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 22, 1998
Home Equity Securitization Corp.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
North Carolina 333-44409 56-2064715
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer
Identification No.)
301 South College Street, TW-06 28288-0166
Charlotte, North Carolina ----------
- --------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
</TABLE>
Registrant's telephone number, including area code (704) 374-4868
---------------------
No Change
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(Former name or former address, if changed since last report)
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<PAGE>
Item 5. Other Events
In connection with the offering of RBMG Funding Co. 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 RBMG Funding Co. Home
Equity Loan Trust 1998-1
Registrant
By: /S/ WALLACE SAUNDERS
--------------------
Name: Wallace Saunders
Title: Assistant Vice President
Dated: June 22, 1998
3
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
99.1 Related Computational Materials (as defined in Item 5
above).
UPDATED MARKETING MATERIALS
6/22/98 11:00 AM
RBMG FUNDING CO. HOME EQUITY LOAN TRUST 1998-1
$125,000,000 HOME EQUITY LOANS, 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 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.
[Logo appears here]
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FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
SUMMARY OF TERMS
ISSUER: RBMG Funding Co. Home Equity Loan Trust 1998-1
COLLATERAL: Adjustable-rate and fixed-rate mortgage ("Home
Equity") loans. The initial pool by principal
balance consists of 12.44% fixed-rate loans and
87.56% variable-rate loans.
ORIGINATOR: Resource Bancshares Mortgage Group, Inc.
MASTER SERVICER: Resource Bancshares Mortgage Group, Inc. or
"RBMG"
SERVICER: Ocwen Federal Bank FSB
SECURITIES OFFERED:
<TABLE>
<CAPTION>
SECURITIES CLASS A-1
<S> <C>
Amount: $125,000,000
Security Type: Variable-rate
Cut-Off Date: June 1, 1998
Index: One month LIBOR
Prepayment Assumptions: 27% CPR for ARM Pool
25% HEP(1) for Fixed Rate Pool
Average Life to Maturity: 2.96 years
Average Life to Call: 2.73 years
Expected Call Date: 10/25/05
Expected Maturity Date: 8/25/13
Expected Coupon: One month LIBOR + TBD
Stated Maturity Date: 10/25/29
Payment Date: 25th of each month
Payment Delay: None
Dated Date: Closing Date
Day Count: Actual/360
Pricing Date: TBD
Expected Closing Date: June 29, 1998
</TABLE>
(1) Home Equity Prepayment ("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-fifth the given HEP percentage, and increases by an
additional four-fifty-fifths the given HEP percentage each month thereafter
until the twelfth month, thereafter remaining at a CPR equal to the given HEP
percentage.
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
DESCRIPTION OF THE NOTES: The Notes will be secured by the Trust
Estate created by the Indenture. The assets
of the Trust Estate will consist of (i) the
Home Equity Pool; (ii) all payments in
respect of principal and interest on the
Home Equity Loans (other than any principal
or interest payments due on or prior to the
applicable Cut-off Date); (iii) a segregated
account established by the Issuer in the
name of the Indenture Trustee (the
"Pre-Funding Account") and funds on deposit
therein; (iv) the Issuer's rights under the
Depositor Sale Agreement and the Servicing
Agreement (each as defined herein); (v) the
rights of the Indenture Trustee under the
Insurance Policy; and (vi) certain other
property.
MASTER SERVICING FEE: 4 basis points per annum
SERVICING FEE: 40 basis points per annum
INDENTURE TRUSTEE: Bankers Trust Company
OWNER'S TRUSTEE: Wilmington Trust Company
DENOMINATIONS: Minimum denominations of $1,000 and in
integral multiples thereof.
FORM OF NOTES: Book-Entry Form, delivered through the
facilities of DTC, Cedel, and Euroclear
against payment in immediately available
funds.
RECORD DATE: Last business day preceding Payment Date
NOTE INSURER: MBIA Insurance Corp. ("MBIA"), whose claims
paying ability is rated AAA/Aaa/AAA by S&P,
Moody's and Fitch.
NOTE INSURANCE POLICY: Timely payment of interest and eventual
payment of principal on the Notes will be
100% guaranteed by MBIA.
CREDIT ENHANCEMENT: (a) Excess servicing cash flows
(b) Overcollateralization
(c) Insurance Policy
DUE PERIOD: With respect to any Payment Date, the period
commencing on the second day of the calendar
month preceding the calendar month in which
such Payment Date occurs and ending on the
first day of the calendar month in which
such Payment Date occurs.
COLLECTION PERIOD: With respect to any Payment Date of a Home
Equity Loan, te calendar month preceding the
month in which such Payment Date occurs.
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FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
SERVICER 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 next succeeding Business Day.
PAYMENTS ON THE NOTES: Payments on the Notes will be
made on each Payment Date to each Noteholder
of record as of the last Business Day
preceding such Payment Date or, with respect
to Definitive Notes, as of the last Business
Day of the month preceding the month in
which such Payment Date occurs.
On each Payment Date, payments of principal
and interest will be made to Noteholders as
of the immediately preceding Record Date out
of Available Funds for such Payment Date,
together with any payments received under
the Insurance Policy.
AVAILABLE FUNDS: The Available Funds for any Payment Date
will generally consist of the aggregate of
the following amounts:
(i) the sum of (a) all scheduled
payments of principal and interest
received with respect to the Home
Equity Loans and due during the
related Due Period and (b) all
unscheduled principal payments or
recoveries on the Home Equity Loans,
including principal prepayments,
received during the related
Collection Period, minus (w) amounts
received with respect to payments
due on or prior to the applicable
Cut-off Date, (x) the Administrative
Fee Amount payable with respect to
such Payment Date, (y) Payments
Ahead and (z) reimbursements for
certain P&I Advances and Servicing
Advances made with respect to the
Home Equity Loans and certain other
amounts for which the Indenture
Trustee, the Master Servicer and the
Issuer are permitted to be
reimbursed; and
(ii) the amount of any P&I Advances and
Compensating Interest Payments made
by the Servicer for such Payment
Date, any amounts deposited in the
Note Account in respect of the
repurchase, release, removal or
substitution of Home Equity Loans
during the related Collection Period
or amounts deposited in the Note
Account in connection with the
redemption of the Notes.
INTEREST CARRY-FORWARD: (a) If , on any Payment Date, the
Available Funds Cap Rate (as defined
below) limits the payment of the
full interest rate on the Notes, the
amount of any such shortfall will be
carried forward and be due and
payable on the following Payment
Date and shall accrue interest at
the note interest rate until paid
(the "Available Funds Cap Carry
Forward Amount").
(b) The payment of this Available Funds
Cap Carry Forward Amount would be
made in future periods from the
excess cash flows which would
otherwise paid to Residual Interest
Holder.
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FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
(c) The Note Insurer (MBIA) does not
cover the Available Funds Cap Carry
Forward Amount.
AVAILABLE FUNDS CAP RATE: The Available Funds Cap Rate for any payment
date is a rate per annum equal to the
fraction, expressed as a percentage, the
numerator of which is (i) an amount equal to
(A) 1/12 of the aggregate scheduled
principal balance of the then outstanding
home equity loans and REO properties times
the weighted average of the Expense Adjusted
Coupon Rates on the then outstanding home
equity loans and REO properties minus (B)
the amount of the Note Insurer premium for
such payment date, and the denominator of
which is (ii) an amount equal to (A) the
then outstanding aggregate note balance
multiplied by (B) the actual number of days
elapsed in the related interest period
divided by 360.
The Expense Adjusted Coupon Rate on any home
equity loan is equal to the then applicable
coupon rate minus the sum of (i) the Minimum
Spread and (ii) the Servicing Fee Rate. For
any Payment Date occurring from the Closing
Date through and including the twelfth
Payment Date, the Minimum Spread is equal to
0.00% per annum. For any Payment Date
occurring after the twelfth Payment Date the
Minimum Spread is equal to 0.50% per annum.
For any Payment Date for so long as the
Master Servicer is the master servicer, the
Servicing Fee Rate is equal to 0.44% per
annum; provided, however, that if necessary
to obtain the appointment of a successor
Master Servicer or Servicer, the Servicing
Fee Rate may increase up to 0.50% per annum.
PAYMENTS OF PRINCIPAL: On each Payment Date, the Notes will be
entitled to Monthly Principal in reduction
of the Note Balance.
MONTHLY PRINCIPAL
The Monthly Principal with respect to any
Payment Date will be equal to the lesser of
(a) the excess of Available Funds over the
amounts described in clauses (i) and (ii) of
the definition of Excess Cash below, and (b)
the aggregate of all scheduled payments of
principal received or advanced with respect
to the Home Equity Loans and due during the
related Due 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
Collection Period, not including Payments
Ahead, subject to reduction for any
Overcollateralization Surplus with respect
to the related Payment Date.
PAYMENTS OF EXCESS CASH: On each Payment Date with respect to which
the 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
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
"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 as defined and set forth in the
Insurance Agreement to be dated as of June
__, 1998 among the Issuer, RBMG, the
Company, Depositor, the Master Servicer, the
Indenture Trustee and the Note Insurer),
(ii) the Note Interest for the related
Payment Date and (iii) the Monthly Principal
for the related Payment Date.
The Insurance Policy does not cover the
Available Funds Cap Carry Forward Amount,
Prepayment Interest Shortfalls or shortfalls
in interest due to the application of the
Relief Act; the payment of such amounts may
be funded only from (a) any excess interest
resulting from the Available Funds Cap Rate
being in excess of the applicable Interest
Rate on future Payment Dates and (b) any
Excess Cash that would otherwise be paid to
the holder(s) of the Residual Interest.
Any Excess Cash remaining after making
required payments on the Notes 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. Certain of the Initial Home
Equity Loans will not have their first
monthly payment due until the Due Period
relating to the August 1998 Payment Date.
Accordingly, in the case of the July 1998
Payment Date, the amount of Excess Cash
available will be lower than it would have
been otherwise.
OPTIONAL REDEMPTION: The Notes may be redeemed, in full but not
in part, at the option of the Master
Servicer or the Note Insurer, on or after
the Payment Date on which the Home Equity
Pool Balance has declined to less than 10%
of then Transaction Balance.
COUPON STEP-UP: If the Notes are not redeemed pursuant to
the Optional Redemption, the coupon on the
Notes will be set at the lesser of (a) one
month LIBOR plus [xx] basis points and (b)
the Available Funds Cap Rate.
INTEREST PERIOD: Interest will accrue on the Notes from
Payment Date to Payment Date. For the first
Payment Date, interest will accrue from and
including the closing date to the first
Payment Date.
PRE-FUNDING ACCOUNT: The initial Home Equity pool as of the
closing date will have an aggregate
principal balance of [$100.0] million.
Additional home equity loans with
characteristics similar to those of initial
Home Equity pool will be transferred to the
Trust during 90 days from the Closing Date
(the "Funding Period") in exchange for
release of funds from the Pre-Funding
Account.
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FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
INTEREST COVERAGE ACCOUNT: On the Closing Date, RBMG will deposit in
the Interest Coverage Account a cash amount
as required by the Note Insurer to cover
shortfalls in the Note Interest attributable
to the Pre-Funding feature during the
Funding Period.
MANDATORY PREPAYMENT: To the extent that amounts on deposit in the
Pre-Funding Account have not been fully
applied by the Issuer to the purchase of
Additional Home Equity Loans and the pledge
thereof to the Indenture Trustee as security
for the Notes by the ninetieth day after the
Closing Date, such excess amounts will be
applied as a prepayment of the principal of
the Notes on the October 1998 Payment Date.
Although no assurance is given, it is
anticipated by the Issuer that the principal
amount of Additional Home Equity Loans
purchased by the Issuer and pledged to the
Indenture Trustee will require the
application of substantially all of the
Original Pre-Funding Amount and that there
should be no material amount of principal
prepaid on the Notes from amounts in the
Pre-Funding Account.
COMPENSATING INTEREST
PAYMENTS: With respect to any Home Equity Loan as to
which a prepayment in whole or in part was
received during the related Collection
Period, the Servicer on behalf of the Master
Servicer will be required to remit to the
Indenture Trustee, up to the amount
otherwise payable to the Servicer as its
servicing compensation for the related
Payment Date, an amount generally calculated
to cover Prepayment Interest Shortfalls to
ensure that a full month's interest on each
such Home Equity Loan is available for
payment to the Noteholders on the applicable
Payment Date. Compensating Interest Payments
are not reimbursable to the Master Servicer
or the Servicer.
LEGAL INVESTMENT
CONSIDERATIONS: The Notes are SMMEA eligible securities.
ERISA CONSIDERATIONS: The Issuer believes that the Notes are ERISA
eligible, subject to individual Plan account
restrictions. Accordingly, any Plan
fiduciary considering whether to purchase
any Notes on behalf of a Plan should consult
with its counsel prior to purchase of such
Notes.
TAXATION: The Notes will be treated as debt
obligations of the Issuer. No REMIC
election will be made.
NOTE RATINGS: AAA/Aaa by S&P and Moody's
FURTHER INFORMATION: If you have any questions, please call: Russ
Andrews at (704) 374-3472, Capital Markets
Desk, Evan Peverley at (704) 383-7522,
Specialty Finance Banking Brian Foley at
(704) 374-2662, Structuring.
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FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
<TABLE>
<CAPTION>
PRICE YIELD TABLE
***TO MATURITY***
CPR 0 15 20 27 30
HEP 0 15 20 25 30
<S> <C>
99-16 21.410 29.687 32.913 37.493 39.814
99-17 21.134 28.927 31.959 36.261 38.440
99-18 20.858 28.167 31.007 35.030 37.066
99-19 20.583 27.407 30.055 33.799 35.694
99-20 20.307 26.648 29.103 32.570 34.322
99-21 20.032 25.889 28.152 31.341 32.951
99-22 19.756 25.131 27.202 30.113 31.580
99-23 19.481 24.373 26.252 28.886 30.211
99-24 19.206 23.616 25.303 27.659 28.843
99-25 18.932 22.859 24.354 26.433 27.475
99-26 18.657 22.103 23.406 25.208 26.108
99-27 18.382 21.347 22.459 23.984 24.742
99-28 18.108 20.591 21.512 22.761 23.377
99-29 17.834 19.836 20.566 21.538 22.013
99-30 17.560 19.082 19.620 20.316 20.650
99-31 17.286 18.328 18.675 19.095 19.287
*100- 0 17.012 17.574 17.731 17.875 17.925
100- 1 16.738 16.821 16.787 16.655 16.564
100- 2 16.464 16.069 15.844 15.436 15.204
100- 3 16.191 15.317 14.901 14.218 13.845
100- 4 15.918 14.565 13.959 13.001 12.487
100- 5 15.644 13.814 13.018 11.784 11.129
100- 6 15.371 13.063 12.077 10.568 9.773
100- 7 15.099 12.313 11.136 9.353 8.417
100- 8 14.826 11.563 10.197 8.139 7.062
100- 9 14.553 10.814 9.258 6.925 5.708
100-10 14.281 10.065 8.319 5.712 4.354
100-11 14.008 9.316 7.381 4.500 3.002
100-12 13.736 8.569 6.444 3.289 1.650
100-13 13.464 7.821 5.507 2.078 0.299
100-14 13.192 7.074 4.571 0.868 -1.051
100-15 12.920 6.328 3.635 -0.341 -2.400
100-16 12.648 5.582 2.700 -1.550 -3.748
AVG LIFE 20.780 5.355 4.026 2.957 2.602
FIRST PAY 07/25/98 07/25/98 07/25/98 07/25/98 07/25/98
LAST PAY 5/25/28 7/25/23 9/25/18 8/25/13 11/25/11
WINDOW 1 - 359 1 - 301 1 - 243 1 - 182 1 - 161
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
PRICE YIELD TABLE
***TO CALL***
<TABLE>
<CAPTION>
CPR 0 15 20 27 30
HEP 0 15 20 25 30
<S> <C>
99-16 21.401 29.538 32.864 37.680 40.146
99-17 21.125 28.751 31.869 36.382 38.693
99-18 20.849 27.965 30.873 35.085 37.241
99-19 20.573 27.178 29.879 33.788 35.790
99-20 20.298 26.393 28.885 32.493 34.340
99-21 20.022 25.608 27.891 31.198 32.891
99-22 19.747 24.823 26.898 29.903 31.442
99-23 19.471 24.038 25.906 28.610 29.994
99-24 19.196 23.255 24.914 27.317 28.547
99-25 18.921 22.471 23.923 26.025 27.101
99-26 18.646 21.688 22.932 24.733 25.656
99-27 18.372 20.906 21.942 23.443 24.211
99-28 18.097 20.124 20.953 22.153 22.767
99-29 17.823 19.342 19.964 20.863 21.324
99-30 17.548 18.561 18.975 19.575 19.882
99-31 17.274 17.780 17.987 18.287 18.441
*100- 0 17.000 17.000 17.000 17.000 17.000
100- 1 16.726 16.220 16.013 15.714 15.560
100- 2 16.452 15.441 15.027 14.428 14.121
100- 3 16.179 14.662 14.042 13.143 12.683
100- 4 15.905 13.884 13.056 11.859 11.246
100- 5 15.632 13.106 12.072 10.575 9.809
100- 6 15.358 12.328 11.088 9.293 8.373
100- 7 15.085 11.551 10.105 8.011 6.938
100- 8 14.812 10.774 9.122 6.729 5.504
100- 9 14.540 9.998 8.140 5.449 4.071
100-10 14.267 9.222 7.158 4.169 2.638
100-11 13.994 8.447 6.177 2.889 1.206
100-12 13.722 7.672 5.196 1.611 -0.225
100-13 13.450 6.898 4.216 0.333 -1.655
100-14 13.177 6.124 3.237 -0.944 -3.085
100-15 12.905 5.350 2.258 -2.220 -4.513
100-16 12.633 4.577 1.280 -3.496 -5.941
AVG LIFE 20.736 4.991 3.731 2.732 2.402
FIRST PAY 07/25/98 07/25/98 07/25/98 07/25/98 07/25/98
LAST PAY 6/25/27 11/25/11 7/25/08 10/25/05 11/25/04
WINDOW 1 - 348 1 - 161 1 - 121 1 - 88 1 - 77
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
PERCENTAGE OF ORIGINAL BOND BALANCE
OUTSTANDING AT THE FOLLOWING PREPAYMENT ASSUMPTIONS
<TABLE>
<CAPTION>
CPR 0% 15% 20% 27% 30%
HEP 0 15 20 25 30
- --- - -- -- -- --
<S> <C>
DATE
June 29, 1998 100 100 100 100 100
June 25, 1999 96 82 77 71 68
June 25, 2000 94 67 59 49 45
June 25, 2001 94 56 46 36 31
June 25, 2002 93 47 37 26 22
June 25, 2003 92 39 29 19 15
June 25, 2004 92 33 23 14 10
June 25, 2005 91 28 18 10 7
June 25, 2006 90 24 15 7 5
June 25, 2007 89 20 12 5 3
June 25, 2008 88 17 9 3 2
June 25, 2009 86 14 7 2 1
June 25, 2010 85 12 5 1 1
June 25, 2011 83 10 4 1 0
June 25, 2012 81 8 3 0 0
June 25, 2013 78 7 2 0 0
June 25, 2014 76 5 2 0 0
June 25, 2015 74 4 1 0 0
June 25, 2016 71 3 1 0 0
June 25, 2017 68 3 0 0 0
June 25, 2018 64 2 0 0 0
June 25, 2019 60 1 0 0 0
June 25, 2020 56 1 0 0 0
June 25, 2021 51 1 0 0 0
June 25, 2022 46 0 0 0 0
June 25, 2023 40 0 0 0 0
June 25, 2024 33 0 0 0 0
June 25, 2025 26 0 0 0 0
June 25, 2026 18 0 0 0 0
June 25, 2027 9 0 0 0 0
June 25, 2028 0 0 0 0 0
Weighted Average Life to 20.78 5.36 4.03 2.96 2.60
Maturity in Years
Weighted Average Life to Call 20.74 4.99 3.73 2.73 2.40
in Years
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
Summary of Characteristics of the Initial Home Equity Loans
<TABLE>
<S> <C>
Number of Initial Home Equity Loans 796
Principal Balance
Aggregate Principal Balance $90,678,172.74
Average Principal Balance $113,917.30
Range of Principal Balances $22,732.79 - 475,698.98
Coupon Rates
Weighted Average Coupon Rate 9.71%
Range of Coupon Rates 7.00% - 14.25%
Remaining Term to Maturity
Weighted Average Remaining Term to Maturity 353 months
Range of Remaining Term to Maturity 165 - 360 months
Loan-to-Value Ratio
Weighted Average Loan-to-Value Ratio 78.42%
Range of Loan-to-Value Ratios 23.53% - 105.00%
Percentage of First Lien Home Equity Loans 100.00%
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
Initial Adjustable Rate Loans
<TABLE>
<CAPTION>
All Adjustable Rate Loans
----------------------------
<S> <C>
Number of Adjustable Rate Loans 645
Percentage of All Home Equity Loans 81.03%
(by number of loans)
Aggregate Principal Balance $79,395,120.24
Percentage of All Home Equity Loans 87.56%
(by aggregate principal balance)
Average Principal Balance as of the Cut-Off Date
Average $123,093.21
Range $22,732.79 - $475,698.98
Coupon Rates
Weighted Average 9.63%
Range 7.000% - 13.625%
Remaining Term to Maturity
(in months)
Weighted Average 359.25
Range 328 - 360
Loan-to-Value Ratio at Origination
Weighted Average 78.79%
Range 23.53% - 99.30%
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
Initial Fixed Rate Loans
<TABLE>
<CAPTION>
All Fixed Rate Loans
--------------------
<S> <C>
Number of Fixed Rate Loans 151
Percentage of All Home Equity Loans 18.97%
(by number of loans)
Aggregate Principal Balance $11,283,052.50
Percentage of All Home Equity Loans 12.44%
(by aggregate principal balance)
Average Principal Balance as of the Cut-Off Date
Average $74,722.20
Range $24,842.18 - $307,895.98
Coupon Rates
Weighted Average 10.27%
Range 7.375% - 14.250%
Remaining Term to Maturity
(in months)
Weighted Average 310.84
Range 165 - 360
Loan-to-Value Ratio at Origination
Weighted Average 75.80%
Range 25.00% - 105.00%
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
MORTGAGE RATES OF THE INITIAL FIXED RATE LOANS
<TABLE>
<CAPTION>
Percentage of Fixed
Rate Loans by
Number of Fixed Rate Aggregate
Range of Mortgage Rates (%) Loans Aggregate Principal Balance Principal Balance
<S> <C>
7.001 - 7.500 4 $380,484.78 3.37 %
7.501 - 8.000 9 936,286.44 8.30
8.001 - 8.500 5 523,689.89 4.64
8.501 - 9.000 10 933,758.88 8.28
9.001 - 9.500 19 1,117,168.88 9.90
9.501 - 10.000 10 1,025,411.92 9.09
10.001 - 10.500 17 1,155,160.65 10.24
10.501 - 11.000 17 1,550,078.37 13.74
11.001 - 11.500 19 1,478,357.21 13.10
11.501 - 12.000 18 982,428.77 8.71
12.001 - 12.500 12 665,188.48 5.90
12.501 - 13.000 6 266,946.41 2.37
13.001 - 13.500 3 159,362.19 1.41
13.501 - 14.000 1 52,479.63 0.47
14.001 - 14.500 1 56,250.00 0.50
- --------- ----
Totals 151 $11,283,052.50 100.00 %
=== ============== ======
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
PRINCIPAL BALANCES OF THE INITIAL FIXED RATE LOANS
<TABLE>
<CAPTION>
Percentage of Fixed
Rate Loans by
Number of Fixed Rate Aggregate
Range of Principal Balances ($) Loans Aggregate Principal Balance Principal Balance
------------------------------- ----- --------------------------- --------------------
<S> <C>
20,000.01 - 30,000.00 11 $293,280.70 2.60 %
30,000.01 - 40,000.00 23 837,217.94 7.42
40,000.01 - 50,000.00 17 782,945.51 6.94
50,000.01 - 60,000.00 25 1,355,811.60 12.02
60,000.01 - 70,000.00 19 1,226,969.62 10.87
70,000.01 - 80,000.00 10 764,375.94 6.77
80,000.01 - 90,000.00 6 515,365.54 4.57
90,000.01 - 100,000.00 7 672,453.60 5.96
100,000.01 - 125,000.00 17 1,887,879.21 16.73
125,000.01 - 150,000.00 6 828,840.94 7.35
150,000.01 - 175,000.00 4 648,710.99 5.75
175,000.01 - 200,000.00 1 194,719.74 1.73
200,000.01 - 225,000.00 2 418,407.55 3.71
250,000.01 - 275,000.00 1 269,901.07 2.39
275,000.01 - 300,000.00 1 278,276.57 2.47
300,000.01 - 325,000.00 1 307,895.98 2.73
- ---------- ----
Totals 151.00 $11,283,052.50 100.00 %
====== ============== ======
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
REMAINING TERM TO MATURITY OF THE INITIAL FIXED RATE LOANS
<TABLE>
<CAPTION>
Percentage of Fixed
Rate Loans by
Number of Fixed Aggregate
Remaining Term (months) Rate Loans Aggregate Principal Balance Principal Balance
---------------------- --------------- --------------------------- ------------------
<S> <C>
161 - 170 1 $ 157,630.41 1.40 %
171 - 180 40 2,249,005.55 19.93
251 - 260 7 331,509.10 2.94
261 - 270 3 196,518.62 1.74
271 - 280 2 142,977.45 1.27
281 - 290 2 162,367.13 1.44
321 - 330 4 373,893.91 3.31
331 - 340 9 809,332.58 7.17
341 - 350 2 259,211.32 2.30
351 - 355 1 63,561.64 0.56
357 1 61,437.47 0.54
358 7 514,120.73 4.56
359 17 1,270,200.87 11.26
360 55 4,691,285.72 41.58
-- ------------ -----
Totals 151 $11,283,052.50 100.00 %
=== ============== ======
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
MORTGAGE RATES OF THE INITIAL ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
Percentage of
Number of Adjustable Adjustable Rate
Rate Loans Loans by Aggregate
Range of Mortgage Rates (%) Aggregate Principal Balance Principal Balance
--------------------------- -------------------- --------------------------- -----------------
<S> <C>
6.501 - 7.000 1 $82,931.96 0.10 %
7.001 - 7.500 4 480,980.57 0.61
7.501 - 8.000 13 1,897,523.08 2.39
8.001 - 8.500 50 6,710,783.48 8.45
8.501 - 9.000 131 18,007,435.12 22.68
9.001 - 9.500 96 12,153,305.98 15.31
9.501 - 10.000 127 16,025,926.96 20.19
10.001 - 10.500 100 11,647,887.11 14.67
10.501 - 11.000 67 7,185,643.42 9.05
11.001 - 11.500 31 3,219,692.96 4.06
11.501 - 12.000 14 1,361,481.03 1.71
12.001 - 12.500 5 312,975.13 0.39
12.501 - 13.000 5 255,494.99 0.32
13.501 - 14.000 1 53,058.45 0.07
- --------- ----
Totals 645 $79,395,120.24 100.00 %
=== ============== ======
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
PRINCIPAL BALANCES OF THE INITIAL ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
Percentage of
Number of Adjustable Rate Loans
Adjustable by Aggregate
Range of Principal Balances ($) Rate Loans Aggregate Principal Balance Principal Balance
------------------------------- ---------- --------------------------- -----------------
<S> <C>
20,000.01 - 30,000.00 10 $268,331.32 0.34 %
30,000.01 - 40,000.00 13 470,306.73 0.59
40,000.01 - 50,000.00 34 1,559,271.01 1.96
50,000.01 - 60,000.00 38 2,096,107.28 2.64
60,000.01 - 70,000.00 47 3,092,369.54 3.89
70,000.01 - 80,000.00 58 4,354,160.19 5.48
80,000.01 - 90,000.00 44 3,787,265.44 4.77
90,000.01 - 100,000.00 49 4,684,477.77 5.90
100,000.01 - 125,000.00 115 12,911,026.43 16.26
125,000.01 - 150,000.00 65 8,843,939.76 11.14
150,000.01 - 175,000.00 45 7,315,384.96 9.21
175,000.01 - 200,000.00 48 8,986,146.66 11.32
200,000.01 - 225,000.00 25 5,362,380.26 6.75
225,000.01 - 250,000.00 17 4,005,012.93 5.04
250,000.01 - 275,000.00 8 2,121,357.30 2.67
275,000.01 - 300,000.00 8 2,327,564.20 2.93
300,000.01 - 325,000.00 11 3,460,863.56 4.36
325,000.01 - 350,000.00 6 2,012,288.88 2.53
375,000.01 - 400,000.00 1 397,282.42 0.50
425,000.01 - 450,000.00 2 863,884.62 1.09
475,000.01 - 500,000.00 1 475,698.98 0.60
- ---------- ----
Totals 645 $79,395,120.24 100.00 %
=== ============== ======
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
Remaining Terms to Maturity of the Initial Adjustable Rate Loans
<TABLE>
<CAPTION>
Percentage of
Number of Adjustable Rate Loans
Adjustable by Aggregate
Remaining Term (months) Rate Loans Aggregate Principal Balance Principal Balance
----------------------- ----------- --------------------------- -----------------
<S> <C>
321 - 330 1 $137,516.00 0.17 %
351 - 355 6 923,444.84 1.16
356 4 462,372.32 0.58
357 15 1,377,137.29 1.73
358 70 8,125,323.65 10.23
359 215 27,917,073.03 35.16
360 334 40,452,253.11 50.95
--- ------------- -----
Totals 645 $79,395,120.24 100.00 %
=== ============== ======
</TABLE>
GROSS MARGINS OF THE INITIAL ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
Percentage of
Number of Adjustable Rate Loans
Adjustable by Aggregate
Range of Gross Margins (%) Rate Loans Aggregate Principal Balance Principal Balance
-------------------------- --------------------------- -----------------
<S> <C>
2.501 - 3.000 1 $137,516.00 0.17 %
4.001 - 4.500 2 153,829.83 0.19
4.501 - 5.000 5 682,810.02 0.86
5.001 - 5.500 30 3,833,276.97 4.83
5.501 - 6.000 86 11,168,283.54 14.07
6.001 - 6.500 220 27,816,607.19 35.04
6.501 - 7.000 198 24,462,670.22 30.81
7.001 - 7.500 76 8,759,299.28 11.03
7.501 - 8.000 20 1,973,419.21 2.49
8.001 - 8.500 3 224,987.33 0.28
9.001 - 9.500 2 54,808.65 0.07
9.501 - 10.000 1 74,553.55 0.09
10.001 - 10.500 1 53,058.45 0.07
- --------- ----
Totals 645 $79,395,120.24 100.00 %
=== ============== ======
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
MAXIMUM RATES OF THE INITIAL ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
Percentage of
Number of Adjustable Rate Loans
Adjustable by Aggregate
Range of Maximum Rates (%) Rate Loans Aggregate Principal Balance Principal Balance
-------------------------- ------------ --------------------------- -----------------
<S> <C>
12.501 - 13.000 1 $137,516.00 0.17 %
13.501 - 14.000 1 82,931.96 0.10
14.001 - 14.500 4 480,980.57 0.61
14.501 - 15.000 12 1,760,007.08 2.22
15.001 - 15.500 49 6,486,683.48 8.17
15.501 - 16.000 132 18,231,535.12 22.96
16.001 - 16.500 96 12,153,305.98 15.31
16.501 - 17.000 127 16,025,926.96 20.19
17.001 - 17.500 100 11,647,887.11 14.67
17.501 - 18.000 67 7,185,643.42 9.05
18.001 - 18.500 31 3,219,692.96 4.06
18.501 - 19.000 14 1,361,481.03 1.71
19.001 - 19.500 5 312,975.13 0.39
19.501 - 20.000 5 255,494.99 0.32
20.501 - 21.000 1 53,058.45 0.07
- --------- ----
Totals 645 $79,395,120.24 100.00 %
=== ============== ======
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
MINIMUM RATES OF THE INITIAL ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
Percentage of
Number of Adjustable Rate Loans
Adjustable by Aggregate
Range of Minimum Rates (%) Rate Loans Aggregate Principal Balance Principal Balance
-------------------------- --------------------------- -----------------
<S> <C>
2.501 - 3.000 1 $137,516.00 0.17 %
6.501 - 7.000 1 82,931.96 0.10
7.001 - 7.500 4 480,980.57 0.61
7.501 - 8.000 12 1,760,007.08 2.22
8.001 - 8.500 50 6,710,783.48 8.45
8.501 - 9.000 130 17,870,516.00 22.51
9.001 - 9.500 96 12,153,305.98 15.31
9.501 - 10.000 128 16,162,846.08 20.36
10.001 - 10.500 100 11,647,887.11 14.67
10.501 - 11.000 67 7,185,643.42 9.05
11.001 - 11.500 31 3,219,692.96 4.06
11.501 - 12.000 14 1,361,481.03 1.71
12.001 - 12.500 5 312,975.13 0.39
12.501 - 13.000 5 255,494.99 0.32
13.501 - 14.000 1 53,058.45 0.07
- --------- ----
Totals 645 $79,395,120.24 100.00 %
=== ============== ======
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
NEXT INTEREST ADJUSTMENT DATE OF THE INITIAL ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
Percentage of
Number of Adjustable Rate Loans
Adjustable by Aggregate
Next Adjustment Date Rate Loans Aggregate Principal Balance Principal Balance
-------------------- ---------- --------------------------- -----------------
<S> <C>
06/01/98 1 $96,020.77 0.12 %
08/01/98 2 502,901.63 0.63
09/01/98 3 326,292.16 0.41
10/01/98 11 1,473,842.66 1.86
11/01/98 11 1,429,519.52 1.80
12/01/98 8 1,325,200.00 1.67
02/01/99 1 137,516.00 0.17
09/01/99 1 34,855.53 0.04
11/01/99 1 222,128.28 0.28
12/01/99 3 570,440.26 0.72
01/01/00 4 318,516.88 0.40
02/01/00 8 1,044,568.31 1.32
03/01/00 37 4,107,650.70 5.17
04/01/00 243 30,448,374.92 38.35
05/01/00 239 28,389,792.62 35.76
06/01/00 72 8,967,500.00 11.29
-- ------------ -----
Totals 645 $79,395,120.24 100.00 %
* === ============== ======
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
MORTGAGE RATES OF ALL THE INITIAL MORTGAGE LOANS
<TABLE>
Caption>
Percentage of
Mortgage Loans by
Number of Aggregate
Range of Mortgage Rates (%) Mortgage Loans Aggregate Principal Balance Principal Balance
-------------------------- -------------- --------------------------- -----------------
<S> <C>
6.501 - 7.000 1 $82,931.96 0.09 %
7.001 - 7.500 8 861,465.35 0.95
7.501 - 8.000 22 2,833,809.52 3.13
8.001 - 8.500 55 7,234,473.37 7.98
8.501 - 9.000 141 18,941,194.00 20.89
9.001 - 9.500 115 13,270,474.86 14.63
9.501 - 10.000 137 17,051,338.88 18.80
10.001 - 10.500 117 12,803,047.76 14.12
10.501 - 11.000 84 8,735,721.79 9.63
11.001 - 11.500 50 4,698,050.17 5.18
11.501 - 12.000 32 2,343,909.80 2.58
12.001 - 12.500 17 978,163.61 1.08
12.501 - 13.000 11 522,441.40 0.58
13.001 - 13.500 3 159,362.19 0.18
13.501 - 14.000 2 105,538.08 0.12
14.001 - 14.500 1 56,250.00 0.06
- --------- ----
Totals 796.00 $90,678,172.74 100.00 %
====== ============== ======
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
PRINCIPAL BALANCES OF ALL THE INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of
Mortgage Loans by
Number of Mortgage Aggregate
Range of Principal Balances ($) Mortgage Loans Aggregate Principal Balance Principal Balance
------------------------------- -------------- --------------------------- -----------------
<S> <C>
20,000.01 - 30,000.00 21 $561,612.02 0.62 %
30,000.01 - 40,000.00 36 1,307,524.67 1.44
40,000.01 - 50,000.00 51 2,342,216.52 2.58
50,000.01 - 60,000.00 63 3,451,918.88 3.81
60,000.01 - 70,000.00 66 4,319,339.16 4.76
70,000.01 - 80,000.00 68 5,118,536.13 5.64
80,000.01 - 90,000.00 50 4,302,630.98 4.74
90,000.01 - 100,000.00 56 5,356,931.37 5.91
100,000.01 - 125,000.00 132 14,798,905.64 16.32
125,000.01 - 150,000.00 71 9,672,780.70 10.67
150,000.01 - 175,000.00 49 7,964,095.95 8.78
175,000.01 - 200,000.00 49 9,180,866.40 10.12
200,000.01 - 225,000.00 27 5,780,787.81 6.38
225,000.01 - 250,000.00 17 4,005,012.93 4.42
250,000.01 - 275,000.00 9 2,391,258.37 2.64
275,000.01 - 300,000.00 9 2,605,840.77 2.87
300,000.01 - 325,000.00 12 3,768,759.54 4.16
325,000.01 - 350,000.00 6 2,012,288.88 2.22
375,000.01 - 400,000.00 1 397,282.42 0.44
425,000.01 - 450,000.00 2 863,884.62 0.95
475,000.01 - 500,000.00 1 475,698.98 0.52
- ---------- ----
Totals 796.00 $90,678,172.74 100.00 %
====== ============== ======
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
LOAN TO VALUE RATIOS OF ALL THE INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Number of Percentage of Mortgage
Range of Loan-to-Value Mortgage Aggregate Loans by Aggregate Weighted
Ratios at Origination (%) Loans Principal Balance Principal Balance Average LTV
------------------------- ------ ----------------- ----------------- -----------
<S> <C>
20.01 - 25.00 2 $89,883.72 0.10 % 24.35 %
25.01 - 30.00 1 29,579.64 0.03 26.54
30.01 - 35.00 4 233,460.02 0.26 32.32
35.01 - 40.00 6 416,642.43 0.46 38.46
40.01 - 45.00 6 480,140.35 0.53 43.62
45.01 - 50.00 15 1,116,038.46 1.23 48.77
50.01 - 55.00 13 1,120,753.82 1.24 53.02
55.01 - 60.00 18 1,632,440.60 1.80 58.08
60.01 - 65.00 51 5,279,035.29 5.82 63.83
65.01 - 70.00 91 8,435,760.97 9.30 69.66
70.01 - 75.00 84 8,532,974.81 9.41 74.53
75.01 - 80.00 270 34,086,722.82 37.59 79.77
80.01 - 85.00 107 12,479,353.41 13.76 84.88
85.01 - 90.00 107 15,252,363.68 16.82 89.82
90.01 - 95.00 6 420,864.40 0.46 93.05
95.01 - 100.00 9 687,266.79 0.76 97.39
100.01 - 105.00 6 384,891.53 0.42 102.37 %
- ---------- ----
Totals 796.00 $90,678,172.74 100.00 %
====== ============== ======
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
REMAINING TERMS TO MATURITY OF ALL THE INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of
Mortgage Loans by
Number of Aggregate
Remaining Term (months) Mortgage Loans Aggregate Principal Balance Principal Balance
---------------------- ----------------- ---------------------------- -------------------
<S> <C>
161 - 170 1 $157,630.41 0.17 %
171 - 180 40 2,249,005.55 2.48
251 - 260 7 331,509.10 0.37
261 - 270 3 196,518.62 0.22
271 - 280 2 142,977.45 0.16
281 - 290 2 162,367.13 0.18
321 - 330 5 511,409.91 0.56
331 - 340 9 809,332.58 0.89
341 - 350 2 259,211.32 0.29
351 - 355 7 987,006.48 1.09
356 4 462,372.32 0.51
357 16 1,438,574.76 1.59
358 77 8,639,444.38 9.53
359 232 29,187,273.90 32.19
360 389 45,143,538.83 49.78
--- ------------- -----
Totals 796.00 $90,678,172.74 100.00 %
====== ============== ======
</TABLE>
RISK CLASSIFICATIONS OF ALL THE INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of
Mortgage Loans by
Number of Mortgage Aggregate
Risk Classification Mortgage Loans Aggregate Principal Balance Principal Balance
------------------- ----------------- --------------------------- ------------------
<S> <C>
A 371 $46,946,504.13 51.77 %
A- 186 22,706,338.96 25.04
B 160 14,804,581.04 16.33
C 51 4,161,566.02 4.59
D 11 890,748.79 0.98
N/A 17 1,168,433.80 1.29
-- ------------ ----
Totals 796.00 $90,678,172.74 100.00 %
====== ============== ======
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
Geographic Distribution of the Mortgage Properties
of all the Initial Mortgage Loans
<TABLE>
<CAPTION>
Percentage of
Mortgage Loans by
Number of Aggregate
State Mortgage Loans Aggregate Principal Balance Principal Balance
----- -------------- --------------------------- -----------------
<S> <C>
Alabama 103 $7,529,541.40 8.30 %
Arizona 86 7,805,622.16 8.61
Arkansas 1 44,576.54 0.05
California 134 23,904,518.38 26.36
Colorado 73 9,269,532.27 10.22
Connecticut 1 274,682.40 0.30
Florida 12 952,920.83 1.05
Georgia 15 1,185,538.59 1.31
Idaho 10 954,259.37 1.05
Illinois 40 3,860,906.35 4.26
Indiana 5 524,202.65 0.58
Kansas 3 162,183.42 0.18
Louisiana 3 267,941.29 0.30
Maryland 1 74,199.10 0.08
Michigan 3 281,318.56 0.31
Minnesota 2 245,411.98 0.27
Mississippi 2 91,438.45 0.10
Missouri 9 856,727.14 0.94
Nebraska 1 130,632.61 0.14
Nevada 5 507,123.89 0.56
New Jersey 2 72,796.69 0.08
New York 22 1,750,493.76 1.93
North Carolina 3 197,595.01 0.22
Ohio 11 657,539.85 0.73
Oklahoma 2 151,230.39 0.17
Oregon 130 15,102,741.53 16.66
Pennsylvania 2 212,763.59 0.23
South Carolina 4 209,117.93 0.23
South Dakota 1 63,561.64 0.07
Tennessee 13 930,852.01 1.03
Texas 17 1,969,808.06 2.17
Utah 10 1,485,211.90 1.64
Virginia 1 77,071.46 0.08
Washington 66 8,656,511.44 9.55
West Virginia 1 48,424.07 0.05
Wisconsin 1 67,176.03 0.07
Wyoming 1 102,000.00 0.11
- ---------- ----
Totals 796.00 $90,678,172.74 100.00 %
====== ============== ======
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
NUMBER OF MONTHS ELAPSED FROM THE DATE OF ORIGINATION
OF ALL THE INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of
Mortgage Loans by
Number of Aggregate
Range of Months Mortgage Loans Aggregate Principal Balance Principal Balance
-------------- -------------- --------------------------- -----------------
<S> <C>
0 - 11 765 $88,107,216.22 97.16 %
12 - 23 7 613,112.88 0.68
24 - 35 10 1,124,471.34 1.24
72 - 83 2 162,367.13 0.18
84 - 95 2 142,977.45 0.16
96 - 107 10 528,027.72 0.58
-- ---------- ----
Totals 796.00 $90,678,172.74 100.00 %
====== ============== ======
</TABLE>
OCCUPANCY STATUS OF THE MORTGAGED PROPERTIES
OF ALL THE INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of
Mortgage Loans by
Number of Aggregate
Occupancy Status Mortgage Loans Aggregate Principal Balance Principal Balance
---------------- --------------- --------------------------- -------------------
<S> <C>
Investment 31 $2,757,467.32 3.04 %
Owner Occupied 755 87,013,257.16 95.96
Second Home 10 907,448.26 1.00
-- ---------- ----
Totals 796.00 $90,678,172.74 100.00 %
====== ============== ======
</TABLE>
TYPES OF MORTGAGED PROPERTIES OF ALL THE INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of
Mortgage Loans by
Number of Aggregate
Property Type Mortgage Loans Aggregate Principal Balance Principal Balance
------------ --------------- ---------------------------- -----------------
<S> <C>
Condo 17 $1,498,448.70 1.65 %
Multi-Family Home 29 2,983,942.10 3.29
PUD 73 9,889,876.71 10.91
Single Family Home 673 75,884,378.90 83.69
Townhouse 4 421,526.33 0.46
- ---------- ----
Totals 796.00 $90,678,172.74 100.00 %
====== ============== ======
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
USE OF PROCEEDS OF ALL THE INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of
Mortgage Loans by
Number of Mortgage Aggregate Principal
Use of Proceeds Mortgage Loans Aggregate Principal Balance Balance
-------------- -------------- --------------------------- -------
<S> <C>
Purchase 362 $41,797,030.09 46.09 %
Refi Cash Out 348 39,275,772.40 43.31
Refi Rate/Term 86 9,605,370.25 10.59
-- ------------ -----
Totals 796.00 $90,678,172.74 100.00 %
====== ============== ======
</TABLE>
PROGRAM CLASSIFICATIONS OF ALL THE INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of
Mortgage Loans by
Number of Mortgage Aggregate
Documentation Mortgage Loans Aggregate Principal Balance Principal Balance
------------- -------------- --------------------------- -----------------
<S> <C>
Full Documentation 545 $62,793,015.34 69.25 %
Limited Documentation 102 9,979,975.98 11.01
Stated Income Documentation 149 17,905,181.42 19.75
--- ------------- -----
Totals 796.00 $90,678,172.74 100.00 %
====== ============== ======
</TABLE>
PREPAYMENT PENALTIES WITH RESPECT TO ALL THE INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of
Mortgage Loans by
Number of Mortgage Aggregate
Prepayment Penalty Mortgage Loans Aggregate Principal Balance Principal Balance
------------------ -------------- --------------------------- ----------------
<S> <C>
1 YEAR 301 $40,898,846.23 45.10 %
2 YEAR 154 20,088,208.47 22.15
3 YEAR 104 9,422,198.76 10.39
NONE 237 20,268,919.28 22.35
--- ------------- -----
Totals 796.00 $90,678,172.74 100.00 %
====== ============== ======
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
AVAILABLE FUNDS CAP RATE*
<TABLE>
<CAPTION>
PERIOD DATE AFC PERIOD DATE AFC PERIOD DATE AFC
------ ---- --- ------ ---- --- ------ ---- ---
<S> <C>
1 7/25/98 10.516% 31 1/25/01 11.635% 61 7/25/03 11.904%
2 8/25/98 8.851% 32 2/25/01 11.532% 62 8/25/03 11.520%
3 9/25/98 8.876% 33 3/25/01 12.767% 63 9/25/03 11.520%
4 10/25/98 9.199% 34 4/25/01 11.531% 64 10/25/03 11.903%
5 11/25/98 8.978% 35 5/25/01 11.915% 65 11/25/03 11.519%
6 12/25/98 9.307% 36 6/25/01 11.530% 66 12/25/03 11.902%
7 1/25/99 9.038% 37 7/25/01 11.914% 67 1/25/04 11.518%
8 2/25/99 9.083% 38 8/25/01 11.529% 68 2/25/04 11.518%
9 3/25/99 10.096% 39 9/25/01 11.529% 69 3/25/04 12.312%
10 4/25/99 9.157% 40 10/25/01 11.913% 70 4/25/04 11.517%
11 5/25/99 9.539% 41 11/25/01 11.528% 71 5/25/04 11.901%
12 6/25/99 9.270% 42 12/25/01 11.912% 72 6/25/04 11.516%
13 7/25/99 9.097% 43 1/25/02 11.527% 73 7/25/04 11.900%
14 8/25/99 8.855% 44 2/25/02 11.527% 74 8/25/04 11.516%
15 9/25/99 8.898% 45 3/25/02 12.761% 75 9/25/04 11.515%
16 10/25/99 9.237% 46 4/25/02 11.526% 76 10/25/04 11.899%
17 11/25/99 8.983% 47 5/25/02 11.910% 77 11/25/04 11.515%
18 12/25/99 9.329% 48 6/25/02 11.525% 78 12/25/04 11.898%
19 1/25/00 9.077% 49 7/25/02 11.909% 79 1/25/05 11.514%
20 2/25/00 9.126% 50 8/25/02 11.525% 80 2/25/05 11.513%
21 3/25/00 10.137% 51 9/25/02 11.524% 81 3/25/05 12.747%
22 4/25/00 9.504% 52 10/25/02 11.908% 82 4/25/05 11.513%
23 5/25/00 11.310% 53 11/25/02 11.523% 83 5/25/05 11.896%
24 6/25/00 10.970% 54 12/25/02 11.907% 84 6/25/05 11.512%
25 7/25/00 11.738% 55 1/25/03 11.523% 85 7/25/05 11.895%
26 8/25/00 11.481% 56 2/25/03 11.522% 86 8/25/05 11.511%
27 9/25/00 11.510% 57 3/25/03 12.756% 87 9/25/05 11.511%
28 10/25/00 11.924% 58 4/25/03 11.522% 88 10/25/05 11.894%
29 11/25/00 11.570% 59 5/25/03 11.905% 89 11/25/05 11.510%
30 12/25/00 11.989% 60 6/25/03 11.521% 90 12/25/05 11.894%
</TABLE>
* AVAILABLE FUNDS CAP RATEASSUMING THAT SIX MONTH LIBOR REMAINS CONSTANT AT
5.71875% @ PRICING SPEED OF 27 CPR/25 HEP. THE CALCULATION OF AVAILABLE FUNDS
CAP RATE IS BASED ON THE DEFINITION PROVIDED ON P. 5 OF THE MARKETING
MEMORANDUM.
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
AVAILABLE FUNDS CAP RATE*
<TABLE>
<CAPTION>
PERIOD DATE AFC PERIOD DATE AFC PERIOD DATE AFC
------ ---- --- ------ ---- --- ------ ---- ---
<S> <C>
91 1/25/06 11.510% 121 7/25/08 13.203% 151 1/25/11 17.750%
92 2/25/06 11.509% 122 8/25/08 12.855% 152 2/25/11 18.102%
93 3/25/06 12.742% 123 9/25/08 12.936% 153 3/25/11 20.458%
94 4/25/06 11.509% 124 10/25/08 13.455% 154 4/25/11 18.882%
95 5/25/06 11.892% 125 11/25/08 13.109% 155 5/25/11 19.960%
96 6/25/06 11.530% 126 12/25/08 13.641% 156 6/25/11 19.783%
97 7/25/06 11.948% 127 1/25/09 13.297% 157 7/25/11 20.965%
98 8/25/06 11.595% 128 2/25/09 13.397% 158 8/25/11 20.836%
99 9/25/06 11.629% 129 3/25/09 14.947% 159 9/25/11 21.431%
100 10/25/06 12.053% 130 4/25/09 13.610% 160 10/25/11 22.815%
101 11/25/06 11.701% 131 5/25/09 14.181% 161 11/25/11 22.788%
102 12/25/06 12.129% 132 6/25/09 13.842% 162 12/25/11 24.351%
103 1/25/07 11.777% 133 7/25/09 14.433% 163 1/25/12 24.424%
104 2/25/07 11.817% 134 8/25/09 14.097% 164 2/25/12 25.374%
105 3/25/07 13.130% 135 9/25/09 14.234% 165 3/25/12 28.255%
106 4/25/07 11.902% 136 10/25/09 14.856% 166 4/25/12 27.616%
107 5/25/07 12.345% 137 11/25/09 14.528% 167 5/25/12 29.915%
108 6/25/07 11.993% 138 12/25/09 15.175% 168 6/25/12 30.465%
109 7/25/07 12.442% 139 1/25/10 14.851% 169 7/25/12 33.270%
110 8/25/07 12.091% 140 2/25/10 15.026% 170 8/25/12 34.198%
111 9/25/07 12.142% 141 3/25/10 16.839% 171 9/25/12 36.534%
112 10/25/07 12.602% 142 4/25/10 15.404% 172 10/25/12 40.604%
113 11/25/07 12.251% 143 5/25/10 16.128% 173 11/25/12 42.607%
114 12/25/07 12.719% 144 6/25/10 15.824% 174 12/25/12 48.209%
115 1/25/08 12.368% 145 7/25/10 16.588% 175 1/25/13 51.707%
116 2/25/08 12.430% 146 8/25/10 16.295% 176 2/25/13 58.191%
117 3/25/08 13.356% 147 9/25/10 16.551% 177 3/25/13 73.970%
118 4/25/08 12.561% 148 10/25/10 17.384% 178 4/25/13 78.827%
119 5/25/08 13.051% 149 11/25/10 17.113% 179 5/25/13 112.484%
120 6/25/08 12.702% 150 12/25/10 18.002% 180 6/25/13 147.898%
181 7/25/13 256.415%
</TABLE>
*AVAILABLE FUNDS CAP ASSUMING THAT SIX MONTH LIBOR REMAINS CONSTANT AT 5.71875%
@ PRICING SPEED OF 27 CPR/25 HEP. THE CALCULATION OF AVAILABLE FUNDS CAP RATE IS
BASED ON THE DEFINITION PROVIDED ON P. 5 OF THE MARKETING MEMORANDUM.
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
AVAILABLE FUNDS CAP RATE**
<TABLE>
<CAPTION>
PERIOD DATE AFC PERIOD DATE AFC PERIOD DATE AFC
------ ---- --- ------ ---- --- ------ ---- ---
<S> <C>
1 7/25/98 10.516% 31 1/25/01 13.465% 61 7/25/03 16.108%
2 8/25/98 8.851% 32 2/25/01 13.411% 62 8/25/03 15.587%
3 9/25/98 8.876% 33 3/25/01 15.068% 63 9/25/03 15.586%
4 10/25/98 9.199% 34 4/25/01 13.609% 64 10/25/03 16.105%
5 11/25/98 8.978% 35 5/25/01 14.933% 65 11/25/03 15.584%
6 12/25/98 9.307% 36 6/25/01 14.450% 66 12/25/03 16.103%
7 1/25/99 9.038% 37 7/25/01 15.153% 67 1/25/04 15.582%
8 2/25/99 9.083% 38 8/25/01 14.718% 68 2/25/04 15.581%
9 3/25/99 10.097% 39 9/25/01 14.868% 69 3/25/04 16.655%
10 4/25/99 9.158% 40 10/25/01 15.362% 70 4/25/04 15.579%
11 5/25/99 9.548% 41 11/25/01 15.427% 71 5/25/04 16.098%
12 6/25/99 9.279% 42 12/25/01 15.941% 72 6/25/04 15.578%
13 7/25/99 9.107% 43 1/25/02 15.568% 73 7/25/04 16.096%
14 8/25/99 8.867% 44 2/25/02 15.604% 74 8/25/04 15.576%
15 9/25/99 8.910% 45 3/25/02 17.276% 75 9/25/04 15.575%
16 10/25/99 9.250% 46 4/25/02 15.603% 76 10/25/04 16.093%
17 11/25/99 9.045% 47 5/25/02 16.122% 77 11/25/04 15.573%
18 12/25/99 9.394% 48 6/25/02 15.601% 78 12/25/04 16.091%
19 1/25/00 9.140% 49 7/25/02 16.119% 79 1/25/05 15.571%
20 2/25/00 9.204% 50 8/25/02 15.598% 80 2/25/05 15.571%
21 3/25/00 10.264% 51 9/25/02 15.597% 81 3/25/05 17.238%
22 4/25/00 9.624% 52 10/25/02 16.116% 82 4/25/05 15.569%
23 5/25/00 11.746% 53 11/25/02 15.595% 83 5/25/05 16.087%
24 6/25/00 11.394% 54 12/25/02 16.114% 84 6/25/05 15.567%
25 7/25/00 12.243% 55 1/25/03 15.593% 85 7/25/05 16.085%
26 8/25/00 12.001% 56 2/25/03 15.592% 86 8/25/05 15.566%
27 9/25/00 12.231% 57 3/25/03 17.263% 87 9/25/05 15.565%
28 10/25/00 12.671% 58 4/25/03 15.591% 88 10/25/05 16.083%
29 11/25/00 13.175% 59 5/25/03 16.110% 89 11/25/05 15.563%
30 12/25/00 13.651% 60 6/25/03 15.589% 90 12/25/05 16.081%
</TABLE>
**Available Funds Cap Assuming that Six Month LIBOR immediately rises above
Ceilings of Collateral @ Pricing Speed of 27 CPR/25 HEP. The calculation of
Available Funds Cap Rate is based on the definition provided on p. 5 of the
marketing memorandum.
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
<PAGE>
AVAILABLE FUNDS CAP RATE**
<TABLE>
<CAPTION>
<S> <C>
PERIOD DATE AFC PERIOD DATE AFC PERIOD DATE AFC
------ ---- --- ------ ---- --- ------ ---- ---
91 1/25/06 15.562% 121 7/25/08 17.741% 151 1/25/11 23.359%
92 2/25/06 15.561% 122 8/25/08 17.268% 152 2/25/11 23.784%
93 3/25/06 17.227% 123 9/25/08 17.372% 153 3/25/11 26.834%
94 4/25/06 15.559% 124 10/25/08 18.063% 154 4/25/11 24.722%
95 5/25/06 16.077% 125 11/25/08 17.592% 155 5/25/11 26.082%
96 6/25/06 15.562% 126 12/25/08 18.300% 156 6/25/11 25.797%
97 7/25/06 16.123% 127 1/25/09 17.831% 157 7/25/11 27.275%
98 8/25/06 15.646% 128 2/25/09 17.958% 158 8/25/11 27.039%
99 9/25/06 15.690% 129 3/25/09 20.029% 159 9/25/11 27.735%
100 10/25/06 16.260% 130 4/25/09 18.229% 160 10/25/11 29.438%
101 11/25/06 15.783% 131 5/25/09 18.985% 161 11/25/11 29.308%
102 12/25/06 16.359% 132 6/25/09 18.523% 162 12/25/11 31.207%
103 1/25/07 15.881% 133 7/25/09 19.303% 163 1/25/12 31.176%
104 2/25/07 15.934% 134 8/25/09 18.845% 164 2/25/12 32.247%
105 3/25/07 17.700% 135 9/25/09 19.017% 165 3/25/12 35.733%
106 4/25/07 16.043% 136 10/25/09 19.837% 166 4/25/12 34.735%
107 5/25/07 16.638% 137 11/25/09 19.386% 167 5/25/12 37.397%
108 6/25/07 16.161% 138 12/25/09 20.237% 168 6/25/12 37.820%
109 7/25/07 16.763% 139 1/25/10 19.791% 169 7/25/12 40.977%
110 8/25/07 16.286% 140 2/25/10 20.009% 170 8/25/12 41.737%
111 9/25/07 16.353% 141 3/25/10 22.407% 171 9/25/12 44.120%
112 10/25/07 16.969% 142 4/25/10 20.480% 172 10/25/12 48.432%
113 11/25/07 16.493% 143 5/25/10 21.425% 173 11/25/12 50.080%
114 12/25/07 17.119% 144 6/25/10 21.001% 174 12/25/12 55.670%
115 1/25/08 16.643% 145 7/25/10 21.993% 175 1/25/13 58.425%
116 2/25/08 16.723% 146 8/25/10 21.581% 176 2/25/13 63.983%
117 3/25/08 17.964% 147 9/25/10 21.896% 177 3/25/13 78.519%
118 4/25/08 16.891% 148 10/25/10 22.971% 178 4/25/13 79.820%
119 5/25/08 17.546% 149 11/25/10 22.584% 179 5/25/13 102.211%
120 6/25/08 17.072% 150 12/25/10 23.725% 180 6/25/13 118.378%
181 7/25/13 157.113%
182 8/25/13 209.287%
183 9/25/13 336.418%
184 10/25/13 925.893%
</TABLE>
**Available Funds Cap Assuming that Six Month LIBOR immediately rises above
Ceilings of Collateral @ Pricing Speed of 27 CPR/25 HEP. The calculation of
Available Funds Cap Rate is based on the definition provided on p. 5 of the
marketing memorandum.
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the offering circular supplement.
