- --------------------------------------------------------------------------------
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)
August 16, 1996
AMRESCO Residential Securities Corporation
(on behalf of AMRESCO Residential Securities Corporation
Mortgage Loan Trust 1996-4)
(Exact name of registrant as specified in its charter)
New York 333-8687 Pending
- ----------------------------- ------------ -----------------------
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
c/o Bankers Trust Company of California, N.A.
3 Park Plaza, 16th Floor
Irvine, CA 92714
- ---------------------------------------------- --------------
(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code (909) 605-7600
No Change
(Former name or former address, if changed since last report)
Total number of sequentially numbered pages __________
Exhibit index located on sequentially numbered page __________
<PAGE>
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) Not applicable
(b) Not applicable
(c) Exhibits:
99.1 Computational Materials of CS First Boston relating
to the Offered Certificates.
99.2 Computational Materials of Goldman, Sachs & Co.
relating to the Offered Certificates.
99.3 Computational Materials of Prudential Securities Inc.
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: Chief Financial Officer and
Chief Accounting Officer
Dated: August 20, 1996
<PAGE>
EXHIBIT INDEX
Exhibit No. Description Page No.
99.1 Computational Materials of CS First Boston
relating to the Offered Certificates _______
99.2 Computational Materials of Goldman, Sachs & Co.
relating to the Offered Certificates _______
99.3 Computational Materials of Prudential Securities
Inc. relating to the Offered Certificates. _______
<PAGE>
REVISED COMPUTATIONAL MATERIALS FOR FLOATER ONLY
TO 10% CALL
SUMMARY REPORT FOR ISSUERS
CS FIRST BOSTON AMRESCO HOME EQUITY LOAN TRUST 1996-4
Thu Aug 15, 1996 AMRESCO RESIDENTIAL SECURITIES
$311,080,369
Current Wam = 349 / Avg. WAC = 10.0734 / Seasoning = 0 Gross
Margin = NaN bp / Life Cap = 16.88 / Life Floor = NaN
Priced at 115.00 @BASE
Accrual Date: 8/ 1/96
Settlement Date: 8/27/96
First Pay Date: 9/25/96
------------------------------------------------------------
Class Original Coupon Avg. CBE 1st Last Mod.
Name Par % Life Yield Price Pay Pay Dur.
------------------------------------------------------------
A1 9,163,000 6.15 0.71 5.622 100-00 9/96 12/97 0.67
A2 23,277,000 6.65 1.21 6.346 100-00 9/96 11/98 1.12
A3 16,761,000 6.90 3.12 6.831 100-00 11/98 10/00 2.72
A4 11,360,000 7.20 5.25 7.196 100-00 10/00 3/03 4.23
A5 12,372,000 7.70 8.24 7.738 100-00 3/03 6/05 5.89
A6 238,146,000 FLOAT 3.50 5.895 100-00 9/96 6/05 2.91
------------------------------------------------------------
A6
Price: 100-00 Coupon: FLOAT Original Par: 238,146,000
-----------------------------------------------------------------------------
0 50 100 115 150 200
Performance at: @BASE @BASE @BASE @BASE @BASE @BASE
Average Life: 20.99 7.62 4.02 3.50 2.68 1.97
First Prin Pay: 10/96 9/96 9/96 9/96 9/96 9/96
Last Prin Pay: 2/25 5/15 10/06 6/05 4/03 5/01
-----------------------------------------------------------------------------
<PAGE>
FLOATING RATE COLLATERAL SUMMARY
Total Number of Loans 1,966 Level Pay/Balloon **%/ 0%
Total Outstanding Loan Balance $205,146,825 1st Lien 100%
RANGE % TOTAL # LOANS
Avg Loan Balance $ 104,347.32 greater than
or equal to 49,999.99 7.31 434
Highest Balance $ 762,500.00 50,000 - 74,999.99 12.69 416
Lowest Balance $ 10,265.36 75,000 - 99,999.99 14.34 336
100,000 - 149,999.99 24.92 425
150,000 - 199,999.99 14.23 169
200,000 - 349,999.99 19.38 153
350,000 - 762,500.00 7.13 33
RANGE % TOTAL # LOANS
Wtg Avg Coupon 9.90% greater than
or equal to 7.99% 9.00 127
Highest Coupon 17.80% 8.00% - 8.99% 20.17 320
Lowest Coupon 6.50% 9.00% - 9.99% 32.10 554
10.00% - 10.99% 20.46 437
11.00% - 11.99% 9.52 251
12.00% - 17.80% 8.75 277
RANGE LEVEL PAY BALLOON
Wtd Avg Remaining Term 352.22 1 - 120 .16% .00%
Highest Remaining Term 360 121 - 180 2.16% .00%
Lowest Remaining Term 117 181 - 240 1.18% .00%
241 - 360 96.50% .00%
Wtd Avg Seasoning 2.09
Highest Seasoning 16
Lowest Seasoning 0
RANGE % TOTAL # LOANS
Wtd Avg Orig LTV 72.85% 0.01% - 50.00% 3.50 122
Highest LTV 90.00% 50.01% - 60.00% 8.48 201
Lowest LTV 10.00% 60.01% - 70.00% 20.74 463
70.01% - 80.00% 57.13 1,025
80.01% - 90.00% 10.14 155
Property Type Occupancy Status
Single Family 83.42% Primary Residence 89.85%
Two to Four Family 6.74% Other 10.15%
PUD 5.93%
Condo 3.56%
Other .36%
Geographics CA 44%, IL 9%, CO 7%, UT 4%, MI 4%
<PAGE>
FLOATING RATE COLLATERAL SUMMARY CONTINUED
6 Month LIBOR 100.00%
Wtg Avg Months to Next Rate Roll 7.04
RANGE % TOTAL # LOANS
Wtg Avg Margin 6.18% greater than
or equal to 3.99% 3.14 55
Highest Margin 10.30% 4.00% - 4.99% 10.52 190
Lowest Margin 3.63% 5.00% - 5.99% 23.63 443
6.00% - 6.99% 36.49 701
7.00% - 7.99% 25.33 551
8.00% - 10.30% .89 26
RANGE % TOTAL # LOANS
Wtg Avg Life Cap 16.88% greater than
or equal to 14.99% 9.25 134
Highest Life Cap 24.80% 15.00% - 15.99% 20.43 316
Lowest Life Cap 8.99% 16.00% - 16.99% 31.62 552
17.00% - 17.99% 20.46 437
18.00% - 18.99% 9.53 252
19.00% - 24.80% 8.71 275
CAP VALUE % TOTAL # LOANS
Wtg Avg Periodic Cap 1.51% 1.00% 1.76 24
Highest Periodic Cap 3.00% 1.50% 96.78 1,915
Lowest Periodic Cap 1.00% 3.00% 1.46 27
<PAGE>
BOND PROFILE SUMMARY
--------------------------------------------------------------------------
Class Original Coupon Avg. CBE 1st Last Mod. Final
Name Par % Life Yield Price Pay Pay Dur. Maturity
--------------------------------------------------------------------------
To Maturity
A1 9,163,000 6.00 0.72 6.072 100-00 9/96 12/97 0.68 7/99
A2 23,277,000 6.70 1.20 6.360 100-00 9/96 11/98 1.11 9/15
A3 16,761,000 6.90 3.10 6.816 100-00 11/98 10/00 2.70 6/21
A4 11,360,000 7.20 5.20 7.185 100-00 10/00 2/03 4.20 12/23
A5 12,372,000 7.70 9.61 7.809 100-00 2/03 1/15 6.47 9/27
A6 238,146,000 FLOAT 3.80 FLOAT 100-00 9/96 12/15 3.09 9/27
----------------------------
To Call
A5 12,372,000 7.70 7.11 7.720 100-00 2/03 10/03 5.30 9/27
A6 238,146,000 FLOAT 3.30 FLOAT 100-00 9/96 10/03 2.81 9/27
-------------------------------------------------------------------------
(1) Fixed Rate Certificates (Class A1-A5) and Floating Rate Certificates
Prepayment Curve (PPC)= 115% of PPC. A 100% Prepayment Assumption assumes
prepayments start at 5% in month 1,rise by exactly 1.364% per month to 20%
CPR in month 12 at 20% CPR thereafter on a seasoning adjusted basis.
(2) Coupon and price are assumed for computational materials. Class A5 coupon
steps up .75% at clean-up call if clean-up call is not exercised. Class A6
margin will double if at the clean-up call if the clean-up call is not
exercised.
(3) Class A-5 and A-6 are subject to an available funds cap equal to the Net
WAC on the collateral.
BOND PROFILE SUMMARY
- -----------------------------------------------------------------------------
Percent of PPC: 0 75 100 115 150 200
Implied Seasoned CPR 0 15 20 23 30 40
- -----------------------------------------------------------------------------
A1
Price: 100-00 Coupon: 6.0000 Original Par: 9,163,000
-----------------------------------------------------------------------------
Average Life: 1.55 0.72 0.72 0.72 0.72 0.71
Duration: 1.42 0.68 0.68 0.68 0.68 0.67
First Prin Pay: 9/96 9/96 9/96 9/96 9/96 9/96
Last Prin Pay: 7/99 12/97 12/97 12/97 12/97 11/97
-----------------------------------------------------------------------------
A2
Price: 100-00 Coupon: 6.7000 Original Par: 23,277,000
-----------------------------------------------------------------------------
Average Life: 13.65 2.86 1.41 1.20 0.88 0.61
Duration: 8.58 2.50 1.29 1.11 0.83 0.58
First Prin Pay: 7/04 9/96 9/96 9/96 9/96 9/96
Last Prin Pay: 9/15 7/01 3/99 11/98 4/98 10/97
-----------------------------------------------------------------------------
A3
Price: 100-00 Coupon: 6.9000 Original Par: 16,761,000
-----------------------------------------------------------------------------
Average Life: 22.19 6.84 3.57 3.10 2.34 1.70
Duration: 11.03 5.27 3.06 2.70 2.10 1.56
First Prin Pay: 9/15 7/01 3/99 11/98 4/98 11/97
Last Prin Pay: 6/21 9/05 6/01 10/00 10/99 11/98
-----------------------------------------------------------------------------
<PAGE>
BOND PROFILE SUMMARY
- -----------------------------------------------------------------------------
Percent of PPC: 0 75 100 115 150 200
Implied Seasoned CPR 0 15 20 23 30 40
- -----------------------------------------------------------------------------
A4
Price: 100-00 Coupon: 7.2000 Original Par: 11,360,000
-----------------------------------------------------------------------------
Average Life: 26.14 11.21 6.00 5.20 3.92 2.81
Duration: 11.45 7.44 4.71 4.20 3.30 2.46
First Prin Pay: 6/21 9/05 6/01 10/00 10/99 11/98
Last Prin Pay: 12/23 4/10 2/04 2/03 7/01 2/00
-----------------------------------------------------------------------------
A5
Price: 100-00 Coupon: 7.7000 Original Par: 12,372,000
-----------------------------------------------------------------------------
Average Life: 28.48 19.01 11.01 9.61 7.27 5.22
Duration: 11.21 9.56 7.07 6.47 5.31 4.11
First Prin Pay: 12/23 4/10 2/04 2/03 7/01 2/00
Last Prin Pay: 2/26 1/25 7/17 1/15 9/10 10/06
--------------------------------
To Call
Average Life: 27.85 15.38 8.25 7.11 5.37 3.88
Duration: 11.14 8.73 5.91 5.30 4.25 3.24
First Prin Pay: 12/23 4/10 2/04 2/03 7/01 2/00
Last Prin Pay: 7/24 4/12 12/04 10/03 1/02 7/00
-----------------------------------------------------------------------------
(3) Class A-5 is subject to an available funds cap equal to the Net WAC on the
collateral.
(4) Class A-5 coupon steps up .75% at clean-up call is clean-up call is not
exercised.
BOND PROFILE SUMMARY
- -----------------------------------------------------------------------------
Percent of PPC: 0 75 100 115 150 200
Implied Seasoned CPR 0 15 20 23 30 40
- -----------------------------------------------------------------------------
A6
Price: 100-00 Coupon: FLOAT Original Par: 238,146,000
-----------------------------------------------------------------------------
To Maturity
Average Life: 21.04 8.04 4.36 3.80 2.90 2.13
Duration: 11.27 5.53 3.45 3.09 2.46 1.88
First Prin Pay: 9/96 9/96 9/96 9/96 9/96 9/96
Last Prin Pay: 4/26 3/25 6/18 12/15 5/11 3/07
To Call
Average Life: 20.92 7.24 3.80 3.30 2.53 1.87
Duration: 11.25 5.27 3.17 2.81 2.22 1.69
First Prin Pay: 9/96 9/96 9/96 9/96 9/96 9/96
Last Prin Pay: 7/24 4/12 12/04 10/03 1/02 7/00
-----------------------------------------------------------------------------
Class A-6 is subject to an available funds cap equal to the Net WAC on the
collateral. Class A-6 margin will double at clean-up call is clean-up call is
not exercised.
<PAGE>
AMRESCO 1996-4 CS First Boston Computational Materials
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 b uy 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 CS First Boston. All information described above
is preliminary, limited in nature and subject to completion or amendment. CS
First Boston makes no representations that the above referenced security will
actually perform as described in any scenario presented.
<PAGE>
FIXED RATE COLLATERAL SUMMARY
Total Number of Loans 828 Level Pay/Balloon 91%/ 9%
Total Outstanding Loan Balance $ 64,933,544 1st Lien 100%
RANGE % TOTAL # LOANS
Avg Loan Balance $ 78,422.15 greater than
or equal to 49,999.99 13.32 242
Highest Balance $ 580,878.97 50,000 - 74,999.99 21.68 225
Lowest Balance $ 11,998.36 75,000 - 99,999.99 21.17 158
100,000 - 149,999.99 27.92 154
150,000 - 199,999.99 8.17 31
200,000 - 580,878.97 7.75 18
RANGE % TOTAL # LOANS
Wtg Avg Coupon 10.65% greater than
or equal to 8.99% 6.91 43
Highest Coupon 16.75% 9.00% - 9.99% 29.25 202
Lowest Coupon 7.50% 10.00% - 10.99% 32.79 253
11.00% - 11.99% 18.79 176
12.00% - 12.99% 8.03 94
13.00% - 16.75% 4.23 60
RANGE LEVEL PAY BALLOON
Wtd Avg Remaining Term 322.76 1 - 120 .00% .00%
Highest Remaining Term 360 121 - 180 7.42% 9.02%
Lowest Remaining Term 158 181 - 240 1.68% .00%
241 - 360 81.88% .00%
Wtd Avg Seasoning 5.63
Highest Seasoning 15
Lowest Seasoning 0
RANGE % TOTAL # LOANS
Wtd Avg Orig LTV 67.43% 0.01% - 50.00% 10.60 118
Highest LTV 90.00% 50.01% - 60.00% 14.07 128
Lowest LTV 13.82% 60.01% - 70.00% 32.02 263
70.01% - 80.00% 37.80 291
80.01% - 90.00% 5.51 28
Property Type Occupancy Status
Single Family 86.40% Primary Residence 92.11%
Two to Four Family 7.38% Other 7.89%
PUD 2.94%
Condo 2.73%
Other .55%
Geographics CA 47%, UT 7%, CO 7%, OR 6%, FL 5%
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting this
material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may not
pertain to any securities that will actually be sold. The information contained
in this material may be based on assumptions regarding market conditions and
other matters as reflected therein. We make no representations regarding the
reasonableness of such assumptions or the likelihood that any of such
assumptions will coincide with actual market conditions or events, and this
material should not be relied upon for such purposes. We and our affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of this material may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned therein or
derivatives thereof (including options). This material may be filed with the
Securities and Exchange Commission (the "SEC") and incorporated by reference
into an effective registration statement previously filed with the SEC under
Rule 415 of the Securities Act of 1933, including in cases where the material
does not pertain to securities that are ultimately offered for sale pursuant to
such registration statement. Information contained in this material is current
as of the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. Any information in the material,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished solely by Goldman, Sachs & Co. and not by the issuer
of the securities or any of its affiliates. Goldman, Sachs & Co. is acting as
underwriter and not acting as agent for the issuer or its affiliates in
connection with the proposed transaction. The issuer has not prepared or taken
part in the preparation of these materials.
- --------------------------------------------------------------------------------
August 15, 1996
$311.08 mm (approx) Class A Certificates
AMRESCO RESIDENTIAL SECURITIES CORPORATION MORTGAGE LOAN TRUST 1996-4
Preliminary Structure
<TABLE>
<CAPTION>
Face Interest First Payment Expected Backed by Expected Final
Class Amount Rate Date(1) Avg. Life (3) Loan Group Payment Date
<S> <C> <C> <C> <C> <C> <C>
A1 $ 9,163,000 September 25, 1996 0.71 yrs. Loan Group I
at pricing
A2 $ 23,277,000 % September 25, 1996 [1.2 yrs] Loan Group I
A3 $ 16,761,000 % September 25, 1996 [3.1 yrs] Loan Group I
A4 $ 11,360,000 % September 25, 1996 [5.3 yrs] Loan Group I
A5 $ 12,372,000 % September 25, 1996 [9.7 yrs] Loan Group I
A6 $238,146,000 1 mo. LIBOR+ September 25, 1996 [3.8 yrs] Loan Group II December 2015
[ ]bp(2) June 2005 (to call)
</TABLE>
(1) Payment Dates are the 25th of each respective month, or if such day is
not a business day, the next succeeding business day.
(2) The least of (i) prior to Clean Up Call, _%, after Clean Up Call _%
(ii) _% (iii) An Available Funds Cap.
(3) Assumes 115% of a base scenario where the Loans prepay at 5% CPR in the
first month of the life of the mortgage loans and increases ratably to 20%
CPR by month 12. Remains constant at 20% CPR thereafter. Average lives for
Class A-5 and A-6 assume 10% clean up call is not exercised; if exercised,
average lives would be [8.25] and [3.50].
Managers: CS First Boston (books), Goldman, Sachs & Co.,
Prudential Securities
Structure: Two Pool Groups; MBIA Certificate Insurance Policy,
Overcollaterization, Cross-Collateralization, Pre-
Funding Account and Capitalized Interest Acct
Ratings(expected): Moodys/S&P: Aaa/AAA
Collateral: Initial Mortgage Loans: approx $270 mm with
Subsequent Pre-Funded Mortgage Loans: approx $41 mm
The Mortgage Loans will be comprised of loans from
Advanta Mortgage Corporation USA, Long Beach
Mortgage Company and Option One. Group I Loans are
fixed rate and Group II Loans are generally LIBOR-
based loans.
Credit Enhancement: i) MBIA Financial Guaranty Insurance Policy that
will provide for 100% coverage of the principal
amount of, and scheduled interest due on, the Class
A Certificates;
ii) overcollateralization through a limited
acceleration of the Class A Certs;
iii) cross-collateralization across the two pool
groups will also be available;
iv) excess monthly cash flow on a current basis.
Expected Pricing/Settlement: August [19], 1996/August [26], 1996
- 1 -
<PAGE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting this
material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may not
pertain to any securities that will actually be sold. The information contained
in this material may be based on assumptions regarding market conditions and
other matters as reflected therein. We make no representations regarding the
reasonableness of such assumptions or the likelihood that any of such
assumptions will coincide with actual market conditions or events, and this
material should not be relied upon for such purposes. We and our affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of this material may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned therein or
derivatives thereof (including options). This material may be filed with the
Securities and Exchange Commission (the "SEC") and incorporated by reference
into an effective registration statement previously filed with the SEC under
Rule 415 of the Securities Act of 1933, including in cases where the material
does not pertain to securities that are ultimately offered for sale pursuant to
such registration statement. Information contained in this material is current
as of the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. Any information in the material,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished solely by Goldman, Sachs & Co. and not by the issuer
of the securities or any of its affiliates. Goldman, Sachs & Co. is acting as
underwriter and not acting as agent for the issuer or its affiliates in
connection with the proposed transaction. The issuer has not prepared or taken
part in the preparation of these materials.
- --------------------------------------------------------------------------------
AMERESCO Residential Securities Corporation Series 1996-4
RELIMINARY DESCRIPTION OF INITIAL GROUP I MORTGAGE LOANS
828 loans for $64.9 mm
Fixed Rate Loans
----------------
<TABLE>
<CAPTION>
Gross Mortgage % Original LTV %
Interest Rate
<S> <C> <C> <C>
Wtd Avg 10.65 WTD Avg LTV 67.44
7.50 - 7.99% 0.40 10 - 50% 10.59
8.00 - 8.49 1.30 50 - 60 14.06
8.50 - 8.99 5.20 60 - 65 11.67
9.00 - 9.49 5.58 65 - 70 20.13
9.50 - 9.99 23.68 70 - 75 22.71
10.00 - 10.49 11.99 75 - 80 15.46
10.50 - 10.99 20.80 80 - 85 2.98
11.00 - 11.49 8.41 85 - 90 2.39
11.50 - 11.99 10.38
12.00 - 16.75 12.27 Occupancy Status %
Owner 92.11
Age % Non-Owner 7.89
Wtd Avg --
Less than 6 m --
Property Type %
Remaining Months % Single Family 86.40
WAM 323 2 - 4 Units 7.38
121 - 180 16.44 PUD 2.94
181 - 240 1.68 Condominium 2.73
168 - 360 81.88 Mobile Homes 0.28
Townhouses 0.18
Five Units 0.09
Principal Balance % State Concentration %
0 - 50M 13.32 California 46.90
50 - 100 42.85 Utah 7.44
100 - 150 27.92 Colorado 6.81
150 - 207 9.11 Oregon 5.56
207 - 250 1.38 Florida 5.30
250 - 350 4.53 Washington 4.22
500 - 650 0.89 Other 23.77
Sevicer %
PAG (Ameresco Credit Grade) Advanta 69.70
1 1.49 Option One 30.30
2 54.23
3 28.77
4 8.21
5 7.29
</TABLE>
-2-
<PAGE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting this
material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may not
pertain to any securities that will actually be sold. The information contained
in this material may be based on assumptions regarding market conditions and
other matters as reflected therein. We make no representations regarding the
reasonableness of such assumptions or the likelihood that any of such
assumptions will coincide with actual market conditions or events, and this
material should not be relied upon for such purposes. We and our affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of this material may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned therein or
derivatives thereof (including options). This material may be filed with the
Securities and Exchange Commission (the "SEC") and incorporated by reference
into an effective registration statement previously filed with the SEC under
Rule 415 of the Securities Act of 1933, including in cases where the material
does not pertain to securities that are ultimately offered for sale pursuant to
such registration statement. Information contained in this material is current
as of the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. Any information in the material,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished solely by Goldman, Sachs & Co. and not by the issuer
of the securities or any of its affiliates. Goldman, Sachs & Co. is acting as
underwriter and not acting as agent for the issuer or its affiliates in
connection with the proposed transaction. The issuer has not prepared or taken
part in the preparation of these materials.
- --------------------------------------------------------------------------------
AMERSCO Residential Securities Corporation Series 1996-4
PRELIMINARY DESCRIPTION OF INITIAL GROUP II MORTGAGE LOANS
1,966 loans for $205.1 mm
Floating Rate Loans
<TABLE>
<CAPTION>
Gross Mortgage % Original LTV %
Interest Rate
<S> <C> <C> <C>
Wtd Avg 9.90 WTD Avg LTV 72.47
6.50 - 6.99% 1.77 under 50% 3.72
7.00 - 7.49 1.52 50 - 60 8.75
7.50 - 7.99 5.71 60 - 65 8.15
8.00 - 8.49 4.97 65 - 70 13.11
8.50 - 8.99 15.14 70 - 75 29.03
9.00 - 9.49 8.92 75 - 80 27.62
9.50 - 9.99 23.18 80 - 85 8.09
10.00 - 10.49 7.17 85 - 90 1.53
10.50 - 10.99 13.29
11.00 - 11.49 4.31 Occupancy Status %
11.50 - 11.99 5.21 Owner Occupied 89.85
12.00 - 14.99+ 8.44 Non-Owner Occupied 10.15
Gross Margin % Age 2 months
Wtd Avg 6.18
3.50 - 3.749 1.07
3.75 - 3.99 2.08 Next Adjustment Date %
4.00 - 4.249 2.46 WTD Avg MTR 7.0
4.25 - 4.49 2.81 09/01/96 0.02
4.50 - 4.749 1.99 11/01/96 1.08
4.75 - 4.99 3.27 12/01/96 29.34
5.00 - 5.249 5.81 01/01/97 39.28
5.25 - 5.49 5.45 02/01/97 18.03
5.50 - 5.749 5.31 03/01/97 0.51
5.75 - 5.99 7.06 06/01/98 2.37
6.00 - 6.249 4.48 07/01/98 3.55
6.25 - 6.49 5.40 07/05/98 0.07
6.50 - 6.749 12.16 08/01/98 5.32
6.75 - 6.99 14.45 09/01/98 0.35
7.00 - 7.249 7.99 11/01/99 0.08
7.25 - 7.49 11.59
7.50 -10.30 6.63
LifeTime Caps % Property Type %
Weighted Average 16.88 Single Family 83.42
0.00 - 14.99 9.25 Apartments 2 - 4 Units 6.74
15.00 - 15.99 20.43 PUD 5.93
16.00 - 16.99 31.62 Condominium 3.56
17.00 - 17.99 20.46 Mobile Homes 0.27
18.00 - 18.99 9.53 Townhouses 0.09
19.00 - 24.80 8.71
</TABLE>
- 3 -
<PAGE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting this
material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may not
pertain to any securities that will actually be sold. The information contained
in this material may be based on assumptions regarding market conditions and
other matters as reflected therein. We make no representations regarding the
reasonableness of such assumptions or the likelihood that any of such
assumptions will coincide with actual market conditions or events, and this
material should not be relied upon for such purposes. We and our affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of this material may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned therein or
derivatives thereof (including options). This material may be filed with the
Securities and Exchange Commission (the "SEC") and incorporated by reference
into an effective registration statement previously filed with the SEC under
Rule 415 of the Securities Act of 1933, including in cases where the material
does not pertain to securities that are ultimately offered for sale pursuant to
such registration statement. Information contained in this material is current
as of the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. Any information in the material,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished solely by Goldman, Sachs & Co. and not by the issuer
of the securities or any of its affiliates. Goldman, Sachs & Co. is acting as
underwriter and not acting as agent for the issuer or its affiliates in
connection with the proposed transaction. The issuer has not prepared or taken
part in the preparation of these materials.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRELIMINARY DESCRIPTION OF INITIAL GROUP II (continued)
<S> <C> <C> <C>
Remaining Months % State Concentration %
WAM 352 m California 43.61
0 - 120 0.16 Ilinois 9.40
121 - 180 2.16 Colorado 6.52
181 - 240 1.18 Utah 4.31
241 - 360 96.50 Other 36.16
Principal Balance % Sevicer %
0 - 50M 7.31 Long Beach 86.68
50 - 100 27.09 Advanta 13.32
100 - 150 24.87
150 - 207 16.12 PAG (Amresco Credit Grade)
207 - 250 6.49 2 55.86
250 - 350 11.00 3 22.65
350 - 500 5.81 4 12.22
500 - 850 1.32 5 9.27
</TABLE>
- 4-
<PAGE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting this
material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may not
pertain to any securities that will actually be sold. The information contained
in this material may be based on assumptions regarding market conditions and
other matters as reflected therein. We make no representations regarding the
reasonableness of such assumptions or the likelihood that any of such
assumptions will coincide with actual market conditions or events, and this
material should not be relied upon for such purposes. We and our affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of this material may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned therein or
derivatives thereof (including options). This material may be filed with the
Securities and Exchange Commission (the "SEC") and incorporated by reference
into an effective registration statement previously filed with the SEC under
Rule 415 of the Securities Act of 1933, including in cases where the material
does not pertain to securities that are ultimately offered for sale pursuant to
such registration statement. Information contained in this material is current
as of the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. Any information in the material,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished solely by Goldman, Sachs & Co. and not by the issuer
of the securities or any of its affiliates. Goldman, Sachs & Co. is acting as
underwriter and not acting as agent for the issuer or its affiliates in
connection with the proposed transaction. The issuer has not prepared or taken
part in the preparation of these materials.
- --------------------------------------------------------------------------------
August 19, 1996
$311.08 mm (approx) Class A Certificates
AMRESCO RESIDENTIAL SECURITES CORPORATION MORTGAGE LOAN TRUST 1996-4
Final Structure
<TABLE>
<CAPTION>
Expected Legal
Face Interest First Payment Avg. Life Backed by Final
Class Amount Rate Date(1) (4) Loan Group Payment Date
- ----- ------ ---- ---- --- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
A1 $ 9,163,000 6.03% September 25, 1996 0.71 yrs. Loan Group I February 2006
at pricing
A2 $ 22,400,000 6.37% September 25, 1996 1.2 yrs. Loan Group I October 2014
A3 $ 17,600,000 6.85% September 25, 1996 3.1 yrs. Loan Group I April 2021
A4 $ 10,670,000 7.25% September 25, 1996 5.2 yrs. Loan Group I October 2023
A5 $ 13,100,000 7.60%(2) September 25, 1996 9.6 yrs. Loan Group I October 2027
A6 $238,146,000 1 mo. LIBOR + September 25, 1996 3.8 yrs. Loan Group II October 2027
31bp(3)
<FN>
(1) Payment Dates are the 25th of each respective month, or if such day is not
a business day, the next succeeding business day.
(2) If Clean Up Call is not exercised, coupon will step up 0.75%.
(3) The lesser of (i) prior to Clean Up Call, 0.31%, after Clean Up Call, 0.62%
and (ii) An Available Funds Cap.
(4) Assumes 115% of a base scenario where the Loans prepay at 5% CPR in the
first month of the life of the mortgage loans and increases ratably to 20%
CPR by month 12. Remains constant at 20% CPR thereafter. Average lives for
Class A-5 and A-6 assume 10% clean up call is not exercised; if exercised,
average lives would be 8.2 yrs and 3.5 yrs.
</FN>
</TABLE>
Managers: CS First Boston (books), Goldman, Sachs & Co., Prudential
- -------- Securities
Structure: Two Pool Groups; MBIA Certificate Insurance Policy,
- --------- Overcollateralization, Cross-Collateralization, Pre-Funding
Account and Capitalized Interest Acct.
Ratings(expected): Moodys/S&P: Aaa/AAA
- ----------------
Collateral: Initial Mortgage Loans: approx $270 mm with Subsequent
- ---------- Pre-Funded Mortgage Loans: approx $41 mm
The Mortgage Loans will be comprised of loans from Advanta
Mortgage Corporation USA, Long Beach Mortgage Company and
Option One. Group I Loans are fixed rate and Group II Loans
are generally LIBOR-based loans.
Credit Enhancement: i) MBIA Financial Guaranty Insurance Policy that will
- ------------------ provide for 100% coverage of the principal amount of, and
scheduled interest due on, the Class A Certificates; ii)
overcollateralization through a limited acceleration of the
Class A Certs; iii) overcollateralization across the two
pool groups will also be available; iv) excess monthly cash
flow on a current basis.
Pricing/Settlement
Date: August 16, 1996/August 28, 1996
- -----
- 1-
<PAGE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting this
material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may not
pertain to any securities that will actually be sold. The information contained
in this material may be based on assumptions regarding market conditions and
other matters as reflected therein. We make no representations regarding the
reasonableness of such assumptions or the likelihood that any of such
assumptions will coincide with actual market conditions or events, and this
material should not be relied upon for such purposes. We and our affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of this material may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned therein or
derivatives thereof (including options). This material may be filed with the
Securities and Exchange Commission (the "SEC") and incorporated by reference
into an effective registration statement previously filed with the SEC under
Rule 415 of the Securities Act of 1933, including in cases where the material
does not pertain to securities that are ultimately offered for sale pursuant to
such registration statement. Information contained in this material is current
as of the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. Any information in the material,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished solely by Goldman, Sachs & Co. and not by the issuer
of the securities or any of its affiliates. Goldman, Sachs & Co. is acting as
underwriter and not acting as agent for the issuer or its affiliates in
connection with the proposed transaction. The issuer has not prepared or taken
part in the preparation of these materials.
- --------------------------------------------------------------------------------
AMERESCO Residential Securities Corporation Series 1996-4
RELIMINARY DESCRIPTION OF INITIAL GROUP I MORTGAGE LOANS
828 loans for $64.9 mm
Fixed Rate Loans
----------------
<TABLE>
<CAPTION>
Gross Mortgage % Original LTV %
Interest Rate
<S> <C> <C> <C>
Wtd Avg 10.65 WTD Avg LTV 67.44
7.50 - 7.99% 0.40 10 - 50% 10.59
8.00 - 8.49 1.30 50 - 60 14.06
8.50 - 8.99 5.20 60 - 65 11.67
9.00 - 9.49 5.58 65 - 70 20.13
9.50 - 9.99 23.68 70 - 75 22.71
10.00 - 10.49 11.99 75 - 80 15.46
10.50 - 10.99 20.80 80 - 85 2.98
11.00 - 11.49 8.41 85 - 90 2.39
11.50 - 11.99 10.38
12.00 - 16.75 12.27 Occupancy Status %
Owner 92.11
Age % Non-Owner 7.89
Wtd Avg --
Less than 6 m --
Property Type %
Remaining Months % Single Family 86.40
WAM 323 2 - 4 Units 7.38
121 - 180 16.44 PUD 2.94
181 - 240 1.68 Condominium 2.73
168 - 360 81.88 Mobile Homes 0.28
Townhouses 0.18
Five Units 0.09
Principal Balance % State Concentration %
0 - 50M 13.32 California 46.90
50 - 100 42.85 Utah 7.44
100 - 150 27.92 Colorado 6.81
150 - 207 9.11 Oregon 5.56
207 - 250 1.38 Florida 5.30
250 - 350 4.53 Washington 4.22
500 - 650 0.89 Other 23.77
Sevicer %
PAG (Ameresco Credit Grade) Advanta 69.70
1 1.49 Option One 30.30
2 54.23
3 28.77
4 8.21
5 7.29
</TABLE>
-2-
<PAGE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting this
material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may not
pertain to any securities that will actually be sold. The information contained
in this material may be based on assumptions regarding market conditions and
other matters as reflected therein. We make no representations regarding the
reasonableness of such assumptions or the likelihood that any of such
assumptions will coincide with actual market conditions or events, and this
material should not be relied upon for such purposes. We and our affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of this material may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned therein or
derivatives thereof (including options). This material may be filed with the
Securities and Exchange Commission (the "SEC") and incorporated by reference
into an effective registration statement previously filed with the SEC under
Rule 415 of the Securities Act of 1933, including in cases where the material
does not pertain to securities that are ultimately offered for sale pursuant to
such registration statement. Information contained in this material is current
as of the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. Any information in the material,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished solely by Goldman, Sachs & Co. and not by the issuer
of the securities or any of its affiliates. Goldman, Sachs & Co. is acting as
underwriter and not acting as agent for the issuer or its affiliates in
connection with the proposed transaction. The issuer has not prepared or taken
part in the preparation of these materials.
- --------------------------------------------------------------------------------
AMERSCO Residential Securities Corporation Series 1996-4
PRELIMINARY DESCRIPTION OF INITIAL GROUP II MORTGAGE LOANS
1,966 loans for $205.1 mm
Floating Rate Loans
<TABLE>
<CAPTION>
Gross Mortgage % Original LTV %
Interest Rate
<S> <C> <C> <C>
Wtd Avg 9.90 WTD Avg LTV 72.47
6.50 - 6.99% 1.77 under 50% 3.72
7.00 - 7.49 1.52 50 - 60 8.75
7.50 - 7.99 5.71 60 - 65 8.15
8.00 - 8.49 4.97 65 - 70 13.11
8.50 - 8.99 15.14 70 - 75 29.03
9.00 - 9.49 8.92 75 - 80 27.62
9.50 - 9.99 23.18 80 - 85 8.09
10.00 - 10.49 7.17 85 - 90 1.53
10.50 - 10.99 13.29
11.00 - 11.49 4.31 Occupancy Status %
11.50 - 11.99 5.21 Owner Occupied 89.85
12.00 - 14.99+ 8.44 Non-Owner Occupied 10.15
Gross Margin % Age 2 months
Wtd Avg 6.18
3.50 - 3.749 1.07
3.75 - 3.99 2.08 Next Adjustment Date %
4.00 - 4.249 2.46 WTD Avg MTR 7.0
4.25 - 4.49 2.81 09/01/96 0.02
4.50 - 4.749 1.99 11/01/96 1.08
4.75 - 4.99 3.27 12/01/96 29.34
5.00 - 5.249 5.81 01/01/97 39.28
5.25 - 5.49 5.45 02/01/97 18.03
5.50 - 5.749 5.31 03/01/97 0.51
5.75 - 5.99 7.06 06/01/98 2.37
6.00 - 6.249 4.48 07/01/98 3.55
6.25 - 6.49 5.40 07/05/98 0.07
6.50 - 6.749 12.16 08/01/98 5.32
6.75 - 6.99 14.45 09/01/98 0.35
7.00 - 7.249 7.99 11/01/99 0.08
7.25 - 7.49 11.59
7.50 -10.30 6.63
LifeTime Caps % Property Type %
Weighted Average 16.88 Single Family 83.42
0.00 - 14.99 9.25 Apartments 2 - 4 Units 6.74
15.00 - 15.99 20.43 PUD 5.93
16.00 - 16.99 31.62 Condominium 3.56
17.00 - 17.99 20.46 Mobile Homes 0.27
18.00 - 18.99 9.53 Townhouses 0.09
19.00 - 24.80 8.71
</TABLE>
- 3 -
<PAGE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting this
material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may not
pertain to any securities that will actually be sold. The information contained
in this material may be based on assumptions regarding market conditions and
other matters as reflected therein. We make no representations regarding the
reasonableness of such assumptions or the likelihood that any of such
assumptions will coincide with actual market conditions or events, and this
material should not be relied upon for such purposes. We and our affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of this material may, from time to time, have long or
short positions in, and buy and sell, the securities mentioned therein or
derivatives thereof (including options). This material may be filed with the
Securities and Exchange Commission (the "SEC") and incorporated by reference
into an effective registration statement previously filed with the SEC under
Rule 415 of the Securities Act of 1933, including in cases where the material
does not pertain to securities that are ultimately offered for sale pursuant to
such registration statement. Information contained in this material is current
as of the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. Any information in the material,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished solely by Goldman, Sachs & Co. and not by the issuer
of the securities or any of its affiliates. Goldman, Sachs & Co. is acting as
underwriter and not acting as agent for the issuer or its affiliates in
connection with the proposed transaction. The issuer has not prepared or taken
part in the preparation of these materials.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRELIMINARY DESCRIPTION OF INITIAL GROUP II (continued)
<S> <C> <C> <C>
Remaining Months % State Concentration %
WAM 352 m California 43.61
0 - 120 0.16 Ilinois 9.40
121 - 180 2.16 Colorado 6.52
181 - 240 1.18 Utah 4.31
241 - 360 96.50 Other 36.16
Principal Balance % Sevicer %
0 - 50M 7.31 Long Beach 86.68
50 - 100 27.09 Advanta 13.32
100 - 150 24.87
150 - 207 16.12 PAG (Amresco Credit Grade)
207 - 250 6.49 2 55.86
250 - 350 11.00 3 22.65
350 - 500 5.81 4 12.22
500 - 850 1.32 5 9.27
</TABLE>
- 4-
AMRESCO Residential Securities Corporation
Mortgage Loan Trust
Series 1996-4 Class A Certificates
AMRESCO 1996-4
---------------------------------------------
$[ 9,163,000] Class A-1 Fixed Rate Certificates - [6.030%]
$[ 22,400,000] Class A-2 Fixed Rate Certificates - [6.370%]
$[ 17,600,000] Class A-3 Fixed Rate Certificates - [6.850%]
$[ 10,670,000] Class A-4 Fixed Rate Certificates - [7.250%]
$[ 13,100,000] Class A-5 Fixed Rate Certificates - [7.600%]
$[238,146,000] Class A-6 Floating Rate Certificates - 1M LIBOR+ [0.31%]
The information herein has been provided solely by PSI based on information with
respect to the structuring assumptions provided by CS First Boston and mortgage
loans provided by AMRESCO Residential Securities Corporation and its affiliates
("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
Commission (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 consumated 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.
<PAGE>
AMRESCO Residential Securities Corporation
Mortgage Loan Trust
Series 1996-4 Class A Certificates
ALL CERTIFICATES
----------------
Title of Securities: AMRESCO Residential Securities Corporation Mortgage Loan
Trust 1996-4,
Group I: Class A-1 though Class A-5 (the "Fixed Rate
Certificates")
Group II: Class A-6 (the "Adjustable Rate Certificates")
Depositor: AMRESCO Residential Securities Corporation
Seller: AMRESCO Residential Mortgage Corporation
Servicers: - Long Beach Mortgage Company, Option One Mortgage Corp.
and Advanta Mortgage Corp. USA will each service a
portion of the underlying collateral for the Group I
Fixed Rate Certificates and Group II Adjustable Rate
Certificates.
Servicer Fee: 50 bps per annum
Trustee: Bankers Trust Company of California, N.A.
Pricing Date: August [16], 1996
Settlement Date: August [28], 1996
Principal Paydown: - All Group I principal pays the Group I Fixed Rate
Certificates (Classes A-1 through A-5) sequentially.
However, Class A-1 is a PAC bond and Class A-2 is a
companion bond. - All Group II principal is passed
through to Class A-6.
Flow of Funds: GROUP I AND GROUP II MONTHLY CASH FLOWS
1) to each Servicer, any unreimbursed advanced on a
mortgage loan which is determined by the respective
Servicer, in its good faith judgment, to not be
ultimately recoverable from either any future
collections on such mortgage loan or upon
liquidation;
2) to each Servicer, the Servicer Fee;
3) to the Certificate Insurer, the Premium;
4) to the Trustee, the Trustee Fee;
GROUP I MONTHLY CASH FLOWS
5) accrued monthly interest pro-rata to the Class A-1,
A-2, A-3, A-4 and A-5 Certificates;
6) Class A-1 to scheduled balance; Class A-2 until
retired; Class A-1 until retired; Sequentially to
A-3, A-4, and A-5;
7) to the Surety Provider, any unreimbursed draws;
8) to O/C up to its target amount as described below;
9) to Class A-6, if needed;
10) to Subordinated IO holder; and
11) to the Class R Certificate holders.
GROUP II MONTHLY CASH FLOWS
5) accrued monthly interest to the Class A-6
Certificates;
6) monthly principal to the Class A-6 Certificates;
7) to the Surety Provider, any unreimbursed draws;
8) to O/C up to its target amount as described below;
9) to Classes A-1, A-2, A-3, A-4 or A-5, if needed;
10) to Subordinated IO holder; and
11) to the Class R Certificate holders.
FOR A COMPLETE DESCRIPTION OF THE FLOW OF FUNDS, PLEASE REFER TO THE PROSPECTUS
SUPPLEMENT SECTION TITLED "DESCRIPTION OF THE CLASS A CERTIFICATES -
DISTRIBUTIONS"
Credit Enhancement: A combination of:
- Excess monthly cash flow
- Overcollateralization
- Cross-collateralization
- 100% wrap from MBIA guaranteeing timely interest and
ultimate principal.
Prepayment Speed: Prepayment speeds have been modelled using a ramp
from 5.0% CPR in month 1 to 20% CPR in month 12 and
thereafter; specifically, speeds will increase 1.364%
per month until month 12. Pricing Speed for the
transaction is 115% of the ramp.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
THIS STRUCTURAL TERMSHEET SUPERSEDES ANY PREVIOUS STRUCTURAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE STRUCTURAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
<PAGE>
AMRESCO Residential Securities Corporation
Mortgage Loan Trust
Series 1996-4 Class A Certificates
ALL CERTIFICATES (cont.)
------------------------
Overcollateralization: The credit enhancement provisions of the Trust are
intended to provide for the limited acceleration of the
Certificates relative to the amortization of the related
collateral, generally in the early months of the
transaction. Accelerated amortization is achieved by
applying certain excess interest collected on the
collateral to the payment of principal on the
Certificates, resulting in the build up of
overcollateralization ("O/C"). By paying down the
principal balance of the certificates faster than the
principal amortization of the respective collateral pool,
an overcollateralization amount equal to the excess of
the aggregate principal balance of the Collateral Pool
over the principal balance of the related Certificates is
created. Excess cashflow will be directed to build the
O/C amount until the pool reaches its required O/C
target. Upon this event the acceleration feature will
cease, unless it is once again necessary to maintain the
required O/C level. Overcollateralization: Initial O/C:
Group I -- [0.0%] O/C Target: Group I -- [1.75%] Levels
(Approx.) Group II --[0.0%] Group II --[3.00%]
O/C Cushion (Adjustable): [.50%]
These O/C percentages are subject to step downs
beginning in month 30 if certain tests are met.
Certificate Insurer: MBIA
MBIA's claims-paying ability is rated AAA/Aaa/AAA by
Standard & Poor's, Moody's and Fitch.
Certificate Ratings: The Class A Certificates will be rated AAA by Standard &
Poor's, Aaa by Moody's Investors Service and AAA by Fitch
Investors Service
Clean-up Calls: The Residual Holder has the option to excercise a call
when the outstanding Certificate Balance equals 10% or
less of the original principal balance of the
Certificates. If such call is not exercised, the
Servicers will have the option to purchase the mortgage
loans when the outstanding Certificate Balance has
declined to 5% of original. Each call will be excercised
at par plus accrued interest.
ERISA Consideration: The Class A Certificates will be ERISA
eligible. However, investors should consult with their
counsel with respect to the consequences under ERISA
and the Internal Revenue Code of the Plan's acquisition
and ownership of such Certificates.
SMMEA Considerations: All Class A Certificates will be SMMEA eligible.
Taxation: REMIC.
Prospectus: The Certificates are being offered pursuant to a
Prospectus which includes a Prospectus Supplement
(together, the "Prospectus"). Complete information with
respect to the Certificates and the Collateral is
contained in the Prospectus. The foregoing is qualified
in its entirety by the information appearing in the
Prospectus. To the extent that the foregoing is
inconsistent with the Prospectus, the Prospectus shall
govern in all respects. Sales of the Certificates may
not be consumated unless the purchaser has received the
Prospectus.
Further Information: Call the desk at (212) 778-2741, Januar Laude at
(212)778-7176, Mike Cordry at (212)778-2840, Sean Low at
(212)778-2581 or Sam Ferrell at (212)778-4944 with any
questions.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
THIS STRUCTURAL TERMSHEET SUPERSEDES ANY PREVIOUS STRUCTURAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE STRUCTURAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
<PAGE>
AMRESCO Residential Securities Corporation
Mortgage Loan Trust
Series 1996-4, Class A-1 through A-5 Certificates
- --------------------------------------------------------------------------------
GROUP I
CLASSES A-1 THROUGH A-5 FIXED RATE CERTIFICATES
Collateral: Group One: Fixed Rate, First Lien Mortgage Loans.
Approximate Group Size: [$72,933,000]
<TABLE>
<CAPTION>
Class A-1 Class A-2 Class A-3 Class A-4 Class A-5
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Approximate Face Amount: [$9,163,000] [$22,400,000] [$17,600,000] [$10,670,000] [$13,100,000]
Avg Life to 10% Call Date: [0.71] years [1.20] years [3.09] years [5.20] years [8.25] years
Avg. Life to Maturity (app.) [0.71] years [1.20] years [3.10] years [5.20] years [9.58] years
Pass-Through Rate: [6.03]% [6.37]% [6.85]% [7.25]% [7.60]% or [8.35]% after
the Clean-Up Call date
Price [99-20] [99-21+] [99-24] [99-31+] [99-29]
Spread: [50 bps] [62 bps] [75 bps] [94 bps] [117 bps]
Pricing Speed 115% of Ramp 115% of Ramp 115% of Ramp 115% of Ramp 115% of Ramp
Yield (CBE): [6.07]% [6.37]% [6.87]% [7.25]% [7.73]%
Day Count: 30/360 30/360 30/360 30/360 30/360
Expected Maturity: [12/25/97] [10/25/98] [11/25/00] [01/25/03] [12/25/14]
(at pricing speed)
</TABLE>
PAC Bands: 10.0% CPR to 30.0% CPR (no ramp)
Pre-Funding Account: On the closing date, approximately [$8,000,000] will be
deposited in a pre-funding account for the purchase of
additional fixed rate mortgage loans. From the closing
date until [October] 20,1996, the Trust intends to
purchase mortgage loans up to the entire pre-funding
amounts. The additional mortgage loans, purchaed with
funds deposited in the prefunding account, will be
subject to certain individual and aggregate group
characteristics that will be more fully described in the
Prospectus Supplement.
Funds remaining in the pre-funding account will be
distributed sequentially to the Class A-1, A-2, A-3, A-4
and A-5 Certificateholders as prepayments based on the
cash flow priority on the [October], 1996 distribution
date.
Payment Date: The 25th day of each month or, if such day is not a
business day, the next succeeding business day,
beginning on [September 25], 1996.
Payment Delay: 24 days.
Coupon Step-Up: If the Cleanup Call is not exercised, the coupon on the
Class A-5 Certificates shall be [8.35%] per annum.
Interest Accrual
eriod: For Certificate Classes A-1 through A-5, interest will
accrue from the 1st day of the preceeding month until
the 30th day of the preceeding month.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
THIS STRUCTURAL TERMSHEET SUPERSEDES ANY PREVIOUS STRUCTURAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE STRUCTURAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
<PAGE>
AMRESCO Residential Securities Corporation
Mortgage Loan Trust
Series 1996-4 Class A-6 Certificates
- --------------------------------------------------------------------------------
GROUP II
CLASS A-6 ADJUSTABLE RATE CERTIFCATES
Prepayment Assumption: 115% of Ramp
Approximate Face Amount: [$238,146,000]
Average Life to Call: [3.50] years
Interest Payment: actual/360
Price: 100-00
Pass-Through Rate: The lesser of:
1) One Month LIBOR + [31] bps
2) The Available Funds Cap
After the Clean-up Call, the lesser of:
1) One Month LIBOR + [62] bps
2) The Available Funds Cap
Available Funds Cap: A rate equal to the weighted average net
coupon rate (i.e., the weighted average coupon rate
less [1.130%] for servicing fees, trustee fees,
certificate insurer premiums and reserve strip) for the
Group II adjustable-rate mortgage loans for such
Payment Date.
Yield: Variable
Expected Maturity: [12/25/15] at pricing speed
Pre-Funding Account: On the closing date, approximately [$33,000,000] will
be deposited in a pre-funding account for the purchase
of additional adjustable rate mortgage loans. From the
closing date until [October] 20,1996, the Trust intends
to purchase mortgage loans up to the entire pre-funding
amounts. The additional mortgage loans, purchaed with
funds deposited in the prefunding account, will be
subject to certain individual and aggregate group
characteristics that will be more fully described in
the Prospectus Supplement.
Funds remaining in the pre-funding account will be
distributed to the Class A-6 Certificateholders as
prepayments on the [October], 1996 distribution date.
Coupon Step-Up: If the Cleanup Call is not exercised, the coupon on the
Class A-6 Certificates shall be raised to LIBOR + [62]
bps subject to the Available Funds Cap.
Payment Date: The 25th day of each month or, if such day is not a
business day, the next succeeding business day,
beginning on September 25, 1996.
Interest Accrual Period: Interest will accrue from the 25th day of the
preceeding month until the 24th day of the current
month (from Payment Date to Payment Date).
Interest and Payment
Adjusments: The interest rates and payments on the underlying
mortgage loans will generally adjust semi-annually.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
THIS STRUCTURAL TERMSHEET SUPERSEDES ANY PREVIOUS STRUCTURAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE STRUCTURAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
<PAGE>
AMRESCO Residential Securities Corporation
Mortgage Loan Trust
<TABLE>
<CAPTION>
Available Pool
Information LONG BEACH (ARMs Only) OPTION ONE (Fixed Only)
---------- ----------
<S> <C> <C>
Loans: 1759 Loans: 313
Balance: $177,826,732 Balance: $19,671,797
WAC: 9.94% WAC: 11.54%
WAM: 351 WAM: 327
WAGM: 6.05% WALTV: 67.61%
WALTV: 72.97%
Credit Grade: A- 46.11% Credit Grade: AA 11.61%
B+ 10.50% A 44.56%
B 10.70% B 25.45%
B- 12.01% C 10.93%
C 14.09% CC 7.45%
C- 6.59%
ADVANTA (Fixed) ADVANTA (ARMs)
---------- ----------
Loans: 515 Loans: 207
Balance: $45,261,747 Balance: $27,320,091
WAC: 10.26% WAC: 9.64%
WAM: 344 WAM: 358
WALTV: 67.35% WAGM: 7.02%
WALTV: 72.09%
Credit Grade: A+ 9.94% Credit Grade: A+ 16.36%
A 2.14% A 34.59%
A- 43.45% B 22.28%
B 30.21% C 16.60%
C 9.55% C- 8.51%
C- 1.58% D1 1.04%
D 2.80% D2 0.08%
D1 0.09% D3 0.55%
D2 0.12%
D3 0.13%
</TABLE>
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
THIS STRUCTURAL TERMSHEET SUPERSEDES ANY PREVIOUS STRUCTURAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE STRUCTURAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
