Registration No. 333-39649
Rule 424(b)(3)
Supplement to Prospectus Supplement Dated June 16, 1998
Lehman Home Equity Loan Trust 1998-2,
Home Equity Loan Asset-Backed Certificates, Series 1998-2
Norwest Bank Minnesota, National Association,
Master Servicer
On June 18, 1998, Lehman Home Equity Loan Trust 1998-2 Home Equity Loan
Asset-Backed Certificates, Series 1998-2, Class A-1, A-2, M-1, M-2 and B-1
(the "Offered Certificates") were issued in an approximate original aggregate
principal amount of $209,850,000. The Offered Certificates represented
beneficial interests in a trust fund consisting primarily of a pool of
sub-prime closed-end adjustable rate (having initial fixed rate periods of six
months, two years, three years or five years) and fixed rate, fully amortizing
and balloon, mortgage loans (the "Mortgage Loans"). The Mortgage Loans were
deposited by Lehman ABS Corporations into the trust fund for the benefit of
certificateholders pursuant to a pooling and servicing agreement by and among
Lehman ABS Corporation, as depositor, Norwest Bank Minnesota, National
Association, as master servicer, Aurora Loan Services Inc., as Servicer, Ocwen
Federal Bank FSB, as special servicer and First Union National Bank, as
trustee. Lehman Brothers Inc., the underwriter, is an affiliate of the
depositor and of Aurora Services Inc.
This supplement to the above-referenced Prospectus Supplement and the
related prospectus dated December 15, 1997 (together, the "Prospectus")
supplements and updates certain of the information set forth in the
Prospectus. Capitalized terms not defined herein have the meanings ascribed to
them in the Prospectus.
Underwriter:
LEHMAN BROTHERS
March 31, 1999
<PAGE>
The table set forth under the heading "The Servicer" on page S-18 of the
Prospectus Supplement is hereby updated, in its entirety, as follows:
Aurora Loan Services Inc.
Delinquencies and Foreclosures
(Dollars in Million)
<TABLE>
<CAPTION>
<S> <C>
As of December 31, 1998 (3)
Total balance of mortgage loans serviced..................................... $6,096
Percentage of mortgage loans delinquent by period of delinquency (1) (2)
30 to 59 days............................................................ 3.21%
60 to 89 days............................................................ 0.92
90 days or more.......................................................... 0.42
----
Total percentage of mortgage loans delinquent (1) (2) ....................... 4.55%
In foreclosure (excluding bankruptcies).................................. 2.10
In bankruptcy............................................................ 0.61
----
Total (2).................................................................... 7.26%
</TABLE>
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(1) Delinquency information is for conventional and subprime loans only,
excluding bankruptcies.
(2) Percentages are based on the number of mortgage loans.
(3) A weighted average of the MBS method for conventional loans and the ABS
method for subprime loans is used in calculation of delinquency
percentage. Under the MBS methodology, a loan is considered delinquent if
any payment is past due one or more days. In contrast, under the ABS
methodology, a loan is considered delinquent if any payment is past due
30 days or more. The period of delinquency is based upon the number of
days that payments are contractually past due (assuming 30-day months).
Consequently, under the ABS methodology, a loan due on the first day of a
month is not 30 days delinquent until the first day of the next month.
<PAGE>
The information contained in the tables entitled "Mortgage Rate" and
"Cut-off Date Principal Balances" under the heading "Description of the
Mortgage Loans" on pages S-25 and S-28, respectively, of the Prospectus
Supplement is hereby updated to indicate, as of December 31, 1998, the
Mortgage Loan Balances and Mortgage Rates of the Mortgage Loans:
PRINCIPAL BALANCES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Percentage of
Mortgage Loans
Range of Number of Aggregate by Aggregate
Principal Balances ($) Mortgage Loans Principal Balance Principal Balance
---------------------- -------------- ----------------- -----------------
0.01 to 5,000.00...................... 1 $ 1,394.06 0.00%
5,000.01 to 10,000.00.......................... 13 117,940.57 0.07
10,000.01 to 15,000.00........................... 27 355,267.44 0.21
15,000.01 to 20,000.00........................... 35 633,768.32 0.38
20,000.01 to 25,000.00........................... 66 1,511,297.78 0.90
25,000.01 to 30,000.00........................... 88 2,446,620.44 1.46
30,000.01 to 35,000.00........................... 82 2,678,776.73 1.60
35,000.01 to 40,000.00........................... 96 3,631,388.53 2.17
40,000.01 to 45,000.00........................... 89 3,842,378.44 2.29
45,000.01 to 50,000.00........................... 96 4,586,450.06 2.74
50,000.01 to 55,000.00........................... 107 5,629,037.59 3.36
55,000.01 to 60,000.00........................... 83 4,816,088.98 2.87
60,000.01 to 65,000.00........................... 91 5,688,103.75 3.40
65,000.01 to 70,000.00........................... 101 6,796,877.69 4.06
70,000.01 to 75,000.00........................... 94 6,831,292.82 4.08
75,000.01 to 80,000.00........................... 78 6,080,035.97 3.63
80,000.01 to 85,000.00........................... 52 4,290,200.05 2.56
85,000.01 to 90,000.00........................... 69 6,027,687.05 3.60
90,000.01 to 95,000.00........................... 65 6,025,307.13 3.60
95,000.01 to 100,000.00............................ 67 6,555,426.58 3.91
100,000.01 to 105,000.00............................. 48 4,929,915.84 2.94
105,000.01 to 110,000.00............................. 61 6,565,881.79 3.92
110,000.01 to 115,000.00............................. 37 4,165,051.97 2.49
115,000.01 to 120,000.00............................. 48 5,640,739.67 3.37
120,000.01 to 125,000.00............................. 35 4,283,084.50 2.56
125,000.01 to 130,000.00............................. 41 5,215,303.65 3.11
130,000.01 to 135,000.00............................. 21 2,798,464.32 1.67
135,000.01 to 140,000.00............................. 20 2,761,845.83 1.65
140,000.01 to 145,000.00............................. 21 3,003,108.14 1.79
145,000.01 to 150,000.00............................. 16 2,360,161.43 1.41
150,000.01 to 200,000.00............................. 174 32,440,744.35 19.36
250,000.01 to 300,000.00............................. 23 6,391,531.75 3.82
300,000.01 to 350,000.00............................. 19 6,175,542.65 3.69
350,000.01 to 400,000.00............................. 5 1,846,015.19 1.10
400,000.01 to 450,000.00............................. 1 407,994.92 0.24
------- -------------- ------
Total........................................... 1,970 $ 100.00%
====== = == =======
167,530,725.98
</TABLE>
The average Principal Balance as of December 31, 1998 is
approximately $85,040.98.
<PAGE>
MORTGAGE RATE (1)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Percentage of
Mortgage Loans
Number of Aggregate by Aggregate
Range of Mortgage Rates (%) Mortgage Loans Principal Balance Principal Balance
7.001 to 7.500................................... 7 $ 829,940.96 0.50%
7.501 to 8.000................................... 27 3,226,278.68 1.93
8.001 to 8.500................................... 108 12,486,346.71 7.45
8.501 to 9.000................................... 199 22,793,803.45 13.61
9.001 to 9.500................................... 282 24,072,939.37 14.37
9.501 to 10.000.................................... 362 36,315,099.42 21.68
10.001 to 10.500..................................... 231 18,183,658.21 10.85
10.501 to 11.000..................................... 317 25,186,205.77 15.03
11.001 to 11.500..................................... 130 7,852,081.94 4.69
11.501 to 12.000..................................... 106 6,572,590.66 3.92
12.001 to 12.500..................................... 66 3,372,418.53 2.01
12.501 to 13.000..................................... 59 2,945,143.68 1.76
13.001 to 13.500..................................... 56 2,736,225.15 1.63
14.001 to 14.500..................................... 17 813,367.32 0.49
15.001 to 15.500..................................... 1 46,940.94 0.03
15.501 to 16.000..................................... 1 31,388.99 0.02
17.001 to 17.500..................................... 1 66,296.20 0.04
------ ----------------- ------
Total........................................... 1,970 $ 100.00%
====== = == =======
167,530,725.98
</TABLE>
- --------------------------
(1) Reflects current Mortgage Rates of Adjustable Rate Mortgage Loans.
The weighted average Mortgage Rate as of December 31, 1998 is
approximately 9.989%.
