<PAGE>
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) March 26, 1997
Advanta Mortgage Loan Trust 1997-1
(Exact name of registrant as specified in its charter)
New York 333-21265 Application Pending
(State or Other Jurisdiction (Commission File (I.R.S. Employer
of Incorporation) Number) Identification No.)
c/o Advanta Mortgage Conduit 92127
Services, Inc. (Zip Code)
Attention: Milton Riseman
16875 West Bernardo Drive
San Diego, California
(Address of Principal Executive Offices)
Registrant's telephone number, including area code (619) 674-1800
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
In connection with the offering of Advanta Mortgage Loan Trust
1997-1 Mortgage Loan Asset-Backed Certificates, Series 1997-1, described in a
Prospectus Supplement dated as of March 26, 1997, certain "Computational
Materials" within the meanings of the May 20, 1994 Kidder, Peabody No-Action
Letter and the February 17, 1995 Public Securities Association No-Action Letter
were furnished to certain prospective investors (the "Related Computational
Materials").
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(a) Not applicable
(b) Not applicable
(c) Exhibit 99.1. Related Computational Materials (as defined in
Item 5 above).
<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.
ADVANTA MORTGAGE LOAN TRUST 1997-1
By: Advanta Mortgage Conduit Services, Inc., as Sponsor
By: /s/ Mark T. Dunsheath
----------------------------------
Name: Mark T. Dunsheath
Title: Vice President
Dated: March 28, 1997
<PAGE>
EXHIBIT INDEX
Exhibit No. Description Page No.
- ----------- ----------- --------
99.1 Related Computational Materials (as 5
defined in Item 5 above).
EXHIBIT 99.1
REVISED
$550,000,000
Advanta Mortgage Loan Trust 1997-1
Home Equity Loan ABS
$141,000,000 Class A-1 Certificates $168,000,000 Class A-6 Certificates
$82,000,000 Class A-2 Certificates $12,600,000 Class M-1A Certificates
$11,500,000 Class A-3 Certificates $10,500,000 Class M-2A Certificates
$34,015,000 Class A-4 Certificates $18,900,000 Class B-1A Certificates
$29,835,000 Class A-5 Certificates
$10,200,000 Class M-1F Certificates
$22,100,000 Class M-2F Certificates
$9,350,000 Class B-1F Certificates
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by Advanta Mortgage Corp. USA with respect to the expected
characteristics of the pool of closed-end mortgage loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the closed-end mortgage loans will differ
from the assumptions used in preparing these materials, which are hypothetical
in nature. Changes in the assumptions may have a material impact on the
information set forth in these materials. No representation is made that any
performance or return indicated herein will be achieved. For example, it is very
unlikely that closed-end mortgage loans will prepay at a constant rate or follow
a predictable pattern. This information may not be used or otherwise
disseminated in connection with the offer or sale of these or any other
securities, except in connection with the initial offer or sale of these
securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO
THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR
THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available
upon request. These materials do not constitute an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL
ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS
SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT
CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL
CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY
AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE
UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT
NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND
PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials,
including any description of the closed-end mortgage loans contained herein,
shall be deemed superseded, amended and supplemented in their entirety by such
Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition,
please note that this information has been provided by Morgan Stanley & Co.
Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
<PAGE>
$550,000,000 (Approximate)
Advanta Mortgage Loan Trust
Mortgage Loan Asset-Backed Certificates, Series 1997-1
Advanta Mortgage Corp. USA -- Master Servicer
<TABLE>
<CAPTION>
Revised Transaction Highlights
- ---------- --------- --------------- -------- -------------------- -------------- -------------- ---------- --------------- --------
Payment Expected
Class Expected Average Life Windows to Average Final Legal
Class Class Size(2) Size Ratings to 10% 10% Call Life to Maturity to Final
Class(1) Type (,000) (%) (Moody's/Fitch) Call(3) (months) Maturity 10% Call(3) Maturity
- ---------- --------- --------------- -------- -------------------- -------------- -------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 Fixed $141,000 25.6% Aaa / AAA 1.0 1-24 / 24 1.0 3 / 99 TBD
A-2 Fixed $82,000 14.9% Aaa / AAA 3.0 24-56 / 33 3.0 11 / 01 TBD
A-3 Fixed $11,500 2.1% Aaa / AAA 5.0 56-66 / 11 5.0 9 / 02 TBD
A-4 Fixed $34,015 6.2% Aaa / AAA 7.4 66-98 / 33 9.3 5 / 05 TBD
A-5 Fixed $29,835 5.4% Aaa / AAA 6.4 38-98 / 61 6.6 5 / 05 TBD
M-1F Fixed $10,200 1.9% Aa2 / AA+ 5.5 38-98 / 61 6.1 5 / 05 TBD
M-2F Fixed $22,100 4.0% A2 / A+ 5.5 37-98 / 62 6.0 5 / 05 TBD
B-1F Fixed $9,350 1.7% Baa2 / BBB+ 5.5 37-98 / 62 5.8 5 / 05 TBD
A-6 Floater $168,000 30.5% Aaa / AAA 2.4 1-97 / 98 2.5 5 / 05 TBD
M-1A Floater $12,600 2.3% Aa2 / AA+ 5.4 41-98 / 58 5.9 5 / 05 TBD
M-2A Floater $10,500 1.9% A1 / A+ 5.3 39-98 / 60 5.8 5 / 05 TBD
B-1A Floater $18,900 3.4% Baa2 / BBB+ 5.3 37-98 / 62 5.7 5 / 05 TBD
- ---------- --------- --------------- -------- -------------------- -------------- -------------- ---------- ------------- ----------
Total $550,000 100.00% -- -- -- -- --
- ---------- --------- --------------- -------- -------------------- -------------- -------------- ---------- ------------- ----------
</TABLE>
Notes: (1) The Class A-1 through A-5, M-1F, M-2F, and B-1F
certificates are backed by the Group I (fixed rate) pool
of mortgage loans and the Class A-6, M-1A, M-2A, and B-1A
certificates by the Group II (ARM) pool of mortgage
loans.
(2) Approximate.
(3) Class A-1 through A-5, M-1F, M-2F, and B-1F are priced at
a prepayment speed of 115% of the prepayment assumption
(PPM). A 100% PPM has prepayments starting at 3.0% CPR
in month 1, increasing by 1.55% per month to 20% CPR in
month 12, and remaining at 20% CPR thereafter on a
seasoning adjusted basis. Class A-6, M-1A, M-2A, and
B-1A are priced at a constant prepayment speed of 25%
CPR.
<TABLE>
<S> <C>
Originator/Master Servicer: Advanta Mortgage Corp. USA and affiliates.
Trustee: Bankers Trust Company of California.
Distribution Dates: The 25th of each month, beginning April 25,
1997.
Class A-1 - Class A-5, M-1F, The prepayment assumption is 115% of the
M-2F, B-1F: Prepayment Speed: prepayment curve, which equates to a
prepayment speed of 3.45% CPR in the first
month, increasing by 1.78% CPR each month to
23.0% CPR in month 12, and remaining at
23.0% CPR thereafter.
Class A-6, M-1A, M-2A, B-1A
Prepayment Speed: 25% CPR
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by Advanta Mortgage Corp. USA with respect to the expected
characteristics of the pool of closed-end mortgage loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the closed-end mortgage loans will differ
from the assumptions used in preparing these materials, which are hypothetical
in nature. Changes in the assumptions may have a material impact on the
information set forth in these materials. No representation is made that any
performance or return indicated herein will be achieved. For example, it is very
unlikely that closed-end mortgage loans will prepay at a constant rate or follow
a predictable pattern. This information may not be used or otherwise
disseminated in connection with the offer or sale of these or any other
securities, except in connection with the initial offer or sale of these
securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO
THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR
THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available
upon request. These materials do not constitute an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL
ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS
SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT
CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL
CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY
AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE
UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT
NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND
PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials,
including any description of the closed-end mortgage loans contained herein,
shall be deemed superseded, amended and supplemented in their entirety by such
Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition,
please note that this information has been provided by Morgan Stanley & Co.
Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
<PAGE>
<TABLE>
Transaction Highlights (cont'd)
<S> <C>
Available Funds Cap: The Class A-6 Certificates are subject to a Net Available Funds Cap. The Net Available Funds Cap
Rate is the weighted average loan rate on the Group II mortgages less the monthly servicing fee,
trustee fee and a 75 basis point "carve out" after the 6th month to be used for additional credit
enhancement. There is a full "catch-up" feature for certificate interest and principal shortfalls
with any shortfalls paid back in future periods. However, Advanta is not obligated to pay any
outstanding interest shortfall amounts if Advanta exercises its call option. The ABS coupon subject
to shortfall coverage is capped at the Net Lifetime Cap on the ARMs for Class A-6.
Optional Call 10% Clean-up call (10% of pool balance).
Day Count Basis: 30/360 for the fixed rate certificates (Class A-1 through A-5, M-1F, M-2F, B-1F) and Actual/360-day
interest accrual for the floating rate certificates (Class A-6, M-1A, M-2A, B-1A)
Trust Tax Status: REMIC trust
ERISA Eligibility: The Class A-1 through A-6
Certificates will be ERISA eligible (and there
will be no prefunding account). All other
Certificates are not ERISA eligible.
SMMEA Eligibility: The Certificates are not SMMEA eligible.
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by Advanta Mortgage Corp. USA with respect to the expected
characteristics of the pool of closed-end mortgage loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the closed-end mortgage loans will differ
from the assumptions used in preparing these materials, which are hypothetical
in nature. Changes in the assumptions may have a material impact on the
information set forth in these materials. No representation is made that any
performance or return indicated herein will be achieved. For example, it is very
unlikely that closed-end mortgage loans will prepay at a constant rate or follow
a predictable pattern. This information may not be used or otherwise
disseminated in connection with the offer or sale of these or any other
securities, except in connection with the initial offer or sale of these
securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO
THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR
THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available
upon request. These materials do not constitute an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL
ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS
SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT
CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL
CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY
AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE
UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT
NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND
PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials,
including any description of the closed-end mortgage loans contained herein,
shall be deemed superseded, amended and supplemented in their entirety by such
Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition,
please note that this information has been provided by Morgan Stanley & Co.
Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
<PAGE>
Advanta 1997-1 Collateral Description
The collateral pool will consist of a combination of first and junior lien home
equity loans. These loans are predominantly used by borrowers to consolidate
debt, to refinance an existing mortgage loan on more favorable terms, or to
obtain cash proceeds by borrowing against the homeowner's equity in the related
mortgage property. The following collateral description is only reflective of
$315 million of fixed rate loans and $205 million of ARM loans. The transaction
will be fully funded based on Advanta Mortgage's new loan originations, for a
total transaction size of $550,000,000 million as of the closing date of this
transaction. There will be no prefunding in this transaction.
<TABLE>
<CAPTION>
Fixed Rate Home Equity Loans - Group I ARM Home Equity Loans - Group II
-------------------------------------- --------------------------------
<S> <C> <C>
Aggregate Pool Balance ($MM): $315.0 $205.0
Number of Loans: 5,219 1,946
Average Outstanding Balance: $60,356.40 $105,344.67
Interest Rate Index: NA 82.6% 6-mo. LIBOR; 17.4% 1-year CMT
Product Type: NA 34.6% 2-yr/6-mo. ARM, 20.2% 6-mo.
ARM, 17.2% 5-yr/6-mo. ARM, 28% Other
Wtd. Avg. Gross Coupon: 11.04% 10.67%
Wtd. Avg. Gross Margin: NA 6.11%
Wtd. Avg. Gross Interest Rate Floor: NA 9.76%
Wtd. Avg. Gross Interest Rate Cap: NA 17.04%
Wtd. Avg. Gross Periodic Interest
Rate Cap: NA 1.31%
Wtd. Avg. Months to Interest Rate
Roll: NA 23 months
Wtd. Avg. Interest Rate Roll
Frequency: NA 7 months
Original Weighted Average Term: 242 months 354 months
Remaining Weighted Average Term: 238 months 348 months
Weighted Average Seasoning: 4 months 6 months
Lien Position: 90.7% 1sts/9.3% non-1sts 99.7% 1sts/0.3% non-1sts
Combined Loan to Value Ratio: 75.25% 75.50%
Property Type: 90.1% single family; 4.9% 2-4 family; 2.1% 89.9% single family; 5.0% 2-4 family;
manufactured homes; 2.9% other 2.1% condo; 3.0% other
Owner Occupancy: 93.8% owner; 6.2% investor property 94.4% owner; 5.6% investor property
Loan Purpose: 64.8% refi (cashout and rate/term); 20.8% debt 64.0% refi (cashout and rate/term);
cons; 14.4% other 20.4% purchase; 13.4% debt cons; 2.2%
other
Geographic Distribution (> =5%): CA (12.1%), OH (7.8%), MI (7.4%), CA (25.6%), WA (8.1%), NJ (5.1%),
FL (6.7%), IN (5.0%), PA (5.0%) IL (5.1%)
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by Advanta Mortgage Corp. USA with respect to the expected
characteristics of the pool of closed-end mortgage loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the closed-end mortgage loans will differ
from the assumptions used in preparing these materials, which are hypothetical
in nature. Changes in the assumptions may have a material impact on the
information set forth in these materials. No representation is made that any
performance or return indicated herein will be achieved. For example, it is very
unlikely that closed-end mortgage loans will prepay at a constant rate or follow
a predictable pattern. This information may not be used or otherwise
disseminated in connection with the offer or sale of these or any other
securities, except in connection with the initial offer or sale of these
securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO
THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR
THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available
upon request. These materials do not constitute an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL
ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS
SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT
CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL
CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY
AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE
UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT
NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND
PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials,
including any description of the closed-end mortgage loans contained herein,
shall be deemed superseded, amended and supplemented in their entirety by such
Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition,
please note that this information has been provided by Morgan Stanley & Co.
Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
<PAGE>
Average Life Sensitivity to Changes in Prepayment Rates
Assumes a 10% Clean-up Call
<TABLE>
<CAPTION> Prepayment Assumption (PPC)
-----------------------------------------------------------------------------------------
50% 100% 115%(1) 150% 175% 250%
----------- ----------- ----------- ----------- ----------- -----------
WAL Mty. WAL Mty. WAL Mty. WAL Mty. WAL Mty. WAL Mty.
=================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A-1 1.98 7/01 1.12 7/99 1.00 3/99 0.80 10/98 0.71 7/98 0.53 3/98
Class A-2 7.26 5/09 3.50 9/02 3.00 11/01 2.19 2/00 1.88 9/99 1.30 11/98
Class A-3 13.03 3/11 5.97 10/03 5.01 9/02 3.36 1/01 2.58 12/99 1.75 1/99
Class A-4 15.19 11/12 9.04 11/06 7.38 5/05 5.17 7/03 3.76 4/02 2.05 7/99
Class A-5 7.83 2/12 6.68 11/06 6.41 5/05 5.68 7/03 4.93 4/02 2.61 3/00
Class M-1F 10.95 11/12 6.36 11/06 5.53 5/05 4.51 7/03 4.15 4/02 3.37 9/00
Class M-2F 10.95 11/12 6.36 11/06 5.52 5/05 4.44 7/03 3.98 4/02 3.49 9/00
Class B-1F 10.91 11/12 6.36 11/06 5.52 5/05 4.40 7/03 3.87 4/02 3.40 9/00
-----------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE:
(1) "115%" column notes pricing prepayment speed of Advanta
Mortgage Loan Trust 1997-1. The prepayment pricing speed
on Class A-1 through A-5, M1-F, M-2F, and B-1F is 115%
(or 1.15 times) of 100% PPM which equates to a prepayment
speed of 3.45% CPR in the first month, increasing by
1.78% CPR each month to 23.0% CPR in month 12, and
remains at 23.0% CPR thereafter.
<TABLE>
<CAPTION>
CPR %
-----------------------------------------------------------------------------------------
10% 20% 25%(1) 30% 40% 50%
----------- ----------- ----------- ----------- ----------- -----------
WAL Mty. WAL Mty. WAL Mty. WAL Mty. WAL Mty. WAL Mty.
=================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A-6 5.67 11/12 2.99 11/06 2.35 5/05 1.80 7/03 1.07 1/00 0.80 4/99
Class M-1A 11.95 11/12 6.47 11/06 5.36 5/05 4.86 7/03 4.11 4/02 2.27 9/99
Class M-2A 11.95 11/12 6.47 11/06 5.30 5/05 4.60 7/03 4.82 4/02 2.71 3/00
Class B-1A 11.95 11/12 6.47 11/06 5.26 5/05 4.44 7/03 4.00 4/02 3.45 9/00
-----------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE:
(1) "25%" column denotes pricing prepayment speed of Advanta
Mortgage Loan Trust 1997-1 Class A-7, M-1A, M-2A, B-1A.
The prepayment pricing speed for Class A-7, M-1A, M-2A,
B-1A is a constant prepayment rate of 25% CPR.
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by Advanta Mortgage Corp. USA with respect to the expected
characteristics of the pool of closed-end mortgage loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the closed-end mortgage loans will differ
from the assumptions used in preparing these materials, which are hypothetical
in nature. Changes in the assumptions may have a material impact on the
information set forth in these materials. No representation is made that any
performance or return indicated herein will be achieved. For example, it is very
unlikely that closed-end mortgage loans will prepay at a constant rate or follow
a predictable pattern. This information may not be used or otherwise
disseminated in connection with the offer or sale of these or any other
securities, except in connection with the initial offer or sale of these
securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO
THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR
THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available
upon request. These materials do not constitute an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL
ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS
SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT
CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL
CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY
AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE
UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT
NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND
PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials,
including any description of the closed-end mortgage loans contained herein,
shall be deemed superseded, amended and supplemented in their entirety by such
Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition,
please note that this information has been provided by Morgan Stanley & Co.
Incorporated and approved by Morgan Stanley & Co. International Limited, a
member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We
recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
<PAGE>
Average Life Sensitivity to Changes in Prepayment Rates (cont'd)
<TABLE>
<CAPTION>
Assumes NO 10% Clean-up Call
-----------------------------------------------------------------------------------------------------------------
Prepayment Assumption (PPC)
-----------------------------------------------------------------------------------------
50% 100% 115%(1) 150% 175% 250%
----------- ----------- ----------- ----------- ----------- -----------
WAL Mty. WAL Mty. WAL Mty. WAL Mty. WAL Mty. WAL Mty.
=================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A-1 1.98 7/01 1.12 7/99 1.00 3/99 0.80 10/98 0.71 7/98 0.53 3/98
Class A-2 7.26 5/09 3.50 9/02 3.01 11/01 2.19 2/00 1.88 9/99 1.30 11/98
Class A-3 13.03 3/11 5.97 10/03 5.01 9/02 3.36 1/01 2.58 12/99 1.75 1/99
Class A-4 17.26 2/24 10.96 5/15 9.33 4/13 6.15 1/11 3.98 12/08 2.05 7/99
Class A-5 7.83 2/12 6.75 2/12 6.59 2/12 6.44 11/10 6.52 10/08 2.61 3/00
Class M-1F 11.46 3/20 6.90 2/12 6.09 4/11 4.93 2/08 4.56 6/06 5.42 11/04
Class M-2F 11.34 2/19 6.84 2/12 6.01 7/10 4.80 7/07 4.34 12/05 4.26 12/02
Class B-1F 10.98 10/14 6.60 7/09 5.79 2/08 4.58 7/05 4.09 4/04 3.51 10/01
-----------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE:
(1) "115%" column notes pricing prepayment speed of Advanta
Mortgage Loan Trust 1997-1. The prepayment pricing speed
on Class A-1 through A-6, M1-F, M-2F, and B-1F is 115%
(or 1.15 times) of 100% PPM which equates to a prepayment
speed of 3.45% CPR in the first month, increasing by
1.78% CPR each month to 23.0% CPR in month 12, and
remains at 23.0% CPR thereafter.
<TABLE>
<CAPTION>
CPR %
-----------------------------------------------------------------------------------------
10% 20% 25%(1) 30% 40% 50%
----------- ----------- ----------- ----------- ----------- -----------
WAL Mty. WAL Mty. WAL Mty. WAL Mty. WAL Mty. WAL Mty.
=================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A-6 6.21 6/25 3.26 10/18 2.53 9/14 1.97 8/11 1.07 1/00 0.80 4/99
Class M-1A 13.59 7/24 7.26 3/16 5.88 6/12 5.36 9/09 5.40 6/07 2.27 9/99
Class M-2A 13.57 1/24 7.23 2/15 5.80 7/11 5.07 12/08 5.14 7/05 2.71 3/00
Class B-1A 13.47 5/23 7.09 11/13 5.65 7/10 4.81 1/08 4.15 11/04 4.56 10/04
-----------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE:
(1) "25%" column denotes pricing prepayment speed of Advanta
Mortgage Loan Trust 1997-1 Class A-7, M-1A, M-2A, B-1A.
The prepayment pricing speed for Class A-7, M-1A, M-2A,
B-1A is a constant prepayment rate of 25% CPR.
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of securities
representing interests in the above trust, and is based in part on information
provided by Advanta Mortgage Corp. USA with respect to the expected
characteristics of the pool of closed-end mortgage loans in which these
securities will represent undivided beneficial interests. The actual
characteristics and performance of the closed-end mortgage loans will differ
from the assumptions used in preparing these materials, which are hypothetical
in nature. Changes in the assumptions may have a material impact on the
information set forth in these materials. No representation is made that any
performance or return indicated herein will be achieved. For example, it is very
unlikely that closed-end mortgage loans will prepay at a constant rate or follow
a predictable pattern. This information may not be used or otherwise
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