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: December 5, 1997
(Date of earliest event reported)
Commission File No. 333-40467
PAINEWEBBER MORTGAGE ACCEPTANCE CORPORATION IV (as depositor under the Sale and
Servicing Agreement, dated as of December 1, 1997, relating to the Life
Financial Home Loan Owner Trust 1997-3, Home Loan Asset Backed Notes, Series
1997-3)
PAINEWEBBER MORTGAGE ACCEPTANCE CORPORATION IV
- --------------------------------------------------------------------------------
Delaware 06-1204982
- --------------------------------------------------------------------------------
(State of Incorporation) (I.R.S. Employer Identification No.)
1285 Avenue of the Americas
New York, New York 10019
- --------------------------------------------------------------------------------
Address of principal executive offices (Zip Code)
(212) 713-2000
- --------------------------------------------------------------------------------
Registrant's Telephone Number, including area code
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
<PAGE>
ITEM 5. Other Events
Attached as an exhibit are the Computational Materials (as defined in
the no-action letter dated May 20, 1994 issued by the Securities and
Exchange Commission to Kidder, Peabody Acceptance Corporation-I, Kidder,
Peabody & Co. Incorporated and Kidder Structured Asset Corporation (the
"Kidder Letter")) prepared by PaineWebber Incorporated, which are hereby
filed pursuant to such letter.
<PAGE>
ITEM 7. Financial Statements and Exhibits
(c) Exhibits
Item 601(a)
of Regulation S-K
Exhibit No. Description
- ----------- -----------
(99) Computational Materials prepared by
PaineWebber Incorporated in connection
with Life Financial Home Loan Owner Trust
1997-3, Home Loan Asset Backed Notes,
Series 1997-3
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PAINEWEBBER MORTGAGE ACCEPTANCE
CORPORATION IV
December 5, 1997
By: /s/ Joseph Piscina
---------------------------
Joseph Piscina
Director
<PAGE>
INDEX TO EXHIBITS
Paper (P) or
Exhibit No. Description Electronic (E)
- ----------- ----------- --------------
(99) Computational Materials prepared E
by PaineWebber Incorporated in connection
with Life Financial Home Loan Owner Trust
1997-3, Home Loan Asset Backed Notes,
Series 1997-3
LIFE HOME LOAN OWNER TRUST 1997-3
PAINEWEBBER INCORPORATED
PRELIMINARY BACKGROUND INFORMATION
LIFE HOME LOAN OWNER TRUST 1997-3
DISCLAIMER
The information included herein is produced and provided exclusively by
PaineWebber Incorporated ('PW') as underwriter for the Life Financial Home Loan
Owner Trust 1997-3, and not by or as agent for Life Financial Corp. or any of
its affiliates (collectively, the 'Transferor'). The Transferor has not
prepared, reviewed or participated in the preparation hereof, is not responsible
for the accuracy hereof and has not authorized the dissemination hereof. The
analysis in this report is accurate to the best of PW's knowledge and is based
on information provided by the Transferor. PW makes no representations as to the
accuracy of such information provided by the Transferor. The information herein
is preliminary, and will be superseded by the applicable prospectus supplement
and prospectus and by any other information subsequently filed with the
Securities and Exchange Commission.
All opinions and conclusions in this report reflect PW's judgment 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, PW 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. PW (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, PW may make a market in the securities referred to
herein. Neither the information nor the opinions expressed 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.
Finally, PW has not addressed the legal, accounting and tax implications of the
analysis with respect to you and PW strongly urges you to seek advice from your
counsel, accountant and tax advisor.
<PAGE>
LIFE HOME LOAN OWNER TRUST 1997-3
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
COLLATERAL CONTAINED IN THE PROSPECTUS SUPPLEMENT.
DESCRIPTION OF INITIAL LOANS AS OF THE STATISTIC CALCULATION DATE
Approximate characteristics of the pool of Initial Loans identified as of
11/26/97. Loans equal to approximately $187.5 million will be delivered on the
Closing Date. With Pre-Funding, the total deal size will be approx. $250
Million.
<PAGE>
Fixed ARMS Total
----- ---- -----
Total Number of Loans: 4,970 202 5,172
Initial Principal Balance: $166,811,452 $6,718,871 $173,530,324
Percent of Total Balance: 96.1% 3.9% 100%
Average Loan Balance: $33,564 $33,262 $33,552
WA Loan Rate: 14.2% 11.5% 14.0%
Range of Loan Rates: 9.1%-18.2% 9.3%-13.9% 9.1%-18.2%
WA Remaining Term (months) 212 241 213
Range of Remaining Terms: 46-359 156-300 46-359
WA Seasoning (months): 4 1 4
Range of Seasoning: 0-17 0-3 0-17
WA Original Term (months): 214 241 215
Range of Original Terms: 60-360 154-300 60-360
WA FICO Score: 672.6 673.0 672.7
WA Combined LTV: 108.4% 103.6% 108.2%
Geographic concentration: CA 17.1% CA 18.4% CA 17.2%
(as a Percentage of Loan Type) VA 8.7% OK 17.8% VA 8.4%
FL 6.2% KS 6.4% MD 5.6%
MD 5.8% MI 5.5% OK 5.2%
(States not listed account for less than 5% of the aggregate principal balance
of the category)
% of Pool with LTV greater than 90%: 91.3%
Lien Position: 2nd Lien: 100.0%
Property Type: Single Family Residential: 97.0%
2-4 Family: 0.1%
Condominium/Townhouse: 1.8%
PUD: 1.0%
Occupancy Status: Owner Occupied: 100.00%
<PAGE>
LIFE HOME LOAN OWNER TRUST 1997-3
PRICING INFORMATION - TOTAL DEAL SIZE = $250 MILLION
Transaction Summary (a)
Est. Est. Est. Expected
WAL to Prin. Prin. Ratings
Approx. Maturity Lockout Window Stated (Moody's/
Notes Size Coupon (Years) (Years) (Years) Maturity Fitch)
Class A-1 $79,780 Float(b) 1.10 0.00 2.17 1/25/09 Aaa / AAA
Class A-2 $48,890 Fixed 3.00 2.08 1.83 10/25/11 Aaa / AAA
Class A-3 $27,570 Fixed 5.00 3.83 3.17 12/25/13 Aaa / AAA
Class A-4 $25,010 Fixed(c) 10.03 6.92 4.92 12/25/28 Aaa / AAA
Class M-1 $27,500 Fixed(c) 8.34 4.33 7.50 12/25/28 Aa2 / AA
Class M-2 $22,500 Fixed(c) 8.34 4.33 7.50 12/25/28 A2 / A
Class B $18,750 Fixed(c) 8.34 4.33 7.50 12/25/28 Baa2 / BBB
Notes: (a) 100% Prepayment Assumption: 3.0% CPR in month 1, and an
additional 1.0% per annum in each month thereafter until month
12. On and after month 12, 14% CPR. To 10% Optional Call.
(b) The lesser of (i) One-Month LIBOR plus 0.__ % and (ii) the
weighted average Coupon Rate of the Loans, less 1.02% per annum.
(c) Each Fixed Coupon will be increased by [0.50%] for each payment
after the Initial Call Date.
Pricing Speed: 3% CPR, increasing to 14% over 12 months.
Distribution Date: The 25th of each month or, if such day is not a
Business Day, the next succeeding Business Day,
commencing in January 1998.
Settlement Date: On or about [December 16, 1997]
Cut-off Date: The close of business on November 30, 1997.
Statistic Calculation
Date: The statistical information presented herein and in the
Prospectus Supplement Concerning the Initial Loans is
based on the characteristics of a portion of the Initial
Loans as of November 26, 1997 (the "Statistic Calculation
Date"). Life expects that the actual aggregate balance of
the Initial Loans as of the Initial Cut-off Date (to be
identified prior to the Closing Date) will equal
approximately $[187.5] Million.
Payment Delay: With the exception of the Class A-1 Notes, 24 Days.
With respect to the Class A-1 Notes, 0 days.
Payment Terms: Monthly
Title of Securities: Life Financial Home Loan Owner Trust 1997-3
Interest Accrual With the exception of the Class A-1 Notes, interest will
Period: accrue on the Notes at a fixed rate during the month
prior to the month of the related Distribution Date based
on a 30/360 year. With respect to the Class A-1 Notes,
interest will accrue from and including the preceding
Payment Date (or from the Closing Date in the case of the
first Payment Date) to and including the day prior to the
current Payment Date at the Class A-1 Note Interest Rate
on an Actual/360 day basis. The "Class A-1 Note Interest
Rate" will be equal to the lesser of (x) with respect to
any Payment Date, One-Month LIBOR plus 0._% per annum
and (y) the weighted average interest rate on the loans,
less 1.02% per annum (the rate described in this clause
(y), the "Available Funds Cap").
Offered Notes: Class A-1 through A-4 Notes (the 'Class A Notes' or the
'Senior Notes'), Class M-1 and Class M-2 Notes (the
'Mezzanine Notes') and Class B Notes (the 'Class B
Notes', and together with the Senior Notes and the
Mezzanine Notes, the 'Notes').
Offering: Public shelf offering - a prospectus and prospectus
supplement will be distributed after pricing.
Form of Offering: Book-Entry form, same-day funds through DTC for all of
the Notes.
Denominations: The Notes are issueable in minimum denominations of an
original amount of $100,000 and multiples of $1,000
thereafter.
Underlying Collateral: The Notes will be secured, in part, by debt
consolidation, home improvement, and other primarily
second lien home equity loans, with combined loan to
value ratios generally in excess of 100%. As of the
Statistic Calculation Date, approx. 3.9% of the Initial
Loans (by Principal Balance) were fully amortizing
Adjustable Rate Mortgages and the remainder of the
Initial Loans were Fixed Rate Mortgages.
Bulk Acquisition: Approx. 2,596 of the Initial Loans (the "Acquired Loans")
with a Principal Balance of approx. $91.1 Million were
acquired by Life from Preferred Credit Corporation
("Preferred") on October 21, 1997. The Acquired Loans
were serviced by Advanta Mortgage Corp. USA until
November 21, 1997, at which time servicing was
transferred to Life. The Acquired Loans were originated
by correspondents of Preferred (i.e., none of the
Acquired Loans were originated or funded by Preferred).
Life believes that the Acquired Loans comply with Life's
underwriting standards and will make representations and
warranties to that effect.
Owner Trustee: Wilmington Trust Company
Indenture Trustee: Norwest Bank Minnesota, National Association
Underwriters: PaineWebber Incorporated
Bear, Stearns & Co. Inc.
Depositor: PaineWebber Mortgage Acceptance Corporation IV
Transferor: Life Financial Corp.
Servicer: Life Savings Bank, Federal Savings Bank
Pre-Funding Account: On the Closing Date, $[62.5 Million] will be deposited in
an account (the "Pre-Funding Account"), which account is
in the name of the Indenture Trustee and is part of the
Trust and will be used to acquire Subsequent Loans.
During the Pre-Funding Period (as defined below), the
amount on deposit in the Pre-Funding Account (net of
investment earnings thereon) (the "Pre-Funded Amount")
will be reduced by the amount thereof used to purchase
Subsequent Loans in accordance with the Sale and
Servicing Agreement. The "Pre-Funding Period" is the
period commencing on the Closing Date and ending
generally on the earlier to occur of (i) the date on
which the amount on deposit in the Pre-Funding Account is
less than $50,000 and (ii) [March 15], 1998.
Credit Enhancement: Credit enhancement with respect to the Offered Notes
will be provided by (1) Excess Interest, (2)
Overcollateralization and (3) the subordination of the
rights of holders of the Residual Interest Certificate
and the lower-rated classes of Notes to receive interest
and principal, respectively.
Excess Interest: The weighted average coupon rate on the loans is
generally expected to be higher than the sum of (a) the
servicing fee, (b) trustee fees, and (c) the weighted
average pass through rate on the Notes, thus generating
excess interest collections which will be available to
fund payments and distributions on the Notes on each
Distribution Date.
Overcollateralization: Excess Interest is applied, to the extent available, to
make accelerated payments of principal to the Notes then
entitled to receive distributions of principal; such
application will cause the aggregate principal balance of
the Notes to amortize more rapidly than the loans. Prior
to the Stepdown Date, the Overcollateralization Target
Amount equals the greater of (a) [6.25%] of the Original
Pool Principal Balance and (b) the Net Delinquency
Calculation Amount. On and after the Stepdown Date, the
Overcollateralization Target Amount equals the greater of
(a) [12.50%] of the Pool Principal Balance as of the end
of the related Due Period and (b) the Net Delinquency
Calculation Amount. The Overcollateralization Target
Amount will not in any event be less than [0.50%] of the
sum of the Original Pool Balance Amount and the Original
Pre-Funded Amount(the 'Overcollateralization Floor') or
greater than the outstanding Class Principal Balances of
the Notes.
Subordination: The rights of the Class M-1 Notes to receive payments of
interest on each Distribution Date will be subordinate to
those of the Senior Notes, the rights of the Class M-2
Notes to receive payments of interest on each
Distribution Date will be subordinate to those of the
Senior Notes and the Class M-1 Notes, the rights of the
Class B Notes to receive payments of interest on each
Distribution Date will be subordinate to those of the
Senior Notes and Mezzanine Notes, and the rights of the
Residual Interest Certificate to receive payments on each
Distribution Date will be subordinate to those of the
Notes.
The rights of the Class M-1 Notes to receive payments of
principal on each Payment Date will be subordinate to
those of the Senior Notes, the rights of the Class M-2
Notes to receive payments of principal on each
Distribution Date will be subordinate to those of the
Senior Notes and the Class M-1 Notes, the rights of the
Class B Notes to receive payments of principal on each
Distribution Date will be subordinate to those of the
Senior Notes and Mezzanine Notes, and the rights of the
Residual Interest Certificate to receive payments on each
Distribution Date will be subordinate to those of the
Notes.
Net Delinquency
Calculation Amount: With respect to any Distribution Date, the excess, if
any, of (x) the product of [X.X] and the Six Month
Rolling Delinquency Average over (y) the aggregate
amounts of Excess Spread for the three preceding
Distribution Dates. The Net Delinquency Calculation
Amount may be removed after the Closing Date if the
Rating Agencies no longer require it. After such event
the Net Delinquency Calculation Amount will be deemed to
be zero for all future calculations.
Stepdown Date: The Stepdown Date means the first Distribution Date
occurring after December 2000 as to which: (1) the Pool
Principal Balance has been reduced to 50% of the sum of
the Original Pool Principal Balance and the Original
Pre-Funded Amount; (2) the Net Delinquency Calculation
Amount is less than [6.25]% of the sum of the Original
Pool Principal Balance and the Original Pre-Funded
Amount; and (3) the aggregate Class Principal Balance of
the Senior Notes will be able to be reduced to the excess
of (i) the Pool Principal Balance as of the preceding
Determination Date over (ii) the greater of (a) the sum
of (1) [55.0]% of the Pool Principal Balance as of the
preceding Determination Date and (2) the
Overcollateralization Target Amount for such Distribution
Date and (b) [0.50%] of the sum of the Original Pool
Principal Balance and the Original Pre-Funded Amount.
Summary of Subordination & Overcollateralization Target Amounts:
Initial Before After After
Expected Stepdown Stepdown Stepdown
Subord.(a) O/C Target (b) Subord. (c) O/C Target (d)
---------- -------------- ----------- --------------
Class A Notes 27.50% 6.25% 55.00% 12.50%
Class M-1 Notes 16.50% 6.25% 33.00% 12.50%
Class M-2 Notes 7.50% 6.25% 15.00% 12.50%
Class B Notes 0.00% 6.25% 0.00% 12.50%
- ------------------------------------------------------------------------------
(a) The initial amount of subordination for each class as of the Closing
Date.
(b) The Overcollateralization Target Amount prior to the Stepdown Date.
(c) The expected subordination for each class on the Stepdown Date.
(d) The Overcollateralization Target Amount on and after the Stepdown Date
as a percentage of the current collateral balance, but at no time less
than the Overcollateralization Floor.
Payment and Distribution
Priorities: (1) interest to the holders of the Senior Notes;
(2) interest to the holders of the Class M-1 Notes;
(3) interest to the holders of the Class M-2 Notes;
(4) interest to the holders of the Class B Notes;
(5) sequentially to pay principal to the holders of the
the Class A-1, Class A-2, Class A-3 and Class A-4,
in that order until the respective Class Principal
Balances thereof are reduced to zero, the amount
necessary to reduce the aggregate Class Principal
Balance of the Senior Notes to the Senior Optimal
Principal Balance; provided, however, that on each
Distribution Date occurring on or after any
reduction of the Class M and Class B Notes to zero
through the application of Allocable loss Amount,
distributions shall be made among the remaining
Senior Notes pro rata and not sequentially.
(6) sequentially, to the holders of the Class M-1 and
the Class M-2 Notes, in that order, until the Class
Principal Balances thereof are reduced to the
Optimal Principal Balance, respectively.
(7) to the holders of the Class B Notes until the Class
Principal Balances thereof are reduced to the
Optimal Principal Balance.
(8) sequentially to the Class M-1 Notes and the Class
M-2 Notes, in that order, until their respective
Loss Reimbursement Deficiencies, if any, have been
paid in full;
(9) to the Class B Notes until the applicable Loss
Reimbursement Deficiencies, if any, has been paid
in full; and (10) any remaining amounts to the
holders of the Residual Interest Certificates.
Application of Allocable
Loss Amounts: Realized losses will be absorbed first by Excess
Interest and the reduction of the Overcollateralization
Amount. Following the reduction of any
Overcollateralization Amount to zero, any Allocable Loss
Amounts will be applied in reduction of the Class
Principal Balances of the Class B Notes, the Class M-2
Notes and the Class M-1 Notes, in that order, until their
respective Class Principal Balances have been reduced to
zero. The Class Principal Balances of the Senior Notes
will not be reduced for any application of Allocable Loss
Amounts. The reduction of the Class Principal Balance of
any applicable Class of Offered Notes by the application
of any Allocable Loss Amounts entitles such class to
reimbursement in an amount equal to its Loss
Reimbursement Deficiency in accordance with the payment
priorities specified herein until the earlier of (x) the
payment in full of such amount and (y) the Final
Scheduled Distribution Date.
Optional Termination: The holders of an aggregate percentage interest in the
Residual Interest Certificates in excess of 50% may, at
their option, effect an early termination of the Trust on
or after any Distribution Date on which the Pool
Principal Balance declines to 10% or less of the sum of
the Original Pool Principal Balance and the Original
Pre-Funded Amount, by purchasing all of the Loans at a
price equal to or greater than the Termination Price.
Servicing/Other Fees: The collateral is subject to certain fees, including a
servicing fee of [1.00]% per annum payable monthly, and
trustee fees (equal to [0.02]% per annum).
Advancing by Servicer: There is no required advancing of delinquent principal
or interest by the Servicer or Trustees.
Tax Considerations: The trust will be an Owner Trust. The Notes will be
characterized as debt for federal income tax purposes.
ERISA Considerations: In general, the Offered Notes will be ERISA eligible.
However, investors should consult with their counsel
with respect to the consequences under ERISA and the
Internal Revenue Code of the Plan's acquisition and
ownership of such certificates.
SMMEA Eligibility: NONE of the Notes will be SMMEA-eligible.
Prospectus: The Offered Notes are being offered pursuant to a
Prospectus which includes a Prospectus Supplement
(together, the 'Prospectus'). Complete information with
respect to the Offered Notes and the collateral is
contained in the Prospectus. The material presented
herein is qualified in its entirety by the information
appearing in the Prospectus. To the extent that the
foregoing is inconsistent with the Prospectus, the
Prospectus shall govern in all respects. Sales of the
Offered Notes may not be consummated unless the purchaser
has received the Prospectus.
<PAGE>
LIFE HOME LOAN OWNER TRUST 1997-3
DESCRIPTION OF INITIAL LOANS AS OF STATISTIC CALCULATION DATE
FIXED AND ADJUSTABLE RATE LOANS
- -------------------------------
Aggregate Field Description Count Balance Pool%
Full State Name Alabama 225 6,749,607 3.9
Alaska 3 128,571 0.1
Arizona 224 7,960,422 4.6
Arkansas 15 542,861 0.3
California 776 29,829,759 17.2
Colorado 138 5,032,828 2.9
Connecticut 28 929,931 0.5
Delaware 21 683,551 0.4
District of Columbia 8 272,653 0.2
Florida 321 10,459,059 6.0
Georgia 231 7,677,159 4.4
Hawaii 18 766,097 0.4
Idaho 71 2,211,209 1.3
Illinois 124 4,226,748 2.4
Indiana 103 3,233,320 1.9
Iowa 34 942,146 0.5
Kansas 192 5,865,473 3.4
Kentucky 39 1,093,721 0.6
Maine 9 315,979 0.2
Maryland 272 9,717,301 5.6
Massachusetts 17 582,286 0.3
Michigan 63 1,707,664 1.0
Minnesota 57 1,806,333 1.0
Mississippi 8 266,785 0.2
Missouri 181 5,539,100 3.2
Montana 30 1,107,038 0.6
Nebraska 35 1,079,460 0.6
Nevada 118 4,081,215 2.4
New Hampshire 3 65,899 0.0
New Jersey 26 928,743 0.5
New Mexico 29 946,166 0.5
New York 33 1,039,598 0.6
North Carolina 248 7,922,471 4.6
Ohio 260 7,927,049 4.6
Oklahoma 289 8,967,828 5.2
Oregon 55 2,167,272 1.2
Pennsylvania 55 1,749,037 1.0
Rhode Island 15 418,149 0.2
South Carolina 70 2,239,044 1.3
South Dakota 2 83,922 0.0
Tennessee 55 1,585,024 0.9
Texas 2 59,600 0.0
Utah 83 2,890,161 1.7
Vermont 3 111,067 0.1
Virginia 440 14,557,844 8.4
Washington 84 3,027,116 1.7
West Virginia 1 48,000 0.0
Wisconsin 39 1,234,871 0.7
Wyoming 19 753,191 0.4
----- ----------- ----
5,172 $173,530,324 100.0%
FIXED RATE LOANS
- ----------------
Aggregate Field Description Count Balance Pool%
Current Balance $0+ - $2,500 1 2,076 0.0
$2,500.01 - $10,000 16 157,861 0.1
$10,000.01 - $20,000 583 9,878,113 5.9
$20,000.01 - $30,000 1469 37,698,071 22.6
$30,000.01 - $40,000 1818 64,086,326 38.4
$40,000.01 - $50,000 705 32,648,285 19.6
$50,000.01 - $60,000 259 14,384,592 8.6
$60,000.01 - $70,000 95 6,177,218 3.7
$70,000.01 - $80,000 24 1,778,910 1.1
----- ----------- ----
4,970 $166,811,452 100.0%
ADJUSTABLE RATE LOANS
- ---------------------
Aggregate Field Description Count Balance Pool%
Current Balance $10,000.01 - $20,000 23 382,449 5.7
$20,000.01 - $30,000 62 1,568,735 23.3
$30,000.01 - $40,000 86 3,057,264 45.5
$40,000.01 - $50,000 14 673,785 10.0
$50,000.01 - $60,000 13 757,715 11.3
$60,000.01 - $70,000 3 199,924 3.0
$70,000.01 - $80,000 1 79,000 1.2
----- ----------- ----
202 $6,718,871 100.0%
FIXED RATE LOANS
- ----------------
Aggregate Field Description Count Balance Pool%
Current Rate 9.001% - 9.500% 1 34,110 0.0
9.501% - 10.000% 11 366,257 0.2
10.501% - 11.000% 1 27,574 0.0
11.001% - 11.500% 28 834,172 0.5
11.501% - 12.000% 161 5,773,529 3.5
12.001% - 12.500% 300 10,618,157 6.4
12.501% - 13.000% 580 20,195,414 12.1
13.001% - 13.500% 569 19,327,268 11.6
13.501% - 14.000% 820 28,622,126 17.2
14.001% - 14.500% 608 20,342,369 12.2
14.501% - 15.000% 734 24,339,914 14.6
15.001% - 15.500% 463 14,891,301 8.9
15.501% - 16.000% 399 12,521,771 7.5
16.001% - 16.500% 116 3,591,747 2.2
16.501% - 17.000% 126 3,797,186 2.3
17.001% - 17.500% 29 858,383 0.5
17.501% - 18.000% 22 610,615 0.4
18.001% - 18.500% 2 59,558 0.0
----- ----------- ----
4,970 $166,811,452 100.0%
ADJUSTABLE RATE LOANS
- ---------------------
Aggregate Field Description Count Balance Pool%
Current Rate 9.001% - 9.500% 3 88,400 1.3
9.501% - 10.000% 12 375,430 5.6
10.001% - 10.500% 20 690,067 10.3
10.501% - 11.000% 35 1,185,722 17.6
11.001% - 11.500% 30 978,780 14.6
11.501% - 12.000% 43 1,428,775 21.3
12.001% - 12.500% 34 1,126,152 16.8
12.501% - 13.000% 17 592,796 8.8
13.001% - 13.500% 4 130,967 1.9
13.501% - 14.000% 4 121,784 1.8
----- ----------- ----
202 $6,718,871 100.0%
ADJUSTABLE RATE LOANS
- ---------------------
Aggregate Field Description Count Balance Pool%
Current Margin 4% to 4.9999% 3 88,400 1.3
5% to 5.9999% 44 1,470,063 21.9
6% to 6.9999% 70 2,499,371 37.2
7% to 7.9999% 63 1,973,754 29.4
8% to 8.9999% 16 515,573 7.7
9% to 9.9999% 6 171,712 2.6
----- ----------- ----
202 $6,718,871 100.0%
ADJUSTABLE RATE LOANS
- ---------------------
Aggregate Field Description Count Balance Pool%
Life Cap 12.501% - 13.000% 1 26,088 0.4
15.001% - 15.500% 3 88,400 1.3
15.501% - 16.000% 12 375,430 5.6
16.001% - 16.500% 20 690,067 10.3
16.501% - 17.000% 34 1,150,722 17.1
17.001% - 17.500% 29 952,691 14.2
17.501% - 18.000% 45 1,498,775 22.3
18.001% - 18.500% 34 1,126,152 16.8
18.501% - 19.000% 16 557,796 8.3
19.001% - 19.500% 4 130,967 1.9
Over 19.500% 4 121,784 1.8
----- ----------- ----
202 $6,718,871 100.0%
ADJUSTABLE RATE LOANS
- ---------------------
Aggregate Field Description Count Balance Pool%
Life Floor 9.001% - 9.500% 3 88,400 1.3
9.501% - 10.000% 12 375,430 5.6
10.001% - 10.500% 20 690,067 10.3
10.501% - 11.000% 35 1,185,722 17.6
11.001% - 11.500% 30 978,780 14.6
11.501% - 12.000% 43 1,428,775 21.3
12.001% - 12.500% 34 1,126,152 16.8
12.501% - 13.000% 16 542,796 8.1
13.001% - 13.500% 4 130,967 1.9
13.501% - 14.000% 5 171,784 2.6
----- ----------- ----
202 $6,718,871 100.0%
FIXED AND ADJUSTABLE RATE LOANS
- -------------------------------
Aggregate Field Description Count Balance Pool%
Lien Type Second Lien 5,172 $173,530,324 100.0%
----- ----------- ----
5,172 $173,530,324 100.0%
FIXED AND ADJUSTABLE RATE LOANS
- -------------------------------
Aggregate Field Description Count Balance Pool%
Orig.Combined LTV 5.01% to 10% 1 12,326 0.0
10.01% to 15% 8 197,177 0.1
15.01% to 20% 22 613,522 0.4
20.01% to 25% 35 965,720 0.6
25.01% to 30% 46 1,515,895 0.9
30.01% to 35% 49 1,662,143 1.0
35.01% to 40% 49 1,897,217 1.1
40.01% to 45% 37 1,447,842 0.8
45.01% to 50% 18 689,039 0.4
50.01% to 55% 12 569,914 0.3
55.01% to 60% 11 411,476 0.2
60.01% to 65% 17 610,499 0.4
65.01% to 70% 11 408,358 0.2
70.01% to 75% 9 238,116 0.1
75.01% to 80% 19 545,082 0.3
80.01% to 85% 34 983,228 0.6
85.01% to 90% 81 2,245,969 1.3
90.01% to 95% 227 6,365,466 3.7
95.01% to100% 773 23,116,798 13.3
100.01% to 105% 314 9,790,350 5.6
105.01% to 110% 482 15,444,403 8.9
110.01% to 115% 600 19,928,157 11.5
115.01% to 120% 762 26,887,178 15.5
120.01% to 125% 1338 48,695,948 28.1
125.01% to 130% 139 5,256,188 3.0
130.01% to 135% 77 2,992,820 1.7
135.01% to 140% 1 39,491 0.0
----- ----------- ----
5,172 $173,530,324 100.0%
FIXED AND ADJUSTABLE RATE LOANS
- -------------------------------
Aggregate Field Description Count Balance Pool%
Season 0 1374 44,263,835 25.5
1 - 3 1981 66,336,141 38.2
4 - 6 1340 47,115,356 27.2
7 - 9 415 14,000,436 8.1
10 or greater 62 1,814,555 1.0
----- ----------- ----
5,172 $173,530,324 100.0%
FIXED AND ADJUSTABLE RATE LOANS
- -------------------------------
Aggregate Field Description Count Balance Pool%
Remain Term 31 - 60 26 567,381 0.3
61 - 90 19 417,948 0.2
91 - 120 200 5,511,744 3.2
121 - 150 9 248,626 0.1
151 - 180 2558 81,411,616 46.9
181 - 210 2 36,936 0.0
211 - 240 1644 60,142,752 34.7
271 - 300 710 25,061,677 14.4
301 - 330 1 29,877 0.0
331 - 360 3 101,767 0.1
----- ----------- ----
5,172 $173,530,324 100.0%
FIXED AND ADJUSTABLE RATE LOANS
- -------------------------------
Aggregate Field Description Count Balance Pool%
Orig Term 31 - 60 26 567,381 0.3
61 - 90 15 322,187 0.2
91 - 120 204 5,607,505 3.2
121 - 150 8 214,063 0.1
151 - 180 2568 81,686,250 47.1
181 - 210 1 21,936 0.0
211 - 240 1643 60,142,523 34.7
271 - 300 705 24,896,679 14.3
331 - 360 2 71,800 0.0
----- ----------- ----
5,172 $173,530,324 100.0%
FIXED AND ADJUSTABLE RATE LOANS
- -------------------------------
Aggregate Field Description Count Balance Pool%
Credit Risk - Range less than 600 13 378,090 0.2
600 to 609 5 152,735 0.1
610 to 619 19 478,744 0.3
620 to 629 384 11,222,054 6.5
630 to 639 422 12,697,986 7.3
640 to 649 677 21,839,349 12.6
650 to 659 660 21,535,910 12.4
660 to 669 613 21,158,493 12.2
670 to 679 520 18,394,371 10.6
680 to 689 459 15,843,392 9.1
690 to 699 376 13,571,890 7.8
700 to 709 319 11,947,201 6.9
710 to 719 237 8,329,002 4.8
720 to 729 159 5,462,446 3.1
730 to 739 108 3,731,124 2.2
740 to 749 68 2,334,179 1.3
750 to 759 47 1,616,970 0.9
760 to 769 43 1,349,956 0.8
770 to 779 22 691,832 0.4
780 to 789 13 505,227 0.3
790 to 799 6 198,200 0.1
800 to 999 2 91,174 0.1
----- ----------- ----
5,172 $173,530,324 100.0%
<PAGE>
LIFE HOME LOAN OWNER TRUST 1997-3
THE FOLLOWING TABLES RUN TO CALL:
% of Prepayment Assumption
CLASS A-1 0% 50% 75% 100% 125% 150%
Average Life (Yrs) 4.52 1.66 1.30 1.10 0.97 0.87
First Principal (Yrs) 0.08 0.08 0.08 0.08 0.08 0.08
Last Principal (Yrs) 9.00 3.58 2.67 2.17 1.83 1.58
Window (Yrs) 9.00 3.58 2.67 2.17 1.83 1.58
% of Prepayment Assumption
CLASS A-2 0% 50% 75% 100% 125% 150%
Average Life (Yrs) 10.65 5.00 3.75 3.00 2.51 2.16
First Principal (Yrs) 9.00 3.58 2.67 2.17 1.83 1.58
Last Principal (Yrs) 12.08 6.50 4.92 3.92 3.25 2.75
Window (Yrs) 3.17 3.00 2.33 1.83 1.50 1.25
% of Prepayment Assumption
CLASS A-3 0% 50% 75% 100% 125% 150%
Average Life (Yrs) 13.16 8.04 6.23 5.00 4.15 3.54
First Principal (Yrs) 12.08 6.50 4.92 3.92 3.25 2.75
Last Principal (Yrs) 15.00 10.67 8.58 7.00 5.83 4.92
Window (Yrs) 3.00 4.25 3.75 3.17 2.67 2.25
% of Prepayment Assumption
CLASS A-4 0% 50% 75% 100% 125% 150%
Average Life (Yrs) 17.95 13.60 11.73 10.03 8.60 7.39
First Principal (Yrs) 15.00 10.67 8.58 7.00 5.83 4.92
Last Principal (Yrs) 19.25 15.33 13.50 11.83 10.33 8.92
Window (Yrs) 4.33 4.75 5.00 4.92 4.58 4.08
% of Prepayment Assumption
CLASS M-1 0% 50% 75% 100% 125% 150%
Average Life (Yrs) 16.34 11.81 9.91 8.34 7.09 6.08
First Principal (Yrs) 12.67 7.25 5.50 4.42 3.67 3.08
Last Principal (Yrs) 19.25 15.33 13.50 11.83 10.33 8.92
Window (Yrs) 6.67 8.17 8.08 7.50 6.75 5.92
% of Prepayment Assumption
CLASS M-2 0% 50% 75% 100% 125% 150%
Average Life (Yrs) 16.34 11.81 9.91 8.34 7.09 6.08
First Principal (Yrs) 12.67 7.25 5.50 4.42 3.67 3.08
Last Principal (Yrs) 19.25 15.33 13.50 11.83 10.33 8.92
Window (Yrs) 6.67 8.17 8.08 7.50 6.75 5.92
% of Prepayment Assumption
CLASS B 0% 50% 75% 100% 125% 150%
Average Life (Yrs) 16.34 11.81 9.91 8.34 7.09 6.08
First Principal (Yrs) 12.67 7.25 5.50 4.42 3.67 3.08
Last Principal (Yrs) 19.25 15.33 13.50 11.83 10.33 8.92
Window (Yrs) 6.67 8.17 8.08 7.50 6.75 5.92
LIFE HOME LOAN OWNER TRUST 1997-3
THE FOLLOWING TABLES RUN TO MATURITY:
% of Prepayment Assumption
CLASS A-4 0% 50% 75% 100% 125% 150%
Average Life (Yrs) 18.68 14.53 12.62 10.93 9.48 8.27
First Principal (Yrs) 15.00 10.67 8.58 7.00 5.83 4.92
Last Principal (Yrs) 24.75 23.17 21.08 19.50 18.25 16.75
Window (Yrs) 9.83 12.58 12.58 12.58 12.50 11.92
% of Prepayment Assumption
CLASS M-1 0% 50% 75% 100% 125% 150%
Average Life (Yrs) 16.78 12.36 10.45 8.88 7.62 6.61
First Principal (Yrs) 12.67 7.25 5.50 4.42 3.67 3.08
Last Principal (Yrs) 24.58 22.33 20.00 18.92 17.50 15.75
Window (Yrs) 12.00 15.17 14.58 14.58 13.92 12.75
% of Prepayment Assumption
CLASS M-2 0% 50% 75% 100% 125% 150%
Average Life (Yrs) 16.78 12.33 10.43 8.86 7.60 6.58
First Principal (Yrs) 12.67 7.25 5.50 4.42 3.67 3.08
Last Principal (Yrs) 24.33 21.08 19.42 18.17 16.58 14.75
Window (Yrs) 11.75 13.92 14.00 13.83 13.00 11.75
% of Prepayment Assumption
CLASS B 0% 50% 75% 100% 125% 150%
Average Life (Yrs) 16.73 12.29 10.38 8.79 7.53 6.53
First Principal (Yrs) 12.67 7.25 5.50 4.42 3.67 3.08
Last Principal (Yrs) 23.83 19.75 18.58 17.00 15.08 13.67
Window (Yrs) 11.25 12.58 13.17 12.67 11.50 10.67
