Registration No. 333-39649
Rule 424(b)(3)
Supplement to Prospectus Supplement Dated February 6, 1998
Lehman Home Equity Loan Trust 1998-1,
Home Equity Loan Asset-Backed Certificates, Series 1998-1
Norwest Bank Minnesota, National Association,
Master Servicer
On February 10, 1998, Lehman Home Equity Loan Trust 1998-1 Home Equity
Loan Asset-Backed Certificates, Series 1998-1, Class A-1, PO, X, R, M-1, M-2
and B (the "Offered Certificates") were issued in an approximate original
aggregate principal amount of $132,633,022. The Offered Certificates
represented beneficial interests in a trust fund consisting primarily of a
pool of non-conforming closed-end fixed-rate home equity loans (the "Mortgage
Loans"). The Mortgage Loans were deposited by Lehman ABS Corporation 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 and Bankers Trust Company of California, N.A., 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>
Page S-13 of the Prospectus Supplement is hereby updated by adding the
following table following the last paragraph under "The Servicer":
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>
- -------------------------
(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 "Cut-Off Date Principal
Balances" and "Mortgage Rates" under the heading "Description of the Mortgage
Loans" on pages S-16 and S-17, 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>
% of Cut-Off Date
Number of Cut-Off Date Pool
Mortgage Rates (%) Mortgage Loans Principal Balance Principal Balance
0.01 to 5,000.00...................... 73 $ 202,930.23 0.21%
5,000.01 to 10,000.00.......................... 158 1,237,594.46 1.25
10,000.01 to 15,000.00........................... 276 3,481,586.29 3.53
15,000.01 to 20,000.00........................... 299 5,233,602.06 5.30
20,000.01 to 25,000.00........................... 300 6,717,983.24 6.81
25,000.01 to 30,000.00........................... 287 7,827,685.62 7.93
30,000.01 to 35,000.00........................... 274 8,868,076.08 8.99
35,000.01 to 40,000.00........................... 200 7,552,659.93 7.65
40,000.01 to 45,000.00........................... 191 8,107,668.87 8.22
45,000.01 to 50,000.00........................... 150 7,095,809.01 7.19
50,000.01 to 55,000.00........................... 123 6,460,157.14 6.55
55,000.01 to 60,000.00........................... 110 6,306,280.40 6.39
60,000.01 to 65,000.00........................... 65 4,033,206.72 4.09
65,000.01 to 70,000.00........................... 58 3,932,715.79 3.98
70,000.01 to 75,000.00........................... 52 3,758,427.41 3.81
75,000.01 to 80,000.00........................... 33 2,555,784.25 2.59
80,000.01 to 85,000.00........................... 19 1,558,215.42 1.58
85,000.01 to 90,000.00........................... 17 1,482,915.66 1.50
90,000.01 to 95,000.00........................... 16 1,477,640.37 1.50
95,000.01 to 100,000.00............................ 13 1,261,235.75 1.28
100,000.01 to 105,000.00............................. 15 1,538,551.31 1.56
105,000.01 to 110,000.00............................. 9 967,986.29 0.98
110,000.01 to 115,000.00............................. 3 333,270.73 0.34
115,000.01 to 120,000.00............................. 7 822,447.19 0.83
120,000.01 to 125,000.00............................. 6 741,790.19 0.75
125,000.01 to 130,000.00............................. 5 637,226.37 0.65
130,000.01 to 135,000.00............................. 2 262,157.35 0.27
135,000.01 to 140,000.00............................. 5 681,533.13 0.69
140,000.01 to 145,000.00............................. 5 716,558.08 0.73
145,000.01 to 150,000.00............................. 1 147,850.25 0.15
150,000.01 to 200,000.00............................. 16 2,687,656.87 2.72
------- ---------------- -----
Total........................................... 2,788 100.00%
====== = =======
$98,689,201.87
</TABLE>
The average Principal Balance as of December 31, 1998 is
approximately $35,397.85.
<PAGE>
MORTGAGE RATES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
% of Cut-Off Date
Number of Cut-Off Date Pool
Mortgage Rates (%) Mortgage Loans Principal Balance Principal Balance
7.001 to 7.500................................... 16 $ 1.03%
1,015,886.14
7.501 to 8.000................................... 231 11,768,874.71 11.93
8.001 to 8.500................................... 359 14,945,184.95 15.14
8.501 to 9.000................................... 630 26,496,606.40 26.85
9.001 to 9.500................................... 267 9,638,674.64 9.77
9.501 to 10.000.................................... 587 18,622,203.39 18.87
10.001 to 10.500..................................... 164 4,437,004.40 4.50
10.501 to 11.000..................................... 216 5,676,365.29 5.75
11.001 to 11.500..................................... 84 1,749,268.76 1.77
11.501 to 12.000..................................... 119 2,314,381.73 2.35
12.001 to 12.500..................................... 62 1,123,874.98 1.14
12.501 to 13.000..................................... 37 611,275.67 0.62
13.001 to 13.500..................................... 12 222,642.25 0.23
13.501 to 14.000..................................... 4 66,958.56 0.07
------ ----------------- -----
Total........................................... 2,788 100.00%
====== = =======
$98,689,201.87
</TABLE>
The weighted average Mortgage Rate as of December 31, 1998 is
approximately 9.345%.
