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: September 14, 1999
(Date of earliest event reported)
PaineWebber Mortgage Acceptance Corporation IV (as depositor under the Pooling
and Master Servicing Agreement, dated as of September 1, 1999, relating to the
Fremont Home Loan Trust 1999-3, Home Loan Asset Backed Certificates, Series
1999-3)
PaineWebber Mortgage Acceptance Corporation IV
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(Exact Name of Registrant as Specified in Charter)
Delaware 333-79283 06-1204982
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
1285 Avenue of the Americas
New York, New York 10019
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (212) 713-2000
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. Other Events
Attached as an exhibit are certain Structural 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 PaineWebber Incorporated
which are hereby filed pursuant to such letter.
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ITEM 7. Financial Statements and Exhibits
(c) Exhibits
Item 601(a)
of Regulation S-K
Exhibit No. Description
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(99.1) Structural Term Sheets and Computational
Materials prepared by PaineWebber
Incorporated in connection with Fremont
Home Loan Trust 1999-3, Home Loan Asset
Backed Certificates, Series 1999-3
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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
September 14, 1999
By: /s/ Barbara Dawson
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Name: Barbara Dawson
Title: Senior Vice President
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INDEX TO EXHIBITS
Paper (P) or
Exhibit No. Description Electronic (E)
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(99.1) Structural Term Sheets and E
Computational Materials prepared by
PaineWebber Incorporated in
connection with Fremont Home Loan
Trust 1999-3, Home Loan Asset
Backed Certificates, Series 1999-3
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FREMONT HOME LOAN TRUST 1999-3
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PAINEWEBBER INCORPORATED
PRELIMINARY BACKGROUND INFORMATION
FREMONT HOME LOAN TRUST 1999-3
DISCLAIMER
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The information included herein is produced and provided exclusively by
PaineWebber Incorporated ("PW") as one of the underwriters for the Fremont Home
Loan Trust 1999-3, Home Loan Asset-Backed Certificates, Series 1999-3, and not
by or as agent for Fremont Investment & Loan or any of its affiliates
(collectively, the "Transferor" and "Master Servicer") or for PaineWebber
Mortgage Acceptance Corporation IV (the "Depositor"). Neither the Depositor nor
the Transferor has prepared, reviewed or participated in the preparation hereof,
nor are they responsible for the accuracy hereof and they have 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 IN ITS
ENTIRETY 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.
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THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PAINEWEBBER INCORPORATED FINANCIAL ADVISOR
IMMEDIATELY.
PaineWebber
1
<PAGE>
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FREMONT HOME LOAN TRUST 1999-3
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THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY
THE DESCRIPTION CONTAINED IN THE PROSPECTUS SUPPLEMENT
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$13,934,637 (APPROXIMATE) OFFERING AMOUNT
BOND SUMMARY(1)
LAST PRINCIPAL ANTICIPATED
APPROXIMATE WAL PRINCIPAL WINDOW RATINGS
CERTIFICATES SIZE COUPON(2) (YEARS)PAYMENT (YEARS) (S&P/DUFF)
B $13,934,637 9.250% 1.39 8/2001 1.17 BBB-/BBB
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(1) At a pricing speed of 27% CPR and to Maturity.
(2) Subject to a Net Interest Rate.
DESCRIPTION OF SECURITIES
GENERAL DESCRIPTION: Principal distributions on the Class B certificates
will be made primarily from a portion of the Excess
Spread and the Overcollateralization Reduction Amount
for each pool of loans. The Class B certificates
will have an approximate aggregate original principal
balance of $13,934,637 subject to a permitted
variance of plus or minus 5%. The Class B
certificates will bear interest at a per annum
pass-through rate equal to the lesser of:
(1) 9.250% and
(2) the Net Interest Rate for the Class B certificates.
CLASS B INTEREST: The Class B Certificates will receive interest payments
after the Senior Certificates have received their
monthly interest. To the extent of a shortfall in one
Pool to cover it's allocation of the Class B
Certificate's interest, cash flow can be crossed from
the other Pool to cover such shortfall.
CLASS B PRINCIPAL: The Class B Certificates will receive (1) all Excess
Spread remaining after payment of senior principal and
interest, Class B interest and certain other amounts and
(2) all overcollateralization reduction amounts until
the bond is retired in full (no cash flow will be
released to the Residual until the Class B is retired in
full).
CLASS B WRITEDOWNS: The Class B writedown for any Payment Date (after
allocation of collections in the waterfall) will equal
the excess, if any, of (1) the sum of (a) the current
aggregate Senior Certificate Balance and (b) the
current Class B Certificate balance over (2) the
current Aggregate Pool Balance. The Class B
writedowns cannot exceed the current Class B
Certificate Balance and will be reimbursable at the
bottom of the waterfall, with interest accrued on such
amounts.
CLASS A-1 AND A-2: The Class A-1 ($325,000,000 floater) and
Class A-2 ($150,000,000 floater) certificates will have
an Ambac wrap.
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THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PAINEWEBBER INCORPORATED FINANCIAL ADVISOR
IMMEDIATELY.
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PaineWebber
2
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<TABLE>
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FREMONT HOME LOAN TRUST 1999-3
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SCENARIO ANALYSIS - CLASS B CERTIFICATES
<CAPTION>
+0.0% LIBOR +1.0% LIBOR +2.0% LIBOR
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0.00% 0.50% 1.00% 1.50% 0.00% 0.50% 1.00% 1.50% 0.00% 0.50% 1.00% 1.50%
DEFAULTS (CDR) CDR CDR CDR CDR CDR CDR CDR CDR CDR CDR CDR CDR
-------------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
20 CPR Average Life 1.31 1.31 1.31 1.32 1.53 1.53 1.53 1.53 1.88 1.89 1.91 1.93
Representative 9.68% 9.68% 9.68% 9.68% 9.65% 9.65% 9.65% 9.65% 9.61% 9.61% 9.61% 9.61%
Yield
Duration 1.18 1.18 1.18 1.18 1.36 1.36 1.36 1.37 1.64 1.65 1.67 1.69
Cumulative 0.00% 1.50% 2.94% 4.33% 0.00% 1.50% 2.95% 4.34% 0.00% 1.51% 2.96% 4.35%
Losses
24 CPR Average Life 1.35 1.36 1.36 1.36 1.58 1.59 1.59 1.59 1.95 1.98 2.00 2.06
Representative 9.68% 9.68% 9.68% 9.68% 9.64% 9.64% 9.64% 9.64% 9.61% 9.60% 9.60% 9.60%
Yield
Duration 1.22 1.22 1.22 1.22 1.41 1.41 1.41 1.41 1.70 1.72 1.74 1.79
Cumulative 0.00% 1.16% 2.29% 3.40% 0.00% 1.17% 2.30% 3.40% 0.00% 1.17% 2.30% 3.40%
Losses
27 CPR Average Life 1.39 1.39 1.39 1.39 1.63 1.64 1.64 1.64 2.00 2.03 2.09 2.18
Representative 9.67% 9.67% 9.67% 9.67% 9.64% 9.64% 9.64% 9.64% 9.60% 9.60% 9.60% 9.59%
Yield
Duration 1.25 1.25 1.25 1.25 1.45 1.45 1.45 1.45 1.74 1.76 1.81 1.88
Cumulative 0.00% 0.98% 1.92% 2.85% 0.00% 0.98% 1.93% 2.87% 0.00% 0.98% 1.94% 2.87%
Losses
30 CPR Average Life 1.43 1.43 1.43 1.43 1.69 1.69 1.70 1.70 2.06 2.08 2.14 2.27
Representative 9.66% 9.66% 9.66% 9.66% 9.63% 9.63% 9.63% 9.63% 9.60% 9.60% 9.59% 9.58%
Yield
Duration 1.28 1.28 1.28 1.28 1.49 1.49 1.50 1.50 1.79 1.81 1.85 1.95
Cumulative 0.00% 0.83% 1.63% 2.42% 0.00% 0.83% 1.63% 2.42% 0.00% 0.83% 1.63% 2.42%
Losses
35 CPR Average Life 1.51 1.51 1.52 1.52 1.80 1.80 1.81 1.81 2.14 2.17 2.23 2.37
Representative 9.65% 9.65% 9.65% 9.65% 9.62% 9.62% 9.62% 9.62% 9.59% 9.59% 9.59% 9.58%
Yield
Duration 1.35 1.35 1.35 1.35 1.58 1.58 1.59 1.59 1.86 1.88 1.92 2.03
Cumulative 0.00% 0.63% 1.26% 1.86% 0.00% 0.63% 1.26% 1.86% 0.00% 0.64% 1.26% 1.86%
Losses
</TABLE>
DEFAULTS: Constant Default Rate (CDR) as a percentage of the current
collateral balance with no delay to loss. Zero assumed for the
first 12 months.
LIBOR: Scenarios increasing over an 18 month period (+2.0% assumes
increase of approximately 0.11% in month 1, 0.22% in month 2,
..., and 2.0% in month 18).
PREPAYMENTS: Constant CPR for life. The Optional Redemption does not effect
this analysis.
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THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PAINEWEBBER INCORPORATED FINANCIAL ADVISOR
IMMEDIATELY.
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PaineWebber
