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 22, 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 Empire
Funding Home Loan Owner Trust 1997-5, Home Loan Asset Backed Notes, Series
1997-5)
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)
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ITEM 5. Other Events [FN*]
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FN * Capitalized terms used and not otherwise defined herein shall have the
same meanings ascribed to them in the Prospectus Supplement dated December
16, 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.
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The Empire Funding Home Loan Owner Trust 1997-5 (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 (the
"Depositor"), Wilmington Trust Company, as owner trustee, U.S. Bank National
Association d/b/a First Bank National Association ("U.S. Bank"), as paying agent
and Empire Funding Corp., as servicer ("Empire Funding"). The Issuer issued ten
classes of Home Loan Asset Backed Notes pursuant to an indenture dated as of
December 1, 1997 between the Issuer and U.S. Bank, as indenture trustee.
As of the Closing Date assets of the Issuer consist primarily of a Grantor
Trust Certificate evidencing 100% of the ownership interest in Empire Funding
Grantor Trust 1997-5 (the "Grantor Trust"), formed pursuant to a grantor trust
agreement dated as of December 1, 1997 and entered into by the Depositor, U.S.
Bank, as grantor trustee and Empire Funding, the assets of which consist
primarily of a pool of certain closed-end, fixed rate home loans (the "Initial
Loans"), as described herein which are either secured primarily by second lien
mortgages, deeds of trust or other similar security instruments or unsecured.
The statistical information presented in the Prospectus Supplement, dated
December 16, 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
30, 1997. The following is information concerning all of the Initial Loans as of
the close of business on November 30, 1997 (or with respect to any Initial Loan
originated or acquired by Empire Funding after November 30, 1997, the date of
origination or acquisition of such Initial Loan) (the "Cut-Off Date").
As of the Cut Off Date, the Initial Loans consisted of 5,519 Loans with a
Cut-Off Date Principal Balance totaling $180,191,204 (the "Cut-Off Date
Principal Balance"). As of the Cut-Off Date, all the Initial Loans had fixed
Loan Rates ("Fixed Rate Loans") which ranged from 9.99% per annum to 18.50% per
annum and had a weighted average Loan Rate of approximately 14.249% per annum.
The Cut-Off Date Principal Balances of the Initial Loans ranged from $1,426 to
$99,938 and average $32,649. As of the Cut-Off Date, the weighted average
remaining term to stated maturity of the Initial Loans was approximately 243
months and the weighted average number of months that have elapsed since
origination was one month. As of the Cut-Off Date, the weighted average Combined
Loan-to-Value Ratio of the Initial Loans which were Mortgage Loans was
approximately 117.24% with the highest Combined Loan-to-Value Ratio being
147.00%. As of the Cut-Off Date 5,084 of the Initial Loans which were Mortgage
Loans (representing approximately 98.14% of the Cut-Off Date Principal Balance
of such Initial Loans) had a Combined Loan-to-Value Ratio in excess of 100%. As
of the Cut-Off Date, all of the Initial Loans are fully amortizing loans having
original stated maturities of not more than 25 years. As of the Cut-Off Date, no
Initial Loan was scheduled to mature later than December 9, 2022.
As of the Cut-Off Date, approximately 100% of the Initial Loans (by Cut-Off
Date Principal Balance) which were Mortgage Loans were secured by Mortgaged
Properties located in 48 states and the District of Columbia. As of the Cut-Off
Date, approximately 100% of the Initial Loans (by Cut-Off Date Principal
Balance) which were Mortgage Loans 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 672.
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 22, 1997
By: /s/ Joseph Piscina
Joseph Piscina
Director
<PAGE>
Geographic Distribution of Initial Loans
% of Total by
Aggregate Aggregate
State Number of Loans Principal Balance Principal Balance
Alabama............... 10 $ 287,547 0.16
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Alaska................ 22 875,278 0.49
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Arizona............... 297 9,410,670 5.22
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Arkansas.............. 20 776,709 0.43
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California............ 1,399 52,880,981 29.35
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Colorado.............. 175 5,617,445 3.12
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Connecticut........... 14 423,237 0.23
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Delaware.............. 8 293,839 0.16
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District of Columbia.. 11 420,785 0.23
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Florida............... 238 6,428,924 3.57
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Georgia............... 176 5,520,986 3.06
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Hawaii................ 15 600,938 0.33
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Idaho................. 36 1,183,505 0.66
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Illinois.............. 179 6,167,159 3.42
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Indiana............... 142 4,302,222 2.39
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Iowa.................. 56 1,820,028 1.01
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Kansas................ 141 4,522,890 2.51
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Kentucky.............. 61 1,726,991 0.96
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Louisiana............. 66 1,714,912 0.95
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Maine................. 12 329,100 0.18
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Maryland.............. 283 10,507,617 5.83
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Massachusetts......... 9 327,483 0.18
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Michigan.............. 165 5,896,887 3.27
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Minnesota............. 168 6,462,656 3.59
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Mississippi........... 27 476,355 0.26
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Missouri.............. 344 10,211,877 5.67
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Montana............... 6 223,113 0.12
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Nebraska.............. 54 1,644,945 0.91
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Nevada................ 92 3,199,148 1.78
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New Hampshire......... 1 39,989 0.02
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New Jersey............ 22 884,793 0.49
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New Mexico............ 51 2,014,264 1.12
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New York.............. 20 715,449 0.40
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North Carolina........ 240 6,960,947 3.86
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Ohio.................. 17 435,915 0.24
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Oklahoma.............. 96 2,277,024 1.26
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Oregon................ 61 1,733,797 0.96
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Pennsylvania.......... 129 4,127,931 2.29
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Rhode Island.......... 3 88,574 0.05
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South Carolina........ 114 3,345,250 1.86
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South Dakota.......... 1 35,000 0.02
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Tennessee............. 77 1,918,697 1.06
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Texas................. 104 701,115 0.39
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Utah.................. 68 2,345,754 1.30
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Virginia.............. 127 4,373,349 2.43
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Washington............ 142 3,299,360 1.83
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West Virginia......... 2 62,436 0.03
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Wisconsin............. 13 446,404 0.25
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Wyoming............... 5 130,930 0.07
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Total....... 5,519 $ 180,191,204 100.00%
Principal Balances
% of Total by
Aggregate
Number Aggregate Principal
Range of Principal Balances of Loans Principal Balance Balance
$10,000 or less........... 365 2,036,896 1.13
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$10,000.01--$20,000....... 691 11,446,718 6.35
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$20,000.01--$30,000....... 1,338 35,037,073 19.44
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$30,000.01--$40,000....... 1,927 67,724,726 37.58
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$40,000.01--$50,000....... 673 31,593,833 17.53
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$50,000.01--$60,000....... 319 18,096,438 10.04
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$60,000.01--$70,000....... 144 9,559,788 5.31
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$70,000.01--$80,000....... 59 4,395,963 2.44
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$80,000.01 or greater..... 3 299,768 0.17
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Total............ 5,519 $ 180,191,204 100.00%
As of the Cut-Off Date, the average Cut-Off Principal Balance of the
Initial Loans was $32,649.
Loan Rates
% of Total by
Aggregate Aggregate
Range of Loan Rates Number of Loans Principal Balance Principal Balance
9.501%--10.000%......... 1 $ 41,811 0.02%
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10.501%--11.000%......... 49 1,863,986 1.03
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11.001%--11.500%......... 53 2,261,056 1.25
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11.501%--12.000%......... 203 7,533,147 4.18
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12.001%--12.500%......... 249 9,656,494 5.36
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12.501%--13.000%......... 886 25,085,444 13.92
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13.001%--13.500%......... 447 16,676,844 9.26
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13.501%--14.000%......... 841 27,945,703 15.51
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14.001%--14.500%......... 416 14,698,817 8.16
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14.501%--15.000%......... 899 30,353,477 16.85
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15.001%--15.500%......... 331 10,374,206 5.76
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15.501%--16.000%......... 627 18,695,690 10.38
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16.001%--16.500%......... 217 6,384,506 3.54
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16.501%--17.000%......... 244 6,946,706 3.86
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17.001%--17.500%......... 15 463,202 0.26
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17.501%--18.000%......... 37 1,086,174 0.60
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18.001%--18.500%......... 4 123,941 0.07
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Total........... 5,519 $180,191,204 100.00%
As of the Cut-Off Date, the weighted average Loan Rate of the Initial Loans
was approximately 14.249% per annum.
Lien Priority
% of Total by
Aggregate Aggregate
Lien Priority Number of Loans Principal Balance Principal Balance
First Lien............. 1 $ 50,000 0.03%
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Second Lien............ 5,108 177,460,564 98.48
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Unsecured.............. 410 2,680,640 1.49
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Total......... 5,519 $180,191,204 100.00%
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Combined Loan-to-Value Ratios
% of Total by
Range of Combined Aggregate Aggregate
Loan-to-Value Ratios Number of Loans Principal Balance Principal Balance
Unsecured.............. 410 $ 2,680,640 1.49
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25.01%-- 30.00%....... 1 14,739 0.01
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40.01%-- 45.00%....... 3 67,983 0.04
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45.01%-- 50.00%....... 3 128,735 0.07
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55.01%-- 60.00%....... 1 3,611 0.00
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70.01%-- 75.00%....... 1 4,981 0.00
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80.01%-- 85.00%....... 2 26,481 0.01
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85.01%-- 90.00%....... 3 98,654 0.05
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90.01%-- 95.00%....... 7 236,939 0.13
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95.01%--100.00%....... 4 85,204 0.05
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100.01%--105.00%....... 429 13,500,546 7.49
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105.01%--110.00%....... 629 19,820,657 11.00
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110.01%--115.00%....... 831 27,335,523 15.17
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115.01%--120.00%....... 1,165 40,745,369 22.61
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120.01%--125.00%....... 2,016 74,902,363 41.57
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125.01% or greater..... 14 538,780 0.30
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Total......... 5,519 $180,191,204 100.00%
As of the Cut-Off Date, the weighted average Combined Loan-to-Value
Ratio of the Initial Loans (excluding the Unsecured Loans) was approximately
117.24%.
Months Since Origination
% of Total by
Loan Age Aggregate Aggregate
(in months) Number of Loans Principal Balance Principal Balance
Less than one............ 2,618 $ 85,164,378 47.26
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1-3...................... 2,807 92,082,689 51.10
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4-6...................... 89 2,799,333 1.55
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7-9...................... 5 144,804 0.08
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Total........... 5,519 $180,191,204 100.00%
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As of the Cut-Off Date, the weighted average number of months since
origination of the Initial Loans was 1 month.
Remaining Terms to Maturity
Range of Remaining % of Total by
Terms to Maturity Aggregate Aggregate
(in months) Number of Loans Principal Balance Principal Balance
0-30.................... 9 49,301 0.03
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31-60.................... 163 1,029,260 0.57
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61-90.................... 74 499,396 0.28
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91-120................... 402 7,597,258 4.22
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121-150................... 42 927,306 0.51
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151-180................... 1,248 38,539,224 21.39
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211-240................... 1,712 60,172,932 33.39
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271-300................... 1,869 71,376,527 39.61
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Total............ 5,519 $180,191,204 100.00%
As of the Cut-Off Date, the weighted average remaining terms to
maturity of the Initial Loans was approximately 243 months.
Original Terms to Maturity
% of Total by
Original Term to Maturity Aggregate Aggregate
(in months) Number of Loans Principal Balance Principal Balance
0-30.................... 9 49,301 0.03
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31-60.................... 163 1,029,260 0.57
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61-90.................... 73 496,598 0.28
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91-120................... 403 7,600,056 4.22
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121-150................... 42 927,306 0.51
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151-180................... 1,248 38,539,224 21.39
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211-240................... 1,712 60,172,932 33.39
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271-300................... 1,869 71,376,527 39.61
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Total............ 5,519 $180,191,204 100.00%
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As of the Cut-Off Date, the weighted average original term to maturity of
the Initial Loans was approximately 244 months.
Credit Score
% of Total by
Aggregate Aggregate
Range of Credit Scores Number of Loans Principal Balance Principal Balance
520 to 539............. 2 81,178 0.05
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560 to 579............. 2 23,181 0.01
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580 to 599............. 2 44,511 0.02
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600 to 619............. 32 1,083,579 0.60
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620 to 639............. 880 26,600,943 14.76
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640 to 659............. 1,318 42,718,963 23.71
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660 to 679............. 1,137 40,266,186 22.35
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680 to 699............. 928 32,797,449 18.20
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700 to 719............. 605 20,362,099 11.30
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720 to 739............. 304 9,410,911 5.22
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740 to 759............. 170 4,524,786 2.51
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760 to 779............. 86 1,457,203 0.81
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780 to 799............. 37 715,105 0.40
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800 to 819............. 13 95,380 0.05
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820 to 839............. 3 9,730 0.01
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Total......... 5,519 $180,191,204 100.00%
As of the Cut-Off Date, the weighted average Credit Score of the Initial
Loans was 672.
Debt-to-Income Ratio
% of Total by
Range of Aggregate Aggregate
Debt-to-Income Ratios Number of Loans Principal Balance Principal Balance
20.00 or less.............. 199 4,226,583 2.35
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20.01 to 25.00............. 385 11,320,421 6.28
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25.01 to 30.00............. 831 25,674,425 14.25
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30.01 to 35.00............. 1,170 38,162,832 21.18
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35.01 to 40.00............. 1,461 48,532,589 26.93
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40.01 to 45.00............. 1,379 48,248,507 26.78
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45.01 to 50.00............. 94 4,025,847 2.23
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Total............. 5,519 $180,191,204 100.00%
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As of the Cut-Off Date, the weighted average debt-to-income ratio of the
Initial Loans was approximately 35.70.
