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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) December 1, 1998
Residential Asset Funding Corporation.
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(Exact name of registrant as specified in its charter)
North Carolina 333-64775 56-2064715
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(State or Other Jurisdiction of (Commission File (I.R.S. Employer
Incorporation) Number) Identification No.)
301 South College Street, TW-06
Charlotte, North Carolina 28202-6001
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(Address of Principal Executive (Zip Code)
Offices)
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. Mortgage Loan
Trust 1998-2, Asset Backed Notes, Series 1998-2 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.
RESIDENTIAL ASSET FUNDING CORPORATION
as Depositor and on behalf of RBMG Funding Co.
Mortgage Loan Trust 1998-2
Registrant
By: /s/ Carolyn Eskeridge
___________________________________________
Name: Carolyn Eskeridge
Title: Assistant Vice President
Dated: December 8, 1998
3
<PAGE>
EXHIBIT INDEX
-------------
Exhibit No. Description
- - ----------- -----------
Related Computational Materials (as defined in Item
99.1 5 above).
EXHIBIT 99.1
------------
<PAGE>
MARKETING MEMORANDUM
12/01/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2
$107,500,000 CLASS A-1, ASSET BACKED NOTES, SERIES 1998-2
$62,500,000 CLASS A-2, ASSET BACKED NOTES, SERIES 1998-2
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 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. Actual experience may dramatically affect
such yields or weighted average lives. The principal amount and designation of
any security described in the Marketing Memorandum are subject to change prior
to issuance.
Although a registration statement (including the prospectus) relating to the
Notes has been filed with the Securities and Exchange Commission and is
effective, the final prospectus supplement relating to the 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 the 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 the Notes.
If you have received this communication in error, please notify the sending
party immediately by telephone and return the original to such party by mail.
First Union(R) logo appears here.
FIRST UNION CAPITAL MARKETS
a division of Wheat First Securities, Inc.
SUMMARY OF TERMS
- - ----------------
$107,500,000 CLASS A-1, Asset Backed Notes, Series 1998-2 (the "Class A-1
Notes")
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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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 2
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$62,500,000 CLASS A-2, Asset Backed Notes, Series 1998-2 (the "Class A-2 Notes")
ISSUER: RBMG Funding Co. Mortgage Loan Trust 1998-2.
COLLATERAL: Adjustable rate and fixed rate mortgage loans and
related Pre-Funding Accounts.
SELLER: Resource Bancshares Mortgage Group, Inc.
SERVICER: Resource Bancshares Mortgage Group, Inc. or "RBMG".
SUB-SERVICER: Ocwen Federal Bank FSB.
SECURITIES OFFERED:
SECURITIES CLASS A-1 CLASS A-2
Amount: $107,500,000 $62,500,000
Security Type: Floating-rate Floating-rate
Cut-Off Date: December 1, 1998 December 1, 1998
Index: One month LIBOR One month LIBOR
Prepayment 100% PPA equals 100% PPA equals
Assumptions (PPA): 27% CPR for 27% CPR for
Adjustable Rate Pool Adjustable Rate Pool
25% HEP for Fixed 25% HEP for Fixed
Rate Pool Rate Pool
Average Life to Call: 2.806 years 2.793 years
Average Life to
Maturity: 3.052 years 3.036 years
Expected Call Date: 02/25/06 02/25/06
Expected Maturity
Date: 03/25/14 02/25/14
Expected Coupon: One month LIBOR + TBD One month LIBOR + TBD
Stated Maturity Date: 04/25/30 04/25/30
Payment Date: 25th of each month 25th of each month
Payment Delay: Zero Zero
Dated Date: Settlement Date Settlement Date
Day Count: Actual/360 Actual/360
Pricing Date: TBD TBD
Settlement Date
(Expected) December 11, 1998 December 11, 1998
First Payment Date January 25, 1999 January 25, 1999
Ratings (S&P/Moody's) AAA/Aaa AAA/Aaa
DESCRIPTION OF THE NOTES: The Notes will be secured by the Trust created by
the Indenture. The assets of the Trust will consist
primarily of (i) a pool of two groups (each a "Group")
of fixed rate and adjustable rate mortgage loans (the
"Mortgage Loans"); (ii) all payments in respect of
principal and interest on the Mortgage Loans (other
than any principal or interest payments due on or
prior to the applicable Cut-off
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 3
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Date); (iii) segregated accounts established by the
Issuer in the name of the Indenture Trustee (each, a
"Pre-Funding Account") and funds on deposit therein;
(iv) the Issuer's rights under the Depositor Sale
Agreement and the Servicing Agreement; (v) the rights
of the Indenture Trustee under the Insurance Policy;
and (vi) certain other property.
Two classes (each, a "Class") of Notes will be issued.
The Class A-1 Notes will be secured by Mortgage Loans
in Group I ("the Group I Mortgage Loans") and the
Class A-2 Notes will be secured by the Group II
Mortgage Loans ("the Group II Mortgage Loans").
Payments on the Class A-1 Notes are from Available
Funds for Group I and payments on the Class A-2 Notes
are from Available Funds for Group II.
SERVICING FEE: 44 basis points per annum
INDENTURE TRUSTEE: The Bank of New York, a New York banking corporation.
OWNER TRUSTEE: Wilmington Trust Company, a Delaware Banking
corporation.
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 Corporation ("MBIA"), rated AAA/Aaa/AAA
by S&P, Moody's and Fitch.
NOTE INSURANCE POLICY: Timely payment of interest and ultimate payment of
principal on the Notes will be guaranteed by MBIA.
CREDIT ENHANCEMENT: (a) Excess servicing cash flows
(b) Overcollateralization
(c) Note Insurance Policy
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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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 4
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PAYMENTS ON THE NOTES: Payments on each Class of 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, each Class of Notes, as of the
immediately preceding Record Date, will be entitled to
payments in respect of principal and interest from
Available Funds for such Payment Date, together with any
payments received under the Insurance Policy.
DUE PERIOD: With respect to each Class of Notes and 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 each Class of Notes and any Payment Date
of a Mortgage Loan, the calendar month preceding the
month in which such Payment Date occurs.
AVAILABLE FUNDS: With respect to each Group of Mortgage Loans and any
Payment Date, The Available Funds 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 Mortgage
Loans and due during the related Due Period and
(b) all unscheduled principal payments or
recoveries on the Mortgage 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 Mortgage Loans and
certain other amounts for which the Indenture
Trustee, the 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 Mortgage Loans during
the related Collection Period or amounts deposited
in the Note Account in connection with the
redemption of the Notes.
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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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 5
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INTEREST CARRY-FORWARD: (a) If, on any Payment Date, the Available Funds
Cap Rate (as defined below) for the related Class
of Notes limits the payment of the full interest
rate on the related Class, the amount of any such
shortfall will be carried forward and be due and
payable to the Noteholder of the related Class 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.
(c) The Note Insurer (MBIA) does not cover the
Available Funds Cap Carry Forward Amount.
AVAILABLE FUNDS CAP
RATE: The Available Funds Cap Rate with respect to each Class
of Notes 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 Mortgage loans and REO properties in the
related Group times the weighted average of the Expense
Adjusted Coupon Rates on the then outstanding Mortgage
loans and REO properties in such Group minus (B) the
amount of the Note Insurer premium for such payment date
allocable to such Group, 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.
"Note Balance" with respect to a Class will equal as of
any Payment Date, the Original Note Balance as of the
date of issuance of the Notes less all related Monthly
Principal and Excess Cash paid to the respective
Noteholders on previous Payment Dates.
The Expense Adjusted Coupon Rate on any Mortgage 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 Servicer is the
servicer, the Servicing Fee Rate is equal to 0.44% per
annum; PROVIDED, HOWEVER, that the Servicing Fee Rate
may increase up to 0.50% per annum if it is necessary to
appoint a successor Servicer or a successor
Sub-Servicer.
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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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 6
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PAYMENTS OF PRINCIPAL: On each Payment Date, the Noteholders of a
Class of Notes will be entitled to payments of Monthly
Principal in reduction of the Note Balance.
MONTHLY PRINCIPAL
The Monthly Principal with respect to each Class of
Notes and for any Payment Date will be equal to the
lesser of (a) the excess of related 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 Mortgage Loans in the
related Group and due during the related Due Period and
all other amounts collected, received or otherwise
recovered in respect of principal on such Mortgage Loans
during or in respect of the related Collection Period,
not including Payments Ahead, subject to reduction for
any Overcollateralization Surplus with respect to such
Class and the related Payment Date.
PAYMENTS OF EXCESS
CASH: With respect to each Class of Notes and each Payment
Date on 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 related
Class of Notes in reduction of the Note Balance, up to
the amount necessary for the related
Overcollateralization Amount to equal the applicable
Required Overcollateralization Amount
"Excess Cash" with respect to a Group on any Payment
Date will be equal to Available Funds for such Group and
Payment Date, reduced by the sum of (i) any amounts
payable to the Note Insurer for Insured Payments with
respect to the Group paid on prior Payment Dates and not
yet reimbursed and for any unpaid Note Insurer Premiums
for such Group on prior Payment Dates (in each case with
interest thereon at the Late Payment Rate as defined and
set forth in the Insurance Agreement), (ii) the Note
Interest for the related Note and Payment Date (and to
the extent not covered by Available Funds for the other
Group, such amounts with respect to the other Group),
and (iii) the Monthly Principal for the related Note and
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 for either Group that would otherwise be
paid to the holder(s) of the Residual Interest.
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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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 7
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Any Excess Cash remaining after making required payments
on each Class of 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
Mortgage Loans included in each Group as of the
Settlement Date may not have their first monthly payment
due until the Due Period relating to the April 1999
Payment Date.
OPTIONAL REDEMPTION: Each Class of Notes may be redeemed, in full but not in
part, at the option of the Servicer or the Note Insurer,
on or after the Payment Date on which the related Note
Balance has declined to less than 10% of the outstanding
related Note Balance as of the Settlement Date .
COUPON STEP-UP: If the Class A-1 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 related Available Funds Cap Rate.
If the Class A-2 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 related Available Funds Cap Rate.
INTEREST PERIOD: Interest will accrue on each of the Notes from
Payment Date to Payment Date. For the first Payment
Date, interest will accrue from and including the
closing date to, but not including the first Payment
Date.
PRE-FUNDING ACCOUNTS: The Mortgage Loans in Group I as of the closing date
will have an aggregate principal balance of [$80.8]
million. The Mortgage Loans in Group II as of the
Settlement Date will have an aggregate principal balance
of [$46.9] million. Additional Mortgage loans with
characteristics similar to those of the Mortgage Loans
in Group I and Group II as of the Settlement Date will
be transferred to the Trust during the period ending 90
days from the Settlement Date (the "Funding Period") in
exchange for release of funds from the Pre-Funding
Accounts.
INTEREST COVERAGE
ACCOUNTS: On the Settlement Date, RBMG will deposit in two
segregated accounts, the Interest Coverage Accounts,
cash amounts as required by the Note Insurer to cover
shortfalls in the Note Interest payable on each Class of
Notes attributable to the Pre-Funding feature during the
Funding Period.
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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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 8
- - -------------------------------------------------------------------------------
MANDATORY PREPAYMENT: Each Class of Notes will be prepaid on the Payment Date
in April 1999 to the extent that amounts remain on
deposit in the related Pre-Funding Account at the end of
the Funding Period. The Note Balance of each Class of
Notes will be reduced by an amount equal to the lesser
of (i) the amount then on deposit in the related
Pre-Funding Account and (ii) the outstanding Note
Balance of the related Class of Notes. Although no
assurance is given, it is anticipated by the Issuer that
the principal amount of Additional Mortgage Loans
purchased by the Issuer and pledged to the Indenture
Trustee for the related Class of Notes will require the
application of substantially all of the related amounts
initially deposited in each Pre-Funding Account on the
Settlement Date and that there should be no material
amount of principal prepaid on the each Class of Notes
from amounts in the related Pre-Funding Account.
COMPENSATING INTEREST
PAYMENTS: With respect to any Mortgage Loan in each Group as to
which a prepayment in whole or in part was received
during the related Collection Period, the Sub-Servicer
on behalf of the Servicer will be required to remit to
the Indenture Trustee, up to the amount otherwise
payable to the Sub-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 Mortgage Loan is available for payment to the
related Noteholders on the applicable Payment Date.
Compensating Interest Payments are not reimbursable to
the Servicer or the Sub-Servicer. The Note Insurer is
not required to cover any Prepayment Interest
Shortfalls.
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:
Bill Ingram at (704) 383-7727, Capital Markets Syndicate
Desk
Russ Andrews at (704) 374-3472, Debt Capital Markets
- - --------------------------------------------------------------------------------
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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 9
- - -------------------------------------------------------------------------------
WEIGHTED AVERAGE LIFE (WAL) AND
PAYMENT WINDOWS TABLE
----------------------------------------------------------------------
TO CALL (10%)
PPA* 0 75 100 125 150 175
CLASS A1 NOTE
WAL 20.621 3.775 2.806 2.208 1.799 1.496
FIRST PAY 1/25/99 1/25/99 1/25/99 1/25/99 1/25/99 1/25/99
LAST PAY 12/25/27 09/25/08 02/25/06 07/25/04 06/25/03 08/25/02
CLASS A2 NOTE
WAL 20.505 3.753 2.793 2.196 1.788 1.485
FIRST PAY 1/25/99 1/25/99 1/25/99 1/25/99 1/25/99 1/25/99
LAST PAY 12/25/27 08/25/08 02/25/06 07/25/04 06/25/03 08/25/02
TO MATURITY
PPA* 0 75 100 125 150 175
CLASS A1 NOTE
WAL 20.666 4.102 3.052 2.397 1.949 1.621
FIRST PAY 1/25/99 1/25/99 1/25/99 1/25/99 1/25/99 1/25/99
LAST PAY 12/25/28 03/25/19 03/25/14 11/25/10 07/25/08 10/25/06
CLASS A2 NOTE
WAL 20.549 4.082 3.036 2.382 1.934 1.607
FIRST PAY 1/25/99 1/25/99 1/25/99 1/25/99 1/25/99 1/25/99
LAST PAY 12/25/28 01/25/19 02/25/14 11/25/10 06/25/08 10/25/06
-----------------------------------------------------------------------
*100 PERCENT PREPAYMENT ASSUMPTION (PPA) REPRESENTS 27% CPR FOR THE ARM
COLLATERAL, AND 25% HEP FOR THE FIXED COLLATERAL. 25% HEP EQUALS 2.5% CPR
IN MONTH 1 OF THE LIFE OF A LOAN, INCREASING EACH MONTH BY 2.5% CPR UNTIL
MONTH 10 AND REMAINING CONSTANT AT 25% CPR THEREAFTER.
- - --------------------------------------------------------------------------------
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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 10
- - -------------------------------------------------------------------------------
CLASS A-1 AVAILABLE FUNDS CAP
RATE
TO CALL (10%)
6 MONTH LIBOR = 5.12750%
PERIOD DATE CLASS A1 NOTE PERIOD DATE CLASS A1 NOTE
0 Dec-98
1 Jan-99 * 44 Aug-02 11.0490%
2 Feb-99 7.9891% 45 Sep-02 11.0486%
3 Mar-99 8.6919% 46 Oct-02 11.4166%
4 Apr-99 8.8771% 47 Nov-02 11.0479%
5 May-99 9.2022% 48 Dec-02 11.4158%
6 Jun-99 8.9681% 49 Jan-03 11.0472%
7 Jul-99 9.3103% 50 Feb-03 11.0469%
8 Aug-99 9.0429% 51 Mar-03 12.2301%
9 Sep-99 9.0753% 52 Apr-03 11.0462%
10 Oct-99 9.4127% 53 May-03 11.4141%
11 Nov-99 9.1455% 54 Jun-03 11.0455%
12 Dec-99 9.5004% 55 Jul-03 11.4133%
13 Jan-00 8.7357% 56 Aug-03 11.0448%
14 Feb-00 8.7732% 57 Sep-03 11.0445%
15 Mar-00 9.4198% 58 Oct-03 11.4123%
16 Apr-00 8.8556% 59 Nov-03 11.0438%
17 May-00 9.1945% 60 Dec-03 11.4115%
18 Jun-00 8.9435% 61 Jan-04 11.0431%
19 Jul-00 9.2892% 62 Feb-04 11.0427%
20 Aug-00 9.0391% 63 Mar-04 11.8039%
21 Sep-00 9.0892% 64 Apr-04 11.0420%
22 Oct-00 9.4462% 65 May-04 11.4097%
23 Nov-00 9.1936% 66 Jun-04 11.0413%
24 Dec-00 10.8247% 67 Jul-04 11.4090%
25 Jan-01 10.9532% 68 Aug-04 11.0406%
26 Feb-01 10.9814% 69 Sep-04 11.0403%
27 Mar-01 12.1902% 70 Oct-04 11.4079%
28 Apr-01 11.0406% 71 Nov-04 11.0396%
29 May-01 11.4407% 72 Dec-04 11.4072%
30 Jun-01 11.1038% 73 Jan-05 11.0389%
31 Jul-01 11.5082% 74 Feb-05 11.0385%
32 Aug-01 11.0531% 75 Mar-05 12.2208%
33 Sep-01 11.0528% 76 Apr-05 11.0378%
34 Oct-01 11.4208% 77 May-05 11.4054%
35 Nov-01 11.0521% 78 Jun-05 11.0371%
36 Dec-01 11.4201% 79 Jul-05 11.4046%
37 Jan-02 11.0514% 80 Aug-05 11.0364%
38 Feb-02 11.0510% 81 Sep-05 11.0360%
39 Mar-02 12.2347% 82 Oct-05 11.4035%
40 Apr-02 11.0504% 83 Nov-05 11.0353%
41 May-02 11.4183% 84 Dec-05 11.4028%
42 Jun-02 11.0497% 85 Jan-06 11.0346%
43 Jul-02 11.4176% 86 Feb-06 11.0343%
* The Available Funds Cap Rate is not applicable for the first period as RBMG
will deposit sufficient funds in the Interest Coverage Account to pay the
interest payment on the Notes for the first period.
- - --------------------------------------------------------------------------------
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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 11
- - -------------------------------------------------------------------------------
CLASS A-2 AVAILABLE FUNDS CAP RATE
TO CALL (10%)
6 MONTH LIBOR = 5.12750%
PERIOD DATE CLASS A2 NOTE PERIOD DATE CLASS A2 NOTE
0 Dec-98
1 Jan-99 * 44 Aug-02 11.0987%
2 Feb-99 7.9881% 45 Sep-02 11.0984%
3 Mar-99 8.6891% 46 Oct-02 11.4681%
4 Apr-99 8.8807% 47 Nov-02 11.0979%
5 May-99 9.2056% 48 Dec-02 11.4675%
6 Jun-99 8.9794% 49 Jan-03 11.0973%
7 Jul-99 9.3251% 50 Feb-03 11.0970%
8 Aug-99 9.0572% 51 Mar-03 12.2857%
9 Sep-99 9.0897% 52 Apr-03 11.0964%
10 Oct-99 9.4277% 53 May-03 11.4660%
11 Nov-99 9.1602% 54 Jun-03 11.0959%
12 Dec-99 9.5145% 55 Jul-03 11.4654%
13 Jan-00 8.7490% 56 Aug-03 11.0953%
14 Feb-00 8.7866% 57 Sep-03 11.0950%
15 Mar-00 9.4344% 58 Oct-03 11.4645%
16 Apr-00 8.8694% 59 Nov-03 11.0944%
17 May-00 9.2091% 60 Dec-03 11.4640%
18 Jun-00 8.9578% 61 Jan-04 11.0939%
19 Jul-00 9.3043% 62 Feb-04 11.0936%
20 Aug-00 9.0539% 63 Mar-04 11.8583%
21 Sep-00 9.1043% 64 Apr-04 11.0930%
22 Oct-00 9.4621% 65 May-04 11.4625%
23 Nov-00 9.2095% 66 Jun-04 11.0924%
24 Dec-00 10.8673% 67 Jul-04 11.4619%
25 Jan-01 11.0063% 68 Aug-04 11.0918%
26 Feb-01 11.0350% 69 Sep-04 11.0916%
27 Mar-01 12.2500% 70 Oct-04 11.4610%
28 Apr-01 11.0951% 71 Nov-04 11.0910%
29 May-01 11.4975% 72 Dec-04 11.4604%
30 Jun-01 11.1591% 73 Jan-05 11.0904%
31 Jul-01 11.5659% 74 Feb-05 11.0901%
32 Aug-01 11.1021% 75 Mar-05 12.2780%
33 Sep-01 11.1018% 76 Apr-05 11.0895%
34 Oct-01 11.4716% 77 May-05 11.4589%
35 Nov-01 11.1013% 78 Jun-05 11.0890%
36 Dec-01 11.4710% 79 Jul-05 11.4583%
37 Jan-02 11.1007% 80 Aug-05 11.0884%
38 Feb-02 11.1004% 81 Sep-05 11.0881%
39 Mar-02 12.2894% 82 Oct-05 11.4574%
40 Apr-02 11.0998% 83 Nov-05 11.0875%
41 May-02 11.4695% 84 Dec-05 11.4568%
42 Jun-02 11.0993% 85 Jan-06 11.0869%
43 Jul-02 11.4690% 86 Feb-06 11.0867%
* The Available Funds Cap Rate is not applicable for the first period as RBMG
will deposit sufficient funds in the Interest Coverage Account to pay the
interest payment on the Notes for the first period.
- - --------------------------------------------------------------------------------
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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 12
- - -------------------------------------------------------------------------------
Summary of Characteristics of the Group I Initial Mortgage Loans
Number of Initial Mortgage
Loans 795
Principal Balance
Aggregate Principal Balance $80,828,128.21
Average Principal Balance $101,670.60
Range of Principal Balances $21,688.50 - $225,369.56
Coupon Rates
Weighted Average Coupon
Rate 9.724%
Range of Coupon Rates 7.750% - 14.250%
Remaining Term to Maturity
Weighted Average Remaining Term to
Maturity 353.08 months
Range of Remaining Term to
Maturity 177 - 360 months
Loan-to-Value Ratio
Weighted Average Loan-to-Value Ratio 77.61%
Range of Loan-to-Value Ratios 18.57% - 100.00%
Percentage of First Lien Mortgage
Loans 100.00%
- - --------------------------------------------------------------------------------
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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 13
- - -------------------------------------------------------------------------------
Summary of Characteristics of the Group II Initial Mortgage Loans
Number of Initial Mortgage
Loans 333
Principal Balance
Aggregate Principal Balance $46,926,742.48
Average Principal Balance $140,921.15
Range of Principal Balances $18,779.13 - $599,407.40
Coupon Rates
Weighted Average Coupon Rate 9.729%
Range of Coupon Rates 7.125% - 13.750%
Remaining Term to Maturity
Weighted Average Remaining Term to
Maturity 350.11 months
Range of Remaining Term to Maturity 176 - 360 months
Loan-to-Value Ratio
Weighted Average Loan-to-Value Ratio 78.24%
Range of Loan-to-Value Ratios 33.46% - 90.00%
Percentage of First Lien Mortgage Loans 100.00%
- - --------------------------------------------------------------------------------
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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 14
- - -------------------------------------------------------------------------------
Group II Initial Adjustable Rate Loans
All Adjustable Rate Loans
-------------------------
Number of Adjustable Rate
Loans 277
Percentage of All Mortgage Loans 83.18%
(by number of loans)
Aggregate Principal Balance $41,924,524.32
Percentage of All Mortgage Loans 89.34%
(by aggregate principal balance)
Average Principal Balance as of the
Cut-Off Date
Average $151,352.07
Range $18,779.13 - $599,407.40
Coupon Rates
Weighted Average 9.651%
Range 7.125% - 13.750%
Remaining Term to Maturity
(in months)
Weighted Average 358.07
Range 352 - 360
Loan-to-Value Ratio at Origination
Weighted Average 78.68%
Range 34.62% - 90.00%
- - --------------------------------------------------------------------------------
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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 15
- - -------------------------------------------------------------------------------
Group II Initial Fixed Rate Loans
All Fixed Rate Loans
-----------------------
Number of Fixed Rate Loans 56
Percentage of All Mortgage Loans 16.82%
(by number of loans)
Aggregate Principal Balance $5,002,218.16
Percentage of All Mortgage Loans 10.66%
(by aggregate principal
balance)
Average Principal Balance as of the
Cut-Off Date
Average $89,325.32
Range $24,943.72 - $307,387.33
Coupon Rates
Weighted Average 10.375%
Range 7.750% - 12.999%
Remaining Term to Maturity
(in months)
Weighted Average 283.42
Range 176 - 359
Loan-to-Value Ratio at Origination
Weighted Average 74.49%
Range 33.46% - 90.00%
- - --------------------------------------------------------------------------------
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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 16
- - -------------------------------------------------------------------------------
MORTGAGE RATES OF THE GROUP II INITIAL FIXED RATE LOANS
<TABLE>
<CAPTION>
Percentage of
Group II Fixed
Rate Loans by
Number of Aggregate
Range of Mortgage Rates Fixed Rate Aggregate Principal Principal
(%) Loans Balance Balance
- - ------------------------ ---------- ------------------- ---------------
<S> <C> <C> <C>
7.501 - 8.000 1 121,657.42 2.43 %
8.501 - 9.000 3 631,501.52 12.62
9.001 - 9.500 5 457,052.84 9.14
9.501 - 10.000 6 647,513.20 12.94
10.001 - 10.500 11 660,151.29 13.20
10.501 - 11.000 10 1,279,752.43 25.58
11.001 - 11.500 9 586,063.53 11.72
11.501 - 12.000 6 413,358.19 8.26
12.001 - 12.500 4 168,776.07 3.37
12.501 - 13.000 1 36,391.67 0.73
- ------------- ----
Totals 56 $5,002,218.16 100.00 %
== ============= ======
PRINCIPAL BALANCES OF THE GROUP II INITIAL FIXED RATE LOANS
Percentage of
Group II Fixed
Rate Loans by
Number of Aggregate
Range of Principal Fixed Rate Aggregate Principal Principal
Balances ($) Loans Balance Balance
- - ----------------------- ----------- -------------------- ---------------
15,000.01 - 25,000.00 2 49,936.75 1.00 %
25,000.01 - 50,000.00 17 634,514.73 12.68
50,000.01 - 75,000.00 10 592,644.00 11.85
75,000.01 - 100,000.00 12 1,044,744.61 20.89
100,000.01 - 125,000.00 6 701,319.91 14.02
125,000.01 - 150,000.00 2 290,311.89 5.80
175,000.01 - 200,000.00 1 187,832.96 3.75
200,000.01 - 225,000.00 1 212,339.27 4.24
225,000.01 - 250,000.00 2 470,615.57 9.41
250,000.01 - 275,000.00 2 510,571.14 10.21
300,000.01 - 325,000.00 1 307,387.33 6.15
- ---------- ----
Totals 56 $5,002,218.16 100.00 %
== ============= ======
</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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 17
- - -------------------------------------------------------------------------------
REMAINING TERMS TO MATURITY OF THE GROUP II INITIAL FIXED RATE LOANS
<TABLE>
<CAPTION>
Percentage of
Group II Fixed
Rate Loans by
Number of Aggregate
Fixed Rate Aggregate Principal Principal
Remaining Term (months) Loans Balance Balance
- - ------------------------- ----------- --------------------- --------------
<S> <C> <C> <C>
176 - 180 27 2,052,515.25 41.03 %
326 - 330 1 121,657.42 2.43
351 - 355 2 158,452.72 3.17
357 6 823,810.31 16.47
358 9 706,497.16 14.12
359 11 1,139,285.30 22.78
-- ------------ -----
Totals 56 $5,002,218.16 100.00 %
== ============= ======
MORTGAGE RATES OF THE GROUP II INITIAL ADJUSTABLE RATE LOANS
Percentage of
Group II
Adjustable
Rate Loans by
Number of Aggregate
Range of Mortgage Rates Adjustable Aggregate Principal Principal
(%) Rate Loans Balance Balance
- - ----------------------- ----------- -------------------- --------------
7.001 - 7.500 1 314,444.78 0.75 %
7.501 - 8.000 5 753,523.31 1.80
8.001 - 8.500 19 4,602,224.65 10.98
8.501 - 9.000 44 7,507,501.34 17.91
9.001 - 9.500 43 6,623,633.30 15.80
9.501 - 10.000 54 9,236,016.34 22.03
10.001 - 10.500 54 6,616,478.66 15.78
10.501 - 11.000 27 3,123,085.59 7.45
11.001 - 11.500 15 1,600,202.43 3.82
11.501 - 12.000 9 1,215,546.42 2.90
12.001 - 12.500 3 165,307.86 0.39
12.501 - 13.000 2 78,611.28 0.19
13.501 - 14.000 1 87,948.36 0.21
- --------- ----
Totals 277 $41,924,524.32 100.00 %
=== ============== ======
</TABLE>
- - --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 18
- - -------------------------------------------------------------------------------
PRINCIPAL BALANCES OF THE GROUP II INITIAL ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
Percentage of
Group II
Adjustable Rate
Loans by
Number of Aggregate
Range of Principal Adjustable Aggregate Principal Principal
Balances ($) Rate Loans Balance Balance
- - ---------------------- ------------ ------------------- ---------------
<S> <C> <C> <C>
15,000.01 - 25,000.00 3 60,736.44 0.14 %
25,000.01 - 50,000.00 26 1,070,471.73 2.55
50,000.01 - 75,000.00 44 2,803,487.55 6.69
75,000.01 - 100,000.00 52 4,655,962.55 11.11
100,000.01 - 125,000.00 41 4,528,718.31 10.80
125,000.01 - 150,000.00 16 2,168,991.45 5.17
150,000.01 - 175,000.00 6 949,571.05 2.26
175,000.01 - 200,000.00 6 1,123,705.11 2.68
200,000.01 - 225,000.00 4 865,388.75 2.06
225,000.01 - 250,000.00 21 4,972,699.30 11.86
250,000.01 - 275,000.00 19 4,951,780.22 11.81
275,000.01 - 300,000.00 12 3,455,896.51 8.24
300,000.01 - 325,000.00 6 1,883,673.15 4.49
325,000.01 - 350,000.00 6 2,011,738.20 4.80
350,000.01 - 375,000.00 2 710,570.18 1.69
375,000.01 - 400,000.00 8 3,157,032.02 7.53
425,000.01 - 450,000.00 1 434,807.52 1.04
475,000.01 - 500,000.00 2 965,119.62 2.30
550,000.01 - 575,000.00 1 554,767.26 1.32
575,000.01 - 600,000.00 1 599,407.40 1.43
- ---------- ----
Totals 277 $41,924,524.32 100.00 %
=== ============== ======
</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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 19
- - -------------------------------------------------------------------------------
REMAINING TERMS TO MATURITY OF THE GROUP II INITIAL ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
Percentage of
Group II
Adjustable Rate
Loans by
Number of Aggregate
Adjustable Aggregate Principal Principal
Remaining Term (months) Rate Loans Balance Balance
----------------------- ----------- ------- -------
<S> <C> <C> <C>
351 - 355 1 475,258.51 1.13 %
356 6 807,686.99 1.93
357 72 8,969,393.50 21.39
358 105 15,751,660.20 37.57
359 91 15,612,525.12 37.24
360 2 308,000.00 0.73
- ---------- ----
Totals 277 $41,924,524.32 100.00 %
=== ============== ======
GROSS MARGINS OF THE GROUP II INITIAL ADJUSTABLE RATE LOANS
Percentage of
Group II
Adjustable Rate
Loans by
Number of Aggregate
Range of Gross Margins Adjustable Aggregate Principal Principal
(%) Rate Loans Balance Balance
---------------------- ---------- ------------------ ---------------
4.501 - 5.000 1 314,444.78 0.75 %
5.001 - 5.500 11 1,935,341.02 4.62
5.501 - 6.000 35 6,488,211.24 15.48
6.001 - 6.500 86 13,711,596.28 32.71
6.501 - 7.000 90 12,541,138.23 29.91
7.001 - 7.500 48 6,656,956.27 15.88
7.501 - 8.000 3 121,925.39 0.29
8.001 - 8.500 1 87,948.36 0.21
8.501 - 9.000 2 66,962.75 0.16
- --------- ----
Totals 277 $41,924,524.32 100.00 %
=== ============== ======
</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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 20
- - -------------------------------------------------------------------------------
MAXIMUM RATES OF THE GROUP II INITIAL ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
Percentage of
Group II
Adjustable Rate
Loans by
Number of Aggregate
Range of Maximum Rates Adjustable Aggregate Principal Principal
(%) Rate Loans Balance Balance
- - ------------------------ ----------- ------------------- --------------
<S> <C> <C> <C>
14.001 - 14.500 1 314,444.78 0.75 %
14.501 - 15.000 5 753,523.31 1.80
15.001 - 15.500 19 4,602,224.65 10.98
15.501 - 16.000 44 7,507,501.34 17.91
16.001 - 16.500 43 6,623,633.30 15.80
16.501 - 17.000 54 9,236,016.34 22.03
17.001 - 17.500 54 6,616,478.66 15.78
17.501 - 18.000 27 3,123,085.59 7.45
18.001 - 18.500 15 1,600,202.43 3.82
18.501 - 19.000 9 1,215,546.42 2.90
19.001 - 19.500 3 165,307.86 0.39
19.501 - 20.000 2 78,611.28 0.19
20.501 - 21.000 1 87,948.36 0.21
- --------- ----
Totals 277 $41,924,524.32 100.00 %
=== ============== ======
MINIMUM RATES OF THE GROUP II INITIAL ADJUSTABLE RATE LOANS
Percentage of
Group II
Adjustable Rate
Loans by
Number of Aggregate
Range of Minimum Rates Adjustable Aggregate Principal Principal
(%) Rate Loans Balance Balance
- - ------------------------ ------------ -------------------- ----------------
7.001 - 7.500 1 314,444.78 0.75 %
7.501 - 8.000 5 753,523.31 1.80
8.001 - 8.500 19 4,602,224.65 10.98
8.501 - 9.000 44 7,507,501.34 17.91
9.001 - 9.500 43 6,623,633.30 15.80
9.501 - 10.000 54 9,236,016.34 22.03
10.001 - 10.500 54 6,616,478.66 15.78
10.501 - 11.000 27 3,123,085.59 7.45
11.001 - 11.500 15 1,600,202.43 3.82
11.501 - 12.000 9 1,215,546.42 2.90
12.001 - 12.500 3 165,307.86 0.39
12.501 - 13.000 2 78,611.28 0.19
13.501 - 14.000 1 87,948.36 0.21
- --------- ----
Totals 277 $41,924,524.32 100.00 %
=== ============== ======
</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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 21
- - -------------------------------------------------------------------------------
NEXT INTEREST ADJUSTMENT DATE OF THE GROUP II INITIAL ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
Percentage of
Group II
Adjustable Rate
Loans by
Number of Aggregate
Adjustable Aggregate Principal Principal
Next Adjustment Date Rate Loans Balance Balance
- - ----------------------- ---------- --------------------- --------------
<S> <C> <C> <C>
04/01/99 4 845,419.85 2.02 %
05/01/99 5 839,131.04 2.00
06/01/99 1 84,954.76 0.20
08/01/00 6 807,686.99 1.93
09/01/00 58 7,358,330.01 17.55
10/01/00 26 2,922,664.90 6.97
11/01/00 96 14,425,631.30 34.41
12/01/00 81 14,640,705.47 34.92
-- ------------- -----
Totals 277 $41,924,524.32 100.00 %
=== ============== ======
MORTGAGE RATES OF ALL THE GROUP II INITIAL MORTGAGE LOANS
Percentage of
Group II
Mortgage Loans
by Aggregate
Range of Mortgage Rates Number of Aggregate Principal Principal
(%) Mortgage Loans Balance Balance
- - ----------------------- -------------- ------------------- --------------
7.001 - 7.500 1 314,444.78 0.67 %
7.501 - 8.000 6 875,180.73 1.86
8.001 - 8.500 19 4,602,224.65 9.81
8.501 - 9.000 47 8,139,002.86 17.34
9.001 - 9.500 48 7,080,686.14 15.09
9.501 - 10.000 60 9,883,529.54 21.06
10.001 - 10.500 65 7,276,629.95 15.51
10.501 - 11.000 37 4,402,838.02 9.38
11.001 - 11.500 24 2,186,265.96 4.66
11.501 - 12.000 15 1,628,904.61 3.47
12.001 - 12.500 7 334,083.93 0.71
12.501 - 13.000 3 115,002.95 0.25
13.501 - 14.000 1 87,948.36 0.19
- --------- ----
Totals 333 $46,926,742.48 100.00 %
=== ============== ======
</TABLE>
- - --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 22
- - -------------------------------------------------------------------------------
PRINCIPAL BALANCES OF ALL THE GROUP II INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of
Group II
Mortgage Loans
by Aggregate
Range of Principal Number of Aggregate Principal Principal
Balances ($) Mortgage Loans Balance Balance
- - ----------------------- ------------- ------------------- --------------
<S> <C> <C> <C>
15,000.01 - 25,000.00 5 110,673.19 0.24 %
25,000.01 - 50,000.00 43 1,704,986.46 3.63
50,000.01 - 75,000.00 54 3,396,131.55 7.24
75,000.01 - 100,000.00 64 5,700,707.16 12.15
100,000.01 - 125,000.00 47 5,230,038.22 11.15
125,000.01 - 150,000.00 18 2,459,303.34 5.24
150,000.01 - 175,000.00 6 949,571.05 2.02
175,000.01 - 200,000.00 7 1,311,538.07 2.79
200,000.01 - 225,000.00 5 1,077,728.02 2.30
225,000.01 - 250,000.00 23 5,443,314.87 11.60
250,000.01 - 275,000.00 21 5,462,351.36 11.64
275,000.01 - 300,000.00 12 3,455,896.51 7.36
300,000.01 - 325,000.00 7 2,191,060.48 4.67
325,000.01 - 350,000.00 6 2,011,738.20 4.29
350,000.01 - 375,000.00 2 710,570.18 1.51
375,000.01 - 400,000.00 8 3,157,032.02 6.73
425,000.01 - 450,000.00 1 434,807.52 0.93
475,000.01 - 500,000.00 2 965,119.62 2.06
550,000.01 - 575,000.00 1 554,767.26 1.18
575,000.01 - 600,000.00 1 599,407.40 1.28
- ---------- ----
Totals 333 $46,926,742.48 100.00 %
=== ============== ======
RISK CLASSIFICATIONS OF ALL THE GROUP II INITIAL MORTGAGE LOANS
Percentage of
Group II
Mortgage Loans
by Aggregate
Number of Aggregate Principal Principal
Risk Classification Mortgage Loans Balance Balance
------------------- -------------- ------- -------
A 163 27,816,040.31 59.28 %
A- 56 8,645,824.44 18.42
B 76 7,608,545.86 16.21
C 32 2,563,440.62 5.46
D 6 292,891.25 0.62
- ---------- ----
Totals 333 $46,926,742.48 100.00 %
=== ============== ======
</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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 23
- - -------------------------------------------------------------------------------
LOAN TO VALUE RATIOS OF ALL THE GROUP II INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of
Range of Loan-to-Value Number of Aggregate Group II Mortgage
Ratios at Origination Mortgage Principal Loans by Aggregate Weighted
(%) Loans Balance Principal Balance Average LTV
--- ----- ------- ----------------- -----------
<S> <C> <C> <C> <C>
30.01 - 35.00 2 270,062.44 0.58 % 34.43 %
35.01 - 40.00 4 114,800.50 0.24 37.07
40.01 - 45.00 2 99,949.35 0.21 42.39
45.01 - 50.00 6 494,572.46 1.05 48.55
50.01 - 55.00 7 435,324.96 0.93 53.79
55.01 - 60.00 6 283,360.13 0.60 58.55
60.01 - 65.00 20 1,897,505.90 4.04 63.45
65.01 - 70.00 46 4,638,092.08 9.88 69.74
70.01 - 75.00 48 7,302,529.86 15.56 74.65
75.01 - 80.00 106 18,413,954.89 39.24 79.78
80.01 - 85.00 50 6,967,277.97 14.85 84.86
85.01 - 90.00 36 6,009,311.94 12.81 89.90 %
-- ------------ -----
Totals 333 $46,926,742.48 100.00 %
=== ============== ======
REMAINING TERMS TO MATURITY OF ALL THE GROUP II INITIAL MORTGAGE LOANS
Percentage of
Group II
Mortgage Loans
by Aggregate
Number of Aggregate Principal Principal
Remaining Term (months) Mortgage Loans Balance Balance
----------------------- -------------- ------- -------
176 - 180 27 2,052,515.25 4.37 %
326 - 330 1 121,657.42 0.26
351 - 355 3 633,711.23 1.35
356 6 807,686.99 1.72
357 78 9,793,203.81 20.87
358 114 16,458,157.36 35.07
359 102 16,751,810.42 35.70
360 2 308,000.00 0.66
Totals 333 $46,926,742.48 100.00 %
=== ============== ======
</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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 24
- - -------------------------------------------------------------------------------
GEOGRAPHIC DISTRIBUTION OF THE MORTGAGE PROPERTIES OF ALL THE GROUP II INITIAL
MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of
Group II
Mortgage Loans
by Aggregate
Number of Aggregate Principal Principal
State Mortgage Loans Balance Balance
----- -------------- ------- -------
<S> <C> <C> <C>
ALABAMA 29 2,194,831.11 4.68 %
ARIZONA 29 4,116,718.80 8.77
CALIFORNIA 52 14,777,132.15 31.49
COLORADO 32 4,425,809.94 9.43
FLORIDA 8 733,775.29 1.56
GEORGIA 2 106,124.69 0.23
IDAHO 13 1,279,088.70 2.73
ILLINOIS 25 2,642,664.22 5.63
KANSAS 1 29,976.05 0.06
KENTUCKY 1 104,193.35 0.22
LOUISIANA 1 37,462.94 0.08
MARYLAND 2 394,698.06 0.84
MINNESOTA 10 996,576.21 2.12
MISSOURI 5 334,903.51 0.71
NEVADA 6 580,072.72 1.24
NEW JERSEY 1 251,680.25 0.54
NEW YORK 5 799,933.10 1.70
NORTH CAROLINA 11 1,222,960.83 2.61
OHIO 7 360,952.27 0.77
OKLAHOMA 1 37,480.16 0.08
OREGON 33 4,267,197.60 9.09
PENNSYLVANIA 2 123,494.72 0.26
SOUTH CAROLINA 1 32,483.73 0.07
TENNESSEE 7 462,107.85 0.98
TEXAS 8 930,038.08 1.98
UTAH 7 942,669.18 2.01
VIRGINIA 1 229,282.78 0.49
WASHINGTON 27 3,534,377.19 7.53
WEST VIRGINIA 1 55,978.87 0.12
WISCONSIN 3 423,926.78 0.90
WYOMING 2 498,151.35 1.06
- ---------- ----
Totals 333 $46,926,742.48 100.00 %
=== ============== ======
</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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 25
- - -------------------------------------------------------------------------------
NUMBER OF MONTHS ELAPSED FROM THE DATE OF ORIGINATION OF ALL GROUP II MORTGAGE
LOANS
<TABLE>
<CAPTION>
Percentage of
Group II
Mortgage Loans
by Aggregate
Number of Aggregate Principal Principal
Range of Months Mortgage Loans Balance Balance
--------------- -------------- ------- -------
<S> <C> <C> <C>
0 3 559,888.28 1.19 %
1 128 19,119,625.35 40.74
2 117 16,482,970.58 35.12
3 75 9,403,550.66 20.04
4 - 11 9 1,239,050.19 2.64
24 - 35 1 121,657.42 0.26
- ---------- ----
Totals 333 $46,926,742.48 100.00 %
=== ============== ======
OCCUPANCY STATUS OF THE MORTGAGED PROPERTIES OF ALL THE GROUP II INITIAL MORTGAGE
LOANS
Percentage of
Group II
Mortgage Loans
by Aggregate
Number of Aggregate Principal Principal
Occupancy Status Mortgage Loans Balance Balance
- - --------------------- -------------- -------------------- -------------
Investment 17 1,295,466.86 2.76 %
Owner Occupied 316 45,631,275.62 97.24
--- -------------- ------
Totals 333 $46,926,742.48 100.00 %
=== ============== ======
TYPES OF MORTGAGED PROPERTIES OF ALL THE GROUP II INITIAL MORTGAGE LOANS
Percentage of
Group II
Mortgage Loans
by Aggregate
Number of Aggregate Principal Principal
Property Type Mortgage Loans Balance Balance
------------- -------------- ------- -------
Condo 2 308,103.57 0.66 %
Manufactured Homes 12 896,746.51 1.91
Multi-Family Home 4 580,956.39 1.24
PUD 1 98,569.34 0.21
Single Family Home 314 45,042,366.67 95.98
--- ------------- -----
Totals 333 $46,926,742.48 100.00 %
=== ============== ======
</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 prospectus supplement.
<PAGE>
UPDATED MARKETING MEMORANDUM- 12/1/98 8:00 AM
RBMG FUNDING CO. MORTGAGE LOAN TRUST 1998-2 Page 26
- - -------------------------------------------------------------------------------
USE OF PROCEEDS OF ALL THE GROUP II INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of
Group II
Mortgage Loans
by Aggregate
Number of Aggregate Principal Principal
Use of Proceeds Mortgage Loans Balance Balance
- - -------------------- -------------- ------------------ --------------
<S> <C> <C> <C>
Purchase 164 24,391,888.14 51.98 %
Refi Cash Out 116 15,442,758.28 32.91
Refi Rate/Term 53 7,092,096.06 15.11
--- -------------- ------
Totals 333 $46,926,742.48 100.00 %
=== ============== ======
PROGRAM CLASSIFICATIONS OF ALL THE GROUP II INITIAL MORTGAGE LOANS
Percentage of
Group II
Mortgage Loans
by Aggregate
Number of Aggregate Principal Principal
Documentation Mortgage Loans Balance Balance
------------- -------------- ------- -------
FULL 209 30,969,304.99 66.00 %
LIMITED 6 970,821.91 2.07
Non-Qualifier 49 4,323,810.17 9.21
STATED 69 10,662,805.41 22.72
-- ------------- -----
Totals 333 $46,926,742.48 100.00 %
=== ============== ======
PREPAYMENT PENALTIES WITH RESPECT TO ALL THE GROUP II INITIAL MORTGAGE LOANS
Percentage of
Group II
Mortgage Loans
by Aggregate
Number of Aggregate Principal Principal
Prepayment Penalty Mortgage Loans Balance Balance
------------------ -------------- ------- -------
1 YEAR 102 19,149,840.07 40.81 %
2 YEAR 96 14,438,978.31 30.77
3 YEAR 88 7,862,248.15 16.75
5 YEAR 1 212,339.27 0.45
NONE 46 5,263,336.68 11.22
-- ------------ -----
Totals 333 $46,926,742.48 100.00 %
=== ============== ======
</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 prospectus supplement.
