<PAGE>
SUBJECT TO REVISION
SERIES TERM SHEET DATED September 15, 2000
Approximately
$334,220,000
NovaStar Mortgage, Inc.
NovaStar Home Equity Loan Asset-Backed Certificates, Series 2000-2
DISCLAIMER
Attached is a preliminary Series Term Sheet describing the structure, collateral
pool and certain aspects of the NovaStar Home Equity Loan Asset-Backed
Certificates, Series 2000-2. The Series Term Sheet has been prepared by NovaStar
Mortgage, Inc. for informational purposes only and is subject to modification or
change. The information and assumptions contained therein are preliminary and
will be superseded by a prospectus supplement and by any other additional
information subsequently filed with the Securities and Exchange Commission or
incorporated by reference in the Registration Statement.
First Union Securities, Inc. does not make any representation as to the accuracy
or completeness of any of the information set forth in the attached Series Term
Sheet. This cover sheet is not part of the Series Term Sheet.
A Registration Statement (including a base prospectus) relating to the
Asset-Backed Certificates has been filed with the Securities and Exchange
Commission. The final Prospectus Supplement relating to the securities will be
filed after the securities have been priced and all of the terms and information
are finalized. This communication is not an offer to sell or the solicitation of
an offer to buy nor shall there be any sale of the securities 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. Interested persons
are referred to the final Prospectus and Prospectus Supplement to which the
securities relate. Any investment decision should be based only upon the
information in the final Prospectus and Prospectus Supplement as of their
publication dates.
[LOGO]
FIRST UNION SECURITIES, INC.
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FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 2
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TRANSACTION SUMMARY
<TABLE>
<S> <C>
SELLER/SERVICER: NovaStar Mortgage, Inc. ("NovaStar")
TRANSFEROR: NovaStar Mortgage Funding Corporation III
TRUSTEE: The Chase Manhattan Bank
CERTIFICATE
ADMINISTRATOR: First Union National Bank
DEPOSITOR: Residential Asset Funding Corporation
UNDERWRITER: First Union Securities, Inc.
</TABLE>
CERTIFICATES OFFERED TO INVESTORS:
<TABLE>
<CAPTION>
Securities Class A-1 Class M-1 Class M-2 Class M-3
---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C>
Amount: $316,200,000 $6,800,000 $6,800,000 $4,420,000
Security Type: Floating-rate Floating-rate Floating-rate Floating-rate
Index: One month LIBOR One month LIBOR One month LIBOR One month LIBOR
Prepayment Assumptions (PPA): 27% CPR/23% HEP 27% CPR/23% HEP 27% CPR/23% HEP 27% CPR/23% HEP
Average Life to Call: 2.935 years 5.070 years 5.057 years 4.980 years
Average Life to Maturity: 3.195 years 5.445 years 5.295 years 5.004 years
Expected Call Date: 04/25/08 04/25/08 04/25/08 04/25/08
Expected Maturity Date: 12/25/16 08/25/11 07/25/10 11/25/08
Expected Coupon (subject to an
Available Funds Cap Rate): One month LIBOR One month LIBOR + One month LIBOR + One month LIBOR +
+ TBD TBD TBD TBD
Stated Maturity Date: January 25, 2031 January 25, 2031 January 25, 2031 January 25, 2031
Payment Date: 25(th) of each month 25(th) of each month 25(th) of each month 25(th) of each month
Payment Delay: Zero Zero Zero Zero
Settlement Date September 28, 2000 September 28, 2000 September 28, 2000 September 28, 2000
Dated Date: September 28, 2000 September 28, 2000 September 28, 2000 September 28, 2000
Day Count: Actual/360 Actual/360 Actual/360 Actual/360
Days of Accrued Interest: Zero Zero Zero Zero
First Principal Distribution: October 25, 2000 October 25, 2003 October 25, 2003 October 25, 2003
Ratings (S&P/Moody's): AAA/Aaa AA/Aa2 A/A2 BBB/Baa2
</TABLE>
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 3
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CLASS A CERTFICIATES: Class A-1 Certificates
CLASS M CERTFICIATES: Class M-1, Class M-2 and Class M-3 Certificates
OTHER CERTIFICATES: In addition to the Class A-1, Class M-1, Class M-2
and Class M-3 Certificates (collectively, the
"Offered Certificates"), the Trust will also issue
the Class AIO, Class O, Class P and the Residual
Certificates.
The Class P Certificates will be entitled to all
prepayment penalties received in respect of the
mortgage loans and such amounts will not be available
for distribution to the holders of the Offered
Certificates. The Class AIO Certificateholders will
be entitled to receive the excess interest, which is
the weighted average interest due on the mortgage
loans less the Administrative Fees and the interest
payable on the Offered Certificates. Class O is a
subordinate class, and represents the
Overcollateralization Amount.
CUT-OFF DATE: September 1, 2000
EXP. PRICING DATE: September 20, 2000
THE MORTGAGE LOAN POOL: The mortgage pool will consist of conventional,
monthly payment, first lien mortgage loans with terms
to maturity of not more than 30 years from the date
of origination or modification. The mortgage pool
will consist of both adjustable-rate mortgage loans
("ARMs") and fixed-rate mortgage loans. The initial
mortgage pool consists of approximately 84.49% ARMs
and 15.51% fixed-rate mortgage loans (the "Initial
Mortgage Loans").
DISTRIBUTION DATE: The 25(th) day of each month or if such 25(th) day is
not a business day, the next succeeding business day
(each a "Distribution Date"), commencing on October
25, 2000.
FINAL DISTRIBUTION DATE: The final scheduled Distribution Date for all the
Certificates is January 25, 2031. It is anticipated
that the actual final payment on each class will
occur significantly earlier then the indicated date.
RECORD DATE: For all the Offered Certificates, the Record Date is
the last business day prior to the Distribution Date,
except that the Record Date for the first
Distribution Date is the Closing Date.
DUE PERIOD: A Due Period with respect to any Distribution Date is
the period commencing on the second day of the month
preceding the month in which such Distribution Date
occurs and ending on the first day of the month in
which such Distribution Date occurs.
PRE-FUNDING AMOUNT: On the closing date the Trust will deposit
$151,276,685.83 into a pre-funding account which will
be used from time to time on or before December 28,
2000, to acquire subsequent
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 4
--------------------------------------------------------------------------------
mortgage loans.
To the extent that the Trust does not fully use
amounts on deposit in the pre-funding account to
purchase additional mortgage loans by December 28,
2000, the Trust will apply the remaining amounts as a
prepayment of the principal of the Certificates on
the Distribution Date on January 25, 2001. Although
no assurance is possible, we do not anticipate that a
material amount of principal will be prepaid on the
Certificates from amounts in the pre-funding account.
ERISA: The Class A-1 Certificates may be purchased by plans
after the pre-funding has been completed, provided
that certain conditions are satisfied. A fiduciary of
any ERISA plan that is considering a purchase of
Certificates should, among other things, consult with
experienced legal counsel in determining whether all
required conditions for purchase have been satisfied.
The Class M Certificates may not be acquired by or on
behalf of an ERISA plan except as described in the
prospectus supplement. Each investor in a Class M
Certificate purchased in book-entry form will be
deemed to represent that it complies with the
restrictions described under "Considerations for
Benefit Plan Investors" in the prospectus supplement.
SMMEA: The Class A-1 and Class M-1 Certificates will
constitute "mortgage related securities" for purposes
of SMMEA, for so long as they are rated in at least
the second highest rating category by one or more
nationally recognized statistical rating agencies.
Institutions whose investment activities are subject
to legal investment laws and regulations or to review
by certain regulatory authorities may be subject to
restrictions on investment in the Certificates.
TAX STATUS: The Trust will elect to be treated as one or more
Real Estate Mortgage Investment Conduits ("REMIC"s)
for federal income tax purposes. The Offered
Certificates will be designated as "regular
interests" in a REMIC. Certificateholders will
include interest on the Certificates as income in
accordance with an accrual method of accounting.
CLEAN-UP CALL: The Servicer has a clean-up call which, if exercised,
would result in early redemption of the Certificates,
on any Distribution Date after the aggregate
principal balance of the mortgage loans has declined
to 10% or less of the sum of the principal balance of
the initial mortgage loans plus the principal balance
of each subsequent mortgage loan acquired through the
pre-funding feature. The first Distribution Date on
which the clean-up call may be exercised is the
"Clean-Up Call Date".
BOOK ENTRY FORMAT: The Certificates will be issued, maintained and
transferred on the book-entry records of the
Depository Trust Company. The Certificates will be
offered in registered form, in minimum denominations
of $25,000 and integral multiples of $1,000 in excess
thereof.
EXPECTED PRICING SPEED: With respect to the adjustable-rate mortgage loans,
the prepayment model assumes a constant CPR of 27%
(such model, a "prepayment assumption"). With respect
to the fixed-rate mortgage loans, the prepayment
model assumes a constant CPR of 2.3% in the first
month of the life of the fixed-rate mortgage loans
and an additional 2.3% per annum in each month
thereafter until the tenth month. Beginning in the
tenth month and in each month thereafter, the
prepayment model assumes a CPR of 23% (such model,
also a "prepayment assumption").
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 5
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STRUCTURE
THE TRUST: The Certificates will be backed by the Trust estate
created by the pooling and servicing agreement, which
consists primarily of the following:
The mortgage loans;
Collections in respect of principal and interest of
the mortgage loans received after the Cut-off Date
(other than payments due on or before the Cut-off
Date);
The amounts on deposit in the collection account,
including the payment account in which amounts are
deposited prior to payment to the Certificateholders,
including net investment earnings;
Mortgage insurance policies and certain other
insurance policies maintained by the mortgagors or
by or on behalf of the Servicer or any sub-servicer;
An assignment of the seller's rights under the
purchase agreement;
Amounts on deposit in the interest coverage account
and the pre-funding account;
An assignment of the seller's rights under the
converted loan purchase agreement; and
Proceeds, if any, from the interest rate cap
agreements.
AVAILABLE FUNDS: The Available Funds for each Distribution Date will
equal the amount received by the Trustee and available
in the payment account on that Distribution Date. The
Available Funds will generally be equal to the sum of,
net of Administrative Fees and amounts reimbursable to
the Servicer, the following amounts:
The aggregate amount of scheduled payments on the
mortgage loans due on the related Due Date and
received on or prior to the related Determination
Date,
Investment earnings on amounts in the payment account,
plus miscellaneous fees and collections, including
assumption fees and prepayment penalties, but
excluding late fees,
Any unscheduled payments and receipts, including
mortgagor prepayments on the mortgage loans, received
during the related prepayment period and proceeds of
repurchases, and adjustments in the case of
substitutions and terminations, net liquidation
proceeds, insurance proceeds, proceeds from any
mortgage insurance policy and proceeds from the sale
of converted mortgage loans,
All advances made for that Distribution Date. In
addition, on the Distribution Date which follows the
termination of the pre-funding period, Available Funds
will include the remaining amount on deposit in the
pre-funding account at that time. During the
pre-funding period, Available Funds will also include
the withdrawn amount from the interest coverage
account, and
Amounts on deposit in the supplemental interest
account, including amounts funded, from interest rate
cap agreements, in accordance with the terms of the
pooling and servicing agreement.
INTEREST: On each Distribution Date, the holders of each class of
Certificates will be entitled to
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 6
--------------------------------------------------------------------------------
receive an interest payment amount equal to interest
accrued on the related Certificate principal balance
immediately prior to such Distribution Date at the
related pass-through rate for the related accrual
period.
The pass-through rate for each class and Distribution
Date is the lesser of (1) the formula rate for that
class and Distribution Date and (2) the Available Funds
Cap Rate for that Distribution Date.
The formula rate for each class is as follows:
Prior to the Rate Step Up Date
Class Rate
A-1 LIBOR plus %
M-1 LIBOR plus %
M-2 LIBOR plus %
M-3 LIBOR plus %
On or after the Rate Step Up Date
Class Rate
A-1 LIBOR plus %
M-1 LIBOR plus %
M-2 LIBOR plus %
M-3 LIBOR plus %
The "Rate Step Up Date" is the first Distribution Date
to occur after the Clean-up Call Date. If the clean-up
call is not exercised, the margin on the Class A-1
Certificates will increase to 2x the Class A-1 margin,
and the margin on the Class M-1, M-2, and M-3
Certificates will increase to 1.5x their related
margins.
AVAILABLE FUNDS CAP
RATE: The "available funds cap rate" for each Distribution
Date is the percentage equivalent of a fraction, the
numerator of which is equal to the Interest Remittance
Formula Amount plus any Supplemental Interest Payment,
less the Administrative Fees for that Distribution Date,
and the denominator of which is equal to the product of
(1) the number of days in the current month divided by
360 and (2) the aggregate Certificate principal balance
of the Offered Certificates immediately prior to that
Distribution Date.
With respect to each Class and any Distribution Date, to
the extent that the amount of interest paid to a class
is reduced because the formula rate exceeds the
Available Funds Cap Rate (such excess amount, the
related "Available Funds Cap Carry-Forward Amount"),
such amount will be carried forward and distributed to
the holders of that Class, together with interest on
that amount at the related formula rate applicable from
time to time.
Interest on the Certificates will accrue during each
accrual period. The accrual period is the period from
the prior Distribution Date through and including the
day preceding the related Distribution Date. In the case
of the first Distribution Date, interest begins to
accrue on the closing date. Interest will accrue on the
basis of the actual number of days in the accrual period
and a 360 day year.
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 7
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ADMINISTRATIVE FEES: Mortgage insurance fees, trustee fees and servicing
fees.
SERVICING FEE: 50 basis points per annum.
INTEREST REMITTANCE
AMOUNT: For any Distribution Date, that portion of the Available
Funds for that Distribution Date allocable to interest.
INTEREST REMITTANCE
FORMULA AMOUNT: For any Distribution Date, is an amount equal to (1) the
product of (x) 1/12 of the weighted average coupon rate
of the mortgage loan pool as of the beginning of the
prior due period and (y) the aggregate principal
balances of the mortgage loans as of the beginning of
the prior due period minus (2) the aggregate amount of
Relief Act shortfalls and prepayment interest shortfalls
for the prior period.
INTEREST ALLOCATION: On each Distribution Date the Trustee will first
distribute the prepayment penalties collected during the
prior prepayment period to the holders of the Class P
Certificates. After making that distribution, the
trustee will apply that portion of the available funds
which represents the Interest Remittance Amount for that
Distribution Date, to the payment of any Administrative
Fees of the Trust which are due on that Distribution
Date, and will then apply the remaining Interest
Remittance Amount to the payment of interest then due on
the Certificates in the following order of priority:
(i) First, to the holders of the Class AIO
Certificates and the holders of the Class A-1
Certificates, the Class AIO Monthly Interest
Distributable Amount and the Class A-1 Monthly
Interest Distributable Amount; these payments are
of equal priority to those two classes, and, in
the event that the remaining Interest Remittance
Formula Amount is insufficient to pay both
classes the full amount due, the amount paid to
the holders of each of these two classes will be
a pro rata portion of the remaining Interest
Remittance Formula Amount, with the allocation
based on the relative proportions of the Class
AIO Monthly Interest Distributable Amount and the
Class A-1 Monthly Interest Distributable Amount;
(ii) Second, to the holders of the Class M-1
Certificates, the Monthly Interest Distributable
Amount for Class M-1;
(iii) Third, to the holders of the Class M-2
Certificates, the Monthly Interest Distributable
Amount for Class M-2;
(iv) Fourth, to the holders of the Class M-3
Certificates, the Monthly Interest Distributable
Amount for Class M-3;
(v) Fifth, to the holders of each class of Offered
Certificates, the Available Funds Cap
Carry-Forward Amount for that class, such amount
to be paid in the following order of priority:
Class A-1, Class M-1, Class M-2 and Class M-3;
and
(vi) Sixth, to the holders of the Residual
Certificates, any remainder.
On any Distribution Date, any shortfalls resulting from
the application of the Civil Relief Act and any
prepayment interest shortfalls to the extent not covered
by compensating
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 8
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interest paid by the servicer will be applied to reduce
the Monthly Interest Distributable Amounts with respect
to the Class A-1, Class M-1, Class M-2, Class M-3 and
Class AIO Certificates on a pro rata basis, based on the
respective amounts of interest accrued on such
Certificates for such Distribution Date. The holders of
the Certificates will not be entitled to reimbursement
for any such interest shortfalls.
MONTHLY INTEREST
DISTRIBUTABLE AMOUNT: The Monthly Interest Distributable Amount on any
Distribution Date and for each class of Offered
Certificates equals the amount of interest accrued
during the related accrual period at the related
pass-through rate on the Certificate Principal Balance
of such class immediately prior to such Distribution
Date plus the Unpaid Interest Shortfall Amount for that
class and distribution date.
UNPAID INTEREST
SHORTFALL: The Unpaid Interest Shortfall Amount means (i) for each
class of Offered Certificates (and the Class AIO
Certificates), and the first Distribution Date, zero,
and (ii) with respect to each class of Offered
Certificates and any Distribution Date after the first
Distribution Date, the amount, if any, by which (a) the
Monthly Interest Distributable Amount for such class for
the immediately preceding Distribution Date exceeds (b)
the aggregate amount distributed on such class in
respect of interest pursuant to clause (a) of this
definition on such preceding Distribution Date, plus
interest on that amount to the extent permitted by law,
at the pass-through rate for such class for the related
accrual period.
SUPPLEMENTAL INTEREST
PAYMENTS: The holders of the Offered Certificates may be entitled
to Supplemental Interest Payments. Supplemental Interest
Payments are amounts which will be paid to the holders
of the Offered Certificates if their formula rate was
limited by the Available Funds Cap Rate, but only to the
limited extent that moneys are then in the supplemental
interest account held by the Trustee.
The Trustee will deposit into the supplemental interest
account (i) payments under certain Cap Agreements ("Cap
Payments") and (ii) excess interest, if any, which
results if some classes have formula rates which are
below the Available Funds Cap Rate. Amounts on deposit
in the supplemental interest account will also be used
to fund the Available Funds Cap Carry-Forward Amounts.
The Cap Agreements pay quarterly, have varying tenors
through July 2003.
In each month in which Cap Payments are received,
one-third of the amount received will be available to
increase the Available Funds Cap Rate (and, as a second
priority, to fund any Available Funds Cap Carry-Forward
Amount) on each of the next three Distribution Dates. To
the extent these moneys are not needed for a
Distribution Date, they will be retained by the trustee
and added to the one-third figure otherwise available on
the next Distribution Date. If, however, these amounts
have not been applied by the close of the third
Distribution Date following receipt, they will be paid
to the holders of the Class AIO Certificates.
PRINCIPAL: On each Distribution Date, the Certificateholders are
scheduled to receive an amount of principal generally
equal to the sum of:
The scheduled principal on the mortgage loans
collected or advanced during the
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 9
--------------------------------------------------------------------------------
prior period; and
Unscheduled principal on the mortgage loans
collected during the prior prepayment period.
The Class M Certificates are unlikely to receive any
principal payments until, at the earliest, the
Distribution Date occurring on October 25, 2003.
The principal will be distributed to the
Certificateholders of each class in accordance with a
payment priority, which is designed to maintain a
specified level of support below each class. This
support consists of the Certificates that are more
subordinated to that class, as well as the
Overcollateralization, which is subordinated to all
classes of the Offered Certificates.
PRINCIPAL ALLOCATION: On each Distribution Date (a) prior to the Crossover
Date or (b) on which a Trigger Event is in effect, the
holders of each class of Certificates shall be entitled
to receive distributions in respect of principal to the
extent of the Principal Distribution Amount in the
following amounts and order of priority:
(i) First, to the holders of the Class A-1
Certificates, the entire amount of the Principal
Distribution Amount, until the Certificate
Principal Balance of the Class A-1 Certificates
has been reduced to zero;
(ii) Second, to the holders of the Class M-1
Certificates, the entire amount of the Principal
Distribution Amount until the Certificate
Principal Balance of the Class M-1 Certificates
has been reduced to zero;
(iii) Third, to the holders of Class M-2 Certificates,
the entire amount of the Principal Distribution
Amount until the Certificate Principal Balance of
the Class M-2 Certificates has been reduced to
zero;
(iv) Fourth, to the holders of the Class M-3
Certificates, the entire amount of the Principal
Distribution Amount until the Certificate
Principal Balance of the Class M-3 Certificates
has been reduced to zero; and
(v) Fifth, to the holders of the Class O
Certificates, any remainder.
On each Distribution Date (a) on or after the Crossover
Date and (b) on which a Trigger Event is not in effect,
the holders of each class of Certificates shall be
entitled to receive distributions in respect of
principal to the extent of the Principal Distribution
Amount in the following amounts and order of priority:
(i) First, to the holders of the Class A-1
Certificates, the Class A-1 Principal
Distribution Amount, until the Certificate
Principal Balance of the A-1 Certificates has
been reduced to zero;
(ii) Second, to the holders of the Class M-1
Certificates, the Class M-1 Principal
Distribution Amount, until the Certificate
Principal Balance of the Class M-1 Certificates
has been reduced to zero;
(iii) Third, to the holders of the Class M-2
Certificates, the Class M-2 Principal
Distribution Amount, until the Certificate
Principal Balance of the Class M-2 Certificates
has been reduced to zero;
(iv) Fourth, to the holders of the Class M-3
Certificates, the Class M-3 Principal
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 10
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Distribution Amount, until the Certificate
Principal Balance of the Class M-3 Certificates
has been reduced to zero; and
(v) Fifth, to the holders of the Class O
Certificates, any remainder.
The allocation of principal with respect to the Class
A-1 Certificates on each Distribution Date prior to the
Crossover Date or on which a Trigger Event has occurred
will have the effect of accelerating the amortization of
the Class A-1 Certificates while, in the absence of
realized losses, increasing the relative proportion of
the Trust's assets represented by the Class M
Certificates. Increasing the relative proportion of the
Trust's assets in the Class M Certificates relative to
that of the Class A-1 Certificates is intended to
preserve the availability of the subordination provided
by the Class M Certificates.
PRINCIPAL DISTRIBUTION
AMOUNT: The Principal Distribution Amount means with respect to
any Distribution Date, the sum of (i) all scheduled
payments of principal collected or advanced on the
mortgage loans by the Servicer that were due during the
related due period, (ii) the principal portion of all
partial and full principal prepayments of the mortgage
loans applied by the Servicer during such prepayment
period, (iii) the principal portion of all related net
liquidation proceeds and insurance proceeds received
during such prepayment period, (iv) that portion of the
purchase price, representing principal of any
repurchased mortgage loan, deposited to the collection
account during such prepayment period, (v) the principal
portion of any related substitution adjustments
deposited in the collection account during such
prepayment period, (vi) in the case of the Distribution
Date immediately following the end of the funding
period, any amount remaining in the pre-funding account
and not used by the Trustee to purchase subsequent
mortgage loans and (vii) on the Distribution Date on
which the Trust is to be terminated that portion of the
termination price relating to principal.
CROSSOVER DATE: The Crossover Date means the later to occur of (x) the
Distribution Date occurring in the 37(th) period and (y)
the first Distribution Date on which the Credit
Enhancement Percentage for the Class A Certificates
(calculated for this purpose only after taking into
account distributions of principal on the mortgage loans
but prior to distribution of the Principal Distribution
Amount to the Certificates) is greater than or equal to
14%.
TRIGGER EVENT: A Trigger Event is in effect with respect to any
Distribution Date if the three-month rolling average of
mortgage loans delinquent 90 days or more exceeds 12% of
the remaining pool balance.
CREDIT ENHANCEMENT: The credit enhancement is provided by subordinated
classes, overcollateralization, and Mortgage Insurance.
SUBORDINATION
The rights of the holders of the Class M Certificates to
receive distributions will be subordinated, to the
extent described herein, to the rights of the holders of
the Class A-1 Certificates.
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 11
--------------------------------------------------------------------------------
In addition, the rights of the holders of Class M
Certificates with higher numerical class designations
will be subordinated to the rights of holders of
Mezzanine Certificates with lower numerical class
designations.
Subordination is intended to enhance the likelihood of
regular distributions on the more senior Classes of
Offered Certificates and to afford those Certificates
protection against losses.
OVERCOLLATERALIZATION
The Trust will have an initial level of
overcollateralization (the "Overcollateralization
Amount") of approximately 1.7%, which is equal to
$5,780,000. The overcollateralization is available for
the benefit of all classes of Offered Certificates and
is represented by the Class O Certificates.
MORTGAGE INSURANCE
NovaStar has acquired on behalf of the Trust loan-level
mortgage insurance policies for approximately 97.64% of
the Initial Mortgage Loans with an LTV in excess of 50%.
Initial Mortgage Loans with an aggregate balance of
$1,234,551.98 have an LTV less than or equal to 50% and
are thus not insured by the mortgage insurance policies.
The terms and conditions of the mortgage insurance
policies are further discussed below.
ALLOCATION OF LOSSES: Any realized losses on the mortgage loans will be
allocated first to the Overcollateralization Amount,
which is represented by the Class O Certificates,
second, to the Class M-3 Certificates, third, to the
Class M-2 Certificates, and fourth, to the Class M-1
Certificates.
The Pooling and Servicing Agreement does not permit the
allocation of realized losses to the Class A-1, Class
AIO, or Class P Certificates. Investors in the Class A-1
Certificates should note that although realized losses
cannot be allocated to the Class A-1 Certificates, under
certain loss scenarios there will not be enough
principal and interest on the mortgage loans to pay to
the Class A-1 Certificates all interest and principal
amounts to which they are then entitled.
Once realized losses have been allocated to the
Mezzanine Certificates, such amounts with respect to
such Certificates will no longer accrue interest nor
will such amounts thereafter be reinstated.
Any allocation of a realized loss to a class of
Certificates will be made by reducing that Class of
Certificates' principal balance by the amount allocated
to that class as of the Distribution Date in the month
following the calendar month in which the realized loss
was incurred.
MORTGAGE INSURANCE
POLICIES: Approximately 97.01% of the Initial Mortgage Loans are
covered by mortgage insurance policies from PMI Mortgage
Insurance Co. (the "MI Insurer"). Approximately 0.65% of
the Initial Mortgage Loans have an LTV less than or
equal to 50%, and are therefore not covered by a
mortgage insurance policy. The remainder of the Initial
Mortgage Loans will not be covered by a mortgage
insurance policy notwithstanding a related LTV in excess
of 50%. Each mortgage insurance policy insures losses on
the Principal Balance of each such mortgage loan in an
amount generally equal to, at the option of the MI
Insurer, either
The sum of (i) the Principal Balance of the
mortgage loan, (ii) unpaid
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 12
--------------------------------------------------------------------------------
accumulated interest due on the mortgage loan at
the mortgage rate (for a maximum period of two
years) and (iii) the amount of certain advances
(such as hazard insurance, taxes, maintenance
expenses and foreclosure costs) made by the
Servicer, reduced by certain mitigating amounts
collected with respect thereto (collectively, the
"Loss Amount") in which case the MI Insurer would
take title to the mortgaged property, or
An amount equal to the product of (i) the Loss
Amount and (ii) the percentage of coverage (the
"Coverage Percentage") specified in the mortgage
insurance policy, in which case the issuer would
retain title to (and the proceeds obtained in a
foreclosure and sale of) the mortgaged property.
The minimum Coverage Percentage specified in each
mortgage insurance policy will be different depending
upon the original Loan-to-Value Ratio of the related
mortgage loan (mortgage loans with higher Loan-to-Value
Ratios will generally have a higher Coverage Percentage
and mortgage loans with lower Loan-to-Value Ratios will
generally have a lower Coverage Percentage). However,
for each insured mortgage loan, the related Coverage
Percentage will be a percentage sufficient to insure
such mortgage loan to an effective Loan-to-Value Ratio
of 50%. Each mortgage insurance policy will remain in
place for the life of the related mortgage loan.
Claim payments, if any, under a mortgage insurance
policy will be made to the Servicer, deposited in the
Collection Account and treated in the same manner as a
prepayment of the related mortgage loan. Premiums
payable on the mortgage insurance policies (the "MI
Premiums") will be paid monthly by the Servicer with
funds withdrawn from the Collection Account with respect
to the related mortgage loans.
CONVERSION FEATURE OF
ADJUSTABLE-RATE LOANS: 79.20% of the Initial Mortgage Loans are, at the
borrower's option, subject to conversion during a
certain period into fixed-rate loans at a rate not to
exceed 600 basis points over the FNMA rate for
thirty-year fixed-rate loans only if certain conditions
are met, for example, (a) the borrower has made timely
payments on the loan during the twelve months
immediately preceding the conversion date; (b) the
borrower occupies the property; (c) the value of the
property has not declined since the date of the original
loan; and (d) the borrower meets the Servicer's property
and credit standards.
REMOVAL OF CONVERTED
LOANS PURSUANT TO THE
CONVERSION FEATURE: In the event of a conversion of a mortgage loan from an
adjustable-rate to a fixed-rate, NovaStar Capital, Inc.,
an affiliate of the Seller and Servicer, will be
obligated to purchase the mortgage loan from the pool at
the outstanding principal balance of the mortgage loan.
That is, the converted loans will be bought out of, and
thus removed from, the pool after the conversion,
causing an acceleration of principal distributions on
the Certificates in accordance with their terms due to a
prepayment of the pool. The purchase obligation of
NovaStar Capital, Inc. will be fully guaranteed by
NovaStar Finaial, Inc., a publicly-held company.
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum- 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 13
-------------------------------------------------------------------------------
Weighted Average Life (WAL) and
Payment Windows Table
<TABLE>
<CAPTION>
To Call (10%)
PPA* 0% 50% 75% 100% 125% 150%
Class A1 Bond
<S> <C> <C> <C> <C> <C> <C>
WAL 21.087 5.883 3.972 2.935 2.289 1.838
FIRST PAY 0/25/00 10/25/00 10/25/00 10/25/00 10/25/00 10/25/00
LAST PAY 10/25/29 08/25/15 01/25/11 04/25/08 08/25/06 06/25/05
Class M1 Bond
WAL 27.079 10.074 6.792 5.070 4.198 3.763
FIRST PAY 02/25/24 08/25/05 12/25/03 10/25/03 11/25/03 01/25/04
LAST PAY 10/25/29 08/25/15 01/25/11 04/25/08 08/25/06 06/25/05
Class M2 Bond
WAL 27.079 10.074 6.792 5.057 4.166 3.687
FIRST PAY 02/25/24 08/25/05 12/25/03 10/25/03 11/25/03 11/25/03
LAST PAY 10/25/29 08/25/15 01/25/11 04/25/08 08/25/06 06/25/05
Class M3 Bond
WAL 27.050 9.966 6.684 4.980 4.078 3.596
FIRST PAY 02/25/24 08/25/05 12/25/03 10/25/03 10/25/03 10/25/03
LAST PAY 10/25/29 08/25/15 01/25/11 04/25/08 08/25/06 06/25/05
<CAPTION>
To Maturity
PPA* 0% 50% 75% 100% 125% 150%
Class A1 Bond
WAL 21.134 6.274 4.294 3.195 2.493 2.004
FIRST PAY 10/25/00 10/25/00 10/25/00 10/25/00 10/25/00 10/25/00
LAST PAY 11/25/30 02/25/28 03/25/22 12/25/16 01/25/14 06/25/11
Class M1 Bond
WAL 27.163 10.644 7.287 5.445 4.486 3.998
FIRST PAY 02/25/24 08/25/05 12/25/03 10/25/03 11/25/03 01/25/04
LAST PAY 06/25/30 11/25/20 05/25/15 08/25/11 03/25/09 07/25/07
Class M2 Bond
WAL 27.140 10.403 7.103 5.295 4.346 3.836
FIRST PAY 02/25/24 08/25/05 12/25/03 10/25/03 11/25/03 11/25/03
LAST PAY 04/25/30 02/25/19 01/25/14 07/25/10 05/25/08 11/25/06
Class M3 Bond
WAL 27.058 9.987 6.714 5.004 4.095 3.611
FIRST PAY 02/25/24 08/25/05 12/25/03 10/25/03 10/25/03 10/25/03
LAST PAY 12/25/29 03/25/16 11/25/11 11/25/08 01/25/07 11/25/05
</TABLE>
*100 Percent Prepayment Assumption (PPA) represents 27% CPR for the ARM
collateral, and 2.3% CPR in month 1 of the life of a loan, increasing each month
by 2.3% CPR until month 10 and remaining constant at 23% CPR thereafter for the
fixed-rate collateral.
-------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND
WILL BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH
A DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 14
-------------------------------------------------------------------------------
Summary of Interest Rate Cap Agreements
<TABLE>
<CAPTION>
Notional 3 Month LIBOR Maturity
Cap Counterparty Amount Strike Price Quarterly Payment Dates Dates
---------------- ----------- -------------- -------------------------- ----------
<S> <C> <C> <C> <C>
Credit Suisse First $50 million 6.75% Feb. 24, May 24, Aug. 24, May 24, 2002
Boston Nov. 24
National Westminster $50 million 6.75% Jan. 24, April 24, July, 24, July 24, 2002
Oct. 24
National Westminster $25 million 6.75% Jan. 24, April 24, July, 24, July 24, 2003
Oct. 24
</TABLE>
-------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND
WILL BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH
A DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 15
--------------------------------------------------------------------------------
Available Funds Cap Rate
To Call @ 10%
<TABLE>
<CAPTION>
Period Date AFC Rate Period Date AFC Rate Period Date AFC Rate
<S> <C> <C> <C> <C> <C> <C> <C> <C>
0 9/28/00 35 8/25/03 10.56% 70 7/25/06 10.91%
1 10/25/00 10.24% 36 9/25/03 10.57% 71 8/25/06 10.55%
2 11/25/00 8.92% 37 10/25/03 10.93% 72 9/25/06 10.55%
3 12/25/00 9.22% 38 11/25/03 10.50% 73 10/25/06 10.90%
4 1/25/01 8.93% 39 12/25/03 10.85% 74 11/25/06 10.55%
5 2/25/01 8.93% 40 1/25/04 10.57% 75 12/25/06 10.90%
6 3/25/01 9.89% 41 2/25/04 10.57% 76 1/25/07 10.55%
7 4/25/01 8.94% 42 3/25/04 11.30% 77 2/25/07 10.55%
8 5/25/01 9.25% 43 4/25/04 10.57% 78 3/25/07 11.69%
9 6/25/01 8.95% 44 5/25/04 10.92% 79 4/25/07 10.57%
10 7/25/01 9.26% 45 6/25/04 10.57% 80 5/25/07 10.93%
11 8/25/01 8.96% 46 7/25/04 10.92% 81 6/25/07 10.59%
12 9/25/01 8.97% 47 8/25/04 10.57% 82 7/25/07 10.95%
13 10/25/01 9.27% 48 9/25/04 10.57% 83 8/25/07 10.61%
14 11/25/01 8.98% 49 10/25/04 10.92% 84 9/25/07 10.62%
15 12/25/01 9.28% 50 11/25/04 10.57% 85 10/25/07 10.98%
16 1/25/02 8.99% 51 12/25/04 10.92% 86 11/25/07 10.64%
17 2/25/02 9.00% 52 1/25/05 10.56% 87 12/25/07 11.01%
18 3/25/02 9.97% 53 2/25/05 10.56% 88 1/25/08 10.66%
19 4/25/02 9.01% 54 3/25/05 11.69% 89 2/25/08 10.68%
20 5/25/02 9.32% 55 4/25/05 10.56% 90 3/25/08 11.43%
21 6/25/02 9.02% 56 5/25/05 10.91% 91 4/25/08 10.70%
22 7/25/02 9.33% 57 6/25/05 10.56% 92 5/25/08 0.00%
23 8/25/02 9.75% 58 7/25/05 10.91%
24 9/25/02 9.76% 59 8/25/05 10.56%
25 10/25/02 10.09% 60 9/25/05 10.56%
26 11/25/02 9.78% 61 10/25/05 10.91%
27 12/25/02 10.11% 62 11/25/05 10.56%
28 1/25/03 10.41% 63 12/25/05 10.91%
29 2/25/03 10.41% 64 1/25/06 10.56%
30 3/25/03 11.54% 65 2/25/06 10.56%
31 4/25/03 10.43% 66 3/25/06 11.69%
32 5/25/03 10.79% 67 4/25/06 10.56%
33 6/25/03 10.45% 68 5/25/06 10.91%
34 7/25/03 10.81% 69 6/25/06 10.56%
</TABLE>
*Derived assuming indices remain constant at 6.62%, 6.66%, 6.78%, and 6.19% for
1 month LIBOR, 3 month LIBOR, 6 Month LIBOR, and One Year CMT, respectively,
using 100% of the PPA, and assuming that the final pool has identical
characteristics to the pool consisting of the Initial Mortgage loans.
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 16
--------------------------------------------------------------------------------
Available Funds Cap Rate-100 Basis Points Increase in Indices*
To Call @ 10%
<TABLE>
<CAPTION>
Period Date AFC Rate Period Date AFC Rate Period Date AFC Rate
<S> <C> <C> <C> <C> <C> <C> <C> <C>
0 9/28/00 35 8/25/03 11.49% 70 7/25/06 11.72%
1 10/25/00 10.44% 36 9/25/03 11.50% 71 8/25/06 11.34%
2 11/25/00 9.27% 37 10/25/03 11.73% 72 9/25/06 11.34%
3 12/25/00 9.57% 38 11/25/03 11.27% 73 10/25/06 11.72%
4 1/25/01 9.28% 39 12/25/03 11.64% 74 11/25/06 11.34%
5 2/25/01 9.29% 40 1/25/04 11.38% 75 12/25/06 11.71%
6 3/25/01 10.27% 41 2/25/04 11.38% 76 1/25/07 11.34%
7 4/25/01 9.32% 42 3/25/04 12.16% 77 2/25/07 11.33%
8 5/25/01 9.64% 43 4/25/04 11.37% 78 3/25/07 12.56%
9 6/25/01 9.35% 44 5/25/04 11.75% 79 4/25/07 11.35%
10 7/25/01 9.67% 45 6/25/04 11.37% 80 5/25/07 11.74%
11 8/25/01 9.38% 46 7/25/04 11.75% 81 6/25/07 11.37%
12 9/25/01 9.40% 47 8/25/04 11.37% 82 7/25/07 11.76%
13 10/25/01 9.72% 48 9/25/04 11.37% 83 8/25/07 11.39%
14 11/25/01 9.44% 49 10/25/04 11.74% 84 9/25/07 11.40%
15 12/25/01 9.75% 50 11/25/04 11.36% 85 10/25/07 11.79%
16 1/25/02 9.47% 51 12/25/04 11.74% 86 11/25/07 11.42%
17 2/25/02 9.49% 52 1/25/05 11.36% 87 12/25/07 11.82%
18 3/25/02 10.48% 53 2/25/05 11.36% 88 1/25/08 11.45%
19 4/25/02 9.53% 54 3/25/05 12.58% 89 2/25/08 11.46%
20 5/25/02 9.85% 55 4/25/05 11.36% 90 3/25/08 12.27%
21 6/25/02 9.57% 56 5/25/05 11.73% 91 4/25/08 11.49%
22 7/25/02 9.90% 57 6/25/05 11.35% 92 5/25/08 11.89%
23 8/25/02 10.48% 58 7/25/05 11.73%
24 9/25/02 10.51% 59 8/25/05 11.35%
25 10/25/02 10.62% 60 9/25/05 11.35%
26 11/25/02 10.29% 61 10/25/05 11.73%
27 12/25/02 10.64% 62 11/25/05 11.35%
28 1/25/03 11.26% 63 12/25/05 11.72%
29 2/25/03 11.27% 64 1/25/06 11.35%
30 3/25/03 12.48% 65 2/25/06 11.35%
31 4/25/03 11.30% 66 3/25/06 12.57%
32 5/25/03 11.68% 67 4/25/06 11.35%
33 6/25/03 11.33% 68 5/25/06 11.73%
34 7/25/03 11.71% 69 6/25/06 11.35%
</TABLE>
*Derived assuming indices increase 100 basis points to 7.62%, 7.66%, 7.78%, and
7.19% for 1 month LIBOR, 3 month LIBOR, 6 Month LIBOR, and One Year CMT,
respectively, using 100% of the PPA, and assuming that the final pool has
identical characteristics to the pool consisting of the Initial Mortgage loans.
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 17
--------------------------------------------------------------------------------
TOTAL INITIAL MORTGAGE LOAN POOL
<TABLE>
<S> <C>
Number of Loans: 1547
Percentage of Fixed-Rate Mortgage Loans (By number of loans) 19.26%
Percentage of Adjustable-Rate Mortgage Loans (By number of loans) 80.74%
Percentage of all Mortgage Loans (By number of loans) 100.00%
Aggregate Principal Balance $188,723,314.17
Percentage of Fixed-Rate Mortgage Loans (By principal balance) 15.51%
Percentage of Adjustable-Rate Mortgage Loans (By principal balance) 84.49%
Percentage of all Loans (by number of loans) 100.00%
Principal Balance as of the Cut-Off Date:
Average: $121,993.09
Range: $11,345.95 - $698,339.04
Coupon Rates:
Weighted Average: 10.581%
Range: 6.375% - 13.625%
Weighted Average Original Term to Maturity (months): 339
Remaining Term to Maturity (months):
Weighted Average: 337
Range: 119 - 360
Loan-to-Value Ratio at Origination:
Weighted Average: 83.22%
Range: 8.57% - 97.00%
</TABLE>
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 18
--------------------------------------------------------------------------------
GEOGRAPHIC DISTRIBUTION OF THE MORTGAGED PROPERTIES OF
ALL INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of All Initial
Mortgage Loans by
Number of Aggregate Aggregate Principal
Location Mortgage Loans Principal Balance Balance
-------------------- -------------- ----------------- -------------------------
<S> <C> <C> <C>
Alabama 25 $ 2,724,479.77 1.44%
Alaska 1 106,882.42 0.06
Arizona 72 9,380,359.22 4.97
Arkansas 11 1,127,360.73 0.60
California 101 21,911,430.15 11.61
Colorado 58 8,571,002.88 4.54
Connecticut 12 1,897,291.74 1.01
District of Columbia 3 343,947.37 0.18
Florida 221 23,949,794.28 12.69
Georgia 26 3,352,329.19 1.78
Idaho 5 494,156.25 0.26
Illinois 23 2,992,558.50 1.59
Indiana 40 3,432,158.80 1.82
Kansas 2 216,121.17 0.11
Kentucky 34 3,238,666.69 1.72
Louisiana 5 517,594.37 0.27
Maine 2 159,024.95 0.08
Maryland 11 1,634,516.04 0.87
Massachusetts 26 4,551,446.07 2.41
Michigan 176 18,205,889.14 9.65
Minnesota 19 2,561,006.22 1.36
Mississippi 34 2,679,362.89 1.42
Missouri 43 3,850,463.38 2.04
Montana 2 95,435.65 0.05
Nebraska 5 380,976.12 0.20
Nevada 78 11,201,647.67 5.94
New Hampshire 13 1,368,694.54 0.73
New Jersey 5 382,900.00 0.20
New Mexico 2 258,630.69 0.14
New York 3 778,168.85 0.41
North Carolina 30 3,503,751.81 1.86
Ohio 131 12,598,996.95 6.68
Oklahoma 20 1,690,319.46 0.90
Oregon 46 6,540,027.74 3.47
Pennsylvania 37 3,462,859.62 1.83
Rhode Island 8 802,310.10 0.43
South Carolina 18 2,083,837.49 1.10
Tennessee 76 8,647,084.62 4.58
Texas 33 4,207,070.13 2.23
Utah 7 719,517.00 0.38
Virginia 24 3,140,646.52 1.66
</TABLE>
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 19
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Washington 52 7,987,114.43 4.23
West Virginia 3 307,063.82 0.16
Wisconsin 2 493,268.74 0.26
Wyoming 2 175,150.00 0.09
------------------ ----------------- -------------------------
Totals 1,547 $188,723,314.17 100.00%
================== ================= =========================
</TABLE>
Types of Mortgage Properties of All Initial Mortgage Loans
<TABLE>
<CAPTION>
Percentage of All Initial
Mortgage Loans by
Number of Aggregate Aggregate Principal
Property Type Mortgage Loans Principal Balance Balance
----------------------- ------------------ ----------------- -------------------------
<S> <C> <C> <C>
Condo Hi-Rise 17 $ 2,000,697.03 1.06%
Condo Low-Rise 67 6,126,367.74 3.25
Manufactured 45 3,918,567.25 2.08
Multi-Unit 63 8,819,078.69 4.67
Pud 138 22,127,906.80 11.73
Single Family Residence 1,217 145,730,696.66 77.22
------------------ ----------------- -------------------------
Total 1,547 $ 188,723,314.17 100.00%
================== ================= =========================
</TABLE>
Use of Proceeds of All Initial Mortgage Loans
<TABLE>
<CAPTION>
Percentage of All Initial
Mortgage Loans by
Number of Aggregate Aggregate Principal
Use of Proceeds Mortgage Loans Principal Balance Balance
----------------------- ------------------ ----------------- -------------------------
<S> <C> <C> <C>
Refinance (cash out) 623 $ 73,873,022.63 39.14%
Purchase 746 94,731,707.62 50.20
Refinance (rate term) 175 19,833,859.76 10.51
Construction 3 284,724.16 0.15
------------------ ----------------- -------------------------
Total 1,547 $ 188,723,314.17 100.00%
================== ================= =========================
</TABLE>
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 20
--------------------------------------------------------------------------------
Occupancy Type of the Mortgaged Properties of All Initial Mortgage Loans
<TABLE>
<CAPTION>
Percentage of All Initial
Mortgage Loans by
Number of Aggregate Aggregate Principal
Occupancy Type Mortgage Loans Principal Balance Balance
----------------------- ------------------ ----------------- -------------------------
<S> <C> <C> <C>
Investment Non-Owner Occupied 94 $ 9,133,219.32 4.84%
Investment Owner Occupied 4 390,883.88 0.21
Primary 1,413 175,442,180.98 92.96
Second Home 36 3,757,029.99 1.99
------------------ ----------------- -------------------------
Total 1,547 $188,723,314.17 100.00%
================== ================= =========================
</TABLE>
Documentation Type of All Initial Mortgage Loans
<TABLE>
<CAPTION>
Percentage of All Initial
Mortgage Loans by
Number of Aggregate Aggregate Principal
Documentation Mortgage Loans Principal Balance Balance
----------------------- ------------------ ----------------- -------------------------
<S> <C> <C> <C>
Full 1,103 $ 128,197,646.32 67.93%
Limited 71 10,641,233.96 5.64
Stated 373 49,884,433.89 26.43
------------------ ----------------- -------------------------
Total 1,547 $ 188,723,314.17 100.00%
================== ================= =========================
</TABLE>
Risk Classifications of All Initial Mortgage Loans
<TABLE>
<CAPTION>
Percentage of All Initial
Mortgage Loans by
Number of Aggregate Aggregate Principal
Risk Classification Mortgage Loans Principal Balance Balance
----------------------- ------------------ ----------------- -------------------------
<S> <C> <C> <C>
A 308 $ 35,679,012.05 18.91%
A- 200 22,835,837.02 12.10
AA 464 60,347,376.02 31.98
AAA 226 30,588,413.80 16.21
B 97 10,568,462.43 5.60
C 25 1,807,548.40 0.96
C- 1 105,788.99 0.06
FICO Enhanced 226 26,790,875.46 14.20
------------------ ----------------- -------------------------
Total 1,547 $ 188,723,314.17 100.00%
================== ================= =========================
</TABLE>
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 21
--------------------------------------------------------------------------------
Fixed-Rate Initial Mortgage Loans
<TABLE>
<S> <C>
Number of Fixed-Rate Mortgage Loans: 298
Aggregate Principal Balance: $29,279,848.44
Principal Balance as of the Cut-Off Date:
Average: $98,524.52
Range: $11,345.95-$472,255.05
Coupon Rates:
Weighted Average: 10.976%
Range: 8.875%-13.375%
Weighted Average Original Term to Maturity (months): 226
Remaining Term to Maturity (months):
Weighted Average: 226
Range: 119-360
Loan-to-Value Ratio at Origination:
Weighted Average: 83.93%
Range: 8.571%-97.00%
</TABLE>
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 22
--------------------------------------------------------------------------------
Fixed-Rate Initial Mortgage Loan Types
--------------------------------------
<TABLE>
<CAPTION>
Percentage of Fixed-Rate
Initial Mortgage Loans by
Number of Mortgage Aggregate Principal Aggregate Principal
Loan Type Loans Balance Balance
-------------- ------------------ ------------------- --------------------------
<S> <C> <C> <C>
15 Year Balloon 193 $ 19,887,418.30 67.92%
10 Year Fixed-Rate 1 40,805.52 0.14
15 Year Fixed-Rate 21 1,470,890.89 5.02
20 Year Fixed-Rate 6 421,917.80 1.44
25 Year Fixed-Rate 2 118,786.16 0.41
30 Year Fixed-Rate 75 7,340,029.77 25.07
------------------ ------------------- --------------------------
Total 298 $ 29,279,848.44 100.00%
================== =================== ==========================
</TABLE>
Original Loan-to-Value Ratios of the Fixed-Rate Initial Mortgage Loans
<TABLE>
<CAPTION>
Percentage of Fixed-Rate
Initial Mortgage Loans by
Range of Loan-to-Value Number of Mortgage Aggregate Principal Aggregate Principal
Ratios at Origination (%) Loans Balance Balance
------------------------- ------------------ ------------------- --------------------------
<S> <C> <C> <C>
5.001 - 10.000 1 $ 11,345.95 0.04%
25.001 - 30.000 1 50,476.44 0.17
35.001 - 40.000 1 48,000.00 0.16
45.001 - 50.000 2 82,108.98 0.28
50.001 - 55.000 1 57,354.78 0.20
55.001 - 60.000 3 263,600.00 0.90
60.001 - 65.000 11 1,142,459.87 3.90
65.001 - 70.000 13 1,459,674.71 4.99
70.001 - 75.000 32 2,861,771.02 9.77
75.001 - 80.000 51 4,822,447.46 16.47
80.001 - 85.000 53 5,147,724.00 17.58
85.001 - 90.000 63 6,533,422.21 22.31
90.001 - 95.000 24 2,589,157.40 8.84
95.001 - 100.000 42 4,210,305.62 14.38
------------------ ------------------- --------------------------
Total 298 $ 29,279,848.44 100.00%
================== =================== ==========================
</TABLE>
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 23
--------------------------------------------------------------------------------
Mortgage Rates of the Fixed-Rate Initial Mortgage Loans
<TABLE>
<CAPTION>
Percentage of Fixed-Rate
Initial Mortgage Loans by
Range of Mortgage Rates Number of Mortgage Aggregate Principal Aggregate Principal
(%) Loans Balance Balance
----------------------- ------------------ ------------------- -------------------
<S> <C> <C> <C>
8.501 - 9.000 5 $ 831,837.88 2.84%
9.001 - 9.500 25 2,614,022.74 8.93
9.501 - 10.000 53 6,240,689.74 21.31
10.001 - 10.500 29 2,849,763.36 9.73
10.501 - 11.000 50 4,137,255.95 14.13
11.001 - 11.500 29 2,717,425.58 9.28
11.501 - 12.000 28 2,622,856.69 8.96
12.001 - 12.500 36 3,569,244.15 12.19
12.501 - 13.000 34 3,004,009.68 10.26
13.001 - 13.500 9 692,742.67 2.37
------------------ ------------------- -------------------
Total 298 $29,279,848.44 100.00%
================== =================== ===================
</TABLE>
Principal Balances of the Fixed-Rate Initial Mortgage Loans
<TABLE>
<CAPTION>
Percentage of Fixed-Rate
Initial Mortgage Loans by
Range of Principal Number of Mortgage Aggregate Principal Aggregate Principal
Balances ($) Loans Balance Balance
----------------------- ------------------ ------------------- -------------------
<S> <C> <C> <C>
0.01 - 25,000.00 1 $ 11,345.95 0.04%
25,000.01 - 50,000.00 45 1,998,884.47 6.83
50,000.01 - 75,000.00 79 4,874,744.71 16.65
75,000.01 - 100,000.00 60 5,261,690.18 17.97
100,000.01 - 125,000.00 46 5,039,608.62 17.21
125,000.01 - 150,000.00 31 4,259,516.94 14.55
150,000.01 - 175,000.00 15 2,408,894.54 8.23
175,000.01 - 200,000.00 7 1,280,399.38 4.37
200,000.01 - 225,000.00 3 654,029.95 2.23
225,000.01 - 250,000.00 4 944,268.63 3.22
250,000.01 - 275,000.00 1 259,978.65 0.89
275,000.01 - 300,000.00 1 279,624.49 0.96
300,000.01 - 325,000.00 1 315,000.00 1.08
375,000.01 - 400,000.00 2 766,606.88 2.62
450,000.01 - 475,000.00 2 925,255.05 3.16
------------------ ------------------- -------------------
Total 298 $29,279,848.44 100.00%
================== =================== ===================
</TABLE>
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 24
--------------------------------------------------------------------------------
Remaining Terms to Maturity of the Fixed-Rate Initial Mortgage Loans
<TABLE>
<CAPTION>
Percentage of Fixed-Rate
Initial Mortgage Loans by
Number of Mortgage Aggregate Principal Aggregate Principal
Remaining Term (months) Loans Balance Balance
---------------------- ------------------ ------------------- -------------------------
<S> <C> <C> <C>
116 - 120 1 $ 40,805.52 0.14%
156 - 160 1 11,345.95 0.04
176 - 180 213 21,346,963.24 72.91
236 - 240 6 421,917.80 1.44
296 - 300 2 118,786.16 0.41
356 - 360 75 7,340,029.77 25.07
------------------ ------------------- -------------------------
Total 298 $29,279,848.44 100.00%
================== =================== =========================
</TABLE>
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 25
--------------------------------------------------------------------------------
ADJUSTABLE-RATE INITIAL MORTGAGE LOANS
<TABLE>
<S> <C>
Number of Adjustable-Rate Mortgage Loans: 1,249
Aggregate Principal Balance: $159,443,465.73
Principal Balance as of the Cut-Off Date:
Average: $127,656.90
Range: $35,317.16 - $698,339.04
Coupon Rates:
Weighted Average: 10.509%
Range: 6.375% - 13.625%
Gross Margin:
Weighted Average: 5.576%
Range: 2.750% - 8.500%
Periodic Caps:
Weighted Average: 1.016%
Range: 1.000% - 2.000%
Lifetime Caps:
Weighted Average: 17.483%%
Range: 12.125% - 19.990%
Weighted Average Original Term to Maturity (months): 360
Remaining Term to Maturity (months):
Weighted Average: 358
Range: 287 - 360
Loan-to-Value Ratio at Origination:
Weighted Average: 83.08%
Range: 22.46% - 95.00%
</TABLE>
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 26
--------------------------------------------------------------------------------
ADJUSTABLE-RATE INITIAL MORTGAGE LOAN TYPES
<TABLE>
<CAPTION>
Percentage of Adjustable-
Rate Initial Mortgage
Number of Mortgage Aggregate Principal Loans by Aggregate
Loan Type Loans Balance Principal Balance
------------------ ------------------ ------------------- -------------------------
<S> <C> <C> <C>
1.75/28.25 1 $ 127,313.57 0.08%
10YR 1 YEAR - CMT 1 84,538.06 0.05
2/28 1,076 139,975,804.50 87.79
3/27 150 17,018,516.87 10.67
5YR 1 YEAR - CMT 20 2,124,748.25 1.33
7YR 1 YEAR - CMT 1 112,544.48 0.07
------------------ ------------------- -------------------------
Total 1,249 $159,443,465.73 100.00%
================== =================== =========================
</TABLE>
ORIGINAL LOAN-TO-VALUE RATIOS OF THE ADJUSTABLE-RATE INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of Adjustable-
Rate Initial Mortgage
Range of Loan-to-Value Number of Mortgage Aggregate Principal Loans by Aggregate
Ratios at Origination (%) Loans Balance Principal Balance
------------------------- ------------------ ------------------- -------------------------
<S> <C> <C> <C>
20.001 - 25.000 1 $ 107,950.23 0.07%
30.001 - 35.000 2 167,634.97 0.11
40.001 - 45.000 4 423,235.08 0.27
45.001 - 50.000 5 343,800.33 0.22
50.001 - 55.000 8 618,163.65 0.39
55.001 - 60.000 13 1,775,314.22 1.11
60.001 - 65.000 34 4,292,253.98 2.69
65.001 - 70.000 42 4,975,380.76 3.12
70.001 - 75.000 129 17,122,435.56 10.74
75.001 - 80.000 291 37,492,121.72 23.51
80.001 - 85.000 256 29,928,903.63 18.77
85.001 - 90.000 341 46,504,169.21 29.17
90.001 - 95.000 123 15,692,102.39 9.84
------------------ ------------------- -------------------------
Total 1,249 $159,443,465.73 100.00%
================== =================== =========================
</TABLE>
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 27
--------------------------------------------------------------------------------
PRINCIPAL BALANCES OF THE ADJUSTABLE-RATE INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of Adjustable-
Rate Initial Mortgage
Range of Principal Number of Mortgage Aggregate Principal Loans by Aggregate
Balances ($) Loans Balance Principal Balance
----------------------- ------------------ ------------------- -------------------------
<S> <C> <C> <C>
25,000.01 - 50,000.00 66 $ 2,877,400.25 1.80%
50,000.01 - 75,000.00 261 16,448,325.57 10.32
75,000.01 - 100,000.00 247 21,569,205.44 13.53
100,000.01 - 125,000.00 189 21,201,306.91 13.30
125,000.01 - 150,000.00 166 22,653,025.13 14.21
150,000.01 - 175,000.00 80 12,893,804.16 8.09
175,000.01 - 200,000.00 74 13,828,947.77 8.67
200,000.01 - 225,000.00 41 8,668,329.23 5.44
225,000.01 - 250,000.00 30 7,070,096.91 4.43
250,000.01 - 275,000.00 24 6,318,802.19 3.96
275,000.01 - 300,000.00 14 4,048,239.93 2.54
300,000.01 - 325,000.00 21 6,570,981.24 4.12
325,000.01 - 350,000.00 10 3,419,269.44 2.14
350,000.01 - 375,000.00 2 717,960.80 0.45
375,000.01 - 400,000.00 5 1,950,199.19 1.22
400,000.01 - 425,000.00 5 2,085,083.40 1.31
425,000.01 - 450,000.00 5 2,192,577.92 1.38
450,000.01 - 475,000.00 2 927,956.81 0.58
475,000.01 - 500,000.00 2 989,328.93 0.62
500,000.01 - 525,000.00 1 511,467.09 0.32
550,000.01 - 575,000.00 1 555,065.68 0.35
575,000.01 - 600,000.00 1 597,752.70 0.37
625,000.01 - 650,000.00 1 650,000.00 0.41
675,000.01 - 700,000.00 1 698,339.04 0.44
--------------- ----------------- -----------------
Total 1,249 $159,443,465.73 100.00%
=============== ================= =================
</TABLE>
REMAINING TERMS TO MATURITY OF THE ADJUSTABLE-RATE INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of Adjustable-
Rate Initial Mortgage
Number of Mortgage Aggregate Principal Loans by Aggregate
Remaining Term (months) Loans Balance Principal Balance
----------------------- ------------------ ------------------- -------------------------
<S> <C> <C> <C>
286 - 290 2 $ 140,854.43 0.09%
291 - 295 1 189,913.49 0.12
306 - 310 1 112,544.48 0.07
316 - 320 2 229,223.16 0.14
321 - 325 11 934,028.44 0.59
326 - 330 9 1,259,945.45 0.79
331 - 335 2 213,990.77 0.13
336 - 340 1 56,347.44 0.04
351 - 355 101 14,838,115.52 9.31
356 - 360 1,119 141,468,502.55 88.73
--------- ------------------- ----------
Total 1,249 $159,443,465.73 100.00%
========= =================== ==========
</TABLE>
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 28
--------------------------------------------------------------------------------
ORIGINAL TERMS TO MATURITY OF THE ADJUSTABLE-RATE INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of Adjustable-
Rate Initial Mortgage
Number of Mortgage Aggregate Principal Loans by Aggregate
Original Term (months) Loans Balance Principal Balance
----------------------- ------------------ ------------------- -------------------------
<S> <C> <C> <C>
360 1,249 $159,443,465.73 100.00%
------------------ ------------------- -------------------------
Total 1,249 $159,443,465.73 100.00%
================== =================== =========================
</TABLE>
CURRENT MORTGAGE RATES FOR THE ADJUSTABLE-RATE INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of Adjustable-
Rate Initial Mortgage
Range of Mortgage Rates Number of Mortgage Aggregate Principal Loans by Aggregate
% Loans Balance Principal Balance
----------------------- ------------------ ------------------- -------------------------
<S> <C> <C> <C>
6.001 - 6.500 2 $ 334,172.25 0.21%
6.501 - 7.000 2 235,745.46 0.15
7.001 - 7.500 1 219,340.77 0.14
7.501 - 8.000 2 149,816.51 0.09
8.001 - 8.500 18 2,035,289.04 1.28
8.501 - 9.000 51 6,563,196.58 4.12
9.001 - 9.500 91 14,163,786.57 8.88
9.501 - 10.000 210 29,662,644.16 18.60
10.001 - 10.500 244 30,083,240.85 18.87
10.501 - 11.000 288 36,543,030.69 22.92
11.001 - 11.500 166 18,952,782.71 11.89
11.501 - 12.000 127 15,430,944.96 9.68
12.001 - 12.500 35 3,962,881.31 2.49
12.501 - 13.000 11 964,564.19 0.60
13.501 - 14.000 1 142,029.68 0.09
------------------ ------------------- -------------------------
Total 1,249 $159,443,465.73 100.00%
================== =================== =========================
</TABLE>
INITIAL PERIODIC RATE CAP FOR THE ADJUSTABLE-RATE INITIAL MORTGAGE LOANS
<TABLE>
<CAPTION>
Percentage of Adjustable-
Rate Initial Mortgage
Initial Periodic Rate Number of Mortgage Aggregate Principal Loans by Aggregate
Cap (%) Loans Balance Principal Balance
----------------------- ------------------ ------------------- -------------------------
<S> <C> <C> <C>
1.000 1 $ 135,394.72 0.08%
2.000 22 2,321,830.79 1.46
3.000 1,226 156,986,240.22 98.46
------------------ ------------------- -------------------------
Total 1,249 $159,443,465.73 100.00%
================== =================== =========================
</TABLE>
--------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 29
--------------------------------------------------------------------------------
Periodic Rate Cap for the Adjustable-Rate Initial Mortgage Loans
<TABLE>
<CAPTION>
Percentage of
Adjustable-Rate Initial
Mortgage Loans by
Number of Aggregate Aggregate Principal
Periodic Rate Cap(%) Mortgage Loans Principal Balance Balance
----------------------- ------------------ ----------------- -------------------------------------
<S> <C> <C> <C>
1.000 1,225 $ 156,886,279.33 98.40%
2.000 24 2,557,186.40 1.60
------------------ ----------------- --------------------------------------
Total 1,249 $ 159,443,465.73 100.00%
================== ================= ======================================
</TABLE>
Maximum Mortgage Rates for the Adjustable-Rate Mortgage Loans
<TABLE>
<CAPTION>
Percentage of
Adjustable-Rate Initial
Mortgage Loans by
Range of Maximum Number of Aggregate Aggregate Principal
Rates(%) Mortgage Loans Principal Balance Balance
----------------------- ------------------ ----------------- -------------------------------------
<S> <C> <C> <C>
12.001 - 12.500 3 $ 446,716.73 0.28%
12.501 - 13.000 3 369,430.84 0.23
13.001 - 13.500 1 84,538.06 0.05
14.001 - 14.500 9 1,050,705.21 0.66
14.501 - 15.000 11 1,067,279.81 0.67
15.001 - 15.500 9 997,949.78 0.63
15.501 - 16.000 43 5,720,699.68 3.59
16.001 - 16.500 89 14,046,891.05 8.81
16.501 - 17.000 211 29,793,770.95 18.69
17.001 - 17.500 244 30,069,756.70 18.86
17.501 - 18.000 289 36,698,544.52 23.02
18.001 - 18.500 164 18,738,791.94 11.75
18.501 - 19.000 127 15,430,944.96 9.68
19.001 - 19.500 35 3,962,881.31 2.49
19.501 - 20.000 11 964,564.19 0.60
------------------ ----------------- --------------------------------------
Total 1,249 $ 159,443,465.73 100.00%
================== ================= ======================================
</TABLE>
-------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 30
-------------------------------------------------------------------------------
Gross Margins of the Adjustable-Rate Initial Mortgage Loans
<TABLE>
<CAPTION>
Percentage of
Adjustable-Rate Initial
Mortgage Loans by
Range of Gross Number of Aggregate Aggregate Principal
Margins(%) Mortgage Loans Principal Balance Balance
----------------------- ------------------ ----------------- -------------------------------------
<S> <C> <C> <C>
2.501 - 3.000 5 $ 731,824.78 0.46%
3.001 - 3.500 4 387,022.65 0.24
3.501 - 4.000 18 1,669,831.93 1.05
4.001 - 4.500 39 5,681,557.41 3.56
4.501 - 5.000 154 21,812,750.13 13.68
5.001 - 5.500 325 42,614,056.21 26.73
5.501 - 6.000 415 51,735,900.36 32.45
6.001 - 6.500 245 29,662,055.39 18.60
6.501 - 7.000 40 4,789,345.27 3.00
7.001 - 7.500 3 302,774.16 0.19
8.001 - 8.500 1 56,347.44 0.04
------------------ ----------------- --------------------------------------
Total 1,249 $ 159,443,465.73 100.00%
================== ================= ======================================
</TABLE>
-------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
Marketing Memorandum - 9/15/00
NovaStar Home Equity Loan Asset Backed Certificates, Series 2000-2 Page 31
-------------------------------------------------------------------------------
All Non-Insured Initial Mortgage Loans with LTV in excess of 50%
<TABLE>
<S> <C>
Number of Loans: 32
Percentage of Fixed-Rate Mortgage Loans (By number of loans) 6.25%
Percentage of Adjustable-Rate Mortgage Loans
(By number of loans) 93.75%
Percentage of all Mortgage Loans (By number of loans) 100.00%
Aggregate Principal Balance $4,424,091.96
Percentage of Fixed-Rate Mortgage Loans (By principal balance) 2.24%
Percentage of Adjustable-Rate Mortgage Loans
(By principal balance) 97.76%
Percentage of all Mortgage Loans (by number of loans) 100.00%
Principal Balance as of the Cut-Off Date:
Average: $138,252.87
Range: $35,137.16 - $698,339.04
Coupon Rates:
Weighted Average: 9.095%
Range: 6.375% - 13.625%
Weighted Average Original Term to Maturity (months): 356
Remaining Term to Maturity (months):
Weighted Average: 329
Range: 177 - 360
Loan-to-Value Ratio at Origination:
Weighted Average: 75.46%
Range: 50.44% - 95.00%
</TABLE>
-------------------------------------------------------------------------------
FIRST UNION SECURITIES, INC.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT FIRST UNION SECURITIES, INC. IMMEDIATELY.
<PAGE>
NOVASTAR 2000-2
CLASS M-1 CASH FLOWS @ LIBOR + 320 BPS
ASSUMED M1 SPREAD IS 1 ML + 75 BPS
BREAK EVEN ANALYSIS
<TABLE>
<CAPTION>
Carryover Total Actual Expected
Period Date Balance Principal Interest Interest Interest Coupon Coupon (1 ML+ 75bps)
------ -------- ------- --------- -------- -------- --------- ------ --------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
0 9/28/00 6,800,000.00 0 0
1 10/25/00 6,800,000.00 0 53,907.00 53,907.00 10.57% 10.57
2 11/25/00 6,800,000.00 0 59,133.58 0.00 59,133.58 10.10% 10.57
3 12/25/00 6,800,000.00 0 59,014.31 882.354 59,896.67 10.57% 10.57
4 1/25/01 6,800,000.00 0 59,353.30 2,539.92 61,893.22 10.57% 10.57
5 2/25/01 6,800,000.00 0 59,554.20 2,339.02 61,893.22 10.57% 10.57
6 3/25/01 6,800,000.00 0 55,903.56 55,903.56 10.57% 10.57
7 4/25/01 6,800,000.00 0 59,976.33 1,916.90 61,893.22 10.57% 10.57
8 5/25/01 6,800,000.00 0 59,896.67 59,896.67 10.57% 10.57
9 6/25/01 6,800,000.00 0 60,428.84 1,464.38 61,893.22 10.57% 10.57
10 7/25/01 6,800,000.00 0 59,896.67 59,896.67 10.57% 10.57
11 8/25/01 6,800,000.00 0 60,918.48 974.739 61,893.22 10.57% 10.57
12 9/25/01 6,800,000.00 0 61,172.99 720.237 61,893.22 10.57% 10.57
13 10/25/01 6,800,000.00 0 59,896.67 59,896.67 10.57% 10.57
14 11/25/01 6,800,000.00 0 61,707.45 185.776 61,893.22 10.57% 10.57
15 12/25/01 6,800,000.00 0 59,896.67 59,896.67 10.57% 10.57
16 1/25/02 6,800,000.00 0 61,893.22 61,893.22 10.57% 10.57
17 2/25/02 6,800,000.00 0 61,893.22 61,893.22 10.57% 10.57
18 3/25/02 6,800,000.00 0 55,903.56 55,903.56 10.57% 10.57
19 4/25/02 6,800,000.00 0 61,893.22 61,893.22 10.57% 10.57
20 5/25/02 6,800,000.00 0 59,896.67 59,896.67 10.57% 10.57
21 6/25/02 6,800,000.00 0 61,893.22 61,893.22 10.57% 10.57
22 7/25/02 6,800,000.00 0 59,896.67 59,896.67 10.57% 10.57
23 8/25/02 6,800,000.00 0 61,893.22 61,893.22 10.57% 10.57
24 9/25/02 6,800,000.00 0 61,893.22 61,893.22 10.57% 10.57
25 10/25/02 6,800,000.00 0 59,896.67 59,896.67 10.57% 10.57
26 11/25/02 6,800,000.00 0 61,893.22 61,893.22 10.57% 10.57
27 12/25/02 6,800,000.00 0 59,896.67 59,896.67 10.57% 10.57
28 1/25/03 6,800,000.00 0 61,893.22 61,893.22 10.57% 10.57
29 2/25/03 6,800,000.00 0 61,893.22 61,893.22 10.57% 10.57
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
30 3/25/03 6,800,000.00 0 55,903.56 55,903.56 10.57% 10.57
31 4/25/03 6,800,000.00 0 61,893.22 61,893.22 10.57% 10.57
32 5/25/03 6,800,000.00 0 59,896.67 59,896.67 10.57% 10.57
33 6/25/03 6,800,000.00 0 61,893.22 61,893.22 10.57% 10.57
34 7/25/03 6,800,000.00 0 59,896.67 59,896.67 10.57% 10.57
35 8/25/03 6,800,000.00 0 61,893.22 61,893.22 10.57% 10.57
36 9/25/03 6,800,000.00 0 61,893.22 61,893.22 10.57% 10.57
37 10/25/03 6,487,277.19 312,722.82 59,896.67 59,896.67 10.57% 10.57
38 11/25/03 5,354,607.22 1,132,669.97 59,046.84 59,046.84 10.57% 10.57
39 12/25/03 5,218,667.02 135,940.20 47,165.17 47,165.17 10.57% 10.57
40 1/25/04 5,086,299.45 132,367.57 47,500.02 47,500.02 10.57% 10.57
41 2/25/04 4,957,300.86 128,998.59 46,295.22 46,295.22 10.57% 10.57
42 3/25/04 4,831,568.17 125,732.68 42,210.04 42,210.04 10.57% 10.57
43 4/25/04 4,709,019.08 122,549.09 43,976.67 43,976.67 10.57% 10.57
44 5/25/04 4,589,572.47 119,446.61 41,478.61 41,478.61 10.57% 10.57
45 6/25/04 4,473,149.74 116,422.73 41,774.03 41,774.03 10.57% 10.57
46 7/25/04 4,359,687.76 113,461.98 39,400.99 39,400.99 10.57% 10.57
47 8/25/04 4,249,107.95 110,579.81 39,681.64 39,681.64 10.57% 10.57
48 9/25/04 4,141,328.16 107,779.79 38,675.14 38,675.14 10.57% 10.57
49 10/25/04 4,036,276.24 105,051.92 36,478.20 36,478.20 10.57% 10.57
50 11/25/04 3,933,883.10 102,393.14 36,737.96 36,737.96 10.57% 10.57
51 12/25/04 3,834,081.42 99,801.69 34,650.95 34,650.95 10.57% 10.57
52 1/25/05 3,736,813.37 97,268.04 34,897.60 34,897.60 10.57% 10.57
53 2/25/05 3,642,007.18 94,806.20 34,012.27 34,012.27 10.57% 10.57
54 3/25/05 3,549,600.16 92,407.02 29,941.35 29,941.35 10.57% 10.57
55 4/25/05 3,459,531.76 90,068.40 32,308.26 32,308.26 10.57% 10.57
56 5/25/05 3,371,742.59 87,789.18 30,472.71 30,472.71 10.57% 10.57
57 6/25/05 3,286,174.92 85,567.66 30,689.41 30,689.41 10.57% 10.57
58 7/25/05 3,202,772.79 83,402.13 28,945.72 28,945.72 10.57% 10.57
59 8/25/05 3,121,481.11 81,291.68 29,151.46 29,151.46 10.57% 10.57
60 9/25/05 3,042,246.67 79,234.44 28,411.55 28,411.55 10.57% 10.57
61 10/25/05 2,965,017.18 77,229.49 26,797.12 26,797.12 10.57% 10.57
62 11/25/05 2,889,741.91 75,275.28 26,987.42 26,987.42 10.57% 10.57
63 12/25/05 2,816,371.38 73,370.53 25,453.81 25,453.81 10.57% 10.57
64 1/25/06 2,744,861.01 71,510.37 25,634.46 25,634.46 10.57% 10.57
65 2/25/06 2,675,160.02 69,700.99 24,983.57 24,983.57 10.57% 10.57
66 3/25/06 2,607,222.63 67,937.39 21,992.79 21,992.79 10.57% 10.57
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
67 4/25/06 2,541,004.20 66,218.42 23,730.80 23,730.80 10.57% 10.57
68 5/25/06 2,476,461.25 64,542.95 22,382.01 22,382.01 10.57% 10.57
69 6/25/06 2,413,551.39 62,909.87 22,540.61 22,540.61 10.57% 10.57
70 7/25/06 2,352,233.28 61,318.11 21,259.37 21,259.37 10.57% 10.57
71 8/25/06 2,292,466.67 59,766.61 21,409.90 21,409.90 10.57% 10.57
72 9/25/06 2,234,212.31 58,254.36 20,865.90 20,865.90 10.57% 10.57
73 10/25/06 2,177,431.93 56,780.38 19,679.69 19,679.69 10.57% 10.57
74 11/25/06 2,122,088.26 55,343.68 19,818.86 19,818.86 10.57% 10.57
75 12/25/06 2,068,144.94 53,943.32 18,692.06 18,692.06 10.57% 10.57
76 1/25/07 2,015,568.64 52,576.30 18,824.14 18,824.14 10.57% 10.57
77 2/25/07 1,964,322.65 51,245.99 18,345.59 18,345.59 10.57% 10.57
78 3/25/07 1,914,373.33 49,949.32 16,148.92 16,148.92 10.57% 10.57
79 4/25/07 1,865,687.88 48,685.45 17,424.52 17,424.52 10.57% 10.57
80 5/25/07 1,818,234.35 47,453.53 16,433.60 16,433.60 10.57% 10.57
81 6/25/07 1,771,981.57 46,252.78 16,549.47 16,549.47 10.57% 10.57
82 7/25/07 1,726,899.19 45,082.38 15,608.20 15,608.20 10.57% 10.57
83 8/25/07 1,682,957.60 43,941.59 15,718.14 15,718.14 10.57% 10.57
84 9/25/07 1,640,127.97 42,829.63 15,318.19 15,318.19 10.57% 10.57
85 10/25/07 1,598,382.17 41,745.80 14,446.79 14,446.79 10.57% 10.57
86 11/25/07 1,557,692.81 40,689.36 14,548.39 14,548.39 10.57% 10.57
87 12/25/07 1,518,033.17 39,659.64 13,720.68 13,720.68 10.57% 10.57
88 1/25/08 1,479,377.60 38,655.56 13,817.05 13,817.05 10.57% 10.57
89 2/25/08 1,441,700.34 37,677.27 13,465.21 13,465.21 10.57% 10.57
90 3/25/08 1,404,976.63 36,723.71 12,275.68 12,275.68 10.57% 10.57
91 4/25/08 1,369,182.38 35,794.25 12,788.02 12,788.02 10.57% 10.57
92 5/25/08 1,369,182.38 12,060.22 12,060.22 10.57% 10.57
93 6/25/08
94 7/25/08
95 8/25/08
</TABLE>
