IMPAC SECURED ASSETS CORP.
Company
IMPAC FUNDING CORPORATION
Master Servicer and Seller
Mortgage Pass-Through Certificates,
Series 1997-3
$0.00 Variable Rate Class A-10 Certificates
----------
Supplement dated August 13, 1999
to
Prospectus supplement dated September 24, 1997
to
Prospectus dated September 24, 1997
----------
The Class A-10 Certificates had an initial notional amount of
$324,123,628.54, and initially was issued on September 29, 1997. After giving
effect to the distribution made on July 26, 1999, the current notional amount is
$163,035,007.42.
Greenwich Capital Markets, Inc., or the Class A-10 underwriter, will
purchase from the Company its 50 percent interest in the Class A-10 Certificates
pursuant to a Class A-10 underwriting agreement dated August 13, 1999, among
Impac Secured Assets Corp., f/k/a ICIFC Secured Assets Corp., or the company,
Impac Funding Corporation, f/k/a ICI Funding Corporation, or the master
servicer, and the Class A-10 underwriter.
The Class A-10 underwriter may offer the Class A-10 Certificates from
time to time to the public in negotiated transactions or otherwise at varying
prices to be determined at the time of sale. The Class A-10 underwriter may
effect those transactions by selling the Class A-10 Certificates to or through
dealers. In connection with the purchase and sale of the Class A-10
Certificates, the Class A-10 underwriter and any dealers that may participate
with the Class A-10 underwriter in that resale of the Class A-10 Certificates
may be deemed to have received compensation from the company in the form of
discounts or commissions or, in the case of such dealers, compensation from the
Class A-10 underwriter in the form of discounts, concessions or commissions. The
Class A-10 underwriting agreement provides that the company will indemnify the
Class A-10 underwriter against certain civil liabilities under the Securities
Act of 1933, as amended, or contribute to payments required to be made in
respect thereof. There is currently no secondary market for the Class A-10
Certificates. There can be no assurance that an active secondary market will
develop, or if it does develop, that it will continue.
GREENWICH CAPITAL MARKETS, INC.
<PAGE>
THIS SUPPLEMENT MUST BE DELIVERED TOGETHER WITH THE PROSPECTUS AND PROSPECTUS
SUPPLEMENT REFERRED TO ABOVE, AND SHOULD BE READ IN CONJUNCTION WITH THOSE
DOCUMENTS.
UNTIL NOVEMBER 12, 1999, ALL DEALERS EFFECTING TRANSACTIONS IN THE CLASS A-10
CERTIFICATES, WHETHER OR NOT PARTICIPATING IN THIS DISTRIBUTION, MAY BE REQUIRED
TO DELIVER A PROSPECTUS (INCLUDING THE PROSPECTUS SUPPLEMENT AND THIS
SUPPLEMENT). THIS DELIVERY REQUIREMENT IS IN ADDITION TO THE OBLIGATION OF
DEALERS TO DELIVER A PROSPECTUS WHEN ACTING AS UNDERWRITERS AND AS TO THEIR
UNSOLD ALLOTMENTS OR SUBSCRIPTIONS.
2
<PAGE>
The following information updates and replaces the applicable
information provided in the prospectus supplement.
DESCRIPTION OF THE MORTGAGE POOL
General
Presented below is a description of various characteristics of the
mortgage loans as of August 1, 1999, except as otherwise indicated. All
percentages of the mortgage loans are approximate percentages by aggregate
principal balance as of the August 1, 1999, except as otherwise indicated.
Unless otherwise specified, all principal balances of the mortgage loans are as
of the August 1, 1999 and are rounded to the nearest dollar.
<TABLE>
<CAPTION>
ORIGINAL MORTGAGE LOAN AMOUNT
PERCENTAGE OF
AUGUST 1, 1999
MORTGAGE LOAN NUMBER OF AGGREGATE UNPAID AGGREGATE
PRINCIPAL BALANCE MORTGAGE LOAN PRINCIPAL BALANCE PRINCIPAL BALANCE
----------------- ------------- ----------------- -----------------
<S> <C> <C> <C>
$ 0.01 - $ 50,000.00......... 73 $ 3,030,739 1.86%
$ 50,000.01 - $ 100,000.00......... 391 29,301,072 17.97
$100,000.01 - $ 150,000.00......... 404 48,942,904 30.02
$150,000.01 - $ 200,000.00......... 181 30,453,601 18.68
$200,000.01 - $ 250,000.00......... 91 19,795,847 12.14
$250,000.01 - $ 300,000.00......... 51 13,563,152 8.32
$300,000.01 - $ 350,000.00......... 27 8,446,972 5.18
$350,000.01 - $ 400,000.00......... 12 4,363,457 2.68
$400,000.01 - $ 450,000.00......... 2 849,974 0.52
$450,000.01 - $ 500,000.00......... 7 3,184,517 1.95
$500,000.01 - $ 550,000.00......... 1 498,916 0.31
$600,000.01 - $ 650,000.00......... 1 603,856 0.37
----- ------------ ------
Total.......................... 1,241 $163,035,007 100.00%
===== ============ ======
</TABLE>
The average original principal balance of the mortgage loans will be
approximately $134,638.
3
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL BALANCES OF THE MORTGAGE LOANS AS OF AUGUST 1, 1999
PERCENTAGE OF
AUGUST 1, 1999
MORTGAGE LOAN NUMBER OF AGGREGATE UNPAID AGGREGATE
PRINCIPAL BALANCE MORTGAGE LOAN PRINCIPAL BALANCE PRINCIPAL BALANCE
----------------- ------------- ----------------- -----------------
<S> <C> <C> <C>
$ 0.01 - $ 50,000.00........ 84 $ 3,539,229 2.17%
$ 50,000.01 - $100,000.00........ 402 30,922,394 18.97
$100,000.01 - $150,000.00........ 397 49,012,172 30.06
$150,000.01 - $200,000.00........ 179 30,814,937 18.90
$200,000.01 - $250,000.00........ 86 19,155,611 11.75
$250,000.01 - $300,000.00........ 49 13,431,946 8.24
$300,000.01 - $350,000.00........ 24 7,682,149 4.71
$350,000.01 - $400,000.00........ 10 3,732,824 2.29
$400,000.01 - $450,000.00........ 3 1,299,320 0.80
$450,000.01 - $500,000.00........ 6 2,840,569 1.74
$600,000.01 - $650,000.00........ 1 603,856 0.37
----- ------------ ------
Total........................ 1,241 $163,035,007 100.00%
===== ============ ======
</TABLE>
The average current principal balance of the mortgage loans will be
approximately $131,374.
4
<PAGE>
<TABLE>
<CAPTION>
MORTGAGE RATES
PERCENTAGE OF
AUGUST 1, 1999
NUMBER OF AGGREGATE UNPAID AGGREGATE
MORTGAGE RATES MORTGAGE LOAN PRINCIPAL BALANCE PRINCIPAL BALANCE
-------------- ------------- ----------------- -----------------
<S> <C> <C> <C>
7.000% -7.499%................... 2 $ 107,919 0.07%
7.500% -7.999%................... 12 2,189,725 1.34
8.000% -8.499%................... 86 14,481,849 8.88
8.500% -8.999%................... 466 64,750,691 39.72
9.000% -9.499%................... 486 59,534,683 36.52
9.500% -9.999%................... 147 17,250,433 10.58
10.000% - 10.499%................ 22 2,892,091 1.77
10.500% - 10.999%................ 15 1,369,329 0.84
11.000% - 11.499%................ 2 204,711 0.13
11.500% - 11.999%................ 3 253,576 0.16
----- ------------ ------
Total..................... 1,241 $163,035,007 100.00%
===== ============ ======
</TABLE>
The weighted average mortgage rate of the mortgage loans will be
approximately 8.979% per annum.
5
<PAGE>
<TABLE>
<CAPTION>
ORIGINAL LOAN-TO-VALUE RATIOS
PERCENTAGE OF
AUGUST 1, 1999
NUMBER OF AGGREGATE UNPAID AGGREGATE
ORIGINAL LOAN-TO-VALUE RATIOS MORTGAGE LOANS PRINCIPAL BALANCE PRINCIPAL BALANCE
- ------------------------------- --------------- ----------------- ------------------
<S> <C> <C> <C>
Less than or equal to 25.00.... 4 $ 272,667 0.17%
25.01% - 30.00%.............. 3 307,456 0.19
30.01% - 35.00%.............. 7 524,205 0.32
35.01% - 40.00%.............. 6 361,872 0.22
40.01% - 45.00%.............. 12 1,325,655 0.81
45.01% - 50.00%.............. 24 2,501,885 1.53
50.01% - 55.00%.............. 21 1,918,992 1.18
55.01% - 60.00%.............. 27 2,825,365 1.73
60.01% - 65.00%.............. 41 4,756,374 2.92
65.01% - 70.00%.............. 60 7,475,286 4.59
70.01% - 75.00%.............. 122 16,555,978 10.15
75.01% - 80.00%.............. 334 43,412,528 26.63
80.01% - 85.00%.............. 41 4,828,758 2.96
85.01% - 90.00%.............. 500 70,125,422 43.01
90.01% - 95.00%.............. 39 5,842,563 3.58
----- ------------ ------
Total....................... 1,241 $163,035,007 100.00%
===== ============ ======
</TABLE>
The minimum and maximum loan-to-value ratios at origination of the mortgage
loans were approximately 18.34% and 95.00%, respectively, and the weighted
average loan-to-value ratios at origination of the
mortgage loans was approximately 81.36%.
<TABLE>
<CAPTION>
MORTGAGE LOAN PROGRAM
PERCENTAGE OF
AUGUST 1, 1999
NUMBER OF AGGREGATE UNPAID AGGREGATE
LOAN PROGRAM MORTGAGE LOANS PRINCIPAL BALANCE PRINCIPAL BALANCE
- -------------------------------- --------------- ----------------- ------------------
<S> <C> <C> <C>
Full Documentation.............. 116 $ 16,175,697 9.92%
Limited Documentation........... 264 32,502,910 19.94
No Ratio........................ 118 15,857,388 9.73
Alternative Documentation....... 7 687,150 0.42
No Income/No Asset.............. 122 13,708,059 8.41
Express (Non-Verified Assets)... 586 79,423,025 48.72
Express (Verified Assets)....... 28 4,680,779 2.87
----- ------------ ------
Total....................... 1,241 $163,035,007 100.00%
===== ============ ======
</TABLE>
See "Description of the Mortgage Pool-- Underwriting Standards" in the
prospectus supplement for a description of ICI Funding's documentation programs.
6
<PAGE>
<TABLE>
<CAPTION>
RISK CATEGORIES OF MORTGAGE LOANS
PERCENTAGE OF
AUGUST 1, 1999
NUMBER OF AGGREGATE UNPAID AGGREGATE
CREDIT GRADE MORTGAGE LOANS PRINCIPAL BALANCE PRINCIPAL BALANCE
- -------------------------------- --------------- ----------------- ------------------
<S> <C> <C> <C>
A+(1)........................... 5 $ 1,062,351 0.65%
A(1)............................ 573 72,285,544 44.34
A-(1)........................... 45 5,271,541 3.23
B (1)........................... 3 222,451 0.14
C (1)........................... 1 89,317 0.05
Progressive Express 1(2)........ 277 36,875,533 22.62
Progressive Express 2(2)........ 268 37,459,181 22.98
Progressive Express 3(2)........ 39 5,303,897 3.25
Progressive Express 4(2)........ 25 4,017,399 2.46
Progressive Express 5(2)........ 5 447,794 0.27
---- ------------ -------
Total........................ 1,241 $163,035,007 100.00%
===== ============= =======
__________________
</TABLE>
(1) All of the mortgage loans were reviewed and placed into risk categories
generally based on the credit standards of the Progressive Program. See
"Description of the Mortgage Pool-- Underwriting Standards" in the prospectus
supplement.
(2) These mortgage loans were originated under ICI Funding's Progressive Express
Program. The underwriting for such mortgage loans is generally based on the
borrower's "FICO" score and therefore those mortgage loans do not correspond to
the alphabetical risk categories listed above. See "Description of the Mortgage
Pool-- Underwriting Standards" in the prospectus supplement.
7
<PAGE>
<TABLE>
<CAPTION>
OCCUPANCY TYPE
PERCENTAGE OF
AUGUST 1, 1999
NUMBER OF AGGREGATE UNPAID AGGREGATE
OCCUPANCY TYPE (AS INDICATED BY BORROWER) MORTGAGE LOANS PRINCIPAL BALANCE PRINCIPAL BALANCE
- ----------------------------------------- --------------- ----------------- ------------------
<S> <C> <C> <C>
Owner-Occupied Primary Residence......... 1,118 $151,593,721 92.98%
Second Homes............................. 61 6,404,384 3.93
Non-Owner Occupied....................... 62 5,036,903 3.09
----- ------------ ------
Total.............................. 1,241 $163,035,007 100.00%
===== ============ ======
</TABLE>
<TABLE>
<CAPTION>
PROPERTY TYPES
PERCENTAGE OF AUGUST 1,
NUMBER OF AGGREGATE UNPAID 1999 AGGREGATE
PROPERTY TYPE MORTGAGE LOANS PRINCIPAL BALANCE PRINCIPAL BALANCE
- ----------------------------------------- --------------- ----------------- -----------------------
<S> <C> <C> <C>
Single-family............................ 1,022 $137,724,092 84.48%
PUD...................................... 76 9,808,668 6.02
Condominium.............................. 96 9,553,571 5.86
Two- to Four-Family...................... 42 5,261,158 3.23
CondoHotel............................... 3 391,932 0.24
Deminimus PUD............................ 2 295,586 0.18
----- ------------ -------
Total.............................. 1,241 $163,035,007 100.00%
===== ============ ======
</TABLE>
8
<PAGE>
GEOGRAPHIC DISTRIBUTION OF MORTGAGED PROPERTIES
PERCENTAGE OF
AUGUST 1, 1999
NUMBER OF AGGREGATE UNPAID AGGREGATE
STATE MORTGAGE LOANS PRINCIPAL BALANCE PRINCIPAL BALANCE
- --------------------- --------------- ----------------- ------------------
California........... 261 43,460,805 26.66%
Other(1)............. 317 40,408,009 24.78
Florida.............. 307 32,563,365 19.97
New York............. 112 16,091,697 9.87
New Jersey........... 122 15,689,794 9.62
Texas................ 82 9,357,491 5.74
Nevada............... 40 5,463,846 3.35
-- ------------ ------
Total.......... 1,241 $163,035,007 100.00%
===== ============ ======
________________
(1) No more than 3% in any one state.
No more than approximately 0.54% of the mortgage loans will be secured by
mortgaged properties located in any one zip code.
<TABLE>
<CAPTION>
PURPOSES OF MORTGAGE LOANS
PERCENTAGE OF
AUGUST 1, 1999
NUMBER OF AGGREGATE UNPAID AGGREGATE
LOAN PURPOSE MORTGAGE LOANS PRINCIPAL BALANCE PRINCIPAL BALANCE
------------ --------------- ----------------- ------------------
<S> <C> <C> <C>
Purchase......................... 920 $120,126,222 73.68%
Refinance/Equity Take-Out........ 185 22,443,593 13.77
Refinance/No Equity Take-Out..... 128 19,480,311 11.95
Construction..................... 8 984,881 0.60
----- ------------ ------
Total......................... 1,241 $163,035,007 100.00%
===== ============ ======
</TABLE>
In general, in the case of a mortgage loan made for "rate/term" refinance
purposes, substantially all of the proceeds are used to pay in full the
principal balance of a previous mortgage loan of the mortgagor with respect to a
mortgaged property and to pay origination and closing costs associated with such
refinancing. mortgage loans made for "equity take out" refinance purposes may
involve the use of the proceeds to pay in full the principal balance of a
previous mortgage loan and related costs except that a portion of the proceeds
are generally retained by the mortgagor for uses unrelated to the mortgaged
property. The amount of such proceeds retained by the mortgagor may be
substantial.
9
<PAGE>
CERTAIN YIELD AND PREPAYMENT CONSIDERATIONS
The numbers listed for the Class A-10 Certificates in the table entitled
"Pre-Tax Yield to Maturity of the Variable Strip Certificates at the Following
Percentages of SPA" on page S-62 of the prospectus supplement are replaced with
the following numbers:
PRE-TAX YIELD TO MATURITY OF THE VARIABLE STRIP
CERTIFICATES AT THE FOLLOWING PERCENTAGES OF CPR
Assumed Purchase Price 0.00% 15.55% 31.10% 46.65% 62.20%
- ---------------------- ----- ------ ------ ------ ------
2.96875% ................ 51.9% 32.3% 10.7% (13.7)% (42.0)%
Solely as to the Class A-10 Certificates, the model, or prepayment
assumption, used to derive the yields above assumes a prepayment rate for the
mortgage loans based on CPR. CPR assumes that the outstanding principal balance
of a pool of mortgage loans prepays at a specified constant annual rate or CPR.
In generating monthly cash flows, this rate is converted to an equivalent
constant monthly rate. To assume 31.10% CPR or any other CPR percentage is to
assume that the stated percentage of the outstanding principal balance of the
pool is prepaid over the course of a year. No representation is made that the
mortgage loans will prepay at 31.10% CPR or any other rate.
STRUCTURING ASSUMPTIONS
The structuring assumptions described in clauses (i), (vi) and (ix) in the
last paragraph on page S-56 in the prospectus supplement are updated and
replaced by the following:
(i) the table entitled "Pre-Tax Yield to Maturity of the Variable Strip
Certificates at the Following Percentages of SPA" as modified above is based on
the actual characteristics of the mortgage loans as they appear on the systems
of the master servicer as of August 1, 1999.
(vi) payments on the Certificates will be received on the 25th day of each
month, commencing August 25, 1999;
(ix) the Certificates will be purchased on August 13, 1999;
10
<PAGE>
ADDITIONAL INFORMATION
The following information relating to the mortgage loans was contained in
the Statement to Certificateholders in connection with the distribution made on
July 26, 1999.
<TABLE>
<CAPTION>
DELINQUENT LOAN INFORMATION
31-60 Days 61-90 Days 91 or more days Total
---------- ---------- --------------- -----
<S> <C> <C> <C> <C>
Principal Balance - Loan $2,927,687.32 $69,966.32 $221,764.76 $3,219,418.40
Group I
Number of Loans - Loan 16 1 2 19
Group I
</TABLE>
<TABLE>
<CAPTION>
FORECLOSURE LOAN INFORMATION
31-60 Days 61-90 Days 91 or more days Total
---------- ---------- --------------- -----
<S> <C> <C> <C> <C>
Principal Balance - Loan $0 $0 $2,613,237.82 $2,613,237.82
Group I
Number of Loans - Loan 0 0 15 15
Group I
</TABLE>
<TABLE>
<CAPTION>
BANKRUPTCY LOAN INFORMATION
31-60 Days 61-90 Days 91 or more days Total
---------- ---------- --------------- -----
<S> <C> <C> <C> <C>
Principal Balance - Loan $0 $492,863.04 $983,631.89 $1,476,494.93
Group I
Number of Loans - Loan 0 2 8 10
Group I
</TABLE>
<TABLE>
<CAPTION>
REO LOAN INFORMATION
31-60 Days 61-90 Days 91 or more days Total
---------- ---------- --------------- -----
<S> <C> <C> <C> <C>
Principal Balance - Loan $0 $0 $809,226.11 $809,226.11
Group I
Number of Loans - Loan 0 0 5 5
Group I
</TABLE>
11
<PAGE>
Current Period Realized Losses $0.00
Prior Period Realized Loss Adjustment $(2,468.50)
Aggregate Realized Losses Since $112,322.32
Inception
Aggregate Amount of Recoveries on $0.00
previously foreclosed loans
Bankruptcy Amount $75,000.00
Fraud Loss Amount $2,706,410.59
Special Hazard Amount $2,314,000.00
12
