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: December 16, 1997
(Date of earliest event reported)
Commission File No. 333-40467
PAINEWEBBER MORTGAGE ACCEPTANCE CORPORATION IV (as depositor under the Sale and
Servicing Agreement, dated as of December 1, 1997, relating to the Life
Financial Home Loan Owner Trust 1997-3, Home Loan Asset Backed Notes, Series
1997-3)
PAINEWEBBER MORTGAGE ACCEPTANCE CORPORATION IV
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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*[fn]
The Life Financial Home Loan Owner Trust 1997-3 (the "Issuer") was formed
pursuant to an owner trust agreement dated as of December 1, 1997 and entered
into by PaineWebber Mortgage Acceptance Corporation IV, as depositor, Wilmington
Trust Company, as owner trustee, Norwest Bank Minnesota National Association, as
paying agent and Life Investment Holdings, Inc., as transferor. The Issuer
issued seven classes of Home Loan Asset Backed Notes pursuant to indenture dated
as of December 1, 1997, between the Issuer and Norwest Bank Minnesota National
Association, as indenture trustee.
As of the Closing Date, the assets of the Issuer consist primarily of a
pool of certain closed-end home loans (the "Initial Loans"), as described herein
which are secured primarily by second lien mortgages, deeds of trust or other
similar security instruments.
The statistical information presented in the Prospectus Supplement, dated
December 10, 1997, concerning the Initial Loans identified as of such date is
based on the characteristics of a portion of such Initial Loans as of November
25, 1997. The following is information concerning all of the Initial Loans as of
November 30, 1997 (the "Cut-Off Date").
As of the Cut Off Date, the Initial Loans consisted of 5,602 Loans with a
Cut-Off Date Principal Balance totaling $187,350,664 (the "Cut-Off Date
Principal Balance"). As of the Cut-Off Date Adjustable Rate Loans represented
4.3% of the Cut-Off Date Principal Balance and the remainder of the Initial
Loans had fixed Loan Rates ("Fixed Rate Loans"). The Cut-Off Date Principal
Balances of the Initial Loans range from $9,372 to $81,233 and average $33,444.
As of the Cut-Off Date, the weighted average remaining term to stated maturity
of the Initial Loans was approximately 214 months and the weighted average
number of months that have elapsed since origination was 3 months. As of the
Cut-Off Date, the weighted average Combined Loan-to-Value Ratio of the Initial
Loans was approximately 108.0% with the highest Combined Loan-to-Value Ratio
being 135%. As of the Cut-Off Date 3,952 of the Initial Loans (representing
approximately 73.2% of the Cut-Off Date Principal Balance) had a Combined
Loan-to-Value Ratio in excess of 100%.
The Initial Loans that are Fixed Rate Loans bear interest at fixed Loan
Rates that ranged from approximately 9.10% to approximately 18.49% per annum as
of the Cut-Off Date. The weighted average Loan Rate for the Initial Loans that
are Fixed Rate Loans was approximately 14.1% per annum as of the Cut-Off Date.
- ------------
[fn]
* Capitalized terms used and not otherwise defined herein shall have the same
meanings ascribed to them in the Prospectus Supplement dated December 10, 1997
and the Prospectus dated November 18, 1997 (collectively referred to herein as
the "Prospectus"). The Prospectus has been filed with the Securities and
Exchange Commission pursuant to Rule 424(b)(5) under file number 333-40467.
As of the Cut-Off Date, the Loan Rates for the Adjustable Rate Loans ranged
from 9.25% to 14.00% and the Gross Margins for the Adjustable Rate Loans ranged
from 4.63% to 9.50%. As of the Cut-Off Date, the weighted average Loan Rate of
the Adjustable Rate Loans was 11.5% and the weighted average Gross Margin of the
Adjustable Rate Loans was approximately 6.8%. The Periodic Rate Cap limits
changes in the Loan Rate for each Adjustable Rate Loan on each Change Date to
150 basis points in the case of Adjustable Rate Loans based on a LIBOR Index.
The Lifetime Cap for each Adjustable Rate Loan is the rate which is generally
600 basis points greater than the initial Loan Rate for such Adjustable Rate
Loan. As of the Cut-Off Date, the Lifetime Caps of the Adjustable Rate Loans
ranged from 12.80% to 20.00% and the Lifetime Floors of the Adjustable Rate
Loans ranged from 9.25% to 14.00%. As of the Cut-Off Date, the weighted average
Lifetime Cap of the Adjustable Rate Loans was approximately 17.49% and the
weighted average Lifetime Floor was approximately 11.51%. As of the Cut-Off
Date, the number of months to the next Change Date of the Adjustable Rate Loans
ranged from two months to six months. As of the Cut-Off Date, the weighted
average months to next Change Date was approximately 5.06 months.
As of the Cut-Off Date, no Initial Loan was scheduled to mature later than
January 2023.
As of the Cut-Off Date, 100% of the Initial Loans (by Cut-Off Date
Principal Balance) were secured by Mortgaged Properties represented by the
related Obligors to be owner-occupied.
As of the Cut-Off Date, none of the Initial Loans were 30 days or more past
due. The weighted average Credit Score for the Initial Loans as of the Cut-Off
Date was 673.
The following tables are based on certain statistical characteristics with
respect to the Initial Loans as of the Cut-Off Date. The sum of the dollar
amounts and percentages in the following tables may not equal the totals due to
rounding.
<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
December , 1997
By: /s/ Joseph Piscina
-------------------
Joseph Piscina
Director
<PAGE>
Geographic Distribution of Initial Loans
----------------------------------------
State Number Aggregate % of Total
of Principal by Aggregate
Loans Balance Principal
Balance
Alabama 250 7,495,895 4.0
Alaska 3 128,489 0.1
Arizona 230 8,236,745 4.4
Arkansas 16 581,753 0.3
California 842 32,264,228 17.2
Colorado 149 5,450,433 2.9
Connecticut 34 1,152,959 0.6
Delaware 21 682,951 0.4
District of Columbia 9 307,134 0.2
Florida 341 11,131,166 5.9
Georgia 237 7,907,976 4.2
Hawaii 28 1,172,122 0.6
Idaho 73 2,285,670 1.2
Illinois 125 4,259,781 2.3
Indiana 107 3,299,127 1.8
Iowa 38 1,057,832 0.6
Kansas 213 6,461,848 3.4
Kentucky 36 1,012,286 0.5
Maine 8 281,987 0.2
Maryland 292 10,472,461 5.6
Massachusetts 20 685,338 0.4
Michigan 67 1,876,235 1.0
Minnesota 60 1,920,714 1.0
Mississippi 7 254,914 0.1
Missouri 196 6,012,654 3.2
Montana 37 1,248,391 0.7
Nebraska 39 1,201,948 0.6
Nevada 125 4,305,697 2.3
New Hampshire 4 98,250 0.1
New Jersey 29 1,018,558 0.5
New Mexico 33 1,091,059 0.6
New York 35 1,102,324 0.6
North Carolina 271 8,641,056 4.6
Ohio 284 8,627,653 4.6
Oklahoma 351 10,813,092 5.8
Oregon 57 2,194,006 1.2
Pennsylvania 60 1,893,494 1.0
Rhode Island 20 601,807 0.3
South Carolina 77 2,379,131 1.3
South Dakota 2 83,870 0.0
Tennessee 59 1,719,480 0.9
Texas 1 24,590 0.0
Utah 91 3,120,783 1.7
Vermont 3 103,938 0.1
Virginia 464 15,292,697 8.2
Washington 93 3,241,116 1.7
West Virginia 1 48,000 0.0
Wisconsin 43 1,338,152 0.7
Wyoming 21 768,875 0.4
------ ----------- -----
Total 5,602 $187,350,664 100.0%
===== ============ =====
Principal Balance of Fixed Rate Loans
-------------------------------------
Range of Principal Number Aggregate % of Total
Balances of Principal by Aggregate
Loans Balance Principal
of Balance of
Fixed Fixed
Rate Loans Rate Loans
$2,500.01 - $10,000 16 157,419 0.1
$10,000.01 - $20,000 629 10,621,076 5.9
$20,000.01 - $30,000 1,608 41,232,096 23.0
$30,000.01 - $40,000 1,950 68,733,370 38.3
$40,000.01 - $50,000 750 34,684,667 19.3
$50,000.01 - $60,000 273 15,166,442 8.5
$60,000.01 - $70,000 102 6,636,187 3.7
$70,000.01 - $80,000 28 2,072,055 1.2
$80,000.01 - $90,000 1 81,233 0.0
------ ----------- -----
Total 5,357 $179,384,545 100.0%
===== ============ =====
As of the Cut-0ff Date, the average Cut-Off Date Principal Balance of the
Initial Loans that are Fixed Rate Loans was $33,486.
Principal Balances of Adjustable Rate Loans
-------------------------------------------
Range of Principal Number Aggregate % of Total
Balances of Principal by Aggregate
Loans Balance Principal
of Balance of
Adjustable Adjustable
Rate Loans Rate Loans
$10,000.01 - $20,000 33 536,112 6.7
$20,000.01 - $30,000 76 1,930,373 4.2
$30,000.01 - $40,000 100 3,540,958 44.5
$40,000.01 - $50,000 17 812,152 10.2
$50,000.01 - $60,000 15 867,867 10.9
$60,000.01 - $70,000 3 199,700 2.5
$70,000.01 - $80,000 1 78,958 1.0
------ ----------- -----
Total 245 $ 7,966,119 100.0%
=== ============ =====
As of the Cut-Off Date, the average Cut-Off Date Principal Balance of the
Initial Loans that are Adjustable Rate Loans was $32,515.
Loan Rates of Fixed Rate Loans
------------------------------
Range of Loan Rates Number Aggregate % of Total
of Principal by Aggregate
Loans Balance Principal
of Balance of
Fixed Fixed
Rate Loans Rate Loans
9.001% - 9.500% 1 34,020 0.0
9.501% - 10.000% 11 365,273 0.2
10.501% - 11.000% 1 27,574 0.0
11.001% - 11.500% 31 896,399 0.5
11.501% - 12.000% 192 6,703,287 3.7
12.001% - 12.500% 347 12,130,942 6.8
12.501% - 13.000% 633 21,915,939 12.2
13.001% - 13.500% 618 20,915,816 11.7
13.501% - 14.000% 888 31,163,671 17.4
14.001% - 14.500% 657 22,027,871 12.3
14.501% - 15.000% 784 26,000,610 14.5
15.001% - 15.500% 481 15,331,610 8.5
15.501% - 16.000% 414 12,938,959 7.2
16.001% - 16.500% 124 3,792,564 2.1
16.501% - 17.000% 123 3,679,078 2.1
17.001% - 17.500% 29 839,631 0.5
17.501% - 18.000% 21 565,624 0.3
18.001% - 18.500% 2 55,677 0.0
------ ----------- -----
Total 5,357 $179,384,545 100.0%
===== ============ =====
As of the Cut-Off Date, the weighted average Loan Rate of the Initial Loans
that are Fixed Rate Loans was approximately 14.1% per annum.
Loan Rates of Adjustable Rate Loans
-----------------------------------
Range of Loan Rates Number Aggregate % of Total
of Principal by Aggregate
Loans Balance Principal
of Balance of
Adjustable Adjustable
Rate Loans Rate Loans
9.001% - 9.500% 3 88,378 1.1
9.501% - 10.000% 15 475,058 6.0
10.001% - 10.500% 22 739,536 9.3
10.501% - 11.000% 42 1,386,569 17.4
11.001% - 11.500% 35 1,143,078 14.3
11.501% - 12.000% 51 1,668,663 20.9
12.001% - 12.500% 37 1,198,417 15.0
12.501% - 13.000% 29 927,271 11.6
13.001% - 13.500% 5 164,802 2.1
13.501% - 14.000% 6 174,346 2.2
--- ------------- -----
Total 245 $ 7,966,119 100.0%
=== ============ =====
As of the Cut-Off Date, the weighted average Loan Rate of the Initial Loans
that are Adjustable Rate Loans was approximately 11.5% per annum.
Gross Margins
-------------
Margins Number Aggregate % of Total
of Principal by Aggregate
Initial Balance Principal
Loans of Balance of
Adjustable Adjustable
Rate Loans Rate Loans
4% to 4.9999% 3 88,378 1.1
5% to 5.9999% 50 1,600,485 20.1
6% to 6.9999% 87 3,017,925 37.9
7% to 7.9999% 75 2,335,321 29.3
8% to 8.9999% 23 739,538 9.3
9% to 9.9999% 7 184,472 2.3
------ ----------- -----
Total 245 $ 7,966,119 100.0%
=== ============ =====
As of the Cut-Off Date, the weighted average Gross Margin for the Initial
Loans that are Adjustable Rate Loans was 6.8%.
Lifetime Caps
-------------
Lifetime Cap Number Aggregate % of Total
of Principal by Aggregate
Initial Balance Principal
Loans of Balance of
Adjustable Adjustable
Rate Loans Rate Loans
12.501% - 13.000% 1 26,072 0.3
15.001% - 15.500% 3 88,378 1.1
15.501% - 16.000% 15 475,058 6.0
16.001% - 16.500% 22 739,536 9.3
16.501% - 17.000% 41 1,351,593 17.0
17.001% - 17.500% 34 1,117,006 14.0
17.501% - 18.000% 53 1,738,461 21.8
18.001% - 18.500% 37 1,198,417 15.0
18.501% - 19.000% 28 892,449 11.2
19.001% - 19.500% 5 164,802 2.1
Over 19.501% 6 174,346 2.2
------ ----------- -----
Total 245 $ 7,966,119 100.0%
=== ============ =====
As of the Cut-Off Date, the weighted average Lifetime Cap for the Initial
Loans that are Adjustable Rate Loans was 17.5%.
Lifetime Floors
---------------
Lifetime Floor Number Aggregate % of Total
of Principal by Aggregate
Initial Balance Principal
Loans of Balance of
Adjustable Adjustable
Rate Loans Rate Loans
9.001% - 9.500% 3 88,378 1.1
9.501% - 10.000% 15 475,058 6.0
10.001% - 10.500% 22 739,536 9.3
10.501% - 11.000% 42 1,386,569 17.4
11.001% - 11.500% 35 1,143,078 14.3
11.501% - 12.000% 51 1,668,663 20.9
12.001% - 12.500% 37 1,198,417 15.0
12.501% - 13.000% 28 877,365 11.0
13.001% - 13.500% 5 164,802 2.1
13.501% - 14.000% 7 224,252 2.8
------ ----------- -----
Total 245 $ 7,966,119 100.0%
=== ============ =====
As of the cut-Off Date, the weighted average Lifetime Floor for the Initial
Loans that are Adjustable Rate Loans was 11.5%.
Lien Priority
-------------
% of Total
Number Aggregate by Aggregate
Lien Priority of Loans Principal Balance Principal Balance
------------- -------- ----------------- -----------------
Second Lien............. 5,602 $187,350,664 100.0%
----- ------------ -----
Total............ 5,602 $187,350,664 100.0%
===== ============ =====
Combined Loan-to-Value Ratios
-----------------------------
Range of Combined Number Aggregate % of Total
Loan-to-Value Ratios of Principal by Aggregate
Loans Balance Principal
Balance
5.01% to 10% 1 12,305 0.0
10.01% to 15% 9 235,299 0.1
15.01% to 20% 23 657,005 0.4
20.01% to 25% 40 1,152,817 0.6
25.01% to 30% 50 1,702,190 0.9
30.01% to 35% 52 1,762,681 0.9
35.01% to 40% 49 1,880,615 1.0
40.01% to 45% 37 1,445,103 0.8
45.01% to 50% 21 776,820 0.4
50.01% to 55% 13 615,123 0.3
55.01% to 60% 12 441,327 0.2
60.01% to 65% 17 587,065 0.3
65.01% to 70% 12 427,982 0.2
70.01% to 75% 9 238,071 0.1
75.01% to 80% 20 569,749 0.3
80.01% to 85% 43 1,201,282 0.6
85.01% to 90% 105 2,902,094 1.5
90.01% to 95% 270 7,528,693 4.0
95.01% to 100% 867 26,043,882 13.9
100.01% to 105% 332 10,348,099 5.5
105.01% to 110% 511 16,357,908 8.7
110.01% to 115% 643 21,232,635 11.3
115.01% to 120% 812 28,658,067 15.3
120.01% to 125% 1,393 50,608,517 27.0
125.01% to 130% 154 5,903,705 3.2
130.01% to 135% 106 4,022,140 2.1
135.01% to 140% 1 39,491 0.0
------ ----------- -----
Total 5,602 $187,350,664 100.0%
===== ============ =====
As of the Cut-Off Date, the weighted average Combined Loan-to-Value Ratio
of the Initial Loans was approximately 108.0%.
Months Since Origination
------------------------
Loan Age Number Aggregate % of Total
(in months) of Principal by Aggregate
Loans Balance Principal
Balance
Less than one 892 28,515,206 15.2
1 - 3 2,574 84,883,032 45.3
4 - 6 1,364 47,737,699 25.5
7 - 9 681 23,506,434 12.5
10 or greater 91 2,708,293 1.4
------ ----------- -----
Total 5,602 $187,350,664 100.0%
===== ============ =====
As of the Cut-Off Date, the weighted average number of months since
origination of the Initial Loans was 3 months.
Remaining Terms to Maturity
---------------------------
Range of Remaining Number Aggregate % of Total
Terms to Maturity of Principal by Aggregate
(in months) Loans Balance Principal
Balance
31 - 60 25 543,608 0.3
61 - 90 21 443,963 0.2
91 - 120 205 5,580,206 3.0
121 - 150 10 286,112 0.2
151 - 180 2,765 87,594,134 46.8
181 - 210 1 21,936 0.0
211 - 240 1,732 63,237,298 33.8
271 - 300 843 29,643,406 15.8
------ ----------- -----
Total 5,602 $187,350,664 100.0%
===== ============ =====
As of the Cut-Off Date, the weighted average remaining term to maturity of
the Initial Loans was approximately 214 months.
Original Terms to Maturity
--------------------------
Original Term to Number Aggregate % of Total
Maturity of Principal by Aggregate
(in months) Loans Balance Principal
Balance
31 - 60 25 543,608 0.3
61 - 90 17 348,347 0.2
91 - 120 209 5,675,823 3.0
121 - 150 9 251,550 0.1
151 - 180 2,766 87,628,697 46.8
181 - 210 1 21,936 0.0
211 - 240 1,732 63,237,298 33.8
271 - 300 843 29,643,406 15.8
------ ----------- -----
Total 5,602 $187,350,664 100.0%
===== ============ =====
As of the Cut-Off Date, the weighted average original term to maturity of
the Initial Loans was approximately 217 months.
Credit Score
------------
Range of Credit Number Aggregate % of Total
Scores of Principal by Aggregate
Loans Balance Principal
Balance
less than 600 6 158,947 0.1
600 to 609 6 174,637 0.1
610 to 619 28 741,227 0.4
620 to 629 408 11,940,947 6.4
630 to 639 459 13,749,217 7.3
640 to 649 735 23,660,492 12.6
650 to 659 710 23,037,568 12.3
660 to 669 650 22,413,593 12.0
670 to 679 595 21,007,359 11.2
680 to 689 498 17,162,052 9.2
690 to 699 401 14,417,837 7.7
700 to 709 336 12,419,450 6.6
710 to 719 256 8,931,793 4.8
720 to 729 178 6,115,324 3.3
730 to 739 121 4,177,221 2.2
740 to 749 73 2,534,421 1.4
750 to 759 53 1,831,193 1.0
760 to 769 43 1,338,489 0.7
770 to 779 22 672,288 0.4
780 to 789 14 526,731 0.3
790 to 799 8 248,873 0.1
800 to 999 2 91,004 0.0
------ ----------- -----
Total 5,602 $187,350,664 100.0%
===== ============ =====
