<PAGE> 1
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) October 16, 1997
Mellon Residential Funding Corporation
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 333-24453 23-2889067
------------------------------ ------------ ----------------
(State or other (Commission (IRS Employer
jurisdiction of incorporation) File Number) ID Number)
One Mellon Bank Center, Room 410, Pittsburgh, Pennsylvania 15258
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, including area code: (412) 236-6559
--------------
N/A
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE> 2
Item 5. Other Events.
Filing of Computational Materials.*
Pursuant to Rule 424(b) under the Securities Act of 1933, as amended,
Mellon Residential Funding Corporation (the "Depositor") is filing a prospectus
and prospectus supplement with the Securities and Exchange Commission relating
to its Mortgage Pass-Through Certificates, Series 1997-1.
In connection with the offering of the Mortgage Pass-Through Certificates,
Series 1997-1, J.P. Morgan Securities Inc. prepared certain materials (the
"Computational Materials") which were distributed by J.P. Morgan Securities
Inc. and Mellon Financial Markets, Inc. (the "Underwriters") to their potential
investors. Although the Depositor provided the Underwriters with certain
information regarding the characteristics of the Mortgage Loans in the related
portfolio, it did not participate in the preparation of the Computational
Materials. The Computational Materials are attached hereto as Exhibit 99.1.
- ----------
* Capitalized terms used and not otherwise defined herein shall have the
meanings assigned to them in the Prospectus dated October 16, 1997, and
Prospectus Supplement dated October 16, 1997, of Mellon Residential Funding
Corporation, relating to its Mortgage Pass-Through Certificates, Series 1997-1.
-2-
<PAGE> 3
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits:
8.1 Opinion of Stroock & Stroock & Lavan LLP with
respect to certain tax matters.
23.1 Consent of Stroock & Stroock & Lavan LLP (included in
Exhibit 8.1).
99.1 Computational Materials.
-3-
<PAGE> 4
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 thereunto duly authorized.
MELLON RESIDENTIAL FUNDING CORPORATION
By: /s/ Stephen Cobain
----------------------
Name: Stephen Cobain
Title: President
Dated: October 23, 1997
<PAGE> 5
EXHIBIT INDEX
Exhibit Page
- ------- ----
8.1 Opinion of Stroock & Stroock & Lavan LLP
with respect to certain tax matters.
23.1 Consent of Stroock & Stroock & Lavan LLP
(included in Exhibit 8.1).
99.1 Computational Materials.
<PAGE> 1
Exhibit 8.1
Stroock & Stroock & Lavan LLP
180 Maiden Lane
New York, New York 10038-4982
October 23, 1997
Mellon Residential Funding Corporation
One Mellon Bank Center
500 Grant Street
Pittsburgh, Pennsylvania 15258
RE: Mellon Residential Funding Corporation
Registration Statement on Form S-3
(File No. 333-24453)
Ladies and Gentlemen:
We have acted as special counsel for Mellon Residential Funding Corporation, a
Delaware Corporation ("the Company"), in connection with the issuance of
$125,173,000 aggregate principal amount of Mellon Bank Home Equity Installment
Loan Trust 1997-1 Mortgage Pass-Through Certificates, Series 1997-1 (the
"Certificates"). A Registration Statement on Form S-3 relating to the
Certificates (No. 333-24453) (the "Registration Statement") has been filed with
the Securities and Exchange Commission under the Securities Act of 1933, as
amended (the "Securities Act"). As set forth in the Prospectus dated October 16,
1997 and the Prospectus Supplement dated October 16, 1997, the Certificates will
be issued by a trust established by the Company pursuant to the provisions of a
Pooling and Servicing Agreement dated as of September 30, 1997 (the "Pooling and
Servicing Agreement") among the Company, as Depositor, Mellon Bank, N.A., as the
Seller and Master Servicer and Bankers Trust Company of California, N.A., as the
Trustee.
We have examined a form of the Pooling and Servicing Agreement, a form of the
Certificates, and a form of the Prospectus and Prospectus Supplement referred to
above. We also have examined such other documents, papers, statutes and
authorities as we have deemed necessary to form the basis for the opinions
hereinafter expressed. In our examination of such material, we have assumed the
genuineness of all signatures, the authenticity of all documents submitted to us
as originals and the conformity to original documents of copies of documents
submitted to us.
<PAGE> 2
Securities and Exchange Commission
October 23, 1997
Page 2
On the basis of the foregoing, we are of the opinion that the information in the
Prospectus Supplement under the caption "Federal Income Tax Considerations," and
in the Prospectus under the caption "Federal Income Tax Considerations," to the
extent that it constitutes matters of law or legal conclusions, is correct in
all material respects.
This opinion is based on current provisions of the Internal Revenue Code of
1986, as amended, the Treasury regulations promulgated thereunder, and judicial
and administrative interpretations thereof.
Except as provided below, this opinion is solely for the benefit of the
addressee hereof and may not be relied upon in any manner by any other person or
entity.
We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement, to the references to us in the Prospectus Supplement,
and to the filing of this opinion as an exhibit to an application made by or on
behalf of the Company or any dealer in connection with the registration of the
Certificates under the securities or blue sky laws of any state or jurisdiction.
In giving such permission, we do not admit hereby that we come within the
category of persons whose consent is required under Section 7 of the Securities
Act or the General Rules and Regulations of the Securities and Exchange
Commission thereunder.
Very truly yours,
/s/ Stroock & Stroock & Lavan LLP
STROOCK & STROOCK & LAVAN LLP
<PAGE> 1
- --------------------------------------------------------------------------------
J P Morgan MELLON FINANCIAL MARKETS, INC. October 14, 1997
- --------------------------------------------------------------------------------
$125,173,000 Mellon Bank Home Equity Installment Loan Trust, Series 1997-1
Mellon Bank N.A. -- Seller/Master Servicer
Transaction Highlights
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Expected Expected
Approximate Ratings Average Life Payment Final Expected
Class Class Size (Moody's/ to 10% Windows to 10% Call Day Maturity to Legal Final
Class(2) Type(1) ($ thousands) S&P) Call/Maturity(3) (months)(3) Count 10% Call Maturity
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 Floating $49,865,000 Aaa/AAA 0.95/0.95 11/97-9/99 (23) Act/360 9/99 3/06
A-2 Fixed $9,196,000 Aaa/AAA 2.10/2.10 9/99-2/00 (6) 30/360 2/00 7/07
A-3 Fixed $24,270,000 Aaa/AAA 3.10/3.10 2/00-12/01 (23) 30/360 12/01 7/10
A-4 Fixed $22,689,000 Aaa/AAA 6.05/6.97 12/01-4/05 (41) 30/360 4/05 7/12
A-5 Fixed NAS $12,518,000 Aaa/AAA 6.12/6.35 11/00-4/05 (54) 30/360 4/05 6/12
B Fixed $6,635,000 A2/A 5.03/5.18 11/00-4/05 (54) 30/360 4/05 7/12
-----------------------------
Total $125,173,000 -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Notes:
- ------
(1) Class A-1 through A-4 sequential pay; Class A-5 concurrent pay starting in
month 37; Class B concurrent pay starting in month 37 subject to
subordination provisions, certain credit enhancement requirements and
trigger events.
(2) CPR in Class A-1 through A-5 and B are priced at a prepayment speed of
100% of the prepayment assumption (PPC) which equals a prepayment speed
starting at 2% in month 1, increasing by 2.22% per month to 22% CPR in
month 10, and remaining at 22% CPR thereafter.
(3) Auction Sale after Optional Termination: If the Master Servicer does not
exercise its optional termination right within 90 days after the Optional
Termination Date, the Trustee is required to solicit bids for the purchase
of all Mortgage Loans and REO Property remaining in the Trust Fund. If
satisfactory bids are received as set forth in the Agreement, such
remaining Mortgage Loans and REO Property will be sold and the proceeds
distributed to the Certificateholders in the same priority as
distributions on a Distribution Date.
(4) Class A-5 NAS allocation of senior principal distributions: 0% through
month 36; 45% month 37 through month 60; 80% month 61 through month 72;
100% month 73 through month 84; and 300% thereafter.
Seller/Master Servicer: Mellon Bank, N.A.
Depositor: Mellon Residential Funding Corporation
Trustee: Bankers Trust Company of California, N.A.
Underwriters: J.P. Morgan Securities, Inc. (lead) & Mellon
Financial Markets, Inc. (co-manager)
Collateral: Fixed home equity loans secured by first and
second lien mortgages.
See attached "Collateral Description".
Class A-1 through A-5, B The prepayment assumption is 100% of the
Prepayment Speed: prepayment curve, which equates to a prepayment
speed of 2% CPR in the first month, increasing
by 2.22% per month to 22% CPR in month 10 and
remaining at 22% CPR thereafter.
Expected Pricing Date: TBD
Expected Settlement Date: October 28, 1997, through DTC, Euroclear, and
CEDEL.
Cut-off Date: September 30, 1997.
Distribution Dates: The 25th of each month, beginning November 25,
1997.
Additional information is available upon request. Information herein is believed
to be reliable but J.P. Morgan does not warrant its completeness or accuracy.
These materials are subject to change from time to time without notice. Past
performance is not indicative of future results. Any description of the
collateral contained herein supersedes any previous collateral information and
will be superseded by the final prospectus relating to the securities. These
materials are not intended as an offer or solicitation with respect to the
purchase or sale of any security, and have been provided to you for
informational purposes only and may not be relied upon by you in evaluating the
merits of investing in the securities. Any investment decision with respect to
the securities should be made by you based solely upon the information contained
in the final prospectus relating to the securities. No assurance or
representation can be made as to the actual rate or timing of principal payments
or prepayments on any of the collateral or the performance characteristics of
the securities. This information was prepared in reliance on information
regarding the collateral furnished by the seller of the collateral. J.P. Morgan
may hold a position or act as market maker in the financial instruments of any
issuer discussed herein or act as advisor or lender to such issuer. J.P. Morgan
Securities Inc. is a member of SIPC and SFA. Copyright 1997 J.P. Morgan & Co.
Incorporated.
<PAGE> 2
(Transaction Highlights continued)
Optional Termination: On any Distribution Date on which the Pool
Principal Balance is less than 10% of the Cut-off
Date Pool Principal Balance, the Master Servicer
will have the option to purchase, in whole, the
Mortgage Loans and the REO Property, if any,
remaining in the Trust Fund.
Auction Sale after Optional If the Master Servicer does not exercise its
Termination: optional termination right within 90 days after
the Optional Termination Date, the Trustee is
required to solicit bids for the purchase of all
Mortgage Loans and REO Property remaining in the
Trust Fund. If satisfactory bids are received as
set forth in the Agreement, such remaining
Mortgage Loans and REO Property will be sold and
the proceeds distributed to the Certificateholders
in the same priority as distributions on a
Distribution Date.
Net WAC Cap: The Pass-Through Rate for the Floating Rate
Certificates for any Distribution Date will be a
per annum rate equal to the lesser of (1) the sum
of one month LIBOR plus [x] and (2) the Net WAC
Cap. The Net WAC Cap for any Distribution Date
will equal the weighted average of the Net
Mortgage Rates of the Mortgage Loans as of the
first day of the related Due Period. The Net
Mortgage Rate of any Mortgage Loan will equal the
Mortgage Rate thereof minus the Expense Fee Rate.
Trust Tax Status: REMIC trust.
ERISA Eligibility: The Class A-1 through A-5 Certificates will be
ERISA eligible (and there will be no prefunding
account).
The Class B Certificates are not ERISA eligible.
SMMEA Eligibility: The Certificates are not SMMEA eligible as there
are 2nd mortgages in the pool.
Credit Enhancement
- ------------------
Class A1 through Class A5:
o 5.3% Class B Subordinated Certificates
o Overcollateralization building from 0% to 1% of the original
aggregate Class Certificate Balance, or, if after the Stepdown Date,
the greater of (i) 2% of the Pool Principal Balance as of the last
day of the related Due Period and, (ii) $625,940 which equals 50 bps
of the initial pool balance.
o Monthly Excess Interest Amount
Class B:
o Overcollateralization building from 0% to 1% of the original
aggregate Class Certificate Balance, or, if after the Stepdown Date,
the greater of (i) 2% of the Pool Principal Balance as of the last
day of the related Due Period and, (ii) $625,940 which equals 50 bps
of the initial pool balance.
o Monthly Excess Interest Amount
Class Rating Level Percent of Transaction
------------------------------------------------------------
A1-A5 Aaa/AAA 94.7%
B A2/A 5.3%
Additional information is available upon request. Information herein is believed
to be reliable but J.P. Morgan does not warrant its completeness or accuracy.
These materials are subject to change from time to time without notice. Past
performance is not indicative of future results. Any description of the
collateral contained herein supersedes any previous collateral information and
will be superseded by the final prospectus relating to the securities. These
materials are not intended as an offer or solicitation with respect to the
purchase or sale of any security, and have been provided to you for
informational purposes only and may not be relied upon by you in evaluating the
merits of investing in the securities. Any investment decision with respect to
the securities should be made by you based solely upon the information contained
in the final prospectus relating to the securities. No assurance or
representation can be made as to the actual rate or timing of principal payments
or prepayments on any of the collateral or the performance characteristics of
the securities. This information was prepared in reliance on information
regarding the collateral furnished by the seller of the collateral. J.P. Morgan
may hold a position or act as market maker in the financial instruments of any
issuer discussed herein or act as advisor or lender to such issuer. J.P. Morgan
Securities Inc. is a member of SIPC and SFA. Copyright 1997 J.P. Morgan & Co.
Incorporated.
<PAGE> 3
Mellon Residential Funding Corp. 1997-1 Collateral Description
Collateral: The collateral pool will consist of a combination of first and
second lien home equity loans. These loans are predominantly used by
borrowers to consolidate debt, for home improvements, 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.
Fixed Rate Home Equity Installment Loans(1)
Aggregate Pool Balance ($MM): $125,173,642.63
Number of Loans: 2,657
Average Outstanding Balance: $47,110.89
Product Type: Fixed Rate Home Equity Loans
Weighted Average Coupon: 8.81%
Original Weighted Average Term: 173.64 months
Remaining Weighted Average Term: 170.92 months
Weighted Average Seasoning: 2.72 months
Lien Position: 73.18% first lien, 26.72% second lien,
0.10% third lien
Weighted Average Combined
Loan to Value Ratio: 77.31%
Property Type: 98.39% single family; 0.69% townhouse;
0.28% condominium; 0.24% duplex;
0.11% multi-family; 0.30% other
Owner Occupancy: 98.19% primary; 1.51% rental,
0.14% second home, 0.16% other
Geographic Distribution (>= 5%): PA (41.15%), OH (26.64%), MD (8.70%),
VA (8.87%), NJ (8.25%)
Note:
- -----
(1) All percentages and weighted averages calculated on the outstanding
balance.
Additional information is available upon request. Information herein is believed
to be reliable but J.P. Morgan does not warrant its completeness or accuracy.
These materials are subject to change from time to time without notice. Past
performance is not indicative of future results. Any description of the
collateral contained herein supersedes any previous collateral information and
will be superseded by the final prospectus relating to the securities. These
materials are not intended as an offer or solicitation with respect to the
purchase or sale of any security, and have been provided to you for
informational purposes only and may not be relied upon by you in evaluating the
merits of investing in the securities. Any investment decision with respect to
the securities should be made by you based solely upon the information contained
in the final prospectus relating to the securities. No assurance or
representation can be made as to the actual rate or timing of principal payments
or prepayments on any of the collateral or the performance characteristics of
the securities. This information was prepared in reliance on information
regarding the collateral furnished by the seller of the collateral. J.P. Morgan
may hold a position or act as market maker in the financial instruments of any
issuer discussed herein or act as advisor or lender to such issuer. J.P. Morgan
Securities Inc. is a member of SIPC and SFA. Copyright 1997 J.P. Morgan & Co.
Incorporated.
<PAGE> 4
Average Life Sensitivity to Changes in Prepayment Rates
Assumes a 10% Call (Optional Termination or Auction Sale)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
PPC Prepayment Assumption
=======================
0% 50% 75% 100%(1) 125%
-- --- --- ---- ----
Window Window Window Window Window
WAL (Months) WAL (Months) WAL (Months) WAL (Months) WAL (Months) WAL
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class 4.21 11/97-1/06 1.55 11/97-1/01 1.17 11/97-3/00 0.95 11/97-9/99 0.80 11/97-5/99 0.70
A-1 (99) (39) (29) (23) (19)
Class 8.93 1/06-5/07 3.60 1/01-10/01 2.65 3/00-9/00 2.10 9/99-2/00 1.73 5/99-9/99 1.47
A-2 (17) (10) (7) (6) (5)
Class 11.26 5/07-6/10 5.51 10/01-7/05 4.01 9/00-3/03 3.10 2/00-12/01 2.47 9/99-2/01 2.08
A-3 (38) (46) (31) (23) (18)
Class 13.54 6/10-8/11 10.14 7/05-10/08 7.86 3/03-11/06 6.05 12/01-4/05 4.79 2/01-1/04 3.81
A-4 (15) (40) (45) (41) (36)
Class 8.35 11/00-8/11 7.04 11/00-10/08 6.58 11/00-11/06 6.12 11/00-4/05 5.50 12/00-1/04 4.89
A-5 (130) (96) (73) (54) (38)
Class B 11.99 11/06-8/11 7.81 2/02-10/08 6.18 1/01-11/06 5.03 11/00-4/05 4.29 11/00-1/04 3.82
(58) (81) (71) (54) (39)
- ---------------------------------------------------------------------------=======================-------------------------------
</TABLE>
- -------------------------------------------
PPC Prepayment Assumption
150% 200%
---- ----
Window Window
(Months) WAL (Months)
- -------------------------------------------
Class 11/97-2/99 0.56 11/97-10/98
A-1 (16) (12)
Class 2/99-5/99 1.12 10/98-1/99
A-2 (4) (4)
Class 5/99-5/00 1.56 1/99-9/99
A-3 (13) (9)
Class 5/00-1/03 2.49 9/99-8/01
A-4 (33) (24)
Class 2/01-1/03 3.89 5/01-9/01
A-5 (24) (5)
Class B 11/00-1/03 3.41 11/00-9/01
(27) (11)
- -------------------------------------------
Assumes NO 10% Call (Run to Maturity)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
PPC Prepayment Assumption
=====================
0% 50% 75% 100%(1) 125%
-- --- --- ---- ----
Window Window Window Window Window
WAL (Months) WAL (Months) WAL (Months) WAL (Months) WAL (Months) WAL
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class 4.21 11/97-1/06 1.55 11/97-1/01 1.17 11/97-3/00 0.95 11/97-9/99 0.80 11/97-5/99 0.70
A-1 (99) (39) (29) (23) (19)
Class 8.93 1/06-5/07 3.60 1/01-10/01 2.65 3/00-9/00 2.10 9/99-2/00 1.73 5/99-9/99 1.47
A-2 (17) (10) (7) (6) (5)
Class 11.26 5/07-6/10 5.51 10/01-7/05 4.01 9/00-3/03 3.10 2/00-12/01 2.47 9/99-2/01 2.08
A-3 (38) (46) (31) (23) (18)
Class 13.77 6/10-7/12 10.95 7/05-5/12 8.86 3/03-1/12 6.97 12/01-4/11 5.40 2/01-2/10 4.08
A-4 (26) (83) (107) (113) (109)
Class 8.35 11/00-5/12 7.06 11/00-3/12 6.65 11/00-10/11 6.35 11/00-2/11 6.14 12/00-12/09 5.98
A-5 (139) (137) (132) (124) (109)
Class B 12.03 11/06-3/12 7.95 2/02-11/10 6.34 1/01-5/09 5.18 11/00-9/07 4.42 11/00-3/06 3.94
(65) (106) (101) (83) (65)
- -----------------------------------------------------------------------------=====================-----------------------------
</TABLE>
- -----------------------------------------
PPC Prepayment Assumption
150% 200%
---- ----
Window Window
(Months) WAL (Months)
- -----------------------------------------
Class 11/97-2/99 0.56 11/97-10/98
A-1 (16) (12)
Class 2/99-5/99 1.12 10/98-1/99
A-2 (4) (4)
Class 5/99-5/00 1.56 1/99-9/99
A-3 (13) (9)
Class 5/00-9/08 2.49 9/99-8/01
A-4 (101) (24)
Class 2/01-7/08 5.05 5/01-2/06
A-5 (90) (58)
Class B 11/00-12/04 3.49 11/00-2/03
(50) (28)
- -----------------------------------------
Note:
- -----
(1) The prepayment assumption is 100% of the prepayment curve (PPC), which
equates to a prepayment speed of 2% CPR in the first month, increasing by
2.22% per month to 22% CPR in month 10 and remaining at 22% thereafter.
(2) If the Master Servicer does not exercise its optional termination right
within 90 days after the Optional Termination Date, the Trustee is
required to solicit bids for the purchase of all Mortgage Loans and REO
Property remaining in the Trust Fund. If satisfactory bids are received as
set forth in the Agreement, such remaining Mortgage Loans and REO Property
will be sold and the proceeds distributed to the Certificateholders in the
same priority as distributions on a Distribution Date.
Additional information is available upon request. Information herein is believed
to be reliable but J.P. Morgan does not warrant its completeness or accuracy.
These materials are subject to change from time to time without notice. Past
performance is not indicative of future results. Any description of the
collateral contained herein supersedes any previous collateral information and
will be superseded by the final prospectus relating to the securities. These
materials are not intended as an offer or solicitation with respect to the
purchase or sale of any security, and have been provided to you for
informational purposes only and may not be relied upon by you in evaluating the
merits of investing in the securities. Any investment decision with respect to
the securities should be made by you based solely upon the information contained
in the final prospectus relating to the securities. No assurance or
representation can be made as to the actual rate or timing of principal payments
or prepayments on any of the collateral or the performance characteristics of
the securities. This information was prepared in reliance on information
regarding the collateral furnished by the seller of the collateral. J.P. Morgan
may hold a position or act as market maker in the financial instruments of any
issuer discussed herein or act as advisor or lender to such issuer. J.P. Morgan
Securities Inc. is a member of SIPC and SFA. Copyright 1997 J.P. Morgan & Co.
Incorporated.
<PAGE> 5
Mellon Residential Funding Corp. 1997-1 Collateral Tables
Portfolio by Loan Purpose
- --------------------------------------------------------------------------------
Number of Percent of Current
Loan Purpose(1) Loans Current Balance Balance
- --------------------------------------------------------------------------------
Consolidation 2,236 105,825,905.34 98.73%
Convenience 17 610,854.63 0.57%
Home Improvement 16 333,266.88 0.31%
Vehicle 6 142,341.94 0.13%
Tax/Investment/Education 4 101,212.73 0.09%
Vacation 2 100,432.50 0.09%
Other 3 69,897.80 0.07%
- --------------------------------------------------------------------------------
2,284 107,183,911.82 100.00%
- --------------------------------------------------------------------------------
(1) Mellon Bank's loan application does not require the "Loan Purpose" field
to be completed. Thus, 373 applications totaling $17,989,730.81 have no
populated "Loan Purpose Field".
Portfolio by Remaining Term
- --------------------------------------------------------------------------------
Remaining Term Number of Percent of Current
(months) Loans Current Balance Balance
- --------------------------------------------------------------------------------
41 - 50 1 8,237.99 0.01%
51 - 60 61 1,016,334.04 0.81%
61 - 70 6 116,952.80 0.09%
71 - 80 12 288,143.30 0.23%
81 - 90 17 466,234.44 0.37%
91 - 100 6 227,479.78 0.18%
101 - 110 4 96,069.74 0.08%
111 - 120 287 9,028,351.06 7.21%
131 - 140 5 216,768.36 0.17%
141 - 150 2 110,211.00 0.09%
151 - 160 7 310,580.60 0.25%
161 - 170 9 361,569.54 0.29%
171 - 180 2,240 112,926,709.98 90.22%
- --------------------------------------------------------------------------------
2,657 125,173,642.63 100.00%
- --------------------------------------------------------------------------------
Portfolio by Property State
- --------------------------------------------------------------------------------
Number of Percent of Current
Property State Loans Current Balance Balance
- --------------------------------------------------------------------------------
Delaware 24 1,282,322.69 1.02%
District of Columbia 15 913,112.48 0.73%
Illinois 10 326,505.24 0.26%
Indiana 46 2,051,968.86 1.64%
Kentucky 57 2,631,776.57 2.10%
Maryland 237 10,886,963.76 8.70%
New Jersey 169 10,326,660.57 8.25%
North Carolina 17 788,076.58 0.63%
Ohio 764 33,349,870.80 26.64%
Pennsylvania 1,085 51,512,822.07 41.15%
Virginia 233 11,103,563.01 8.87%
- --------------------------------------------------------------------------------
2,657 125,173,642.63 100.00%
- --------------------------------------------------------------------------------
Additional information is available upon request. Information herein is believed
to be reliable but J.P. Morgan does not warrant its completeness or accuracy.
These materials are subject to change from time to time without notice. Past
performance is not indicative of future results. Any description of the
collateral contained herein supersedes any previous collateral information and
will be superseded by the final prospectus relating to the securities. These
materials are not intended as an offer or solicitation with respect to the
purchase or sale of any security, and have been provided to you for
informational purposes only and may not be relied upon by you in evaluating the
merits of investing in the securities. Any investment decision with respect to
the securities should be made by you based solely upon the information contained
in the final prospectus relating to the securities. No assurance or
representation can be made as to the actual rate or timing of principal payments
or prepayments on any of the collateral or the performance characteristics of
the securities. This information was prepared in reliance on information
regarding the collateral furnished by the seller of the collateral. J.P. Morgan
may hold a position or act as market maker in the financial instruments of any
issuer discussed herein or act as advisor or lender to such issuer. J.P. Morgan
Securities Inc. is a member of SIPC and SFA. Copyright 1997 J.P. Morgan & Co.
Incorporated.
<PAGE> 6
Mellon Residential Funding Corp. 1997-1 Collateral Tables (Cont.)
Portfolio by Combined LTV
- --------------------------------------------------------------------------------
Number of Percent of Current
Combined LTV Loans Current Balance Balance
- --------------------------------------------------------------------------------
0.01% - 10.00% 1 10,465.51 0.01%
10.01% - 20.00% 12 175,743.64 0.14%
20.01% - 30.00% 39 998,960.77 0.80%
30.01% - 40.00% 77 2,116,031.67 1.69%
40.01% - 50.00% 112 4,203,588.30 3.36%
50.01% - 60.00% 168 6,428,333.79 5.14%
60.01% - 70.00% 270 11,352,486.38 9.07%
70.01% - 80.00% 458 21,920,003.37 17.51%
80.01% - 90.00% 1,509 77,383,263.62 61.82%
90.01% - 00.00% 11 584,765.58 0.47%
- --------------------------------------------------------------------------------
2,657 125,173,642.63 100.00%
- --------------------------------------------------------------------------------
Portfolio by Property Type
- --------------------------------------------------------------------------------
Percent of Current
Property Type Number of Loans Current Balance Balance
- --------------------------------------------------------------------------------
Single Family 2,606 123,159,900.94 98.39%
Townhouse 24 857,784.91 0.69%
Condominium 11 346,499.05 0.28%
Duplex 5 295,174.54 0.24%
Multi-Family 2 137,971.14 0.11%
Other 9 376,312.05 0.30%
- --------------------------------------------------------------------------------
2,657 125,173,642.63 100.00%
- --------------------------------------------------------------------------------
Portfolio by Lien Position
- --------------------------------------------------------------------------------
Percent of Current
Lien Position Number of Loans Current Balance Balance
- --------------------------------------------------------------------------------
First 1,569 91,600,068.03 73.18%
Second 1,084 33,443,372.53 26.72%
Third 4 130,202.07 0.10%
- --------------------------------------------------------------------------------
2,657 125,173,642.63 100.00%
- --------------------------------------------------------------------------------
Portfolio by Occupancy Type
- --------------------------------------------------------------------------------
Percent of Current
Occupancy Number of Loans Current Balance Balance
- --------------------------------------------------------------------------------
Primary 2,586 122,911,928.22 98.19%
Rental 62 1,884,750.69 1.51%
Second Home 3 175,437.00 0.14%
Other 6 201,526.72 0.16%
- --------------------------------------------------------------------------------
2,657 125,173,642.63 100.00%
- --------------------------------------------------------------------------------
Additional information is available upon request. Information herein is believed
to be reliable but J.P. Morgan does not warrant its completeness or accuracy.
These materials are subject to change from time to time without notice. Past
performance is not indicative of future results. Any description of the
collateral contained herein supersedes any previous collateral information and
will be superseded by the final prospectus relating to the securities. These
materials are not intended as an offer or solicitation with respect to the
purchase or sale of any security, and have been provided to you for
informational purposes only and may not be relied upon by you in evaluating the
merits of investing in the securities. Any investment decision with respect to
the securities should be made by you based solely upon the information contained
in the final prospectus relating to the securities. No assurance or
representation can be made as to the actual rate or timing of principal payments
or prepayments on any of the collateral or the performance characteristics of
the securities. This information was prepared in reliance on information
regarding the collateral furnished by the seller of the collateral. J.P. Morgan
may hold a position or act as market maker in the financial instruments of any
issuer discussed herein or act as advisor or lender to such issuer. J.P. Morgan
Securities Inc. is a member of SIPC and SFA. Copyright 1997 J.P. Morgan & Co.
Incorporated.
<PAGE> 7
Mellon Residential Funding Corp. 1997-1 Collateral Tables (Cont.)
Portfolio by Coupon
- --------------------------------------------------------------------------------
Number of Percent of
Coupon Range Loans Current Balance Current Balance
- --------------------------------------------------------------------------------
7.51% - 8.00% 1 96,331.30 0.08%
8.01% - 8.50% 767 48,376,042.63 38.65%
8.51% - 9.00% 930 45,983,974.65 36.74%
9.01% - 9.50% 612 21,512,819.14 17.19%
9.51% - 10.00% 305 7,730,277.35 6.18%
10.01% - 10.50% 29 1,180,893.25 0.94%
10.51% - 13.50% 13 293,304.31 0.23%
- --------------------------------------------------------------------------------
2,657 125,173,642.63 100.00%
- --------------------------------------------------------------------------------
Portfolio by Current Balance
- --------------------------------------------------------------------------------
Number of Percent of
Current Balance Range Loans Current Balance Current Balance
- --------------------------------------------------------------------------------
1 - 10,000 23 218,071.83 0.17%
10,001 - 20,000 359 5,382,112.92 4.30%
20,001 - 30,000 479 12,004,809.03 9.59%
30,001 - 40,000 475 16,596,836.23 13.26%
40,001 - 50,000 350 15,631,008.03 12.49%
50,001 - 60,000 302 16,531,006.91 13.21%
60,001 - 70,000 214 13,881,025.37 11.09%
70,001 - 80,000 155 11,537,166.96 9.22%
80,001 - 90,000 87 7,374,930.66 5.89%
90,001 - 100,000 49 4,663,889.59 3.73%
100,001 - 110,000 48 5,044,989.67 4.03%
110,001 - 120,000 28 3,194,689.34 2.55%
120,001 - 130,000 21 2,626,403.94 2.10%
130,001 - 140,000 22 2,960,025.69 2.36%
140,001 - 150,000 15 2,177,727.04 1.74%
150,001 - 270,000 30 5,348,949.42 4.27%
- --------------------------------------------------------------------------------
2,657 125,173,642.63 100.00%
- --------------------------------------------------------------------------------
Additional information is available upon request. Information herein is believed
to be reliable but J.P. Morgan does not warrant its completeness or accuracy.
These materials are subject to change from time to time without notice. Past
performance is not indicative of future results. Any description of the
collateral contained herein supersedes any previous collateral information and
will be superseded by the final prospectus relating to the securities. These
materials are not intended as an offer or solicitation with respect to the
purchase or sale of any security, and have been provided to you for
informational purposes only and may not be relied upon by you in evaluating the
merits of investing in the securities. Any investment decision with respect to
the securities should be made by you based solely upon the information contained
in the final prospectus relating to the securities. No assurance or
representation can be made as to the actual rate or timing of principal payments
or prepayments on any of the collateral or the performance characteristics of
the securities. This information was prepared in reliance on information
regarding the collateral furnished by the seller of the collateral. J.P. Morgan
may hold a position or act as market maker in the financial instruments of any
issuer discussed herein or act as advisor or lender to such issuer. J.P. Morgan
Securities Inc. is a member of SIPC and SFA. Copyright 1997 J.P. Morgan & Co.
Incorporated.
