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: May 20, 1998
(Date of earliest event reported)
Commission File No. 333-35653
PAINEWEBBER MORTGAGE ACCEPTANCE CORPORATION IV (as depositor under the Sale and
Servicing Agreement, dated as of October 1, 1997, relating to the DiTech Home
Loan Owner Trust 1997-1, Home Loan Asset Backed Notes, Series 1997-1)
PAINEWEBBER MORTGAGE ACCEPTANCE CORPORATION IV
Delaware 06-1204982
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(State of Incorporation) (I.R.S. Employer Identification No.)
1285 Avenue of the Americas
New York, New York 10019
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Address of principal executive offices (Zip Code)
(212) 713-2000
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Registrant's Telephone Number, including area code
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(Former name, former address and former fiscal year,
if changed since last report)
<PAGE>
ITEM 5. Other Events
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Pursuant to the Sale and Servicing Agreement dated as of October 1, 1997
(the "Sale and Servicing Agreement") among DiTech Home Loan Owner Trust 1997-1
(the "Issuer"), PaineWebber Mortgage Acceptance Corporation IV (the "Depositor")
and The Bank of New York (the "Indenture Trustee"), DiTech Funding Corporation
("DiTech") is responsible for servicing the Loans. On October 30, 1997, DiTech
delegated its servicing responsibilities with respect to the Loans to Midwest
Mortgage Servicing L.L.C. (the "Subservicer"). On May 20, 1998, the Subservicer
was removed and the servicing responsibilities with respect to the Loans were
transferred to DiTech. Following such transfer of servicing to DiTech, Duff &
Phelps Credit Rating Co. ("DCR") and Standard & Poor's Ratings Services each
reaffirmed the outstanding ratings on the Offered Certificates, as more
particularly set forth in Exhibits 99.1 and 99.2 attached hereto.
According to the DCR press release, attached as Exhibit 99.2, GMAC Mortgage
Corporation ("GMAC Mortgage") and DiTech have executed a letter of intent
pursuant to which GMAC Mortgage and DiTech have agreed to enter into an
agreement whereby GMAC Mortgage will generally oversee the servicing and
collection efforts of DiTech and perform monthly reconciliation of servicing
reports produced by DiTech.
Capitalized terms used herein and not defined herein have the same meanings
ascribed to such terms in the Prospectus Supplement of the Depositor dated
October 24, 1997 to Prospectus dated October 24, 1997, with respect to the
issuance of the DiTech Home Loan Owner Trust 1997-1 Home Loan Asset Backed
Notes, Series 1997-1, Class A-1, Class A-2, Class A-3, Class A-4, Class M-1 and
Class M-2 Notes (the "Offered Notes").
<PAGE>
ITEM 7. Financial Statements and Exhibits
---------------------------------
(c) Exhibits
Item 601(a)
of Regulation S-K
Exhibit No. Description
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99.1 Letter of Standard and Poor's Rating Services,
dated May 27, 1998, with respect to no change of
certificate ratings as a result of the transfer of
servicing responsibilities.
99.2 Press Release of Duff & Phelps Credit Rating
Company, dated June 1, 1998, with respect to no
change of certificate ratings as a result of the
transfer of servicing responsibilities.
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PAINEWEBBER MORTGAGE ACCEPTANCE
CORPORATION IV
June 3, 1998
By: /s/ Barbara Dawson
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Barbara Dawson
Senior Vice President
<PAGE>
INDEX TO EXHIBITS
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Paper (P) or
Exhibit No. Description Electronic (E)
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99.1 Letter of Standard & Poor's (E)
Rating Services, dated, May 27,
1998, with respect to no change of
certificate ratings as a result of the
transfer of servicing responsibilities.
99.2 Press Release of Duff & Phelps Credit (E)
Rating Company, dated June 1,
1998, with respect to no change of
certificate ratings as a result of the
transfer of servicing
responsibilities.
[Letterhead of Standard & Poor's]
May 27, 1998
Mr. Jay Marx
DiTech Funding Corp.
1920 Main Street, Room 400
Irvine, CA 92614
RE: DiTech Home Loan Owner Trust 1997-1 Asset-Backed Notes,
Series 1997-1
Dear Mr. Marx:
We have concluded that the removal of Midwest Mortgage Servicing, L.L.C. as
sub-servicer for the above referenced residential mortgage transaction will not
adversely affect the current ratings. It is our understanding the DiTech Funding
Corp. will maintain its obligation as servicer.
Standard and Poor's affirmation of the ratings referred to in this letter
only addresses the effect of the proposed change on the last rating assigned by
Standard and Poor's to the securities. Rating affirmation does not address the
effect of such change on the rights or interest of the holders of the securities
under the documents or whether such change is permitted by the terms of the
documents.
We are pleased to have had the opportunity to be of service to you. If we
can be of further help, please do not hesitate to call upon us.
Very truly yours,
/s/ Peter D'Erchia
Peter D'Erchia
Managing Director
Structured Finance
DCR
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Duff & Phelps Credit Rating Co.
PRESS RELEASE
DCR Reaffirms Ratings on DiTech Home Loan Owner Trust 1997-1
Chicago (June 1, 1998) - Duff & Phelps Credit Rating Co. (DCR) reaffirmed the
outstanding ratings on DiTech Funding Corp.'s (DiTech) high loan-to-value loan
securitization transaction. This reaffirmation follows the transfer of servicing
to its new servicing operation and the signing of a letter of intent to provide
master servicing by GMAC Mortgage. The home loan asset-backed notes were issued
by DiTech Home Loan Owner Trust 1997-1 in October 1997. The ratings on the six
classes of publicly offered securities are affirmed as follows:
Class Original Amount DCR Rating
A-1 $24,636,000 AAA (Triple-A)
A-2 $22,945,000 AAA (Triple-A)
A-3 $24,897,000 AAA (Triple-A)
A-4 $13,622,000 AAA (Triple-A)
M-1 $17,700,000 AA (Double-A)
M-2 $ 7,200,000 A (Single-A)
DiTech, the servicer of the transaction, has set up servicing operations in
Mountainside, N.J. to service its high loan-to-value ratio home improvement and
debt consolidation home loans. Servicing on the loans collateralizing Series
1997-1 was transferred on May 20, 1998. DCR has visited the servicing operations
of DiTech and believes that the company has the experience and staff to service
the home loans in a manner sufficient to support the certificate ratings. The
Bank of New York continues to act as back-up servicer and is receiving loan
level servicing tapes to facilitate this role.
Additionally, DiTech intends to retain GMAC Mortgage as master servicer for the
Series 1997-1 transaction. To this end, GMAC Mortgage has issued, and DiTech has
executed, a letter of intent dated May 27, 1998, to enter into a Master
Servicing Agreement for the transaction. Under this agreement, GMAC Mortgage
will generally oversee the servicing and collection efforts of DiTech and
perform monthly reconciliation of servicing reports produced by DiTech.
DiTech Funding Corp., originator and servicer of the loans, is a California
corporation that is a mortgage lender engaged in the business of originating,
purchasing, selling, securitizing and servicing home loans on one- to
four-family residential properties, including first mortgage loans as well as
non-conforming second lien home loans. DiTech was incorporated in California in
1995 and currently is licensed or registered as a mortgage lender in 49 states.
DiTech has been originating non-conforming second lien loans since September
1996.
DCR Contacts:
Michelle Lyn-Russell
(312) 368-2087
[email protected]
Henry W. Hayssen
(212) 908-0209
[email protected]
CHICAGO NEW YORK LONDON HONG KONG
(312) 368-3100 (212) 908-0200 (###-##-####) 417-7920 (852) 2901-0500
