- --------------------------------------------------------------------------------
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 of Other Jurisdiction of (Commission File (I.R.S. Employer
Incorporation) Number) (Identification No.)
301 South Charlotte Street 28202
Charlotte, North Carolina (Zip Code)
(Address of Principal Executive
Offices)
Registrant's telephone number, including area code (704) 374-4868
No Change
(Former name or former address, if changed since last report)
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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 18, 1998
3
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
- ----------- -----------
99.1 Related Computational Materials (as defined in Item 5
above).
EXHIBIT 99.1
Updated Marketing Materials
June 19, 1998
4:44 PM
First Greensboro Home Equity Loan Trust 1998-1
$72,650,717 Class A-1 Fixed Rate Home Equity Loan,
Asset Backed Notes, Series 1998-1
$102,349,283 Class A-2 Fixed Rate Home Equity 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.
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
[FIRST UNION LOGO APPEARS HERE]
FIRST UNION CAPITAL MARKETS
<PAGE>
First Greensboro Home Equity Loan Trust 1998-1
$175,000,000 Fixed Rate Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
SUMMARY OF TERMS
$72,650,717 Class A-1Fixed Rate Home Equity Loan, Asset Backed Notes,
Series 1998-1 (the "Class A-1Notes") $102,349,283 Class A-2 Fixed Rate Home
Equity Loan, Asset Backed Notes, Series 1998-1 (the "Class A-2 Notes")
<TABLE>
<CAPTION>
<S> <C> <C> <C>
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: Class A-1 Class A-2
Amount: $72,650,717 $102,349,283
Collateral: Fixed and Fixed and adjustable-rate
adjustable-rate home home equity loans
equity loans
Cut-off Date: 06/01/98 06/01/98
Prepayment Assumption: 25% HEP1 25% HEP1
Expected Coupon: TBD TBD
Spread: TBD TBD
To Maturity:
Average Life 3.297 3.359
Expected Last Payment 11/25/2014 1/25/2015
To 10% Call:
Average Life 3.058 3.117
Expected Last Payment 3/25/2006 4/25/2006
Stated Maturity: 12/25/2029 12/25/2029
Payment Frequency: Monthly Monthly
Interest rate basis: 30/360 30/360
Dated Date: 06/01/98 06/01/98
Payment Delay: 24 days 24 days
Pricing Date (expected): 06/19/98 06/19/98
Settlement Date(expected): 06/26/98 06/26/98
First Payment Date: 07/25/98 07/25/98
Rating (S&P/Moody's): AAA/Aaa AAA/Aaa
</TABLE>
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
(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 consisting of two
Groups of nonconforming home equity loans transferred
to the Issuer on the Closing Date, additional
nonconforming, fixed rate and adjustable rate home
equity loans, if any, transferred to the Issuer
during the Funding Period; (ii) all interest and
principal due under the respective Home Equity Loans
on or after the related Cut-Off Date; (iii) security
interests in the properties securing such Home
Equity; (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 and the Servicing Agreement; (vi) the Note
Insurance Policies and (vii) certain other property.
The Notes will be issued in a two classes. The Class
A-1 Notes will be secured by the Group I Home Equity
Loans and the Class A-2 Notes will be secured by the
Group II Home Equity Loans. Payments on the Class A-1
Notes are solely from Available Funds for the Group I
Home Equity Loans and payments on the Class A-2 Notes
are solely from Available Funds for the Group II Home
Equity Loans.
Indenture Trustee: The Chase Manhattan Bank
Servicing Fee: 50 bps per annum
Indenture Trustee Fee: [1.25] bps per annum
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 current interest and the ultimate payment
of principal on the Notes.
Credit Enhancement: 1. Monthly Excess Spread
2. Overcollateralization
3. Note Insurance Policy
Form of Notes: Book-Entry Form, delivered through the facilities of
DTC, Cedel, and Euroclear against payment in
immediately available funds.
Denominations: The Notes will be issued in denominations of not less
than $25,000 principal amount and in integral
multiples of $1,000 in excess thereof.
Remittance Period: With respect to each Class of Notes and any Payment
Date, the calendar month immediately preceding the
month in which such Payment Date occurs
Monthly Remittance Date: With respect to each Class of Notes and any 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, each Class of Notes will be
entitled to payments in respect of interest accrued
during the related Interest Period at the related
Note Interest Rate on the outstanding aggregate
principal balance of the related Class of 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 for a Group to pay the
full amount of Note Interest due on the related
Notes, the deficiency will be covered by payments
made
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
pursuant to the Insurance Policy for such Payment Date.
Coupon Step-up: After the Clean-Up Call Date, the Note Rate for each
Class of Notes will increase by 50 bps.
Payments of Principal: On each Payment Date, each Class of Notes will be
entitled to Monthly Principal in reduction of the
related Note Balance. Monthly Principal with respect
to any Payment Date and each Class of Notes will
generally consist of the aggregate of all scheduled
payments of principal received with respect to the
Home Equity Loans in the related Group 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 in the related
Group during or in respect of the related Remittance
Period. Such amount will be decreased to take into
account any Overcollateralization Reduction Amount
with respect to the related Payment Date.
Payments of Excess Cash: "Excess Cash" for each Class on any Payment Date will
be equal to Available Funds for the related Group on
such Payment Date, reduced by the sum of (i) any
amounts payable to the Note Insurer for Insured
Payments with respect to such Class paid on prior
Payment Dates and not yet reimbursed and for any
unpaid Note Insurer Premiums for such Group 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
Class and Payment Date, (iii) the Monthly Principal
for the related Class and Payment Date and (iv) with
respect to each Class and 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 for
the related Group during such Funding Period.
On each Payment Date with respect to which the
Overcollateralization Amount for a Class of Notes is
less than the related Required Overcollateralization
Amount for such Payment Date, Excess Cash derived
from Available Funds in respect of the related Group,
if any, will be paid on the related Notes in
reduction of the related Note Balance, up to the
amount necessary for the related
Overcollateralization Amount to equal the applicable
Required Overcollateralization Amount. Any Excess
Cash remaining with respect to a Class after making
required payments on the related 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 each Class of
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 related
Class of 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 Majority Residual
Holder 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
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
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: 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, unless the Master Servicer has
determined, in its reasonable business judgment, that
such advance would not be recoverable.
Pre-Funding Accounts: On the Closing Date, approximately $27,016,888.10
will be funded from the sale of the Class A-2 Notes,
and will be deposited with the Indenture Trustee and
used by the Issuer to purchase the Group II
Subsequent Home Equity Loans.
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 Class
A-2 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 for Class A-2 have been used
to acquire Subsequent Mortgage Loans for inclusion in
the Group II Mortgage Loan Pool, the Owners of the
Class A-2 Notes will receive a prepayment on the
Payment Date in August 1998 in an amount equal to the
related 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
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
NOTE SUMMARY
<TABLE>
<CAPTION>
Class A-1 (to Maturity)
HEP 20 23 25 27 30
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
AVERAGE LIFE (YEARS) 4.032 3.559 3.297 3.067 2.773
MOD. DURATION (YEARS) 3.168 2.864 2.690 2.534 2.328
FIRST PAYMENT DATE 07/25/98 07/25/98 07/25/98 07/25/98 07/25/98
LAST PAYMENT DATE 2/25/18 2/25/16 11/25/14 9/25/13 5/25/12
PAYMENT WINDOW 1 - 236 1 - 212 1 - 197 1 - 183 1 - 167
YIELD AT PAR 6.513 6.500 6.491 6.482 6.468
Class A-1 (to Call)
HEP 20 23 25 27 30
- ------------------------------------------------------------------------------------------------------
AVERAGE LIFE (YEARS) 3.750 3.305 3.058 2.843 2.569
MOD. DURATION (YEARS) 3.037 2.735 2.563 2.409 2.208
FIRST PAYMENT DATE 07/25/98 07/25/98 07/25/98 07/25/98 07/25/98
LAST PAYMENT DATE 1/25/08 11/25/06 3/25/06 8/25/05 11/25/04
PAYMENT WINDOW 1 - 115 1 - 101 1 - 93 1 - 86 1 - 77
YIELD AT PAR 6.486 6.470 6.460 6.449 6.432
Class A-2 (to Maturity)
HEP 20 23 25 27 30
- ------------------------------------------------------------------------------------------------------
AVERAGE LIFE (YEARS) 4.105 3.625 3.359 3.127 2.83
MOD. DURATION (YEARS) 3.216 2.91 2.735 2.578 2.371
FIRST PAYMENT DATE 07/25/98 07/25/98 07/25/98 07/25/98 07/25/98
LAST PAYMENT DATE 6/25/18 5/25/16 1/25/15 11/25/13 6/25/12
PAYMENT WINDOW 1 - 240 1 - 215 1 - 199 1 - 185 1 - 168
YIELD AT PAR 6.534 6.522 6.514 6.505 6.491
Class A-2 (to Call)
HEP 20 23 25 27 30
- ------------------------------------------------------------------------------------------------------
AVERAGE LIFE (YEARS) 3.824 3.366 3.117 2.901 2.625
MOD. DURATION (YEARS) 3.087 2.780 2.607 2.453 2.252
FIRST PAYMENT DATE 07/25/98 07/25/98 07/25/98 07/25/98 07/25/98
LAST PAYMENT DATE 3/25/08 12/25/06 4/25/06 9/25/05 12/25/04
PAYMENT WINDOW 1 - 117 1 - 102 1 - 94 1 - 87 1 - 78
YIELD AT PAR 6.509 6.493 6.483 6.472 6.456
</TABLE>
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
Class A-1
Percentage of Original Note Principal Balance
<TABLE>
<CAPTION>
Date HEP
------------- --------------------------------------------------------
20 23 25 27 30
-- -- -- -- --
<S> <C> <C> <C> <C> <C>
June 26, 1998 100% 100% 100% 100% 100%
June 25, 1999 81 79 78 77 74
June 25, 2000 62 58 55 52 48
June 25, 2001 48 43 40 37 33
June 25, 2002 37 32 29 27 23
June 25, 2003 29 24 21 19 16
June 25, 2004 23 18 16 13 11
June 25, 2005 18 14 11 10 7
June 25, 2006 14 10 8 7 5
June 25, 2007 10 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 *
June 25, 2012 2 1 1 * 0
June 25, 2013 2 1 * * 0
June 25, 2014 1 * * 0 0
June 25, 2015 1 * 0 0 0
June 25, 2016 * 0 0 0 0
June 25, 2017 * 0 0 0 0
June 25, 2018 0 0 0 0 0
</TABLE>
* Outstanding Bond Balance is less than 0.5%
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
Class A-2
Percentage of Original Note Principal Balance
<TABLE>
<CAPTION>
Date HEP
------------- -------------------------------------------------------
20 23 25 27 30
-- -- -- -- --
<S> <C> <C> <C> <C> <C>
June 26, 1998 100% 100% 100% 100% 100%
June 25, 1999 83 81 79 78 76
June 25, 2000 63 59 56 53 50
June 25, 2001 48 43 41 38 34
June 25, 2002 38 33 30 27 23
June 25, 2003 30 25 22 19 16
June 25, 2004 23 19 16 14 11
June 25, 2005 18 14 12 10 7
June 25, 2006 14 10 9 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 4 2 1 1 *
June 25, 2012 3 1 1 * 0
June 25, 2013 2 1 * * 0
June 25, 2014 1 * * 0 0
June 25, 2015 1 * 0 0 0
June 25, 2016 * 0 0 0 0
June 25, 2017 * 0 0 0 0
June 25, 2018 0 0 0 0 0
</TABLE>
* Outstanding Bond Balance is less than 0.5%
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
Summary of Characteristics of the Group I Initial Home Equity Loans
Aggregate Number of Initial Home Equity Loans 1,177
Principal Balance
Aggregate Principal Balance $ 72,650,717.11
Average Principal Balance $ 61,725.33
Range of Principal Balances $ 6,964.18 - $ 225,024.51
Coupon Rates
Weighted Average Coupon Rate 10.285%
Range of Coupon Rates 7.700% - 17.990%
Original Term to Maturity
Weighted Average Original Term to Maturity 280
Range of Original Terms to Maturity 60 - 360 Months
Remaining Term to Maturity
Weighted Average Remaining Term to Maturity 279
Range of Remaining Term to Maturity 59 - 360 Months
Percentage Fixed Rate Loans 95.98%
Percentage Adjustable Rate Loans 4.02%
Percentage of First Lien Initial Home Equity Loans 94.62%
Percentage of Second Lien Initial Home Equity Loans 5.38%
Weighted Average Combined Loan-to-Value Ratio 80.24%
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
GROUP I
PRINCIPAL BALANCES
Aggregate Percentage
Number of Unpaid of Aggregate
Principal Mortgage Principal Unpaid Principal
Balances Loans Balance Balance
- ------------------------------------------------------------------------------
5,000.01 - 10,000.00 10 95,469.08 0.13
10,000.01 - 15,000.00 28 373,591.70 0.51
15,000.01 - 20,000.00 37 660,037.90 0.91
20,000.01 - 25,000.00 45 1,040,260.06 1.43
25,000.01 - 30,000.00 59 1,665,775.92 2.29
30,000.01 - 35,000.00 60 1,959,701.22 2.70
35,000.01 - 40,000.00 72 2,732,361.66 3.76
40,000.01 - 45,000.00 70 3,008,088.42 4.14
45,000.01 - 50,000.00 82 3,939,690.56 5.42
50,000.01 - 55,000.00 90 4,714,044.41 6.49
55,000.01 - 60,000.00 113 6,549,585.34 9.02
60,000.01 - 65,000.00 82 5,117,397.87 7.04
65,000.01 - 70,000.00 79 5,337,520.04 7.35
70,000.01 - 75,000.00 58 4,194,173.88 5.77
75,000.01 - 80,000.00 48 3,704,159.48 5.10
80,000.01 - 85,000.00 28 2,317,269.51 3.19
85,000.01 - 90,000.00 35 3,073,498.70 4.23
90,000.01 - 95,000.00 23 2,129,133.10 2.93
95,000.01 - 100,000.00 26 2,536,042.27 3.49
100,000.01 - 125,000.00 66 7,365,133.10 10.14
125,000.01 - 150,000.00 39 5,284,187.24 7.27
150,000.01 - 200,000.00 22 3,766,242.02 5.18
200,000.01 - 250,000.00 5 1,087,353.63 1.50
------ -------------- ------
1,177 72,650,717.11 100.00
====== ============== ======
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
GROUP I
MORTGAGE RATES
Aggregate Percentage
Number of Unpaid of Aggregate
Mortgage Mortgage Principal Unpaid Principal
Rate Loans Balance Balance
- ------------------------------------------------------------------------------
7.51 - 8.00 1 32,025.34 0.04
8.01 - 8.50 62 5,210,029.93 7.17
8.51 - 9.00 123 9,715,898.93 13.37
9.01 - 9.50 149 10,156,914.88 13.98
9.51 - 10.00 222 14,846,585.61 20.44
10.01 - 10.50 139 8,443,926.40 11.62
10.51 - 11.00 133 8,117,035.69 11.17
11.01 - 11.50 90 5,381,961.45 7.41
11.51 - 12.00 88 4,066,900.34 5.60
12.01 - 12.50 54 2,399,012.69 3.30
12.51 - 13.00 40 1,656,059.20 2.28
13.01 - 13.50 13 492,951.93 0.68
13.51 - 14.00 20 864,944.50 1.19
14.01 - 14.50 6 249,677.55 0.34
14.51 - 15.00 12 339,603.74 0.47
15.01 - 15.50 8 262,252.74 0.36
15.51 - 16.00 12 271,523.77 0.37
16.01 - 16.50 2 58,753.06 0.08
16.51 - 17.00 1 24,989.34 0.03
17.01 - 17.50 1 13,686.82 0.02
17.51 - 18.00 1 45,983.20 0.06
------ ---------- ----
1,177 72,650,717.11 100.00
====== ============== ======
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
GROUP I
COMBINED LOAN-TO-VALUE RATIOS
Aggregate Percentage
Number of Unpaid of Aggregate
Combined Mortgage Principal Unpaid Principal
Loan-to-Value Loans Balance Balance
- ---------------------------------------------------------------------------
15.01 - 20.00 3 78,216.40 0.11
20.01 - 25.00 2 39,760.03 0.05
25.01 - 30.00 4 78,071.89 0.11
30.01 - 35.00 8 215,434.02 0.30
35.01 - 40.00 11 323,575.99 0.45
40.01 - 45.00 10 315,464.62 0.43
45.01 - 50.00 11 436,537.11 0.60
50.01 - 55.00 16 914,013.46 1.26
55.01 - 60.00 18 743,487.49 1.02
60.01 - 65.00 45 2,385,008.63 3.28
65.01 - 70.00 76 3,812,303.12 5.25
70.01 - 75.00 116 6,651,737.70 9.16
75.01 - 80.00 491 30,247,766.32 41.63
80.01 - 85.00 119 8,437,495.69 11.61
85.01 - 90.00 144 11,426,574.39 15.73
90.01 - 95.00 64 5,407,653.84 7.44
95.01 - 100.00 21 599,899.66 0.83
100.01 - 105.00 3 82,989.34 0.11
105.01 - 110.00 4 75,875.03 0.10
110.01 - 115.00 2 55,000.00 0.08
115.01 - 120.00 2 67,810.81 0.09
120.01 - 125.00 7 256,041.57 0.35
----- ------------- ------
1,177 72,650,717.11 100.00
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
GROUP I
REMAINING TERMS TO MATURITY
Aggregate Percentage
Number of Unpaid of Aggregate
Remaining Mortgage Principal Unpaid Principal
Term Loans Balance Balance
- ------------------------------------------------------------------------------
49 - 60 4 89,823.47 0.12
61 - 72 1 30,595.34 0.04
73 - 84 7 126,573.16 0.17
85 - 96 1 47,968.03 0.07
97 - 108 1 32,925.17 0.05
109 - 120 53 1,847,496.81 2.54
133 - 144 4 142,675.65 0.20
157 - 168 1 13,686.82 0.02
169 - 180 302 14,176,778.96 19.51
181 - 192 1 85,798.12 0.12
217 - 228 1 16,600.56 0.02
229 - 240 178 10,375,840.90 14.28
289 - 300 358 23,432,921.89 32.25
325 - 336 4 257,021.01 0.35
353 - 356 28 2,015,807.99 2.77
357 40 3,315,356.23 4.56
358 58 5,282,903.66 7.27
359 59 5,184,832.74 7.14
360 76 6,175,110.60 8.50
------ -------------- ------
1,177 72,650,717.11 100.00
====== ============== ======
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
GROUP I
OCCUPANCY STATUS
Aggregate Percentage
Number of Unpaid of Aggregate
Occupancy Mortgage Principal Unpaid Principal
Status Loans Balance Balance
- --------------------------------------------------------------------------------
Non Owner Occupied 53 2,583,986.51 3.56
Owner Occupied 1,124 70,066,730.60 96.44
------ -------------- -----
1,177 72,650,717.11 100.00
====== ============== ======
GROUP I
PROPERTY TYPES
Aggregate Percentage
Number of Unpaid of Aggregate
Property Mortgage Principal Unpaid Principal
Type Loans Balance Balance
- --------------------------------------------------------------------------------
Single Family 985 61,494,903.80 84.64
2-4 Unit 6 385,732.71 0.53
Condominium 6 263,093.61 0.36
Manufactured Home 163 9,162,639.03 12.61
Mixed Use 1 128,700.00 0.18
PUD 16 1,215,647.96 1.67
------ -------------- -----
1,177 72,650,717.11 100.00
====== ============== ======
GROUP I
USE OF PROCEEDS
Aggregate Percentage
Number of Unpaid of Aggregate
Loan Mortgage Principal Unpaid Principal
Purpose Loans Balance Balance
- --------------------------------------------------------------------------------
Cashout Refinance 773 45,566,599.37 62.72
No Cashout Refinance 321 20,857,885.01 28.71
Purchase 83 6,226,232.73 8.57
------ -------------- -----
1,177 72,650,717.11 100.00
====== ============== ======
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
GROUP I
LOAN DOCUMENTATION
Aggregate Percentage
Number of Unpaid of Aggregate
Documentation Mortgage Principal Unpaid Principal
Type Loans Balance Balance
- ------------------------------------------------------------------------------
FULL 1,100 66,733,196.02 91.85
NO INCOME QUALIFIER 70 5,567,609.76 7.66
STATED 7 349,911.33 0.48
------ -------------- ------
1,177 72,650,717.11 100.00
====== ============== ======
GROUP I
GEOGRAPHIC DISTRIBUTION OF MORTGAGED PROPERTIES
Aggregate Percentage
Number of Unpaid of Aggregate
Mortgage Principal Unpaid Principal
State Loans Balance Balance
- -----------------------------------------------------------------------------
Arkansas 93 6,112,266.18 8.41
Florida 31 1,850,675.65 2.55
Georgia 46 2,932,475.95 4.04
Idaho 12 1,043,056.67 1.44
Illinois 24 1,382,898.86 1.90
Indiana 6 342,586.04 0.47
Kansas 4 366,004.80 0.50
Kentucky 3 178,240.44 0.25
Mississippi 4 188,625.10 0.26
Missouri 22 1,217,454.83 1.68
New Mexico 2 174,901.31 0.24
North Carolina 402 25,497,300.90 35.10
Oklahoma 45 2,011,433.26 2.77
Oregon 1 99,563.00 0.14
South Carolina 76 4,264,205.04 5.87
Tennessee 41 2,714,562.71 3.74
Texas 53 2,699,895.62 3.72
Utah 63 5,668,309.07 7.80
Virginia 229 12,599,298.11 17.34
West Virginia 5 243,315.69 0.33
Wisconsin 14 970,147.88 1.34
Wyoming 1 93,500.00 0.13
------ -------------- ------
1,177 72,650,717.11 100.00
====== ============== ======
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
GROUP I
GROSS MARGINS OF THE ADJUSTABLE RATE LOANS
Aggregate Percentage
Number of Unpaid of Aggregate
Gross Mortgage Principal Unpaid Principal
Margins Loans Balance Balance
- -------------------------------------------------------------------------------
4.51 - 5.00 2 90,320.61 3.09
5.01 - 5.50 15 1,092,961.63 37.42
5.51 - 6.00 5 536,846.03 18.38
6.01 - 6.50 4 274,705.61 9.41
6.51 - 7.00 2 138,178.71 4.73
7.01 - 7.50 3 168,911.69 5.78
7.51 - 8.00 3 312,119.44 10.69
8.01 - 8.50 2 167,509.47 5.73
8.51 - 9.00 1 139,288.77 4.77
-- ------------- ------
37 2,920,841.96 100.00
=== ============= ======
GROUP I
MAXIMUM MARGINS OF THE ADJUSTABLE RATE LOANS
Aggregate Percentage
Number of Unpaid of Aggregate
Maximum Mortgage Principal Unpaid Principal
Rates Loans Balance Balance
- --------------------------------------------------------------------------
13.51 - 14.00 1 32,025.34 1.10
14.01 - 14.50 3 138,699.71 4.75
14.51 - 15.00 5 437,217.31 14.97
15.01 - 15.50 7 501,597.90 17.17
15.51 - 16.00 10 886,982.06 30.37
16.01 - 16.50 2 74,416.31 2.55
16.51 - 17.00 3 314,050.17 10.75
17.01 - 17.50 4 406,928.61 13.93
18.01 - 18.50 2 128,924.55 4.41
-- ------------ ------
37 2,920,841.96 100.00
== ============ ======
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
GROUP I
FLOOR RATES OF THE ADJUSTABLE RATE LOANS
Aggregate Percentage
Number of Unpaid of Aggregate
Floor Mortgage Principal Unpaid Principal
Rates Loans Balance Balance
- --------------------------------------------------------------------------------
7.51 - 8.00 1 32,025.34 1.10
8.01 - 8.50 3 138,699.71 4.75
8.51 - 9.00 5 437,217.31 14.97
9.01 - 9.50 7 501,597.90 17.17
9.51 - 10.00 10 886,982.06 30.37
10.01 - 10.50 2 74,416.31 2.55
10.51 - 11.00 3 314,050.17 10.75
11.01 - 11.50 4 406,928.61 13.93
12.01 - 12.50 2 128,924.55 4.41
-- ------------ ------
37 2,920,841.96 100.00
== ============ ======
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
Summary of Characteristics of the Group II Initial Home Equity Loans
Aggregate Number of Initial Home Equity Loans 1,127
Principal Balance
Aggregate Principal Balance $75,332,394.79
Average Principal Balance $66,843.30
Range of Principal Balances $6,762.38 - $698,651.66
Coupon Rates
Weighted Average Coupon Rate 10.315%
Range of Coupon Rates 7.550% - 16.590%
Original Term to Maturity
Weighted Average Original Term to Maturity 287
Range of Original Terms to Maturity 60 - 360 Months
Remaining Term to Maturity
Weighted Average Remaining Term to Maturity 286
Range of Remaining Term to Maturity 57 - 360 Months
Percentage Fixed Rate Loans 95.17%
Percentage Adjustable Rate Loans 4.83%
Percentage of First Lien Initial Home Equity Loans 92.07%
Percentage of Second Lien Initial Home Equity Loans 7.93%
Weighted Average Combined Loan-to-Value Ratio 80.57%
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
GROUP II
PRINCIPAL BALANCES
Aggregate Percentage
Number of Unpaid of Aggregate
Principal Mortgage Principal Unpaid Principal
Balances Loans Balance Balance
- -------------------------------------------------------------------------------
5,000.01 - 10,000.00 4 35,529.98 0.05
10,000.01 - 15,000.00 31 413,527.01 0.55
15,000.01 - 20,000.00 54 966,161.55 1.28
20,000.01 - 25,000.00 55 1,246,236.17 1.65
25,000.01 - 30,000.00 59 1,635,299.80 2.17
30,000.01 - 35,000.00 55 1,791,777.48 2.38
35,000.01 - 40,000.00 67 2,551,884.27 3.39
40,000.01 - 45,000.00 78 3,357,861.12 4.46
45,000.01 - 50,000.00 70 3,362,938.71 4.46
50,000.01 - 55,000.00 66 3,485,104.02 4.63
55,000.01 - 60,000.00 95 5,503,919.86 7.31
60,000.01 - 65,000.00 76 4,755,642.79 6.31
65,000.01 - 70,000.00 70 4,718,274.07 6.26
70,000.01 - 75,000.00 50 3,640,479.97 4.83
75,000.01 - 80,000.00 44 3,414,656.34 4.53
80,000.01 - 85,000.00 33 2,726,968.54 3.62
85,000.01 - 90,000.00 27 2,354,998.88 3.13
90,000.01 - 95,000.00 20 1,853,261.58 2.46
95,000.01 - 100,000.00 24 2,331,657.20 3.10
100,000.01 - 125,000.00 58 6,513,191.78 8.65
125,000.01 - 150,000.00 33 4,366,567.91 5.80
150,000.01 - 200,000.00 28 4,796,240.94 6.37
200,000.01 - 250,000.00 12 2,734,255.54 3.63
250,000.01 - 300,000.00 9 2,471,654.52 3.28
300,000.01 - 350,000.00 2 655,886.18 0.87
350,000.01 - 400,000.00 1 365,750.00 0.49
400,000.01 - 450,000.00 1 427,000.00 0.57
450,000.01 - 500,000.00 3 1,463,684.53 1.94
650,000.01 - 700,000.00 2 1,391,984.05 1.85
------ ------------- ------
1,127 75,332,394.79 100.00
====== ============= ======
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
GROUP II
MORTGAGE RATES
Percentage
Aggregate of Aggregate
Number of Unpaid Unpaid
Mortgage Mortgage Principal Principal
Rate Loans Balance Balance
- ------------------------------------------------------------------------
7.51 - 8.00 1 69,792.32 0.09
8.01 - 8.50 67 8,270,809.18 10.98
8.51 - 9.00 111 10,755,925.88 14.28
9.01 - 9.50 108 7,579,747.23 10.06
9.51 - 10.00 182 13,015,221.00 17.28
10.01 - 10.50 126 8,453,756.46 11.22
10.51 - 11.00 157 9,398,446.80 12.48
11.01 - 11.50 84 5,044,671.23 6.70
11.51 - 12.00 99 4,762,204.01 6.32
12.01 - 12.50 50 2,833,106.84 3.76
12.51 - 13.00 28 1,068,490.34 1.42
13.01 - 13.50 21 1,087,130.78 1.44
13.51 - 14.00 28 1,096,014.57 1.45
14.01 - 14.50 12 444,658.31 0.59
14.51 - 15.00 22 645,610.03 0.86
15.01 - 15.50 12 334,121.21 0.44
15.51 - 16.00 16 399,194.03 0.53
16.01 - 16.50 2 57,501.06 0.08
16.51 - 17.00 1 15,993.51 0.02
----- ------------- ------
1,127 75,332,394.79 100.00
===== ============= ======
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
GROUP II
REMAINING TERMS TO MATURITY
Aggregate Percentage
Number of Unpaid of Aggregate
Remaining Mortgage Principal Unpaid Principal
Term Loans Balance Balance
- -----------------------------------------------------------------------------
49 - 60 4 54,398.53 0.07
61 - 72 1 27,000.00 0.04
73 - 84 8 216,043.84 0.29
109 - 120 47 1,359,708.38 1.80
133 - 144 6 280,202.96 0.37
145 - 156 2 113,711.56 0.15
169 - 180 325 14,664,283.40 19.47
193 - 204 1 88,315.28 0.12
217 - 228 3 98,089.78 0.13
229 - 240 142 8,365,144.92 11.10
289 - 300 311 21,966,502.41 29.16
325 - 336 1 75,854.11 0.10
337 - 348 6 664,716.50 0.88
349 - 352 1 280,427.65 0.37
353 - 356 27 3,153,909.23 4.19
357 36 4,488,096.77 5.96
358 72 6,624,549.02 8.79
359 50 4,554,348.90 6.05
360 84 8,257,091.55 10.96
----- ------------- ------
1,127 75,332,394.79 100.00
===== ============= ======
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
GROUP II
COMBINED LOAN-TO-VALUE RATIOS
Aggregate Percentage
Number of Unpaid of Aggregate
Combined Mortgage Principal Unpaid Principal
Loan-to-Value Loans Balance Balance
- ------------------------------------------------------------------------------
15.01 - 20.00 1 12,000.00 0.02
25.01 - 30.00 2 27,000.00 0.04
30.01 - 35.00 12 302,333.57 0.40
35.01 - 40.00 7 198,210.16 0.26
40.01 - 45.00 13 504,937.52 0.67
45.01 - 50.00 16 625,136.82 0.83
50.01 - 55.00 21 783,966.81 1.04
55.01 - 60.00 18 1,303,391.66 1.73
60.01 - 65.00 33 2,326,444.00 3.09
65.01 - 70.00 64 3,340,920.07 4.43
70.01 - 75.00 128 7,305,143.47 9.70
75.01 - 80.00 431 28,815,623.45 38.25
80.01 - 85.00 109 8,846,082.60 11.74
85.01 - 90.00 152 13,657,663.88 18.13
90.01 - 95.00 64 5,376,511.82 7.14
> 95.01 56 1,907,028.96 2.53
--- ------------- ----
1,127 75,332,394.79 100.00
====== ============== ======
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
GROUP II
GEOGRAPHIC DISTRIBUTION OF MORTGAGED PROPERTIES
Aggregate Percentage
Number of Unpaid of Aggregate
Mortgage Principal Unpaid Principal
State Loans Balance Balance
- -------------------------------------------------------------------------
Arkansas 98 7,681,093.68 10.20
Colorado 5 333,560.47 0.44
Florida 10 607,691.23 0.81
Georgia 48 3,692,681.79 4.90
Idaho 13 908,933.83 1.21
Illinois 20 1,713,691.45 2.27
Indiana 12 868,024.17 1.15
Kansas 3 169,396.98 0.22
Kentucky 1 83,136.24 0.11
Louisiana 1 16,798.96 0.02
Mississippi 5 450,459.75 0.60
Missouri 22 1,180,421.62 1.57
Montana 1 89,247.81 0.12
Nevada 2 340,333.39 0.45
New Mexico 6 313,552.27 0.42
North Carolina 373 24,561,628.31 32.60
Oklahoma 41 1,905,834.91 2.53
Oregon 2 133,930.91 0.18
South Carolina 89 4,961,742.55 6.59
Tennessee 33 2,344,849.90 3.11
Texas 42 2,406,030.38 3.19
Utah 72 6,835,226.30 9.07
Virginia 197 11,706,591.54 15.54
Washington 1 124,793.21 0.17
West Virginia 9 454,935.04 0.60
Wisconsin 20 1,402,970.65 1.86
Wyoming 1 44,837.45 0.06
----- ------------- ------
1,127 75,332,394.79 100.00
===== ============= ======
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
GROUP II
OCCUPANCY STATUS
Aggregate Percentage
Number of Unpaid of Aggregate
Occupancy Mortgage Principal Unpaid Principal
Status Loans Balance Balance
- ------------------------------------------------------------------------------
Non Owner Occupied 31 1,486,682.44 1.97
Owner Occupied 1,096 73,845,712.35 98.03
------ -------------- -----
1,127 75,332,394.79 100.00
====== ============== ======
GROUP II
PROPERTY TYPES
Aggregate Percentage
Number of Unpaid of Aggregate
Property Mortgage Principal Unpaid Principal
Type Loans Balance Balance
- -------------------------------------------------------------------------------
Single Family 964 64,915,703.75 86.17
2-4 Unit 6 401,505.91 0.53
Condominium 5 468,893.52 0.62
Manufactured Home 133 7,067,127.82 9.38
PUD 19 2,479,163.79 3.29
------ -------------- -----
1,127 75,332,394.79 100.00
====== ============== ======
GROUP II
USE OF PROCEEDS
Aggregate Percentage
Number of Unpaid of Aggregate
Loan Mortgage Principal Unpaid Principal
Purpose Loans Balance Balance
- ------------------------------------------------------------------------------
Cashout Refi 740 48,071,798.19 63.81
No Cashout Refi 309 20,256,197.84 26.89
Purchase 78 7,004,398.76 9.30
------ -------------- -----
1,127 75,332,394.79 100.00
====== ============== ======
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
GROUP II
LOAN DOCUMENTATION
Aggregate Percentage
Number of Unpaid of Aggregate
Documentation Mortgage Principal Unpaid Principal
Type Loans Balance Balance
- --------------------------------------------------------------------------------
FULL 1,085 72,033,550.58 95.62
NO INCOME QUALIFIER 35 2,865,909.12 3.80
STATED 7 432,935.09 0.57
----- ------------- ------
1,127 75,332,394.79 100.00
===== ============= ======
GROUP II
GROSS MARGINS OF THE ADJUSTABLE RATE LOANS
Aggregate Percentage
Number of Unpaid of Aggregate
Gross Mortgage Principal Unpaid Principal
Margins Loans Balance Balance
- --------------------------------------------------------------------------------
4.51 - 5.00 4 944,342.44 25.97
5.01 - 5.50 13 824,153.33 22.66
5.51 - 6.00 2 262,479.71 7.22
6.01 - 6.50 8 695,628.01 19.13
6.51 - 7.00 1 124,793.21 3.43
7.01 - 7.50 2 281,693.68 7.75
7.51 - 8.00 2 207,078.58 5.69
8.01 - 8.50 3 296,314.20 8.15
-- ------------ ------
35 3,636,483.16 100.00
== ============ ======
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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 Home Equity Loan, Asset Backed Notes, Series 1998-1
Updated Marketing Memorandum, June 19, 1998
GROUP II
MAXIMUM RATES OF THE ADJUSTABLE RATE LOANS
Aggregate Percentage
Number of Unpaid of Aggregate
Maximum Mortgage Principal Unpaid Principal
Rates Loans Balance Balance
- ----------------------------------------------------------------------------
13.51 - 14.00 1 69,792.32 1.92
14.01 - 14.50 2 111,107.82 3.06
14.51 - 15.00 6 1,157,876.96 31.84
15.01 - 15.50 8 476,843.77 13.11
15.51 - 16.00 6 552,046.56 15.18
16.01 - 16.50 5 549,866.06 15.12
16.51 - 17.00 5 531,820.37 14.62
17.01 - 17.50 2 187,129.30 5.15
-- ------------ ------
35 3,636,483.16 100.00
== ============ ======
GROUP II
FLOOR RATES OF THE ADJUSTABLE RATE LOANS
Aggregate Percentage
Number of Unpaid of Aggregate
Floor Mortgage Principal Unpaid Principal
Rates Loans Balance Balance
- ----------------------------------------------------------------------------
7.51 - 8.00 1 69792.32 1.92
8.01 - 8.50 2 111107.82 3.06
8.51 - 9.00 6 1157876.96 31.84
9.01 - 9.50 8 476843.77 13.11
9.51 - 10.00 6 552046.56 15.18
10.01 - 10.50 5 549866.06 15.12
10.51 - 11.00 5 531820.37 14.62
11.01 - 11.50 2 187,129.30 5.15
-- ------------ ------
35 3,636,483.16 100.00
== ============ ======
FIRST UNION CAPITAL MARKETS
- --------------------------------------------------------------------------------
THE INFORMATION IN THIS MARKETING MEMORANDUM SUPERSEDES THE INFORMATION IN ANY
PRECEDING MARKETING MEMORANDUM, AND WILL BE SUPERSEDED BY THE INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
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.
