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: May 19, 1999
(Date of earliest event reported)
Commission File No. 333-61785
PAINEWEBBER MORTGAGE ACCEPTANCE CORPORATION IV (as depositor under the Pooling
and Servicing Agreement, dated as of May 1, 1999, relating to the New South Home
Equity Trust 1999-1, Home Equity Asset Backed Certificates, Series 1999-1)
PAINEWEBBER MORTGAGE ACCEPTANCE CORPORATION IV
Delaware 06-1204982
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(State of Incorporation) (I.R.S. Employer Identification No.)
1285 Avenue of the Americas
New York, New York 10019
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(Address of principal executive offices) (Zip Code)
(212) 713-2000
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(Registrant's Telephone Number, including area code)
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(Former name, former address and former fiscal year, if changed since
last report)
<PAGE>
ITEM 5. OTHER EVENTS
Attached as an exhibit are certain Structural Term Sheets,
Collateral Term Sheets and 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") as modified by a no-action letter (the "First PSA No-Action
Letter") issued by the staff of the Commission on May 27, 1994 to the
Public Securities Association (the "PSA") and as further modified by a
no-action letter (the "Second PSA No-Action Letter") issued by the staff
of the Commission on March 9, 1995 to the PSA) prepared by First Union
Capital Markets Corp., 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) Structural Term Sheets,
Collateral Term Sheets and
Computational Materials prepared
by First Union Capital Markets
Corp. in connection with New
South Home Equity Trust 1999-1,
Home Equity Asset Backed
Certificates, Series 1999-1
<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
May 21, 1999
By:/s/ BARBARA J. DAWSON
---------------------------
Barbara J. Dawson
Senior Vice President
<PAGE>
INDEX TO EXHIBITS
Paper (P) or
EXHIBIT NO. DESCRIPTION ELECTRONIC (E)
- ----------- ----------- --------------
(99) Structural Term Sheets, E
Collateral Term Sheets and
Computational Materials
prepared by First Union
Capital Markets Corp. in
connection with New South
Home Equity Trust 1999-1,
Home Equity Asset Backed
Certificates, Series 1999-1
NEW SOUTH HOME EQUITY TRUST 1999-1
$440,000,000 (APPROXIMATE) OFFERING AMOUNT
<TABLE>
<CAPTION>
TRANSACTION SUMMARY
- ----------------- ----------------- ------------- -------------- -------------- --------------- --------------------
ESTIMATED ESTIMATED ESTIMATED
WAL MODIFIED PAYMENT EXPECTED
APPROXIMATE TO CALL DURATION WINDOW RATINGS
CERTIFICATE(A) SIZE COUPON(E) (YEARS) (YEARS) (YEARS) (MOODY'S/S&P)
- ----------------- ----------------- ------------- -------------- -------------- --------------- --------------------
<S> <C> <C> <C> <C> <C> <C>
Class A-1 [$105,701,000] Floating (b) [0.50] n/a [1.00] Aaa / AAA
Class A-2 [$107,896,000] Fixed [1.50] [1.39] [1.17] Aaa / AAA
Class A-3 [$104,428,000] Fixed (c) [3.00] [2.65] [2.17] Aaa / AAA
Class A-4 [$46,142,000] Fixed (c) [5.00] [4.11] [2.00] Aaa / AAA
Class A-5 [$50,722,824] Fixed (c) [7.09] [5.38] [1.33] Aaa / AAA
Class A-6 [$22,000,000] Fixed (c) [6.06] [4.79] [4.33] Aaa / AAA
Class A-6IO [$22,000,000] IO (d) n/a [.98] n/a Aaa/AAAr
- ----------------- ----------------- ------------- -------------- -------------- --------------- --------------------
</TABLE>
Notes:
(a) The certificates will be priced to the 10% Optional Termination.
(b) The Class A-1 Certificate will bear interest at a variable rate equal to
LIBOR plus [__]% per annum subject to an available funds cap based on funds
available therefor from interest accrued and payable on the loans.
(c) The Class A-3, A-4, A-5 and A-6 Certificates will bear interest at a fixed
rate equal to their respective Pass-Through Rates, in each case, subject to
an available funds cap based on funds available therefor from interest
accrued and payable on the loans.
(d) The Class A-6IO Certificates are interest only Certificates. Interest on
the Class A-6IO will be paid on a notional principal balance equal to the
then outstanding principal balance of the Class A-6 Certificates (initially
$[ ]) at a Pass-Through Rate of [8.00]% per annum, from the first
Distribution Date until the Distribution Date in [May 2001].
(e) The pass-through rate for each class remaining outstanding will increase by
0.50% for remittance periods beginning after the Clean-up Call Date.
The attached Marketing Memorandum (the "Marketing Memorandum") is privileged and
confidential and is intended for use by the addressee only. This Marketing
Memorandum is furnished to you solely by First Union Capital Markets Corp. (the
"Underwriter") and not by the issuer of the certificates identified above (the
"Certificates") or any other party. The Marketing Memorandum is based upon
information made available to the Underwriter. Neither the Underwriter, the
issuer of the Certificates, nor any other party makes any representation to the
accuracy or completeness of the information therein. 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 to any third party other
than the addressee's legal, tax, financial and/or accounting advisors for the
purpose of evaluating such information.
No assurance can be given as to the accuracy, appropriateness or completeness of
the Marketing Memorandum in any particular context; or as to whether the
Marketing Memorandum reflects future performance. This Marketing Memorandum
should not be construed as either a prediction or as legal, tax, and financial
or accounting advice.
Any yields or weighted average lives shown in the Marketing Memorandum are based
on prepayment and other assumptions. Actual experience may dramatically affect
such yields or weighted average lives. The principal amount and designation of
any security described in the Marketing Memorandum are subject to change prior
to issuance.
Although a registration statement (including the prospectus) relating to the
Certificates has been filed with the Securities and Exchange Commission and is
effective, the final prospectus supplement relating to the Certificates has not
been filed with the Securities and Exchange Commission. This communication shall
not constitute an offer to sell or a solicitation of an offer to buy nor shall
there be any sale of the Offered Certificates 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 Offered
Certificates for definitive terms of the Offered Certificates and the
collateral.
Please be advised that the Certificates 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 risks.
Investors should fully consider the risk of an investment in the Certificates.
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.
[LOGO]
FIRST UNION CAPITAL MARKETS CORP.
<PAGE>
MARKETING MEMORANDUM
NEW SOUTH HOME EQUITY TRUST 1999-1 PAGE 2
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PRICING INFORMATION
PREPAYMENT PRICING
SPEED ASSUMPTION: 4% CPR, increasing to 25% CPR over 12 months
DISTRIBUTION DATE: The 25th day of each month (or the next Business
Day thereafter) commencing in June, 1999.
DISTRIBUTION DELAY: With the exception of the Class A-1 Certificates,
24 days. With respect to the Class A-1
Certificates, 0 days.
SETTLEMENT (CLOSING) DATE: On or about May 27, 1999.
CLEAN-UP CALL DATE: The first Distribution Date on which the
aggregate loan balance of the loans has declined
to less than 10% of the aggregate loan balance as
of the Cut-Off Date.
INTEREST ACCRUAL PERIOD: With the exception of the Class A-1 Certificates,
interest will accrue on the Certificates at a
fixed rate during the month prior to the month of
the related Distribution Date based on a 30/360
day basis.
With respect to any Distribution Date, the Class
A-1 Certificates will be entitled to interest
which has accrued thereon from the preceding
Distribution Date (or from the Settlement Date in
the case of the first Distribution Date) to and
including the day prior to the current
Distribution Date. Calculations of interest on
the Class A-1 Certificates will be made on an
actual/360 day basis.
PREPAYMENT INTEREST
SHORTFALLS: Prepayment interest shortfalls not covered by the
servicing fee will be allocated pro rata among
all Classes of Certificates on the basis of their
respective interest entitlements.
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS CORP.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
2
<PAGE>
MARKETING MEMORANDUM
NEW SOUTH HOME EQUITY TRUST 1999-1 PAGE 3
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DESCRIPTION OF SECURITIES
TITLE OF SECURITIES: New South Home Equity Loan Trust 1999-1
LEAD UNDERWRITER: PaineWebber Incorporated
CO-UNDERWRITER: First Union Capital Markets
SELLER AND SERVICER: New South Federal Savings Bank
DEPOSITOR: PaineWebber Mortgage Acceptance Corporation IV
TRUSTEE: The Chase Manhattan Bank
CERTIFICATE INSURER: AMBAC Assurance Corporation
OFFERING AMOUNT: Approximately $440,000,000
STATISTICAL CUT-OFF DATE: May 1, 1999
CUT-OFF DATE: May 1, 1999
STATISTICAL CALCULATION DATE: The collateral described herein and in the
prospectus supplement represents the pool of
loans as of the Statistical Calculation Date of
May 1, 1999. It is anticipated that the total
unpaid principal balance of the collateral pool
conveyed to the Trust at closing will be at least
$440,000,000.
FORM OF OFFERING: Book-Entry form, same-day funds through DTC,
Euroclear, and CEDEL.
SENIOR CERTIFICATES: Class A-1, A-2, A-3, A-4, A-5, A-6 and A-6IO
Certificates.
OFFERED CERTIFICATES: The Senior Certificates. The Class X-IO, Z-IO and
the Class R Certificates are not being offered
publicly.
DENOMINATIONS: Minimum denominations of $[25,000] and multiples
of $1,000 thereafter.
SERVICING/OTHER FEES: The collateral is subject to certain fees,
including a servicing fee of 0.50% per annum
payable monthly, trustee fees and guarantor fees.
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS CORP.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
3
<PAGE>
MARKETING MEMORANDUM
NEW SOUTH HOME EQUITY TRUST 1999-1 PAGE 4
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DESCRIPTION OF SECURITIES (continued)
ADVANCING BY SERVICER: The Servicer is required to advance from its own
funds any delinquent payments of interest (not
principal) unless such interest is deemed to be
non-recoverable (the "Delinquency Advances").
CREDIT ENHANCEMENT: The credit enhancement provided for the benefit
of the Offered Certificates consists of (a)
excess interest, (b) the Overcollateralization
Amounts and (c) the Certificate Insurance Policy.
Excess Interest Because the amount of interest collected on the
loans for each due period is expected to be
higher than the interest distributable for the
Certificates for the related Distribution Date,
excess interest will be generated. A portion of
this excess interest will be applied both to
absorb interest shortfalls and to create and
maintain the required Overcollateralization
Target Amount.
Overcollateralization On the Closing Date, the Overcollateralization
Amount will equal zero. As a result of the
application of a portion of the excess interest
in reduction of the principal balance of the
Senior Certificates, the applicable
Overcollateralization Amount is expected to
increase over time until it reaches the
applicable Overcollateralization Target Amount;
however, subject to certain delinquency and loan
loss tests, the required percentage level of
overcollateralization may increase or decrease
over time. The Overcollateralization Amount is
the first amount to absorb realized losses on the
loans and certain unreimbursed expenses of the
Trust Fund.
Certificate
Insurance Policy The Certificate Insurer will issue a Certificate
Guaranty Insurance Policy (the "Certificate
Insurance Policy"), pursuant to which it will
irrevocably and unconditionally guaranty payment
on each Distribution Date of timely payment of
interest and ultimate payment of principal due on
the Senior Certificates. A payment by the
Certificate Insurer under the Certificate
Insurance Policy is referred to herein as an
"Insured Payment". The Certificate Insurer will
be entitled to reimbursement from excess interest
and the Overcollateralization Amount for all
Insured Payments together with interest thereon.
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS CORP.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
4
<PAGE>
MARKETING MEMORANDUM
NEW SOUTH HOME EQUITY TRUST 1999-1 PAGE 5
- --------------------------------------------------------------------------------
DESCRIPTION OF SECURITIES (continued)
DISTRIBUTION PRIORITY: The total of all payments or other collections
(or advances in lieu thereof) on or in respect of
the loans (but excluding prepayment premiums),
net of servicing fees, trustee fees and premium
owed to the Certificate Insurer, that, together
with any insured payments, generally will be
allocated in the following priority:
i. To pay current interest to the Senior
Certificates, paid pro rata;
ii. To pay as principal on the Class A-6
Certificates, up to the Principal
Distribution Amount, the Class A-6 Lockout
Distribution Amount until the Class A-6
Principal Balance has been reduced to zero;
iii. To pay as principal on the Class A-1 through
A-6 Certificates, sequentially, up to the
remaining Principal Distribution Amount,
until each of their respective Principal
Balances are reduced to zero;
The lesser of (a) available funds remaining after
priorities i. through iii. above and (b) the
Class Z-IO Distribution Amount (the lesser of (a)
and (b) is the "Available Turbo Amount") will be
allocated as follows:
iv. To reimburse the Certificate Insurer for all
Insured Payments made by the Certificate
Insurer which have not been repaid, together
with interest thereon;
The lesser of (a) the amount of the Available
Turbo Amount remaining after priority iv. and (b)
any amount needed to maintain or reach the
Overcollateralization Target Amount (the lesser
of (a) and (b) is the "Class A Turbo Amount")
will be applied as follows:
v. To pay as principal on the Class A-6
Certificates, an amount up to the Class A-6
Lockout Turbo Amount until the Class A-6
Principal Balance has been reduced to zero;
vi. To pay as principal on the Class A-1 through
A-6 Certificates, sequentially, until each
of their respective Principal Balances are
reduced to zero;
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS CORP.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
5
<PAGE>
MARKETING MEMORANDUM
NEW SOUTH HOME EQUITY TRUST 1999-1 PAGE 6
- --------------------------------------------------------------------------------
DESCRIPTION OF SECURITIES (continued)
DISTRIBUTION PRIORITY
(continued): Available funds remaining after priorities i.
through vi. will be allocated as follows:
vii. To pay the Class A-1, Class A-3, Class A-4,
Class A-5 and Class A-6 Certificates, pro
rata, in accordance with their entitlements
to such amounts, interest deferred from
prior periods due to the imposition of
"available funds caps" on their interest
rates to the extent currently payable,
together with interest on such amounts.
The Principal Distribution Amount represents the
amount of principal collected in respect of the
loans during the related due period.
CLASS Z-IO
DISTRIBUTION AMOUNT: With respect to any Distribution Date, an amount
equal to the lesser of (i) the product of (A) the
aggregate unpaid principal balance of the loans
as of the beginning of the prior calendar month
and (B) 1.93% per annum and (ii) (A) all interest
accrued on the loans at the weighted average of
the loan interest rates (net of fees payable to
the servicer and the trustee and the insurance
premium payable to the Certificate Insurer, less
(B) the Class Z-IO Certificate's allocable share
of any Prepayment Interest Shortfalls for such
Distribution Date, and less (C) the aggregate
interest accrued on the Senior Certificates for
the such Distribution Date determined at the
applicable uncapped pass-through rate for such
Distribution Date.
AVAILABLE FUNDS CAP: For any Distribution Date, an amount equal to (i)
all interest that accrued on the loans at their
respective loan interest rates (net of fees
payable to the servicer and the trustee and the
insurance premium payable to the Certificate
Insurer) for the related due period, less (ii)
all interest accrued on the Class A-2 and Class
A-6IO Certificates for such Distribution Date
and, less (iii) all interest accrued on the Class
A-1, Class A-3, Class A-4, Class A-5 and Class
A-6 Certificates, in each case, only if the
uncapped pass-through rate for such class for
such Distribution Date is less than or equal to
the weighted average of the loan interest rates
(net of fees payable to the servicer and the
trustee and the insurance premium payable to the
Certificate Insurer) for the related due period.
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS CORP.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
6
<PAGE>
MARKETING MEMORANDUM
NEW SOUTH HOME EQUITY TRUST 1999-1 PAGE 7
- --------------------------------------------------------------------------------
DESCRIPTION OF SECURITIES (continued)
CLASS A-6 LOCKOUT
DISTRIBUTION AMOUNT: For any Distribution Date, the product of (i) the
applicable Class A-6 Lockout Percentage and (ii)
the product of (a) the Class A-6 Principal
Balance divided by the aggregate Certificate
Principal Balance of the Senior Certificates
immediately prior to such Distribution Date, and
(b) the Principal Distribution Amount for the
Senior Certificates for such Distribution Date.
CLASS A-6 LOCKOUT
TURBO AMOUNT: For any Distribution Date, the product of (i) the
applicable Class A-6 Lockout Percentage and (ii)
the product of (a) the Class A-6 Principal
Balance divided by the aggregate Certificate
Principal Balance of the Senior Certificates
immediately prior to such Distribution Date, and
(b) the Class A Turbo Amount for such
Distribution Date.
CLASS A-6 LOCKOUT
PERCENTAGE: Dates (Periods) Lockout Percentage
--------------- ------------------
June 1999 - May 2002 (1-36) 0%
June 2002 - May 2004 (37-60) 45%
June 2004 - May 2005 (61-72) 80%
June 2005 - May 2006 (73-84) 100%
June 2006 and thereafter (85- ) 300%
OVERCOLLATERALIZATION
AMOUNT: As of any Distribution Date, the difference
between the loan balance of the loans and the
aggregate Certificate Principal Balance of the
Senior Certificates.
OVERCOLLATERALIZATION
TARGET AMOUNT: Prior to the Overcollateralization Stepdown Date,
an amount equal to 3.10% of the Cut-off Date loan
pool principal balance. On or after the
Overcollateralization Stepdown Date, an amount
generally equal to 6.20% of the then outstanding
aggregate unpaid principal balance of the Loans
(the "Pool Principal Balance"). Such
Overcollateralization Stepdown Date will be no
earlier than June, 2002. The
Overcollateralization Target Amount may increase
or decrease over time and may be modified from
time to time by agreement of the Certificate
Insurer and the Transferor.
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS CORP.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
7
<PAGE>
MARKETING MEMORANDUM
NEW SOUTH HOME EQUITY TRUST 1999-1 PAGE 8
- --------------------------------------------------------------------------------
DESCRIPTION OF SECURITIES (continued)
FEDERAL TAX ASPECTS: The Trust will consist of one or more segregated
asset pools (each, a "REMIC") and a grantor trust
from which certain payments of interest at the
Pass-Through Rates are made. Each class of the
Offered Certificates will represent a "regular
interest" in a REMIC and an interest in the
grantor trust.
ERISA CONSIDERATION: All of the Senior Certificates are expected to be
ERISA eligible.
SMMEA ELIGIBILITY: The Certificates will NOT constitute
"mortgage-related securities" for purposes of
SMMEA.
PROSPECTUS: The Certificates are being offered pursuant to a
Prospectus which includes a Prospectus Supplement
(together, the "Prospectus"). Complete
information with respect to the Certificates and
the loans 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
Certificates may not be consummated unless the
purchaser has received the Prospectus.
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS CORP.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
8
<PAGE>
MARKETING MEMORANDUM
NEW SOUTH HOME EQUITY TRUST 1999-1 PAGE 9
- --------------------------------------------------------------------------------
BOND SENSITIVITY TO PREPAYMENTS
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
CLASS A-1 (to maturity)
- --------------------------------------------------------------------------------------------------------------
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Average Life (years) 3.95 0.85 0.63 0.50 0.41 0.35
First Principal Payment 06/99 06/99 06/99 06/99 06/99 06/99
Last Principal Payment 05/07 01/01 08/00 05/00 03/00 01/00
Principal Window (years) 8.00 1.67 1.25 1.00 0.83 0.67
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
CLASS A-2 (to maturity)
- --------------------------------------------------------------------------------------------------------------
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Average Life (years) 10.33 2.77 1.94 1.50 1.22 1.02
Yield @ 100.00 6.20% 6.09% 6.03% 5.96% 5.90% 5.83%
Modified Duration 7.42 2.47 1.78 1.39 1.14 0.96
First Principal Payment 05/07 01/01 08/00 05/00 03/00 01/00
Last Principal Payment 11/10 06/03 03/02 06/01 02/01 10/00
Principal Window (years) 3.58 2.50 1.67 1.17 1.00 0.83
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
CLASS A-3 (to maturity)
- --------------------------------------------------------------------------------------------------------------
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Average Life (years) 15.07 5.89 4.03 3.00 2.35 1.94
Yield @ 100.00 6.42% 6.38% 6.34% 6.30% 6.26% 6.23%
Modified Duration 9.34 4.74 3.44 2.65 2.12 1.77
First Principal Payment 11/10 06/03 03/02 06/01 02/01 10/00
Last Principal Payment 12/19 10/07 01/05 07/03 08/02 12/01
Principal Window (years) 9.17 4.42 2.92 2.17 1.58 1.25
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
CLASS A-4 (to maturity)
- --------------------------------------------------------------------------------------------------------------
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Average Life (years) 23.26 9.89 6.85 5.00 3.88 3.05
Yield @ 100.00 6.86% 6.83% 6.81% 6.79% 6.76% 6.73%
Modified Duration 11.35 6.98 5.30 4.11 3.31 2.67
First Principal Payment 12/19 10/07 01/05 07/03 08/02 12/01
Last Principal Payment 12/24 09/10 11/07 06/05 01/04 02/03
Principal Window (years) 5.08 3.00 2.92 2.00 1.50 1.25
- --------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS CORP.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
9
<PAGE>
MARKETING MEMORANDUM
NEW SOUTH HOME EQUITY TRUST 1999-1 PAGE 10
- --------------------------------------------------------------------------------
BOND SENSITIVITY TO PREPAYMENTS (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
CLASS A-5 (to maturity)
- --------------------------------------------------------------------------------------------------------------
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Average Life (years) 27.43 14.88 11.44 8.86 6.86 5.33
Yield @ 100.00 7.28% 7.32% 7.31% 7.32% 7.30% 7.27%
Modified Duration 11.62 8.74 7.48 6.27 5.17 4.23
First Principal Payment 12/24 09/10 11/07 06/05 01/04 02/03
Last Principal Payment 07/28 05/24 08/18 05/14 07/11 11/09
Principal Window (years) 3.67 13.75 10.83 9.00 7.58 6.83
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
CLASS A-6 (to maturity)
- --------------------------------------------------------------------------------------------------------------
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Average Life (years) 10.18 7.41 6.79 6.34 5.99 5.70
Yield @ 100.00 6.77% 6.76% 6.75% 6.76% 6.79% 6.82%
Modified Duration 7.01 5.58 5.22 4.95 4.73 4.55
First Principal Payment 06/02 06/02 06/02 06/02 07/02 07/02
Last Principal Payment 05/28 01/23 09/17 10/13 11/10 09/09
Principal Window (years) 26.00 20.67 15.33 11.42 8.42 7.25
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
CLASS A-6IO (to maturity)
- --------------------------------------------------------------------------------------------------------------
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Yield @ 14.33307 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Modified Duration 0.98 0.98 0.98 0.98 0.98 0.98
- --------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS CORP.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
10
<PAGE>
MARKETING MEMORANDUM
NEW SOUTH HOME EQUITY TRUST 1999-1 PAGE 11
- --------------------------------------------------------------------------------
BOND SENSITIVITY TO PREPAYMENTS (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
CLASS A-5 (to call)
- --------------------------------------------------------------------------------------------------------------
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Average Life (years) 26.26 11.77 9.46 7.09 5.55 4.47
Yield @ par 7.28% 7.26% 7.25% 7.23% 7.21% 7.19%
Modified Duration 11.45 7.69 6.64 5.38 4.43 3.70
First Principal Payment 12/24 09/10 11/07 06/05 01/04 02/03
Last Principal Payment 09/25 03/11 12/08 09/06 03/05 02/04
Principal Window (years) 0.83 0.58 1.17 1.33 1.25 1.08
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
CLASS A-6 (to call)
- --------------------------------------------------------------------------------------------------------------
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Average Life (years) 10.18 7.39 6.73 6.06 5.24 4.50
Yield @ par 6.77% 6.75% 6.75% 6.74% 6.73% 6.72%
Modified Duration 7.01 5.57 5.19 4.79 4.27 3.77
First Principal Payment 06/02 06/02 06/02 06/02 07/02 07/02
Last Principal Payment 09/25 03/11 12/08 09/06 03/05 02/04
Principal Window (years) 23.33 8.83 6.58 4.33 2.75 1.67
- --------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS CORP.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
11
<PAGE>
MARKETING MEMORANDUM
NEW SOUTH HOME EQUITY TRUST 1999-1 PAGE 12
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
MORTGAGE LOANS CONTAINED IN THE PROSPECTUS SUPPLEMENT
- --------------------------------------------------------------------------------
FIXED RATE HOME EQUITY LOANS
Preliminary Characteristics of the Statistical Pool of Home Equity Loans as of
05/01/99
Total Number of Loans: 7,839
Total Outstanding Loan Balance: $436,889,824
Balloon (% of Total): 12.85%
Level Pay (% of Total): 87.15%
Average Loan Principal Balance: $55,733
Minimum Loan Balance: $1,844
Maximum Loan Balance: $647,210
Weighted Average CLTV: 80.30%
Weighted Average Coupon: 9.70%
Weighted Average Remaining Term to Maturity (months):
240
Weighted Average Seasoning (months): 10
Weighted Average Original Term (months): 250
Note: All of the above summary information ignores ZERO values, the
weighted averages may not reflect all loans in the pool.
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS CORP.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
12
<PAGE>
MARKETING MEMORANDUM
NEW SOUTH HOME EQUITY TRUST 1999-1 PAGE 13
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
MORTGAGE LOANS CONTAINED IN THE PROSPECTUS SUPPLEMENT
- --------------------------------------------------------------------------------
DESCRIPTION OF HOME EQUITY LOANS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
AGGREGATE FIELD DESCRIPTION COUNT BALANCE ($) POOL (%)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
State Alabama 2,657 136,749,429 31.30
Louisiana 1,404 69,818,613 15.98
Tennessee 905 57,555,028 13.17
Florida 607 36,576,418 8.37
Mississippi 802 36,147,151 8.27
Georgia 458 27,093,557 6.20
Arkansas 203 11,096,012 2.54
North Carolina 116 8,966,072 2.05
Illinois 73 7,300,905 1.67
Ohio 89 6,671,603 1.53
Virginia 92 5,667,040 1.30
Texas 60 5,472,548 1.25
South Carolina 95 5,297,649 1.21
Massachusetts 27 4,769,437 1.09
Kentucky 52 2,924,289 0.67
Indiana 42 2,659,830 0.61
California 23 2,291,083 0.52
Connecticut 15 1,704,478 0.39
New York 16 1,287,554 0.29
New Jersey 8 1,133,392 0.26
Washington 12 834,960 0.19
Arizona 9 710,110 0.16
Colorado 11 433,026 0.10
Wisconsin 6 430,241 0.10
Oregon 3 409,978 0.09
Missouri 8 404,632 0.09
Michigan 8 361,313 0.08
West Virginia 9 352,386 0.08
New Mexico 6 269,738 0.06
Oklahoma 4 258,699 0.06
Kansas 2 257,980 0.06
Nevada 4 235,690 0.05
Minnesota 5 207,947 0.05
Rhode Island 1 158,644 0.04
Utah 2 154,793 0.04
Pennsylvania 2 102,003 0.02
Maryland 1 67,711 0.02
Delaware 1 29,842 0.01
Idaho 1 28,044 0.01
-------- --------------- ---------
7,839 $436,889,824 100.00%
- -------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS CORP.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
13
<PAGE>
MARKETING MEMORANDUM
NEW SOUTH HOME EQUITY TRUST 1999-1 PAGE 14
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
MORTGAGE LOANS CONTAINED IN THE PROSPECTUS SUPPLEMENT
- --------------------------------------------------------------------------------
DESCRIPTION OF HOME EQUITY LOANS (continued)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
AGGREGATE FIELD DESCRIPTION COUNT BALANCE ($) POOL (%)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Combined LTV 10.001 - 15.000% 5 151,669 0.03
15.001 - 20.000% 13 364,609 0.08
20.001 - 25.000% 24 487,141 0.11
25.001 - 30.000% 27 741,155 0.17
30.001 - 35.000% 49 1,462,562 0.33
35.001 - 40.000% 63 1,997,353 0.46
40.001 - 45.000% 102 3,841,895 0.88
45.001 - 50.000% 135 5,358,966 1.23
50.001 - 55.000% 148 6,634,063 1.52
55.001 - 60.000% 218 9,787,902 2.24
60.001 - 65.000% 300 16,748,904 3.83
65.001 - 70.000% 445 23,110,951 5.29
70.001 - 75.000% 759 43,542,801 9.97
75.001 - 80.000% 1,606 105,363,065 24.12
80.001 - 85.000% 1,451 84,385,484 19.32
85.001 - 90.000% 1,226 79,900,517 18.29
90.001 - 95.000% 344 18,750,535 4.29
95.001 - 100.000% 864 31,387,618 7.18
100.001 - 105.000% 60 2,872,636 0.66
-------- --------------- ---------
7,839 $436,889,824 100.00%
- -------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------------
AGGREGATE FIELD DESCRIPTION COUNT BALANCE ($) POOL (%)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Current Coupon 6.001 - 7.000% 108 5,618,622 1.29
7.001 - 8.000% 337 21,762,924 4.98
8.001 - 9.000% 1,606 106,615,932 24.40
9.001 - 10.000% 2,440 149,616,163 34.25
10.001 - 11.000% 2,131 108,048,847 24.73
11.001 - 12.000% 846 33,695,129 7.71
12.001 - 13.000% 271 8,413,664 1.93
13.001 - 14.000% 68 2,146,381 0.49
14.001 - 15.000% 20 641,503 0.15
15.001 - 16.000% 10 270,738 0.06
16.001 - 17.000% 2 59,921 0.01
-------- --------------- ---------
7,839 $436,889,824 100.00%
- -------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS CORP.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
14
<PAGE>
MARKETING MEMORANDUM
NEW SOUTH HOME EQUITY TRUST 1999-1 PAGE 15
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
MORTGAGE LOANS CONTAINED IN THE PROSPECTUS SUPPLEMENT
- --------------------------------------------------------------------------------
DESCRIPTION OF HOME EQUITY LOANS (continued)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
AGGREGATE FIELD DESCRIPTION COUNT BALANCE ($) POOL (%)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Current Balance $0 - 0,000.00 87 699,287 0.16
10,000.01 - 15,000.00 296 3,838,052 0.88
15,000.01 - 20,000.00 442 7,836,962 1.79
20,000.01 - 30,000.00 1,198 30,336,735 6.94
30,000.01 - 40,000.00 1,269 44,630,560 10.22
40,000.01 - 50,000.00 1,148 51,836,991 11.87
50,000.01 - 100,000.00 2,602 177,166,695 40.55
100,000.01 - 250,000.00 741 101,973,952 23.34
250,000.01 - 500,000.00 54 17,375,250 3.98
500,000.01 - 1M 2 1,195,340 0.27
-------- --------------- ---------
7,839 $436,889,824 100.00%
- -------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------------
AGGREGATE FIELD DESCRIPTION COUNT BALANCE ($) POOL%
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Lien Type First Lien 6,455 400,503,846 91.67
Second Lien 1,384 36,385,979 8.33
-------- --------------- ---------
7,839 $436,889,824 100.00%
- -------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------------
AGGREGATE FIELD DESCRIPTION COUNT BALANCE ($) POOL (%)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Property Type Single Family 7,054 402,546,634 92.14
Manufactured Housing 709 27,460,862 6.29
Town House 61 5,727,557 1.31
Two to Four Family 9 947,563 0.22
Condominium 6 207,208 0.05
-------- --------------- ---------
7,839 $436,889,824 100.00%
- -------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS CORP.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
15
<PAGE>
MARKETING MEMORANDUM
NEW SOUTH HOME EQUITY TRUST 1999-1 PAGE 16
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
MORTGAGE LOANS CONTAINED IN THE PROSPECTUS SUPPLEMENT
- --------------------------------------------------------------------------------
DESCRIPTION OF HOME EQUITY LOANS (continued)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
AGGREGATE FIELD DESCRIPTION COUNT BALANCE ($) POOL (%)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Seasoning (months) 0 - 6 3,094 169,991,667 38.91
6+ - 12 2,327 146,226,387 33.47
12+ - 18 1,370 72,580,196 16.61
18+ - 24 610 29,780,044 6.82
Over 24 438 18,311,531 4.19
-------- --------------- ---------
7,839 $436,889,824 100.00%
- -------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------------
AGGREGATE FIELD DESCRIPTION COUNT BALANCE ($) POOL (%)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Remain Term Up to 5 Yrs 86 1,408,597 0.32
5+ - 10 Yrs 890 48,733,250 11.15
10+ - 15 Yrs 3,871 169,159,752 38.72
15+ - 18 Yrs 35 1,664,923 0.38
18+ - 20 Yrs 757 40,470,435 9.26
20+ - 25 Yrs 128 5,166,824 1.18
25+ - 30 Yrs 2,072 170,286,044 38.98
-------- --------------- ---------
7,839 $436,889,824 100.00%
- -------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------------
AGGREGATE FIELD DESCRIPTION COUNT BALANCE ($) POOL (%)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Occupancy Primary 7,536 420,691,154 96.29
Investor 137 8,205,291 1.88
Secondary 166 7,993,380 1.83
-------- --------------- ---------
7,839 $436,889,824 100.00%
- -------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
FIRST UNION CAPITAL MARKETS CORP.
THIS MARKETING MEMORANDUM SUPERSEDES ANY PREVIOUS MARKETING MEMORANDUM, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
This document does not constitute either an offer to sell or a solicitation of
an offer to buy any of the securities described herein. Offers to sell and
solicitations of offers to buy are made only by, and this document must be read
in conjunction with, the final offering circular supplement. Information
contained herein does not purport to be complete and is subject to the same
qualifications and assumptions and should be considered by investors only in the
light of the same warnings, lack of assurances and representations and other
precautionary matters, as disclosed in the offering circular supplement. The
descriptions of the securities have been prepared on the basis of certain
assumptions regarding payments, interest rates and other factors described in
the prospectus supplement.
16
