75.77 88.71
5.501 - 6.000 1,089 130,638,713.66 23.40 9.562 119,962 79.73 46.88 71.70 91.38
6.001 - 6.500 1,113 119,613,737.66 21.42 9.860 107,470 79.25 50.31 72.18 92.54
6.501 - 7.000 827 89,945,005.85 16.11 10.251 108,761 78.24 47.60 64.28 90.49
7.001 - 7.500 425 43,652,910.10 7.82 10.751 102,713 77.86 53.14 66.82 92.00
7.501 - 8.000 218 19,941,124.69 3.57 11.148 91,473 74.52 48.08 70.25 91.69
8.001 - 8.500 97 10,128,440.04 1.81 11.507 104,417 73.48 43.95 56.21 94.89
8.501 - 9.000 44 3,843,431.00 0.69 11.924 87,351 71.23 48.09 50.38 90.96
9.001 - 9.500 18 2,157,521.22 0.39 12.863 119,862 65.59 60.86 49.70 90.76
9.501 - 10.000 6 537,351.03 0.10 11.311 89,559 76.35 100.00 72.69 100.00
10.001 - 10.500 2 92,007.55 0.02 13.672 46,004 67.57 0.00 51.30 100.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 4,986 558,392,733.70 100.00 9.863 111,992 78.82 48.23 70.25 90.84
- ------------------------------------------------------------------------------------------------------------------------------------
Min: 2.500
Max: 10.300
Weighted Average: 6.235
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Excludes Fixed Rate Mortgages
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 7 of 11
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 5,045 records
Group 2 Balance: 577,591,127
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Distribution of Mortgage Principal Principal Average Current Original Cashout Full Owner
Maximum Mortgage Rates (1) Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
11.001 - 11.500 1 99,809.32 0.02 8.300 99,809 80.00 0.00 100.00 100.00
11.501 - 12.000 1 56,008.74 0.01 5.625 56,009 37.17 100.00 0.00 100.00
12.001 - 12.500 10 1,193,548.73 0.21 7.042 119,355 71.11 83.33 53.74 95.92
12.501 - 13.000 21 3,099,127.82 0.56 7.014 147,578 69.98 88.36 59.11 59.96
13.001 - 13.500 26 4,529,797.90 0.81 7.476 174,223 74.22 83.03 42.34 79.33
13.501 - 14.000 63 9,616,060.40 1.72 7.867 152,636 76.95 54.33 88.38 83.29
14.001 - 14.500 97 15,387,582.43 2.76 8.156 158,635 75.04 62.94 62.55 90.71
14.501 - 15.000 230 33,963,160.29 6.08 8.514 147,666 79.40 50.49 69.66 91.33
15.001 - 15.500 369 50,230,155.11 9.00 8.765 136,125 78.29 52.51 68.08 90.61
15.501 - 16.000 611 78,968,781.84 14.14 9.191 129,245 80.10 53.21 73.54 91.35
16.001 - 16.500 740 91,593,445.20 16.40 9.630 123,775 80.46 46.38 73.05 89.09
16.501 - 17.000 856 92,888,626.85 16.63 10.026 108,515 80.65 44.44 73.02 91.10
17.001 - 17.500 726 70,078,072.88 12.55 10.521 96,526 79.36 42.43 68.55 92.42
17.501 - 18.000 536 50,811,956.32 9.10 10.990 94,798 78.76 44.11 66.64 92.19
18.001 - 18.500 290 22,457,683.03 4.02 11.470 77,440 76.31 47.96 63.64 92.66
18.501 - 19.000 185 16,566,548.42 2.97 11.990 89,549 74.60 43.34 67.45 94.50
19.001 - 19.500 81 6,251,073.10 1.12 12.422 77,174 69.42 40.73 74.20 92.47
19.501 - 20.000 67 5,113,753.69 0.92 12.830 76,325 67.61 61.31 56.11 92.47
20.001 - 20.500 29 2,205,633.84 0.39 13.721 76,056 61.57 43.01 59.81 82.32
20.501 - 21.000 21 1,658,953.45 0.30 13.837 78,998 68.28 33.44 79.81 96.23
21.001 - 21.500 14 721,030.12 0.13 14.388 51,502 66.98 30.20 79.43 100.00
21.501 - 22.000 8 491,971.66 0.09 14.830 61,496 68.71 13.52 100.00 100.00
22.001 - 22.500 2 257,481.10 0.05 15.273 128,741 69.55 0.00 100.00 100.00
22.501 - 23.000 1 104,893.41 0.02 15.750 104,893 70.00 0.00 100.00 100.00
23.001 - 23.500 1 47,578.05 0.01 16.050 47,578 70.00 0.00 100.00 100.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 4,986 558,392,733.70 100.00 9.863 111,992 78.82 48.23 70.25 90.84
- ------------------------------------------------------------------------------------------------------------------------------------
Min: 11.300
Max: 23.050
Weighted Average: 16.540
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Excludes Fixed Rate Mortgages
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 8 of 11
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 5,045 records
Group 2 Balance: 577,591,127
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Distribution of Mortgage Mortgage Principal Principal Average Current Original Cashout Full Owner
Minimum Mortgage Rates (1) Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5.501 - 6.000 2 109,692.80 0.02 5.735 54,846 50.79 51.06 0.00 51.06
6.001 - 6.500 9 1,001,113.46 0.18 6.336 111,235 70.25 100.00 44.85 100.00
6.501 - 7.000 24 4,078,673.95 0.73 7.026 169,945 71.89 82.47 70.25 70.89
7.001 - 7.500 49 8,093,212.62 1.45 7.500 165,168 71.76 70.97 48.74 87.55
7.501 - 8.000 147 22,230,782.68 3.98 7.894 151,230 76.87 52.78 79.40 87.85
8.001 - 8.500 293 42,546,329.33 7.62 8.397 145,209 76.77 58.32 66.56 87.54
8.501 - 9.000 559 74,848,579.19 13.40 8.883 133,897 79.76 52.44 71.43 91.49
9.001 - 9.500 658 83,016,669.15 14.87 9.367 126,165 80.38 47.41 70.91 89.80
9.501 - 10.000 917 105,421,810.83 18.88 9.850 114,964 81.13 43.80 73.95 91.81
10.001 - 10.500 696 74,144,021.02 13.28 10.323 106,529 81.04 44.62 75.83 90.70
10.501 - 11.000 720 67,887,670.78 12.16 10.826 94,288 77.88 45.43 63.82 92.61
11.001 - 11.500 364 29,650,846.65 5.31 11.306 81,458 78.21 44.58 66.36 91.56
11.501 - 12.000 261 22,730,962.92 4.07 11.799 87,092 76.31 47.03 61.99 93.05
12.001 - 12.500 116 9,326,184.14 1.67 12.358 80,398 70.32 40.86 73.82 94.60
12.501 - 13.000 76 6,487,245.71 1.16 12.822 85,358 66.80 57.74 58.88 93.44
13.001 - 13.500 28 2,113,821.01 0.38 13.276 75,494 64.65 48.98 56.34 86.53
13.501 - 14.000 32 2,323,120.47 0.42 13.792 72,598 67.28 41.44 69.30 90.22
14.001 - 14.500 20 1,356,841.33 0.24 14.421 67,842 64.45 24.74 68.54 100.00
14.501 - 15.000 11 615,203.10 0.11 14.839 55,928 68.43 18.11 96.91 100.00
15.001 - 15.500 2 257,481.10 0.05 15.273 128,741 69.55 0.00 100.00 100.00
15.501 - 16.000 1 104,893.41 0.02 15.750 104,893 70.00 0.00 100.00 100.00
16.001 - 16.500 1 47,578.05 0.01 16.050 47,578 70.00 0.00 100.00 100.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 4,986 558,392,733.70 100.00 9.863 111,992 78.82 48.23 70.25 90.84
- ------------------------------------------------------------------------------------------------------------------------------------
Min: 5.625
Max: 16.050
Weighted Average: 9.842
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Excludes Fixed Rate Mortgages
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Distribution of Mortgage Principal Principal Average Current Original Cashout Full Owner
Periodic Rate Caps (1) Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1.000 3,890 434,418,213.43 77.80 9.949 111,676 79.50 45.72 71.95 91.22
1.500 1,089 123,169,303.36 22.06 9.554 113,103 76.38 57.08 64.23 89.44
2.000 2 100,895.11 0.02 10.359 50,448 72.31 100.00 74.36 100.00
3.000 5 704,321.80 0.13 10.558 140,864 83.00 42.57 73.23 100.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 4,986 558,392,733.70 100.00 9.863 111,992 78.82 48.23 70.25 90.84
- ------------------------------------------------------------------------------------------------------------------------------------
Min: 1.000
Max: 3.000
Weighted Average: 1.113
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Excludes Fixed Rate Mortgages
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 9 of 11
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 5,045 records
Group 2 Balance: 577,591,127
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Distribution of Mortgage Mortgage Principal Principal Average Current Original Cashout Full Owner
Next Rate Change Date (1) Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1998-07 109 12,554,221.73 2.25 9.700 115,176 77.98 58.09 61.14 77.93
1998-08 162 21,599,653.14 3.87 9.253 133,331 78.94 55.71 64.76 86.45
1998-09 190 25,385,987.91 4.55 8.995 133,610 77.52 54.18 62.77 83.35
1998-10 73 8,078,906.01 1.45 9.843 110,670 78.86 38.96 57.57 92.11
1998-11 38 4,559,327.86 0.82 10.717 119,982 75.89 39.48 57.81 97.09
1998-12 71 7,335,928.36 1.31 9.618 103,323 78.61 40.11 60.46 92.09
1999-01 73 7,308,627.86 1.31 9.867 100,118 77.45 50.48 57.05 89.42
1999-02 24 2,701,158.44 0.48 9.726 112,548 75.66 44.39 82.95 92.89
1999-03 3 312,584.14 0.06 9.619 104,195 78.58 0.00 33.53 100.00
1999-04 1 75,021.67 0.01 9.750 75,022 80.00 100.00 100.00 100.00
1999-05 2 100,594.98 0.02 10.408 50,297 85.00 64.26 100.00 100.00
1999-06 3 296,587.78 0.05 10.147 98,863 81.07 79.49 100.00 100.00
1999-07 5 356,532.72 0.06 11.818 71,307 83.18 43.15 85.48 100.00
1999-08 8 795,432.90 0.14 11.257 99,429 76.13 19.94 77.42 96.74
1999-09 13 1,557,692.18 0.28 11.082 119,822 73.67 67.12 51.37 75.22
1999-10 92 9,481,739.49 1.70 10.544 103,062 77.25 40.11 63.50 78.42
1999-11 116 12,700,954.84 2.27 10.501 109,491 74.31 47.88 59.99 86.76
1999-12 458 43,343,649.32 7.76 10.397 94,637 77.76 49.91 64.40 91.69
2000-01 387 42,157,832.71 7.55 9.793 108,935 77.57 57.65 70.87 93.63
2000-02 280 31,464,527.35 5.63 10.156 112,373 79.09 49.95 71.53 89.16
2000-03 390 46,223,195.43 8.28 9.990 118,521 79.70 41.58 69.58 88.55
2000-04 393 43,982,183.78 7.88 9.998 111,914 78.83 50.65 73.14 93.50
2000-05 303 37,718,658.13 6.75 9.785 124,484 81.07 46.99 73.24 94.97
2000-06 232 27,244,209.22 4.88 9.839 117,432 82.02 33.97 81.28 96.71
2000-07 384 42,062,025.94 7.53 9.908 109,537 80.02 39.78 78.38 93.96
2000-08 435 44,268,758.58 7.93 9.959 101,767 78.45 44.91 71.64 93.21
2000-09 66 4,925,375.00 0.88 10.152 74,627 79.09 30.10 80.80 91.14
2000-11 2 260,278.98 0.05 10.481 130,139 71.79 32.51 67.49 67.49
2000-12 16 1,257,668.67 0.23 10.051 78,604 76.20 48.47 79.66 73.57
2001-01 36 5,512,655.31 0.99 9.671 153,129 77.18 44.79 88.63 78.92
2001-02 16 2,516,901.04 0.45 9.754 157,306 80.36 49.27 57.43 89.71
2001-03 47 6,073,562.20 1.09 10.048 129,225 80.27 48.27 74.33 92.65
2001-04 82 8,147,670.31 1.46 10.229 99,362 79.56 56.30 70.55 89.46
2001-05 76 8,033,677.72 1.44 10.229 105,706 77.27 40.03 72.30 96.04
2001-06 80 7,183,269.82 1.29 10.072 89,791 75.29 54.62 62.30 94.52
2001-07 12 1,141,473.55 0.20 9.827 95,123 81.48 44.38 87.13 96.72
2001-08 10 1,591,748.78 0.29 9.442 159,175 83.63 4.18 76.96 100.00
2002-11 1 262,469.77 0.05 8.875 262,470 80.00 100.00 100.00 0.00
2002-12 20 2,053,053.38 0.37 9.165 102,653 79.26 75.16 84.06 97.82
2003-01 250 32,650,353.07 5.85 8.891 130,601 79.15 62.11 73.84 88.02
2003-02 3 207,694.93 0.04 9.145 69,232 80.00 18.35 33.71 100.00
2003-03 6 954,201.28 0.17 8.984 159,034 80.64 72.62 20.60 100.00
2003-04 2 203,557.76 0.04 10.317 101,779 85.76 100.00 100.00 100.00
2003-05 4 376,178.48 0.07 9.608 94,045 73.84 79.83 16.24 100.00
2003-06 5 400,587.27 0.07 9.817 80,117 77.35 59.10 38.30 100.00
2003-07 3 256,327.28 0.05 10.680 85,442 75.08 35.88 0.00 87.56
2003-08 4 718,036.63 0.13 9.045 179,509 84.45 48.73 68.68 100.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 4,986 558,392,733.70 100.00 9.863 111,992 78.82 48.23 70.25 90.84
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Excludes Fixed Rate Mortgages
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 10 of 11
<PAGE>
Amresco Residential Securities MORGAN STANLEY DEAN WITTER
Mortgage Loan Trust 1998-3 5,045 records
Group 2 Balance: 577,591,127
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of Weighted
Number of Aggregate Aggregate Weighted Average Average Percent Percent Percent
Mortgage Principal Principal Average Current Original Cashout Full Owner
Originator Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PAN AMERICAN 806 105,323,501.13 18.23 9.534 130,674 79.18 50.72 69.19 85.01
NEW CENTURY 765 86,147,334.63 14.91 9.375 112,611 76.98 59.94 67.84 89.45
WMC MORTGAGE 476 45,347,822.34 7.85 10.601 95,269 75.94 44.90 59.59 86.44
PARKWAY MORTGAGE 397 40,833,961.51 7.07 10.687 102,856 80.33 46.57 72.15 94.24
ASSURANCE MTG. 200 25,553,121.68 4.42 9.981 127,766 77.44 46.33 54.17 89.03
Other 2,401 274,385,385.48 47.51 9.834 114,280 79.50 45.08 74.36 93.44
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 5,045 577,591,126.77 100.00 9.838 114,488 78.75 48.47 70.24 90.62
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Page 11 of 11
<PAGE>
<TABLE>
<CAPTION>
Average Life Sensitivity to Changes in Prepayment Rates
Scenario I II III IV V VI VII
<S> <C> <C> <C> <C> <C> <C> <C>
Group I 0% HEP 12% HEP 18% HEP 24% HEP 30% HEP 36% HEP 48% HEP
Group II 0% CPR 13.5% CPR 20.25% CPR 27% CPR 33.75% CPR 40.5% CPR 54% CPR
</TABLE>
<TABLE>
<CAPTION>
Priced to 10% Optional Call
Scenario I II III IV V VI VII
<S> <C> <C> <C> <C> <C> <C> <C>
Class B-1F
Yield 8.514 8.482 8.459 8.434 8.411 8.393 8.370
Average Life 25.91 10.32 7.26 5.50 4.47 3.88 3.36
Mod Duration 10.17 6.47 5.10 4.16 3.54 3.17 2.82
First Prin 10/25/19 12/25/03 5/25/02 10/25/01 10/25/01 10/25/01 11/25/01
Last Prin 3/25/27 8/25/13 6/25/09 11/25/06 2/25/05 12/25/03 6/25/02
Payment Window 90 117 86 62 41 27 8
Class A-7
Average Life 22.16 5.23 3.23 2.09 1.26 0.74 0.52
First Prin 10/25/98 10/25/98 10/25/98 10/25/98 10/25/98 10/25/98 10/25/98
Last Prin 3/25/27 3/25/13 6/25/08 10/25/05 3/25/04 5/25/00 11/25/99
Payment Window 342 174 117 85 66 20 14
Class A-8
Average Life 11.12 2.86 2.61 2.51 2.40 2.22 1.51
First Prin 7/25/00 7/25/00 7/25/00 7/25/00 7/25/00 5/25/00 11/25/99
Last Prin 4/25/15 11/25/03 10/25/03 10/25/03 2/25/04 8/25/01 9/25/00
Payment Window 178 41 40 40 44 16 11
Class M-1A
Average Life 26.72 9.69 6.44 4.97 4.75 4.11 2.21
First Prin 4/25/22 5/25/03 10/25/01 3/25/02 8/25/02 8/25/01 9/25/00
Last Prin 3/25/27 3/25/13 6/25/08 10/25/05 3/25/04 2/25/03 3/25/01
Payment Window 60 119 81 44 20 19 7
Class M-2A
Average Life 26.72 9.69 6.44 4.86 4.22 4.15 2.69
First Prin 4/25/22 5/25/03 10/25/01 12/25/01 2/25/02 5/25/02 3/25/01
Last Prin 3/25/27 3/25/13 6/25/08 10/25/05 3/25/04 2/25/03 6/25/01
Payment Window 60 119 81 47 26 10 4
Class B-1A
Average Life 26.72 9.69 6.44 4.81 4.03 3.66 2.74
First Prin 4/25/22 5/25/03 10/25/01 10/25/01 11/25/01 11/25/01 6/25/01
Last Prin 3/25/27 3/25/13 6/25/08 10/25/05 3/25/04 2/25/03 6/25/01
Payment Window 60 119 81 49 29 16 1
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
Average Life Sensitivity to Changes in Prepayment Rates
Scenario I II III IV V VI VII
<S> <C> <C> <C> <C> <C> <C> <C>
Group I 0% HEP 12% HEP 18% HEP 24% HEP 30% HEP 36% HEP 48% HEP
Group II 0% CPR 13.5% CPR 20.25% CPR 27% CPR 33.75% CPR 40.5% CPR 54% CPR
</TABLE>
<TABLE>
<CAPTION>
Priced to Maturity
Scenario I II III IV V VI VII
<S> <C> <C> <C> <C> <C> <C> <C>
Class B-1F
Yield 8.514 8.491 8.471 8.448 8.427 8.409 8.384
Average Life 25.96 10.60 7.46 5.65 4.60 3.99 3.43
Mod Duration 10.17 6.54 5.18 4.23 3.61 3.23 2.87
First Prin 10/25/19 12/25/03 5/25/02 10/25/01 10/25/01 10/25/01 11/25/01
Last Prin 10/25/27 1/25/17 12/25/11 10/25/08 9/25/06 3/25/05 5/25/03
Payment Window 97 158 116 85 60 42 19
Class A-7
Average Life 22.20 5.67 3.59 2.36 1.47 0.74 0.52
First Prin 10/25/98 10/25/98 10/25/98 10/25/98 10/25/98 10/25/98 10/25/98
Last Prin 2/25/28 10/25/25 2/25/20 1/25/15 6/25/11 5/25/00 11/25/99
Payment Window 353 325 257 196 153 20 14
Class A-8
Average Life 11.12 2.86 2.61 2.51 2.40 2.22 1.51
First Prin 7/25/00 7/25/00 7/25/00 7/25/00 7/25/00 5/25/00 11/25/99
Last Prin 4/25/15 11/25/03 10/25/03 10/25/03 2/25/04 8/25/01 9/25/00
Payment Window 178 41 40 40 44 16 11
Class M-1A
Average Life 26.82 10.64 7.18 5.54 5.18 5.72 2.21
First Prin 4/25/22 5/25/03 10/25/01 3/25/02 8/25/02 8/25/01 9/25/00
Last Prin 2/25/28 10/25/23 5/25/17 9/25/12 7/25/09 11/25/08 3/25/01
Payment Window 71 246 188 127 84 88 7
Class M-2A
Average Life 26.82 10.58 7.11 5.38 4.62 4.48 3.49
First Prin 4/25/22 5/25/03 10/25/01 12/25/01 2/25/02 5/25/02 3/25/01
Last Prin 1/25/28 4/25/22 11/25/15 6/25/11 8/25/08 8/25/06 8/25/05
Payment Window 70 228 170 115 79 52 54
Class B-1A
Average Life 26.79 10.28 6.87 5.15 4.28 3.86 3.98
First Prin 4/25/22 5/25/03 10/25/01 10/25/01 11/25/01 11/25/01 1/25/02
Last Prin 11/25/27 10/25/19 7/25/13 8/25/09 3/25/07 6/25/05 9/25/03
Payment Window 68 198 142 95 65 44 21
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
Available Funds Cap Schedule
Date Class A-7 Cap Date Class A-7 Cap Date Class A-7 Cap Date Class A-7 Cap
<S> <C> <C> <C> <C> <C> <C> <C>
9/1/1998 0 11/25/2002 15.5 1/25/2007 15.5 3/25/2011 17.17
10/25/1998 10.75 12/25/2002 16.02 2/25/2007 15.5 4/25/2011 15.5
11/25/1998 9.05 1/25/2003 15.5 3/25/2007 17.16 5/25/2011 16.02
12/25/1998 9.39 2/25/2003 15.5 4/25/2007 15.5 6/25/2011 15.51
1/25/1999 9.13 3/25/2003 17.16 5/25/2007 16.02 7/25/2011 16.02
2/25/1999 9.14 4/25/2003 15.5 6/25/2007 15.5 8/25/2011 15.51
3/25/1999 10.13 5/25/2003 16.02 7/25/2007 16.02 9/25/2011 15.51
4/25/1999 9.17 6/25/2003 15.5 8/25/2007 15.5 10/25/2011 16.02
5/25/1999 9.51 7/25/2003 16.02 9/25/2007 15.5 11/25/2011 15.51
6/25/1999 9.24 8/25/2003 15.5 10/25/2007 16.02 12/25/2011 16.02
7/25/1999 9.59 9/25/2003 15.5 11/25/2007 15.5 1/25/2012 15.51
8/25/1999 9.3 10/25/2003 16.02 12/25/2007 16.02 2/25/2012 15.51
9/25/1999 9.31 11/25/2003 15.5 1/25/2008 15.5 3/25/2012 16.57
10/25/1999 9.64 12/25/2003 16.02 2/25/2008 15.5 4/25/2012 15.51
11/25/1999 9.36 1/25/2004 15.5 3/25/2008 16.57 5/25/2012 16.02
12/25/1999 9.71 2/25/2004 15.5 4/25/2008 15.5 6/25/2012 15.51
1/25/2000 9.44 3/25/2004 16.57 5/25/2008 16.02 7/25/2012 16.02
2/25/2000 9.45 4/25/2004 15.5 6/25/2008 15.5 8/25/2012 15.51
3/25/2000 10.12 5/25/2004 16.02 7/25/2008 16.02 9/25/2012 15.51
4/25/2000 9.48 6/25/2004 15.5 8/25/2008 15.5 10/25/2012 16.02
5/25/2000 9.83 7/25/2004 16.02 9/25/2008 15.5 11/25/2012 15.51
6/25/2000 9.56 8/25/2004 15.5 10/25/2008 16.02 12/25/2012 16.02
7/25/2000 11.36 9/25/2004 15.5 11/25/2008 15.5 1/25/2013 15.51
8/25/2000 11 10/25/2004 16.02 12/25/2008 16.02 2/25/2013 15.51
9/25/2000 11.01 11/25/2004 15.5 1/25/2009 15.5 3/25/2013 17.17
10/25/2000 11.4 12/25/2004 16.02 2/25/2009 15.5 4/25/2013 15.51
11/25/2000 11.07 1/25/2005 15.5 3/25/2009 17.17 5/25/2013 16.02
12/25/2000 11.48 2/25/2005 15.5 4/25/2009 15.5 6/25/2013 15.51
1/25/2001 11.81 3/25/2005 17.16 5/25/2009 16.02 7/25/2013 16.02
2/25/2001 11.82 4/25/2005 15.5 6/25/2009 15.5 8/25/2013 15.51
3/25/2001 13.1 5/25/2005 16.02 7/25/2009 16.02 9/25/2013 15.51
4/25/2001 11.85 6/25/2005 15.5 8/25/2009 15.5 10/25/2013 16.02
5/25/2001 15.04 7/25/2005 16.02 9/25/2009 15.5 11/25/2013 15.51
6/25/2001 15.5 8/25/2005 15.5 10/25/2009 16.02 12/25/2013 16.02
7/25/2001 16.02 9/25/2005 15.5 11/25/2009 15.5 1/25/2014 15.51
8/25/2001 15.5 10/25/2005 16.02 12/25/2009 16.02 2/25/2014 15.51
9/25/2001 15.5 11/25/2005 15.5 1/25/2010 15.5 3/25/2014 17.17
10/25/2001 15.94 12/25/2005 16.02 2/25/2010 15.5 4/25/2014 15.51
11/25/2001 14.9 1/25/2006 15.5 3/25/2010 17.17 5/25/2014 16.02
12/25/2001 15.49 2/25/2006 15.5 4/25/2010 15.5 6/25/2014 15.51
1/25/2002 15.5 3/25/2006 17.16 5/25/2010 16.02 7/25/2014 16.02
2/25/2002 15.5 4/25/2006 15.5 6/25/2010 15.5 8/25/2014 15.51
3/25/2002 17.16 5/25/2006 16.02 7/25/2010 16.02 9/25/2014 15.51
4/25/2002 15.5 6/25/2006 15.5 8/25/2010 15.5 10/25/2014 16.02
5/25/2002 16.02 7/25/2006 16.02 9/25/2010 15.5 11/25/2014 15.51
6/25/2002 15.5 8/25/2006 15.5 10/25/2010 16.02 12/25/2014 16.02
7/25/2002 16.02 9/25/2006 15.5 11/25/2010 15.5 1/25/2015 15.51
8/25/2002 15.5 10/25/2006 16.02 12/25/2010 16.02 2/25/2015 15.51
9/25/2002 15.5 11/25/2006 15.5 1/25/2011 15.5 3/25/2015 17.17
10/25/2002 16.02 12/25/2006 16.02 2/25/2011 15.5 4/25/2015 0
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by AMRESCO Residential Capital Markets, Inc. with respect to the
expected characteristics of the pool of home equity loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the home equity loans will differ from the
assumptions used in preparing these materials, which are hypothetical in nature.
Changes in the assumptions may have a material impact on the information set
forth in these materials. No representation is made that any performance or
return indicated herein will be achieved. For example, it is very unlikely that
the loans will prepay at a constant rate or follow a predictable pattern. This
information may not be used or otherwise disseminated in connection with the
offer or sale of these or any other securities, except in connection with the
initial offer or sale of these securities to you to the extent set forth below.
NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR
COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED.
Additional information is available upon request. These materials do not
constitute an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading strategy.
ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A
DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH
WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN
RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH
SECURITIES SHOULD BE MADE SOLELY RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS
SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any
such offering, these materials, including any description of the loans contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
Exhibit 99.2
ABS New Transaction
Computational Materials
$724,411,000 (Approximate)
AMRESCO
Asset Backed Certificates
Series 1998-3
The information herein has been provided solely by PSI based on information with
respect to the High LTV home equity loans provided by AMRESCO Residential
Capital Markets ("AMRESCO"). Neither AMRESCO nor any of its affiliates makes any
representation as to the accuracy or completeness of the information herein. The
information herein is preliminary and will be superseded by the prospectus
supplement and by any other information subsequently filed with the Securities
and Exchange Commissions (SEC). All assumptions and information in this report
reflect PSI's judgment as of this date and are subject to change. All analyses
are based on certain assumptions noted herein and different assumptions could
yield substantially different results. You are cautioned that there is no
universally accepted method for analyzing financial instruments. You should
review the assumptions; there may be differences between these assumptions and
your actual business practices. Further, PSI does not guarantee any results and
there is no guarantee as to the liquidity of the instruments involved in this
analysis. The decision to adopt any strategy remains your responsibility. PSI
(or any of its affiliates) or their officers, directors, analysts or employees
may have positions in securities, commodities or derivative instruments thereon
referred to here, and may, as principal or agent, buy or sell such securities,
commodities or derivative instruments. In addition, PSI may make a market in the
securities referred to herein. Neither the information nor the assumptions
reflected herein shall be construed to be, or constitute, an offer to sell or
buy or a solicitation of an offer to sell or buy any securities, commodities or
derivative instruments mentioned herein. No sale of any securities, commodities
or derivative instruments should be consummated without the purchaser first
having received a prospectus and, if required, prospectus supplement. Finally,
PSI has not addressed the legal, accounting and tax implications of the analysis
with respect to you, and PSI strongly urges you to seek advice from your
counsel, accountant and tax advisor.
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICIATION OF
AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. INFORMATION CONTAINED
HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE
COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO
PURCHASE THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS
SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE
MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
- --------------------------------------------------------------------------------
[Refer to Exhibit 99.1 for Computational Materials]
Exhibit 99.3
ABS New Transaction
Computational Materials
$724,411,000 (Approximate)
AMRESCO
Asset Backed Certificates
Series 1998-3
- --------------------------------------------------------------------------------
The above analysis is not intended to be a prospectus and any investment
decision with respect to the security should be made by you based solely upon
all of the information contained in the final prospectus. Under no circumstances
shall the information presented constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any sale of the securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of such jurisdiction.
The securities may not be sold nor may an offer to buy be accepted prior to the
delivery of a final prospectus relating to the securities. The above preliminary
description of the underlying assets has been provided by the issuer and has not
been independently verified by Credit Suisse First Boston. All information
described above is preliminary, limited in nature and subject to completion or
amendment. Credit Suisse First Boston makes no representations that the above
referenced security will actually perform as described in any scenario
presented.
- --------------------------------------------------------------------------------
[Refer to Exhibit 99.1 for Computational Materials]
