_________________________________________________________________
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): May 23, 1997
CWABS, INC., (as depositor under the Pooling and
Servicing Agreement, to be dated as of May 23, 1997,
providing for the issuance of the CWABS, INC., Asset-
Backed Certificates, Series 1997-2).
CWABS, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 333-11095 95-4596514
- ---------------------------- ----------- ------------------
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
4500 Park Granada
Calabasas, California 91302
------------------------- ----------
(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code (818) 225-3240
----- --------
_________________________________________________________________
Item 5. Other Events.
- ---- ------------
Filing of Certain Materials
- ---------------------------
Pursuant to Rule 424(b) under the Securities Act of 1933, concurrently
with, or subsequent to, the filing of this Current Report on Form 8-K (the
"Form 8-K"), CWABS, Inc. (the "Company") is filing a prospectus and
prospectus supplement with the Securities and Exchange Commission (the
"Commission") relating to its Asset-Backed Certificates, Series 1997-2.
In connection with the offering of the Asset-Backed Certificates, Series
1997-2, Lehman Brothers Inc. ("Prudential") and Countrywide Securities
Corporation ("Countrywide Securities" and together with Lehman, the
"Underwriters"), as underwriters of the Certificates, have prepared certain
materials (the "Computational Materials") for distribution to its potential
investors. Although the Company provided the Underwriters with certain
information regarding the characteristics of the Mortgage Loans in the
related portfolio, the Company did not participate in the preparation of the
Computational Materials.
For purposes of this Form 8-K, "Computational Materials" shall mean
computer generated tables and/or charts displaying, with respect to the
Certificates, any of the following: yield; average life; duration; expected
maturity; interest rate sensitivity; loss sensitivity; cash flow
characteristics; background information regarding the Mortgage Loans; the
proposed structure; decrement tables; or similar information (tabular or
otherwise) of a statistical, mathematical, tabular or computational nature.
The Computational Materials of the Underwriters are filed as Exhibit 99.1.
- -------------------
* Capitalized terms used and not otherwise defined herein shall have the
meanings assigned to them in the prospectus dated February 21 1997 and the
prospectus supplement dated May 23, 1997, of CWABS, Inc., relating to its
Asset-Backed Certificates, Series 1997-2.
Incorporation of Certain Documents by Reference
- -----------------------------------------------
Pursuant to Rule 411 of Regulation C under the Securities Act of 1933
and in reliance on Financial Security Assurance Holding Ltd. SEC No-Action
Letter, Financial Asset Securities Corp. ("FSA") will incorporate by
reference the financial statements of FSA into the Regirant's registration
statement (File No. 333-11095). The financial statements will be referred to
in the prospectus supplement relating to CWABS, Inc. Asset-Backed
Certificates, Series 1997-2. In connection with the incorporation of such
documents by reference, the Company is hereby filing the consent of Coopers &
Lybrand L.L.P. ("Coopers & Lybrand") to the use of their name in such
prospectus supplement. The consent of Coopers & Lybrand is attached hereto
as Exhibit 23.
Item 7. Financial Statements, Pro Forma Financial
- ---- -----------------------------------------
Information and Exhibits.
------------------------
(a) Not applicable.
(b) Not applicable.
(c) Exhibits:
23. Consent of Coopers & Lybrand L.L.P.
99.1 Computational Materials.
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.
CWMBS, INC.
By: /s/ David Walker
---------------------------
David Walker
Vice President
Dated: May 23, 1997
Exhibit Index
-------------
Exhibit Page
- ------- ----
23. Consent of Coopers & Lybrand L.L.P.
99.1 Computational Materials.
EXHIBIT 23: CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the Prospectus Supplement
dated May 23, 1997 (to Prospectus dated February 21, 1997) of CWABS, Inc.
relating to its Asset-Backed Certificates, Series 1997-2 of our report dated
January 24, 1997 on our audits of the consolidated financial statements of
Financial Security Assurance Inc. and Subsidiaries as of December 31, 1996
and 1995, and for each of the three years in the period ended December 31,
1996. We also consent to the reference to our firm under the caption
"Experts".
\s\ Coopers & Lybrand L.L.P.
--------------------------------------------
COOPERS & LYBRAND L.L.P.
New York, New York
May 23, 1997
EXHIBIT 99.1: COMPUTATIONAL MATERIALS
REVISED *
_______
DERIVED INFORMATION
-------------------
$180,000,000 Certificates (Approximate)
COUNTRYWIDE ASSET BACKED CERTIFICATES, SERIES 1997-2
COUNTRYWIDE HOME LOANS, INC. (SELLER AND MASTER SERVICER)
* The legal final maturity date has been revised. In addition, supplemental
collateral overview tables have been included.
SECURITIES OFFERED/(1)(2)/
- ------------------
<TABLE>
<CAPTION>
ESTIMATED EST. EXPECTED STATED EXPECTED
EXPECTED WAL/MDUR PRINCIPAL FINAL FINAL RATINGS
SECURITIES SIZE BENCHMARK (YRS) PMT. WINDOW MATURITY MATURITY (MOODY'S/S&P)
(MOS)
<S> <C> <C> <C> <C> <C> <C> <C>
To 10% Call 180,000,000 1 Mo LIBOR 3.35 / 2.81 99 months 8/25/2005 5/25/2027 Aaa/AAA
To Maturity 180,000,000 1 Mo. LIBOR 3.62 / 2.95 216 months 5/25/2015 5/25/2027 Aaa/AAA
</TABLE>
__________________________
(1) All securities are rated AAA/Aaa by S&P and Moody s.
(2) Prepayments are sized at 125% of the Prepayment Assumption. A 100%
Prepayment Assumption begins at 4% CPR in month one and increases by
1.455% CPR each month until it reaches 20% CPR in month 12, and remain
at 20% CPR thereafter.
SENSITIVITY ANALYSIS/(1)/
- --------------------
WEIGHTED AVERAGE LIFE /(2)/ AND PRINCIPAL PAYMENT WINDOW /(3)/
SENSITIVITY OF THE CERTIFICATES TO VARYING PREPAYMENT RATES
(ASSUMES 10% CLEAN UP CALL)
-------------------------
<TABLE>
<CAPTION>
0% 50% 100% 125% 150% 200% 250%
Window Window Window Window Window Window Window
WAL (months) WAL (months) WAL (months) WAL (months) WAL (months) WAL (months) WAL (months)
(yrs) (yrs) (yrs) (yrs) (yrs) (yrs) (yrs)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
21.54 349 7.82 232 4.16 125 3.35 99 2.81 82 2.10 59 1.67 45
</TABLE>
(ASSUMES NO CLEAN UP CALL)
------------------------
<TABLE>
<CAPTION>
0% 50% 100% 125% 150% 200% 250%
Window Window Window Window Window Window Window
WAL (months) WAL (months) WAL (months) WAL (months) WAL (months) WAL (months) WAL (months)
(yrs) (yrs) (yrs) (yrs) (yrs) (yrs) (yrs)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
21.58 360 8.21 349 4.49 265 3.62 216 3.02 179 2.26 128 1.79 97
</TABLE>
______________________________
(1) A 100% Prepayment Assumption begins at 4% CPR in month one and increases
by 1.455% CPR each month until it reaches 20% CPR in month 12, and remain
at 20% CPR thereafter. The prepayment sensitivity tables include average
lives and principal payment windows at varying percentages of the
prepayment assumption.
(2) The weighted average life of each of the Certificates is determined by
(i) multiplying the amount of each principal payment by the number of
years from the date of issuance to the related Distribution Date, (ii)
adding the results, and (iii) dividing the sum by the Original
Certificate Principal Balance.
(3) The window of the Certificates is the number of months during which
principal is repaid.
COLLATERAL SUMMARY
- ------------------
The collateral statistics for the Initial Mortgage Loans as of the Cut-Off
Date are listed below:
<TABLE>
<CAPTION>
AGGREGATE MTG. LOANS 6 MONTH LI LOANS 2/28 LOANS
-------------------- ---------------- ----------
<S> <C> <C> <C>
TOTAL NUMBER OF LOANS 1,327 307 1,020
TOTAL OUTSTANDING LOAN BALANCE $135,399,378 $36,509,655 $98,889,722
LEVEL PAY (% OF TOTAL) 100% 100% 100%
AVERAGE LOAN PRINCIPAL BALANCE $102,034 $118,924 $96,951
WEIGHTED AVERAGE COUPON 9.22% 8.58% 9.45%
WEIGHTED AVERAGE MARGIN 6.04% 5.96% 6.07%
WEIGHTED AVERAGE ORIG. TERM 359 Months 355 Months 360 Months
(MONTHS)
RANGE OF ORIGINAL TERMS (MONTHS) 180: 0.68% 180: 2.51% 360: 100.00%
360: 99.32% 360: 97.49%
WEIGHTED AVERAGE REMAINING TERM 359 Months 355 Months 360 Months
(MONTHS)
WEIGHTED AVERAGE LIFECAP 16.21% 15.58% 16.45%
WEIGHTED AVERAGE PERIODIC CAP 1.50% 1.50% 1.50%
WEIGHTED AVERAGE FLOOR 9.21% 8.58% 9.45%
WEIGHTED AVERAGE LTV 72.99% 74.56% 72.41%
LIEN POSITION (FIRST/SECOND) 100% / 0% 100% / 0% 100% / 0%
LOANS SUBJECT TO PREPAYMENT 52.87% 19.35% 65.25%
PROPERTY TYPE 81.73% 80.17% 82.30%
SINGLE FAMILY 3.12% 3.30% 3.05%
TWO TO FOUR FAMILY 3.12% 5.15% 2.37%
LOW RISE CONDO 0.27% 0.00% 0.37%
HIGH RISE CONDO 11.20% 10.45% 11.47%
PUD 0.57% 0.94% 0.43%
OTHER
OCCUPANCY STATUS
OWNER OCCUPIED 93.27% 93.20% 93.29%
NON-OWNER OCCUPIED 6.74% 6.80% 6.71%
AGGREGATE MTG. LOANS 6 MONTH LI LOANS 2/28 LOANS
-------------------- ---------------- ----------
GEOGRAPHIC DISTRIBUTION
*Other states account Northern CA 9.50% Northern CA 9.52% Northern CA 9.49%
individually for less than Southern CA 10.25% Southern CA 8.87% Southern CA 10.76%
4% of the Statistical WA 5.47% WI 6.68% CA 20.24%
Calculation Pool principal OH 5.35% WA 5.26% OH 6.04%
CO 4.98% MA 5.18% WA 5.55%
WI 4.83% CO 4.98% CO 4.98%
FL 4.57% IN 4.75% FL 4.84%
ID 4.40% IL 4.63% ID 4.57%
TX 4.31% UT 4.55% TX 4.34%
NC 4.42% WI 4.15%
TX 4.23%
AGGREGATE MTG. LOANS 6 MONTH LI LOANS 2/28 LOANS
-------------------- ---------------- ----------
NEXT RATE ADJUSTMENT DATE: 6/97: 0.32% 6/97: 1.20% 7/98: 0.12%
7/97: 0.15% 7/97: 0.55% 8/98: 0.22%
8/97: 0.05% 8/97: 0.17% 11/98: 0.08%
9/97: 1.42% 9/97: 5.25% 3/99: 4.28%
10/97: 13.50% 10/97: 50.08% 4/99: 46.26%
11/97: 11.52% 11/97: 42.74% 5/99: 49.03%
7/98: 0.09%
8/98: 0.16%
11/98: 0.06%
3/99: 3.13%
4/99: 33.79%
5/99: 35.81%
CREDIT CLASS /(1)/ A: 44.04% A: 47.09% A: 42.91%
A-: 28.42% A-: 27.56% A-: 28.74%
B: 16.06% B: 18.38% B: 15.21%
C: 7.33% C: 4.02% C: 8.56%
C-(D): 4.15% C-(D): 2.96% C-(D): 4.59%
DAYS DELINQUENT Current: 100.00% Current: 100.00% Current: 100.00%
</TABLE>
/(1)/ "A" borrowers represent borrowers who have been 1X30 days delinquent in
the last 12 months.
6 MONTH LIBOR MORTGAGE LOANS
- ----------------------------
<TABLE>
<CAPTION>
CURRENT
START RATE COUNT BALANCE %
<S> <C> <C> <C>
6.001 - 6.500 3 380,297.42 1.04
6.501 - 7.000 11 1,119,273.32 3.07
7.001 - 7.500 36 4,437,929.63 12.16
7.501 - 8.000 38 4,265,448.09 11.68
8.001 - 8.500 69 9,549,098.84 26.15
8.501 - 9.000 47 6,122,604.59 16.77
9.001 - 9.500 46 4,866,443.43 13.33
9.501 - 10.000 34 3,891,159.43 10.66
10.001 - 10.500 8 590,162.57 1.62
10.501 - 11.000 12 1,122,312.10 3.07
11.001 - 11.500 2 123,950.00 0.34
11.501 - 12.000 1 40,976.00 0.11
Total 307 36,509,655.42 100.00
</TABLE>
<TABLE>
<CAPTION>
CURRENT
LIFECAP COUNT BALANCE %
<S> <C> <C> <C>
13.001 - 13.500 3 380,297.42 1.04
13.501 - 14.000 11 1,119,273.32 3.07
14.001 - 14.500 36 4,437,929.63 12.16
14.501 - 15.000 38 4,265,448.09 11.68
15.001 - 15.500 69 9,549,098.84 26.15
15.501 - 16.000 47 6,122,604.59 16.77
16.001 - 16.500 46 4,866,443.43 13.33
16.501 - 17.000 34 3,891,159.43 10.66
17.001 - 17.500 8 590,162.57 1.62
17.501 - 18.000 12 1,122,312.10 3.07
18.001 - 18.500 2 123,950.00 0.34
18.501 - 19.000 1 40,976.00 0.11
Total 307 36,509,655.42 100.00
</TABLE>
2/28 MORTGAGE LOANS
- -------------------
<TABLE>
<CAPTION>
CURRENT
START RATE COUNT BALANCE %
<S> <C> <C> <C>
5.501 - 6.000 1 180,375.00 0.18
6.501 - 7.000 1 68,500.00 0.07
7.001 - 7.500 5 697,628.21 0.71
7.501 - 8.000 30 3,776,400.60 3.82
8.001 - 8.500 83 9,779,478.29 9.89
8.501 - 9.000 215 23,627,002.91 23.89
9.001 - 9.500 201 19,540,626.08 19.76
9.501 - 10.000 191 18,348,026.91 18.55
10.001 - 10.500 128 10,524,638.40 10.64
10.501 - 11.000 81 6,804,987.21 6.88
11.001 - 11.500 39 2,656,778.03 2.69
11.501 - 12.000 28 1,729,121.67 1.75
12.001 - 12.500 15 984,809.16 1.00
12.501 - 13.000 2 171,350.00 0.17
Total 1,020 98,889,722.47 100.00
</TABLE>
<TABLE>
<CAPTION>
CURRENT
LIFECAP COUNT BALANCE %
<S> <C> <C> <C>
12.501 - 13.000 1 180,375.00 0.18
13.501 - 14.000 1 68,500.00 0.07
14.001 - 14.500 5 697,628.21 0.71
14.501 - 15.000 30 3,776,400.60 3.82
15.001 - 15.500 83 9,779,478.29 9.89
15.501 - 16.000 215 23,627,002.91 23.89
16.001 - 16.500 201 19,540,626.08 19.76
16.501 - 17.000 191 18,348,026.91 18.55
17.001 - 17.500 128 10,524,638.40 10.64
17.501 - 18.000 81 6,804,987.21 6.88
18.001 - 18.500 39 2,656,778.03 2.69
18.501 - 19.000 28 1,729,121.67 1.75
19.001 - 19.500 15 984,809.16 1.00
19.501 - 20.000 2 171,350.00 0.17
Total 1,020 98,889,722.47 100.00
</TABLE>
AVAILABLE FUNDS CAP ANALYSIS
- ----------------------------
<TABLE>
<CAPTION>
DISTRIBUTION DATE AVAILABLE FUNDS CAP DISTRIBUTION DATE AVAILABLE FUNDS CAP
- ----------------- ------------------- ----------------- -------------------
<S> <C> <C> <C>
1 9.52% 51 12.80%
2 8.59% 52 12.80%
3 8.33% 53 13.23%
4 8.38% 54 12.80%
5 8.68% 55 13.23%
6 8.62% 56 12.80%
7 9.10% 57 12.80%
8 8.83% 58 14.17%
9 8.86% 59 12.80%
10 9.87% 60 13.23%
11 8.95% 61 12.80%
12 9.49% 62 13.23%
13 8.88% 63 12.80%
14 9.19% 64 12.80%
15 8.90% 65 13.23%
16 8.92% 66 12.80%
17 9.22% 67 13.23%
18 8.99% 68 12.80%
19 9.34% 69 12.80%
20 9.05% 70 14.18%
21 9.05% 71 12.81%
22 10.09% 72 13.23%
23 9.13% 73 12.81%
24 9.97% 74 13.23%
25 10.20% 75 12.81%
26 10.56% 76 12.81%
27 10.23% 77 13.24%
28 10.29% 78 12.81%
29 10.64% 79 13.24%
30 10.68% 80 12.81%
31 11.49% 81 12.81%
32 11.13% 82 13.69%
33 11.15% 83 12.81%
34 13.19% 84 13.24%
35 12.79% 85 12.81%
36 13.22% 86 13.24%
37 12.79% 87 12.81%
38 13.22% 88 12.81%
39 12.79% 89 13.24%
40 12.79% 90 12.81%
41 13.22% 91 13.24%
42 12.80% 92 12.82%
43 13.22% 93 12.82%
44 12.80% 94 14.19%
45 12.80% 95 12.82%
46 14.17% 96 13.25%
47 12.80% 97 12.82%
48 13.22% 98 13.25%
49 12.80% 99 12.82%
50 13.22%
</TABLE>
