SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported) JUNE 17, 1997
MERRILL LYNCH MORTGAGE INVESTORS, INC.
- ------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 333-7569 13-3416059
- ---------------------------------- --------------- --------------------
(State or other jurisdiction (Commission (IRS
of incorporation) File Number) Employer ID
Number)
250 Vesey Street, World Financial Center
NORTH TOWER, 10TH FLOOR, NEW YORK, NY 10281-1310
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number,
including area code: (212) 449-0357
--------------
N/A
- -----------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
Item 5. OTHER EVENTS
This report and the attached exhibit is being filed pursuant to "no-action"
positions taken by the Securities and Exchange Commission with respect to
alternative means of satisfying the Registrant's reporting obligations under the
Securities Exchange Act of 1934, as amended, with respect to the Registrant's
Mortgage Loan Asset-Backed Certificates, Series 1997-FF2 (the "Certificates").
The Certificates were issued, and this report and exhibit are being filed,
pursuant to the terms of the Pooling and Servicing Agreement, dated as of June
1, 1997 (the "Agreement"), among Merrill Lynch Mortgage Investors, Inc., as
depositor, First Franklin Financial Corporation, as master servicer, Option One
Mortgage Corporation, as servicer, and Texas Commerce Bank National Association,
as trustee (the "Trustee").
Also being filed herewith as an exhibit, is the consent of Coopers & Lybrand,
L.L.P., independent public accountants to Financial Assurance Inc.
<PAGE>
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
AND EXHIBITS.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits:
23.1 Consent of Coopers & Lybrand, L.L.P.
99.1 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 thereunto duly authorized.
MERRILL LYNCH MORTGAGE INVESTORS,
INC.
By: /S/ PETER J. CERWIN
Name: Peter J. Cerwin
Title: Vice President
Dated: June 19, 1997
<PAGE>
EXHIBIT INDEX
EXHIBIT
23.1 Consent of Coopers & Lybrand, L.L.P.
99.1 Computational Materials
EXHIBIT 23.1
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the Prospectus Supplement dated
June 19, 1997 (to Prospectus dated June 19, 1997) of First Franklin Financial
Corporation, relating to Mortgage Loan Asset Backed Certificates, Series
1997-FF2 of our report dated January 24, 1997 on our audits of the consolidated
financial statements of Financial Security Assurance Inc. and Subsidiaries as of
December 31, 1995 and 1994, and for each of the three years in the period ended
December 31, 1995. We also consent to the reference to our Firm under the
caption "Experts".
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
New York, New York
June 19, 1997
EXHIBIT 99.1
FIRST FRANKLIN FINANCIAL CORPORATION
MORTGAGE LOAN ASSET BACKED CERTIFICATES, SERIES
1997-FF2
$141,544,809
SUBJECT TO REVISION
COMPUTATIONAL MATERIALS
<PAGE>
The attached tables and other statistical analyses (the "Computational
Materials") are privileged and confidential and are intended for use by the
addressee only. These Computational Materials are furnished to you solely by
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch") and not by
the issuer of the securities or any of its affiliates. The issuer of these
securities has not prepared or taken part in the preparation of these materials.
Neither Merrill Lynch, the issuer of the securities nor any of its affiliates
makes any representation as to the accuracy or completeness of the information
herein. The information herein is preliminary, and will be superseded by the
applicable Prospectus Supplement and by any other information subsequently filed
with the Securities and Exchange Commission. The information herein may not be
provided by the addressees 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 stated therein. As such, no assurance can be given as to the
accuracy, appropriateness or completeness of the Computational Materials in any
particular context; or 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 yields or weighted average lives shown in the Computational Materials are
based on prepayment assumptions and actual prepayment experience may
dramatically affect such yields or weighted average lives. In addition, it is
possible that prepayments on the underlying assets will occur at rates slower or
faster than the rates assumed in the attached Computational Materials.
Furthermore, unless otherwise provided, the Computational Materials assume no
losses on the underlying assets and no interest shortfall. 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 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.
Although a registration statement (including the prospectus) relating to the
securities discussed in this communication has been filed with the Securities
and Exchange Commission and is effective, the final prospectus supplement
relating to the securities discussed in this communication has not been filed
with the Securities and Exchange Commission. This communication shall not
constitute an offer to sell or the solicitation of any offer to buy nor shall
there be any sale of the securities discussed in this communication in any state
in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such state.
Prospective purchasers are referred to the final prospectus and prospectus
supplement relating to the securities discussed in this communication for
definitive Computational Materials on any matter discussed in this
communication. A final prospectus and prospectus supplement may be obtained by
contacting the Merrill Lynch Trading Desk at (212) 449 - 5320.
Please be advised that asset-backed securities may not be appropriate for all
investors. Potential investors must be willing to assume, among other things,
market price volatility, prepayments, yield curve and interest rate risk.
Investors should fully consider the risk of an investment in these securities.
If you have received this communication in error, please notify the sending
party immediately by telephone and return the original to such party by mail.
<PAGE>
MORTGAGE LOAN
SELLER: First Franklin Financial Corporation
DEPOSITOR: Merrill Lynch Mortgage Investors, Inc.
MASTER SERVICER: First Franklin Financial Corporation
SERVICER: Option One Mortgage Corporation
TRUSTEE: Texas Commerce Bank, N.A.
UNDERWRITER: Merrill Lynch & Co.
<TABLE>
<CAPTION>
Ratings Beg. Amort. End Amort.
Class Amount (Moody's/S&P) WAL (Mo./Date) (Mo./Date)
To Maturity:
<S> <C> <C> <C> <C> <C>
A $141,544,809 Aaa/AAA 4.10 1/July-97 260/Feb.-19
To Call:
A $141,544,809 Aaa/AAA 3.77 1/July-97 120/June-07
</TABLE>
CUT-OFF DATE: June 1, 1997
EXP. PRICING: Week of June 16, 1997
EXP. SETTLEMENT: Week of June 23, 1997
STATED FINAL
MATURITY: August 2028 (Approximate)
INTEREST/
PRINCIPAL: The 25th day of each month (or if such 25th
day is not a business day, the next
succeeding business day), commencing on July
25, 1997.
SMMEA: The Class A Certificates will be SMMEA
eligible.
ERISA: Subject to the conditions set forth in the
prospectus, it is believed that the Class A
Certificates would generally be ERISA
eligible. Prospective purchasers should
consult their counsel.
TAX STATUS: On the Closing Date, a REMIC election will be
made with respect to certain assets of the
Trust.
COLLATERAL: Conventional, adjustable rate mortgage loans
secured by first liens on Single Family
Properties, 2-4 Family Properties, PUDs and
Condominiums indexed to 6 Month LIBOR.
<PAGE>
CREDIT
ENHANCEMENT: Overcollateralization plus 100% FSA Guarantee
of timely receipt of interest on the Class A
Certificates and ultimate receipt of
principal on the Class A Certificates.
INITIAL
OVERCOLLATERAL-
IZATION: Credit Enhancement with respect to the Class A
Certificates will be provided in part by the
Initial Overcollateralization Amount
resulting from the excess of the sum of the
Original Principal Balances of the Mortgage
Loans over the initial Certificate Principal
Balance as of the Closing Date.
PRINCIPAL AND INTEREST DISTRIBUTIONS:
The Class A Certificateholders will receive interest each month on the basis of
the actual number of days elapsed in the related interest period divided by 360
days times the Certificate Rate times the Outstanding Balance of the
Certificates prior to any distributions. In addition, the Class A
Certificateholders will receive all scheduled and unscheduled principal
distributions from the Mortgage Loans until the Class A Certificates are
retired.
CLASS A CERTIFICATES:
PRIOR TO THE AVAILABILITY OF THE CLEAN-UP CALL (AS DEFINED BELOW):
On each Remittance Date, interest will accrue at the Class A Pass-Through Rate
from the preceding Remittance Date (or from the Closing Date in the case of the
first Remittance Date) to and including the day prior to the current Remittance
Date on the outstanding principal balance of the Class A Certificates. All
calculations of interest on the Class A Certificates will be computed on the
basis of the actual number of days elapsed in the related interest period and in
a year of 360 days. The Class A Pass- Through Rate will be equal to the lesser
of (1) One-Month LIBOR plus [ ]% per annum and (2) the weighted average of the
Mortgage Rates minus the sum of (a) the Servicing Fee Rate, (b) the rate at
which the Annual Trustee Expense Amount is calculated, (c) the rate at which
monthly premiums are payable to the Certificate Insurer and (d) 0.50% per annum
(such difference equaling the "Available Funds Pass-Through Rate").
The Pass-Through Margin on the Class A Pass-Through Rate will double on and
after the date on which the 10% clean-up call becomes available but is not
exercised, subject to the Available Funds Pass-Through Rate.
OPTIONAL TERMINATION/10% CLEANUP CALL:
On any Remittance Date on which the outstanding aggregate principal balance of
the Mortgage Loans is less than 10% of the sum of the Original Principal as of
the Cut-off Date, the majority holder of the Residual Certificates shall have
the right to exercise the 10% Clean Up Call.
OPTIONAL TERMINATION/5% CLEANUP CALL:
On any Remittance Date on which the outstanding aggregate principal balance of
the Mortgage Loans is less than 5% of the sum of the Original Principal as of
the Cut-off Date, the Master Servicer, the Servicer, or the Insurer shall have
the right to exercise the 5% Clean Up Call.
<PAGE>
MORTGAGE POOL CHARACTERISTICS:
MORTGAGE LOANS (AS OF 6/1/97):
Initial Home Equity Loan Principal Balance: $144,433,479
Weighted Average Coupon: 9.071%
Weighted Average Lifetime Cap: 15.071%
Weighted Average Lifetime Floor: 9.071%
Weighted Average Gross Margin: 5.181%
Negative Amortization: None
Weighted Average Rem. Term: 358 mos.
Weighted Average Original Term: 360 mos.
Properties secured by 1st Liens: 100.00%
Weighted Average CLTV: 76.3%
Geographic Distribution: 10 States
States w/ >5% Concentrations: CA-60.23%, OR-
11.19%,
UT-9.98%,
WA-9.98%
Balloons: 0%
Occupancy-
Owner Occupied: 95.10%
Investor: 4.90%
Property Type-
Condominium: 3.82%
Single Family: 78.52%
2-4 Family: 3.87%
Planned Unit Development 13.44%
De-minimus PUD 0.14%
Manufactured Housing 0.21%
Loan Purpose-
Purchase: 44.11%
Refinance: 20.68%
Cashout: 35.21%
<PAGE>
A 20% constant prepayment rate (CPR) will be used to price the Mortgage Loans.
CLASS A CERTIFICATE PREPAYMENT SENSITIVITY ANALYSIS:
(assuming 0 bps losses):
PREPAYMENT SCENARIOS (as a conditional prepayment rate (CPR)):
<TABLE>
<CAPTION>
CPR 0% 10% 15% 20% 25% 30% 35%
10% CLEAN-UP
CALL
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A WAL (YRS) 21.22 7.41 5.07 3.77 2.96 2.41 2.01
CLASS A EXP. BEG. 1 1 1 1 1 1 1
AM.
CLASS A EXP. END. 348 227 160 120 94 77 64
AM.
NO CLEAN-UP
CALL
CLASS A WAL (YRS) 21.26 7.81 5.47 4.10 3.23 2.63 2.19
CLASS A EXP. BEG. 1 1 1 1 1 1 1
AM.
CLASS A EXP. END. 358 347 314 260 211 173 145
AM.
</TABLE>
<PAGE>
FIRST FRANKLIN: SERIES 1997-FF2
<TABLE>
<CAPTION>
Report Profile: B SuperCrack Portfolio Summary Code File: PROSPECT
- -POOL TOTALS- AVERAGE - - GROSS COUPON - - -RMNG TRM- WTDAV - - MARGIN - -
# LOANS CURRENT BALANCE CURRBAL WTDAVG MIN MAX STATD ORIG L T V WTDAV MIN MAX
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1,018 $ 144,433,479 $ 141,880 9.071 6.625 12.625 358.1 360.0 76.3 5.181 3.625 7.750
</TABLE>
<TABLE>
<CAPTION>
CURRBAL LOANS CURRENT BAL %POOL RATE LOANS CURRENT BAL %POOL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
25000.01- 50000.00 48 2,016,748 1.40 6.500- 6.999 11 1,871,700 1.30
50000.01- 75000.00 115 7,469,312 5.17 7.000- 7.499 21 3,888,393 2.69
75000.01- 100000.00 198 17,453,541 12.08 7.500- 7.999 52 8,562,070 5.93
100000.01- 125000.00 175 19,668,167 13.62 8.000- 8.499 149 23,298,807 16.13
125000.01- 150000.00 124 16,888,218 11.69 8.500- 8.999 217 31,432,349 21.76
150000.01- 175000.00 96 15,639,738 10.83 9.000- 9.499 161 21,897,634 15.16
175000.01- 200000.00 79 14,840,144 10.27 9.500- 9.999 244 32,346,184 22.40
200000.01- 225000.00 54 11,428,348 7.91 10.000- 10.499 85 11,153,996 7.72
225000.01- 250000.00 35 8,291,034 5.74 10.500- 10.999 48 6,503,785 4.50
250000.01- 275000.00 18 4,729,980 3.27 11.000- 11.499 12 1,388,299 0.96
275000.01- 300000.00 27 7,790,322 5.39 11.500- 11.999 12 1,525,434 1.06
300000.01- 325000.00 12 3,783,593 2.62 12.000- 12.499 4 305,958 0.21
325000.01- 350000.00 6 2,040,149 1.41 12.500- 12.999 2 258,870 0.18
350000.01- 375000.00 11 3,952,090 2.74 WTD AVERAGE: 9.071
375000.01- 400000.00 8 3,138,575 2.17
400000.01- 425000.00 5 2,078,043 1.44
425000.01- 450000.00 4 1,776,766 1.23 LTV LOANS CURRENT BAL %POOL
450000.01- 500000.00 2 917,027 0.63
500000.01+ 1 531,686 0.37 10.01- 20.00 1 39,955 0.03
20.01- 30.00 2 124,942 0.09
30.01- 40.00 13 1,196,586 0.83
PROPTYPE LOANS CURRENT BAL %POOL 40.01- 50.00 27 2,850,318 1.97
50.01- 60.00 60 6,762,826 4.68
2-4 36 5,584,808 3.87 60.01- 70.00 175 20,799,070 14.40
CONDO 51 5,524,561 3.82 70.01- 80.00 562 85,267,642 59.04
DEM PUD 1 197,912 0.14 80.01- 89.99 93 13,580,899 9.40
MANUHM 4 297,768 0.21 90.00+ 85 13,811,240 9.56
PUD 107 19,413,195 13.44 WTD AVERAGE: 76.28
SFR 819 113,415,236 78.52
STATE LOANS CURRENT BAL %POOL
OCC LOANS CURRENT BAL %POOL
AZ 36 4,404,421 3.05
NO 75 7,078,047 4.90 CA 509 86,987,639 60.23
YES 943 137,355,432 95.10 CO 17 1,553,141 1.08
ID 6 712,633 0.49
IL 1 118,841 0.08
LOANPURP LOANS CURRENT BAL %POOL NM 34 4,309,654 2.98
NV 11 1,350,302 0.93
CASHOUT 380 50,855,059 35.21 OR 145 16,166,752 11.19
PURCH 432 63,713,269 44.11 UT 132 14,410,304 9.98
REFI 206 29,865,150 20.68 WA 127 14,419,792 9.98
Active Filter: NONE
</TABLE>
- -- LIFE CAP -- -- LIFE FLOOR -
WTDAVG MIN MAX %0 WTDAVG MIN MAX %0
DOCTYPE LOANS CURRENT BAL %POOL
FULL 806 112,689,462 78.02
LIV 56 9,845,383 6.82
NIV 156 21,898,634 15.16
GRADE LOANS CURRENT BAL %POOL
A- 189 26,862,668 18.60
A1 299 44,167,394 30.58
B 111 12,991,261 8.99
C 57 5,697,856 3.94
D 22 2,486,378 1.72
DA 340 52,227,923 36.16
LIFECAP LOANS CURRENT BAL %POOL
12.500- 12.999 11 1,871,700 1.30
13.000- 13.499 21 3,888,393 2.69
13.500- 13.999 52 8,562,070 5.93
14.000- 14.499 149 23,298,807 16.13
14.500- 14.999 217 31,432,349 21.76
15.000- 15.499 161 21,897,634 15.16
15.500- 15.999 244 32,346,184 22.40
16.000- 16.499 85 11,153,996 7.72
16.500- 16.999 48 6,503,785 4.50
17.000- 17.499 12 1,388,299 0.96
17.500- 17.999 12 1,525,434 1.06
18.000- 18.499 4 305,958 0.21
18.500- 18.999 2 258,870 0.18
WTD AVERAGE: 15.071
NRADATE LOANS CURRENT BAL %POOL
08/01/1997 7 1,818,993 1.26
09/01/1997 17 3,037,817 2.10
10/01/1997 29 3,791,368 2.62
11/01/1997 24 3,241,321 2.24
04/01/1998 37 6,709,613 4.65
05/01/1998 50 6,723,272 4.65
11/01/1998 1 49,919 0.03
12/01/1998 1 62,291 0.04
01/01/1999 2 453,994 0.31
02/01/1999 34 4,941,559 3.42
03/01/1999 220 28,020,363 19.40
04/01/1999 282 38,206,626 26.45
05/01/1999 314 47,376,341 32.80
Requested by: V0.32
<PAGE>
LIFEFLOOR LOANS CURRENT BAL %POOL
6.500- 6.999 11 1,871,700 1.30
7.000- 7.499 21 3,888,393 2.69
7.500- 7.999 52 8,562,070 5.93
8.000- 8.499 149 23,298,807 16.13
8.500- 8.999 217 31,432,349 21.76
9.000- 9.499 161 21,897,634 15.16
9.500- 9.999 244 32,346,184 22.40
10.000- 10.499 85 11,153,996 7.72
10.500- 10.999 48 6,503,785 4.50
11.000- 11.499 12 1,388,299 0.96
11.500- 11.999 12 1,525,434 1.06
12.000- 12.499 4 305,958 0.21
12.500- 12.999 2 258,870 0.18
WTD AVERAGE: 9.071
MARGIN LOANS CURRENT BAL %POOL
3.500- 3.749 2 242,945 0.17
3.750- 3.999 27 4,812,656 3.33
4.000- 4.249 60 9,373,166 6.49
4.250- 4.499 75 11,788,091 8.16
4.500- 4.749 120 16,499,799 11.42
4.750- 4.999 106 15,239,843 10.55
5.000- 5.249 98 15,376,799 10.65
5.250- 5.499 101 13,606,360 9.42
5.500- 5.749 135 18,752,448 12.98
5.750- 5.999 111 15,019,751 10.40
6.000- 6.249 89 11,873,777 8.22
6.250- 6.499 39 4,652,828 3.22
6.500- 6.749 29 3,914,005 2.71
6.750- 6.999 16 2,202,222 1.52
7.000- 7.249 6 671,538 0.46
7.500- 7.749 3 183,362 0.13
7.750- 7.999 1 223,888 0.16
WTD AVERAGE: 5.181
<PAGE>
FINAL PORTFOLIO
Stratification Report
Field: FICO
FICO #LOANS CURRENT BALANCE %POOL
531 - 550 2 306,766.96 0.59
551 - 570 9 1,307,308.15 2.50
571 - 590 31 3,390,123.40 6.49
591 - 610 43 6,744,795.75 12.91
611 - 630 52 8,102,337.11 15.51
631 - 650 65 10,309,907.87 19.74
651 - 670 42 6,506,374.37 12.46
671 - 690 40 6,915,621.27 13.24
691 - 710 21 3,118,633.08 5.97
711 - 730 18 2,633,442.42 5.04
731 - 750 7 1,101,786.61 2.11
751 - 770 8 1,626,220.27 3.11
771 - 790 2 164,602.26 0.32
=============== ======= =============== =====
WTDAVG = 648 340 52,227,922
<PAGE>
ORIGBAL LOANS CURRENT BAL %POOL
" 25000.01- 50000.00 48 2,022,325 1.40"
" 50000.01- 75000.00 115 7,479,595 5.17"
" 75000.01- 100000.00 198 17,473,750 12.08"
" 100000.01- 125000.00 175 19,696,125 13.62"
" 125000.01- 150000.00 124 16,906,095 11.69"
" 150000.01- 175000.00 96 15,657,606 10.83"
" 175000.01- 200000.00 79 14,857,920 10.27"
" 200000.01- 225000.00 54 11,440,900 7.91"
" 225000.01- 250000.00 35 8,300,800 5.74"
" 250000.01- 275000.00 18 4,734,740 3.27"
" 275000.01- 300000.00 27 7,797,950 5.39"
" 300000.01- 325000.00 12 3,786,250 2.62"
" 325000.01- 350000.00 6 2,042,650 1.41"
" 350000.01- 375000.00 11 3,957,450 2.74"
" 375000.01- 400000.00 8 3,143,000 2.17"
" 400000.01- 425000.00 5 2,080,500 1.44"
" 425000.01- 450000.00 4 1,779,500 1.23"
" 450000.01- 500000.00 2 918,500 0.64"
" 500000.01+ 1 532,000 0.37"
