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): January 21, 1998
Block Mortgage Finance, Inc.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
333-14041 43-1758633
(Commission File Number) (IRS Employer Identification No.)
4435 Main Street, Suite 500, Kansas City, Missouri 64111
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (816) 435-5000
Not applicable
(Former name or former address, if changed since last report)
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
Exhibit 99 Collateral Tables Relating to Block Mortgage Finance
Series 1998-1.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
BLOCK MORTGAGE FINANCE, INC., as
Registrant
Date: January 21, 1998 By: /s/ Bret G. Wilson
------------------
Bret G. Wilson, President
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
99 Collateral Tables Relating to Block
Mortgage Finance Series 1998-1.
Fixed Rate Collateral Tables
Block Financial 1998-1 Collateral Description
---------------------------------------------
Collateral: The Mortgage Loans will be predominantly home equity loans, i.e.,
loans used (i) to refinance an existing mortgage loan on more favorable terms,
(ii) to consolidate debt or (iii) to obtain cash proceeds by borrowing against
the Mortgagor's equity in the related Mortgaged Property.
<TABLE>
<CAPTION>
Fixed Rate Home Equity Loans - Group I ARM Home Equity Loans - Group II
-------------------------------------- --------------------------------
<S> <C> <C>
Aggregate Pool Balance: $92,249,497 million $92,457,459 million
Number of Loans: 2,072 907
Average Outstanding Balance: $44,522 $101,938
Total Original Balance: $92.5 million $92.6 million
Average Original Balance: $44,658 $102,045
Lien Position: 71.1% firsts; 28.9% non-firsts 100% firsts
Prepayment Penalty: 57.5% 68.3%
WA Original Loan to Value Ratio: 83.96% (67.12%>80%, min: 9.91%/ 84.86% (72.84%>80%, min: 19.23% /
max: 103.00% max: 100.00%
WA Junior Loan Ratio(1): 27.91% N/A
Loan Type: 59.0% Fixed Rate 62.0% 2-year fixed/6-month ARM
41.0% Balloon 29.8% 1-year ARM
4.3% 6-month ARM
1.6% 3-year fixed/6-month ARM
1.5% 3-year fixed/1-year ARM
0.8% Other
Original WA Original Term: 228 months (70.0% 180-mo. maturity 256 months (57.4% 180-mo. maturity
30.0% 360-mo. maturity) 42.5% 360-mo. maturity)
Remaining WA Maturity: 223 months 253 months
WA Seasoning: 5 months 3 months
Interest Rate Index: N/A 6.0% 1-yr. UST, 4.75% 3-yr UST,
5.94% 6-mo. LIBOR, 5.51% 1-mo.
LIBOR
WA Gross Coupon: 11.76% (Min: 7.50%/max: 16.49%) 10.29% (current, min: 6.99%/
max: 13.90%)
WA Gross Margin: N/A 5.93%
Latest Scheduled Maturity: Expected 1/1/2028 Expected 1/1/2028
</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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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>
Block Financial 1998-1 Collateral Description (cont.)
-----------------------------------------------------
<TABLE>
<CAPTION>
Fixed Rate Home Equity Loans - Group I ARM Home Equity Loans - Group II
-------------------------------------- --------------------------------
<S> <C> <C>
Property Type: 97.53% single family, 1.32% 2-4 family, 97.15% single family,
1.15% other 1.32% 2-4 family, 1.53% other
Owner Occupancy: a) 94.57% owner occupied a) 97.41% owner occupied
b) 5.43%, investor property b) 2.59% non-owner
occupied
Geographic Distribution (>5%): FL (15.54%), IL (12.94%), GA (12.70%), GA (24.67%), IL (11.75%),
IN (10.89%), CO (7.61%), NC (6.59%), FL (9.49%), CO (9.30%), OH (7.03%),
TN (6.49%), KY (5.64%) IN (6.14%)
Cashout Refinancing: 38.0% 7.51%
WA Periodic Cap: NA 1.32%
WA Months to Roll NA 17
WA Floor: NA 10.16%
WA Debt-to-Income Ratio: 39.27% 39.53%
<FN>
Note: (1) Excludes first mortgages. Defined as ratio of current principal balance of the
mortgage loan to the sum of the original principal balance of loan and principal balance
at time of origination of the loan of any senior loan.
</FN>
</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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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>
<CAPTION>
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
Remaining Number of Aggregate % of Aggregate Weighted Average Average Percent Percent Percent Weighted Average
Principal Mortgage Principal Principal Average Current Original Cashout Full Owner Debt
Balance Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied Ratio
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0 - 9,999 39 383,516.58 0.42 12.934 9,834 85.43 97.4 97.4 94.8 37.10
10,000 - 19,999 482 7,316,428.14 7.93 12.907 15,179 84.59 86.6 96.7 97.5 38.53
20,000 - 29,999 378 9,534,095.40 10.34 12.546 25,222 83.70 72.8 97.1 95.5 38.15
30,000 - 39,999 249 8,699,593.95 9.43 12.210 34,938 83.37 54.5 95.1 94.2 37.98
40,000 - 49,999 265 11,962,866.57 12.97 11.706 45,143 82.74 34.9 97.4 86.9 38.47
50,000 - 59,999 177 9,744,334.55 10.56 11.504 55,053 82.73 26.8 90.4 92.2 38.16
60,000 - 69,999 161 10,501,154.75 11.38 11.485 65,225 84.43 23.2 95.7 94.4 40.44
70,000 - 79,999 97 7,254,605.68 7.86 11.295 74,790 83.85 22.3 94.8 97.8 38.85
80,000 - 89,999 66 5,552,510.54 6.02 11.196 84,129 86.97 22.7 98.4 98.5 40.87
90,000 - 99,999 33 3,111,395.93 3.37 11.083 94,285 80.89 20.9 93.6 100.0 40.60
100,000 - 109,999 30 3,168,755.00 3.43 11.484 105,625 85.44 20.0 93.4 93.2 41.71
110,000 - 119,999 19 2,183,779.17 2.37 11.772 114,936 81.93 26.4 83.9 89.1 38.04
120,000 - 129,999 15 1,848,728.03 2.00 11.192 123,249 84.27 13.2 93.4 93.4 42.64
130,000 - 139,999 13 1,747,193.13 1.89 11.223 134,399 84.44 46.3 92.3 100.0 39.88
140,000 - 149,999 12 1,735,217.41 1.88 11.123 144,601 84.74 16.8 74.6 91.5 39.65
150,000 - 159,999 8 1,252,793.26 1.36 12.321 156,599 82.71 36.8 75.0 100.0 43.06
160,000 - 169,999 4 655,107.84 0.71 11.739 163,777 87.99 25.0 100.0 100.0 41.28
170,000 - 179,999 3 528,386.74 0.57 10.526 176,129 88.30 0.0 100.0 100.0 44.47
180,000 - 189,999 1 181,821.61 0.20 10.375 181,822 94.99 0.0 100.0 100.0 42.09
190,000 - 199,999 1 198,401.85 0.22 13.990 198,402 85.99 0.0 0.0 100.0 40.33
200,000 - 209,999 3 614,430.07 0.67 11.393 204,810 86.64 0.0 66.3 100.0 37.43
210,000 - 219,999 4 857,583.43 0.93 11.054 214,396 85.88 0.0 74.8 100.0 39.16
222,000 and greater 12 3,216,797.82 3.49 11.320 268,066 85.59 23.6 73.5 100.0 40.84
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
Total: 2,072 92,249,497.45 100.00 11.756 44,522 83.96 38.0 93.1 94.6 39.27
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
Min: 8,503.76
Max: 374,004.93
Average: 44,521.96
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
Number of Aggregate % of Aggregate Weighted Average Average Percent Percent Percent Weighted Average
Mortgage Mortgage Principal Principal Average Current Original Cashout Full Owner Debt
Rates Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied Ratio
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9.000 and less 35 2,059,235.95 2.23 8.584 58,835 78.10 8.3 100.0 100.0 36.88
9.001 - 9.250 11 943,084.51 1.02 9.193 85,735 75.32 0.0 100.0 100.0 36.68
9.251 - 9.500 26 1,225,835.16 1.33 9.406 47,148 77.91 29.8 100.0 97.8 36.31
9.501 - 9.750 31 1,822,773.70 1.98 9.684 58,799 76.63 16.5 100.0 86.9 36.69
9.751 - 10.000 73 4,389,578.66 4.76 9.914 60,131 75.06 28.5 100.0 86.1 36.82
10.001 - 10.250 46 2,994,278.82 3.25 10.140 65,093 75.50 25.2 87.5 91.0 37.05
10.251 - 10.500 79 4,253,062.18 4.61 10.420 53,836 79.47 28.1 97.7 93.3 37.44
10.501 - 10.750 90 4,997,484.63 5.42 10.676 55,528 80.39 25.0 98.8 92.6 38.44
10.751 - 11.000 112 6,780,307.88 7.35 10.914 60,538 83.08 23.0 98.1 92.5 37.92
11.001 - 11.250 110 5,947,382.80 6.45 11.164 54,067 83.16 19.3 98.3 87.2 39.70
11.251 - 11.500 145 6,508,666.56 7.06 11.404 44,887 84.91 32.6 96.6 94.3 37.57
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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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>
11.501 - 11.750 134 7,609,446.31 8.25 11.683 56,787 85.59 30.3 84.2 94.5 40.02
11.751 - 12.000 177 9,115,906.56 9.88 11.914 51,502 86.50 32.4 90.1 96.2 40.17
12.001 - 12.250 192 7,306,663.03 7.92 12.179 38,056 85.78 47.1 93.0 97.2 40.14
12.251 - 12.500 112 4,440,402.37 4.81 12.437 39,646 86.01 48.4 91.4 94.0 42.25
12.501 - 12.750 93 3,529,953.25 3.83 12.672 37,956 85.59 49.4 94.2 96.2 40.56
12.751 - 13.000 87 3,602,285.46 3.90 12.942 41,406 85.36 61.1 87.5 98.0 41.95
13.001 - 13.250 46 1,504,237.31 1.63 13.174 32,701 85.50 44.3 99.0 98.5 40.22
13.251 - 13.500 49 1,695,502.04 1.84 13.448 34,602 87.73 56.4 95.7 97.2 41.29
13.501 - 13.750 59 1,718,735.34 1.86 13.681 29,131 86.70 61.0 95.7 97.9 41.87
13.751 - 14.000 85 2,242,877.53 2.43 13.971 26,387 92.60 76.2 85.7 100.0 39.80
14.001 - 14.250 82 2,093,630.27 2.27 14.217 25,532 91.61 74.4 96.8 100.0 40.95
14.251 - 14.500 47 1,228,295.82 1.33 14.474 26,134 88.59 80.6 77.5 97.7 38.67
14.501 - 14.750 29 722,112.95 0.78 14.694 24,900 88.62 78.3 82.0 100.0 40.66
14.751 - 15.000 50 1,632,313.03 1.77 14.974 32,646 89.43 63.9 71.7 100.0 39.50
Greater than 15.000 72 1,885,445.33 2.04 15.736 26,187 89.74 86.0 83.4 100.0 39.54
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
Total: 2,072 92,249,497.45 100.00 11.756 44,522 83.96 38.0 93.1 94.6 39.27
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
Min: 7.500
Max: 16.490
Weighted Average: 11.756
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
Remaining Number of Aggregate % of Aggregate Weighted Average Average Percent Percent Percent Weighted Average
to Scheduled Mortgage Principal Principal Average Current Original Cashout Full Owner Debt
Maturity Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied Ratio
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Less than 50 1 59,533.34 0.06 9.000 59,533 83.42 0.0 100.0 100.0 0.00
50 to 59 7 107,472.94 0.12 12.445 15,353 88.00 100.0 100.0 100.0 30.78
60 to 119 49 1,124,981.62 1.22 11.562 22,959 76.71 56.7 96.7 100.0 36.94
120 to 179 1,567 62,984,391.49 68.28 11.926 40,194 84.03 46.7 91.5 95.6 38.97
180 to 239 100 4,039,877.08 4.38 11.528 40,399 80.48 29.6 89.4 96.5 40.12
240 to 299 5 233,346.28 0.25 11.424 46,669 55.13 42.5 100.0 100.0 34.93
300 to 359 342 23,559,644.70 25.54 11.363 68,888 84.96 15.3 97.7 91.1 40.08
360 1 140,250.00 0.15 10.640 140,250 85.00 0.0 100.0 100.0 45.00
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
Total: 2,072 92,249,497.45 100.00 11.756 44,522 83.96 38.0 93.1 94.6 39.27
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
Min: 48
Max: 360
Weighted Average: 223
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
</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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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>
<CAPTION>
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Weighted
Number of Aggregate % of Aggregate Weighted Average Average Percent Percent Percent Average
Distribution of Mortgage Principal Principal Average Current Original Cashout Full Owner Debt
Loan Purpose Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied Ratio
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Refinance - Rate Term 663 36,772,517.34 39.86 11.311 55,464 80.88 0.0 92.2 94.5 38.54
Refinance - Cashout 1,122 35,064,630.75 38.01 12.410 31,252 85.63 100.0 95.1 98.0 39.42
Purchase 287 20,412,349.36 22.13 11.435 71,123 86.62 0.0 91.2 88.9 40.33
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Total: 2,072 92,249,497.45 100.00 11.756 44,522 83.96 38.0 93.1 94.6 39.27
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Weighted
Number of Aggregate % of Aggregate Weighted Average Average Percent Percent Percent Average
Distribution of Mortgage Principal Principal Average Current Original Cashout Full Owner Debt
Occupancy Status Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied Ratio
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Owner Occupied 1,963 87,236,888.34 94.57 11.792 44,441 84.31 39.4 93.0 100.0 39.31
Non-Owner Occupied 109 5,012,609.11 5.43 11.132 45,987 77.74 14.3 95.4 0.0 38.58
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Total: 2,072 92,249,497.45 100.00 11.756 44,522 83.96 38.0 93.1 94.6 39.27
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Weighted
Number of Aggregate % of Aggregate Weighted Average Average Percent Percent Percent Average
Distribution of Mortgage Principal Principal Average Current Original Cashout Full Owner Debt
Property Types Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied Ratio
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Single Family
Residence 2,029 89,971,787.22 97.53 11.758 44,343 84.13 38.7 93.5 95.8 39.22
2-4 Family 22 1,216,098.71 1.32 11.554 55,277 75.31 13.2 94.3 40.3 42.48
Condo 15 587,444.78 0.64 11.500 39,163 76.75 3.9 93.5 19.1 42.46
PUD 5 460,215.55 0.50 12.304 92,043 82.17 9.2 17.2 100.0 37.17
Townhouse 1 13,951.19 0.02 13.500 13,951 89.59 100.0 100.0 100.0 37.27
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Total: 2,072 92,249,497.45 100.00 11.756 44,522 83.96 38.0 93.1 94.6 39.27
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
Number of Aggregate % of Aggregate Weighted Average Average Percent Percent Percent Weighted Average
Mortgage Principal Principal Average Current Original Cashout Full Owner Debt
Lien Position Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied Ratio
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1st Lien 1,017 65,601,747.03 71.11 11.268 64,505 82.83 17.7 93.3 92.5 38.98
2nd Lien 1,055 26,647,750.42 28.89 12.959 25,259 86.71 88.1 92.6 99.6 39.99
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
Total: 2,072 92,249,497.45 100.00 11.756 44,522 83.96 38.0 93.1 94.6 39.27
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
</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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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>
<CAPTION>
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
Number of Aggregate % of Aggregate Weighted Average Average Percent Percent Percent Weighted Average
Geographical Mortgage Principal Principal Average Current Original Cashout Full Owner Debt
Distribution (1) Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied Ratio
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Florida 354 14,335,751.06 15.54 11.800 40,496 84.60 37.1 95.4 94.2 39.96
Illinois 304 11,940,326.87 12.94 12.350 39,277 84.51 52.8 92.2 98.7 40.69
Georgia 193 11,715,115.17 12.70 11.617 60,700 85.58 26.4 94.5 91.8 39.97
Indiana 261 10,045,040.42 10.89 11.491 38,487 82.99 37.0 96.2 94.1 36.72
Colorado 191 7,015,996.27 7.61 12.008 36,733 82.35 66.7 94.2 97.9 38.77
North Carolina 128 6,078,385.57 6.59 11.425 47,487 82.78 38.1 94.5 96.3 37.06
Tennessee 115 5,982,982.27 6.49 11.643 52,026 84.76 31.4 94.4 90.4 40.35
Kentucky 113 5,205,798.11 5.64 11.517 46,069 84.36 38.7 96.6 96.4 36.60
South Carolina 79 3,978,988.43 4.31 11.470 50,367 83.90 34.7 85.8 97.0 38.81
Ohio 61 3,938,240.66 4.27 11.347 64,561 83.71 11.8 96.4 88.7 41.59
Virginia 105 3,884,831.54 4.21 11.732 36,998 86.73 45.1 94.4 90.1 38.63
California-Northern 27 1,369,176.25 1.48 13.275 50,710 84.07 51.9 66.0 100.0 41.36
Utah 25 1,324,387.48 1.44 12.206 52,975 86.44 41.2 70.1 95.5 39.44
Louisiana 25 1,309,689.81 1.42 11.760 52,388 76.18 0.0 74.3 93.2 47.23
Missouri 18 954,244.49 1.03 11.602 53,014 85.46 5.4 100.0 88.9 35.21
Mississippi 19 788,486.11 0.85 11.784 41,499 79.61 18.4 88.4 91.2 44.11
Oregon 12 706,294.65 0.77 10.465 58,858 67.23 14.0 97.1 100.0 39.53
Washington 10 491,807.95 0.53 11.404 49,181 77.43 37.5 76.9 91.9 39.80
Arizona 8 407,079.06 0.44 11.923 50,885 83.91 30.0 70.5 100.0 32.88
Iowa 11 356,846.02 0.39 11.742 32,441 79.73 35.5 97.2 100.0 34.46
California-Southern 3 124,962.06 0.14 13.028 41,654 92.77 26.8 100.0 100.0 45.40
Pennsylvania 1 62,805.37 0.07 9.500 62,805 100.00 0.0 100.0 100.0 40.45
Minnesota 2 53,715.36 0.06 12.693 26,858 94.21 100.0 100.0 100.0 40.76
Michigan 1 49,600.00 0.05 11.300 49,600 80.00 0.0 100.0 100.0 45.00
Texas 1 49,471.21 0.05 11.950 49,471 90.00 0.0 100.0 100.0 45.00
Wisconsin 3 45,392.50 0.05 12.169 15,131 68.29 100.0 100.0 62.9 20.15
Oklahoma 1 17,182.76 0.02 11.850 17,183 74.58 100.0 100.0 100.0 46.06
Idaho 1 16,900.00 0.02 11.890 16,900 89.28 100.0 100.0 100.0 36.90
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
Total: 2,072 92,249,497.45 100.00 11.756 44,522 83.96 38.0 93.1 94.6 39.27
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- ----------------
<FN>
(1) Geographic location is determined by location of the related Mortgage Property;
however, with respect to certain Mortgage Loans, geographic location is determined by Mortgagor mailing address.
</FN>
</TABLE>
<TABLE>
<CAPTION>
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Weighted
Number of Aggregate % of Aggregate Weighted Average Average Percent Percent Percent Average
Mortgage Principal Principal Average Current Original Cashout Full Owner Debt
Top 20 Zip Codes Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied Ratio
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
30087 6 903,942.19 0.98 11.970 150,657 88.62 28.9 100.0 100.0 45.78
30247 5 631,733.31 0.68 10.947 126,347 92.31 6.4 100.0 100.0 36.50
30144 10 584,329.32 0.63 11.793 58,433 81.70 0.0 93.5 27.9 39.95
30202 2 547,321.61 0.59 11.019 273,661 88.32 0.0 100.0 100.0 41.18
38118 6 427,624.01 0.46 11.324 71,271 84.90 7.5 100.0 43.7 38.76
60440 12 424,678.08 0.46 12.181 35,390 85.69 94.4 100.0 100.0 39.81
29926 2 408,865.71 0.44 10.606 204,433 72.27 8.5 0.0 100.0 34.76
30058 3 407,316.64 0.44 11.583 135,772 91.00 56.3 100.0 100.0 47.99
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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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>
32210 8 369,519.14 0.40 11.940 46,190 82.60 51.1 100.0 76.9 41.74
32218 3 317,033.05 0.34 11.485 105,678 85.12 0.0 34.6 100.0 25.54
60628 6 310,580.07 0.34 12.488 51,763 83.67 14.4 100.0 100.0 43.02
60103 7 304,717.21 0.33 12.783 43,531 87.45 74.4 100.0 100.0 43.42
46806 7 304,468.28 0.33 11.804 43,495 82.27 20.2 100.0 73.7 42.13
47711 10 299,443.67 0.32 11.264 29,944 83.29 18.3 100.0 81.8 39.73
80207 7 295,438.52 0.32 11.451 42,206 83.17 70.6 100.0 100.0 52.18
27407 2 286,933.44 0.31 11.254 143,467 87.66 100.0 100.0 100.0 29.79
80916 7 282,910.58 0.31 10.465 40,416 82.40 68.1 100.0 100.0 40.62
30083 4 276,944.74 0.30 11.564 69,236 85.59 3.6 100.0 100.0 44.75
40391 5 276,588.41 0.30 11.096 55,318 89.47 69.1 100.0 100.0 40.24
32208 5 274,752.87 0.30 11.505 54,951 90.00 20.9 100.0 100.0 38.48
Other 1,955 84,314,356.60 91.40 11.777 43,128 83.79 38.6 93.2 95.1 39.15
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Total: 2,072 92,249,497.45 100.00 11.756 44,522 83.96 38.0 93.1 94.6 39.27
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Weighted
Number of Aggregate % of Aggregate Weighted Average Average Percent Percent Percent Average
Calendar Year Mortgage Principal Principal Average Current Original Cashout Full Owner Debt
of Origination Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied Ratio
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1993 1 52,091.66 0.06 7.500 52,092 96.84 0.0 100.0 100.0 0.00
1994 7 538,205.72 0.58 8.317 76,887 99.24 0.0 100.0 100.0 45.79
1995 8 643,793.69 0.70 9.990 80,474 90.66 52.1 100.0 100.0 33.59
1996 3 252,194.94 0.27 11.191 84,065 91.50 36.7 100.0 100.0 46.15
1997 2,053 90,763,211.44 98.39 11.793 44,210 83.79 38.2 93.0 94.5 39.25
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Total: 2,072 92,249,497.45 100.00 11.756 44,522 83.96 38.0 93.1 94.6 39.27
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Earliest Origination Date: 1993-12-28
Latest Maturity Date: 2028-01-01
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Weighted
Number of Aggregate % of Aggregate Weighted Average Average Percent Percent Percent Average
Mortgage Principal Principal Average Current Original Cashout Full Owner Debt
Date of Origination Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied Ratio
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1993-12 1 52,091.66 0.06 7.500 52,092 96.84 0.0 100.0 100.0 0.00
1994-02 2 133,559.90 0.14 7.500 66,780 101.13 0.0 100.0 100.0 56.56
1994-04 1 133,977.08 0.15 7.500 133,977 103.00 0.0 100.0 100.0 40.99
1994-05 2 116,991.74 0.13 9.290 58,496 95.16 0.0 100.0 100.0 43.23
1994-06 1 75,671.56 0.08 9.000 75,672 97.13 0.0 100.0 100.0 56.53
1994-09 1 78,005.44 0.08 9.000 78,005 97.73 0.0 100.0 100.0 29.00
1995-01 1 59,533.34 0.06 9.000 59,533 83.42 0.0 100.0 100.0 0.00
1995-02 1 80,986.37 0.09 9.500 80,986 93.29 0.0 100.0 100.0 26.90
1995-03 2 132,621.54 0.14 9.763 66,311 97.27 52.6 100.0 100.0 29.40
1995-08 1 81,353.97 0.09 10.000 81,354 92.18 100.0 100.0 100.0 44.17
1995-09 1 105,041.84 0.11 8.000 105,042 98.26 0.0 100.0 100.0 43.88
1995-11 1 111,755.76 0.12 13.000 111,756 75.00 100.0 100.0 100.0 35.00
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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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>
1995-12 1 72,500.87 0.08 10.000 72,501 93.03 100.0 100.0 100.0 19.75
1996-02 1 67,209.47 0.07 10.000 67,209 91.88 100.0 100.0 100.0 48.71
1996-12 2 184,985.47 0.20 11.624 92,493 91.37 13.7 100.0 100.0 45.22
1997-01 6 290,180.14 0.31 11.822 48,363 81.86 80.0 100.0 100.0 40.57
1997-02 4 153,247.28 0.17 11.303 38,312 64.82 100.0 100.0 100.0 44.16
1997-03 12 330,874.99 0.36 12.543 27,573 84.91 86.0 100.0 100.0 38.55
1997-04 28 1,072,610.29 1.16 12.183 38,308 83.13 78.9 100.0 96.4 40.76
1997-05 44 1,872,835.00 2.03 11.732 42,564 84.83 59.3 100.0 88.4 39.46
1997-06 128 6,745,756.58 7.31 12.043 52,701 84.78 69.1 88.8 92.4 37.47
1997-07 380 15,094,788.76 16.36 11.841 39,723 84.14 54.4 95.1 93.5 39.51
1997-08 338 14,208,317.52 15.40 11.906 42,036 84.70 42.5 94.1 95.2 39.63
1997-09 316 13,164,946.31 14.27 12.029 41,661 84.70 42.1 91.6 94.7 39.32
1997-10 335 16,179,571.24 17.54 11.788 48,297 83.63 19.5 88.9 96.6 38.42
1997-11 282 12,763,120.79 13.84 11.469 45,259 81.97 20.7 94.1 93.3 39.33
1997-12 180 8,886,962.54 9.63 11.412 49,372 82.73 19.8 95.9 94.7 40.54
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Total: 2,072 92,249,497.45 100.00 11.756 44,522 83.96 38.0 93.1 94.6 39.27
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Weighted
Original Number of Aggregate % of Aggregate Weighted Average Average Percent Percent Percent Average
Loan-to-Value Mortgage Principal Principal Average Current Original Cashout Full Owner Debt
Ratios Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied Ratio
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0.001 - 10.000 1 15,681.85 0.02 10.750 15,682 9.91 100.0 100.0 100.0 42.43
10.001 - 20.000 2 46,409.37 0.05 9.809 23,205 18.70 35.5 100.0 100.0 26.92
20.001 - 30.000 6 147,989.34 0.16 10.683 24,665 27.14 65.6 100.0 75.7 36.87
30.001 - 40.000 16 411,128.15 0.45 10.690 25,696 34.25 29.0 100.0 91.8 32.80
40.001 - 50.000 19 704,504.64 0.76 10.345 37,079 46.25 20.0 100.0 100.0 35.39
50.001 - 60.000 37 1,467,488.27 1.59 10.332 39,662 56.28 23.4 100.0 94.3 35.77
60.001 - 70.000 120 5,313,564.93 5.76 10.687 44,280 67.27 28.3 87.3 89.3 36.65
70.001 - 75.000 129 5,839,578.25 6.33 11.309 45,268 73.63 28.8 88.1 88.7 38.16
75.001 - 80.000 310 16,379,026.50 17.76 11.086 52,836 79.49 26.2 83.7 81.3 38.72
80.001 - 85.000 322 14,753,726.55 15.99 11.700 45,819 84.36 38.3 93.7 99.5 38.59
85.001 - 90.000 906 40,803,304.98 44.23 12.202 45,037 89.62 42.0 96.7 98.8 40.48
90.001 - 95.000 46 2,088,359.84 2.26 11.445 45,399 93.17 42.8 96.9 100.0 38.54
95.001 - 100.000 147 3,780,246.14 4.10 13.635 25,716 99.05 80.6 100.0 100.0 39.43
100.001 - 105.000 11 498,488.64 0.54 10.274 45,317 101.44 26.7 100.0 100.0 44.17
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Total: 2,072 92,249,497.45 100.00 11.756 44,522 83.96 38.0 93.1 94.6 39.27
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Min: 9.91
Max: 103.00
Weighted Average: 83.95
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Weighted
Number of Aggregate % of Aggregate Weighted Average Average Percent Percent Percent Average
Junior Loan Mortgage Principal Principal Average Current Original Cashout Full Owner Debt
Ratios (1) Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied Ratio
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0.001 - 5.000 1 9,935.85 0.04 12.000 9,936 84.08 100.0 100.0 100.0 54.03
5.001 - 10.000 25 341,773.43 1.28 12.708 13,671 86.71 96.8 100.0 100.0 42.06
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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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>
10.001 - 15.000 190 3,176,507.40 11.92 13.331 16,718 88.34 83.7 96.8 99.4 40.62
15.001 - 20.000 252 5,174,364.75 19.42 13.294 20,533 88.60 83.8 91.8 100.0 39.24
20.001 - 25.000 191 4,483,567.28 16.83 13.037 23,474 87.84 89.8 96.5 100.0 40.71
25.001 - 30.000 136 4,046,446.48 15.18 13.062 29,753 86.12 90.0 85.2 98.8 40.71
30.001 - 35.000 97 3,059,665.09 11.48 12.754 31,543 87.23 90.6 92.3 100.0 41.54
35.001 - 40.000 62 2,200,721.01 8.26 12.560 35,496 85.55 85.9 92.2 99.0 38.65
40.001 - 45.000 43 1,685,394.61 6.32 12.647 39,195 82.85 92.4 87.1 100.0 40.30
45.001 - 50.000 18 693,954.66 2.60 12.482 38,553 85.32 100.0 100.0 100.0 35.63
50.001 - 55.000 10 425,357.31 1.60 12.814 42,536 88.46 89.4 100.0 94.0 40.37
55.001 - 60.000 11 478,324.42 1.79 12.362 43,484 85.07 78.3 100.0 100.0 40.74
60.001 - 65.000 7 286,658.36 1.08 12.259 40,951 78.68 79.2 100.0 100.0 33.42
65.001 - 70.000 5 233,396.87 0.88 12.269 46,679 72.66 100.0 76.5 100.0 41.86
70.001 - 75.000 5 237,655.79 0.89 11.954 47,531 77.70 92.7 100.0 100.0 33.47
75.001 - 80.000 1 54,746.66 0.21 10.990 54,747 89.43 100.0 100.0 100.0 25.22
80.001 - 85.000 1 59,280.45 0.22 10.250 59,280 63.01 100.0 100.0 100.0 23.96
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Total: 1,055 26,647,750.42 100.00 12.959 25,259 86.71 88.1 92.6 99.6 39.99
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Min: 4.854
Max: 82.805
Weighted Average: 27.911
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
<FN>
(1) Excludes First Liens.
</FN>
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Weighted
Number of Aggregate % of Aggregate Weighted Average Average Percent Percent Percent Average
Mortgage Principal Principal Average Current Original Cashout Full Owner Debt
Product Type Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied Ratio
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fixed - 5 Year 7 107,472.94 0.12 12.445 15,353 88.00 100.0 100.0 100.0 30.78
Fixed - 10 Year 49 1,124,981.62 1.22 11.562 22,959 76.71 56.7 96.7 100.0 36.94
Fixed - 15 Year 1,013 25,550,766.17 27.70 12.481 25,223 83.98 73.5 94.7 97.6 37.85
Fixed - 20 Year 96 3,850,039.08 4.17 11.534 40,105 80.15 31.1 89.7 97.0 39.36
Fixed - 25 Year 2 99,171.28 0.11 12.670 49,586 49.68 100.0 100.0 100.0 30.42
Fixed - 30 Year 343 23,699,894.70 25.69 11.359 69,096 84.96 15.2 97.7 91.2 40.11
Balloon - 7/30 1 59,533.34 0.06 9.000 59,533 83.42 0.0 100.0 100.0 0.00
Balloon - 15/30 561 37,757,638.32 40.93 11.544 67,304 83.99 28.2 89.4 94.2 39.81
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Total: 2,072 92,249,497.45 100.00 11.756 44,522 83.96 38.0 93.1 94.6 39.27
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Weighted
Number of Aggregate % of Aggregate Weighted Average Average Percent Percent Percent Average
Prepayment Mortgage Principal Principal Average Current Original Cashout Full Owner Debt
Penalty Loans Balance Balance Coupon Balance CLTV Refi Doc Occupied Ratio
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Prepayment Penalty 1,063 53,006,764.14 57.46 11.620 49,865 83.56 28.9 93.0 93.2 39.15
No Prepayment Penalty 1,009 39,242,733.31 42.54 11.940 38,893 84.49 50.4 93.2 96.5 39.45
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
Total: 2,072 92,249,497.45 100.00 11.756 44,522 83.96 38.0 93.1 94.6 39.27
- ----------------- --------- --------- -------------- -------- ------- -------- ------- ------- -------- --------
</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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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>
ARM Collateral Tables
<TABLE>
<CAPTION>
- ------------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- ------- --------
Weighted Weighted
Remaining Number of Aggregate % of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Principal Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Balance Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- ------------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
20,000 - 29,999 3 84,536.95 0.09 11.262 6.644 22 28,179 81.35 0.0 100.0 65.4 37.88
30,000 - 39,999 14 507,994.94 0.55 10.452 6.003 20 36,285 78.89 14.0 93.4 78.0 34.46
40,000 - 49,999 49 2,280,065.90 2.47 10.606 5.876 19 46,532 81.00 10.5 96.3 80.3 38.25
50,000 - 59,999 88 4,856,720.14 5.25 10.406 5.875 19 55,190 85.38 5.7 100.0 95.5 39.22
60,000 - 69,999 130 8,520,613.33 9.22 10.307 5.707 18 65,543 84.11 10.1 98.5 96.3 38.31
70,000 - 79,999 100 7,522,293.40 8.14 10.553 5.984 17 75,223 85.99 15.7 96.9 98.1 38.29
80,000 - 89,999 86 7,279,535.03 7.87 10.518 5.912 16 84,646 86.52 5.7 98.8 100.0 38.96
90,000 - 99,999 68 6,467,868.77 7.00 10.237 5.834 16 95,116 84.92 9.0 98.6 100.0 39.96
100,000 - 109,999 69 7,261,990.78 7.85 10.516 6.017 17 105,246 85.40 7.4 94.2 94.2 41.04
110,000 - 119,999 74 8,493,088.52 9.19 10.193 5.975 17 114,771 84.97 4.1 88.0 96.0 39.24
120,000 - 129,999 51 6,335,225.55 6.85 10.265 6.135 17 124,220 84.35 7.8 82.3 94.2 39.61
130,000 - 139,999 35 4,737,309.87 5.12 10.178 5.840 16 135,352 84.22 2.8 88.4 100.0 40.44
140,000 - 149,999 24 3,518,918.06 3.81 9.977 6.069 16 146,622 85.46 4.2 91.6 100.0 37.28
150,000 - 159,999 24 3,695,869.76 4.00 10.438 6.087 18 153,995 87.33 0.0 91.8 100.0 41.01
160,000 - 169,999 13 2,158,359.74 2.33 9.696 5.655 14 166,028 82.00 15.3 100.0 100.0 40.96
170,000 - 179,999 10 1,750,404.62 1.89 10.447 5.712 20 175,040 86.18 9.9 89.8 100.0 43.52
180,000 - 189,999 9 1,663,396.25 1.80 10.661 6.346 18 184,822 83.72 10.8 88.7 100.0 42.26
190,000 - 199,999 9 1,775,691.99 1.92 10.082 6.102 13 197,299 83.18 11.2 100.0 100.0 45.86
200,000 - 209,999 9 1,851,668.60 2.00 10.393 6.215 16 205,741 87.09 0.0 66.3 100.0 39.52
210,000 - 219,999 10 2,138,939.03 2.31 10.126 5.940 15 213,894 88.08 0.0 89.9 100.0 40.08
220,000 - 229,999 7 1,575,954.73 1.70 9.930 5.932 14 225,136 83.98 0.0 85.4 100.0 44.01
230,000 - 239,999 3 707,504.66 0.77 10.301 5.493 20 235,835 86.61 0.0 100.0 100.0 36.97
240,000 - 249,999 3 737,239.52 0.80 10.803 5.821 20 245,747 90.00 32.8 100.0 100.0 47.12
250,000 and greater 19 6,536,268.84 7.07 9.803 5.810 17 344,014 81.72 8.4 96.0 100.0 36.40
- ------------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- ------- --------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- ------------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- ------- --------
Min: 26,045.89
Max: 632,185.92
Average: 101,937.66
- ------------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- ------- --------
</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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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>
<CAPTION>
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- --------
Weighted Weighted
Number of Aggregate % of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Mortgage Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Rates Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8.000 and less 11 986,489.70 1.07 7.744 4.533 10 89,681 67.48 7.2 100.0 100.0 35.18
8.001 - 8.250 15 1,320,403.91 1.43 8.190 4.912 18 88,027 76.15 5.0 100.0 100.0 43.13
8.251 - 8.500 10 1,328,462.34 1.44 8.432 6.021 10 132,846 72.54 15.0 80.1 100.0 33.35
8.501 - 8.750 19 2,170,559.89 2.35 8.719 5.423 13 114,240 80.02 29.8 93.2 100.0 36.41
8.751 - 9.000 30 4,587,466.08 4.96 8.933 5.539 15 152,916 80.60 6.7 100.0 97.6 36.95
9.001 - 9.250 42 4,845,966.47 5.24 9.190 5.548 16 115,380 80.75 13.1 93.4 100.0 39.38
9.251 - 9.500 40 4,157,915.27 4.50 9.420 5.346 16 103,948 82.14 5.1 98.4 94.1 38.17
9.501 - 9.750 70 7,656,241.57 8.28 9.659 5.564 16 109,375 84.82 6.5 94.3 98.6 38.43
9.751 - 10.000 98 10,220,479.36 11.05 9.949 5.753 14 104,291 85.62 5.5 92.9 98.8 38.18
10.001 - 10.250 74 7,972,640.57 8.62 10.147 5.886 16 107,738 85.99 6.6 86.1 90.9 38.06
10.251 - 10.500 106 9,621,448.16 10.41 10.407 5.674 19 90,768 87.07 7.5 97.6 97.1 39.64
10.501 - 10.750 96 8,961,003.49 9.69 10.648 6.134 19 93,344 86.61 4.0 90.4 95.7 40.92
10.751 - 11.000 81 8,221,117.15 8.89 10.882 6.218 18 101,495 86.80 10.5 95.4 98.6 42.20
11.001 - 11.250 61 5,741,153.05 6.21 11.136 6.254 17 94,117 87.49 11.4 97.6 100.0 39.33
11.251 - 11.500 68 6,593,529.94 7.13 11.420 6.424 17 96,964 86.46 7.6 94.1 99.2 40.68
11.501 - 11.750 25 2,264,655.20 2.45 11.626 6.604 20 90,586 86.59 0.0 85.9 96.0 42.88
11.751 - 12.000 21 2,304,979.98 2.49 11.896 6.794 21 109,761 87.90 0.0 86.9 100.0 44.33
12.001 - 12.250 17 1,652,923.29 1.79 12.144 6.791 18 97,231 87.31 4.6 83.1 100.0 40.82
12.251 - 12.500 3 309,962.21 0.34 12.309 8.078 15 103,321 82.90 18.7 100.0 100.0 38.85
Greater than 12.500 20 1,540,061.35 1.67 12.918 7.297 21 77,003 82.99 0.0 93.2 89.1 42.24
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- -------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- -------
Min: 6.990
Max: 13.900
Weighted Average: 10.292
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- -------
</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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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>
<CAPTION>
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- --------
Weighted Weighted
Number of Aggregate % of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Gross Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Margin Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4.500 and less 14 989,116.22 1.07 8.653 3.871 16 70,651 69.10 6.3 100.0 100.0 39.91
4.501 - 4.750 30 3,828,317.11 4.14 9.159 4.745 26 127,611 78.68 1.7 100.0 93.5 35.60
4.751 - 5.000 169 15,831,575.46 17.12 10.045 4.950 17 93,678 87.10 11.3 100.0 99.3 37.75
5.001 - 5.250 46 4,720,846.21 5.11 9.817 5.212 18 102,627 80.01 12.1 100.0 100.0 37.95
5.251 - 5.500 107 11,008,764.63 11.91 10.018 5.400 14 102,886 84.96 14.5 99.4 98.2 41.03
5.501 - 5.750 65 7,255,285.46 7.85 9.820 5.674 13 111,620 83.17 10.2 96.4 98.6 39.49
5.751 - 6.000 71 6,856,420.84 7.42 10.250 5.945 18 96,569 85.14 2.9 92.4 98.3 39.04
6.001 - 6.250 95 10,674,116.40 11.54 10.309 6.190 16 112,359 85.55 7.0 91.2 96.3 40.25
6.251 - 6.500 70 7,573,831.04 8.19 10.577 6.408 18 108,198 84.18 11.3 92.3 93.1 41.18
6.501 - 6.750 97 9,600,978.20 10.38 10.784 6.654 17 98,979 86.68 1.2 92.6 97.5 41.12
6.751 - 7.000 45 4,366,303.40 4.72 10.987 6.891 18 97,029 85.77 0.0 86.6 93.9 40.90
7.001 - 7.250 46 3,953,504.07 4.28 11.231 7.139 17 85,946 87.52 0.0 81.5 98.7 41.64
7.251 - 7.500 14 1,675,285.95 1.81 10.765 7.350 15 119,663 87.36 0.0 87.0 98.3 32.01
7.501 - 7.750 21 2,249,538.11 2.43 11.152 7.642 14 107,121 84.37 8.9 59.3 97.4 36.60
7.751 - 8.000 9 1,034,284.99 1.12 11.143 7.891 13 114,921 85.48 0.0 67.4 100.0 41.49
Greater than 8.000 8 839,290.89 0.91 11.986 8.679 14 104,911 82.76 0.0 75.6 92.9 44.50
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- --------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- --------
Min: 2.000
Max: 9.250
Weighted Average: 5.928
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- --------
Weighted Weighted
Months to Number of Aggregate % of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Next Rate Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Adjustment Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6 Months and less 77 8,272,972.02 8.95 9.957 6.113 4 107,441 85.22 21.3 90.5 100.0 39.64
7 - 12 210 23,720,853.25 25.66 9.947 5.950 9 112,956 85.32 5.8 90.0 99.8 39.19
13 - 24 598 57,400,729.18 62.08 10.517 5.935 21 95,988 84.75 6.3 94.9 96.3 39.72
25 - 36 22 3,062,904.53 3.31 9.650 5.139 33 139,223 82.44 5.9 100.0 92.4 38.28
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- --------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- --------
Min: 1
Max: 35
Weighted Average: 17
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- --------
</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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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>
<CAPTION>
- --------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- ------- --------
Weighted Weighted
Remaining Number of Aggregate %of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
to Scheduled Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Maturity Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
120 to 179 548 52,962,030.44 57.28 10.333 5.652 18 96,646 85.87 9.8 100.0 98.1 39.73
180 to 239 4 277,158.44 0.30 9.486 5.338 17 69,290 89.05 0.0 100.0 100.0 39.31
300 to 359 342 37,699,200.10 40.77 10.235 6.284 15 110,232 83.39 4.7 84.9 96.3 39.22
360 13 1,519,070.00 1.64 10.414 6.824 19 116,852 85.39 0.0 75.1 100.0 40.33
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- -------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- -------
Min: 171
Max: 360
Weighted Average: 253
- --------------- --------- ---------- -------------- --------- -------- -------- ------- -------- ------- ------- -------- -------
</TABLE>
<TABLE>
<CAPTION>
- --------------- --------- --------- -------------- -------- -------- -------- -------- -------- ------- ------- ------- --------
Weighted Weighted
Number of Aggregate %of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Distribution of Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Loan Purpose Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- --------------- --------- --------- -------------- -------- -------- -------- -------- -------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Refinance -
Rate Term 454 46,412,845.91 50.20 10.226 5.809 18 102,231 83.14 0.0 96.7 96.9 39.86
Purchase 380 39,100,134.89 42.29 10.409 6.134 16 102,895 87.14 0.0 88.4 97.7 38.93
Refinance - Cashout 73 6,944,478.18 7.51 10.074 5.569 14 95,130 83.52 100.0 100.0 99.5 40.70
- --------------- --------- --------- -------------- -------- -------- -------- -------- -------- ------- ------- ------- --------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- --------------- --------- --------- -------------- -------- -------- -------- -------- -------- ------- ------- ------- --------
</TABLE>
<TABLE>
<CAPTION>
- ---------------- --------- --------- ------------- -------- -------- ------- -------- -------- ------- ------- ------- --------
Weighted Weighted
Number of Aggregate %of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Distribution of Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Occupancy Status Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- ---------------- --------- --------- ------------- -------- -------- ------- -------- -------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Owner Occupied 872 90,062,817.34 97.41 10.289 5.922 17 103,283 85.09 7.7 93.9 100.0 39.50
Non-Owner Occupied 35 2,394,641.64 2.59 10.421 6.156 23 68,418 76.24 1.6 75.3 0.0 40.53
- ---------------- --------- --------- ------------- -------- -------- ------- -------- -------- ------- ------- ------- --------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- ---------------- --------- --------- ------------- -------- -------- ------- -------- -------- ------- ------- ------- --------
</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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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>
<CAPTION>
- --------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- ------- --------
Weighted Weighted
Number of Aggregate %of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Distribution of Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Property Types Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- --------------- --------- ---------- ------------------ -------- -------- ------- -------- ------- ------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Single Family Residence 884 89,818,953.61 97.15 10.274 5.901 17 101,605 84.94 7.7 95.1 98.0 39.53
2-4 Family 11 1,216,462.03 1.32 10.915 6.652 21 110,587 80.05 0.0 36.0 57.1 41.41
PUD 8 1,192,512.61 1.29 10.819 6.995 16 149,064 84.98 0.0 25.9 100.0 37.75
Condo 4 229,530.73 0.25 11.293 7.151 20 57,383 79.89 0.0 100.0 74.5 39.06
- -------------------------------- -------------------------------- --------------------- -------------------------------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- -------------------------------- -------------------------------- --------------------- -------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- ------- --------
Weighted Weighted
Number of Aggregate %of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Lien Position Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- --------------- --------- ---------- ------------------ -------- -------- ------- -------- ------- ------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1st Lien 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- --------------- ----------------------- --------------------- --------------------------------------------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- --------------- -------------------------------- --------------------- ----------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- ------- --------
Weighted Weighted
Number of Aggregate %of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Geographical Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Distribution (1) Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- --------------- --------- ---------- ------------------ -------- -------- ------- -------- ------- ------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Georgia 205 22,807,062.84 24.67 10.533 6.378 16 111,254 85.07 2.9 81.0 94.2 40.04
Illinois 104 10,863,039.88 11.75 10.640 5.779 15 104,452 84.06 10.7 100.0 98.6 40.48
Florida 96 8,775,018.06 9.49 10.461 5.836 18 91,406 86.92 4.8 92.3 98.6 38.30
Colorado 70 8,594,733.01 9.30 9.657 5.481 14 122,782 83.26 7.8 100.0 99.2 38.02
Ohio 74 6,502,747.73 7.03 10.536 5.873 19 87,875 86.31 8.4 97.1 98.7 42.49
Indiana 74 5,676,806.76 6.14 10.221 5.702 18 76,714 84.91 8.3 100.0 100.0 39.25
North Carolina 47 4,263,889.95 4.61 10.332 5.551 17 90,721 87.10 11.9 100.0 100.0 38.33
Tennessee 40 4,198,936.58 4.54 10.055 5.473 20 104,973 84.19 11.6 97.2 99.1 37.67
Utah 25 3,352,851.89 3.63 9.938 5.689 17 134,114 83.78 0.0 89.4 95.9 38.99
Kentucky 35 3,079,435.54 3.33 10.287 5.536 17 87,984 88.89 18.2 100.0 100.0 38.03
Washington 20 2,406,948.49 2.60 9.407 6.383 20 120,347 80.83 0.0 100.0 95.5 39.17
Virginia 22 1,925,481.08 2.08 10.345 5.686 18 87,522 83.86 7.9 100.0 91.5 39.44
Oregon 15 1,793,500.91 1.94 9.151 6.194 19 119,567 79.98 0.0 100.0 100.0 37.32
California-Northern 8 1,692,120.97 1.83 9.556 5.801 13 211,515 85.18 46.8 100.0 96.2 42.91
South Carolina 16 1,351,304.35 1.46 10.372 5.891 16 84,457 87.86 20.0 100.0 100.0 41.82
Arizona 11 1,245,990.18 1.35 10.105 6.999 12 113,272 80.22 18.6 79.6 100.0 32.28
Missouri 8 950,148.90 1.03 11.091 6.420 16 118,769 89.54 0.0 100.0 100.0 40.29
Michigan 7 675,245.85 0.73 10.421 6.145 23 96,464 72.59 0.0 100.0 95.7 49.49
Louisiana 7 559,478.13 0.61 10.951 7.014 20 79,925 85.67 0.0 81.3 87.4 48.08
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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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>
Mississippi 6 431,665.97 0.47 10.986 6.499 17 71,944 87.96 0.0 85.4 100.0 43.34
Idaho 6 410,629.28 0.44 9.523 5.989 20 68,438 76.38 0.0 100.0 100.0 31.69
Iowa 7 363,229.48 0.39 10.285 5.246 30 51,890 85.75 0.0 100.0 88.7 36.45
Maryland 1 215,902.38 0.23 9.900 5.480 11 215,902 90.00 0.0 100.0 100.0 43.78
California-Southern 1 171,755.21 0.19 10.250 4.750 33 171,755 90.00 0.0 100.0 100.0 29.04
Minnesota 1 91,672.16 0.10 9.900 6.806 19 91,672 85.00 0.0 100.0 100.0 40.18
Wyoming 1 57,863.40 0.06 8.690 5.550 19 57,863 74.84 0.0 100.0 100.0 39.37
- ------------------------------- ------------------------------- --------------------- ------------------------------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- -------------------------------- -------------------------------- --------------------- --------------------------------
<FN>
(1) Geographic location is determined by location of the related Mortgage Property; however, with respect to certain Mortgage Loans,
geographic location is determined by Mortgagor mailing address.
</FN>
</TABLE>
<TABLE>
<CAPTION>
- --------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- ------- --------
Weighted Weighted
Number of Aggregate %of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Top 20 Zip Codes Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- --------------- --------- ---------- ------------------ -------- -------- ------- -------- ------- ------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
30087 8 1,001,409.46 1.08 10.638 6.640 18 125,176 87.29 0.0 88.0 100.0 44.03
30032 10 891,574.00 0.96 10.310 6.174 23 89,157 77.38 0.0 47.0 47.0 42.08
30034 7 742,390.93 0.80 10.867 6.579 23 106,056 89.74 0.0 100.0 84.9 39.46
95608 2 738,853.94 0.80 9.082 5.453 10 369,427 82.55 74.5 100.0 100.0 39.46
80220 1 632,185.92 0.68 9.000 5.375 7 632,186 74.59 0.0 100.0 100.0 26.56
85259 3 616,216.38 0.67 10.606 6.993 12 205,405 84.08 0.0 71.0 100.0 28.90
30319 2 593,629.97 0.64 10.134 5.255 29 296,815 83.19 0.0 100.0 100.0 38.58
30296 5 568,256.26 0.61 10.903 6.840 16 113,651 85.56 0.0 57.3 100.0 40.33
30342 1 538,702.27 0.58 11.280 5.700 2 538,702 75.00 0.0 100.0 100.0 41.22
84088 3 532,742.45 0.58 10.531 5.387 20 177,581 87.18 0.0 100.0 100.0 45.07
30058 6 528,198.74 0.57 11.087 6.449 21 88,033 86.76 0.0 100.0 90.5 37.97
38017 3 516,740.64 0.56 10.211 5.182 16 172,247 85.52 14.9 100.0 100.0 31.39
30243 4 491,721.19 0.53 10.904 6.525 16 122,930 84.22 0.0 55.5 100.0 33.77
38138 1 459,000.00 0.50 9.580 4.750 33 459,000 79.69 0.0 100.0 100.0 38.95
40475 5 456,451.75 0.49 9.687 5.431 18 91,290 88.33 16.6 100.0 100.0 41.09
30281 4 443,049.31 0.48 10.618 5.723 20 110,762 82.08 0.0 100.0 100.0 40.76
46032 4 419,817.20 0.45 9.282 5.702 16 104,954 72.98 0.0 100.0 100.0 39.72
30247 3 419,231.53 0.45 10.368 6.899 7 139,744 87.47 0.0 66.6 100.0 41.85
60617 4 414,761.47 0.45 10.578 6.066 11 103,690 86.79 0.0 100.0 88.0 35.93
80221 4 413,486.89 0.45 9.560 5.334 14 103,372 85.24 0.0 100.0 100.0 40.12
Other 827 81,039,038.68 87.65 10.294 5.922 17 97,992 85.08 7.7 94.2 97.9 39.67
- -------------------------------- -------------------------------- --------------------- ------------------------------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- -------------------------------- -------------------------------- --------------------- -------------------------------
</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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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>
<CAPTION>
- --------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- ------- --------
Weighted Weighted
Number of Aggregate %of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Calendar Year Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
of Origination Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- --------------- --------- ---------- ------------------ -------- -------- ------- -------- ------- ------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1994 2 147,967.88 0.16 8.038 2.326 7 73,984 80.72 0.0 100.0 100.0 39.09
1997 905 92,309,491.10 99.84 10.296 5.934 17 101,999 84.87 7.5 93.4 97.4 39.53
- -------------------------- -------------------------------- --------------------- --------------------------------------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- -------------------------------- -------------------------------- --------------------- --------------------------------
Earliest Origination Date: 1994-03-16
Latest Maturity Date: 2028-01-01
- -------------------------------- -------------------------------- --------------------- -------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- ------- --------
Weighted Weighted
Number of Aggregate %of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Date of Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Origination Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- ------------ --------- ---------- ------------------ -------- -------- ------- -------- ------- ------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1994-03 1 83,745.44 0.09 7.875 2.000 6 83,745 69.81 0.0 100.0 100.0 35.00
1994-10 1 64,222.44 0.07 8.250 2.750 9 64,222 94.94 0.0 100.0 100.0 44.43
1997-01 1 199,137.14 0.22 8.375 7.750 1 199,137 65.77 100.0 100.0 100.0 31.00
1997-03 2 373,519.81 0.40 9.891 5.897 11 186,760 88.05 0.0 100.0 100.0 39.68
1997-04 2 267,615.53 0.29 9.960 5.748 4 133,808 87.52 37.3 100.0 100.0 41.17
1997-05 3 204,345.05 0.22 9.926 4.924 5 68,115 90.00 100.0 100.0 100.0 45.39
1997-06 45 5,580,338.33 6.04 9.664 6.279 14 124,008 81.78 16.2 92.9 98.1 35.56
1997-07 89 9,351,874.11 10.11 10.275 6.267 12 105,077 85.81 10.8 80.8 99.6 38.56
1997-08 123 12,622,667.28 13.65 10.331 5.712 14 102,623 85.22 5.5 95.7 99.0 38.89
1997-09 147 15,129,146.65 16.36 10.107 5.437 16 102,919 85.38 18.0 94.4 98.9 39.11
1997-10 196 20,028,506.09 21.66 10.216 5.708 19 102,186 84.51 1.2 98.4 98.9 39.54
1997-11 189 17,746,595.29 19.19 10.566 6.244 19 93,897 83.80 4.6 89.8 91.3 41.03
1997-12 108 10,805,745.82 11.69 10.631 6.323 19 100,053 87.04 0.5 96.5 98.2 41.27
- -------------------------------- -------------------------------- --------------------- -------------------------------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- -------------------------------- -------------------------------- --------------------- -------------------------------
</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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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.
<TABLE>
<CAPTION>
- --------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- ------- --------
Weighted Weighted
Original Number of Aggregate %of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Loan-to-Value Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Ratio Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- ------------ --------- ---------- ------------------ -------- -------- ------- -------- ------- ------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10.001 - 20.000 1 49,932.92 0.05 7.990 4.125 23 49,933 19.23 0.0 100.0 100.0 45.00
40.001 - 50.000 2 171,441.73 0.19 7.655 4.940 12 85,721 44.27 0.0 100.0 100.0 29.08
50.001 - 60.000 4 320,119.78 0.35 9.472 5.819 20 80,030 57.26 0.0 100.0 100.0 34.58
60.001 - 70.000 44 3,939,158.10 4.26 9.320 5.454 17 89,526 67.37 12.8 89.8 93.0 34.77
70.001 - 75.000 52 6,059,853.49 6.55 9.839 5.760 17 116,536 73.97 9.3 89.1 83.2 38.37
75.001 - 80.000 136 14,573,486.95 5.76 9.775 5.802 17 107,158 79.50 9.0 91.1 93.8 39.61
80.001 - 85.000 208 21,530,002.70 23.29 10.475 6.207 17 103,510 84.69 7.1 82.7 99.1 40.03
85.001 - 90.000 445 44,034,065.30 47.63 10.562 5.896 17 98,953 89.82 6.9 100.0 100.0 39.96
90.001 - 95.000 13 1,557,143.82 1.68 9.540 5.965 11 119,780 93.98 0.0 100.0 100.0 37.62
95.001 - 100.000 2 222,254.19 0.24 11.570 7.450 22 111,127 100.00 0.0 100.0 100.0 44.10
- -------------------------------- -------------------------------- --------------------- -------------------------------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- -------------------------------- -------------------------------- --------------------- ------------------------- -----
Min: 19.23
Max: 100.00
Weighted Average: 84.86
</TABLE>
<TABLE>
<CAPTION>
- --------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- ------- --------
Weighted Weighted
Number of Aggregate %of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Product Type Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- ------------ -------- ---------- ------------------ -------- -------- ------- -------- ------- ------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ARM - 6 Month 35 3,972,460.57 4.30 10.357 6.322 3 113,499 85.83 0.0 90.2 100.0 39.66
ARM - 18 Month Fixed/6 2 313,522.13 0.34 9.689 5.528 8 156,761 84.52 0.0 100.0 100.0 35.86
Month Adjustable
ARM - 2 Year Fixed/6 596 57,335,861.73 62.01 10.522 5.934 21 96,201 84.79 6.3 94.9 96.3 39.75
Month Adjustable
ARM - 3 Year Fixed/6 11 1,516,179.38 1.64 9.834 5.442 33 137,834 78.78 11.9 100.0 84.7 40.81
Month Adjustable
ARM - 1 Year 249 27,579,733.00 29.83 9.891 5.960 8 110,762 85.12 11.4 90.0 99.8 39.25
ARM - 2 Year Fixed/1 2 128,754.58 0.14 9.250 5.350 20 64,377 84.12 0.0 100.0 100.0 31.09
Year Adjustable
ARM - 3 Year Fixed/1 8 1,407,551.74 1.52 9.358 4.760 32 175,944 86.20 0.0 100.0 100.0 36.26
Year Adjustable
ARM - 3 Year 4 203,395.85 0.22 9.860 4.750 33 50,849 87.63 0.0 100.0 100.0 35.26
- -------------------------------- -------------------------------- --------------------- -------------------------------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- -------------------------------- -------------------------------- --------------------- -------------------------------
</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 Block Financial with respect to the expected characteristics of the
pool of home equity loans in which these securities will represent undivided
beneficial interests. The actual characteristics and performance of the home
equity 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 representations is
made that any performance or return indicated herein will be achieved. For
example, it is very unlikely that the loans will prepay at a constant rate or
follow a predicate 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 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>
<CAPTION>
- --------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- ------- --------
Weighted Weighted
Number of Aggregate %of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Index Type Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- ------------ --------- ---------- ------------------ -------- -------- ------- -------- ------- ------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Treasury - 1 Year 221 24,482,966.54 26.48 9.936 5.997 9 110,783 85.29 10.1 88.7 99.8 39.38
Treasury - 3 Year 7 1,001,481.43 1.08 9.508 4.750 33 143,069 85.91 0.0 100.0 100.0 36.77
Libor - 1 Month 33 3,657,316.15 3.96 9.485 5.507 7 110,828 84.41 18.0 100.0 100.0 37.21
Libor - 6 Month 646 63,315,694.86 68.48 10.488 5.944 20 98,012 84.71 6.0 94.8 96.3 39.77
- -------------------------------- -------------------------------- --------------------- --------------------------------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- -------------------------------- -------------------------------- --------------------- --------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- ------- --------
Weighted Weighted
Number of Aggregate %of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Balloon Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- ------------ --------- ---------- ------------------ -------- -------- ------- -------- ------- ------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balloon 546 52,895,792.93 57.21 10.332 5.654 18 96,879 85.92 9.6 100.0 98.1 39.75
Non-Balloon 361 39,561,666.05 42.79 10.239 6.295 15 109,589 83.44 4.8 84.6 96.5 39.24
- -------------------------------- -------------------------------- --------------------- ------------------------------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- -------------------------------- -------------------------------- --------------------- ------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------- --------- --------- -------------- -------- -------- -------- ------- -------- ------- ------- ------- --------
Weighted Weighted
Number of Aggregate %of Aggregate Weighted Weighted Average Average Average Percent Percent Percent Average
Mortgage Principal Principal Average Average Months Current Original Cashout Full Owner Debt
Prepayment Penalty Loans Balance Balance Coupon Margin to Roll Balance CLTV Refi Doc Occupied Ratio
- ------------ --------- ---------- ------------------ -------- -------- ------- -------- ------- ------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Prepayment Penalty 624 63,121,838.52 68.27 10.309 6.020 17 101,157 85.03 6.5 91.6 97.0 39.63
No Prepayment Penalty 283 29,335,620.46 31.73 10.256 5.730 15 103,659 84.51 9.6 97.3 98.4 39.31
- -------------------------------- -------------------------------- --------------------- -------------------------------
Total: 907 92,457,458.98 100.00 10.292 5.928 17 101,938 84.86 7.5 93.4 97.4 39.53
- -------------------------------- -------------------------------- --------------------- -------------------------------
</TABLE>
