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: June 17, 1998
(Date of earliest event reported)
Commission File No. 333-40467
PAINEWEBBER MORTGAGE ACCEPTANCE CORPORATION IV (as depositor under the Sale and
Servicing Agreement, dated as of May 1, 1997, relating to the Master Financial
Asset Securitization Trust 1998-2, Home Loan Asset Backed Notes, Series 1998-2)
PAINEWEBBER MORTGAGE ACCEPTANCE CORPORATION IV
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Delaware 06-1204982
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(State of Incorporation) (I.R.S. Employer Identification No.)
1285 Avenue of the Americas
New York, New York 10019
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Address of principal executive offices (Zip Code)
(212) 713-2000
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Registrant's Telephone Number, including area code
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
<PAGE>
ITEM 5. Other Events
On June 17, 1998 Master Financial Asset Securitization Trust 1998-2
(the "Issuer") completed the purchase of the Subsequent Loans pursuant to
Section 2.06 of the Sale and Servicing Agreement, dated as of May 1, 1997 (the
"Sale and Servicing Agreement") among the Issuer, PaineWebber Mortgage
Acceptance Corporation IV, a Delaware corporation (the "Registrant"), Master
Financial, Inc. (the "Transferor"), and The Bank of New York (the "Indenture
Trustee"). The Subsequent Loans were transferred to the Issuer pursuant to the
Subsequent Transfer Agreement, dated as of June 17, 1998 (the "Subsequent
Transfer Agreement"), among the Transferor, the Issuer and the Indenture
Trustee. Attached as Exhibit 99 are certain characteristics of all the Loans as
of May 31, 1998 (the "Cut-Off Date").
Capitalized terms used herein and not defined herein have the same
meanings ascribed to such terms in the Sale and Servicing Agreement.
ITEM 7. Financial Statements and Exhibits
(c) Exhibits
Item 601(a)
of Regulation S-K
Exhibit No. Description
- ------------ ------------
99 Description of the Loans
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PAINEWEBBER MORTGAGE
ACCEPTANCE CORPORATION IV
June __, 1998
By: /s/ Barbara Dawson
------------------
Name: Barbara Dawson
Title: Senior Vice President
<PAGE>
INDEX TO EXHIBITS
Paper (P) or
Exhibit No. Description Electronic(E)
- ----------- ----------- -------------
99 Description of the Loans E
The Loans included in the Pool have the characteristics set forth below and
in the tables beginnings on the following page. Unless otherwise indicated, all
percentages and weighted averages are percentages and weighted averages of the
Cut-Off Date Pool Principal Balance.
Loan Statistics
As of May 31, 1998 (the "Cut-Off Date"), the Loans consisted of 6,246 Loans
with an aggregate Principal Balance totaling $213,936,198 (the "Cut-Off Date
Pool Principal Balance"). The Loans bear interest at fixed Loan Rates which
range from 8.79% per annum to 18.49% per annum and have a weighted average Loan
Rate of approximately 13.7% per annum. The Cut-Off Date Principal Balances of
the Loans range from $20 to $100,000 and average $34,252. As of the Cut-Off
Date, the weighted average remaining term to stated maturity of the Loans was
approximately 237 months and the weighted average number of months that have
elapsed since origination was 4 months. As of the Cut-Off Date, the weighted
average Combined Loan-to-Value Ratio of the Loans which were Mortgage Loans was
approximately 114.32%, with the highest Combined Loan-to-Value Ratio being
143.84%. As of the Cut-Off Date, 5,180 of the Loans (representing approximately
90.19% of the Cut-Off Date Pool Principal Balance) had a Combined Loan-to-Value
Ratio in excess of 100%. All of the Loans are fully amortizing loans having
original stated maturities of not more than 25 years. No Loan is scheduled to
mature later than June 28, 2023.
As of the Cut-Off Date, all of the Loans (by Cut-Off Date Pool Principal
Balance) were Mortgage Loans secured by Mortgaged Properties located in 47
states, the District of Columbia and Puerto Rico. As of the Cut-Off Date,
substantially all of the Loans (by Cut-Off Date Pool Principal Balance) were
secured by Mortgaged Properties represented by the related Obligors to be
owner-occupied.
As of the Cut-Off Date, 14 Loans, representing approximately 0.16% of the
Cut-Off Date Pool Principal Balance, were 30 days or more past due. The weighted
average Credit Score for the Loans was 680.
<PAGE>
The sum of the dollar amounts and percentages in the following tables may
not equal the totals due to rounding.
Geographic Distribution of Loans
% of Cut-Off
Aggregate Cut-Off Date Pool
Number Date Principal Principal
State of Loans Balance Balance
----- -------- ------------- -------
California 1,224 $54,675,515 25.56%
Maryland 882 19,854,197 9.28
Pennsylvania 572 14,519,690 6.79
Virginia 537 11,145,271 5.21
Michigan 260 10,173,964 4.76
Washington 229 9,522,124 4.45
Florida 205 7,595,062 3.55
Arizona 175 7,015,757 3.28
Ohio 162 6,195,502 2.90
New York 148 5,830,722 2.73
Colorado 133 5,446,025 2.55
Nevada 133 5,294,028 2.47
North Carolina 129 5,060,165 2.37
Oregon 115 4,609,933 2.15
Indiana 160 4,194,259 1.96
Connecticut 83 3,419,719 1.60
Missouri 91 3,134,983 1.47
Kansas 82 2,976,526 1.39
Tennessee 84 2,837,949 1.33
Oklahoma 77 2,746,271 1.28
Minnesota 74 2,717,830 1.27
Wisconsin 61 2,580,365 1.21
Massachusetts 49 2,132,841 1.00
Utah 47 2,082,464 0.97
Idaho 54 1,845,817 0.86
Alaska 40 1,780,919 0.83
Louisiana 49 1,708,697 0.80
South Carolina 46 1,493,023 0.70
Kentucky 40 1,405,215 0.66
Hawaii 25 1,146,954 0.54
Iowa 28 1,036,860 0.48
New Hampshire 27 983,158 0.46
New Mexico 27 915,001 0.43
Rhode Island 24 885,635 0.41
Delaware 38 772,169 0.36
Nebraska 21 722,996 0.34
Arkansas 22 647,219 0.30
Montana 18 619,923 0.29
District of Columbia 22 481,163 0.22
Mississippi 12 470,625 0.22
Maine 11 423,343 0.20
Wyoming 6 284,721 0.13
Illinois 4 162,454 0.08
West Virginia 5 154,675 0.07
Texas 10 147,524 0.07
New Jersey 2 49,591 0.02
Georgia 1 24,886 0.01
North Dakota 1 6,614 0.00
Puerto Rico 1 5,855 0.00
- ----- ----
Total......... 6,246 $213,936,198 100.00%
===== ============ =======
Cut-Off Date Principal Balances
% of Cut-Off
Range of Cut-Off Aggregate Cut-Off Date Pool
Date Principal Number Date Principal Principal
Balances of Loans Balance Balance
-------- -------- ------- -------
$10,000 or less................ 905 $5,630,149 2.63%
$10,000.01 - $20,000........... 710 10,656,420 4.98
$20,000.01 - $30,000........... 1,217 31,603,534 14.77
$30,000.01 - $40,000........... 1,276 44,891,970 20.98
$40,000.01 - $50,000........... 1,067 49,829,225 23.29
$50,000.01 - $60,000........... 405 22,433,867 10.49
$60,000.01 - $70,000........... 306 19,965,852 9.33
$70,000.01 - $80,000........... 245 18,235,129 8.52
$80,000.01 - $90,000 45 3,824,083 1.79
$90,000.01 - $100,000.......... 70 6,865,969 3.21
-- --------- ----
Total..................... 6,246 $213,936,198 100.00%
===== ============ =======
As of the Cut-Off Date, the average Cut-Off Date Principal Balance of
the Loans was $34,252.
Loan Rates
% of Cut-Off
Aggregate Cut-Off Date Pool
Range of Loan Number Date Principal Principal
Rates of Loans Balance Balance
----- -------- ------- -------
8.001% - 9.000%............ 3 $46,629 0.02%
9.001% - 10.000% .......... 39 953,008 0.45
10.001% - 11.000%........... 91 1,871,171 0.87
11.001% - 12.000%........... 570 19,397,453 9.07
12.001% - 13.000%........... 1,983 59,297,982 27.72
13.001% - 14.000%........... 1,605 60,789,219 28.41
14.001% - 15.000%........... 1,145 43,913,851 20.53
15.001% - 16.000%........... 607 21,266,092 9.94
16.001% - 17.000%........... 176 5,525,532 2.58
17.001% - 18.000%........... 23 758,359 0.35
18.001% - 19.000%........... 4 116,902 0.05
- ------- ----
Total................... 6,246 $213,936,198 100.00%
===== ============ =======
As of the Cut-Off Date, the weighted average Loan Rate of the Loans was
approximately 13.7% per annum.
<PAGE>
Lien Priority
% of Cut-Off
Aggregate Cut-Off Date Pool
Number Date Principal Principal
Lien Priority of Loans Balance Balance
- ------------- -------- ------- -------
First Lien................. 10 $408,559 0.19%
Second Lien................ 6,206 212,909,084 99.52
Third Lien................. 30 618,555 0.29
-- ------- --------
Total...................... 6,246 $213,936,198 100.00%
===== ============ =======
Combined Loan-to-Value Ratios
% of Cut-Off
Aggregate Cut-Off Date Pool
Range of Combined Number Date Principal Principal
Loan-to-Value Ratios of Loans Balance Balance
-------------------- -------- ------- -------
30.01% - 35.00%......... 2 $74,947 0.04%
35.01% - 40.00%......... 5 102,791 0.05
40.01% - 45.00%......... 3 79,629 0.04
45.01% - 50.00%......... 3 93,655 0.04
50.01% - 55.00%......... 7 152,401 0.07
55.01% - 60.00%......... 6 174,080 0.08
60.01% - 65.00%......... 6 164,518 0.08
65.01% - 70.00%......... 12 186,296 0.09
70.01% - 75.00%......... 16 324,482 0.15
75.01% - 80.00%......... 41 935,822 0.44
80.01% - 85.00%......... 76 1,504,724 0.70
85.01% - 90.00%......... 155 2,810,247 1.31
90.01% - 95.00%......... 283 5,180,924 2.42
95.01% - 100.00%......... 451 9,210,188 4.31
100.01% - 105.00%......... 647 16,606,856 7.76
105.01% - 110.00%......... 728 22,533,559 10.53
110.01% - 115.00%......... 853 30,742,446 14.37
115.01% - 120.00%......... 994 39,064,792 18.26
120.01% - 125.00%......... 1,894 82,069,732 38.36
125.01% and greater......... 64 1,924,108 0.90
----- ------------ -------
Total....................... 6,246 $213,936,198 100.00%
===== ============ =======
As of the Cut-Off Date, the weighted average Combined Loan-to-Value
Ratio of the Loans (excluding the Unsecured Loans) was approximately 114.32%.
<PAGE>
Months Since Origination
% of Cut-Off
Aggregate Cut-Off Date Pool
Loan Age Number Date Principal Principal
(in months) of Loans Balance Balance
---------- -------- ----------------- -----------
1 or Less................... 1,583 $66,003,082 30.85%
2 - 12..................... 3,500 138,727,869 64.85
13 - 24..................... 269 3,171,374 1.48
25 - 36..................... 437 3,722,227 1.74
37 - 48..................... 400 2,135,127 1.00
49 - 60..................... 55 145,625 0.07
61 - 72..................... 2 30,894 0.01
----- ------------ -------
Total.................. 6,246 $213,936,198 100.00%
===== ============ =======
As of the Cut-Off Date, the weighted average number of months since
origination of the Loans was 4 months.
Remaining Terms to Maturity
Range of
Remaining % of Cut-Off
Terms to Aggregate Cut-Off Date Pool
Maturity Number Date Principal Principal
(in months) of Loans Balance Balance
----------- -------- ------- -------
1 - 30 .............
685 $3,930,041 1.84%
31 - 60 ............. 501 5,420,933 2.53
61 - 90.............. 15 301,364 0.14
91 - 120............. 213 6,596,120 3.08
121 - 150............. 5 166,790 0.08
151 - 180............. 1,542 55,810,929 26.09
181 - 210............. 3 71,723 0.03
211 - 240............. 1,085 42,539,649 19.88
271 - 300............. 2,197 99,098,649 46.32
----- ---------- -----
Total................. 6,246 $213,936,198 100.00%
===== ============ =======
As of the Cut-Off Date, the weighted average remaining term to maturity
of the Loans was approximately 237 months.
<PAGE>
Original Terms to Maturity
Original % of Cut-Off
Term to Aggregate Cut-Off Date Pool
Maturity Number Date Principal Principal
(in months) of Loans Balance Balance
----------- -------- ----------------- -----------
1 - 119......... 1,202 $9,727,734 4.55%
120 - 179......... 218 6,731,256 3.15
180 - 239......... 1,539 55,736,294 26.05
240 - 299......... 1,090 42,642,266 19.93
300 - 360......... 2,197 99,098,649 46.32
----- ---------- -----
Total........ 6,246 $213,936,198 100.00%
===== ============ =======
As of the Cut-Off Date, the weighted average original term to maturity
of the Loans was approximately 240 months.
Credit Score
% of Cut-Off
Aggregate Cut-Off Date Pool
Range of Credit Number Date Principal Principal
Scores of Loans Balance Balance
------ -------- ------- -------
below 620 .................. 35 $976,964 0.46%
620 to 639.................. 712 19,525,367 9.13
640 to 659.................. 1,211 41,799,130 19.54
660 to 679.................. 1,307 49,874,892 23.31
680 to 699.................. 1,170 46,005,118 21.50
700 to 719.................. 853 30,553,281 14.28
720 to 739.................. 486 14,902,782 6.97
740 to 759.................. 259 6,626,106 3.10
760 to 779.................. 158 2,574,018 1.20
780 to 799.................. 38 850,588 0.40
800 and greater............. 17 247,952 0.12
----- ------------ -------
Total.................. 6,246 $213,936,198 100.00%
===== ============ =======
As of the Cut-Off Date, the weighted average Credit Score of the Loans
was 680.
<PAGE>
Debt-to-Income Ratio
% of Cut-Off
Range of Aggregate Cut-Off Date Pool
Debt-to-Income Number Date Principal Principal
Ratios of Loans Balance Balance
------ -------- ----------------- ------------
20.00 or less................ 95 $2,586,872 1.21%
20.01 to 25.00............... 230 7,170,362 3.35
25.01 to 30.00............... 584 18,749,744 8.76
30.01 to 35.00............... 1,084 34,007,386 15.90
35.01 to 40.00............... 1,515 47,261,973 22.09
40.01 to 45.00............... 1,785 62,413,006 29.17
45.01 to 50.00............... 844 36,647,667 17.13
50.01 to 55.00............... 101 4,745,869 2.22
Greater than 55.00........... 8 353,320 0.17
----- ------------ -------
Total........................ 6,246 $213,936,198 100.00%
===== ============ =======
As of the Cut-Off Date, the weighted average debt-to-income ratio of
the Loans was approximately 38.7%.
