This information is furnished to you solely by Greenwich Capital Markets, Inc.
and not by the issuer of the securities or any of its affiliates. Greenwich
Capital Markets, Inc. is acting as Underwriter and not acting as Agent for the
issuer or its affiliates in connection with the proposed
transaction.
This Preliminary Term Sheet is provided for information purposes only, and does
not constitute an offer to sell, nor a solicitation of an offer to buy, the
referenced securities. It does not purport to be all-inclusive or to contain
all of the information that a prospective investor may require to make a
full analysis of the transaction. All amounts are approximate and subject
to change. The information contained herein supersedes information contained
in any prior term sheet for this transaction. In addition, the information
contained herein will be superseded by information contained in term sheets
circulated after the date hereof and by information contained in the Prospectus
and Prospectus Supplement for this transaction. An offering may be made only
through the delivery of the Prospectus and Prospectus Supplement.
Preliminary Term Sheet Date Prepared: October 26, 2000
HSBC MORTGAGE CORPORATION (USA)
Mortgage Pass-Through Certificates, Series 2000-HSBC1
HSBC
$389,122,000 (Approximate, Subject to Final Collateral)
Publicly Offered Certificates
5/1 Jumbo Adjustable Rate Residential Mortgage Loans
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GREENWICH CAPITAL 1
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See Disclaimer on Page 1 of this Preliminary Term Sheet.
Initial
WAL to Put(3) Payment Window Certificate
Principal(1) (4)/Mat To Put (3)(4)/Mat Interest Rate Expected Ratings
Class Amount (Approx.) (Years) (Months) Type Tranche Type Fitch/S&P/Moody's(7)
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<S> <C> <C> <C> <C>
A-1 $137,000,000 1.00/1.00 1-25/1-25 (5) Senior/Sequential AAA/AAA/Aaa
A-2 99,000,000 3.07/3.18 25-44/25-54 (5) Senior/Sequential AAA/AAA/Aaa
A-3 140,285,000 3.68/9.11 44-44/54-356 (5) Senior/Sequential AAA/AAA/Aaa
X (2) N/A N/A IO(6) Senior/Interest Only AAA/AAA/Aaa
A-R [____] N/A N/A (5) Senior/Residual [AAA/AAA/NR]
B-1 5,925,000 7.16/8.00 41-131/41-356 (5) Subordinate AA/AA/Aa2
B-2 3,950,000 7.16/8.00 41-131/41-356 (5) Subordinate A/A/A2
B-3 2,962,000 7.16/8.00 41-131/41-356 (5) Subordinate BBB/BBB/Baa2
B-4 2,172,000 Privately (5) Subordinate BB/BB/Ba2
B-5 1,382,000 Placed (5) Subordinate B/B/B2
B-6 2,373,897 Certificates (5) Subordinate NR/NR/NR
Total $395,049,897
(1) The Certificates (as described herein) are collateralized by a pool of
5/1 Jumbo ARM loans. Class sizes are subject to final collateral and
rating agency approval.
(2) The Class X Certificates will have no principal balance and will bear
interest on their notional amount, which is equal to the aggregate
principal balance of the Mortage Loans from time to time. The Class X
Certificates will not be entitled to receive any distributions of
principal.
(3) As described herein, the Class A-1, Class A-2 or Class A-3 Certificates
may be put to HSBC Bank USA under certain circumstances.
(4) WAL and Payment window to Call for all Offered Certificates, except the
Class A-1, Class A-2 and Class A-3 Certificates. WAL and Payment Window
to Put for the Class A-1, Class A-2 and Class A-3 Certificates.
(5) For every Distribution Date on or prior to the Put Date, the Certificates
(other than the Class A-R and the Class X Certificates) initially will
have a coupon equal to the lesser of (a) a fixed rate and (b) the Net WAC
of the Mortgage Loans. For every Distribution Date thereafter, the
Interest Rate for the Certificates wil be equal to the lesser of (a) CMT+
[2.25]% and (b) the Net WAC of the Mortgage Loans.
(6) The Class X Certificates will receive the positive difference, if any,
between the Net WAC of the Mortgage Loans and the weighted average of the
Certificate Interest Rates.
(7) [In addition, ratings of [_] and [_] by [_] and [_], respectively, will
be implied to each of the Class A Certificates (other than the Class A-R
and Class X Certificates) refecting the creditworthiness of HSBC Bank USA
to fulfill its obligations with respect to the Put Option (as described
herein).]
GREENWICH CAPITAL 2
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<S> <C>
Underwriter: Greenwich Capital Markets, Inc.
Seller and Servicer: HSBC Mortgage Corporation (USA), ("HSBC Mortgage").
Depositor: Greenwich Capital Acceptance, Inc. ("GCA").
Put Provider: HSBC Bank USA ("HSBC Bank").
Trustee/Custodian/
Paying Agent: Wells Fargo Bank Minnesota, N.A.
Cut-off Date: November 1, 2000.
Pricing Date: On or about October [26], 2000.
Closing Date: On or about November [15], 2000.
Certificates: The "Senior Certificates" will consist of (i) the Class A-1, Class A-2, Class
A-3 Certificates (the "Class A Certificates"), the Class X Certificates and the
Class A-R Certificate. The "Subordinate Certificates" will consist of the Class
B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates. The
Senior Certificates and the Subordinate Certificates are collectively referred
to herein as the "Certificates". Only the Senior Certificates and the Class
B-1, Class B-2 and Class B- 3 Certificates (collectively, the "Offered
Certificates") are being offered publicly.
Accrued Interest: The Certificates will settle with accrued interest. The price to be paid by
investors for the Certificates will include accrued interest from November 1,
2000 (the "Cut-off Date") up to, but not including, the Closing Date ([14]
days).
Interest Accrual Period: The interest accrual period for the Certificates will be the calendar month
preceding the month in which such Distribution Date occurs (on a 30/360 basis).
Distribution Dates: The [18]th day of each month (or the next succeeding business day), commencing
on December [18], 2000.
Registration: The Offered Certificates (except for the Class A-R Certificate) will be made
available in book-entry form through DTC.
Federal Tax Treatment: It is anticipated that the Offered Certificates (except for the Class A-R and
Class X Certificates) will each be treated in part as a REMIC regular interest
and in the case of the Class A Certificates, in part as ownership of a put
option for tax purposes. The Class X Certificates will be treated as REMIC
regular interests. The Class A-R Certificate will be treated as a REMIC
residual interest for tax purposes.
ERISA Eligibility: The Senior Certificates (except for the Class A-R Certificate) are expected to
be ERISA eligible. Prospective investors should review with their legal
advisors whether the purchase and holding of the Offered Certificates could
give rise to a transaction prohibited or not otherwise permissible under ERISA,
the Code or other similar laws.
SMMEA Treatment: The Senior Certificates and the Class B-1 Certificates are expected to
constitute "mortgage related securities" for purposes of SMMEA.
GREENWICH CAPITAL 3
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Put Option: During the [5 business day] period ending on the Distribution Date in [July
2004], each of the Class A Certificates will have the option to require HSBC
Bank to purchase such Certificateholder's Certificates on the Distribution Date
in [July 2004] (the "Put Date"). The repurchase price will be par (based on the
outstanding certificate balance) plus accrued interest.
Optional Call: If the Put Option is exercised with respect to more than 90% of the aggregate
outstanding principal balance of the Class A Certificates, HSBC Bank will have
the option to purchase all of the outstanding Class A Certificates, including
such Class A Certificates with respect to which the applicable
Certificateholder has not exercised the Put Option.
Optional Termination: The terms of the transaction allow for a termination of the trust (and payment
in full of the Certificates), which may be exercised by [Servicer], once the
current principal balance of the Mortgage Loans is equal to [10]% or less of
the initial principal balance of the Mortgage Loans as of the Cut-off Date.
Pricing Prepayment
Speed: The Offered Certificates [(other than the Class X Certificates)] will be priced
to a prepayment speed of [18]% CPR.
Rating Agencies: Moody's, Fitch and S&P will rate all of the Offered Certificates. It is
expected that the Certificates will be rated pursuant to the credit ratings on
page 1 of this Preliminary Term Sheet.
Mortgage Loans: As of the Cut-off Date, the aggregate principal balance of the Mortgage Loans
(the "Pool Balance") is expected to be approximately $395,049,897. The Mortgage
Loans consist of non-convertible adjustable rate One Year CMT indexed mortgage
loans with rate adjustments occurring 60 months after the date of origination
of each loan ("5/1 Jumbo ARM" loans). The Mortgage Loans are secured by first
liens on one- to four-family residential properties. For further information,
please see the attached collateral description of the Mortgage Loans.
Credit Enhancement: Senior/subordinate, shifting interest structure.
Credit enhancement for the Senior Certificates will consist of the subordination of the
Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates (total
subordination initially [4.75]%).
Credit enhancement for the Class B-1 Certificates will consist of the subordination of
the Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates (total
subordination initially [3.25]%).
Credit enhancement for the Class B-2 Certificates will consist of the subordination of
the Class B-3, Class B-4, Class B-5 and Class B-6 Certificates (total subordination
initially [2.25]%).
Credit enhancement for the Class B-3 Certificates will consist of the subordination of
the Class B-4, Class B-5 and Class B-6 Certificates (total subordination initially
[1.50]%).
Shifting Interest: Until the first Distribution Date occurring after [November 2010] the
Subordinate Certificates will be locked out from receipt of any principal
(unless the Senior Certificates are paid down to zero prior to such date).
After such time and subject to standard collateral performance triggers, the
Subordinate Certificates will receive their pro-rata share of scheduled
principal and the increasing portions of unscheduled principal payments. The
prepayment percentages on the Subordinate Certificates are as follows:
GREENWICH CAPITAL 4
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Periods Unscheduled Principal Payments (%)
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December 2000 - November 2010 0% Pro Rata Share
December 2010 - November 2011 30% Pro Rata Share
December 2011 - November 2012 40% Pro Rata Share
December 2012 - November 2013 60% Pro Rata Share
December 2013 - November 2014 80% Pro Rata Share
December 2014 and after 100% Pro Rata Share
Notwithstanding the foregoing, if the credit enhancement provided by the
Subordinate Certificates doubles, all principal (scheduled principal and
prepayments) will be paid pro-rata between the Senior and Subordinate
Certificates (subject to the performance triggers as described in the
prospectus supplement). However, if the credit enhancement provided by the
Subordinate Certificates has doubled prior to the third anniversary of the
Cut-off Date (subject to the performance triggers as described in the
prospectus supplement), then the Subordinate Certificates will be entitled to
only 50% of their pro-rata share of principal (scheduled principal and
prepayments).
Any principal payment not allocated to the Subordinate Certificates will be
allocated to the Senior Certificates. In the event the current senior
percentage (current senior balance divided by the current pool balance) exceeds
the initial senior percentage (aggregate initial senior balance divided by pool
balance), the Senior Certificates will receive all unscheduled principal
prepayments, regardless of the prepayment percentage otherwise applicable.
Allocation of
Realized Losses: Any realized losses, other than excess losses, on the Mortgage Loans will be
allocated as follows: first, to the Subordinate Certificates in reverse order
of their numerical Class designations, in each case until the respective Class
principal balance has been reduced to zero; thereafter, to the Senior
Certificates pro-rata in reduction of their respective principal balances.
Excess losses (bankruptcy, special hazard and fraud losses in excess of the
carve out amounts established by the rating agencies) will be allocated to all
Classes of Certificates on a pro-rata basis.
Certificates Priority of
Distributions: Available funds from the Mortgage Loans will be distributed in the following
order of priority:
(i) Senior Certificates, accrued and unpaid interest at the related Certificate
Interest Rate.
(ii) Class A-R Certificate, principal, until its balance is reduced to zero.
(iii) Class A-1, Class A-2 and Class A-3 Certificates, in sequential order,
principal, until their respective balances are reduced to zero.
(iv) Class B-1 Certificates, accrued and unpaid interest at the Class B-1
Certificate Interest Rate.
(v) Class B-1 Certificates, principal.
(vi) Class B-2 Certificates, accrued and unpaid interest at the Class B-2
Certificate Interest Rate.
(vii) Class B-2 Certificates, principal.
(viii) Class B-3 Certificates, accrued and unpaid interest at the Class B-3
Certificate Interest Rate.
(ix) Class B-3 Certificates, principal.
(x) Class B-4, Class B-5 and Class B-6 Certificates, in sequential order,
accrued and unpaid interest at the respective Certificate Interest Rate and the
respective share of principal.
(xi) Class A-R Certificate, any remaining amount.
GREENWICH CAPITAL 5
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