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 (date of earliest event reported) September 22, 1997
The Originators listed below under the Sale and Servicing
Agreement, dated as of August 31, 1997, pursuant to which a
portfolio of residential loans have been sold to The Money
Store Residential Trust 1997-I, which is issuing those certain
Asset-Backed Notes, Series 1997-I, under that certain
Indenture dated as of August 31, 1997.
TMS Mortgage Inc.
The Money Store/D.C. Inc.
The Money Store/Minnesota Inc.
The Money Store Home Equity Corp.
The Money Store/Kentucky Inc.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
* 333-32775 *
- --------------- ---------------- ----------------
(State or other (Commission File (IRS Employer ID
jurisdiction of Number) Number)
incorporation)
-------------------------------------------
*--See Schedule A
2840 Morris Avenue, Union, New Jersey 07083
- --------------------------------------- ---------
(Address of principal executive offices) (Zip Code)
Registrants' Telephone Number,
including area code: (908) 686-2000
N/A
(Former name or former address, if changed since last report)
<PAGE>
SCHEDULE
IRS
State Employer
of Identification
Registrant Incorporation Number
TMS Mortgage Inc. New Jersey 22-3217781
The Money Store/D.C. Inc. D.C. 22-2133027
The Money Store/Minnesota Inc. Minnesota 22-3003495
The Money Store Home Equity Corp. Kentucky 22-2522232
The Money Store/Kentucky Inc. Kentucky 22-2459832
<PAGE>
Item 5. OTHER EVENTS
This Current Report on Form 8-K is being filed to file a copy of the
Computational Materials and ABS Term Sheets (as defined below) of Lehman
Brothers Inc. and Bear, Stearns & Co. Inc. (each an "Underwriters") in
connection with the issuance by The Money Store Residential Trust 1997-I of
those certain Asset-Backed Notes, which are backed by that portfolio of
residential loans being purchased from the above-referenced Originators. The
terms "Computational Materials" and "ABS Term Sheets" shall have the meanings
given in the No-Action Letter of 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, as supplemented in
the No-Action Letters of May 27, 1994 and February 17, 1995 issued by the SEC to
the Public Securities Association.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) EXHIBITS
EXHIBIT NO.
99.1 Computational Materials and ABS Term Sheets of Lehman
Brothers Inc.
99.2 Computations Materials and ABS Term Sheets of Bear,
Stearns & Co. Inc.
<PAGE>
SIGNATURES
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 thereunto duly authorized.
TMS MORTGAGE INC.
THE MONEY STORE/D.C. INC.
THE MONEY STORE/MINNESOTA INC.
THE MONEY STORE HOME EQUITY CORP.
THE MONEY STORE/KENTUCKY INC.
By: /s/ Harry Puglisi
Name: Harry Puglisi
Title: Treasurer
Dated: September 23, 1997
<PAGE>
EXHIBIT INDEX
EXHIBIT
99.1 Computational Materials and ABS Term
Sheets of Lehman Brothers Inc.
99.2 Computational Materials and ABS Term Sheets of Bear,
Stearns & Co. Inc.
EXHIBIT 99.1
[GRAPHIC OMITTED: LEHMAN BROTHERS LOGO]
DERIVED INFORMATION
$300,000,000 NOTES
THE MONEY STORE RESIDENTIAL TRUST 1997-I
The Money Store, Inc.
as Servicer
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared and
delivered by Lehman Brothers Inc. and the contents and accuracy thereof have not
been reviewed by the issuer. This information was prepared on the basis of
certain assumptions (including, in certain cases, assumptions specified by the
recipient hereof) regarding payments, interest rates, weighted average lives,
weighted average loan age, losses and other matters, including, but not limited
to, the assumptions described in the Offering Document. Lehman Brothers Inc.,
and any of its affiliates, make no representation or warranty as to the actual
rate or timing of payments on any of the underlying assets or the payments or
yield on the securities. This information supersedes any prior versions hereof
and will be deemed to be superseded by any subsequent versions (including, with
respect to any description of the securities or underlying assets, the
information contained in the Offering Document).
<PAGE>
<TABLE>
<CAPTION>
SECURITIES OFFERED: LEHMAN BROTHERS
TO MATURITY:
- ----------------------------------------------------------------------------------------------------------------------------------
Approx. Estimated Prin. Pmt. Expected Stated Expected
Approx. % of Expected WAL/MDUR Window Final Final Ratings
Notes Size ($) Total Benchmark Price (yrs) (months) Maturity Maturity S&P/Fitch
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
Class A-1 (1) 114,676,000 38.2 1 Yr Tsy 100.000% 1.01/0.94 1 - 25 10/15/99 4/15/06 AAA/AAA
Class A-2 (1) 64,708,000 21.6 3 Yr Tsy 100.000% 3.00/2.64 25 - 50 11/15/01 6/15/10 AAA/AAA
Class A-3 (1) 49,602,000 16.5 Curve 100.000% 5.56/4.48 50 - 88 1/15/05 8/15/12 AAA/AAA
Class M-1 (1) 29,710,000 9.9 10 Yr Tsy 100.000% 9.26/6.57 88 - 140 5/15/09 7/15/16 AA/AA
Class M-2 (1) 17,391,000 5.8 10 Yr Tsy 100.000% 14.08/8.39 140 - 227 8/15/16 2/15/29 A/A
Class B(1) 23,913,000 8.0 Curve 100.000% 8.01/5.60 47 - 227 8/15/16 2/15/29 BBB/BBB
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TO 10% CALL:
- ----------------------------------------------------------------------------------------------------------------------------------
Approx. Estimated Prin. Pmt. Expected Stated Expected
Approx. % of Expected WAL/MDUR Window Final Final Ratings
Notes Size ($) Total Benchmark Price (yrs) (months) Maturity Maturity S&P/Fitch
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
Class M-1 (1) 29,710,000 9.9 10 Yr Tsy 100.000% 9.23/6.56 88 - 134 11/15/08 7/15/16 AA/AA
Class M-2 (1) 17,391,000 5.8 10 Yr Tsy 100.000% 11.12/7.31 134 - 134 11/15/08 2/15/29 A/A
Class B-1 23,913,000 8.0 Curve 100.000% 7.49/5.41 47 - 134 11/15/08 2/15/29 BBB/BBB
- ----------------------------------------------------------------------------------------------------------------------------------
(1) PREPAYMENTS ARE 1.4% CPR IN MONTH ONE INCREASING BY 1.4% CPR EACH MONTH TO 14% CPR BY MONTH 10, REMAINING AT 14% CPR SUBSEQUENT
TO MONTH 10 ("14% HEP").
</TABLE>
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared and
delivered by Lehman Brothers Inc. and the contents and accuracy thereof have not
been reviewed by the issuer. This information was prepared on the basis of
certain assumptions (including, in certain cases, assumptions specified by the
recipient hereof) regarding payments, interest rates, weighted average lives,
weighted average loan age, losses and other matters, including, but not limited
to, the assumptions described in the Offering Document. Lehman Brothers Inc.,
and any of its affiliates, make no representation or warranty as to the actual
rate or timing of payments on any of the underlying assets or the payments or
yield on the securities. This information supersedes any prior versions hereof
and will be deemed to be superseded by any subsequent versions (including, with
respect to any description of the securities or underlying assets, the
information contained in the Offering Document).
<PAGE>
<TABLE>
<CAPTION>
SENSITIVITY ANALYSIS LEHMAN BROTHERS
PROJECTED PERFORMANCE
UNDER VARYING PREPAYMENT ASSUMPTIONS
TO MATURITY
- ----------------------------------------------------------------------------------------------------------------------------------
%HEP 0.0% 7.0% 11.0% 14.0% 17.0% 21.0% 28.0%
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A-1
Avg. Life (yrs) 3.08 1.46 1.15 1.01 0.91 0.82 0.69
Mod Duration (yrs) 2.60 1.33 1.07 0.94 0.86 0.77 0.65
Window (begin-end) (mths) 1 - 82 1 - 41 1 - 30 1 - 25 1 - 22 1 - 19 1 - 16
Expected Final Maturity 7/15/04 2/15/01 3/15/00 10/15/99 7/15/99 4/15/99 1/15/99
Yield @ 100.000% 6.32 6.23 6.18 6.15 6.13 6.09 6.04
CLASS A-2
Avg. Life (yrs) 9.29 4.73 3.58 3.00 2.57 2.16 1.72
Mod Duration (yrs) 6.75 3.94 3.09 2.64 2.29 1.95 1.58
Window (begin-end)(mths) 82 - 141 41 - 75 30 - 59 25 - 50 22 - 42 19 - 35 16 - 27
Expected Final Maturity 6/15/09 12/15/03 8/15/02 11/15/01 3/15/01 8/15/00 12/15/99
Yield @ 100.000% 6.49 6.46 6.45 6.43 6.42 6.40 6.37
CLASS A-3
Avg. Life (yrs) 13.40 8.43 6.53 5.56 4.81 3.98 2.86
Mod Duration (yrs) 8.57 6.21 5.10 4.48 3.97 3.37 2.51
Window (begin-end)(mths) 141 - 180 75 - 134 59 - 105 50 - 88 42 - 77 35 - 65 27 - 47
Expected Final Maturity 9/15/12 11/15/08 6/15/06 1/15/05 2/15/04 2/15/03 8/15/01
Yield @ 100.000% 6.73 6.72 6.71 6.71 6.70 6.69 6.66
CLASS M-1
Avg. Life (yrs) 16.57 12.88 10.74 9.26 8.01 6.71 4.97
Mod Duration (yrs) 9.50 8.21 7.29 6.57 5.92 5.17 4.05
Window (begin-end)(mths) 180 - 226 134 - 177 105 - 158 88 - 140 77 - 124 65 - 104 47 - 78
Expected Final Maturity 7/15/16 6/15/12 11/15/10 5/15/09 1/15/08 5/15/06 3/15/04
Yield @ 100.000% 7.04 7.04 7.04 7.03 7.03 7.02 7.01
CLASS M-2
Avg. Life (yrs) 21.10 17.23 15.38 14.08 12.08 11.17 8.62
Mod Duration (yrs) 10.26 9.35 8.81 8.39 7.93 7.27 6.09
Window (begin-end)(mths) 226 - 903 177 - 927 158 - 238 140 - 227 124 - 211 104 - 189 78 - 161
Expected Final Maturity 6/15/22 6/15/20 7/15/17 8/15/16 4/15/15 6/15/13 2/15/11
Yield @ 100.000% 7.53 7.53 7.52 7.52 7.52 7.52 7.51
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared and
delivered by Lehman Brothers Inc. and the contents and accuracy thereof have not
been reviewed by the issuer. This information was prepared on the basis of
certain assumptions (including, in certain cases, assumptions specified by the
recipient hereof) regarding payments, interest rates, weighted average lives,
weighted average loan age, losses and other matters, including, but not limited
to, the assumptions described in the Offering Document. Lehman Brothers Inc.,
and any of its affiliates, make no representation or warranty as to the actual
rate or timing of payments on any of the underlying assets or the payments or
yield on the securities. This information supersedes any prior versions hereof
and will be deemed to be superseded by any subsequent versions (including, with
respect to any description of the securities or underlying assets, the
information contained in the Offering Document).
<PAGE>
<TABLE>
<CAPTION>
SENSITIVITY ANALYSIS (CONTINUED) LEHMAN BROTHERS
PROJECTED PERFORMANCE
UNDER VARYING PREPAYMENT ASSUMPTIONS
TO MATURITY
- ----------------------------------------------------------------------------------------------------------------------------------
%HEP 0.0% 7.0% 11.0% 14.0% 17.0% 21.0% 28.0%
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS B
Avg. Life (yrs) 15.53 11.19 9.20 8.01 7.09 6.27 5.66
Mod Duration (yrs) 8.79 7.12 6.20 5.60 5.11 4.67 4.35
Window (begin-end) (mths) 136 - 903 73 - 927 56 - 238 47 - 227 41 - 211 37 - 189 39 - 161
Expected Final Maturity 6/15/22 6/15/20 7/15/17 8/15/16 4/15/15 6/15/13 2/15/11
Yield @ 100.000% 7.53 7.53 7.52 7.52 7.51 7.51 7.50
</TABLE>
<TABLE>
<CAPTION>
TO 10% CLEANUP CALL
- ----------------------------------------------------------------------------------------------------------------------------------
%HEP 0.0% 7.0% 11.0% 14.0% 17.0% 21.0% 28.0%
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS M-1
Avg. Life (yrs) 16.55 12.87 10.72 9.23 7.99 6.69 4.96
Mod Duration (yrs) 9.50 8.21 7.28 6.56 5.91 5.16 4.05
Window (begin-end) (mths) 180 - 221 134 - 173 105 - 152 88 - 134 77 - 118 65 - 99 47 - 77
Expected Final Maturity 2/15/16 2/15/12 5/15/10 11/15/08 7/15/07 12/15/05 2/15/04
Yield @ 100.000% 7.04 7.04 7.04 7.03 7.03 7.02 7.01
CLASS M-2
Avg. Life (yrs) 18.38 14.38 12.62 11.12 9.79 8.21 6.38
Mod Duration (yrs) 9.68 8.53 7.91 7.31 6.71 5.93 4.90
Window (begin-end) (mths) 221 - 221 173 - 173 152 - 152 134 - 134 118 - 118 99 - 99 77 - 77
Expected Final Maturity 2/15/16 2/15/12 5/15/10 11/15/08 7/15/07 12/15/05 2/15/04
Yield @ 100.000% 7.53 7.52 7.52 7.52 7.51 7.51 7.50
CLASS B
Avg. Life (yrs) 15.06 10.69 8.72 7.49 6.56 5.70 5.03
Mod Duration (yrs) 8.68 6.98 6.04 5.41 4.90 4.41 4.01
Window (begin-end) (mths) 136 - 221 73 - 173 56 - 152 47 - 134 41 - 118 37 - 99 39 - 77
Expected Final Maturity 2/15/16 2/15/12 5/15/10 11/15/08 7/15/07 12/15/05 2/15/04
Yield @ 100.000% 7.53 7.53 7.52 7.51 7.51 7.50 7.50
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared and
delivered by Lehman Brothers Inc. and the contents and accuracy thereof have not
been reviewed by the issuer. This information was prepared on the basis of
certain assumptions (including, in certain cases, assumptions specified by the
recipient hereof) regarding payments, interest rates, weighted average lives,
weighted average loan age, losses and other matters, including, but not limited
to, the assumptions described in the Offering Document. Lehman Brothers Inc.,
and any of its affiliates, make no representation or warranty as to the actual
rate or timing of payments on any of the underlying assets or the payments or
yield on the securities. This information supersedes any prior versions hereof
and will be deemed to be superseded by any subsequent versions (including, with
respect to any description of the securities or underlying assets, the
information contained in the Offering Document).
<PAGE>
<TABLE>
<CAPTION>
COLLATERAL SUMMARY LEHMAN BROTHERS
Collateral statistics for the Initial Loans are listed below as of the Cut-Off
Date.
Product Type
- ----------------------------------------------------------------------------------------------------------------------------------
Secured HLTV Unsecured
TOTAL HLTV HELs HI/FHA Loans HI/FHA Loans
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total No. of Loans 17,090 3,489 3,321 10,280
Total Current Balance $215,665,310.30 $101,623,530.72 $69,281,729.16 $44,760,050.42
Avg. Current Balance $12,619.39 $29,126.84 $20,861.71 $4,354.09
Balloon / Level Pay 0.30% / 99.70% 0.62% / 99.38% 0.00% / 100.00% 0.02% / 99.98%
WA Coupon 14.11% 14.28% 13.15% 15.22%
WA Original Term 194 205 240 100
Original Term Ranges
1 - 60 6.16% 0.09% 0.49% 28.70%
61 - 120 15.97% 2.11% 7.56% 60.46%
121 - 180 34.95% 57.31% 18.69% 9.34%
181 - 240 30.32% 38.31% 37.66% 0.84%
241 - 300 11.79% 0.46% 35.60% 0.67%
301 - 360 0.81% 1.72% -- --
WA Remaining Term 191 204 237 92
WA CLTV 112.46% 115.71% 107.68% --
Junior Mortgage Ratio 41.06% 28.44% 20.96% --
Lien Position
1 1.69% 2.78% 0.10% --
2 94.07% 97.22% 89.44% --
3 4.24% -- 10.46% --
Property Type
Single Family Detached 96.08% 94.17% 96.90% 99.12%
PUD/Condo/Townhouse 2.18% 3.91% 1.04% 0.03%
2 - 4 Family 0.83% 1.20% 0.79% 0.02%
Other 0.91% 0.71% 1.27% 0.83%
Occupancy Status
Primary Home 99.30% 99.62% 99.36% 98.49%
Second Home 0.46% 0.09% 0.34% 1.49%
Investment 0.23% 0.29% 0.30% --
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared and
delivered by Lehman Brothers Inc. and the contents and accuracy thereof have not
been reviewed by the issuer. This information was prepared on the basis of
certain assumptions (including, in certain cases, assumptions specified by the
recipient hereof) regarding payments, interest rates, weighted average lives,
weighted average loan age, losses and other matters, including, but not limited
to, the assumptions described in the Offering Document. Lehman Brothers Inc.,
and any of its affiliates, make no representation or warranty as to the actual
rate or timing of payments on any of the underlying assets or the payments or
yield on the securities. This information supersedes any prior versions hereof
and will be deemed to be superseded by any subsequent versions (including, with
respect to any description of the securities or underlying assets, the
information contained in the Offering Document).
<PAGE>
<TABLE>
<CAPTION>
COLLATERAL SUMMARY (CONTINUED) LEHMAN BROTHERS
Product Type
- ----------------------------------------------------------------------------------------------------------------------------------
Secured HLTV Unsecured
TOTAL HLTV HELs HI/FHA Loans HI/FHA Loans
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Geographic
Distribution *
CA - 20.83% CA - 7.55% CA - 38.79% CA - 23.17%
FL - 5.26% PA - 6.64% NV - 6.21% FL - 9.03%
PA - 5.07% WA - 6.52% NY - 5.14% TX - 6.06%
IL - 5.30%
Product Type
HLTV HELs 47.12% 100.00% -- --
Secured HLTV HI 24.56% -- 76.44% --
Unsecured HI 20.46% -- -- 98.60%
Secured HLTV FHA 7.57% -- 23.56% --
Unsecured FHA 0.29% -- -- 1.40%
Delinquency
Current 99.26% 99.92% 98.71% 98.61%
30 - 59 days 0.74% 0.08% 1.29% 1.39%
WA FICO 656 674 623 667
- ----------------------------------------------------------------------------------------------------------------------------------
* Other states account individually for less than 5% of the principal balance.
</TABLE>
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared and
delivered by Lehman Brothers Inc. and the contents and accuracy thereof have not
been reviewed by the issuer. This information was prepared on the basis of
certain assumptions (including, in certain cases, assumptions specified by the
recipient hereof) regarding payments, interest rates, weighted average lives,
weighted average loan age, losses and other matters, including, but not limited
to, the assumptions described in the Offering Document. Lehman Brothers Inc.,
and any of its affiliates, make no representation or warranty as to the actual
rate or timing of payments on any of the underlying assets or the payments or
yield on the securities. This information supersedes any prior versions hereof
and will be deemed to be superseded by any subsequent versions (including, with
respect to any description of the securities or underlying assets, the
information contained in the Offering Document).
EXHIBIT 99.2
BEAR STEARNS BEAR STEARNS & CO. INC.
ATLANTA-BEIJING-BOSTON-BUENOS AIRES ASSET-BACKED SECURITIES GROUP
CHICAGO-DALLAS-DUBLIN-GENEVA-HONG KONG 245 PARK AVENUE
LONDON-LOS ANGELES-LUGANO-NEW YORK NEW YORK, NEW YORK 10167
PARIS-SAN FRANCISCO-SAO PAOLO (212) 272-2000; (212) 272-7294 FAX
SHANGAI-SINGAPORE-TOKYO-WASHINGTON, D.C.
THE MONEY STORE RESIDENTIAL TRUST SERIES 1997-1
- -------------------------------------------------------------------------------
Fax to: DATE: 9/22/97
COMPANY: # PAGES (incl. cover): 7
FAX NO: PHONE NO:
- -------------------------------------------------------------------------------
FROM: PHONE NO:
- -------------------------------------------------------------------------------
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES,
AND OTHER INFORMATION
The information contained in the attached materials (the "Information") may
include various forms of performance analysis, security characteristics and
securities pricing estimates for the securities addressed. Please read and
understand this entire statement before utilizing the Information. The
Information is provided solely by Bear Stearns, not as agent for any issuer, and
although it may be based on data supplied to it by an issuer, the issuer has not
participated in its preparation and makes no representations regarding its
accuracy or completeness. Should you receive Information that refers to the
"Statement Regarding Assumptions and Other Information," please refer to this
statement instead.
The Information is illustrative and is not intended to predict actual results
which may differ substantially from those reflected in the Information.
Performance analysis is based on certain assumptions with respect to significant
factors that may prove not to be as assumed. You should understand the
assumptions and evaluate whether they are appropriate for your purposes.
Performance results are based on mathematical models that use inputs to
calculate results. As with all models, results may vary significantly depending
upon the value of the inputs given. Inputs to these models include but are not
limited to: prepayment expectations (economic prepayment models, single expected
lifetime prepayments or a vector of periodic prepayments), interest rate
assumptions (parallel and nonparallel changes for different maturity
instruments), collateral assumptions (actual pool level data, aggregated pool
level data, reported factors or imputed factors), volatility assumptions
(historically observed or implied current) and reported information (paydown
factors, rate resets, and trustee statements). Models used in any analysis may
be proprietary making the results difficult for any third party to reproduce.
Contact your registered representative for detailed explanations of any modeling
techniques employed in the Information.
The Information addresses only certain aspects of the applicable security's
characteristics and thus does not provide a complete assessment. As such, the
Information may not reflect the impact of all structural characteristics of the
security, including call events and cash flow priorities at all prepayment
speeds and/or interest rates. You should consider whether the behavior of these
securities should be tested as assumptions different from those included in the
Information. The assumptions underlying the Information, including structure and
collateral, may be modified from time to time to reflect changed circumstances.
Any investment decision should be based only on the data in the prospectus and
the prospectus supplement or private placement memorandum (Offering Documents)
and the then current version of the Information. Offering Documents contain data
that is current as of their publication dates and after publication may no
longer be complete or current.. Contact your registered representative for
Offering Documents, current Information or additional materials, including other
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and any further explanation regarding the Information.
Any pricing estimates Bear Stearns has supplied at your request (a) represent
our view, at the time determined, of the investment value of the securities
between the estimated bid and offer levels, the spread between which may be
significant due to market volatility or illiquidity, (b) do not constitute a bid
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pricing that uses data relating to other securities whose prices are more
readily ascertainable to produce a hypothetical price based on the estimated
yield spread relationship between the securities.
GENERAL INFORMATION: The data underlying the Information has been obtained from
sources that we believe are reliable, but we do not guarantee the accuracy of
the underlying data or computations based thereon. Bear, Stearns. and/or
individuals thereof may have positions in these securities while the Information
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prospectus when required by law, in which event you may obtain such prospectus
from Bear Stearns.
<PAGE>
THE MONEY STORE RESIDENTIAL TRUST 1997-1
<TABLE>
<CAPTION>
SECURITIES OFFERED:
TO MATURITY:
- ----------------------------------------------------------------------------------------------------------------------------------
Approx. Estimated Prin. Pmt. Expected Stated Expected
Approx. % of Expected WAL/MDUR Window Final Final Ratings
Notes Size ($) Total Benchmark Price (yrs) (months) Maturity Maturity S&P/Fitch
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
Class A-1 (1) 114,676,000 38.2 1 Yr Tsy 100.000% 1.01/0.94 1 - 25 10/15/99 4/15/06 AAA/AAA
Class A-2 (1) 64,708,000 21.6 3 Yr Tsy 100.000% 3.00/2.64 25 - 50 11/15/01 6/15/10 AAA/AAA
Class A-3 (1) 49,602,000 16.5 Curve 100.000% 5.56/4.48 50 - 88 1/15/05 8/15/12 AAA/AAA
Class M-1 (1) 29,710,000 9.9 10 Yr Tsy 100.000% 9.26/6.57 88 - 140 5/15/09 7/15/16 AA/AA
Class M-2 (1) 17,391,000 5.8 10 Yr Tsy 100.000% 14.08/8.39 140 - 227 8/15/16 2/15/29 A/A
Class B(1) 23,913,000 8.0 Curve 100.000% 8.01/5.60 47 - 227 8/15/16 2/15/29 BBB/BBB
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TO 10% CALL:
- ----------------------------------------------------------------------------------------------------------------------------------
Approx. Estimated Prin. Pmt. Expected Stated Expected
Approx. % of Expected WAL/MDUR Window Final Final Ratings
Notes Size ($) Total Benchmark Price (yrs) (months) Maturity Maturity S&P/Fitch
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
Class M-1 (1) 29,710,000 9.9 10 Yr Tsy 100.000% 9.23/6.56 88 - 134 11/15/08 7/15/16 AA/AA
Class M-2 (1) 17,391,000 5.8 10 Yr Tsy 100.000% 11.12/7.31 134 - 134 11/15/08 2/15/29 A/A
Class B-1 23,913,000 8.0 Curve 100.000% 7.49/5.41 47 - 134 11/15/08 2/15/29 BBB/BBB
- ----------------------------------------------------------------------------------------------------------------------------------
(1) PREPAYMENTS ARE 1.4% CPR IN MONTH ONE INCREASING BY 1.4% CPR EACH MONTH TO 14% CPR BY MONTH 10, REMAINING AT 14% CPR SUBSEQUENT
TO MONTH 10 ("14% HEP").
</TABLE>
Receipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not received
the statement described above or the related Prospectus and Prospectus
Supplement, please contact your account executive at Bear, Stearns & Co. Inc.
<PAGE>
THE MONEY STORE RESIDENTIAL TRUST 1997-1
<TABLE>
<CAPTION>
SENSITIVITY ANALYSIS
PROJECTED PERFORMANCE
UNDER VARYING PREPAYMENT ASSUMPTIONS
TO MATURITY
- ----------------------------------------------------------------------------------------------------------------------------------
%HEP 0.0% 7.0% 11.0% 14.0% 17.0% 21.0% 28.0%
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A-1
Avg. Life (yrs) 3.08 1.46 1.15 1.01 0.91 0.82 0.69
Mod Duration (yrs) 2.60 1.33 1.07 0.94 0.86 0.77 0.65
Window (begin-end) (mths) 1 - 82 1 - 41 1 - 30 1 - 25 1 - 22 1 - 19 1 - 16
Expected Final Maturity 7/15/04 2/15/01 3/15/00 10/15/99 7/15/99 4/15/99 1/15/99
Yield @ 100.000% 6.32 6.23 6.18 6.15 6.13 6.09 6.04
CLASS A-2
Avg. Life (yrs) 9.29 4.73 3.58 3.00 2.57 2.16 1.72
Mod Duration (yrs) 6.75 3.94 3.09 2.64 2.29 1.95 1.58
Window (begin-end)(mths) 82 - 141 41 - 75 30 - 59 25 - 50 22 - 42 19 - 35 16 - 27
Expected Final Maturity 6/15/09 12/15/03 8/15/02 11/15/01 3/15/01 8/15/00 12/15/99
Yield @ 100.000% 6.49 6.46 6.45 6.43 6.42 6.40 6.37
CLASS A-3
Avg. Life (yrs) 13.40 8.43 6.53 5.56 4.81 3.98 2.86
Mod Duration (yrs) 8.57 6.21 5.10 4.48 3.97 3.37 2.51
Window (begin-end)(mths) 141 - 180 75 - 134 59 - 105 50 - 88 42 - 77 35 - 65 27 - 47
Expected Final Maturity 9/15/12 11/15/08 6/15/06 1/15/05 2/15/04 2/15/03 8/15/01
Yield @ 100.000% 6.73 6.72 6.71 6.71 6.70 6.69 6.66
CLASS M-1
Avg. Life (yrs) 16.57 12.88 10.74 9.26 8.01 6.71 4.97
Mod Duration (yrs) 9.50 8.21 7.29 6.57 5.92 5.17 4.05
Window (begin-end)(mths) 180 - 226 134 - 177 105 - 158 88 - 140 77 - 124 65 - 104 47 - 78
Expected Final Maturity 7/15/16 6/15/12 11/15/10 5/15/09 1/15/08 5/15/06 3/15/04
Yield @ 100.000% 7.04 7.04 7.04 7.03 7.03 7.02 7.01
CLASS M-2
Avg. Life (yrs) 21.10 17.23 15.38 14.08 12.08 11.17 8.62
Mod Duration (yrs) 10.26 9.35 8.81 8.39 7.93 7.27 6.09
Window (begin-end)(mths) 226 - 903 177 - 927 158 - 238 140 - 227 124 - 211 104 - 189 78 - 161
Expected Final Maturity 6/15/22 6/15/20 7/15/17 8/15/16 4/15/15 6/15/13 2/15/11
Yield @ 100.000% 7.53 7.53 7.52 7.52 7.52 7.52 7.51
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Receipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not received
the statement described above or the related Prospectus and Prospectus
Supplement, please contact your account executive at Bear, Stearns & Co. Inc.
<PAGE>
THE MONEY STORE RESIDENTIAL TRUST 1997-1
<TABLE>
<CAPTION>
SENSITIVITY ANALYSIS (CONTINUED)
PROJECTED PERFORMANCE
UNDER VARYING PREPAYMENT ASSUMPTIONS
TO MATURITY
- ----------------------------------------------------------------------------------------------------------------------------------
%HEP 0.0% 7.0% 11.0% 14.0% 17.0% 21.0% 28.0%
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS B
Avg. Life (yrs) 15.53 11.19 9.20 8.01 7.09 6.27 5.66
Mod Duration (yrs) 8.79 7.12 6.20 5.60 5.11 4.67 4.35
Window (begin-end) (mths) 136 - 903 73 - 927 56 - 238 47 - 227 41 - 211 37 - 189 39 - 161
Expected Final Maturity 6/15/22 6/15/20 7/15/17 8/15/16 4/15/15 6/15/13 2/15/11
Yield @ 100.000% 7.53 7.53 7.52 7.52 7.51 7.51 7.50
</TABLE>
<TABLE>
<CAPTION>
TO 10% CLEANUP CALL
- ----------------------------------------------------------------------------------------------------------------------------------
%HEP 0.0% 7.0% 11.0% 14.0% 17.0% 21.0% 28.0%
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS M-1
Avg. Life (yrs) 16.55 12.87 10.72 9.23 7.99 6.69 4.96
Mod Duration (yrs) 9.50 8.21 7.28 6.56 5.91 5.16 4.05
Window (begin-end) (mths) 180 - 221 134 - 173 105 - 152 88 - 134 77 - 118 65 - 99 47 - 77
Expected Final Maturity 2/15/16 2/15/12 5/15/10 11/15/08 7/15/07 12/15/05 2/15/04
Yield @ 100.000% 7.04 7.04 7.04 7.03 7.03 7.02 7.01
CLASS M-2
Avg. Life (yrs) 18.38 14.38 12.62 11.12 9.79 8.21 6.38
Mod Duration (yrs) 9.68 8.53 7.91 7.31 6.71 5.93 4.90
Window (begin-end) (mths) 221 - 221 173 - 173 152 - 152 134 - 134 118 - 118 99 - 99 77 - 77
Expected Final Maturity 2/15/16 2/15/12 5/15/10 11/15/08 7/15/07 12/15/05 2/15/04
Yield @ 100.000% 7.53 7.52 7.52 7.52 7.51 7.51 7.50
CLASS B
Avg. Life (yrs) 15.06 10.69 8.72 7.49 6.56 5.70 5.03
Mod Duration (yrs) 8.68 6.98 6.04 5.41 4.90 4.41 4.01
Window (begin-end) (mths) 136 - 221 73 - 173 56 - 152 47 - 134 41 - 118 37 - 99 39 - 77
Expected Final Maturity 2/15/16 2/15/12 5/15/10 11/15/08 7/15/07 12/15/05 2/15/04
Yield @ 100.000% 7.53 7.53 7.52 7.51 7.51 7.50 7.50
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Receipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not received
the statement described above or the related Prospectus and Prospectus
Supplement, please contact your account executive at Bear, Stearns & Co. Inc.
<PAGE>
THE MONEY STORE RESIDENTIAL TRUST 1997-1
<TABLE>
<CAPTION>
COLLATERAL SUMMARY
Collateral statistics for the Initial Loans are listed below as of the Cut-Off
Date.
Product Type
- ----------------------------------------------------------------------------------------------------------------------------------
Secured HLTV Unsecured
TOTAL HLTV HELs HI/FHA Loans HI/FHA Loans
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total No. of Loans 17,090 3,489 3,321 10,280
Total Current Balance $215,665,310.30 $101,623,530.72 $69,281,729.16 $44,760,050.42
Avg. Current Balance $12,619.39 $29,126.84 $20,861.71 $4,354.09
Balloon / Level Pay 0.30% / 99.70% 0.62% / 99.38% 0.00% / 100.00% 0.02% / 99.98%
WA Coupon 14.11% 14.28% 13.15% 15.22%
WA Original Term 194 205 240 100
Original Term Ranges
1 - 60 6.16% 0.09% 0.49% 28.70%
61 - 120 15.97% 2.11% 7.56% 60.46%
121 - 180 34.95% 57.31% 18.69% 9.34%
181 - 240 30.32% 38.31% 37.66% 0.84%
241 - 300 11.79% 0.46% 35.60% 0.67%
301 - 360 0.81% 1.72% -- --
WA Remaining Term 191 204 237 92
WA CLTV 112.46% 115.71% 107.68% --
Junior Mortgage Ratio 41.06% 28.44% 20.96% --
Lien Position
1 1.69% 2.78% 0.10% --
2 94.07% 97.22% 89.44% --
3 4.24% -- 10.46% --
Property Type
Single Family Detached 96.08% 94.17% 96.90% 99.12%
PUD/Condo/Townhouse 2.18% 3.91% 1.04% 0.03%
2 - 4 Family 0.83% 1.20% 0.79% 0.02%
Other 0.91% 0.71% 1.27% 0.83%
Occupancy Status
Primary Home 99.30% 99.62% 99.36% 98.49%
Second Home 0.46% 0.09% 0.34% 1.49%
Investment 0.23% 0.29% 0.30% --
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Receipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not received
the statement described above or the related Prospectus and Prospectus
Supplement, please contact your account executive at Bear, Stearns & Co. Inc.
<PAGE>
THE MONEY STORE RESIDENTIAL TRUST 1997-1
<TABLE>
<CAPTION>
COLLATERAL SUMMARY (CONTINUED)
Product Type
- ----------------------------------------------------------------------------------------------------------------------------------
Secured HLTV Unsecured
TOTAL HLTV HELs HI/FHA Loans HI/FHA Loans
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Geographic
Distribution *
CA - 20.83% CA - 7.55% CA - 38.79% CA - 23.17%
FL - 5.26% PA - 6.64% NV - 6.21% FL - 9.03%
PA - 5.07% WA - 6.52% NY - 5.14% TX - 6.06%
IL - 5.30%
Product Type
HLTV HELs 47.12% 100.00% -- --
Secured HLTV HI 24.56% -- 76.44% --
Unsecured HI 20.46% -- -- 98.60%
Secured HLTV FHA 7.57% -- 23.56% --
Unsecured FHA 0.29% -- -- 1.40%
Delinquency
Current 99.26% 99.92% 98.71% 98.61%
30 - 59 days 0.74% 0.08% 1.29% 1.39%
WA FICO 656 674 623 667
- ----------------------------------------------------------------------------------------------------------------------------------
* Other states account individually for less than 5% of the principal balance.
</TABLE>
Receipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not received
the statement described above or the related Prospectus and Prospectus
Supplement, please contact your account executive at Bear, Stearns & Co. Inc.
