Registration No. 33-76940
Rule 424(b)(3)
PROSPECTUS SUPPLEMENT TO PROSPECTUS DATED MAY 4, 1994
ML Home Equity Loan Asset Backed Certificates,
Series 1994-1, Class A-1 and Class A-2
MERRILL LYNCH CREDIT CORPORATION
Servicer
MERRILL LYNCH HOME EQUITY ACCEPTANCE, INC.
Seller
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On May 5, 1994, the ML Home Equity Loan Trust 1994-1 (the "Trust")
issued the ML Home Equity Loan Asset Backed Certificates, Series 1994-1 in an
original aggregate principal amount of $355,138,000. Each Certificate
represented an undivided interest in the Trust created pursuant to a Pooling
and Servicing Agreement dated as of April 1, 1994 among Merrill Lynch Home
Equity Acceptance, Inc., as seller, Merrill Lynch Credit Corporation, as
servicer, and Bankers Trust Company of California, N.A., as trustee. This
Prospectus Supplement to the above-referenced Prospectus (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.
The first paragraph and the first two tables set forth after the first
paragraph under the heading "MLCC and its Equity Access Program--Delinquency
and Loan Loss Experience" and the first two tables set forth after the second
paragraph under the heading "MLCC and its Equity Access Program --
Delinquency and Loan Loss Experience" on pages 23 through 26 of the
Prospectus are hereby updated, in their entirety, as follows:
The following tables set forth information relating to (i) the
delinquency and loan loss experience on the home equity revolving credit
line mortgage loans originated by MLCC and included in MLCC's servicing
portfolio as of and for each of the six years in the period ended
December 31, 1996 and (ii) the delinquency and loan loss experience on
the home equity revolving credit line mortgage loans included in the
portfolio of mortgage loans acquired in June 1992 by the Seller from the
Dime Savings Bank of New York, FSB (the "Dime Portfolio"), which
includes the Dime Mortgage Loans, as of and for the year ended December
31, 1993, the year ended December 31, 1994, the year ended December 31,
1995 and the year ended December 31, 1996. Information prior to
December 31, 1993 for the Dime Portfolio is available only from the
records of the Dime and is not sufficiently verifiable by the Seller.
The information shown for the Dime Portfolio, because of the short
period that it covers, may not be representative of the delinquency and
loan loss experience on such loans over a longer historical period. The
delinquency and loan loss experience set forth in the following tables
represents the historical experience of MLCC for the dates and period
given, and there can be no assurance that the future experience on the
Mortgage Loans in the Trust will be the same as, or more favorable than,
(i) that of the total mortgage loans in MLCC's servicing portfolio,
which mortgage loans are not fully seasoned and the terms of which do
not require the payment of principal until final maturity or (ii) that
of the total mortgage loans in the Dime Portfolio, which mortgage loans
are now serviced by MLCC.
<TABLE>
MORTGAGE LOAN DELINQUENCY EXPERIENCE
(DOLLARS IN THOUSANDS)
<CAPTION>
As of December 31,
------------------------------------------------------------------------------------
1991 1992 1993 1994 1995 1996
----- -------- --------- ------- --------- ------------
<S> <C> <C> <C> <C> <C> <C>
Number of revolving credit
line loans serviced . . . . . . 15,913 15,084 13,839 15,598 25,056 28,368
Aggregate loan balance of
revolving credit line
loans serviced . . . . . . . . $1,073,492 $1,062,930 $1,037,427 $1,079,693 $1,293,483 $1,353,800
Loan balance of revolving
credit line loans 2 months
delinquent . . . . . . . . . . $ 2,250 $ 3,717 $ 5,161 $ 5,358 $ 8,447 $ 8,292
Loan balance of revolving
credit line loans 3 months
or more delinquent . . . . . . $ 22,361 $ 18,751 $ 17,508 $ 22,989 $ 33,763 $ 39,508
Total of 2 months or more
delinquent as a percentage
of aggregate loan balance of
revolving credit line loans . . 2.29% 2.11% 2.19% 2.63% 3.26% 3.53%
</TABLE>
<TABLE>
MORTGAGE LOAN LOSS EXPERIENCE
(DOLLARS IN THOUSANDS)
<CAPTION>
As of December 31,
---------------------------------------------------------------------------------------
1991 1992 1993 1994 1995 1996
---------- --------- ---------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Number of revolving credit
line loans serviced . . . . . . 15,913 15,084 13,839 15,598 25,056 28,368
Aggregate loan balance of
revolving credit line
loans serviced . . . . . . . . $1,073,492 $1,062,930 $1,037,427 $1,079,693 $1,293,483 $1,353,800
For the Period:
Gross Charge-offs
dollars . . . . . . . . . . . $ 936 $ 1,447 $ 3,153 $ 1,118 $ 3,700 $ 1,860
Percentage(1) 0.09% 0.14% 0.30% 0.10% 0.29% 0.14%
</TABLE>
__________________________
(1) As a percentage of aggregate balance of revolving credit line loans
serviced.
<TABLE>
DIME PORTFOLIO DELINQUENCY EXPERIENCE
<CAPTION>
AS OF DECEMBER 31,
---------------------------------------------
1993 1994 1995 1996
---------- --------- -------- --------
<S> <C> <C> <C> <C>
Number of revolving credit line loans Serviced . . . 5,033 4,417 3,919 3,356
Aggregate loan balance of revolving credit line
loans serviced . . . . . . . . . . . . . . . . . . $273,325 $233,053 $200,367 $163,241
Loan balance of revolving credit line loans
2 Months delinquent . . . . . . . . . . . . . . . . $ 773 $ 1,743 $ 1,000 $ 1,039
Loan balance of revolving credit line loans 3 mos.
or more delinquent . . . . . . . . . . . . . . . . $ 807 $ 2,056 $ 2,885 $ 3,145
Total of 2 months or more delinquent as a percentage
of aggregate loan balance of revolving credit line
loans serviced . . . . . . . . . . . . . . . . . . 0.58% 1.63% 1.94% 2.56%
Dime Portfolio Loan Loss Experience
As of December 31,
---------------------------------------------
1993 1994 1995 1996
---------- --------- -------- --------
<S> <C> <C> <C> <C>
As of end of period:
Number of revolving credit line loans serviced . . 5,033 4,417 3,919 3,356
Aggregate loan balance of revolving credit line $273,325 $233,053 $200,367 $163,241
For the period:
Gross charge-offs dollars . . . . . . . . . . . . . $ 0 $ 74 $ 95 $ 327
Percentage(1) . . . . . . . . . . . . . . . . . . . 0.00% 0.03% 0.05% 0.20%
</TABLE>
_______________
(1) As a percentage of aggregate balance of revolving credit line loans
serviced.
Additionally, the information contained in the tables entitled "Cut-Off
Date Trust Balances of MLCC Mortgage Loans" and "Cut-Off Date Trust Balances
of Dime Mortgage Loans" under the heading "The Mortgage Loan Pool" on pages
28 and 35, respectively, of the Prospectus are hereby updated to indicate, as
of December 31, 1996, the Loan Balances of the Mortgage Loans:
TRUST BALANCES OF MLCC MORTGAGE LOANS AS OF DECEMBER 31, 1996
<TABLE>
<CAPTION> % of MLCC
Mortgage Loans
Number of Trust by Trust
Range of Trust Balances Mortgage Loans Balance Balance
----------------------- -------------- ------- ---------
<S> <C> <C> <C>
$ 4,999.99 or Lower . . . . . . . . . 740 $ 1,731,434.11 1.72%
$ 5,000.00- 9,999.99 . . . . . . . . . 361 2,536,603.17 2.52
$ 10,000.00-14,999.99 . . . . . . . . . 220 2,704,550.41 2.69
$ 15,000.00-19,999.99 . . . . . . . . . 138 2,399,195.65 2.38
$ 20,000.00-24,999.99 . . . . . . . . . 126 2,806,542.72 2.79
$ 25,000.00-29,999.99 . . . . . . . . . 107 2,939,088.81 2.92
$ 30,000.00-34,999.99 . . . . . . . . . 77 2,486,256.72 2.47
$ 35,000.00-39,999.99 . . . . . . . . . 58 2,182,862.57 2.17
$ 40,000.00-44,999.99 . . . . . . . . . 50 2,108,893.82 2.09
$ 45,000.00-49,999.99 . . . . . . . . . 47 2,249,364.46 2.23
$ 50,000.00-54,999.99 . . . . . . . . . 45 2,357,973.15 2.34
$ 55,000.00-59,999.99 . . . . . . . . . 38 2,203,709.39 2.19
$ 60,000.00-64,999.99 . . . . . . . . . 31 1,941,827.65 1.93
$ 65,000.00-69,999.99 . . . . . . . . . 31 2,098,558.42 2.08
$ 70,000.00-74,999.99 . . . . . . . . . 24 1,737,086.71 1.73
$ 75,000.00-99,999.99 . . . . . . . . . 114 9,862,518.59 9.80
$ 100,000.00-149,999.99 . . . . . . . . 93 11,205,031.22 11.11
$ 150,000.00-199,999.99 . . . . . . . . 51 8,915,714.24 8.86
$ 200,000.00-249,999.99 . . . . . . . . 36 7,959,358.53 7.91
$ 250,000.00-299,999.99 . . . . . . . . 16 4,253,159.59 4.22
$ 300,000.00-349,999.99 . . . . . . . . 10 3,296,103.87 3.27
$ 350,000.00-399,999.99 . . . . . . . . 6 2,334,234.92 2.32
$ 400,000.00-449,999.99 . . . . . . . . 6 2,477,403.68 2.46
$ 450,000.00-499,999.99 . . . . . . . . 2 973,007.27 0.97
$ 500,000.00-549,999.99 . . . . . . . . 1 539,882.00 0.54
$ 550,000.00-599,999.99 . . . . . . . . 1 550,000.00 0.55
$ 600,000.00-649,999.99 . . . . . . . . 2 1,240,468.03 1.23
$ 750,000.00-799,999.99 . . . . . . . . 2 1,508,024.00 1.50
$ 1,000,000.00-1,099,999.99 . . . . . . 1 1,013,837.74 1.01
$ 1,100,000.00-1,199,999.99 . . . . . . 1 1,157,945.81 1.15
$ 1,200,000.00-1,299,999.99 . . . . . . 1 1,205,555.75 1.20
$ 1,400,000.00-1,499,999.99 . . . . . . 1 1,499,912.00 1.49
$ 1,700,000.00-1,799,999.99 . . . . . . 1 1,700,000.00 1.69
$ 1,900,000.00-1,999,999.99 . . . . . . 1 1,999,383.23 1.99
$ 2,400,000.00-2,499,999.99 . . . . . . 1 2,499,383.57 2.48
--------- --------------- ------
TOTALS . . . . . . . 2,440 $100,674,871.80 100.00%
========= =============== ======
</TABLE>
TRUST BALANCES OF DIME MORTGAGE LOANS AS OF DECEMBER 31, 1996
<TABLE>
<CAPTION> % of Dime
Number of Trust Mortgage Loans
Range of Trust Balances Mortgage Loans Balance by Trust Balance
----------------------- --------------- ------- ----------------
<S> <C> <C> <C>
$ 4,999.00 or Lower . . . . . . . . . . . 524 $ 1,177,679.08 7.33%
$5,000.00-9,999.99 . . . . . . . . . . . 302 2,150,510.42 13.38
$10,000.00-14,999.99 . . . . . . . . . . 170 2,078,529.90 12.93
$15,000.00-19,999.99 . . . . . . . . . . 82 1,393,460.17 8.67
$20,000.00-24,999.99 . . . . . . . . . . 68 1,513,780.49 9.42
$25,000.00-29,999.99 . . . . . . . . . . 48 1,312,904.38 8.17
$30,000.00-34,999.99 . . . . . . . . . . 31 1,003,012.30 6.24
$35,000.00-39,999.99 . . . . . . . . . . 28 1,048,831.56 6.52
$40,000.00-44,999.99 . . . . . . . . . . 10 423,441.07 2.63
$45,000.00-49,999.99 . . . . . . . . . . 9 428,048.81 2.66
$50,000.00-54,999.99 . . . . . . . . . . 10 517,493.45 3.22
$55,000.00-59,999.99 . . . . . . . . . . 8 454,878.62 2.83
$60,000.00-64,999.99 . . . . . . . . . . 1 63,241.62 0.39
$70,000.00-74,999.99 .. . . . . . . . . . 3 219,392.43 1.36
$75,000.00-99,999.99 . . . . . . . . . . 10 912,493.08 5.68
$100,000.00-149,999.99 . . . . . . . . . 4 448,047.65 2.79
$150,000.00-199,999.99 . . . . . . . . . 1 186,018.28 1.16
$200,000.00-249,999.99. . . . . . . . . . 2 443,739.29 2.76
$250,000.00-299,999.99 . . . . . . . . . 1 299,000.00 1.86
-------- -------------- ---------
TOTALS . . . . . . . . 1,312 $16,072,502.60 100.00%
======== ============== =========
</TABLE>
____________________
The date of this Supplement is March 31, 1997.
