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: November 5, 1998
(Date of earliest event reported)
Commission File No. 333-51375
PAINEWEBBER MORTGAGE ACCEPTANCE CORPORATION IV (as depositor under the Sale and
Servicing Agreement, dated as of November 1, 1998, relating to the Empire
Funding Home Loan Owner Trust 1998-3, Home Loan Asset Backed Notes, Series
1998-3)
PAINEWEBBER MORTGAGE ACCEPTANCE CORPORATION IV
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 06-1204982
- -------------------------------------------------------------------------------
(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
------------
The Empire Funding Home Loan Owner Trust 1998-3 (the "Issuer") was formed
pursuant to an owner trust agreement dated as of November 1, 1998 and entered
into by PaineWebber Mortgage Acceptance Corporation IV, as depositor (the
"Depositor"), Wilmington Trust Company, as owner trustee, U.S. Bank National
Association ("U.S. Bank"), as paying agent and Empire Funding Corp. ("Empire
Funding"). The Issuer issued the Home Loan Asset Backed Notes pursuant to an
indenture dated as of November 1, 1998 between the Issuer and U.S. Bank, as
indenture trustee.
As of the Closing Date, assets of the Issuer consist primarily of a Grantor
Trust Certificate evidencing 100% of the ownership interest in Empire Funding
Grantor Trust 1998-3 (the "Grantor Trust") formed pursuant to a grantor trust
agreement dated as of November 1, 1998 and entered into by the Depositor, U.S.
Bank, as grantor trustee and Empire Funding, as transferor and servicer, the
assets of which consist primarily of a pool of certain closed-end, fixed rate
home loans (the "Loans") as described herein which are either secured primarily
by second lien mortgages, deeds of trust or other similar security instruments
or unsecured.
The statistical information presented in the Prospectus Supplement, dated
November 3, 1998, concerning the Loans is based on the characteristics of a
portion of such Loans as of September 30, 1998. Attached hereto as Exhibit 99 to
this Form 8-K is information concerning all of the Loans as of October 31, 1998
(the "Cut-Off Date").
<PAGE>
ITEM 7. Financial Statements and Exhibits
---------------------------------
(c) Exhibits
Item 601(a)
of Regulation S-K
Exhibit No. Description
- ---------- -----------
(99) Information concerning the Loans as
of the Cut-Off Date
<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
November 20, 1998
By: /s/ Barbara J. Dawson
------------------------------------------
Name: Barbara J. Dawson
Title: Senior Vice President
<PAGE>
INDEX TO EXHIBITS
-----------------
Paper (P) or
Exhibit No. Description Electronic (E)
- ---------- ----------- --------------
(99) Information concerning the Loans E
as of the Cut-Off Date
Exhibit 99. Information concerning the Loans as of the Cut-Off Date*
As of the Cut-Off Date, the Loans consisted of 9,211 Loans with an
aggregate Principal Balance of totaling $299,607,585. As of the Cut-Off Date,
the Loans bear interest at fixed Loan Rates, which range from 6.00% per annum to
19.477% per annum and have a weighted average Loan Rate of approximately 13.64%
per annum. As of the Cut-Off Date, the Principal Balances of the Loans range
from $286 to $122,579 and average $32,527. As of the Cut-Off Date, the weighted
average remaining term to stated maturity of the Loans was approximately 234
months and the weighted average number of months that have elapsed since
origination was 3 months. As of the Cut-Off Date, 8,648 of the Loans (other than
Unsecured Loans) (representing approximately 98.23% of the Principal Balance as
of the Cut-Off Date) had a Combined Loan-to-Value Ratio in excess of 100%. As of
the Cut-Off Date, the weighted average Combined Loan-to-Value Ratio of the Loans
(other than the Unsecured Loans) was approximately 116.85%, with the highest
Combined Loan-to-Value Ratio being 133.00%. As of the Cut-Off Date, all of the
Loans have original stated maturities of not more than 25 years. As of the
Cut-Off Date, no Loan was scheduled to mature later than October 2023.
As of the Cut-Off Date, all of the Loans (other than Unsecured Loans) were
secured by Mortgaged Properties located in 49 states and the District of
Columbia. As of the Cut-Off Date, all of the Loans (other than Unsecured Loans)
were secured by Mortgaged Properties represented by the related borrowers to be
owner-occupied.
As of the Cut-Off Date, none of the Loans were 30 days or more past due. As
of the Cut-Off Date, the weighted average Credit Score for the Loans as
determined at origination was 681. As of the Cut-Off Date, 1.07% of the Loans
were unsecured. See "Underwriting Criteria" in this Prospectus Supplement.
The following tables are based on certain statistical characteristics with
respect to those Loans that comprise the Principal Balance as of the Cut-Off
Date. The sum of the dollar amounts and percentages in the following tables may
not equal the totals due to rounding.
- ----------------
* Capitalized terms used and not otherwise defined herein shall have the same
meanings ascribed to them in the Prospectus Supplement dated November 3, 1998
and the Prospectus dated November 3, 1998 (collectively referred to herein as
the "Prospectus"). The Prospectus has been filed with the Securities and
Exchange Commission pursuant to Rule 424(b)(5) under file number 333-51375.
<PAGE>
Geographic Distribution of Loans
<TABLE>
<CAPTION>
% of Total
Aggregate Aggregate
State Number of Loans Principal Balance Principal Balance
- ----------------------------------------------------------- --------------- ----------------- -----------------
<S> <C> <C> <C>
California.............................................. 1,008 $ 36,606,031 12.22%
Illinois................................................ 511 17,093,438 5.71
Indiana................................................. 504 16,452,898 5.49
Florida................................................. 519 16,053,265 5.36
Missouri................................................ 425 12,667,369 4.23
Arizona................................................. 367 11,948,580 3.99
Pennsylvania............................................ 362 11,851,270 3.96
Ohio.................................................... 384 11,723,469 3.91
Maryland................................................ 298 11,443,169 3.82
Michigan................................................ 338 11,396,947 3.80
Virginia................................................ 323 11,241,371 3.75
Georgia................................................. 313 10,504,081 3.51
North Carolina.......................................... 303 9,738,567 3.25
Colorado................................................ 238 7,848,269 2.62
Washington.............................................. 233 7,326,326 2.45
Minnesota............................................... 200 7,287,469 2.43
Kentucky................................................ 219 6,649,162 2.22
Kansas.................................................. 208 6,612,525 2.21
Wisconsin............................................... 189 6,496,417 2.17
Nevada.................................................. 181 6,290,945 2.10
Oklahoma................................................ 217 5,755,579 1.92
Iowa.................................................... 151 5,140,399 1.72
New Jersey.............................................. 133 4,944,440 1.65
Louisiana............................................... 142 4,450,595 1.49
South Carolina.......................................... 126 3,907,667 1.30
Nebraska................................................ 118 3,573,268 1.19
Idaho................................................... 101 3,189,981 1.06
New York................................................ 82 3,120,457 1.04
Utah.................................................... 90 3,085,052 1.03
Massachusetts........................................... 80 3,034,683 1.01
Connecticut............................................. 77 2,775,276 0.93
Tennessee............................................... 92 2,180,127 0.73
New Mexico.............................................. 63 2,167,650 0.72
Texas................................................... 218 1,923,409 0.64
Oregon.................................................. 62 1,902,189 0.63
New Hampshire........................................... 42 1,631,798 0.54
Mississippi............................................. 54 1,448,755 0.48
Hawaii.................................................. 35 1,311,332 0.44
Maine................................................... 30 973,581 0.32
Delaware................................................ 25 917,947 0.31
Rhode Island............................................ 26 904,923 0.30
Arkansas................................................ 28 814,014 0.27
Montana................................................. 20 664,199 0.22
Alaska.................................................. 16 629,622 0.21
Wyoming................................................. 19 583,402 0.19
Vermont................................................. 10 373,695 0.12
West Virginia........................................... 13 353,118 0.12
South Dakota............................................ 8 316,704 0.11
North Dakota............................................ 8 266,674 0.09
District of Columbia.................................... 2 35,480 0.01
----- --------------- -------
Total.......................................... 9,211 $ 299,607,585 100.00%
===== =============== =======
</TABLE>
<PAGE>
Principal Balances
<TABLE>
<CAPTION>
% of Total
Aggregate Aggregate
Range of Principal Balances Number of Loans Principal Balance Principal Balance
- --------------------------------------------------------- --------------- ------------------ -----------------
<S> <C> <C> <C>
$10,000 or less......................................... 448 $ 2,551,024 0.85%
$10,000.01 to $20,000................................... 1,198 20,194,711 6.74
$20,000.01 to $30,000................................... 2,933 75,455,410 25.18
$30,000.01 to $40,000................................... 2,468 86,230,727 28.78
$40,000.01 to $50,000................................... 1,256 57,188,366 19.09
$50,000.01 to $60,000................................... 404 22,415,597 7.48
$60,000.01 to $70,000................................... 314 20,244,767 6.76
$70,000.01 to $80,000................................... 127 9,441,691 3.15
$80,000.01 or greater................................... 63 5,885,292 1.96
----- --------------- -------
Total.......................................... 9,211 $ 299,607,585 100.00%
===== =============== =======
</TABLE>
As of the Cut-Off Date, the average Cut-Off Date Principal Balance of the
Loans was $32,527.
Loan Rates
<TABLE>
<CAPTION>
% of Total
Aggregate Aggregate
Range of Loan Rates Number of Loans Principal Balance Principal Balance
- --------------------------------------------------------- --------------- ------------------ -----------------
<S> <C> <C> <C>
7.000% and less..................................... 1 $ 34,662 0.01%
9.001% to 9.500%................................. 1 3,278 0.00
9.501% to 10.000%................................. 6 71,005 0.02
10.001% to 10.500%................................. 14 426,803 0.14
10.501% to 11.000%................................. 85 3,358,814 1.12
11.001% to 11.500%................................. 538 20,479,502 6.84
11.501% to 12.000%................................. 536 20,887,818 6.97
12.001% to 12.500%................................. 558 18,979,102 6.33
12.501% to 13.000%................................. 1,883 60,820,067 20.30
13.001% to 13.500%................................. 726 25,797,823 8.61
13.501% to 14.000%................................. 1,996 63,801,117 21.29
14.001% to 14.500%................................. 564 17,664,371 5.90
14.501% to 15.000%................................. 953 28,988,118 9.68
15.001% to 15.500%................................. 243 7,646,055 2.55
15.501% to 16.000%................................. 431 12,464,726 4.16
16.001% to 16.500%................................. 333 9,238,816 3.08
16.501% to 17.000%................................. 186 4,998,607 1.67
17.001% to 17.500%................................. 56 1,365,986 0.46
17.501% to 18.000%................................. 79 2,019,528 0.67
18.001% to 18.500%................................. 20 528,958 0.18
18.501% to 19.000%................................. 1 29,819 0.01
19.001% to 19.500%................................. 1 2,610 0.00
----- --------------- -------
Total.......................................... 9,211 $ 299,607,585 100.00%
===== =============== =======
</TABLE>
As of the Cut-Off Date, the weighted average Loan Rate of the Loans was
approximately 13.64% per annum.
<PAGE>
Lien Priority
<TABLE>
<CAPTION>
% of Total
Aggregate Aggregate
Lien Priority Number of Loans Principal Balance Principal Balance
- --------------------------------------------------------- --------------- ------------------ -----------------
<S> <C> <C> <C>
First Lien.............................................. 26 $ 904,906 0.30%
Second Lien............................................. 8,698 295,501,336 98.63
Third Lien.............................................. 1 2,610 0.00
Unsecured............................................... 486 3,198,733 1.07
----- ---------------- -------
Total.......................................... 9,211 $ 299,607,585 100.00%
===== ================ =======
</TABLE>
Combined Loan-to-Value Ratios
<TABLE>
<CAPTION>
% of Total
Range of Combined Aggregate Aggregate
Loan-to-Value Ratios Number of Loans Principal Balance Principal Balance
- --------------------------------------------------------- --------------- ------------------ -----------------
<S> <C> <C> <C>
Unsecured............................................. 486 $ 3,198,733 1.07%
5.01% to 10.00%.................................. 1 9,588 0.00
10.01% to 15.00%.................................. 1 4,506 0.00
15.01% to 20.00%.................................. 3 58,662 0.02
20.01% to 25.00%.................................. 1 10,650 0.00
25.01% to 30.00%.................................. 5 82,063 0.03
30.01% to 35.00%.................................. 4 119,191 0.04
35.01% to 40.00%.................................. 8 175,067 0.06
40.01% to 45.00%.................................. 5 163,644 0.05
45.01% to 50.00%.................................. 6 131,911 0.04
50.01% to 55.00%.................................. 2 67,702 0.02
55.01% to 60.00%.................................. 1 25,930 0.01
60.01% to 65.00%.................................. 3 57,733 0.02
75.01% to 80.00%.................................. 1 10,846 0.00
85.01% to 90.00%.................................. 7 274,720 0.09
90.01% to 95.00%.................................. 7 219,109 0.07
95.01% to 100.00%.................................. 22 693,445 0.23
100.01% to 105.00%.................................. 696 21,007,018 7.01
105.01% to 110.00%.................................. 1,125 34,483,481 11.51
110.01% to 115.00%.................................. 1,693 54,280,661 18.12
115.01% to 120.00%.................................. 1,916 66,022,928 22.04
120.01% to 125.00%.................................. 3,202 117,894,731 39.35
125.01% or greater.................................... 16 615,264 0.21
----- ---------------- -------
Total.......................................... 9,211 $ 299,607,585 100.00%
===== ================ =======
</TABLE>
As of the Cut-Off Date, the weighted average Combined Loan-to-Value Ratio
of the Loans (excluding the Unsecured Loans) was approximately 116.85%.
<PAGE>
Months Since Origination
<TABLE>
<CAPTION>
% of Total
Loan Age Aggregate Aggregate
(in months) Number of Loans Principal Balance Principal Balance
- --------------------------------------------------------- --------------- ------------------ -----------------
<S> <C> <C> <C>
Less than one........................................... 146 $ 4,766,066 1.59%
1 to 3.................................................. 6,780 231,856,302 77.39
4 to 6.................................................. 1,528 47,320,608 15.79
7 to 9.................................................. 461 8,933,068 2.98
10 or greater........................................... 296 6,731,541 2.25
----- ---------------- -------
Total.......................................... 9,211 $ 299,607,585 100.00%
===== ================ =======
</TABLE>
As of the Cut-Off Date, the weighted average number of months since
origination of the Loans was 3 months.
Remaining Terms to Maturity
<TABLE>
<CAPTION>
% of Total
Range of Remaining Terms to Maturity Aggregate Aggregate
(in months) Number of Loans Principal Balance Principal Balance
- --------------------------------------------------------- ----------------- ------------------ -----------------
<S> <C> <C> <C>
0 - 30............................................. 36 $ 114,613 0.04%
31 - 60............................................. 180 1,114,505 0.37
61 - 90............................................. 81 753,297 0.25
91 - 120............................................. 974 21,734,444 7.25
121 - 150............................................. 60 1,856,432 0.62
151 - 180............................................. 2,950 93,972,756 31.37
181 - 210............................................. 4 178,350 0.06
211 - 240............................................. 1,493 50,217,372 16.76
271 - 300............................................. 3,433 129,665,815 43.28
----- ---------------- -------
Total.......................................... 9,211 $ 299,607,585 100.00%
===== ================ =======
</TABLE>
As of the Cut-Off Date, the weighted average remaining term to maturity of
the Loans was approximately 234 months.
<PAGE>
Original Terms to Maturity
<TABLE>
<CAPTION>
% of Total
Original Term to Maturity Aggregate Aggregate
(in months) Number of Loans Principal Balance Principal Balance
- --------------------------------------------------------- ----------------- ------------------ -----------------
<S> <C> <C> <C>
0 - 30............................................ 6 $ 12,871 0.00%
31 - 60............................................ 209 1,191,848 0.40
61 - 90............................................ 66 654,954 0.22
91 - 120............................................ 990 21,857,186 7.30
121 - 150............................................ 60 1,856,432 0.62
151 - 180............................................ 2,950 93,972,756 31.37
181 - 210............................................ 4 178,350 0.06
211 - 240............................................ 1,493 50,217,372 16.76
271 - 300............................................ 3,433 129,665,815 43.28
----- ---------------- -------
Total.......................................... 9,211 $ 299,607,585 100.00%
===== ================ =======
</TABLE>
As of the Cut-Off Date, the weighted average original term to maturity of
the Loans was approximately 237 months.
Credit Score
<TABLE>
<CAPTION>
% of Total
Aggregate Aggregate
Range of Credit Scores Number of Loans Principal Balance Principal Balance
- --------------------------------------------------------- ----------------- ------------------ -----------------
<S> <C> <C> <C>
620 to 639.............................................. 374 $ 9,870,556 3.29%
640 to 659.............................................. 2,418 71,552,532 23.88
660 to 679.............................................. 2,346 78,772,049 26.29
680 to 699.............................................. 1,650 57,295,957 19.12
700 to 719.............................................. 1,246 46,540,481 15.53
720 to 739.............................................. 650 21,623,230 7.22
740 to 759.............................................. 321 9,725,589 3.25
760 to 779.............................................. 137 3,169,241 1.06
780 to 799.............................................. 51 857,673 0.29
800 to 819.............................................. 17 193,353 0.06
820 to 839.............................................. 1 6,924 0.00
----- ---------------- -------
Total.......................................... 9,211 $ 299,607,585 100.00%
===== ================ =======
</TABLE>
As of the Cut-Off Date, the weighted average Credit Score as determined
at origination of the Loans was 681.
<PAGE>
Debt-to-Income Ratio
<TABLE>
<CAPTION>
% of Total
Range of Aggregate Aggregate
Debt-to-Income Ratios Number of Loans Principal Balance Principal Balance
- --------------------------------------------------------- ----------------- ------------------ -----------------
<S> <C> <C> <C>
20.00 or less........................................... 354 $ 8,435,460 2.82%
20.01 to 25.00.......................................... 806 24,203,272 8.08
25.01 to 30.00.......................................... 1,809 58,020,173 19.37
30.01 to 35.00.......................................... 2,048 66,924,102 22.34
35.01 to 40.00.......................................... 2,476 81,946,451 27.35
40.01 to 45.00.......................................... 1,579 55,375,046 18.48
45.01 to 50.00.......................................... 134 4,550,376 1.52
Greater than 50.00...................................... 5 152,705 0.05
----- ---------------- -------
Total.......................................... 9,211 $ 299,607,585 100.00%
===== ================ =======
</TABLE>
As of the Cut-Off Date, the weighted average debt-to-income ratio as
determined at origination of the Loans was approximately 34.29.
