<PAGE>
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, as amended
Date of Report (Date of earliest event reported): August 12, 1999
CHEC ASSET RECEIVABLE CORPORATION
(Exact name of Registrant as Specified in Charter)
Nevada 333-54027 75-277-0582
(State or Other (Commission (IRS Employer
(Jurisdiction of Incorporation) File Number) Identification No.)
2728 North Harwood Street, Dallas, Texas 75201
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (214) 981-5045
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
Item 5. Other Events.
Filing of Computational Materials.
Pursuant to Rule 424(b) under the Securities Act of 1933, as amended, CHEC Asset
Receivable Corporation (the "Depositor") will file a prospectus and prospectus
supplement with the Securities and Exchange Commission relating to its Centex
Home Equity Loan Trust 1999-3, Centex Home Equity Loan Asset-Backed
Certificates, Series 1999-3 (the "Certificates").
In connection with the offering of the Certificates of the Depositor, Lehman
Brothers Inc. prepared certain materials (the "Computational Materials") some or
all of which were distributed by Lehman Brothers Inc., Chase Securities Inc. and
Prudential Securities Incorporated (the "Underwriters") to their potential
investors. Although the Depositor provided the Underwriters with certain
information regarding the characteristics of the Home Equity Loans in the
related portfolio, it did not participate in the preparation of the
Computational Materials. The Computational Materials are attached hereto as
Exhibit 99.1. The legends which Chase Securities Inc. and Prudential Securities
Incorporated placed on the Computational Materials are attached hereto as
Exhibit 99.2 and Exhibit 99.3, respectively.
Also filed hereby is the consent of PricewaterhouseCoopers LLP, independent
accountants, attached hereto as Exhibit 23.1.
Item 7. Financial statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
Exhibit No.
23.1 Consent of PricewaterhouseCoopers LLP, independent
accountants.
99.1 Computational Materials.
99.2 Legend of Chase Securities Inc. for Computational Materials.
99.3 Legend of Prudential Securities Incorporated for
Computational Materials.
<PAGE>
SIGNATURES
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.
CHEC ASSET RECEIVABLE CORPORATION
By: /s/ Anthony H. Barone
---------------------------
Name: Anthony H. Barone
Title: President
Date: August 19, 1999
<PAGE>
EXHIBIT INDEX
Sequentially
Exhibit Number Description Numbered Page
- -------------- ----------- -------------
23.1 Consent of PricewaterhouseCoopers LLP,
independent accountants.
99.1 Computational Materials.
99.2 Legend of Chase Securities Inc. for
Computational Materials.
99.3 Legend of Prudential Securities Incorporated
for Computational Materials.
<PAGE>
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the Prospectus Supplement of
CHEC Asset Receivable Corporation, relating to Centex Home Equity Loan Trust
1999-3, of our report, dated February 2, 1999, on our audits of the consolidated
financial statements and financial statement schedules of MBIA Insurance
Corporation and Subsidiaries as of December 31, 1998 and 1997 and for each of
the three years in the period ended December 31, 1998. We also consent to the
reference to our firm under the caption "Experts".
By: /s/ PricewaterhouseCoopers LLP
-------------------------------
August 18, 1999
<PAGE>
LEHMAN BROTHERS Asset-Backed Securities
DERIVED INFORMATION
[LOGO]
CENTEX
HOME EQUITY
CORPORATION
$415,000,000 Certificates (approximate)
Centex Home Equity Loan Trust 1999-3
Centex Home Equity Corp. (Seller & Servicer)
CHEC Asset Receivable Corp. (Depositor)
- --------------------------------------------------------------------------------
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, losses and other
matters, including, but not limited to, the assumptions described in the
Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained in
the Offering Document).
<PAGE>
LEHMAN BROTHERS 2
Centex Home Equity Loan Trust 1999-3
<TABLE>
<CAPTION>
Offered Certificates - To 10% Call
Est. Est. Prin. Expected Stated Expected
Approx. Tsy. WAL Window Final Final Ratings
Class Size Group Type Bmark (yrs) (mos) Maturity Maturity (S&P/Moody's)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 246,000,000 I This Class is not available AAA/Aaa
A-2 145,000,000 II Flt - PT 1 mo LI 2.78 1 - 94 6/25/07 10/25/30 AAA/Aaa
A-3 24,000,000 II Fxd - NAS Curve 1.96 18 - 30 2/25/02 10/25/30 AAA/Aaa
</TABLE>
<TABLE>
<CAPTION>
Sensitivity Analysis - To 10% Call
<S> <C> <C> <C> <C> <C> <C> <C>
Group I % of PPC 50.0% 75.0% 100.0% 120.0% 150.0% 200.0% 250.0%
Group II CPR 11.0% 16.5% 22.0% 28.0% 33.0% 44.0% 55.0%
Class A-2
Avg. Life (yrs) 7.43 4.98 3.64 2.78 2.24 1.50 1.03
Window (mo) 1 - 212 1 - 152 1 - 115 1 - 94 1 - 76 1 - 55 1 - 42
Expected Final Mat. 4/25/17 4/25/12 3/25/09 6/25/07 12/25/05 3/25/04 2/25/03
Class A-3
Avg. Life (yrs) 2.46 2.18 2.04 1.96 1.92 1.88 1.87
Mod. Dur. (yrs) 2.17 1.94 1.83 1.76 1.73 1.70 1.69
Window (mo) 18 - 43 18 - 36 18 - 32 18 - 30 18 - 29 18 - 29 18 - 29
Expected Final Mat. 3/25/03 8/25/02 4/25/02 2/25/02 1/25/02 1/25/02 1/25/02
Yield at 99.98480 7.215 7.190 7.175 7.165 7.160 7.155 7.153
</TABLE>
Pricing Speed
Group I 120% PPC
100% PPC assumes that prepayments start at 4% CPR in month one,
increase by approximately 1.455% each month to 20% CPR in month
twelve, and remain at 20% CPR thereafter.
Group II 28% CPR
- --------------------------------------------------------------------------------
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, losses and other
matters, including, but not limited to, the assumptions described in the
Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained in
the Offering Document).
<PAGE>
LEHMAN BROTHERS 3
Terms of the Offering
Issuer: Centex Home Equity Loan Trust 1999-3
Offered Certificates: $246,000,000 Group I Certificates
$169,000,000 Group II Certificates
Group I Certificates: Class A-1 (This class is not available)
Group II Certificates: Class A-2 and Class A-3
Depositor: CHEC Asset Receivable Corporation
Seller and Servicer: Centex Home Equity Corporation
Certificate Insurer: MBIA Insurance Corporation
Expected Settlement Date: August 26, 1999 through DTC, Euroclear
and CEDEL
Distribution Date: 25th of each month, or the next
succeeding Business Day (First
Distribution Date: September 27, 1999)
Cut-Off Date: August 1, 1999
Delay Days: 24 days on Class A-1 and Class A-3
0 days on Class A-2
Day Count: 30/360 on Class A-1 and Class A-3
Act/360 on Class A-2
Interest Accrual Period: Accrues during the month preceding a
Distribution Date on Class A-1 and
Class A-3
Accrues from the last Distribution Date
(or the Closing Date in the case of the
first Distribution Date) through the day
preceding the current Distribution Date
on Class A-2
Cleanup Call The entire deal is eligible for call
when the combined Principal Balance of
the Group I and Group II Mortgage Loans
is less than 10% of sum the aggregate
Principal Balance of the Mortgage Loans
delivered on the Cut-Off Date plus the
Initial Prefunding Account Deposit
Servicing Fee: 0.50% of the aggregate Principal Balance
of the Mortgage Loans
Denomination: $1,000 and multiples of $1 in excess
thereof
SMMEA Eligibility: The Certificates are not expected to be
SMMEA eligible
ERISA Eligibility: The Certificates are expected to be ERISA
eligible
Tax Status: REMIC for federal income tax purposes
Mortgage Loan Pool: o Loan Group I: Consists of all
Mortgage Loans which accrue interest
at fixed rates
o Loan Group II: Consists of all
Mortgage Loans which accrue interest
at adjustable rates, including those
loans which bear interest at fixed
rates for two years before beginning
to adjust
- --------------------------------------------------------------------------------
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, losses and other
matters, including, but not limited to, the assumptions described in the
Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained in
the Offering Document).
<PAGE>
LEHMAN BROTHERS 4
Terms of the Offering (continued)
Capitalized Interest Account: o Certain amounts will be deposited in
a Capitalized Interest Account to
cover interest payments on the
securities during the Prefunding
Period.
Prefunding Account: o An amount equal to $[103,901,097.12]
will be deposited in a Prefunding
Account on the Closing Date.
o Group I Initial Prefunding Account
Deposit: $[61,635,253.27]
Group II Initial Prefunding Account
Deposit: $[42,265,843.85]
o Amounts in this account will be used
to purchase additional loans to be
added to the trust up to [3] months
after the Closing Date. Any amounts
remaining in this account at the end
of the Prefunding Period will be
distributed to the Certificates as a
payment of principal on the next
Distribution Date
Credit Enhancement: o MBIA Insurance Policy
o Excess Interest
o Overcollateralization will be built
to certain target levels set by
MBIA; The overcollateralization
level may step-down over time
o Cross-collateralization: Excess
interest from one loan group will be
available to fund interest
shortfalls, cover losses and build
overcollateralization in the other
loan group, according to the
priority described in the Pooling
and Servicing Agreement
Certificate Principal: o Class A-1 Certificates are paid down
primarily with principal collected
on the Group I Loans
o Class A-2 and Class A-3 Certificates
are paid down primarily with
principal collected on the Group II
Loans
o Group II principal collections are
allocated in the following order:
1. The Class A-3 Principal Distribution
Amount to Class A-3 until this class
is paid down to zero
2. All remaining amounts first to Class
A-2 until this class is paid down to
zero, and then to Class A-3 until
this class is paid down to zero
The Class A-3 Principal Distribution
Amount is equal to the Class A-3
Lockout Percentage multiplied by the
Class A Principal Distribution
Amount for the Group II
Certificates.
The Class A-3 Lockout Percentage is
equal to the following:
<TABLE>
<CAPTION>
Distribution Date Class A-3 Lockout Percentage
----------------- ----------------------------
<S> <C>
September 1999 - February 2001 0 %
March 2001 and thereafter 75 %
</TABLE>
- --------------------------------------------------------------------------------
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, losses and other
matters, including, but not limited to, the assumptions described in the
Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained in
the Offering Document).
<PAGE>
LEHMAN BROTHERS 5
Terms of the Offering (continued)
Class A-2 Interest: o Interest accrues from the last
Distribution Date (or the Closing
Date in the case of the first
Distribution Date) to the day
preceding the current Distribution
Date at the Class A-2 Pass-Through
Rate on an Actual/360 basis
o The Class A-2 Pass-Through Rate is
equal to the lesser of (a) 1 month
LIBOR + the applicable margin (the
"Formula Rate") and (b) the Group II
Net WAC Cap
o The Group II Net WAC Cap is equal to
the weighted average Loan Rate of the
Group II Mortgage Loans less the
Servicing Fee, Trustee Fee, Surety
Premium and 0.50% starting in month
13
o Interest is paid monthly on the
Distribution Date and 1 month LIBOR
(the "Index") is adjusted monthly
o The margin on the Class A-2
Certificates will double if the
Cleanup Call is not exercised on the
first possible Distribution Date
o The LIBOR Carryover feature pays any
unpaid Class A-2 interest from prior
Distribution Dates, due to the
application of the Group II Net WAC
Cap, on future Distribution Dates
(with accrued interest thereon) to
the extent of funds available; The
payment of any such amount is not
rated by S&P and Moody's
o Interest entitlement is reduced by a
pro rata share of interest shortfalls
due to application of the Soldiers'
and Sailors' Civil Relief Act of 1940
and compensating interest shortfalls,
to the extent they are not covered by
the Servicer or Credit Enhancer
Class A-3 Interest: o Interest accrues during the calendar
month preceding the current
Distribution Date at the fixed Class
A-3 Certificate Rate on a 30/360
basis
o Interest is paid monthly on the
Distribution Date
o Interest entitlement is reduced by a
pro rata share of interest shortfalls
due to application of the Soldiers'
and Sailors' Civil Relief Act of 1940
and compensating interest shortfalls,
to the extent they are not covered by
the Servicer or Credit Enhancer
- --------------------------------------------------------------------------------
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, losses and other
matters, including, but not limited to, the assumptions described in the
Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained in
the Offering Document).
<PAGE>
LEHMAN BROTHERS 6
Group II Collateral Summary
Collateral statistics for the adjustable rate home equity loans are listed below
as of the Cut-Off Date.
<TABLE>
<CAPTION>
<S> <C> <C>
Total Number of Loans 1,314
Total Outstanding Loan Balance $126,734,156.15
Average Loan Principal Balance $96,449.13 $11,995.55 to $391,374.87
WA Coupon 10.77% 6.95% to 15.30%
ARM Characteristics
Margin 6.88% 3.40% to 11.20%
First Periodic Cap 1.78% 1.00% to 2.00%
Subsequent Periodic Cap 1.00%
Lifetime Cap 17.76% 13.95% to 22.30%
Lifetime Floor 10.76% 6.95% to 15.30%
WA Original Term (mo.) 359 months 120 to 360
WA Remaining Term (mo.) 358 months 119 to 360
WA Original LTV 83.58% 21.66% to 99.03%
Loan Type
6 mo LI ARM 22.35%
2 yr Fixed, 6 mo LI ARM 77.65%
Property Type
Single Family 81.60%
PUD 7.66%
Two- to Four-Family 6.78%
Townhouse 1.65%
Condo 1.54%
Manufactured Housing 0.76%
Occupancy Status
Primary Home 97.52%
Investment 2.06%
Second Home 0.42%
Geographic Distribution
other states account individually for less than CA: 7.72%
5% of pool balance WA: 6.97%
OH: 6.85%
NY: 6.47%
TX: 6.25%
NC: 5.45%
</TABLE>
- --------------------------------------------------------------------------------
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, losses and other
matters, including, but not limited to, the assumptions described in the
Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained in
the Offering Document).
<PAGE>
LEHMAN BROTHERS 7
Group II Collateral Summary
Collateral statistics for the adjustable rate home equity loans are listed below
as of the Cut-Off Date.
<TABLE>
<CAPTION>
Cut-Off Date Principal Balances
($) Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
<S> <C> <C> <C>
0.01 - 50,000.00 232 9,056,758.65 7.15
50,000.01 - 100,000.00 617 44,654,979.59 35.24
100,000.01 - 150,000.00 285 35,024,426.59 27.64
150,000.01 - 200,000.00 95 16,433,486.62 12.97
200,000.01 - 250,000.00 45 10,119,445.36 7.98
250,000.01 - 300,000.00 28 7,461,996.33 5.89
300,000.01 - 350,000.00 10 3,217,688.14 2.54
350,000.01 - 400,000.00 2 765,374.87 0.60
Total: 1,314 126,734,156.15 100.00
</TABLE>
Loan Rates
(%) Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
6.501 - 7.000 2 318,537.83 0.25
7.501 - 8.000 5 653,357.02 0.52
8.001 - 8.500 11 946,470.54 0.75
8.501 - 9.000 42 5,575,852.29 4.40
9.001 - 9.500 83 8,548,035.10 6.74
9.501 - 10.000 180 18,689,293.04 14.75
10.001 - 10.500 175 18,192,147.37 14.35
10.501 - 11.000 303 30,494,418.58 24.06
11.001 - 11.500 155 14,346,643.89 11.32
11.501 - 12.000 192 17,581,700.60 13.87
12.001 - 12.500 73 5,611,375.14 4.43
12.501 - 13.000 43 2,950,240.75 2.33
13.001 - 13.500 20 988,270.06 0.78
13.501 - 14.000 18 1,150,708.79 0.91
14.001 - 14.500 4 282,300.00 0.22
14.501 - 15.000 6 308,331.32 0.24
15.001 - 15.500 2 96,473.83 0.08
Total: 1,314 126,734,156.15 100.00
- --------------------------------------------------------------------------------
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, losses and other
matters, including, but not limited to, the assumptions described in the
Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained in
the Offering Document).
<PAGE>
LEHMAN BROTHERS 8
Group II Collateral Summary
Collateral statistics for the adjustable rate home equity loans are listed below
as of the Cut-Off Date.
Original Term to Stated Maturity
(months) Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
120 2 82,280.18 0.06
180 10 683,038.54 0.54
240 7 390,724.60 0.31
360 1,295 125,578,112.83 99.09
Total: 1,314 126,734,156.15 100.00
Remaining Term to Stated Maturity
(months) Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
61 - 120 2 82,280.18 0.06
121 - 180 10 683,038.54 0.54
181 - 240 7 390,724.60 0.31
301 - 360 1,295 125,578,112.83 99.09
Total: 1,314 126,734,156.15 100.00
Seasoning
(months) Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
0 729 69,279,893.51 54.67
1 - 6 583 57,257,229.19 45.18
7 - 12 1 67,096.35 0.05
13 + 1 129,937.10 0.10
Total: 1,314 126,734,156.15 100.00
<TABLE>
<CAPTION>
Loan Type
Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
<S> <C> <C> <C>
6 Month Libor ARM 282 28,325,889.59 22.35
2 yr Fixed, 6 Month Libor ARM 1,032 98,408,266.56 77.65
Total: 1,314 126,734,156.15 100.00
</TABLE>
- --------------------------------------------------------------------------------
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, losses and other
matters, including, but not limited to, the assumptions described in the
Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained in
the Offering Document).
<PAGE>
LEHMAN BROTHERS 9
Group II Collateral Summary
Collateral statistics for the adjustable rate home equity loans are listed below
as of the Cut-Off Date.
Original Loan-to-Value Ratio
<TABLE>
<CAPTION>
(%) Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
----- ----------- -----------------
<S> <C> <C> <C>
less than or equal to 50.00 27 1,431,458.22 1.13
50.01 - 55.00 6 392,007.76 0.31
55.01 - 60.00 17 1,009,365.62 0.80
60.01 - 65.00 28 1,985,834.84 1.57
65.01 - 70.00 41 2,832,247.77 2.23
70.01 - 75.00 124 11,465,987.81 9.05
75.01 - 80.00 271 25,592,046.78 20.19
80.01 - 85.00 281 26,641,777.04 21.02
85.01 - 90.00 451 49,393,759.74 38.97
90.01 - 95.00 47 4,229,360.56 3.34
95.01 - 100.00 21 1,760,310.01 1.39
Total: 1,314 126,734,156.15 100.00
</TABLE>
Occupancy Type
Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
----- ----------- -----------------
Primary Home 1,258 123,594,699.98 97.52
Investment 49 2,607,388.77 2.06
Second Home 7 532,067.40 0.42
Total: 1,314 126,734,156.15 100.00
Property Type
<TABLE>
<CAPTION>
Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
----- ----------- -----------------
<S> <C> <C> <C>
Single Family 1,100 103,412,332.14 81.60
PUD 73 9,712,600.16 7.66
2-4 Family 86 8,598,885.57 6.78
Townhouse 21 2,092,180.80 1.65
Condo 20 1,951,367.34 1.54
Manufactured Housing 14 966,790.14 0.76
Total: 1,314 126,734,156.15 100.00
</TABLE>
- --------------------------------------------------------------------------------
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, losses and other
matters, including, but not limited to, the assumptions described in the
Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained in
the Offering Document).
<PAGE>
LEHMAN BROTHERS 10
Group II Collateral Summary
Collateral statistics for the adjustable rate home equity loans are listed below
as of the Cut-Off Date.
States
Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
AR 1 44,780.26 0.04
AZ 40 3,525,010.55 2.78
CA 64 9,783,434.16 7.72
CO 30 3,901,834.17 3.08
CT 22 2,802,539.67 2.21
DE 5 428,813.04 0.34
FL 47 4,177,854.04 3.30
GA 64 6,135,123.93 4.84
IA 10 658,988.80 0.52
ID 2 292,903.53 0.23
IL 37 3,577,116.54 2.82
IN 26 1,488,689.10 1.17
KS 10 710,475.33 0.56
KY 9 1,015,048.46 0.80
LA 4 442,915.47 0.35
MA 27 3,450,778.70 2.72
MD 22 2,387,063.30 1.88
ME 18 1,770,277.24 1.40
MI 35 2,756,957.04 2.18
MN 37 3,141,735.90 2.48
MO 58 3,664,570.38 2.89
MS 7 489,347.02 0.39
MT 3 169,034.41 0.13
NC 79 6,903,794.71 5.45
NE 16 1,145,249.68 0.90
NH 12 1,316,995.68 1.04
NJ 27 3,219,562.04 2.54
NM 9 972,905.07 0.77
NV 18 2,184,933.52 1.72
NY 81 8,196,688.51 6.47
OH 113 8,680,851.45 6.85
OK 30 1,692,375.42 1.34
OR 16 2,236,927.25 1.77
PA 71 4,786,190.77 3.78
RI 5 327,135.83 0.26
continued...
- --------------------------------------------------------------------------------
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, losses and other
matters, including, but not limited to, the assumptions described in the
Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained in
the Offering Document).
<PAGE>
LEHMAN BROTHERS 11
Group II Collateral Summary
Collateral statistics for the adjustable rate home equity loans are listed below
as of the Cut-Off Date.
States (continued)
Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
SC 34 2,859,183.07 2.26
TN 27 2,681,064.80 2.12
TX 79 7,917,585.82 6.25
UT 4 389,311.54 0.31
VA 16 1,768,165.67 1.40
VT 2 288,739.25 0.23
WA 56 8,829,324.50 6.97
WI 35 3,125,545.03 2.47
WV 2 131,815.11 0.10
WY 4 264,520.39 0.21
Total: 1,314 126,734,156.15 100.00
Documentation Type
<TABLE>
<CAPTION>
Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
<S> <C> <C> <C>
Full Documentation 1,153 108,167,396.94 85.35
Stated Income 117 12,471,147.31 9.84
Limited Documentation 44 6,095,611.90 4.81
Total: 1,314 126,734,156.15 100.00
</TABLE>
Credit Grade
Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
A+ 11 1,271,158.66 1.00
A1 197 23,863,632.84 18.83
A2 607 60,790,823.57 47.97
B 249 22,175,428.81 17.50
C1 166 12,579,109.56 9.93
C2 82 5,943,865.85 4.69
D 2 110,136.86 0.09
Total: 1,314 126,734,156.15 100.00
- --------------------------------------------------------------------------------
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, losses and other
matters, including, but not limited to, the assumptions described in the
Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained in
the Offering Document).
<PAGE>
LEHMAN BROTHERS 12
Group II Collateral Summary
Collateral statistics for the adjustable rate home equity loans are listed below
as of the Cut-Off Date.
Margin
(%) Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
2.001 - 4.000 6 790,754.52 0.62
4.001 - 6.000 247 25,544,122.19 20.16
6.001 - 8.000 873 86,008,695.21 67.87
8.001 - 10.000 171 13,460,130.55 10.62
10.001 - 12.000 17 930,453.68 0.73
Total: 1,314 126,734,156.15 100.00
Next Rate Adjustment Date
Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
October 1999 2 179,836.96 0.14
November 1999 38 3,423,190.29 2.70
December 1999 91 9,280,402.59 7.32
January 2000 89 9,069,424.74 7.16
February 2000 62 6,373,035.01 5.03
June 2000 1 129,937.10 0.10
July 2000 1 67,096.35 0.05
February 2001 1 80,631.63 0.06
April 2001 1 197,657.75 0.16
May 2001 146 13,688,568.59 10.80
June 2001 304 30,406,941.38 23.99
July 2001 356 32,229,302.42 25.43
August 2001 222 21,608,131.34 17.05
Total: 1,314 126,734,156.15 100.00
Initial Periodic Cap
(%) Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
1.000 282 28,325,889.59 22.35
2.000 1,032 98,408,266.56 77.65
Total: 1,314 126,734,156.15 100.00
- --------------------------------------------------------------------------------
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, losses and other
matters, including, but not limited to, the assumptions described in the
Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained in
the Offering Document).
<PAGE>
LEHMAN BROTHERS 13
Group II Collateral Summary
Collateral statistics for the adjustable rate home equity loans are listed below
as of the Cut-Off Date.
Lifetime Cap
(%) Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
13.501 - 14.000 2 318,537.83 0.25
14.501 - 15.000 5 653,357.02 0.52
15.001 - 15.500 11 946,470.54 0.75
15.501 - 16.000 42 5,575,852.29 4.40
16.001 - 16.500 83 8,548,035.10 6.74
16.501 - 17.000 181 18,769,924.67 14.81
17.001 - 17.500 175 18,192,147.37 14.35
17.501 - 18.000 302 30,413,786.95 24.00
18.001 - 18.500 155 14,346,643.89 11.32
18.501 - 19.000 192 17,581,700.60 13.87
19.001 - 19.500 73 5,611,375.14 4.43
19.501 - 20.000 43 2,950,240.75 2.33
20.001 - 20.500 20 988,270.06 0.78
20.501 - 21.000 18 1,150,708.79 0.91
21.001 - 21.500 4 282,300.00 0.22
21.501 - 22.000 6 308,331.32 0.24
22.001 - 22.500 2 96,473.83 0.08
Total: 1,314 126,734,156.15 100.00
- --------------------------------------------------------------------------------
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, losses and other
matters, including, but not limited to, the assumptions described in the
Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained in
the Offering Document).
<PAGE>
LEHMAN BROTHERS 14
Group II Collateral Summary
Collateral statistics for the adjustable rate home equity loans are listed below
as of the Cut-Off Date.
Prepayment Penalty Term
(months) Mortgage Cut-Off Date Principal % of Cut-Off Date Pool
Loans Balance ($) Principal Balance
None 429 37,673,117.21 29.73
12 53 7,688,413.40 6.07
24 130 14,835,002.91 11.71
36 131 13,783,534.18 10.88
42 4 419,986.45 0.33
48 1 83,407.85 0.07
60 566 52,250,694.15 41.23
Total: 1,314 126,734,156.15 100.00
- --------------------------------------------------------------------------------
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, losses and other
matters, including, but not limited to, the assumptions described in the
Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained in
the Offering Document).
<PAGE>
Centex Home Equity Loan Trust
Centex Home Equity Loan Asset-Backed Certificates, Series 1999-3
$415,000,000 (Approximate)
Subject to Revision
August 11, 1999 - Computational Materials
The analysis in this report is based on information provided by the Seller.
Chase Securities Inc. ("CSI") makes no representations as to the accuracy or
completeness of the information contained herein. The information contained
herein is qualified in its entirety by the information in the Prospectus and
Prospectus Supplement for this transaction. The information contained herein is
preliminary as of the date hereof, supersedes any previous information delivered
to you by CSI and will be superseded by the applicable final Prospectus and
Prospectus Supplement and any other information subsequently filed with the
Securities and Exchange Commission. These materials are subject to change,
completion, or amendment from time to time without notice, and CSI is under no
obligation to keep you advised of such changes. These materials are not intended
as an offer or solicitation with respect to the purchase or sale of any
security. Any investment decision with respect to the securities should be made
by you based upon the information contained in the final Prospectus Supplement
and Prospectus relating to the securities. You should consult your own counsel,
accountant, and other advisors as to the legal, tax, business, financial and
related aspects of a purchase of these securities.
The attached information contains certain tables and other statistical analyses
(the "Computational Materials") which have been prepared in reliance upon
information furnished by the Seller. They may not be provided to any third party
other than the addressee's legal, tax, financial and/or accounting advisors for
the purposes of evaluating said material. Numerous assumptions were used in
preparing the Computational Materials which may or may not be reflected therein.
As such, no assurance can be given as to the Computational Materials' accuracy,
appropriateness or completeness in any particular context; nor as to whether the
Computational Materials and/or the assumptions upon which they are based reflect
present market conditions or future market performance. These Computational
Materials should not be construed as either projections or predictions or as
legal, tax, financial or accounting advice. Any weighted average lives, yields
and principal payment periods shown in the Computational Materials are based on
prepayment assumptions, and changes in such prepayment assumptions may
dramatically affect such weighted average lives, yields and principal payment
periods. In addition, it is possible that prepayments on the underlying assets
will occur at rates slower or faster than the rates shown in the attached
Computational Materials. Furthermore, unless otherwise provided, the
Computational Materials assume no losses on the underlying assets and no
interest shortfalls. The specific characteristics of the securities may differ
from those shown in the Computational Materials due to differences between the
actual underlying assets and the hypothetical underlying assets used in
preparing the Computational Materials. The principal amount and designation of
any security described in the Computational Materials are subject to change
prior to issuance. Neither CSI nor any of its affiliates makes any
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities.
THIS INFORMATION IS FURNISHED TO YOU SOLELY BY CSI AND NOT BY THE ISSUER OF THE
SECURITIES OR ANY OF ITS AFFILIATES. CSI IS ACTING AS UNDERWRITER AND NOT ACTING
AS AGENT FOR THE ISSUER IN CONNECTION WITH THE PROPOSED TRANSACTION.
[LOGO] CHASE
1
<PAGE>
DERIVED INFORMATION
[LOGO]
CENTEX
HOME EQUITY
CORPORATION
$415,000,000 Certificates (approximate)
Centex Home Equity Loan Trust 1999-3
Centex Home Equity Corp. (Seller & Servicer)
CHEC Asset Receivable Corp. (Depositor)
- --------------------------------------------------------------------------------
The information provided herein has been provided to Prudential Securities
Incorporated ("PSI") by Lehman Brothers as an underwriter for the Centex Home
Equity Loan Trust 1999-3 transaction. The analysis in this report is accurate to
the best of PSI's knowledge and is based on information provided by Centex and
Lehman Brothers. PSI makes no representations as to the accuracy of such
information provided to it, and PSI has not independently verified such
information. All assumptions and information in this report are as of this date
and are subject to change. All analyses are based on certain assumptions noted
herein and different assumptions could yield substantially different results.
You are cautioned that there is no universally accepted method for analyzing
financial instruments. You should review the assumptions; there may be
differences between these assumptions and your actual business practices.
Further, PSI does not guarantee any results and there is no guarantee as to the
liquidity of the instruments involved in this analysis. The decision to adopt
any strategy remains your responsibility. PSI (or any of its affiliates) or
their officers, directors, analysts or employees may have positions in
securities, commodities or derivative instruments thereon referred to herein,
and may, as principal or agent, buy or sell such securities, commodities or
derivative instruments. In addition, PSI may make a market in the securities
referred to herein. Neither the information nor the assumptions reflected herein
shall be construed to be, or constitute, an offer to sell or buy or a
solicitation of an offer to sell or buy any securities, commodities or
derivative instruments mentioned herein. No sale of any securities, commodities
or derivative instruments should be consummated without the purchaser first
having received prospectus and a prospectus supplement. Finally, PSI has not
addressed the legal, accounting and tax implications of the analysis with
respect to you, and PSI strongly urges you to seek advise from your counsel,
accountant and tax advisor.
