<PAGE>
- --------------------------------------------------------------------------------
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) June 16, 1998
Home Equity Securitization Corp.
(Exact name of registrant as specified in its charter)
North Carolina 333-44409 56-2064715
- ------------------------------- ------------------ ---------------
(State or Other Jurisdiction of (Commission File (I.R.S. Employer
Incorporation) Number) Identification No.)
301 South Charlotte Street 28202
Charlotte, North Carolina ----------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (704) 374-4868
--------------
No Change
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
- --------------------------------------------------------------------------------
1
<PAGE>
Item 5. Other Events
In connection with the offering of First Greensboro Home Equity Loan Trust
1998-1, Asset Backed Notes, Series 1998-1, described in the related Prospectus
Supplement, certain "Computational Materials" within the meanings of the May 20,
1994 Kidder, Peabody No-Action Letter and the February 17, 1995 Public
Securities Association No-Action Letter were furnished to certain prospective
investors (the "Related Computational Materials").
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
---------------------------------------------------------
(a) Not applicable
(b) Not applicable
(c) Exhibit 99.1 Related Computational Materials (as defined in Item
5 above).
2
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused this Report to
be signed on its behalf by the undersigned thereunto duly authorized.
HOME EQUITY SECURITIZATION CORP.
as Depositor and on behalf of First Greensboro
Home Equity Loan Trust 1998-1
Registrant
By: /s/ Wallace Saunders
----------------------------------
Name: Wallace Saunders
Title: Assistant Vice President
Dated: June 16, 1998
3
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
99.1 Related Computational Materials (as defined
in Item 5 above).
EXHIBIT 99.1
PRELIMINARY MARKETING MATERIALS
FIRST GREENSBORO HOME EQUITY LOAN TRUST 1998-1
$175,000,000 FIXED RATE MORTGAGE LOAN, ASSET BACKED NOTES, SERIES 1998-1
The attached Marketing Memorandum (the "Marketing Memorandum") is privileged and
confidential and is intended for use by the addressee only. This Marketing
Memorandum is furnished to you solely by First Union Capital Markets (the
"Underwriter") and not by the issuer of the notes identified above (the "Notes")
or any other party. The Marketing Memorandum is based upon information made
available to the Underwriter. Neither the Underwriter, the issuer of the Offered
Notes, nor any other party makes any representation as to the accuracy or
completeness of the information therein. The information herein is preliminary,
and will be superseded by the applicable prospectus supplement and by any other
information subsequently filed with the Securities and Exchange Commission. The
information herein may not be provided to any third party other than the
addressee's legal, tax, financial and/or accounting advisors for the purpose of
evaluating such information.
No assurance can be given as to the accuracy, appropriateness or completeness of
the Marketing Memorandum in any particular context; or as to whether the
Marketing Memorandum reflects future performance. This Marketing Memorandum
should not be construed as either a prediction or as legal, tax, and financial
or accounting advice.
Any yields or weighted average lives shown in the Marketing Memorandum are based
on prepayment and other assumptions and actual experience may dramatically
affect such yields or weighted average lives. The principal amount and
designation of any security described in the term sheet are subject to change
prior to issuance.
Although a registration statement (including the prospectus) relating to the
Offered Notes has been filed with the Securities and Exchange Commission and is
effective, the final prospectus supplement relating to the Offered Notes has not
been filed with the Securities and Exchange Commission. This communication shall
not constitute an offer to sell or a solicitation of an offer to buy nor shall
there be any sale of the Offered Notes in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state. Prospective purchasers are referred
to the final prospectus and prospectus supplement relating to the Offered Notes
for definitive terms of the Offered Notes and the collateral.
Please be advised that Offered Notes may not be appropriate for all investors.
Potential investors must be willing to assume, among other things, market price
volatility, prepayments, yield curve and interest rate risks. Investors should
fully consider the risk of an investment in these Offered Notes.
If you have received this communication in error, please notify the sending
party immediately by telephone and return the original to such party by mail.
(FIRST UNION LOGO)
FIRST UNION CAPITAL MARKETS
<PAGE>
FIRST GREENSBORO HOME EQUITY LOAN TRUST 1998-1
$175,000,000 FIXED RATE MORTGAGE LOAN, ASSET BACKED NOTES, SERIES 1998-1
PRELIMINARY MARKETING MEMO
SUMMARY OF TERMS
----------------
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
(the "Notes")
ISSUER: First Greensboro Home Equity Loan Trust 1998-1 (the
"Trust")
SELLER: First Greensboro Capital Corp.
SERVICER: First Greensboro Home Equity, Inc.
Back-up Servicer: Calmco, Inc.
MANAGER: First Union Capital Markets
SECURITIES OFFERED: 1998-1
------
AMOUNT: $175,000,000
COLLATERAL: Fixed and
adjustable-rate
home equity loans
CUT-OFF DATE: 06/01/98
PREPAYMENT ASSUMPTION(1): 25% HEP(1)
EXPECTED COUPON: TBD
SPREAD: TBD
TO MATURITY:
------------
AVERAGE LIFE 3.32
TO 10% CALL:
------------
AVERAGE LIFE 3.08
STATED MATURITY: 12/25/2029
PAYMENT FREQUENCY: Monthly
INTEREST RATE BASIS: 30/360
DATED DATE: 06/01/98
PAYMENT DELAY: 24 days
PRICING DATE (EXPECTED): 06/19/98
SETTLEMENT DATE(EXPECTED): 06/26/98
FIRST PAYMENT DATE: 07/25/98
RATING (S&P/MOODY'S): AAA/Aaa
(1) HEP assumes that a pool of loans prepays in the first month of the life of
such loan at a constant prepayment rate that corresponds in CPR to one-tenth the
given HEP percentage and increases by an additional one-tenth each month
thereafter until the tenth month, where it remains at a CPR equal to the given
HEP percentage.
DESCRIPTION OF THE NOTES: The Notes represent non-recourse obligations of the
Issuer and are secured by the assets of the Trust,
which will include (i) a pool of nonconforming, home
equity loans, (ii) all payments of principal and
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN.
INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION
ONLY. DOES NOT PURPORT TO BE COMPLETE AND SHOULD NOT BE RELIED UPON IN
CONNECTION WITH ANY DECISION TO PURCHASE THE SECURITIES. THIS INFORMATION
SUPERSEDES ANY PRIOR VERSIONS HEREOF AND WILL BE DEEMED TO BE SUPERSEDED BY
ANY SUBSEQUENT VERSIONS INCLUDING, WITH RESPECT TO ANY DESCRIPTION OF THE
SECURITIES OR THE UNDERLYING ASSETS, THE INFORMATION CONTAINED IN THE FINAL
PROSPECTUS AND ACCOMPANYING PROSPECTUS SUPPLEMENT. OFFERS TO SELL AND
SOLIDICATIONS OF OFFERS TO BUY THE SECURITIES ARE MADE ONLY BY THE FINAL
PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
FIRST GREENSBORO HOME EQUITY LOAN TRUST 1998-1
$175,000,000 FIXED RATE MORTGAGE LOAN, ASSET BACKED NOTES, SERIES 1998-1
PRELIMINARY MARKETING MEMO
interest thereon due on or after the Cut-off Date,
(iii) security interests in the mortgaged properties,
(iv) amounts on deposit in the Note Account,
Pre-Funding Account and Capitalized Interest Account;
(v) the Issuer's rights under the Loan Transfer
Agreement, (vi) the Note Insurance Policies and (vii)
certain other property.
The assets of the trust estate and payments under the
Insurance Policy, if any, will be the only sources of
payments on the Notes. The Notes will be issued in a
single class.
INDENTURE TRUSTEE: The Chase Manhattan Bank
SERVICING FEE: 50 bps per annum
INDENTURE TRUSTEE FEE: [1.25] bps
NOTE INSURER: Financial Surety Assurance, Inc. ("FSA"). The
claims-paying ability of FSA is rated "AAA" by
Standard & Poor's and "Aaa" by Moody's.
NOTE INSURANCE
POLICIES: The insurance policies of FSA guarantee the timely
payment of interest and the ultimate payment of
principal on the Notes.
CREDIT ENHANCEMENT: 1. Monthly Excess Spread
2. Overcollateralization
3. Insurance policy
FORM OF NOTES: Book-Entry Form, delivered through the facilities of
DTC, Cedel, and Euroclear against payment in
immediately available funds.
REMITTANCE PERIOD: With respect to any payment date, the calendar month
immediately preceding the month in which such Payment
Date occurs (or, in the case of the first payment
date, the period from the day following the
applicable Cut-Off Date for each Home Equity Loan
through and including the last day of June, 1998).
MONTHLY REMITTANCE DATE: With respect to each payment date, the 18th day of
the month in which such payment date occurs, or if
such day is not a business day, then the preceding
business day.
PAYMENTS OF INTEREST: On each Payment Date, Notes will be entitled to
payments in respect of interest accrued during the
related Interest Period at the Note Interest Rate on
the outstanding aggregate principal balance of the
Notes as of the preceding Payment Date (after giving
effect to the payment, if any, in reduction of
principal made on the Notes on such preceding Payment
Date). The "Interest Period" in respect of any
Payment Date will be the calendar month immediately
preceding the month in which the Payment Date occurs.
All calculations of interest on the Notes will be
computed on the basis of a year of 360 days and
twelve 30 day months.
If, with respect to any Payment Date, funds are not
available from Available Funds to pay the full amount
of Note Interest due on the Notes, the deficiency
will be covered by payments made pursuant to the
Insurance Policy for such Payment Date.
COUPON STEP-UP: After the Clean-Up Call Date, the Note Rate will
increase by 50 bps.
PAYMENTS OF PRINCIPAL: On each Payment Date, Notes will be entitled to
Monthly Principal in reduction of the Note Balance.
"Monthly Principal" with respect to any Payment Date
will be equal to the aggregate of all scheduled
payments of principal received with respect to the
Home Equity Loans and due during the related
Remittance Period and all other amounts collected,
received or otherwise recovered in respect of
principal on the Home Equity Loans during or in
respect of the related Remittance Period.
Payments of Excess Cash "Excess Cash" on any Payment Date will be equal to
Available Funds on such Payment Date, reduced by the
sum of (i) any amounts payable to the Note Insurer
for Insured Payments paid on prior Payment Dates and
not yet reimbursed and for any unpaid Note Insurer
Premiums for prior Payment Dates (in each case with
interest thereon at the Late Payment Rate set forth
in the Insurance Agreement), (ii) the Note Interest
for the related Payment Date, (iii) the Monthly
Principal for the related Payment Date and (iv) with
respect to the first Payment Date following the end
of the Funding Period, all amounts remaining in the
Pre-Funding Account to the extent not used to
purchase Subsequent Home Equity Loans during such
Funding Period. On each Payment Date with respect to
which the
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN.
INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION
ONLY. DOES NOT PURPORT TO BE COMPLETE AND SHOULD NOT BE RELIED UPON IN
CONNECTION WITH ANY DECISION TO PURCHASE THE SECURITIES. THIS INFORMATION
SUPERSEDES ANY PRIOR VERSIONS HEREOF AND WILL BE DEEMED TO BE SUPERSEDED BY
ANY SUBSEQUENT VERSIONS INCLUDING, WITH RESPECT TO ANY DESCRIPTION OF THE
SECURITIES OR THE UNDERLYING ASSETS, THE INFORMATION CONTAINED IN THE FINAL
PROSPECTUS AND ACCOMPANYING PROSPECTUS SUPPLEMENT. OFFERS TO SELL AND
SOLIDICATIONS OF OFFERS TO BUY THE SECURITIES ARE MADE ONLY BY THE FINAL
PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
FIRST GREENSBORO HOME EQUITY LOAN TRUST 1998-1
$175,000,000 FIXED RATE MORTGAGE LOAN, ASSET BACKED NOTES, SERIES 1998-1
PRELIMINARY MARKETING MEMO
Overcollateralization Amount for the Notes is less
than the Required Overcollateralization Amount for
such Payment Date, Excess Cash derived from Available
Funds, if any, will be paid on the Notes in reduction
of the Note Balance, up to the amount necessary for
the related Overcollateralization Amount to equal the
applicable Required Overcollateralization Amount. Any
Excess Cash remaining after making required payments
on the Notes (including any payments as described in
the preceding sentence) and to the Note Insurer on
any Payment Date as described herein will be released
to the holder(s) of the Residual Interest on such
Payment Date, free from the lien of the Indenture
Trustee, and such amounts will not be available to
make any of the payments referred to in clauses
(i)-(iv) above on any subsequent Payment Date.
OVERCOLLATERALIZATION: Credit enhancement with respect to the Notes will be
provided in part by overcollateralization resulting
from the limited acceleration of the Notes relative
to the amortization of the related collateral.
Accelerated amortization is achieved by applying
excess cash collected on the collateral to the
payment of principal of the Notes. The Indenture
requires that this Overcollateralization Amount be
increased to, and thereafter maintained at, the
Required Overcollateralization Amount. The Indenture
generally provides that the Required
Overcollateralization Amount may, over time, decrease
or increase, subject to certain floors, caps and
triggers including triggers that allow the related
Required Overcollateralization Amount to decrease or
"step down" based on the performance of the Home
Equity Loans with respect to certain delinquency rate
tests specified in the Indenture.
In addition, Excess Cash will be applied to the
payment in reduction of principal of the Notes during
the period that the Home Equity Loans are unable to
meet certain tests specified in the Indenture based
on delinquency rates. Any increase in the Required
Overcollateralization Amount may result in an
accelerated amortization of the Notes until such
Required Overcollateralization Amount is reached, and
any decrease in the Required Overcollateralization
Amount will result in a decelerated amortization of
the Notes until such Required Overcollateralization
Amount is reached.
OPTIONAL REDEMPTION: The Notes may be redeemed, in full but not in part,
at the option of the Servicer on or after the first
Payment Date on which the Aggregate Principal Balance
of the Mortgage Loans in the Mortgage Pool has
declined to 10% or less of its Original Pool Balance.
In addition, the Note Insurer will have rights, under
limited circumstances, to effect a redemption of the
Notes and terminate the indenture.
DELINQUENCY ADVANCES: The Servicer will be obligated to make advances with
respect to delinquent payments of interest (at the
related Mortgage Rate less the Servicing Fee, as
defined below) and scheduled principal due on each
Mortgage Loan to the extent that such Delinquency
Advances, in good faith and in the Servicer's
reasonable judgment, are reasonably recoverable from
the related Mortgage Loan. To the extent that the
Master Servicer previously has made Delinquency
Advances with respect to a Home Equity Loan that the
Master Servicer subsequently determines to be
nonrecoverable, the Master Servicer shall be entitled
to reimbursement from the Trust.
COMPENSATING INTEREST: If a full or partial prepayment of a Home Equity Loan
occurs during any calendar month, any difference
between the interest collected from the Mortgagor in
connection with such payoff and the full month's
interest that would be due on the related due date
for such Home Equity Loan will be required to be
deposited to the Principal and Interest Account on
the next succeeding Monthly Remittance Date by the
Master Servicer and shall be included in the Monthly
Remittance Amount to be made available to the
Indenture Trustee on the next succeeding Monthly
Remittance Date. With respect to any Payment Date,
the Master Servicer will not be required to remit
compensating interest in excess of the aggregate
Servicing Fee for the related Remittance Period.
SERVICING ADVANCES: Subject to the Master Servicer determination, in its
reasonable business judgment, that any proposed
advance not be recoverable, the Master Servicer will
be required to pay all "out of pocket" costs and
expenses incurred in the performance of its servicing
obligations, including, but not limited to, (i)
expenditures in connection with a foreclosed Home
Equity Loan prior to the liquidation thereof,
including, without limitation, expenditures for real
estate property taxes, hazard insurance premiums,
property restoration or preservation ("Preservation
Expenses"), (ii) the cost of any enforcement or
judicial proceedings, including foreclosures and
(iii) the cost of the management and liquidation of
Property acquired in satisfaction of the related
Mortgage. The Master Servicer may recover a Servicing
Advance from the Trust as provided under the
Servicing Agreement.
PRE-FUNDING ACCOUNTS: On the Closing Date, the Pre-Funded Amount,
which will be funded from the sale of the Notes, will
be deposited into the Pre-Funding Account, which will
be in the name of, and maintained by, the Indenture
Trustee in trust for the benefit of the holders of
the Notes, and may be used to acquire subsequent
mortgage loans.
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN.
INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION
ONLY, DOES NOT PURPORT TO BE COMPLETE AND SHOULD NOT BE RELIED UPON IN
CONNECTION WITH ANY DECISION TO PURCHASE THE SECURITIES. THIS INFORMATION
SUPERSEDES ANY PRIOR VERSIONS HEREOF AND WILL BE DEEMED TO BE SUPERSEDED BY
ANY SUBSEQUENT VERSIONS INCLUDING, WITH RESPECT TO ANY DESCRIPTION OF THE
SECURITIES OR THE UNDERLYING ASSETS, THE INFORMATION CONTAINED IN THE FINAL
PROSPECTUS AND ACCOMPANYING PROSPECTUS SUPPLEMENT. OFFERS TO SELL AND
SOLIDICATIONS OF OFFERS TO BUY THE SECURITIES ARE MADE ONLY BY THE FINAL
PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
FIRST GREENSBORO HOME EQUITY LOAN TRUST 1998-1
$175,000,000 FIXED RATE MORTGAGE LOAN, ASSET BACKED NOTES, SERIES 1998-1
PRELIMINARY MARKETING MEMO
CAPITALIZED INTEREST: On the closing date, cash in an amount satisfactory
to the Note Insurer will be deposited into a trust
account for the benefit of the holders of the Notes
to ensure payments of interest on the Pre-funded
amount during the Funding Period.
MANDATORY PREPAYMENT
OF NOTES: In the event that by July 31, 1998, not all funds in
the Pre-Funding Account have been used to acquire
Subsequent Mortgage Loans for inclusion in the
Mortgage Loan Pool, the Owners of the Notes will
receive a prepayment on the Payment Date in August
1998 in an amount equal to the Pre-Funded Amount,
less any Pre-Funding Account Earnings remaining at
the end of the Funding Period.
ERISA CONSIDERATIONS: The Notes may be purchased by employee benefit plans
that are subject to the Employee Retirement Income
Security Act of 1974, as amended. Investors should
consult their counsel with respect to limitations on
acquisition and ownership of the Notes and
consequences thereof.
SMMEA: The Notes will not constitute "mortgage related
securities" for purposed of the Secondary Mortgage
Market Enhancement Act of 1984 ("SMMEA").
TAXATION: The Notes will be treated as debt obligations for tax
purposes. No REMIC election will be made.
CONTACT: Russ Andrews (704) 374-3472
Wallace Saunders (704) 374-4868
Pearl Bassard (704) 383-7591
David Duque (704) 383-5525
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN.
INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION
ONLY. DOES NOT PURPORT TO BE COMPLETE AND SHOULD NOT BE RELIED UPON IN
CONNECTION WITH ANY DECISION TO PURCHASE THE SECURITIES. THIS INFORMATION
SUPERSEDES ANY PRIOR VERSIONS HEREOF AND WILL BE DEEMED TO BE SUPERSEDED BY
ANY SUBSEQUENT VERSIONS INCLUDING, WITH RESPECT TO ANY DESCRIPTION OF THE
SECURITIES OR THE UNDERLYING ASSETS, THE INFORMATION CONTAINED IN THE FINAL
PROSPECTUS AND ACCOMPANYING PROSPECTUS SUPPLEMENT. OFFERS TO SELL AND
SOLIDICATIONS OF OFFERS TO BUY THE SECURITIES ARE MADE ONLY BY THE FINAL
PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
FIRST GREENSBORO HOME EQUITY LOAN TRUST 1998-1
$175,000,000 FIXED RATE MORTGAGE LOAN, ASSET BACKED NOTES, SERIES 1998-1
PRELIMINARY MARKETING MEMO
<TABLE>
<CAPTION>
PERCENTAGE OF ORIGINAL NOTE PRINCIPAL BALANCE
HEP PERCENTAGE
------------------------------------------------------
DISTRIBUTION DATE 20 23 25 27 30
----------------- -- -- -- -- --
Initial 100 100 100 100 100
<S> <C> <C> <C> <C> <C>
June 25, 1999 82 80 78 77 74
June 25, 2000 62 58 55 52 49
June 25, 2001 48 43 40 37 33
June 25, 2002 37 32 29 27 23
June 25, 2003 29 24 22 19 16
June 25, 2004 23 18 16 14 11
June 25, 2005 18 14 12 10 0
June 25, 2006 14 10 0 0 0
June 25, 2007 11 0 0 0 0
June 25, 2008 0 0 0 0 0
June 25, 2009 0 0 0 0 0
Weighted Average Life(1)
to Call in Years 3.78 3.33 3.08 2.87 2.59
to Maturity in Years 4.06 3.58 3.32 3.09 2.79
</TABLE>
(1) The weighted average life of the Notes is determined by (I) multiplying the
amount of each principal payment by the number of years from the date of
issuance to the related Distribution Date, (ii) adding the results, and
(iii) dividing by the original res
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN.
INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION
ONLY, DOES NOT PURPORT TO BE COMPLETE AND SHOULD NOT BE RELIED UPON IN
CONNECTION WITH ANY DECISION TO PURCHASE THE SECURITIES. THIS INFORMATION
SUPERSEDES ANY PRIOR VERSIONS HEREOF AND WILL BE DEEMED TO BE SUPERSEDED BY
ANY SUBSEQUENT VERSIONS INCLUDING, WITH RESPECT TO ANY DESCRIPTION OF THE
SECURITIES OR THE UNDERLYING ASSETS, THE INFORMATION CONTAINED IN THE FINAL
PROSPECTUS AND ACCOMPANYING PROSPECTUS SUPPLEMENT. OFFERS TO SELL AND
SOLIDICATIONS OF OFFERS TO BUY THE SECURITIES ARE MADE ONLY BY THE FINAL
PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
FIRST GREENSBORO HOME EQUITY LOAN TRUST 1998-1
$175,000,000 FIXED RATE MORTGAGE LOAN, ASSET BACKED NOTES, SERIES 1998-1
PRELIMINARY MARKETING MEMO
SUMMARY OF CHARACTERISTICS OF THE INITIAL HOME EQUITY LOANS
Aggregate Number of Initial Home Equity Loans 2,304
Principal Balance
Aggregate Principal Balance $147,983,111.90
Average Principal Balance $64,228.78
Range of Principal Balances $6,762.38 - $698,651.66
Coupon Rates
Weighted Average Coupon Rate 10.30%
Range of Coupon Rates 7.55% - 17.99%
Original Term to Maturity
Weighted Average Original Term to Maturity 284 months
Range of Original Terms to Maturity 60 -360 Months
Remaining Term to Maturity
Weighted Average Remaining Term to Maturity 282 months
Range of Remaining Term to Maturity 57 - 360 Months
Combined Loan-to-Value Ratio
Weighted Average Combined Loan-to-Value Ratio 80.41%
Range of Combined Loan-to-Value Ratios 15.79 - 125.01%
Percentage of First Lien Initial Home Equity Loans 93.32%
Percentage of Second Lien Initial Home Equity Loans 6.68%
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN.
INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION
ONLY, DOES NOT PURPORT TO BE COMPLETE AND SHOULD NOT BE RELIED UPON IN
CONNECTION WITH ANY DECISION TO PURCHASE THE SECURITIES. THIS INFORMATION
SUPERSEDES ANY PRIOR VERSIONS HEREOF AND WILL BE DEEMED TO BE SUPERSEDED BY
ANY SUBSEQUENT VERSIONS INCLUDING, WITH RESPECT TO ANY DESCRIPTION OF THE
SECURITIES OR THE UNDERLYING ASSETS, THE INFORMATION CONTAINED IN THE FINAL
PROSPECTUS AND ACCOMPANYING PROSPECTUS SUPPLEMENT. OFFERS TO SELL AND
SOLIDICATIONS OF OFFERS TO BUY THE SECURITIES ARE MADE ONLY BY THE FINAL
PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
FIRST GREENSBORO HOME EQUITY LOAN TRUST 1998-1
$175,000,000 FIXED RATE MORTGAGE LOAN, ASSET BACKED NOTES, SERIES 1998-1
PRELIMINARY MARKETING MEMO
<TABLE>
<CAPTION>
PRINCIPAL BALANCES
Aggregate Percentage
Number of Unpaid of Aggregate
Principal Mortgage Principal Unpaid
Principal
Balance Loans Balance Balance
<S> <C> <C> <C> <C>
5,000.01 - 10,000.00 14 130,999.06 0.09
10,000.01 - 15,000.00 59 787,118.71 0.53
15,000.01 - 20,000.00 91 1,626,199.45 1.10
20,000.01 - 25,000.00 100 2,286,496.23 1.55
25,000.01 - 30,000.00 118 3,301,075.72 2.23
30,000.01 - 35,000.00 115 3,751,478.70 2.54
35,000.01 - 40,000.00 139 5,284,245.93 3.57
40,000.01 - 45,000.00 148 6,365,949.54 4.30
45,000.01 - 50,000.00 152 7,302,629.27 4.93
50,000.01 - 55,000.00 156 8,199,148.43 5.54
55,000.01 - 60,000.00 208 12,053,505.20 8.15
60,000.01 - 65,000.00 158 9,873,040.66 6.67
65,000.01 - 70,000.00 149 10,055,794.11 6.80
70,000.01 - 75,000.00 108 7,834,653.85 5.29
75,000.01 - 80,000.00 92 7,118,815.82 4.81
80,000.01 - 85,000.00 61 5,044,238.05 3.41
85,000.01 - 90,000.00 62 5,428,497.58 3.67
90,000.01 - 95,000.00 43 3,982,394.68 2.69
95,000.01 - 100,000.00 50 4,867,699.47 3.29
100,000.01 - 125,000.00 124 13,878,324.88 9.38
125,000.01 - 150,000.00 72 9,650,755.15 6.52
150,000.01 - 200,000.00 50 8,562,482.96 5.79
200,000.01 - 250,000.00 17 3,821,609.17 2.58
250,000.01 - 300,000.00 9 2,471,654.52 1.67
300,000.01 - 350,000.00 2 655,886.18 0.44
350,000.01 - 400,000.00 1 365,750.00 0.25
400,000.01 - 450,000.00 1 427,000.00 0.29
450,000.01 - 500,000.00 3 1,463,684.53 0.99
650,000.01 - 700,000.00 2 1,391,984.05 0.94
-- ------------- ----
2,304 147,983,111.90 100.00
====== =============== ======
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN.
INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION
ONLY, DOES NOT PURPORT TO BE COMPLETE AND SHOULD NOT BE RELIED UPON IN
CONNECTION WITH ANY DECISION TO PURCHASE THE SECURITIES. THIS INFORMATION
SUPERSEDES ANY PRIOR VERSIONS HEREOF AND WILL BE DEEMED TO BE SUPERSEDED BY
ANY SUBSEQUENT VERSIONS INCLUDING, WITH RESPECT TO ANY DESCRIPTION OF THE
SECURITIES OR THE UNDERLYING ASSETS, THE INFORMATION CONTAINED IN THE FINAL
PROSPECTUS AND ACCOMPANYING PROSPECTUS SUPPLEMENT. OFFERS TO SELL AND
SOLIDICATIONS OF OFFERS TO BUY THE SECURITIES ARE MADE ONLY BY THE FINAL
PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
FIRST GREENSBORO HOME EQUITY LOAN TRUST 1998-1
$175,000,000 FIXED RATE MORTGAGE LOAN, ASSET BACKED NOTES, SERIES 1998-1
PRELIMINARY MARKETING MEMO
<TABLE>
<CAPTION>
MORTGAGE RATES
Aggregate Percentage
Number of Unpaid of Aggregate
Mortgage Mortgage Principal Unpaid Principal
Rate Loans Balance Balance
<S> <C> <C> <C>
7.500 - 7.999 2 101,817.66 0.07
8.000 - 8.499 120 12,225,110.27 8.26
8.500 - 8.999 236 21,171,471.36 14.31
9.000 - 9.499 259 17,713,707.02 11.97
9.500 - 9.999 405 28,157,195.16 19.03
10.000 - 10.499 258 16,167,499.19 10.93
10.500 - 10.999 296 18,145,127.40 12.26
11.000 - 11.499 174 10,460,214.61 7.07
11.500 - 11.999 190 9,044,366.50 6.11
12.000 - 12.499 87 4,692,717.13 3.17
12.500 - 12.999 84 3,333,480.53 2.25
13.000 - 13.499 35 1,595,657.62 1.08
13.500 - 13.999 48 1,882,749.80 1.27
14.000 - 14.499 20 822,785.14 0.56
14.500 - 14.999 34 985,213.77 0.67
15.000 - 15.499 20 596,373.95 0.40
15.500 - 15.999 28 670,717.80 0.45
16.000 - 16.499 4 116,254.12 0.08
16.500 - 16.999 2 40,982.85 0.03
17.000 - 17.499 1 13,686.82 0.01
17.500 - 17.999 1 45,983.20 0.03
-- ---------- ----
2,304 147,983,111.90 100.00
====== =============== ======
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN.
INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION
ONLY, DOES NOT PURPORT TO BE COMPLETE AND SHOULD NOT BE RELIED UPON IN
CONNECTION WITH ANY DECISION TO PURCHASE THE SECURITIES. THIS INFORMATION
SUPERSEDES ANY PRIOR VERSIONS HEREOF AND WILL BE DEEMED TO BE SUPERSEDED BY
ANY SUBSEQUENT VERSIONS INCLUDING, WITH RESPECT TO ANY DESCRIPTION OF THE
SECURITIES OR THE UNDERLYING ASSETS, THE INFORMATION CONTAINED IN THE FINAL
PROSPECTUS AND ACCOMPANYING PROSPECTUS SUPPLEMENT. OFFERS TO SELL AND
SOLIDICATIONS OF OFFERS TO BUY THE SECURITIES ARE MADE ONLY BY THE FINAL
PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
FIRST GREENSBORO HOME EQUITY LOAN TRUST 1998-1
$175,000,000 FIXED RATE MORTGAGE LOAN, ASSET BACKED NOTES, SERIES 1998-1
PRELIMINARY MARKETING MEMO
<TABLE>
<CAPTION>
COMBINED LOAN-TO-VALUE RATIOS
Aggregate Percentage
Combined Number of Unpaid of Aggregate
Loan-to-Value Mortgage Principal Unpaid
Principal
Ratio Loans Balance Balance
<S> <C> <C> <C>
15.01 - 20.00 4 90,216.40 0.06
20.01 - 25.00 2 39,760.03 0.03
25.01 - 30.00 6 105,071.89 0.07
30.01 - 35.00 20 517,767.59 0.35
35.01 - 40.00 18 521,786.15 0.35
40.01 - 45.00 23 820,402.14 0.55
45.01 - 50.00 27 1,061,673.93 0.72
50.01 - 55.00 37 1,697,980.27 1.15
55.01 - 60.00 36 2,046,879.15 1.38
60.01 - 65.00 77 4,676,452.63 3.16
65.01 - 70.00 120 6,165,644.00 4.17
70.01 - 75.00 171 9,977,321.26 6.74
75.01 - 80.00 324 20,191,903.28 13.64
80.01 - 85.00 152 9,620,276.21 6.50
85.01 - 90.00 258 19,962,553.85 13.49
90.01 - 95.00 305 22,822,840.28 15.42
95.01 - 100.00 611 40,433,625.07 27.32
100.01 - 125.01 113 7,230,957.77 4.89
---- ------------- -----
2,304 147,983,111.90 99.99
====== =============== =====
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN.
INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION
ONLY, DOES NOT PURPORT TO BE COMPLETE AND SHOULD NOT BE RELIED UPON IN
CONNECTION WITH ANY DECISION TO PURCHASE THE SECURITIES. THIS INFORMATION
SUPERSEDES ANY PRIOR VERSIONS HEREOF AND WILL BE DEEMED TO BE SUPERSEDED BY
ANY SUBSEQUENT VERSIONS INCLUDING, WITH RESPECT TO ANY DESCRIPTION OF THE
SECURITIES OR THE UNDERLYING ASSETS, THE INFORMATION CONTAINED IN THE FINAL
PROSPECTUS AND ACCOMPANYING PROSPECTUS SUPPLEMENT. OFFERS TO SELL AND
SOLIDICATIONS OF OFFERS TO BUY THE SECURITIES ARE MADE ONLY BY THE FINAL
PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
FIRST GREENSBORO HOME EQUITY LOAN TRUST 1998-1
$175,000,000 FIXED RATE MORTGAGE LOAN, ASSET BACKED NOTES, SERIES 1998-1
PRELIMINARY MARKETING MEMO
<TABLE>
<CAPTION>
REMAINING TERMS TO MATURITY
Aggregate Percentage
Number of Unpaid of Aggregate
Remaining Mortgage Principal Unpaid
Principal
Term Loans Balance Balance
<S> <C> <C> <C>
49 - 60 8 144,222.00 0.10
61 - 72 2 57,595.34 0.04
73 - 84 15 342,617.00 0.23
85 - 96 1 47,968.03 0.03
97 - 108 1 32,925.17 0.02
109 - 120 100 3,207,205.19 2.17
133 - 144 10 422,878.61 0.29
145 - 156 2 113,711.56 0.08
157 - 168 1 13,686.82 0.01
169 - 180 627 28,841,062.36 19.49
181 - 192 1 85,798.12 0.06
193 - 204 1 88,315.28 0.06
217 - 228 4 114,690.34 0.08
229 - 240 320 18,740,985.82 12.66
289 - 300 669 45,399,424.30 30.68
325 - 336 5 332,875.12 0.22
337 - 348 6 664,716.50 0.45
349 - 352 1 280,427.65 0.19
353 - 356 55 5,169,717.22 3.49
357 76 7,803,453.00 5.27
358 130 11,907,452.68 8.05
359 109 9,739,181.64 6.58
360 160 14,432,202.15 9.75
---- -------------- -----
2,304 147,983,111.90 100.00
===== ============== ======
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN.
INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION
ONLY, DOES NOT PURPORT TO BE COMPLETE AND SHOULD NOT BE RELIED UPON IN
CONNECTION WITH ANY DECISION TO PURCHASE THE SECURITIES. THIS INFORMATION
SUPERSEDES ANY PRIOR VERSIONS HEREOF AND WILL BE DEEMED TO BE SUPERSEDED BY
ANY SUBSEQUENT VERSIONS INCLUDING, WITH RESPECT TO ANY DESCRIPTION OF THE
SECURITIES OR THE UNDERLYING ASSETS, THE INFORMATION CONTAINED IN THE FINAL
PROSPECTUS AND ACCOMPANYING PROSPECTUS SUPPLEMENT. OFFERS TO SELL AND
SOLIDICATIONS OF OFFERS TO BUY THE SECURITIES ARE MADE ONLY BY THE FINAL
PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
FIRST GREENSBORO HOME EQUITY LOAN TRUST 1998-1
$175,000,000 FIXED RATE MORTGAGE LOAN, ASSET BACKED NOTES, SERIES 1998-1
PRELIMINARY MARKETING MEMO
<TABLE>
<CAPTION>
GEOGRAPHIC DISTRIBUTION OF MORTGAGE PROPERTIES
Aggregate Percentage
Number of Unpaid of Aggregate
Mortgage Principal Unpaid
Principal
State Loans Balance Balance
<S> <C> <C> <C>
Arkansas 191 13,793,359.86 9.32
Colorado 5 333,560.47 0.23
Florida 41 2,458,366.88 1.66
Georgia 94 6,625,157.74 4.48
Idaho 25 1,951,990.50 1.32
Illinois 44 3,096,590.31 2.09
Indiana 18 1,210,610.21 0.82
Kansas 7 535,401.78 0.36
Kentucky 4 261,376.68 0.18
Louisiana 1 16,798.96 0.01
Mississippi 9 639,084.85 0.43
Missouri 44 2,397,876.45 1.62
Montana 1 89,247.81 0.06
Nevada 2 340,333.39 0.23
New Mexico 8 488,453.58 0.33
North Carolina 775 50,058,929.21 33.83
Oklahoma 86 3,917,268.17 2.65
Oregon 3 233,493.91 0.16
South Carolina 165 9,225,947.59 6.23
Tennessee 74 5,059,412.61 3.42
Texas 95 5,105,926.00 3.45
Utah 135 12,503,535.37 8.45
Virginia 426 24,305,889.65 16.42
Washington 1 124,793.21 0.08
West Virginia 14 698,250.73 0.47
Wisconsin 34 2,373,118.53 1.60
Wyoming 2 138,337.45 0.09
-- ----------- -----
2,304 147,983,111.90 99.99
===== ============== =====
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN.
INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION
ONLY, DOES NOT PURPORT TO BE COMPLETE AND SHOULD NOT BE RELIED UPON IN
CONNECTION WITH ANY DECISION TO PURCHASE THE SECURITIES. THIS INFORMATION
SUPERSEDES ANY PRIOR VERSIONS HEREOF AND WILL BE DEEMED TO BE SUPERSEDED BY
ANY SUBSEQUENT VERSIONS INCLUDING, WITH RESPECT TO ANY DESCRIPTION OF THE
SECURITIES OR THE UNDERLYING ASSETS, THE INFORMATION CONTAINED IN THE FINAL
PROSPECTUS AND ACCOMPANYING PROSPECTUS SUPPLEMENT. OFFERS TO SELL AND
SOLIDICATIONS OF OFFERS TO BUY THE SECURITIES ARE MADE ONLY BY THE FINAL
PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
FIRST GREENSBORO HOME EQUITY LOAN TRUST 1998-1
$175,000,000 FIXED RATE MORTGAGE LOAN, ASSET BACKED NOTES, SERIES 1998-1
PRELIMINARY MARKETING MEMO
<TABLE>
<CAPTION>
OCCUPANCY STATUS
Aggregate Percentage
Number of Unpaid of Aggregate
Occupancy Mortgage Principal Unpaid
Principal
Status Loans Balance Balance
<S> <C> <C> <C>
Non Owner Occupied 84 4,070,668.95 2.75
Owner Occupied 2,220 143,912,442.95 97.25
------ --------------- -----
2,304 147,983,111.90 100.00
====== =============== ======
TYPES OF MORTGAGED PROPERTIES
Aggregate Percentage
Number of Unpaid of Aggregate
Property Mortgage Principal Unpaid
Principal
Type Loans Balance Balance
Single Family 1,949 126,410,607.55 85.42
2-4 Unit 12 787,238.62 0.53
Condominium 11 731,987.13 0.49
Manufactured Home 296 16,229,766.85 10.97
Mixed Use 1 128,700.00 0.09
PUD 35 3,694,811.75 2.50
--- ------------- -----
2,304 147,983,111.90 100.00
====== =============== =======
LOAN PURPOSES
Aggregate Percentage
Number of Unpaid of Aggregate
Mortgage Principal Unpaid
Principal
Use of Proceeds Loans Balance Balance
Cashout Refinance 1,513 93,638,397.56 63.28
No Cashout Refinance 630 41,114,082.85 27.78
Purchase 161 13,230,631.49 8.94
---- -------------- -----
2,304 147,983,111.90 100.00
====== =============== =======
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN.
INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION
ONLY, DOES NOT PURPORT TO BE COMPLETE AND SHOULD NOT BE RELIED UPON IN
CONNECTION WITH ANY DECISION TO PURCHASE THE SECURITIES. THIS INFORMATION
SUPERSEDES ANY PRIOR VERSIONS HEREOF AND WILL BE DEEMED TO BE SUPERSEDED BY
ANY SUBSEQUENT VERSIONS INCLUDING, WITH RESPECT TO ANY DESCRIPTION OF THE
SECURITIES OR THE UNDERLYING ASSETS, THE INFORMATION CONTAINED IN THE FINAL
PROSPECTUS AND ACCOMPANYING PROSPECTUS SUPPLEMENT. OFFERS TO SELL AND
SOLIDICATIONS OF OFFERS TO BUY THE SECURITIES ARE MADE ONLY BY THE FINAL
PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
FIRST GREENSBORO HOME EQUITY LOAN TRUST 1998-1
$175,000,000 FIXED RATE MORTGAGE LOAN, ASSET BACKED NOTES, SERIES 1998-1
PRELIMINARY MARKETING MEMO
<TABLE>
<CAPTION>
DOCUMENTATION TYPES
Aggregate Percentage
Number of Unpaid of Aggregate
Documentation Mortgage Principal Unpaid
Principal
Type Loans Balance Balance
<S> <C> <C> <C>
FULL 2,185 138,766,746.60 93.77
NO INCOME QUALIFIER 105 8,433,518.88 5.70
STATED 14 782,846.42 0.53
--- ----------- -----
2,304 147,983,111.90 100.00
====== =============== =======
GROSS MARGINS OF THE ADJUSTABLE RATE LOANS
Aggregate Percentage
Number of Unpaid of Aggregate
Gross Mortgage Principal Unpaid
Principal
Margin Loans Balance Balance
4.500 - 4.999 6 1,034,663.05 15.78
5.000 - 5.499 26 1,748,603.59 26.67
5.500 - 5.999 8 901,133.39 13.74
6.000 - 6.499 12 999,106.14 15.24
6.500 - 6.999 4 300,903.12 4.59
7.000 - 7.499 5 450,605.37 6.87
7.500 - 7.999 5 519,198.02 7.92
8.000 - 8.499 5 463,823.67 7.07
8.500 - 8.999 1 139,288.77 2.12
-- ----------- -----
72 6,557,325.12 100.00
=== ============= =======
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN.
INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION
ONLY, DOES NOT PURPORT TO BE COMPLETE AND SHOULD NOT BE RELIED UPON IN
CONNECTION WITH ANY DECISION TO PURCHASE THE SECURITIES. THIS INFORMATION
SUPERSEDES ANY PRIOR VERSIONS HEREOF AND WILL BE DEEMED TO BE SUPERSEDED BY
ANY SUBSEQUENT VERSIONS INCLUDING, WITH RESPECT TO ANY DESCRIPTION OF THE
SECURITIES OR THE UNDERLYING ASSETS, THE INFORMATION CONTAINED IN THE FINAL
PROSPECTUS AND ACCOMPANYING PROSPECTUS SUPPLEMENT. OFFERS TO SELL AND
SOLIDICATIONS OF OFFERS TO BUY THE SECURITIES ARE MADE ONLY BY THE FINAL
PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
FIRST GREENSBORO HOME EQUITY LOAN TRUST 1998-1
$175,000,000 FIXED RATE MORTGAGE LOAN, ASSET BACKED NOTES, SERIES 1998-1
PRELIMINARY MARKETING MEMO
<TABLE>
<CAPTION>
MAXIMUM RATES OF THE ADJUSTABLE RATE LOANS
Aggregate Percentage
Number of Unpaid of Aggregate
Maximum Mortgage Principal Unpaid
Principal
Rate Loans Balance Balance
<S> <C> <C> <C>
13.500 - 13.999 2 101,817.66 1.55
14.000 - 14.499 5 249,807.53 3.81
14.500 - 14.999 9 1,334,627.18 20.35
15.000 - 15.499 17 1,238,908.76 18.89
15.500 - 15.999 16 1,439,028.62 21.95
16.000 - 16.499 7 624,282.37 9.52
16.500 - 16.999 8 845,870.54 12.90
17.000 - 17.499 6 594,057.91 9.06
18.000 - 18.499 2 128,924.55 1.97
-- ----------- -----
72 6,557,325.12 100.00
=== ============= =======
MINIMUM RATES OF THE ADJUSTABLE RATE LOANS
Aggregate Percentage
Number of Unpaid of Aggregate
Minimum Mortgage Principal Unpaid
Principal
Rate Loans Balance Balance
7.500 - 7.999 2 101,817.66 1.55
8.000 - 8.499 5 249,807.53 3.81
8.500 - 8.999 9 1,334,627.18 20.35
9.000 - 9.499 17 1,238,908.76 18.89
9.500 - 9.999 16 1,439,028.62 21.95
10.000 - 10.499 7 624,282.37 9.52
10.500 - 10.999 8 845,870.54 12.90
11.000 - 11.499 6 594,057.91 9.06
12.000 - 12.499 2 128,924.55 1.97
-- ----------- -----
72 6,557,325.12 100.00
== ============ ======
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN.
INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION
ONLY. DOES NOT PURPORT TO BE COMPLETE AND SHOULD NOT BE RELIED UPON IN
CONNECTION WITH ANY DECISION TO PURCHASE THE SECURITIES. THIS INFORMATION
SUPERSEDES ANY PRIOR VERSIONS HEREOF AND WILL BE DEEMED TO BE SUPERSEDED BY
ANY SUBSEQUENT VERSIONS INCLUDING, WITH RESPECT TO ANY DESCRIPTION OF THE
SECURITIES OR THE UNDERLYING ASSETS, THE INFORMATION CONTAINED IN THE FINAL
PROSPECTUS AND ACCOMPANYING PROSPECTUS SUPPLEMENT. OFFERS TO SELL AND
SOLIDICATIONS OF OFFERS TO BUY THE SECURITIES ARE MADE ONLY BY THE FINAL
PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
Updated Marketing Materials
June 16, 1998
8:03 AM
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
The attached Marketing Memorandum (the "Marketing Memorandum") is privileged and
confidential and is intended for use by the addressee only. This Marketing
Memorandum is furnished to you solely by First Union Capital Markets (the
"Underwriter") and not by the issuer of the notes identified above (the "Notes")
or any other party. The Marketing Memorandum is based upon information made
available to the Underwriter. Neither the Underwriter, the issuer of the Offered
Notes, nor any other party makes any representation as to the accuracy or
completeness of the information therein. The information herein is preliminary,
and will be superseded by the applicable prospectus supplement and by any other
information subsequently filed with the Securities and Exchange Commission. The
information herein may not be provided to any third party other than the
addressee's legal, tax, financial and/or accounting advisors for the purpose of
evaluating such information.
No assurance can be given as to the accuracy, appropriateness or completeness of
the Marketing Memorandum in any particular context; or as to whether the
Marketing Memorandum reflects future performance. This Marketing Memorandum
should not be construed as either a prediction or as legal, tax, and financial
or accounting advice.
Any yields or weighted average lives shown in the Marketing Memorandum are based
on prepayment and other assumptions and actual experience may dramatically
affect such yields or weighted average lives. The principal amount and
designation of any security described in the term sheet are subject to change
prior to issuance.
Although a registration statement (including the prospectus) relating to the
Offered Notes has been filed with the Securities and Exchange Commission and is
effective, the final prospectus supplement relating to the Offered Notes has not
been filed with the Securities and Exchange Commission. This communication shall
not constitute an offer to sell or a solicitation of an offer to buy nor shall
there be any sale of the Offered Notes in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state. Prospective purchasers are referred
to the final prospectus and prospectus supplement relating to the Offered Notes
for definitive terms of the Offered Notes and the collateral.
Please be advised that Offered Notes may not be appropriate for all investors.
Potential investors must be willing to assume, among other things, market price
volatility, prepayments, yield curve and interest rate risks. Investors should
fully consider the risk of an investment in these Offered Notes.
If you have received this communication in error, please notify the sending
party immediately by telephone and return the original to such party by mail.
(FIRST UNION LOGO)
FIRST UNION CAPITAL MARKETS
<PAGE>
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memo, June 16, 1998
Summary of Terms
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
(the "Notes")
Issuer: First Greensboro Home Equity Loan Trust 1998-1
(the "Trust")
Seller: First Greensboro Capital Corp.
Servicer: First Greensboro Home Equity, Inc.
Back-up Servicer: Calmco, Inc.
Manager: First Union Capital Markets
Securities Offered: 1998-1
Amount: $175,000,000
Collateral: Fixed and
adjustable-rate
home equity loans
Cut-off Date: 06/01/98
Prepayment Assumption: 25% HEP(1)
Expected Coupon: TBD
Spread: TBD
To Maturity:
------------
Average Life 3.32
To 10% Call:
------------
Average Life 3.08
Stated Maturity: 12/25/2029
Payment Frequency: Monthly
Interest rate basis: 30/360
Dated Date: 06/01/98
Payment Delay: 24 days
Pricing Date (expected): 06/19/98
Settlement Date(expected): 06/26/98
First Payment Date: 07/25/98
Rating (S&P/Moody's): AAA/Aaa
(1) HEP assumes that a pool of loans prepays in the first month of the life of
such loan at a constant prepayment rate that corresponds in CPR to one-tenth the
given HEP percentage and increases by an additional one-tenth each month
thereafter until the tenth month, where it remains at a CPR equal to the given
HEP percentage.
Description of the Notes: The Notes represent non-recourse obligations of the
Issuer and are secured by the assets of the Trust,
which will include (i) a pool of nonconforming, home
equity loans, (ii) all payments of principal and
First Union Capital Markets
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICIATION OF
AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. INFORMATION CONTAINED
HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE
COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO
PURCHASE THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINEDIN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS
SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE
MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memo, June 16, 1998
interest thereon due on or after the Cut-off Date,
(iii) security interests in the mortgaged properties,
(iv) amounts on deposit in the Note Account,
Pre-Funding Account and Capitalized Interest Account;
(v) the Issuer's rights under the Loan Transfer
Agreement, (vi) the Note Insurance Policies and (vii)
certain other property.
The assets of the trust estate and payments under the
Insurance Policy, if any, will be the only sources of
payments on the Notes. The Notes will be issued in a
single class.
Indenture Trustee: The Chase Manhattan Bank
Servicing Fee: 50 bps per annum
Indenture Trustee Fee: [1.25] bps
Note Insurer: Financial Surety Assurance, Inc. ("FSA"). The
claims-paying ability of FSA is rated "AAA" by
Standard & Poor's and "Aaa" by Moody's.
Note Insurance
Policies: The insurance policies of FSA guarantee the timely
payment of interest and the ultimate payment of
principal on the Notes.
Credit Enhancement: 1. Monthly Excess Spread
2. Overcollateralization
3. Insurance policy
Form of Notes: Book-Entry Form, delivered through the facilities of
DTC, Cedel, and Euroclear against payment in
immediately available funds.
Remittance Period: With respect to any payment date, the calendar month
immediately preceding the month in which such Payment
Date occurs (or, in the case of the first payment
date, the period from the day following the
applicable Cut-Off Date for each Home Equity Loan
through and including the last day of June, 1998).
Monthly Remittance Date: With respect to each payment date, the 18th day of
the month in which such payment date occurs, or if
such day is not a business day, then the preceding
business day.
Payments of Interest: On each Payment Date, Notes will be entitled to
payments in respect of interest accrued during the
related Interest Period at the Note Interest Rate on
the outstanding aggregate principal balance of the
Notes as of the preceding Payment Date (after giving
effect to the payment, if any, in reduction of
principal made on the Notes on such preceding Payment
Date). The "Interest Period" in respect of any
Payment Date will be the calendar month immediately
preceding the month in which the Payment Date occurs.
All calculations of interest on the Notes will be
computed on the basis of a year of 360 days and
twelve 30 day months.
If, with respect to any Payment Date, funds are not
available from Available Funds to pay the full amount
of Note Interest due on the Notes, the deficiency
will be covered by payments made pursuant to the
Insurance Policy for such Payment Date.
Coupon Step-up: After the Clean-Up Call Date, the Note Rate will
increase by 50 bps.
Payments of Principal: On each Payment Date, Notes will be entitled to
Monthly Principal in reduction of the Note Balance.
"Monthly Principal" with respect to any Payment Date
will be equal to the aggregate of all scheduled
payments of principal received with respect to the
Home Equity Loans and due during the related
Remittance Period and all other amounts collected,
received or otherwise recovered in respect of
principal on the Home Equity Loans during or in
respect of the related Remittance Period.
Payments of Excess Cash "Excess Cash" on any Payment Date will be equal to
Available Funds on such Payment Date, reduced by the
sum of (i) any amounts payable to the Note Insurer
for Insured Payments paid on prior Payment Dates and
not yet reimbursed and for any unpaid Note Insurer
Premiums for prior Payment Dates (in each case with
interest thereon at the Late Payment Rate set forth
in the Insurance Agreement), (ii) the Note Interest
for the related Payment Date, (iii) the Monthly
Principal for the related Payment Date and (iv) with
respect to the first Payment Date following the end
of the Funding Period, all amounts remaining in the
Pre-Funding Account to the extent not used to
purchase Subsequent Home Equity Loans during such
Funding Period. On each Payment Date with respect to
which the
First Union Capital Markets
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICIATION OF
AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. INFORMATION CONTAINED
HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE
COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO
PURCHASE THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINEDIN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS
SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE
MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memo, June 16, 1998
Overcollateralization Amount for the Notes is less
than the Required Overcollateralization Amount for
such Payment Date, Excess Cash derived from Available
Funds, if any, will be paid on the Notes in reduction
of the Note Balance, up to the amount necessary for
the related Overcollateralization Amount to equal the
applicable Required Overcollateralization Amount. Any
Excess Cash remaining after making required payments
on the Notes (including any payments as described in
the preceding sentence) and to the Note Insurer on
any Payment Date as described herein will be released
to the holder(s) of the Residual Interest on such
Payment Date, free from the lien of the Indenture
Trustee, and such amounts will not be available to
make any of the payments referred to in clauses
(i)-(iv) above on any subsequent Payment Date.
Overcollateralization: Credit enhancement with respect to the Notes will be
provided in part by overcollateralization resulting
from the limited acceleration of the Notes relative
to the amortization of the related collateral.
Accelerated amortization is achieved by applying
excess cash collected on the collateral to the
payment of principal of the Notes. The Indenture
requires that this Overcollateralization Amount be
increased to, and thereafter maintained at, the
Required Overcollateralization Amount. The Indenture
generally provides that the Required
Overcollateralization Amount may, over time, decrease
or increase, subject to certain floors, caps and
triggers including triggers that allow the related
Required Overcollateralization Amount to decrease or
"step down" based on the performance of the Home
Equity Loans with respect to certain delinquency rate
tests specified in the Indenture.
In addition, Excess Cash will be applied to the
payment in reduction of principal of the Notes during
the period that the Home Equity Loans are unable to
meet certain tests specified in the Indenture based
on delinquency rates. Any increase in the Required
Overcollateralization Amount may result in an
accelerated amortization of the Notes until such
Required Overcollateralization Amount is reached, and
any decrease in the Required Overcollateralization
Amount will result in a decelerated amortization of
the Notes until such Required Overcollateralization
Amount is reached.
Optional Redemption: The Notes may be redeemed, in full but not in part,
at the option of the Servicer on or after the first
Payment Date on which the Aggregate Principal Balance
of the Mortgage Loans in the Mortgage Pool has
declined to 10% or less of its Original Pool Balance.
In addition, the Note Insurer will have rights, under
limited circumstances, to effect a redemption of the
Notes and terminate the indenture.
Delinquency Advances: The Servicer will be obligated to make advances with
respect to delinquent payments of interest (at the
related Mortgage Rate less the Servicing Fee, as
defined below) and scheduled principal due on each
Mortgage Loan to the extent that such Delinquency
Advances, in good faith and in the Servicer's
reasonable judgment, are reasonably recoverable from
the related Mortgage Loan. To the extent that the
Master Servicer previously has made Delinquency
Advances with respect to a Home Equity Loan that the
Master Servicer subsequently determines to be
nonrecoverable, the Master Servicer shall be entitled
to reimbursement from the Trust.
Compensating Interest: If a full or partial prepayment of a Home Equity Loan
occurs during any calendar month, any difference
between the interest collected from the Mortgagor in
connection with such payoff and the full month's
interest that would be due on the related due date
for such Home Equity Loan will be required to be
deposited to the Principal and Interest Account on
the next succeeding Monthly Remittance Date by the
Master Servicer and shall be included in the Monthly
Remittance Amount to be made available to the
Indenture Trustee on the next succeeding Monthly
Remittance Date. With respect to any Payment Date,
the Master Servicer will not be required to remit
compensating interest in excess of the aggregate
Servicing Fee for the related Remittance Period.
Servicing Advances: Subject to the Master Servicer determination, in its
reasonable business judgment, that any proposed
advance not be recoverable, the Master Servicer will
be required to pay all "out of pocket" costs and
expenses incurred in the performance of its servicing
obligations, including, but not limited to, (i)
expenditures in connection with a foreclosed Home
Equity Loan prior to the liquidation thereof,
including, without limitation, expenditures for real
estate property taxes, hazard insurance premiums,
property restoration or preservation ("Preservation
Expenses"), (ii) the cost of any enforcement or
judicial proceedings, including foreclosures and
(iii) the cost of the management and liquidation of
Property acquired in satisfaction of the related
Mortgage. The Master Servicer may recover a Servicing
Advance from the Trust as provided under the
Servicing Agreement.
Pre-Funding Accounts: On the Closing Date, the Pre-Funded Amount, which
will be funded from the sale of the Notes, will be
deposited into the Pre-Funding Account, which will be
in the name of, and maintained by, the Indenture
Trustee in trust for the benefit of the holders of
the Notes, and may be used to acquire subsequent
mortgage loans.
First Union Capital Markets
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICIATION OF
AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. INFORMATION CONTAINED
HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE
COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO
PURCHASE THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINEDIN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS
SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE
MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memo, June 16, 1998
Capitalized Interest: On the closing date, cash in an amount satisfactory
to the Note Insurer will be deposited into a trust
account for the benefit of the holders of the Notes
to ensure payments of interest on the Pre-funded
amount during the Funding Period.
Mandatory Prepayment
of Notes: In the event that by July 31, 1998, not all funds in
the Pre-Funding Account have been used to acquire
Subsequent Mortgage Loans for inclusion in the
Mortgage Loan Pool, the Owners of the Notes will
receive a prepayment on the Payment Date in August
1998 in an amount equal to the Pre-Funded Amount,
less any Pre-Funding Account Earnings remaining at
the end of the Funding Period.
ERISA Considerations: The Notes may be purchased by employee benefit plans
that are subject to the Employee Retirement Income
Security Act of 1974, as amended. Investors should
consult their counsel with respect to limitations on
acquisition and ownership of the Notes and
consequences thereof.
SMMEA: The Notes will not constitute "mortgage related
securities" for purposed of the Secondary Mortgage
Market Enhancement Act of 1984 ("SMMEA").
Taxation: The Notes will be treated as debt obligations for tax
purposes. No REMIC election will be made.
Contact: Russ Andrews (704) 374-3472
Wallace Saunders (704) 374-4868
Pearl Bassard (704) 383-7591
David Duque (704) 383-5525
First Union Capital Markets
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICIATION OF
AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. INFORMATION CONTAINED
HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE
COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO
PURCHASE THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINEDIN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS
SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE
MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memo, June 16, 1998
Percentage of Original Note Principal Balance
*** To Maturity ***
<TABLE>
<CAPTION>
HEP
Date 20 23 25 27 30
<S> <C> <C> <C> <C> <C>
June 26, 1998 100 100 100 100 100
June 25, 1999 82 80 78 77 75
June 25, 2000 62 58 55 53 49
June 25, 2001 48 43 40 37 33
June 25, 2002 37 32 30 27 23
June 25, 2003 29 24 22 19 16
June 25, 2004 23 18 16 14 11
June 25, 2005 18 14 12 10 7
June 25, 2006 14 10 8 7 5
June 25, 2007 11 8 6 5 3
June 25, 2008 8 6 4 3 2
June 25, 2009 6 4 3 2 1
June 25, 2010 5 3 2 1 1
June 25, 2011 3 2 1 1 0
June 25, 2012 2 1 1 0 0
June 25, 2013 2 1 0 0 0
June 25, 2014 1 0 0 0 0
June 25, 2015 1 0 0 0 0
June 25, 2016 0 0 0 0 0
June 25, 2017 0 0 0 0 0
June 25, 2018 0 0 0 0 0
June 25, 2019 0 0 0 0 0
June 25, 2020 0 0 0 0 0
Average Life (Years) 4.06 3.58 3.32 3.09 2.79
</TABLE>
(1) The weighted average life of the Notes is determined by (I) multiplying the
amount of each principal payment by the number of years from the date of
issuance to the related Distribution Date, (ii) adding the results, and
(iii) dividing by the original respective Note Principal Balance for such
Offered Notes.
First Union Capital Markets
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICIATION OF
AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. INFORMATION CONTAINED
HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE
COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO
PURCHASE THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS
SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE
MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memo, June 16, 1998
<TABLE>
<CAPTION>
Percentage of Original Note Principal Balance
*** To Call ***
HEP
-----------------------------------------------------
Date 20 23 25 27 30
---- -- -- -- -- --
<S> <C> <C> <C> <C> <C>
June 26, 1998 100 100 100 100 100
June 25, 1999 82 80 78 77 75
June 25, 2000 62 58 55 53 49
June 25, 2001 48 43 40 37 33
June 25, 2002 37 32 30 27 23
June 25, 2003 29 24 22 19 16
June 25, 2004 23 18 16 14 11
June 25, 2005 18 14 12 10 0
June 25, 2006 14 10 0 0 0
June 25, 2007 11 0 0 0 0
June 25, 2008 0 0 0 0 0
June 25, 2009 0 0 0 0 0
Average Life (Years) 3.78 3.33 3.08 2.87 2.59
</TABLE>
(1) The weighted average life of the Notes is determined by (I) multiplying the
amount of each principal payment by the number of years from the date of
issuance to the related Distribution Date, (ii) adding the results, and
(iii) dividing by the original respective Note Principal Balance for such
Offered Notes.
First Union Capital Markets
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICIATION OF
AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. INFORMATION CONTAINED
HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE
COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO
PURCHASE THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS
SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE
MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memo, June 16, 1998
Summary of Characteristics of the Initial Home Equity Loans
Aggregate Number of Initial Home Equity Loans 2,304
Principal Balance
Aggregate Principal Balance $147,983,111.90
Average Principal Balance $64,228.78
Range of Principal Balances $6,762.38 - $698,651.66
Coupon Rates
Weighted Average Coupon Rate 10.30%
Range of Coupon Rates 7.55% - 17.99%
Original Term to Maturity
Weighted Average Original Term to Maturity 284 months
Range of Original Terms to Maturity 60 -360 Months
Remaining Term to Maturity
Weighted Average Remaining Term to Maturity 282 months
Range of Remaining Term to Maturity 57 - 360 Months
Combined Loan-to-Value Ratio
Weighted Average Combined Loan-to-Value Ratio 80.41%
Range of Combined Loan-to-Value Ratios 15.79 - 125.01%
Percentage of First Lien Initial Home Equity Loans 93.32%
Percentage of Second Lien Initial Home Equity Loans 6.68%
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
First Union Capital Markets
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICIATION OF
AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. INFORMATION CONTAINED
HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE
COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO
PURCHASE THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS
SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE
MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memo, June 16, 1998
<TABLE>
<CAPTION>
PRINCIPAL BALANCES
Aggregate Percentage
Number of Unpaid of Aggregate
Principal Mortgage Principal Unpaid Principal
Balance Loans Balance Balance
<S> <C> <C> <C>
5,000.01 - 10,000.00 14 130,999.06 0.09
10,000.01 - 15,000.00 59 787,118.71 0.53
15,000.01 - 20,000.00 91 1,626,199.45 1.10
20,000.01 - 25,000.00 100 2,286,496.23 1.55
25,000.01 - 30,000.00 118 3,301,075.72 2.23
30,000.01 - 35,000.00 115 3,751,478.70 2.54
35,000.01 - 40,000.00 139 5,284,245.93 3.57
40,000.01 - 45,000.00 148 6,365,949.54 4.30
45,000.01 - 50,000.00 152 7,302,629.27 4.93
50,000.01 - 55,000.00 156 8,199,148.43 5.54
55,000.01 - 60,000.00 208 12,053,505.20 8.15
60,000.01 - 65,000.00 158 9,873,040.66 6.67
65,000.01 - 70,000.00 149 10,055,794.11 6.80
70,000.01 - 75,000.00 108 7,834,653.85 5.29
75,000.01 - 80,000.00 92 7,118,815.82 4.81
80,000.01 - 85,000.00 61 5,044,238.05 3.41
85,000.01 - 90,000.00 62 5,428,497.58 3.67
90,000.01 - 95,000.00 43 3,982,394.68 2.69
95,000.01 - 100,000.00 50 4,867,699.47 3.29
100,000.01 - 125,000.00 124 13,878,324.88 9.38
125,000.01 - 150,000.00 72 9,650,755.15 6.52
150,000.01 - 200,000.00 50 8,562,482.96 5.79
200,000.01 - 250,000.00 17 3,821,609.17 2.58
250,000.01 - 300,000.00 9 2,471,654.52 1.67
300,000.01 - 350,000.00 2 655,886.18 0.44
350,000.01 - 400,000.00 1 365,750.00 0.25
400,000.01 - 450,000.00 1 427,000.00 0.29
450,000.01 - 500,000.00 3 1,463,684.53 0.99
650,000.01 - 700,000.00 2 1,391,984.05 0.94
----- --------------- ------
2,304 147,983,111.90 100.00
===== =============== ======
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
First Union Capital Markets
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICIATION OF
AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. INFORMATION CONTAINED
HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE
COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO
PURCHASE THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS
SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE
MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memo, June 16, 1998
<TABLE>
<CAPTION>
MORTGAGE RATES
Aggregate Percentage
Number of Unpaid of Aggregate
Mortgage Mortgage Principal Unpaid Principal
Rate Loans Balance Balance
<S> <C> <C> <C>
7.500 - 7.999 2 101,817.66 0.07
8.000 - 8.499 120 12,225,110.27 8.26
8.500 - 8.999 236 21,171,471.36 14.31
9.000 - 9.499 259 17,713,707.02 11.97
9.500 - 9.999 405 28,157,195.16 19.03
10.000 - 10.499 258 16,167,499.19 10.93
10.500 - 10.999 296 18,145,127.40 12.26
11.000 - 11.499 174 10,460,214.61 7.07
11.500 - 11.999 190 9,044,366.50 6.11
12.000 - 12.499 87 4,692,717.13 3.17
12.500 - 12.999 84 3,333,480.53 2.25
13.000 - 13.499 35 1,595,657.62 1.08
13.500 - 13.999 48 1,882,749.80 1.27
14.000 - 14.499 20 822,785.14 0.56
14.500 - 14.999 34 985,213.77 0.67
15.000 - 15.499 20 596,373.95 0.40
15.500 - 15.999 28 670,717.80 0.45
16.000 - 16.499 4 116,254.12 0.08
16.500 - 16.999 2 40,982.85 0.03
17.000 - 17.499 1 13,686.82 0.01
17.500 - 17.999 1 45,983.20 0.03
----- -------------- ------
2,304 147,983,111.90 100.00
===== ============== ======
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
First Union Capital Markets
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICIATION OF
AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. INFORMATION CONTAINED
HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE
COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO
PURCHASE THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS
SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE
MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memo, June 16, 1998
<TABLE>
<CAPTION>
COMBINED LOAN-TO-VALUE RATIOS
Aggregate Percentage
Combined Number of Unpaid of Aggregate
Loan-to-Value Mortgage Principal Unpaid Principal
Ratio Loans Balance Balance
<S> <C> <C> <C>
15.01 - 20.00 4 90,216.40 0.06
20.01 - 25.00 2 39,760.03 0.03
25.01 - 30.00 6 105,071.89 0.07
30.01 - 35.00 20 517,767.59 0.35
35.01 - 40.00 18 521,786.15 0.35
40.01 - 45.00 23 820,402.14 0.55
45.01 - 50.00 27 1,061,673.93 0.72
50.01 - 55.00 37 1,697,980.27 1.15
55.01 - 60.00 36 2,046,879.15 1.38
60.01 - 65.00 77 4,676,452.63 3.16
65.01 - 70.00 120 6,165,644.00 4.17
70.01 - 75.00 171 9,977,321.26 6.74
75.01 - 80.00 324 20,191,903.28 13.64
80.01 - 85.00 152 9,620,276.21 6.50
85.01 - 90.00 258 19,962,553.85 13.49
90.01 - 95.00 305 22,822,840.28 15.42
95.01 - 100.00 611 40,433,625.07 27.32
100.01 - 125.01 113 7,230,957.77 4.89
----- -------------- ------
2,304 147,983,111.90 100.00
===== ============== ======
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
First Union Capital Markets
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICIATION OF
AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. INFORMATION CONTAINED
HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE
COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO
PURCHASE THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS
SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE
MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memo, June 16, 1998
<TABLE>
<CAPTION>
REMAINING TERMS TO MATURITY
Aggregate Percentage
Number of Unpaid of Aggregate
Remaining Mortgage Principal Unpaid Principal
Term Loans Balance Balance
<S> <C> <C> <C>
49 - 60 8 144,222.00 0.10
61 - 72 2 57,595.34 0.04
73 - 84 15 342,617.00 0.23
85 - 96 1 47,968.03 0.03
97 - 108 1 32,925.17 0.02
109 - 120 100 3,207,205.19 2.17
133 - 144 10 422,878.61 0.29
145 - 156 2 113,711.56 0.08
157 - 168 1 13,686.82 0.01
169 - 180 627 28,841,062.36 19.49
181 - 192 1 85,798.12 0.06
193 - 204 1 88,315.28 0.06
217 - 228 4 114,690.34 0.08
229 - 240 320 18,740,985.82 12.66
289 - 300 669 45,399,424.30 30.68
325 - 336 5 332,875.12 0.22
337 - 348 6 664,716.50 0.45
349 - 352 1 280,427.65 0.19
353 - 356 55 5,169,717.22 3.49
357 76 7,803,453.00 5.27
358 130 11,907,452.68 8.05
359 109 9,739,181.64 6.58
360 160 14,432,202.15 9.75
----- -------------- ------
2,304 147,983,111.90 100.00
===== ============== ======
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
First Union Capital Markets
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICIATION OF
AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. INFORMATION CONTAINED
HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE
COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO
PURCHASE THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS
SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE
MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memo, June 16, 1998
<TABLE>
<CAPTION>
GEOGRAPHIC DISTRIBUTION OF MORTGAGE PROPERTIES
Aggregate Percentage
Number of Unpaid of Aggregate
Mortgage Principal Unpaid Principal
State Loans Balance Balance
<S> <C> <C> <C>
Arkansas 191 13,793,359.86 9.32
Colorado 5 333,560.47 0.23
Florida 41 2,458,366.88 1.66
Georgia 94 6,625,157.74 4.48
Idaho 25 1,951,990.50 1.32
Illinois 44 3,096,590.31 2.09
Indiana 18 1,210,610.21 0.82
Kansas 7 535,401.78 0.36
Kentucky 4 261,376.68 0.18
Louisiana 1 16,798.96 0.01
Mississippi 9 639,084.85 0.43
Missouri 44 2,397,876.45 1.62
Montana 1 89,247.81 0.06
Nevada 2 340,333.39 0.23
New Mexico 8 488,453.58 0.33
North Carolina 775 50,058,929.21 33.83
Oklahoma 86 3,917,268.17 2.65
Oregon 3 233,493.91 0.16
South Carolina 165 9,225,947.59 6.23
Tennessee 74 5,059,412.61 3.42
Texas 95 5,105,926.00 3.45
Utah 135 12,503,535.37 8.45
Virginia 426 24,305,889.65 16.42
Washington 1 124,793.21 0.08
West Virginia 14 698,250.73 0.47
Wisconsin 34 2,373,118.53 1.60
Wyoming 2 138,337.45 0.09
----- -------------- ------
2,304 147,983,111.90 100.00
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
First Union Capital Markets
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICIATION OF
AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. INFORMATION CONTAINED
HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE
COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO
PURCHASE THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS
SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE
MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memo, June 16, 1998
<TABLE>
<CAPTION>
OCCUPANCY STATUS
Aggregate Percentage
Number of Unpaid of Aggregate
Occupancy Mortgage Principal Unpaid Principal
Status Loans Balance Balance
<S> <C> <C> <C>
Non Owner Occupied 84 4,070,668.95 2.75
Owner Occupied 2,220 143,912,442.95 97.25
----- -------------- ------
2,304 147,983,111.90 100.00
===== ============== ======
TYPES OF MORTGAGED PROPERTIES
Aggregate Percentage
Number of Unpaid of Aggregate
Property Mortgage Principal Unpaid Principal
Type Loans Balance Balance
Single Family 1,949 126,410,607.55 85.42
2-4 Unit 12 787,238.62 0.53
Condominium 11 731,987.13 0.49
Manufactured Home 296 16,229,766.85 10.97
Mixed Use 1 128,700.00 0.09
PUD 35 3,694,811.75 2.50
----- -------------- ------
2,304 147,983,111.90 100.00
===== ============== ======
LOAN PURPOSES
Aggregate Percentage
Number of Unpaid of Aggregate
Mortgage Principal Unpaid Principal
Use of Proceeds Loans Balance Balance
Cashout Refinance 1,513 93,638,397.56 63.28
No Cashout Refinance 630 41,114,082.85 27.78
Purchase 161 13,230,631.49 8.94
----- -------------- ------
2,304 147,983,111.90 100.00
===== ============== ======
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
First Union Capital Markets
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICIATION OF
AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. INFORMATION CONTAINED
HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE
COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO
PURCHASE THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS
SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE
MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memo, June 16, 1998
<TABLE>
<CAPTION>
DOCUMENTATION TYPES
Aggregate Percentage
Number of Unpaid of Aggregate
Documentation Mortgage Principal Unpaid Principal
Type Loans Balance Balance
<S> <C> <C> <C>
FULL 2,185 138,766,746.60 93.77
NO INCOME QUALIFIER 105 8,433,518.88 5.70
STATED 14 782,846.42 0.53
-- ------------ ------
2,304 147,983,111.90 100.00
===== ============== ======
GROSS MARGINS OF THE ADJUSTABLE RATE LOANS
Aggregate Percentage
Number of Unpaid of Aggregate
Gross Mortgage Principal Unpaid Principal
Margin Loans Balance Balance
4.500 - 4.999 6 1,034,663.05 15.78
5.000 - 5.499 26 1,748,603.59 26.67
5.500 - 5.999 8 901,133.39 13.74
6.000 - 6.499 12 999,106.14 15.24
6.500 - 6.999 4 300,903.12 4.59
7.000 - 7.499 5 450,605.37 6.87
7.500 - 7.999 5 519,198.02 7.92
8.000 - 8.499 5 463,823.67 7.07
8.500 - 8.999 1 139,288.77 2.12
-- ------------ ------
72 6,557,325.12 100.00
== ============ ======
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
First Union Capital Markets
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICIATION OF
AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. INFORMATION CONTAINED
HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE
COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO
PURCHASE THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS
SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE
MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
<PAGE>
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Mortgage Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memo, June 16, 1998
<TABLE>
<CAPTION>
MAXIMUM RATES OF THE ADJUSTABLE RATE LOANS
Aggregate Percentage
Number of Unpaid of Aggregate
Maximum Mortgage Principal Unpaid Principal
Rate Loans Balance Balance
<S> <C> <C> <C>
13.500 - 13.999 2 101,817.66 1.55
14.000 - 14.499 5 249,807.53 3.81
14.500 - 14.999 9 1,334,627.18 20.35
15.000 - 15.499 17 1,238,908.76 18.89
15.500 - 15.999 16 1,439,028.62 21.95
16.000 - 16.499 7 624,282.37 9.52
16.500 - 16.999 8 845,870.54 12.90
17.000 - 17.499 6 594,057.91 9.06
18.000 - 18.499 2 128,924.55 1.97
-- ----------- ----
72 6,557,325.12 100.00
=== ============= ======
MINIMUM RATES OF THE ADJUSTABLE RATE LOANS
Aggregate Percentage
Number of Unpaid of Aggregate
Minimum Mortgage Principal Unpaid Principal
Rate Loans Balance Balance
7.500 - 7.999 2 101,817.66 1.55
8.000 - 8.499 5 249,807.53 3.81
8.500 - 8.999 9 1,334,627.18 20.35
9.000 - 9.499 17 1,238,908.76 18.89
9.500 - 9.999 16 1,439,028.62 21.95
10.000 - 10.499 7 624,282.37 9.52
10.500 - 10.999 8 845,870.54 12.90
11.000 - 11.499 6 594,057.91 9.06
12.000 - 12.499 2 128,924.55 1.97
-- ----------- ----
72 6,557,325.12 100.00
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND
WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT.
First Union Capital Markets
- --------------------------------------------------------------------------------
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICIATION OF
AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. INFORMATION CONTAINED
HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE
COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO
PURCHASE THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS
SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE
MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS.
