<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 18, 2000
CONSECO FINANCE SECURITIZATIONS CORP.
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Delaware 333-85119-01 41-1807858
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(State or other jurisdiction (Commission (IRS employer
of incorporation) file number) identification No.)
1100 Landmark Towers, 345 St. Peter Street, Saint Paul, Minnesota 55102-1639
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(Address of principal executive offices)
Registrant's telephone number, including area code: (651) 293-3400
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Not Applicable
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(Former name or former address, if changed since last report)
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Item 1. Changes in Control of Registrant.
--------------------------------
Not applicable.
Item 2. Acquisition or Disposition of Assets.
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Not applicable.
Item 3. Bankruptcy or Receivership.
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Not applicable.
Item 4. Changes in Registrant's Certifying Accountant.
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Not applicable.
Item 5. Other Events.
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Not applicable.
Item 6. Resignations of Registrant's Directors.
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Not applicable.
Item 7. Financial Statements and Exhibits.
---------------------------------
(a) Financial statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
2
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(c) Exhibits.
The following is filed herewith. The exhibit numbers correspond
with Item 601(b) of Regulation S-K.
Exhibit No. Description
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99.1 Computational materials prepared by underwriter,
dated January 18, 2000, in connection with
Certificates for Manufactured Housing Contracts
Senior Subordinate Pass-Through Certificates,
Series 2000-1, issued by Conseco Finance
Securitizations Corp., as Seller, and Conseco
Finance Corp., as Servicer.
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.
CONSECO FINANCE SECURITIZATIONS CORP.
By: /s/ Phyllis A. Knight
------------------------------------
Phyllis A. Knight
Senior Vice President and Treasurer
3
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INDEX TO EXHIBITS
Exhibit Number
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99.1 Computational materials prepared by underwriter, dated January 18,
2000, in connection with Certificates for Manufactured Housing
Contracts Senior Subordinate Pass-Through Certificates, Series
2000-1, to be issued by Conseco Finance Securitizations Corp., as
Seller, and Conseco Finance Corp., as Servicer.
4
<PAGE>
EXHIBIT 99
TERM SHEET DATED January 18, 2000
Note: The following is a preliminary Term Sheet. All terms and
statements are subject to change.
$886,500,000 (Approximate)
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Conseco Finance Securitizations Corp.
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[CONSECO LOGO]
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Certificates for Manufactured Housing Contracts, Series 2000-1
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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 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
descriptions of the securities or underlying assets, the information contained
in the Offering Document).
<PAGE>
TERM SHEET DATED January 18, 2000
Conseco Finance Securitizations Corp.
Certificates for Manufactured Housing Contracts, Series 2000-1
$886,500,000 (Approximate)
Subject to Revision
Seller Conseco Finance Securitizations Corp.
Servicer Conseco Finance Corp., formerly Green Tree Financial Corporation
Trustee U.S. Bank National Association, St. Paul, MN
Underwriters Lehman Brothers Inc. (Lead),
J.P. Morgan Securities Inc. (Co),
Merrill Lynch, Pierce, Fenner & Smith Incorporated (Co),
Prudential Securities (Co).
OFFERED CERTIFICATES:
<TABLE>
<CAPTION>
=============== ================ =========================== =================== ======================
Amount Ratings (Moody's/Fitch) WAL at 175% MHP Exp. Final Maturity
- --------------- ---------------- --------------------------- ------------------- ----------------------
<S> <C> <C> <C> <C>
To Call
A-1 $138,500,000 Aaa/AAA 0.95 12/01
A-2 $40,000,000 Aaa/AAA 2.00 05/02
A-3 $130,500,000 Aaa/AAA 3.00 12/03
A-4 $125,000,000 Aaa/AAA 5.00 07/06
A-5 $313,000,000 Aaa/AAA 10.71 01/13
M-1 $45,000,000 Aa2/AA 9.33 01/13
M-2 $36,000,000 A2/A 9.33 01/13
B-1 $27,000,000 Baa2/BBB 5.70 09/07
B-2 $31,500,000 Baa3/BBB+ 11.08 01/13
To Maturity
A-5 $313,000,000 Aaa/AAA 12.10 05/21
M-1 $45,000,000 Aa2/AA 10.01 05/19
M-2 $36,000,000 A2/A 10.01 05/19
B-2 $31,500,000 Baa3/BBB+ 13.12 05/19
Total Balance $886,500,000
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</TABLE>
FOR INFORMATION CONCERNING CERTAIN RISK FACTORS THAT SHOULD BE CONSIDERED BY
PROSPECTIVE INVESTORS, SEE "RISK FACTORS" IN THE PROSPECTUS SUPPLEMENT.
CAPITALIZED TERMS USED HEREIN AND NOT OTHERWISE DEFINED HAVE THE MEANINGS SET
FORTH IN THE PROSPECTUS AND PROSPECTUS SUPPLEMENT.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
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CUT-OFF DATE: January 31, 2000 for a portion of the Pool and
February 28, 2000 for the remaining portion of the
Pool, in each case for contracts other than Subsequent
Contracts. For each Subsequent Contract, the trust
will be entitled to receive all payments due after the
last day of the calendar month in which the subsequent
closing occurs.
EXP. PRICING: Week of January 17, 2000
EXP. SETTLEMENT/
CLOSING DATE: February 8, 2000
LEGAL FINAL: March 1, 2031
REMITTANCE DATE: The 1st day of each month (or if such 1st day is not a
business day, the next succeeding business day),
commencing on April 3, 2000.
OTHER CERTIFICATES: In addition to the Offered Certificates, the Class
B-3I and Class C Certificates will also be issued. The
Class B-3I Certificates are interest-only Certificates
and the Class C Certificates (Class C Master and Class
C Subsidiary Certificates) are residual Certificates.
The Class B-3I and Class C Certificates will be
retained by an affiliate of Conseco Finance Corp. and
will be fully subordinated to the Offered
Certificates.
ERISA: Subject to the conditions set forth in the Prospectus
Supplement, the Class A Certificates are ERISA
eligible. No transfer of a Class M or a Class B
Certificate will be permitted to be made to any
benefit plan unless such plan delivers an opinion of
counsel to the Trustee.
SMMEA: The Class A and the Class M-1 Certificates will not
constitute "mortgage related securities" under the
Secondary Mortgage Market Enhancement Act of 1984
("SMMEA") until such time as the amount in the
Pre-Funding Account is reduced to zero. At such time,
the Class A and Class M-1 Certificates will be "legal
investments" for certain types of institutional
investors to the extent provided in SMMEA. The Class
M-2, Class B-1 and Class B-2 Certificates are not
SMMEA eligible.
TAX STATUS: Two separate REMIC Elections will be made with respect
to the Trust for federal income tax purposes.
OPTIONAL PURCHASE: 20% cleanup call or auction sale subject to certain
requirements if call is not exercised.
THE CONTRACT POOL: On the Closing Date, the Trust expects to purchase (i)
manufactured housing contracts having an aggregate
principal balance of approximately $472,151,596 as of
the Cut-off Date (the "Initial Contracts") and (ii)
additional manufactured housing contracts (the
"Additional Contracts").
PRE-FUNDING ACCOUNT: On the Closing Date, a portion of the proceeds from
the sale of the Certificates (the "Pre-Funded Amount")
will be deposited with the Trustee in a segregated
account (the "Pre-Funding Account") and used by the
Trust to purchase additional contracts (the
"Subsequent Contracts") during a period (not longer
than 90 days) following the Closing Date (the
"Pre-Funding Period") for inclusion in the Contract
Pool. The Subsequent Contracts will not exceed 25% of
the total Contract Pool. The Pre-Funded Amount will be
reduced during the Pre-Funding Period by the amounts
thereof used to fund such purchases. Any amounts
remaining in the Pre-Funding Account following the
Pre-Funding Period will be paid to the Class A
Certificateholders sequentially on the next Remittance
Date.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
<PAGE>
CREDIT ENHANCEMENT: Class A 17% subordination (Class M-1, Class M-2,
Class B-1, Class B-2 and
overcollateralization) and Excess Spread
Class M-1 12% subordination (Class M-2, Class B-1,
Class B-2 and overcollateralization) and
Excess Spread
Class M-2 8% subordination (Class B-1, Class B-2 and
overcollateralization) and Excess Spread
Class B-1 5% subordination (Class B-2 and
overcollateralization) and Excess Spread
Class B-2 Limited Guarantee, overcollateralization
and Excess Spread
There will be initial overcollateralization of
approximately 1.5% building to 2.0% (as described in
the next succeeding paragraph) of the sum of (i) the
aggregate Cut-Off Date principal balance of the
manufactured housing contracts included in the Trust
as of the Closing Date and (ii) the amount on deposit
in the Pre-Funding Account on the Closing Date.
The Certificateholders will be entitled to receive
additional distributions in respect of principal on
each Remittance Date to the extent there is any Amount
Available remaining after payment of all interest and
principal on the Certificates and the Monthly
Servicing Fee to the Servicer for such Remittance
Date, until the overcollateralization amount equals
2.0% of (i) the aggregate Cut-Off Date principal
balance of manufactured housing contracts included in
the Trust as of the Closing Date and (ii) the amount
on deposit in the Pre-Funding Account on the Closing
Date. Such additional distributions in respect of
principal will be paid in accordance with the
distribution priorities described herein and in the
Prospectus and Prospectus Supplement.
DISTRIBUTIONS: Certificateholders will be entitled to receive on each
Remittance Date commencing in April 2000, to the
extent that the Amount Available in the Certificate
Account (together with, in the case of the Class B-2
Certificates, the Guarantee Payment, as described
below) is sufficient therefore, distributions
allocable to interest and principal, as described in
the Prospectus Supplement. The Amount Available on
each Remittance Date generally includes the sum of (i)
payments on the Contracts due and received during the
related Due Period, (ii) prepayments and other
unscheduled collections received during the related
Due Period, and (iii) all collections of principal on
the Contracts received during the Due Period in which
such Remittance Date occurs up to and including the
third business day prior to such Remittance Date (but
in no event later than the 25th day of the month prior
to such Remittance Date), minus (iv) with respect to
all Remittance Dates other than the Remittance Date in
April 2000, all collections in respect of principal on
the Contracts received during the related Due Period
up to and including the third business day prior to
the preceding Remittance Date (but in no event later
than the 25th day of the prior month).
The Amount Available in the Certificate Account with
respect to any Remittance Date will be applied first
to the distribution of interest on the Class A, Class
M-1, Class M-2 and Class B-1 Certificates, and then to
the distribution of principal on the Class A, Class
M-1, Class M-2 and Class B-1 Certificates, in the
manner and order of priority described below, and then
to the distribution of interest and principal on the
Class B-2 Certificates.
The "Due Period" with respect to all Remittance Dates
other than the Remittance Date in April 2000, is the
period from and including the 16th day of the second
month preceding such Remittance Date, to and including
the 15th day of the month immediately preceding such
Remittance Date.
With respect to the Remittance Date in April 2000, the
Due Period is the period from and including February
1, 2000 to and including March 15, 2000.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
<PAGE>
INTEREST ON THE Interest will be distributed first to each Class of
CLASS A, CLASS M-1, the Class A Certificates, then to the Class M-1
CLASS M-2 AND CLASS B-1 Certificates, then to the Class M-2 Certificates and
CERTIFICATES: then to the Class B-1 Certificates. Interest on the
outstanding Class A Principal Balance, Class M-1
Adjusted Principal Balance, Class M-2 Adjusted
Principal Balance, and Class B-1 Adjusted Principal
Balance, as applicable, will accrue from the Closing
Date or from the most recent Remittance Date on which
interest has been paid, to but excluding the following
Remittance Date.
Each Class of Certificates will bear interest at a
fixed Pass-Through Rate calculated on a 30/360 basis.
The "Class M-1 Adjusted Principal Balance" as of any
Remittance Date is the Class M-1 Principal Balance
less any Class M-1 Liquidation Loss Amount. The Class
M-1 Principal Balance is the Original Class M-1
Principal Balance less all amounts previously
distributed on account of principal of the Class M-1
Certificates.
The "Class M-2 Adjusted Principal Balance" as of any
Remittance Date is the Class M-2 Principal Balance
less any Class M-2 Liquidation Loss Amount. The Class
M-2 Principal Balance is the Original Class M-2
Principal Balance less all amounts previously
distributed on account of principal of the Class M-2
Certificates.
The "Class B-1 Adjusted Principal Balance" as of any
Remittance Date is the Class B-1 Principal Balance
less any Class B-1 Liquidation Loss Amount. The Class
B-1 Principal Balance is the Original Class B-1
Principal Balance less all amounts previously
distributed on account of principal of the Class B-1
Certificates.
In the event that, on a particular Remittance Date,
the Amount Available in the Certificate Account, after
payment of interest on each Class of Certificates that
is senior to such Class of Certificates, is not
sufficient to make a full distribution of interest to
the holders of such Class of Certificates, the amount
of interest to be distributed in respect of such Class
will be allocated among the outstanding Certificates
of such Class pro rata in accordance with their
respective entitlements to interest, and the amount of
the shortfall will be carried forward and added to the
amount such holders will be entitled to receive on the
next Remittance Date. Any such amount so carried
forward will bear interest at the applicable
Remittance Rate, to the extent legally permissible.
PRINCIPAL ON THE After the payment of all interest distributable to the
CLASS A, CLASS M-1, Class A, Class M-1, Class M-2, and Class B-1
CLASS M-2 AND CLASS B-1 Certificateholders, principal will be distributable in
CERTIFICATES: the following manner:
The Class A Percentage will be distributed
sequentially to the Class A-1, Class A-2, Class A-3,
Class A-4 and Class A-5 Certificateholders.
The Class A Percentage for any Remittance Date will
equal a fraction, expressed as a percentage, the
numerator of which is the Class A Principal Balance as
of such Remittance Date, and the denominator of which
is the sum of: (i) the Class A Principal Balance, (ii)
if the Class M-1 Distribution Test is satisfied on
such Remittance Date, the Class M-1 Principal Balance,
otherwise zero, (iii) if the Class M-2 Distribution
Test is satisfied on such Remittance Date, the Class
M-2 Principal Balance, otherwise zero, and (iv) if the
Class B Distribution Test is satisfied on such
Remittance Date, the sum of the Class B Principal
Balance and the Overcollateralization Amount,
otherwise zero, all as of such Remittance Date.
The Class M-1 Certificateholders will be entitled to
receive principal on each Remittance Date on which (i)
the Class A Principal Balance has been reduced to zero
or (ii) the Class M-1 Distribution Test is satisfied.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
<PAGE>
The Class M-1 Percentage for any Remittance Date will
equal (a) zero, if the Class A Principal Balance has
not yet been reduced to zero and the Class M-1
Distribution Test is not satisfied or (b) a fraction,
expressed as a percentage, the numerator of which is
the Class M-1 Principal Balance as of such Remittance
Date, and the denominator of which is the sum of: (i)
the Class A Principal Balance, if any, (ii) the Class
M-1 Principal Balance, (iii) if the Class M-2
Distribution Test is satisfied on such Remittance
Date, the Class M-2 Principal Balance, otherwise zero
and (iv) if the Class B Distribution Test is satisfied
on such Remittance Date, the sum of the Class B
Principal Balance and the Overcollateralization
Amount, otherwise zero, all as of such Remittance
Date.
The Class M-1 Distribution Test will be satisfied if
each of the following tests is satisfied: (i) the
Remittance Date occurs in or after April 2004; (ii)
the Average Sixty-Day Delinquency Ratio Test (as
defined in the Agreement) as of such Remittance Date
must not exceed 5.00%; (iii) Cumulative Realized
Losses (as defined in the Agreement) as of such
Remittance Date must not exceed a certain specified
percentage of the Cut-off Date Pool Principal Balance,
depending on the year in which such Remittance Date
occurs; (iv) the Current Realized Loss Ratio (as
defined in the Agreement) as of such Remittance Date
must not exceed 2.75%; and (v) the sum of the Class
M-1 Principal Balance, the Class M-2 Principal
Balance, the Class B Principal Balance, and the
Overcollateralization Amount divided by the Pool
Scheduled Principal Balance as of the immediately
preceding Remittance Date must be equal to or greater
than 26.25%.
The Class M-2 Certificateholders will be entitled to
receive principal on each Remittance Date on which (i)
the Class A Principal Balance and Class M-1 Principal
Balance have been reduced to zero or (ii) the Class
M-2 Distribution Test is satisfied.
The Class M-2 Percentage for any Remittance Date will
equal (a) zero, if the Class A Principal Balance and
Class M-1 Principal Balance have not yet been reduced
to zero and the Class M-2 Distribution Test is not
satisfied or (b) a fraction, expressed as a
percentage, the numerator of which is the Class M-2
Principal Balance as of such Remittance Date, and the
denominator of which is the sum of: (i) the Class A
Principal Balance, if any, (ii) the Class M-1
Principal Balance, if any, (iii) the Class M-2
Principal Balance, and (iv) if the Class B
Distribution Test is satisfied on such Remittance
Date, the sum of the Class B Principal Balance and the
Overcollateralization Amount, otherwise zero, all as
of such Remittance Date.
The Class M-2 Distribution Test will be satisfied if
each of the following tests is satisfied: (i) the
Remittance Date occurs in or after April 2004; (ii)
the Average Sixty-Day Delinquency Ratio Test (as
defined in the Agreement) as of such Remittance Date
must not exceed 5.00%; (iii) Cumulative Realized
Losses (as defined in the Agreement) as of such
Remittance Date must not exceed a certain specified
percentage of the Cut-off Date Pool Principal Balance,
depending on the year in which such Remittance Date
occurs; (iv) the Current Realized Loss Ratio (as
defined in the Agreement) as of such Remittance Date
must not exceed 2.75%; and (v) the sum of the Class
M-2 Principal Balance, the Class B Principal Balance,
and the Overcollateralization Amount divided by the
Pool Scheduled Principal Balance as of the immediately
preceding Remittance Date must be equal to or greater
than 18.75%.
The Class B-1 Certificateholders will be entitled to
receive principal on each Remittance Date on which (i)
the Class A Principal Balance, the Class M-1 Principal
Balance and the Class M-2 Principal Balance have been
reduced to zero or (ii) the Class B Distribution Test
is satisfied.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
<PAGE>
The Class B Percentage for any Remittance Date will
equal (a) zero, if the Class A Principal Balance, the
Class M-1 Principal Balance and the Class M-2
Principal Balance have not yet been reduced to zero
and the Class B Distribution Test is not satisfied or
(b) a fraction, expressed as a percentage, the
numerator of which is the sum of the Class B Principal
Balance and the Overcollateralization Amount as of
such Remittance Date, and the denominator of which is
the sum of: (i) the Class A Principal Balance, if any,
(ii) the Class M-1 Principal Balance, if any, (iii)
the Class M-2 Principal Balance, if any, and (iv) the
sum of the Class B Principal Balance and the
Overcollateralization Amount, all as of such
Remittance Date.
The Class B Distribution Test will be satisfied if
each of the following tests is satisfied: (i) the
Remittance Date occurs in or after April 2004; (ii)
the Average Sixty-Day Delinquency Ratio Test (as
defined in the Agreement) as of such Remittance Date
must not exceed 5.00%; (iii) the Cumulative Realized
Losses (as defined in the Agreement) as of such
Remittance Date must not exceed a certain specified
percentage of the Cut-off Date Pool Principal Balance,
depending on the year in which such Remittance Date
occurs; (iv) the Current Realized Loss Ratio (as
defined in the Agreement) as of such Remittance Date
must not exceed 2.75%; (v) the Class B Principal
Balance plus the Overcollateralization amount divided
by the Pool Scheduled Principal Balance as of the
immediately preceding Remittance Date must be equal to
or greater than 12.75%; and (vi) the Class B Principal
Balance must not be less than $18,000,000.
PURCHASE OPTION; Commencing on the first Remittance Date when the
AUCTION SALE aggregate scheduled principal balance of the contracts
is less than or equal to 20% of the aggregate Cut-off
Date principal balance of the contracts, the holder of
the Class C Subsidiary Certificate (see "Other
Certificates" herein) will have the right to purchase
all of the outstanding contracts, at a price
sufficient to pay the aggregate unpaid principal
balance of the certificates and all accrued and unpaid
interest thereon.
If the holder of the Class C Subsidiary Certificate
does not exercise this purchase option, then on the
next Remittance Date the trustee will begin an auction
process to sell the contracts and the other trust
assets at the highest possible price, but the trustee
cannot sell the trust assets and liquidate the trust
unless the proceeds of that sale are sufficient to pay
the aggregate unpaid principal balance of the
certificates and all accrued and unpaid interest
thereon. If the first auction of the trust property is
not successful because the highest bid received was
not sufficient to pay the amount set forth in the
previous sentence, then on each Remittance Date
thereafter all of the Amount Available remaining after
payments of interest and principal due on all
Certificates and payment of the monthly Servicing Fee
will be used to make additional payments of principal
to the Class M-1, Class M-2, Class B-1 and Class B-2
Certificates pro rata based on the then outstanding
principal balance of such Certificates. In addition,
the trustee will continue to conduct an auction of the
contracts every third month thereafter, until an
acceptable bid is received for the trust property. The
Class C Subsidiary Certificateholder's purchase option
will expire upon the trustee's acceptance of a
qualifying bid.
CLASS B-2 INTEREST: Interest on the outstanding Class B-2 Principal
Balance will accrue from the Closing Date, or from the
most recent Remittance Date on which interest has been
paid to but excluding the following Remittance Date.
To the extent of (i) the remaining Amount Available,
if any, for a Remittance Date after payment of all
interest and principal then payable on the Class A,
Class M-1, Class M-2 and Class B-1 Certificates, and
(ii) the Guarantee Payment, if any, for such date,
interest will be paid to the Class B-2
Certificateholders on such Remittance Date at the
Class B-2 Remittance Rate on the then outstanding
Class B-2 Principal Balance. The Class B-2 Principal
Balance is the Original Class B-2 Principal Balance
less all amounts previously
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
<PAGE>
distributed to the Class B-2 Certificateholders
(including any Guarantee Payments) on account of
principal.
In the event that, on a particular Remittance Date,
the remaining Amount Available in the Certificate
Account plus any amounts actually paid under the
Limited Guarantee are not sufficient to make a full
distribution of interest to the Class B-2
Certificateholders, the amount of the deficiency will
be carried forward as an amount that the Class B-2
Certificateholders are entitled to receive on the next
Remittance Date. Any amount so carried forward will,
to the extent legally permissible, bear interest at
the Class B-2 Remittance Rate.
CLASS B-2 PRINCIPAL: Except for payments of the Class B-2 Liquidation Loss
Amount under the Limited Guarantee, the Class B-2
Certificateholders will be entitled to receive
principal on each Remittance Date on which (i) the
Class B-1 Principal Balance has been reduced to zero
and (ii) the Class B Distribution Test is satisfied;
provided, however, that if the Class A Principal
Balance, the Class M-1 Principal Balance, the Class
M-2 Principal Balance and the Class B-1 Principal
Balance have been reduced to zero, the Class B-2
Certificateholders will nevertheless be entitled to
receive principal. See "Description of the
Certificates--Class B-2 Principal" in the Prospectus
Supplement.
On each Remittance Date on which the Class B-2
Certificateholders are entitled to receive principal,
the Class B Percentage of the Formula Principal
Distribution Amount will be distributed, to the extent
of the remaining Amount Available after payment of
interest on the Class B-2 Certificates, to the Class
B-2 Certificateholders until the Class B-2 Principal
Balance has been reduced to zero. Conseco Finance
Corp. will be obligated under the Limited Guarantee to
pay the amount, if any, by which the Class B
Percentage of the Formula Principal Distribution
Amount for such Remittance Date exceeds the remaining
Amount Available after payment of interest on the
Class B-2 Certificates. Conseco Inc., the parent of
Conseco Finance Corp., has no obligation with respect
to the Class B-2 Certificates.
LOSSES ON LIQUIDATED If Net Liquidation Proceeds from Liquidated Contracts
CONTRACTS: in the respective collection period are less than the
Scheduled Principal Balance of such Liquidated
Contracts, the shortfall amount will be absorbed by
the Class B-3I Certificateholders, then the Monthly
Servicing Fee (as long as Conseco Finance Corp. is the
Servicer), then the Overcollateralization Amount, then
the Class B-2 Certificateholders, then the Class B-1
Certificateholders, then the Class M-2
Certificateholders and then the Class M-1
Certificateholders, since a portion of the Amount
Available equal to such shortfall and otherwise
distributable to them will be paid to the Class A
Certificateholders.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
<PAGE>
MANUFACTURED HOUSING CONTRACT CHARACTERISTICS
The information presented below relates to the Initial Contracts, which
will represent approximately 52% of the Contract Pool. Although the
characteristics of the final pool of Contracts will differ from the
characteristics of the Initial Contracts shown below, Conseco does not expect
that the characteristics of the Subsequent Contracts sold to the Trust will vary
materially from the information concerning the Initial Contracts herein.
THE INITIAL CONTRACT POOL
- ------------------------------------------------- ---------------------------
Number of Contracts: 9,860
Wgt. Avg. Contract Rate: 10.21%
Range of Rates: 5.25% - 19.25%
Wgt. Avg. Orig. Maturity: 334 months
Wgt. Avg. Rem. Maturity: 330 months
Avg. Rem Princ. Balance: $47,885.56
Wgt. Avg. LTV: 86.50%
New/Used: 81.3% / 18.7%
Park/Private: 19.9% / 80.1%
Single/Double: 21.9% / 78.1%
Land/Home: 53.7%
Step Rate: 4.27%
Conventional: 100%
- ------------------------------------------------- ---------------------------
<TABLE>
<CAPTION>
YEARS OF ORIGINATION OF INITIAL CONTRACTS
--------------------------------- -------------------- ------------------------- --------------------------
% of Contracts by
Aggregate Principal Outstanding Principal
Origination Year Number of Contracts Balance Outstanding Balance
--------------------------------- -------------------- ------------------------- --------------------------
<S> <C> <C> <C>
1983 1 $ 14,573.62 *
1985 119 754,363.96 0.2%
1986 118 755,669.66 0.2%
1987 8 54,522.34 *
1988 7 70,042.40 *
1989 1 14,541.74 *
1990 473 6,316,351.95 1.3%
1991 386 4,545,896.81 1.0%
1996 1 84,701.84 *
1998 38 2,995,622.54 0.6%
1999 8,677 455,092,557.95 96.4%
2000 31 1,452,751.61 0.3%
--------------------------------- -------------------- ------------------------- --------------------------
Total: 9,860 $ 472,151,596.42 100.0%
--------------------------------- -------------------- ------------------------- --------------------------
</TABLE>
* Indicates an amount greater than 0.00% but less than 0.05%.
(1) Percentages may not add to 100% due to rounding.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
<PAGE>
<TABLE>
<CAPTION>
GEOGRAPHIC DISTRIBUTION OF INITIAL CONTRACT OBLIGORS
--------------------------------- -------------------- ------------------------- --------------------------
% of Contracts by
Number of Contracts Aggregate Principal Original Principal
States Balance Outstanding Balance
--------------------------------- -------------------- ------------------------- --------------------------
<S> <C> <C> <C>
Michigan 779 $ 49,441,827.32 10.5%
Florida 644 33,473,715.42 7.1%
Texas 756 32,788,327.83 6.9%
North Carolina 821 32,337,883.67 6.8%
Georgia 659 28,974,889.73 6.1%
Washington 236 20,821,408.00 4.4%
Indiana 322 19,915,794.81 4.2%
Alabama 594 18,748,568.03 4.0%
Ohio 296 18,369,313.41 3.9%
Tennessee 323 14,625,282.17 3.1%
South Carolina 391 13,822,759.58 2.9%
Colorado 205 12,943,714.53 2.7%
Oregon 152 12,783,200.54 2.7%
California 307 12,728,617.43 2.7%
Arizona 258 12,558,204.44 2.7%
Kentucky 251 11,999,590.06 2.5%
New York 185 9,973,454.23 2.1%
Pennsylvania 211 9,503,228.57 2.0%
Virginia 239 8,872,689.41 1.9%
Mississippi 203 6,593,801.23 1.4%
Maine 88 5,927,709.38 1.3%
Minnesota 124 5,639,423.79 1.2%
Oklahoma 142 5,286,056.41 1.1%
New Mexico 159 5,245,042.08 1.1%
Nevada 87 4,796,285.25 1.0%
Illinois 116 4,756,297.90 1.0%
Arkansas 142 4,701,224.33 1.0%
Idaho 68 4,560,851.65 1.0%
Missouri 139 4,219,608.33 0.9%
West Virginia 110 4,197,989.46 0.9%
New Hampshire 63 3,868,818.99 0.8%
Utah 50 3,696,455.92 0.8%
Vermont 51 3,632,112.50 0.8%
Montana 62 3,534,881.02 0.7%
Iowa 79 3,424,894.13 0.7%
Wyoming 62 3,403,652.88 0.7%
South Dakota 64 2,826,347.38 0.6%
Kansas 81 2,694,531.42 0.6%
Louisiana 83 2,682,561.55 0.6%
Delaware 53 2,671,426.53 0.6%
Wisconsin 59 2,668,930.32 0.6%
Nebraska 46 2,446,383.20 0.5%
Maryland 42 1,534,376.93 0.3%
North Dakota 30 1,484,318.42 0.3%
New Jersey 12 463,641.01 0.1%
Massachusetts 6 247,582.97 0.1%
Connecticut 8 147,391.13 *
Rhode Island 1 93,564.99 *
Washington DC 1 22,966.14 *
--------------------------------- -------------------- ------------------------- --------------------------
Total: 9,860 $ 472,151,596.42 100.0%
--------------------------------- -------------------- ------------------------- --------------------------
* Indicates an amount greater than 0.00% but less than 0.05%.
</TABLE>
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
<PAGE>
(1) Percentages may not add to 100% due to rounding.
<TABLE>
<CAPTION>
DISTRIBUTION OF ORIGINAL INITIAL CONTRACT AMOUNTS
--------------------------------- -------------------- ------------------------- --------------------------
% of Contracts by
Original Contract Number of Aggregate Principal Outstanding Principal
Amount (in Dollars) Contracts Balance Outstanding Balance
--------------------------------- -------------------- ------------------------- --------------------------
<S> <C> <C> <C>
0.00 - 9,999.99 225 $ 1,572,951.79 0.3%
10,000.00 - 19,999.99 1,472 17,311,378.53 3.7%
20,000.00 - 29,999.99 1,561 36,025,143.20 7.6%
30,000.00 - 39,999.99 1,556 52,955,374.15 11.2%
40,000.00 - 49,999.99 1,034 45,962,361.64 9.7%
50,000.00 - 59,999.99 953 52,158,927.89 11.0%
60,000.00 - 69,999.99 753 48,745,130.31 10.3%
70,000.00 - 79,999.99 664 49,701,738.14 10.5%
80,000.00 - 89,999.99 538 45,558,345.02 9.6%
90,000.00 - 99,999.99 418 39,530,297.99 8.4%
100,000.00 - 109,999.99 254 26,580,320.91 5.6%
110,000.00 - 119,999.99 175 19,997,157.59 4.2%
120,000.00 - 129,999.99 103 12,798,659.94 2.7%
130,000.00 - 139,999.99 62 8,371,261.29 1.8%
140,000.00 - 149,999.99 31 4,477,286.45 0.9%
150,000.00 - 159,999.99 32 4,962,731.81 1.1%
160,000.00 - 169,999.99 9 1,484,915.08 0.3%
170,000.00 - 179,999.99 9 1,563,344.88 0.3%
180,000.00 - 189,999.99 3 562,628.15 0.1%
190,000.00 - 199,999.99 2 391,097.25 0.1%
200,000.00 - 209,999.99 1 202,036.21 *
220,000.00 - 229,999.99 2 447,804.73 0.1%
230,000.00 - 239,999.99 2 476,472.11 0.1%
310,000.00 - 319,999.99 1 314,231.36 0.1%
--------------------------------- -------------------- ------------------------- --------------------------
Total: 9,860 $ 472,151,596.42 100.0%
--------------------------------- -------------------- ------------------------- --------------------------
* Indicates an amount greater than 0.00% but less than 0.05%.
(1) Percentages may not add to 100% due to rounding.
</TABLE>
<TABLE>
<CAPTION>
CURRENT CONTRACT RATE OF INITIAL CONTRACTS
--------------------------------- -------------------- ------------------------- --------------------------
% of Contracts by
Number of Aggregate Principal Outstanding Principal
Contract Rate Contracts Balance Outstanding Balance
--------------------------------- -------------------- ------------------------- --------------------------
<S> <C> <C> <C>
5.001 - 6.000 11 $ 1,022,815.29 0.2%
6.001 - 7.000 80 7,280,307.31 1.5%
7.001 - 8.000 1,316 112,493,388.09 23.8%
8.001 - 9.000 1,000 83,230,883.61 17.6%
9.001 - 10.000 884 57,367,783.72 12.2%
10.001 - 11.000 1,081 56,205,763.97 11.9%
11.001 - 12.000 1,130 45,958,010.14 9.7%
12.001 - 13.000 1,284 42,645,119.45 9.0%
13.001 - 14.000 1,359 32,860,221.86 7.0%
14.001 - 15.000 1,222 22,746,804.58 4.8%
15.001 - 16.000 302 6,673,816.02 1.4%
16.001 - 17.000 133 2,761,024.00 0.6%
17.001 - 18.000 51 853,064.74 0.2%
18.001 - 19.000 5 39,495.74 *
19.001 - 20.000 2 13,097.90 *
--------------------------------- -------------------- ------------------------- --------------------------
Total: 9,860 $ 472,151,596.42 100.0%
--------------------------------- -------------------- ------------------------- --------------------------
</TABLE>
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
<PAGE>
* Indicates an amount greater than 0.00% but less than 0.05%.
(1) Percentages may not add to 100% due to rounding.
<TABLE>
<CAPTION>
DISTRIBUTION OF ORIGINAL LOAN-TO-VALUE RATIOS OF INITIAL CONTRACTS
--------------------------------- -------------------- ------------------------- --------------------------
% of Contracts by
Loan to Value Number of Aggregate Principal Outstanding Principal
Ratio Contracts Balance Outstanding Balance
--------------------------------- -------------------- ------------------------- --------------------------
<S> <C> <C> <C>
Less than or equal to 25.00 27 $ 1,185,829.29 0.3%
25.01 - 30.00 21 814,360.55 0.2%
30.01 - 35.00 27 1,320,708.24 0.3%
35.01 - 40.00 42 2,274,914.45 0.5%
40.01 - 45.00 48 1,955,276.64 0.4%
45.01 - 50.00 56 2,480,290.15 0.5%
50.01 - 55.00 77 3,712,722.92 0.8%
55.01 - 60.00 103 5,092,586.38 1.1%
60.01 - 65.00 146 7,977,211.23 1.7%
65.01 - 70.00 204 10,664,706.47 2.3%
70.01 - 75.00 371 20,559,440.15 4.4%
75.01 - 80.00 903 44,504,379.67 9.4%
80.01 - 85.00 799 42,407,962.11 9.0%
85.01 - 90.00 3,315 148,548,421.86 31.5%
90.01 - 95.00 2,708 141,529,877.07 30.0%
95.01 - 96.00 399 16,581,016.56 3.5%
96.01 - 97.00 30 1,252,149.67 0.3%
97.01 - 99.00 38 1,980,780.36 0.4%
99.01 - 100.00 546 17,308,962.65 3.7%
--- ------------- ----
Total: 9,860 $ 472,151,596.42 100.0%
--------------------------------- -------------------- ------------------------- --------------------------
(1) Percentages may not add to 100% due to rounding.
</TABLE>
<TABLE>
<CAPTION>
REMAINING MONTHS TO MATURITY OF INITIAL CONTRACTS
--------------------------------- -------------------- ------------------------- --------------------------
% of Contracts by
Number of Aggregate Principal Outstanding Principal
Months Remaining Contracts Balance Outstanding Balance
--------------------------------- -------------------- ------------------------- --------------------------
<S> <C> <C> <C>
1-30 286 $ 668,512.15 0.1%
31 - 60 241 2,011,751.07 0.4%
61 - 90 621 7,805,458.90 1.7%
91 - 120 426 7,152,094.08 1.5%
121 - 150 279 6,239,538.90 1.3%
151 - 180 689 16,284,078.37 3.4%
181 - 210 4 163,449.94 *
211 - 240 793 25,227,091.23 5.3%
241 - 270 3 103,404.50 *
271 - 300 625 22,988,860.34 4.9%
301 - 330 6 269,640.38 0.1%
331 - 360 5,887 383,237,716.56 81.2%
--------------------------------- -------------------- ------------------------- --------------------------
Total: 9,860 $ 472,151,596.42 100.0%
--------------------------------- -------------------- ------------------------- --------------------------
* Indicates an amount greater than 0.00% but less than 0.05%.
(1) Percentages may not add to 100% due to rounding
</TABLE>
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
<PAGE>
<TABLE>
<CAPTION>
PREPAYMENT SENSITIVITIES
75% MHP 125% MHP 175% MHP 250% MHP 300% MHP
WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity
----------------- ----------------- ------------------ ----------------- -----------------
To Call
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 1.69 05/03 1.20 05/02 0.95 12/01 0.73 07/01 0.64 04/01
A-2 3.69 04/04 2.56 01/03 2.00 05/02 1.53 11/01 1.33 08/01
A-3 5.69 06/07 3.91 03/05 3.00 12/03 2.26 12/02 1.96 08/02
A-4 9.68 05/12 6.72 09/08 5.00 07/06 3.50 05/04 2.99 09/03
A-5 18.45 06/21 13.88 08/16 10.71 01/13 7.63 08/09 6.30 03/08
M-1 15.91 06/21 11.76 08/16 9.33 01/13 7.55 08/09 6.77 03/08
M-2 15.91 06/21 11.76 08/16 9.33 01/13 7.55 08/09 6.77 03/08
B-1 10.23 07/13 7.06 08/09 5.70 09/07 5.24 09/06 5.05 04/06
B-2 18.70 06/21 14.06 08/16 11.08 01/13 8.57 08/09 7.53 03/08
To Maturity
A-5 19.70 11/27 15.37 01/25 12.10 05/21 8.71 08/16 7.18 04/14
M-1 16.57 11/27 12.44 12/22 10.01 05/19 8.33 01/16 7.61 04/14
M-2 16.57 11/27 12.44 12/22 10.01 05/19 8.33 01/16 7.61 04/14
B-2 20.80 11/27 16.07 12/22 13.12 05/19 10.65 01/16 9.64 05/14
(1) The following are the assumed characteristics of the Additional and Subsequent Contracts as of the Cut-off Date.
</TABLE>
<TABLE>
<CAPTION>
Additonal Contracts
-------------------
Aggregate Principal Wtd Avg Original Wtd Avg Remaining Wtd Avg Contract
Months Remaining Balance Outstanding Term Term Rate
---------------- --------------------------- --------------------- ---------------------- ---------------------
<S> <C> <C> <C> <C>
0 - 120 $ 4,315,734.05 106 106 15.867%
121 - 180 10,389,130.51 176 176 14.898%
181 - 240 13,457,940.58 240 240 14.058%
241 - 300 9,921,027.68 300 300 13.907%
301 - 360 164,764,570.76 360 360 10.758%
---------------- ---- ---- -------
Total $ 202,848,403.58 334 334 11.452%
</TABLE>
<TABLE>
<CAPTION>
Subsequent Contracts
--------------------
Aggregate Principal Wtd Avg Original Wtd Avg Remaining Wtd Avg Contract
Months Remaining Balance Outstanding Term Term Rate
---------------- --------------------------- --------------------- ---------------------- ---------------------
<S> <C> <C> <C> <C>
0 - 120 4,787,023.93 106 106 15.867%
121 - 180 11,523,651.77 176 176 14.898%
181 - 240 14,927,584.23 240 240 14.058%
241 - 300 11,004,430.84 300 300 13.907%
301 - 360 182,757,309.23 360 360 10.758%
---------------- ---- ---- -------
Total $ 225,000,000.00 334 334 11.452%
</TABLE>
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
