<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________________________
FORM 8-K
AMENDMENT NO. 1
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 10, 1997
GREEN TREE FINANCIAL CORPORATION
--------------------------------
(Exact name of registrant as specified in its charter)
333-20335
Delaware 333-32669 41-1807858
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(State or other jurisdiction (Commission (IRS employer
of incorporation) file number) identification No.)
1100 Landmark Towers, 345 St. Peter Street, Saint Paul, Minnesota 55102-1639
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(Address of principal executive offices)
Registrant's telephone number, including area code: (612) 293-3400
-----------------------
Not Applicable
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(Former name or former address, if changed since last report)
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Item 1. Changes in Control of Registrant.
--------------------------------
Not applicable.
Item 2. Acquisition or Disposition of Assets.
------------------------------------
Not applicable.
Item 3. Bankruptcy or Receivership.
-------------------------
Not applicable.
Item 4. Changes in Registrant's Certifying Accountant.
----------------------------------------------
Not applicable.
Item 5. Other Events.
------------
Not applicable.
Item 6. Resignations of Registrant's Directors.
--------------------------------------
Not applicable.
Item 7. Financial Statements and Exhibits.
---------------------------------
(a) Financial statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
2
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(c) Exhibits.
The following is filed herewith. The exhibit numbers correspond
with Item 601(b) of Regulation S-K.
Exhibit No. Description
----------- -----------
99 External Computational and Descriptive
Information distributed in connection with
Certificates for Home Improvement and Home Equity
Loans, Series 1997-E, issued by Green Tree
Financial Corporation, as Seller and Servicer.
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 hereunto duly authorized.
GREEN TREE FINANCIAL CORPORATION
By: /s/ Phyllis A. Knight
------------------------------------
Phyllis A. Knight
Vice President and Treasurer
3
<PAGE>
INDEX TO EXHIBITS
Exhibit Number Page
- -------------- ----
99 External Computational and Descriptive Information 5
distributed in connection with Certificates for Home
Improvement and Home Equity Loans, Series 1997-E,
issued by Green Tree Financial Corporation, as Seller
and Servicer.
1
<PAGE>
Exhibit 99
REVISED TERM SHEET DATED DECEMBER 8, 1997
GREEN TREE FINANCIAL CORPORATION
CERTIFICATES FOR HOME IMPROVEMENT AND HOME EQUITY LOANS, SERIES 1997-E
$835,000,000 (APPROXIMATE)
- --------------------------------------------------------------------------------
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 complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in 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 on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, 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
descriptions of the securities or underlying assets, the information contained
in the Offering Document).
1
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TERM SHEET DATED DECEMBER 8, 1997
Green Tree Financial Corporation
CERTIFICATES FOR HOME IMPROVEMENT AND HOME EQUITY LOANS, SERIES 1997-E
$835,000,000 (APPROXIMATE)
Subject to Revision
SELLER/SERVICER: Green Tree Financial Corporation ("Green Tree")
TRUSTEE: First Trust National Association
UNDERWRITERS: Lehman Brothers (Lead), Merrill Lynch & Co.(Co), and Salomon
Smith Barney (Co)
<TABLE>
<CAPTION>
Ratings WAL Exp Final
Amount (S&P/Fitch) at 15% CPR Maturity
------------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
To Call:
HI: A-1 $ 44,331,000 AAA / AAA 1.00 1/15/00
HI: A-2 $ 30,710,000 AAA / AAA 3.00 1/15/02
HI: A-3 $ 32,959,000 AAA / AAA 6.04 2/15/06
HI: M-1 $ 10,800,000 AA / AA 8.16 2/15/06
HI: M-2 $ 6,750,000 A / A 8.16 2/15/06
HI: B-1 $ 6,412,000 BBB / BBB 5.60 2/15/06
HI: B-2 $ 3,038,000 BBB+ / A- 8.16 2/15/06
To Maturity
HI: A-3 $ 32,959,000 AAA / AAA 6.05 8/15/06
HI: M-1 $ 10,800,000 AA / AA 10.25 6/15/10
HI: M-2 $ 6,750,000 A / A 15.74 11/15/22
HI: B-1 $ 6,412,000 BBB / BBB 5.61 6/15/06
HI: B-2 $ 3,038,000 BBB+ / A- 12.18 11/15/22
HI BALANCE $135,000,000
------------
</TABLE>
<TABLE>
<CAPTION>
Ratings WAL at Exp Final
Amount (S&P/Fitch) 100% of Base* Maturity
------------- ------------ ------------- -----------
<S> <C> <C> <C> <C>
To Call:
HE: A-1 ARM $130,000,000 AAA / AAA 2.95 4/15/05
HE: A-1 $210,936,000 AAA / AAA 1.00 10/15/99
HE: A-2 $123,694,000 AAA / AAA 2.50 3/15/01
HE: A-3 $ 72,254,000 AAA / AAA 4.00 10/15/02
HE: A-4 $ 10,789,000 AAA / AAA 5.05 4/15/03
HE A-5 $ 14,077,000 AAA / AAA 5.85 8/15/04
HE A-6 $ 35,000,000 AAA / AAA 5.51 8/15/04
HE A-7 IO n/a AAAr/ AAA 2.99 12/15/00
HE: M-1 $ 42,560,000 AA / AA 7.99 2/15/06
HE: M-2 $ 26,390,000 A / A 8.16 2/15/06
HE: B-1 $ 24,675,000 BBB / BBB 4.68 2/15/06
HE: B-2 $ 9,625,000 BBB+ / A- 8.16 2/15/06
To Maturity
HE: M-1 $ 42,560,000 AA / AA 8.41 10/15/07
HE: M-2 $ 26,390,000 A / A 12.00 2/15/27
HE: B-1 $ 24,675,000 BBB / BBB 4.69 7/15/07
HE: B-2 $ 9,625,000 BBB+ / A- 14.10 12/15/27
HE BALANCE $700,000,000
------------
</TABLE>
_______________
* The Fixed Rate Home Equity Contracts will be priced using 100% of Base
Prepayment Assumption. 100% Base (100% Prepayment Assumption) assumes a
conditional prepayment rate of 5% per annum of the then outstanding
principal balance of the Fixed Rate Home Equity Contracts in the first month
of the life of the Fixed Rate Home Equity Contracts and an additional 1.82%
(precisely, 20/11%) per annum in each month thereafter until the twelfth
month. Beginning in twelfth month and in each month thereafter, the
conditional prepayment rate is 25%. The Adjustable Rate Home Equity
Contracts will be priced using a constant prepayment rate of 25% CPR. The
Home Improvement Contracts will be priced using a constant prepayment rate
of 15% CPR.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
2
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CUT-OFF DATE: Sub-Pool HI: December 1, 1997 (or the date of origination,
if later)
Sub-Pool HE: November 1, 1997 (or the date of origination,
if later)
EXP. PRICING: December 10, 1997
EXP. SETTLEMENT: December 17, 1997
LEGAL FINAL: Sub-Pool HI: October 2028
Sub-Pool HE: January 2029
INTEREST/PRINCIPAL: The 15th day of each month (or if such 15th day is not a
business day, the next succeeding business day) commencing
on January 15, 1998.
CROSS
COLLATERALIZATION: On each Payment Date the Amount Available for each Sub-Pool
remaining after making distributions in respect of the
related Certificates will generally be available to make
distributions in respect to the Certificates related to the
other Sub-Pool.
ERISA: Only the Class HI:A and Class HE:A Certificates are ERISA
eligible.
TAX STATUS: The Trust will consist of two segregated asset pools with
respect to which elections will be made to treat each as a
separate "real estate mortgage investment conduit" (a
"REMIC") for federal income tax purposes.
OPTIONAL REDEMPTION: 10% cleanup call.
ADDITIONAL
COLLATERAL: The data set forth below with respect to each Sub-Pool is
based solely on the contracts identified for inclusion in
each Sub-Pool as of the related Cut-off Date ("Original
Home Improvement Contracts" and "Original Home Equity
Contracts"). Certain additional contracts will be
identified for inclusion in each Sub-Pool prior to the
Closing Date ("Additional Home Improvement Contracts" and
"Additional Home Equity Contracts"). During a limited
period following the Closing Date, the Trust Fund will
purchase subsequent Contracts ("Subsequent Home Improvement
Contracts" and "Subsequent Home Equity Contracts"). It is
expected that the additional and subsequent contracts will
have characteristics which are substantially similar to the
related group of original contracts.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
3
<PAGE>
HOME IMPROVEMENT CERTIFICATE STRUCTURE
CREDIT ENHANCEMENT: Class HI:A: 20.00% subordination (Class HI:M-1, HI:M-2,
HI:B-1 and HI:B-2) & Residual (Class C)
Class HI:M-1: 12.00% subordination (Class HI:M-2, HI:B-1,
and HI:B-2) & Residual (Class C)
Class HI:M-2: 7.00% subordination (Class HI:B-1 and HI:B-2)
& Residual (Class C)
Class HI:B-1: 2.25% subordination (Class HI:B-2) & Residual
(Class C)
Class HI:B-2: Limited Guaranty & Residual (Class C)
DISTRIBUTIONS: The Sub-Pool HI Amount Available will generally consist of
payments made on or in respect of the Home Improvement
Contracts comprising Sub-Pool HI, and will include amounts
otherwise payable to the Servicer (as long as Green Tree is
the Servicer) as the Monthly Servicing Fee with respect to
the Home Improvement Contracts, and to the Class C
Certificate holder.
The Amount Available will generally be applied first to
the distributions to the Class HI:A Certificateholders,
then to the Class HI:M Certificateholders, then to the
Class HI:M Certificateholders. and then to the Class HI:B
Certificateholders.
Class HI:A Certificates are senior to Class HI:M and Class
HI:B Certificates.
Class HI:M Certificates are senior to the Class HI:B
Certificates.
LOSSES ON LIQUIDATED
HI CONTRACTS: If Net Liquidation Proceeds from Liquidated Contracts in
the respective collection period are less than the
Scheduled Principal Balance of such Liquidated Contract
plus accrued and unpaid interest thereon, the deficiency
will be absorbed by the Class C Certificateholder, then the
Guaranty Fee otherwise payable to the Company, then the
Monthly Servicing Fee otherwise payable to the Servicer (as
long as Green Tree is the Servicer), then the Class HI:B-2
Certificateholders, then the Class HI:B-1
Certificateholders, then the Class HI:M-2
Certificateholders and then the Class HI:M-1
Certificateholders.
PRE-FUNDING FEATURE: On the Closing Date, a portion of the proceeds from the
sale of the Class HI Certificates (the "Sub-Pool HI Pre-
Funded Amount") will be deposited with the Trustee in a
segregated account (the "Sub-Pool HI Pre-Funded Account")
and used by the Trust to purchase Subsequent Home
Improvement Contracts during a period (not longer than 90
days) following the Closing Date (the "Pre-Funding
Period"). The Sub-Pool HI Pre-Funded Amount will be reduced
during the Pre-Funding Period by the amounts thereof used
to fund such purchases. Any Amounts remaining in the Sub-
Pool HI Pre-Funding Account following the Pre-Funding
Period will be distributed in respect of each Class of
Class HI Certificates on a pro-rata basis.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
4
<PAGE>
CLASS HI:A INTEREST: Interest will be paid concurrently on each Class of Class
HI:A Certificates at the related Pass-Through Rate on the
then outstanding related Class Principal Balance. Interest
will initially accrue from the Settlement Date and
thereafter will accrue from the most recent Payment Date on
which interest has been paid, in each case, to but
excluding the following Payment Date. Interest will be
computed on 30/360 basis.
In the event that, on a particular Payment Date, the Class
HI:A Remaining Amount Available, plus other funds in the
Certificate Account available therefor, are not sufficient
to make a full distribution of interest to the holders of
outstanding Class HI:A Certificates, the amount of interest
to be distributed in respect of the Class HI:A Certificates
will be allocated among the Class HI:A Certificates pro
rata in accordance with their respective entitlements to
interest, and the amount of the deficiency will be carried
forward as an amount that the Class HI:A Certificateholders
are entitled to receive on the next Payment Date. Any
amounts so carried forward will bear interest at the
applicable Class HI:A Pass-Through Rate, to the extent
legally permissible.
CLASS HI:A
PRINCIPAL: After payment of all interest distributable to the Class
HI:A Certificateholders, the Sub-Pool HI Senior Percentage
of the Sub-Pool HI Formula Principal Distribution Amount
will be distributed first to the Class HI:A-1
Certificateholders, until the Class HI:A-1 Principal
Balance has been reduced to zero, then to the class HI:A-2
Certificateholders until the Class HI:A-2 Principal Balance
has been reduced to zero, and then to the Class HI:A-3
Certificateholders until the Class HI:A-3 Principal Balance
has been reduced to zero.
The "Sub-Pool HI Senior Percentage" will equal 100% if any
of the following exist:
i) the Payment Date is prior to January 2001 (month 36);
ii) the Class HI:B Principal Balance represents less than
14% of the Scheduled Principal Balance of Sub-Pool HI;
and
iii) each Class HI:B Principal Distribution Test (see
below) is not satisfied.
Otherwise, the Sub-Pool HI Senior Percentage will equal a
fraction, the numerator of which is the sum of the Class
HI:A Principal Balance and the Class HI:M Principal Balance
for a given Payment Date, and the denominator of which is
the Scheduled Principal Balance of Sub-Pool HI for the
immediately preceding Payment Date.
CLASS HI:M-1
INTEREST: After payment of Class HI:A Distribution Amount, interest
will be paid to the Class HI:M-1 Certificateholders in an
amount equal to the product of (a) the Class HI:M-1 Pass-
Through Rate and (b) the then outstanding Class HI:M-1
Principal Balance (less the Class HI:M-1 Liquidation Loss
Principal Amount, if any). Interest will initially accrue
from the Settlement Date and thereafter will accrue from
the most recent Payment Date on which interest has been
paid, in each case, to but excluding the following Payment
Date. Interest will be computed on 30/360 basis. Interest
shortfalls will be carried forward, and will bear interest
at the Class HI:M-1 Pass-Through Rate, to the extent
legally possible.
CLASS HI:M-1
PRINCIPAL: Class HI:M-1 Certificateholders will not receive principal
until Class HI:A Principal Balance has been reduced to
zero. At that time the Class HI:M-1 Certificateholders will
be entitled to receive the Sub-Pool HI Senior Percentage of
the Sub-Pool HI Formula Principal Distribution Amount,
until the Class HI:M-1 Principal Balance has been reduced
to zero.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
5
<PAGE>
CLASS HI:M-2
INTEREST: After payment of Class HI:A and Class HI:M-1 Distribution
Amount, interest will be paid to the Class HI:M-2
Certificateholders in an amount equal to the product of (a)
the Class HI:M-2 Pass-Through Rate and (b) the then
outstanding Class HI:M-2 Principal Balance (less the Class
HI:M-2 Liquidation Loss Principal Amount, if any). Interest
will initially accrue from the Settlement Date and
thereafter will accrue from the most recent Payment Date on
which interest has been paid to, in each case, but
excluding the following Payment Date. Interest will be
computed on 30/360 basis. Interest shortfalls will be
carried forward, and will bear interest at the Class HI:M-2
Pass-Through Rate, to the extent legally possible.
CLASS HI:M-2
PRINCIPAL: Class HI:M-2 Certificateholders will not receive principal
until Class HI:A and Class HI:M-1 Principal Balances have
been reduced to zero. At that time the Class HI:M-2
Certificateholders will be entitled to receive the Sub-Pool
HI Senior Percentage of the Sub-Pool HI Formula Principal
Distribution Amount, until the Class HI:M-2 Principal
Balance has been reduced to zero.
CLASS HI:B-1
INTEREST: After payment of Class HI:A, Class HI:M-1 and Class HI:M-2
distribution Amounts, interest will be paid to the Class
HI:B-1 Certificateholders in an amount equal to the product
of (a) the Class HI:B-1 Pass-Through Rate and (b) the then
outstanding Class HI:B-1 Principal Balance (less the Class
HI:B-1 Liquidation Loss Principal Amount, if any). Interest
will initially accrue from the Settlement Date and
thereafter will accrue from the most recent Payment Date on
which interest has been paid to, in each case, but
excluding the following Payment Date. Interest will be
computed on 30/360 basis. Interest shortfalls will be
carried forward, and will bear interest at the Class HI:B-1
Pass-Through Rate, to the extent legally possible.
CLASS HI:B-1
PRINCIPAL: The Class HI:B-1 Certificateholders will not receive
principal payments until (i) the Class HI:B Cross-over Date
and (ii) such time as either (a) each Class HI:B Principal
Distribution Test is satisfied or (b) the Class HI:A
Principal Balance and the Class HI:M Principal Balance have
each been reduced to zero. At that time, to the extent of
the amount available after payment of Class HI:A, and Class
HI:M Distribution Amounts and Class HI:B-1 interest, Class
HI:B-1 Certificateholders will receive the Class HI:B
Percentage of the Sub-Pool HI Formula Principal
Distribution Amount until Class HI:B-1 Principal Balance
has been reduced to zero.
The Class HI:B Percentage will be equal to 100% minus the
Sub-Pool HI Senior Percentage. The Class HI:B Percentage
after the Class HI:A and Class HI:M Principal Balances
have been reduced to zero will be equal to 100%.
CLASS HI:B PRINCIPAL
DISTRIBUTION
TESTS: (i) the average of the Sub-Pool HI Sixty-Day Delinquency
Ratio as of the given Payment Date and the prior two
Payment Dates must not exceed 2.5%;
(ii) the average of the Sub-Pool HI Thirty-Day Delinquency
Ratio as of the given Payment Date and the prior two
Payment Dates must not exceed 5%;
(iii) the Sub-Pool HI Cumulative Realized Losses
of the given Payment Date must not exceed 10%;
(iv) the Sub-Pool HI Current Realized Loss Ratio as of the
given Payment Date must not exceed 2.5%; and
(v) the Class HI:B Principal Balance divided by the Pool
Scheduled Principal Balance of Sub-Pool HI as of the
immediately preceding Payment Date must be equal to
or greater than 14%.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
6
<PAGE>
CLASS HI:B-2
INTEREST: After payment of Class HI:A, Class HI:M-1, Class HI:M-2 and
Class HI:B-1 Distribution Amounts, interest will be paid to
the Class HI:B-2 Certificateholders in an amount equal to
the product of (a) the Class HI:B-2 Pass-Through Rate and
(b) the then outstanding Class HI:B-2 Principal Balance
(less the Class HI:B-2 Liquidation Loss Principal Amount,
if any). The Class HI:B-2 Limited Guaranty will be
available to pay interest to the Class HI:B-2
Certificateholders if the Class HI:B-2 Remaining Amount
Available is not sufficient. Interest will initially accrue
from the Settlement Date and thereafter will accrue from
the most recent Payment Date on which interest has been
paid to, in each case, but excluding the following Payment
Date. Interest will be computed on 30/360 basis. Interest
shortfalls will be carried forward, and will bear interest
at the Class HI:B-2 Pass-Through Rate, to the extent
legally possible.
CLASS HI:B-2
PRINCIPAL: Except as described below, the Class HI:B-2
Certificateholders will not receive principal payments
until the Class HI:B-1 Principal Balance has been reduced
to zero. At that time, if each Class HI:B Principal
Distribution Test is satisfied (unless the Class HI:A and
Class HI:M Principal Balances have been reduced to zero),
to the extent of the amount available after payment of the
Class HI:A, the Class HI:M and the Class HI:B-1
Distribution Amounts and any amounts actually paid under
the Class HI:B-2 Limited Guaranty, the Class HI:B-2
Certificateholders will receive the Class HI:B Percentage
of the Sub-Pool HI Formula Principal Distribution Amount
until Class HI:B-2 Principal Balance has been reduced to
zero.
On each Payment Date, the Class HI:B-2 Certificateholders
will also be entitled to receive, pursuant to the Class
HI:B-2 Limited Guaranty, the Class HI:B-2 Liquidation
Loss Principal Amount until the Class HI:B-2 Principal
Balance has been reduced to zero.
CLASS HI:B-2
LIMITED GUARANTY: The Class HI:B-2 Limited Guaranty will be available to pay
the Class HI: B-2 Liquidation Loss Principal Amount and the
Class HI:B-2 Distribution Amount. The Class HI:B-2 Limited
Guaranty will be an unsecured general obligation of the
Company.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
7
<PAGE>
HOME EQUITY CERTIFICATE STRUCTURE
CREDIT ENHANCEMENT: Class HE:A: 14.75% subordination (Class HE:M-1, HE:M-2,
HE:B-1 and HE:B-2) & Residual (Class C)
Class HE:M-1: 8.67% subordination (Class HE:M-2, HE:B-1,
and HE:B-2) & Residual (Class C)
Class HE:M-2: 4.90% subordination (Class HE:B-1 and HE:B-
2) & Residual (Class C)
Class HE:B-1: 1.375% subordination (Class HE:B-2) &
Residual (Class C)
Class HE:B-2: Limited Guaranty & Residual (Class C)
DISTRIBUTIONS: Sub-Pool HE includes adjustable-rate closed-end home equity
loans subject to interest rate adjustments after an initial
period of up to 36 months (the "Adjustable Rate Home Equity
Contracts"; all Home Equity Contracts other than the
Adjustable Rate Home Equity Contracts are referred to
herein as the "Fixed Rate Home Equity Contracts").
The Sub-Pool HE Amount Available will generally consist of
payments made on or in respect of the Home Equity Contracts
comprising Sub-Pool HE, and will include amounts otherwise
payable to the Servicer (as long as Green Tree is the
Servicer) as the Monthly Servicing Fee with respect to the
Home Equity Contracts, and to the Class C
Certificateholder.
The Amount Available will generally be applied first to the
distributions to the Class HE:A Certificateholders, then to
the Class HE:M Certificateholders, then to the Class HE:M
Certificateholders. and then to the Class HE:B
Certificateholders.
Class HE:A Certificates are senior to Class HE:M and Class
HE:B Certificates. Class HE:M Certificates are senior to
the Class HE:B Certificates.
PRE-FUNDING FEATURE: On the Closing Date, a portion of the proceeds from the
sale of the Class HE:Certificates (the "Sub-Pool HE Pre-
Funded Amount") will be deposited with the Trustee in a
segregated account (the "Sub-Pool HE Pre-Funding Account")
and used by the Trust to purchase Subsequent Home Equity
Contracts during the Pre-Funding Period. The Sub-Pool HE
Pre-Funded Amount will be reduced during the Pre-Funding
Period by the amounts thereof used to fund such purchases.
Amounts remaining in the Sub-Pool Pre-Funding Account
following the Pre-Funding Period will be (i) paid in
respect of each class of Class HE: Certificates (other than
the Class: HE: A-1 ARM Certificates) on a pro-rata basis in
the case of amounts which had been allocated to fund the
purchase of Subsequent Home Equity Contracts which are
Fixed Rate Home Equity Contracts, and (ii) paid in respect
of the Class HE: A-1 ARM Certificates in the case of
amounts which had been allocated to fund the purchase of
Subsequent Home Equity Contracts which are Adjustable Rate
Home Equity Contracts.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
8
<PAGE>
LOSSES ON LIQUIDATED
HE CONTRACTS: If Net Liquidation Proceeds from Liquidated Contracts in
the respective collection period are less than the
Scheduled Principal Balance of such Liquidated Contract
plus accrued and unpaid interest thereon, the deficiency
will be absorbed by the Class C Certificateholder, then the
Guaranty Fee otherwise payable to the Company, then the
Monthly Servicing Fee otherwise payable to the Servicer (as
long as Green Tree is the Servicer), then the Class HE:B-2
Certificateholders, then the Class HE:B-1
Certificateholders, then the Class HE:M-2
Certificateholders and then the Class HE:M-1
Certificateholders.
CLASS HE:A INTEREST: Interest will be paid concurrently on each Class of Class
HE:A Certificates at the related Pass-Through Rate on the
then outstanding related Class Principal Balance (in the
case of Class HE:A Certificates other than the Class HE:A-7
IO Certificates) or based on the "Notional Principal
Amount" (in the case of the Class HE:A-7 IO Certificates).
Interest will be calculated on the Class HE:A-7 IO
Certificates on the basis of a "Notional Principal Amount"
equal to the aggregate outstanding Certificate Principal
Balance of the Class HE:A-6 Certificates (reference to the
Notional Principal Amount is solely for convenience in
certain calculations and does not represent the right to
receive any distribution allocable to principal). The Class
HE:A-7 IO Certificates are entitled to receive interest
payments only through the Payment date in January 2001.
Interest will initially accrue from the Settlement Date and
thereafter will accrue from the most recent Payment Date on
which interest has been paid, in each case, to but
excluding the following Payment Date.
The Class HE:A-1 ARM Certificates will bear interest at a
variable Pass-Through Rate calculated on an actual/360
basis. The Pass Through Rate for the Class HE:A-1 ARM
Certificates will be floating and will equal the lesser of:
i. one-month LIBOR plus the Pass-Through
Margin;
ii. the Available Funds Pass-Through Rate;
or
iii. 14.00%.
The Pass-Through Margin will equal [___%] per annum
through the Payment Date on which the principal balance of
the Home Equity and Home Improvement Contracts is 10% or
more of the Principal Balance of the Home Equity and Home
Improvement Contracts as of the Cut-off Date, and [2 x
initial pricing margin] per annum on each Payment Date on
which the principal balance of the Home Equity and Home
Improvement Contracts is less than 10% of the Principal
Balance of the Home Equity and Home Improvement Contracts
as of the Cut-off Date. The Available Funds Pass-Through
Rate for any Payment Date will be a rate per annum equal
to the weighted average of the Expense Adjusted Mortgage
Rates on the then outstanding Adjustable Rate Contracts.
The Expense Adjusted Mortgage Rate on any Adjustable Rate
Contract is equal to the then applicable Loan Interest
Rate thereon, minus the Expense Fee Rate, which is [.75]%
per annum and equal to the sum of the servicing fee and
the trustee fee.
Each other Class of Class A Certificates will bear
interest at a fixed Pass-Through Rate calculated on a
30/360 basis. Interest shortfalls will be carried forward,
and will bear interest at the applicable Class A Pass-
Through Rate, to the extent legally permissible.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
9
<PAGE>
CLASS HE:A PRINCIPAL: After payment of all interest distributable to the Class
HE:A Certificateholders, the Class HE:A-1 ARM Formula
Principal Distribution Amount will be distributed to the
Class HE:A-1 ARM Certificateholders and the Sub-Pool HE
Senior Percentage of the Sub-Pool HE Formula Principal
Distribution Amount less the HE:A-6 Lockout Distribution
Amount as defined below will be distributed first to the
Class HE:A-1 Certificateholders, until the Class HE:A-1
Principal Balance has been reduced to zero, then to the
Class HE:A-2 Certificateholders until the Class HE:A-2
Principal Balance has been reduced to zero, and then to
the Class HE:A-3 Certificateholders until the Class HE:A-3
Principal Balance has been reduced to zero, and then to
the Class HE:A-4 Certificateholders until the Class HE:A-4
Principal Balance has been reduced to zero, and then to
the Class HE:A-5 Certificateholders until the Class HE:A-5
Principal Balance has been reduced to zero.
The "Sub-Pool HE Formula Principal Distribution Amount"
will generally be equal to (A) the sum of (i) scheduled
payments of principal due on each outstanding Home Equity
Contract during the related Due Period, (ii) the Scheduled
Balance of each Home Equity Contract which, during the
related Due Period, was repurchased by the Company, (iii)
all partial principal prepayments applied and all
principal prepayments in full received during such Due
Period in respect of Home Equity Contracts, (iv) the
scheduled principal balance of each Home Equity Contract
that became a liquidated contract during such related Due
Period and (v) any amount described in clauses (i) through
(iv) above that was not previously distributed because of
an insufficient amount of funds available if (a) the
Payment Date occurs on or after the Payment ate on which
the Class HE: B-2 Principal Balance has been reduced to
zero, or (b) such amount was not covered by a Class HE: B-
2 Guaranty Payment and corresponding reduction in the
Class HE: B-2 Principal Balance, minus (B) the Class HE:
A-1 ARM Formula Principal Distribution Amount.
The "Class HE: A-1 ARM Formula Principal Distribution
Amount" on or before the Payment Date on which the Class
HE: A-1 ARM Certificates have been paid in full will
generally be equal to the lesser of (A) the Class HE: A-1
ARM Principal Balance or (B) the sum of the following: (i)
all scheduled payments of principal due on each
outstanding Adjustable Rate Contract during the related
Due Period; (ii) all partial principal prepayments and
principal prepayments in full received on each Adjustable
Rate Contract during the related Due Period; (iii) the
scheduled principal balance of each Adjustable Rate
Contract that became a liquidated contract during the
related Due Period; (iv) the scheduled principal balance
of each Adjustable Rate Contract repurchased by the
Company during the related Due Period; and (v) on any
Payment Date which is on or after the Payment Date on
which the Class HE: A-1, A-2, A-3, A-4, A-5 and A-6
Certificates have been paid in full, (a) the Sub-Pool HE
Senior Percentage times (x) the sum of the amounts
described in clauses (i) through (v) of the definition of
the Sub-Pool HE Formula Principal Distribution Amount less
(y) the sum of the amounts described in clauses (i)
through (iv) of the definition of the Sub-Pool HE: A-1 ARM
Formula Principal Distribution Amount less (b) the amount,
if any, distributed in payment of principal on the Class
HE: A-1, A-2, A-3, A-4, A-5 and A-6 Certificates on such
Payment Date.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
10
<PAGE>
CLASS HE:A PRINCIPAL
(continued): The Class HE:A-6 Certificateholders are entitled to
receive payments of the Class HE:A-6 Lockout Distribution
Amount specified below, provided, that if on any Payment
Date the Class HE:A-5 Certificate Principal Balance is
zero, the Certificateholders of the Class HE:A-6
Certificates will be entitled to receive the entire Sub-
Pool HE Formula Principal Distribution Amount (less the
amount, if any, distributed in respect of the Class HE:A-5
Certificates on such Payment Date).
The "Class HE:A-6 Lockout Distribution Amount" for any
Payment Date will be the product of (i) the applicable
Class HE:A-6 Lockout Percentage for such Payment Date
and (ii) the Class HE:A-6 Lockout Pro Rata Distribution
Amount for such Payment Date.
The "Class HE:A-6 Lockout Percentage" for each Payment
Date shall be as follows:
Payment Dates Lockout Percentage
January 1998 -December 2000 0%
January 2001 -December 2002 20%
January 2003 -December 2003 80%
January 2004 -December 2004 100%
January 2005 and thereafter 300%
The "Class HE:A-6 Lockout Pro Rata Distribution Amount"
for any Payment Date will be an amount equal to the
product of (x) a fraction, the numerator of which is the
Certificate Principal Balance of the Class HE:A-6
Certificates immediately prior to such Payment Date and
the denominator of which is the aggregate Certificate
Balance of the Class HE:A-1, Class HE:A-2, Class HE:A-3,
Class HE:A-4, Class HE:A-5, and Class HE:A-6 Principal
Balances and (y) the Sub-Pool HE Senior Percentage of the
Sub-Pool HE Formula Principal Distribution Amount.
Payment Dates The Sub-Pool HE Senior Percentage will equal 100% if any
of the following exist:
i) it is prior to January 2001 (month 36);
ii) the Class HE:B Principal Balance represents less than
9.80% of the Scheduled Principal Balance of Sub-Pool
HE; and
iii) each Class HE:B Principal Distribution Test (see
below) is not satisfied.
Otherwise, the Sub-Pool HE Senior Percentage will equal a
fraction, the numerator of which is the sum of the Class
HE:A Principal Balance (excluding the Class HE:A-1 ARM
Principal Balance) and the Class HE:M Principal Balance
for a given Payment Date, and the denominator of which is
the Scheduled Principal Balance of Sub-Pool HE for the
immediately preceding Payment Date. The Class HE:A-7 IO
Certificates are interest-only Certificates and are not
entitled to receive distributions of principal.
CLASS HE:M-1
INTEREST: After payment of Class HE:A Distribution Amount, interest
will be paid to the Class HE:M-1 Certificateholders in an
amount equal to the product of (a) the Class HE:M-1 Pass-
Through Rate and (b) the then outstanding Class HE:M-1
Principal Balance (less the Class HE:M-1 Liquidation Loss
Principal Amount, if any). Interest will initially accrue
from the Settlement Date and thereafter will accrue from
the most recent Payment Date on which interest has been
paid to, in each case, but excluding the following Payment
Date. Interest shortfalls will be carried forward, and
will bear interest at the Class HE:M-1 Pass-Through Rate,
to the extent legally permissible.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
11
<PAGE>
CLASS HE:M-1
PRINCIPAL: Class HE:M-1 Certificateholders will not receive principal
until Class HE:A Principal Balance has been reduced to
zero. At that time the Class HE:M-1 Certificateholders
will be entitled to receive the Sub-Pool HE Senior
Percentage of the Sub-Pool HE Formula Principal
Distribution Amount, until the Class HE:M-1 Principal
Balance has been reduced to zero.
CLASS HE:M-2
INTEREST: After payment of Class HE:A and Class HE:M-1 Distribution
Amount, interest will be paid to the Class HE:M-2
Certificateholders in an amount equal to the product of
(a) the Class HE:M-2 Pass-Through Rate and (b) the then
outstanding Class HE:M-2 Principal Balance (less the Class
HE:M-2 Liquidation Loss Principal Amount, if any).
Interest will initially accrue from the Settlement Date
and thereafter will accrue from the most recent Payment
Date on which interest has been paid to, in each case, but
excluding the following Payment Date. Interest shortfalls
will be carried forward, and will bear interest at the
Class HE:M-2 Pass-Through Rate, to the extent legally
permissible.
CLASS HE:M-2
PRINCIPAL: Class HE:M-2 Certificateholders will not receive principal
until Class HE:A and Class HE:M-1 Principal Balances have
been reduced to zero. At that time Class HE:M-2 will be
entitled to receive the Sub-Pool HE Senior Percentage of
the Sub-Pool HE Formula Principal Distribution Amount,
until the Class HE:M-2 Principal Balance has been reduced
to zero.
CLASS HE:B-1
INTEREST: After payment of Class HE:A, Class HE:M-1 and Class HE:M-2
Distribution Amounts, interest will be paid to the Class
HE:B-1 Certificateholders in an amount equal to the
product of (a) the Class HE:B-1 Pass-Through Rate and (b)
the then outstanding Class HE:B-1 Principal Balance (less
the Class HE:B-1 Liquidation Loss Principal Amount, if
any). Interest will initially accrue from the Settlement
Date and thereafter will accrue from the most recent
Payment Date on which interest has been paid to, in each
case, but excluding the following Payment Date. Interest
shortfalls will be carried forward, and will bear interest
at the Class HE:B-1 Pass-Through Rate, to the extent
legally permissible.
CLASS HE:B-1
PRINCIPAL: The Class HE:B-1 Certificateholders will not receive
principal payments until (i) the Class HE:B Cross-over
Dateand (ii) such time as either (a) each Class HE:B
Principal Distribution Test is satisfied or (b) the Class
HE:A Principal Balance and the Class HE:M Principal
Balance have each been reduced to zero. At that time, to
the extent of the amount available after payment of Class
HE:A, Class HE:M Distribution Amounts and Class HE:B-1
interest, Class HE:B-1 Certificateholders will receive the
Class HE:B Percentage of the Sub-Pool HE Formula Principal
Distribution Amount until Class HE:B-1 Principal Balance
has been reduced to zero.
The Class HE:B Percentage will be equal to 100% minus the
Sub-Pool HE Senior Percentage. The Class HE:B Percentage
after the Class HE:A and Class HE:M Principal Balances
have been reduced to zero will be equal to 100%.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
12
<PAGE>
CLASS HE:B PRINCIPAL
DISTRIBUTION TESTS: (i) the Sub-Pool HE Average Sixty-Day Delinquency Ratio
with respect to Sub-Pool HE as of the given Payment
Date and the prior two Payment Dates must not exceed
6.0%;
(ii) the Sub-Pool HE Average Thirty-Day Delinquency Ratio
with respect to Sub-Pool HE as of the given Payment
Date and the prior two Payment Dates must not exceed
12.0%;
(iii) the Sub-Pool HE Cumulative Realized Losses with
respect to Sub-Pool HE as of the given Payment Date
must not exceed 7.5%;
(iv) the Sub-Pool HE Current Realized Loss Ratio with
respect to Sub-Pool HE as of the given Payment Date
must not exceed 2.0%; and
(v) the Class HE:B Principal Balance divided by the Pool
Scheduled Principal Balance of Sub-Pool HE as of the
immediately preceding Payment Date must be equal to
or greater than 9.80%.
CLASS HE:B-2
INTEREST: After payment of Class HE:A, Class HE:M-1, Class HE:M-2
and Class HE:B-1 Distribution Amounts, interest will be
paid to the Class HE:B-2 Certificateholders in an amount
equal to the product of (a) the Class HE:B-2 Pass-Through
Rate and (b) the then outstanding Class HE:B-2 Principal
Balance (less the Class HE:B-2 Liquidation Loss Principal
Amount, if any). The Class HE:B-2 Limited Guaranty will be
available to pay interest to the Class HE:B-2
Certificateholders if the Class HE:B-2 Remaining Amount
Available is not sufficient. Interest will initially
accrue from the Settlement Date and thereafter will accrue
from the most recent Payment Date on which interest has
been paid to, in each case, but excluding the following
Payment Date. Interest shortfalls will be carried forward,
and will bear interest at the Class HE:B-2 Pass-Through
Rate, to the extent legally permissible.
CLASS HE:B-2
PRINCIPAL: The Class HE:B-2 Certificateholders will not receive
principal payments until the Class HE:B-1 Principal
Balance has been reduced to zero. At that time, if each
Class HE:B Principal Distribution Test is satisfied
(unless the Class HE:A and Class HE:M Principal Balances
have been reduced to zero), to the extent of the amount
available after payment of the Class HE:A, the Class HE:M
and the Class HE:B-1 Distribution Amounts and any amounts
actually paid under the Class HE:B-2 Limited Guaranty, the
Class HE:B-2 Certificateholders will receive the Class
HE:B Percentage of the Sub-Pool HE Formula Principal
Distribution Amount until Class HE:B-2 Principal Balance
has been reduced to zero.
On each Payment Date, the Class HE:B-2 Certificateholders
will be entitled to receive pursuant to the Class HE:B-2
Limited Guaranty, the Class HE:B-2 Liquidation Loss
Principal Amount until the Class HE:B-2 Principal Balance
has been reduced to zero.
CLASS HE:B-2 LIMITED
GUARANTY: The Class HE:B-2 Limited Guaranty will be available to pay
the Class HE: B-2 Liquidation Loss principal Amount and
the Class HE:B-2 Distribution Amount. The Class HE:B-2
Limited Guaranty will be an unsecured general obligation
of the Company.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
13
<PAGE>
HOME IMPROVEMENT CONTRACTS
The Home Improvement Contracts comprising Sub-Pool HI consist of
conventional and FHA-insured home improvement contracts and promissory notes.
The obligations of the Obligor under each Home Improvement Contract are secured
by the related real estate.
The information concerning the Initial Home Improvement Contracts presented
below is based on a pool originated through December 1, 1997. Green Tree
intends to acquire and sell Additional Home Improvement Contracts to the Trust
by the Closing Date and Subsequent Home Improvement Contracts to the Trust
thereafter. Although the characteristics of the final pool of Home Improvement
Contracts will differ from the characteristics of the Initial Home Improvement
Contracts shown below, Green Tree does not expect that the characteristics of
the Additional and Subsequent Home Improvement Contracts sold to the Trust will
vary materially from those of the Initial Home Improvement Contracts herein.
THE INITIAL HOME IMPROVEMENT CONTRACT SUB-POOL
Number of Contracts in Sub-pool: 5,986
Wgt. Avg. Contract Rate: 11.224%
Range of Rates: 7.50% - 18.25%
Wgt. Avg. Orig. Maturity: 211
Wgt. Avg. Rem. Maturity: 209
Avg. Rem. Princ. Balance: $ 17,922.35
GEOGRAPHIC DISTRIBUTION OF MORTGAGED PROPERTIES
INITIAL HOME IMPROVEMENT CONTRACTS
<TABLE>
<CAPTION>
% of HI Contract % of HI Contract
Sub-Pool by Aggregate Principal Sub-Pool by
Number of Number of Balance Outstanding
State Contracts Contracts Outstanding Principal Balance
- ---------------- ---------- ---------------- ------------------- ---------------------
<S> <C> <C> <C> <C>
CA 673 11.24% $ 20,897,524.14 19.48%
NY 435 7.27% 7,747,643.64 7.22%
FL 375 6.26% 6,706,315.53 6.25%
MI 370 6.18% 6,466,050.03 6.03%
AZ 283 4.73% 5,734,952.56 5.35%
NJ 314 5.25% 5,696,328.64 5.31%
PA 330 5.51% 5,566,508.57 5.19%
Other States* 3,206 53.56% 48,467,878.26 45.18%
----- ------ --------------- ------
Total(1) 5,986 100.00% $107,283,201.37 100.00%
===== ====== =============== ======
</TABLE>
_______________
* No one State in this category constitutes more than 5% of the Sub-Pool HI
Outstanding Principal Balance.
YEARS OF ORIGINATION OF INITIAL HOME IMPROVEMENT CONTRACTS
<TABLE>
<CAPTION>
% of HI Contract Sub-Pool by
Number of Aggregate Principal Outstanding Principal
Year of Origination Contracts Balance Outstanding Balance
- ------------------- --------- ------------------- ----------------------------
<S> <C> <C> <C>
1990 1 $ 33,322.03 0.03%
1996 39 1,575,794.75 1.47%
1997 5,946 105,674,084.59 98.50%
----- --------------- ------
Total(1) 5,986 $107,283,201.37 100.00%
===== =============== ======
</TABLE>
(1) Percentages do not add to 100% due to rounding.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
14
<PAGE>
DISTRIBUTION OF ORIGINAL INITIAL HOME IMPROVEMENT CONTRACT AMOUNTS
<TABLE>
<CAPTION>
% of HI Contract Sub-Pool
Original HI Contract Number of Aggregate Principal by Outstanding Principal
Amount (in Dollars) Contracts Balance Outstanding Balance
- ---------------------------------- ---------- --------------------- -------------------------
<S> <C> <C> <C>
Less than $10,000.01 1,555 $ 11,044,308.60 10.29%
Between $10,000.01-$20,000.00 2,487 35,866,212.34 33.43%
Between $20,000.01-$30,000.00 1,193 28,611,100.98 26.67%
Between $30,000.01-$40,000.00 419 14,024,851.35 13.07%
Between $40,000.01-$50,000.00 176 7,584,971.53 7.07%
Between $50,000.01-$60,000.00 85 4,456,474.51 4.15%
Between $60,000.01-$70,000.00 36 2,232,541.69 2.08%
Between $70,000.01-$80,000.00 18 1,350,365.24 1.26%
Between $80,000.01-$90,000.00 3 245,599.47 0.23%
Between $90,000.01-$100,000.00 2 186,878.58 0.17%
Between $100,000.01-$110,000.00 2 205,087.14 0.19%
Between $110,000.01-$120,000.00 1 117,309.90 0.11%
Between $120,000.01-$130,000.00 3 376,791.51 0.35%
Between $130,000.01-$140,000.00 1 137,187.39 0.13%
Between $140,000.01-$150,000.00 1 149,419.11 0.14%
Between $150,000.01-$160,000.00 1 151,755.29 0.14%
Between $160,000.01-$170,000.00 1 163,247.99 0.15%
Between $170,000.01-$180,000.00 1 175,761.10 0.16%
Between $180,000.01-$210,000.00 1 203,337.65 0.19%
----- --------------- ------
Total(1) 5,986 $107,283,201.37 100.00%
===== =============== ======
</TABLE>
INITIAL HOME IMPROVEMENT CONTRACT RATES
<TABLE>
<CAPTION>
% of HI Contract Sub-Pool
Range of HI Contracts by Number of Aggregate Principal by Outstanding Principal
Contract Rates Contracts Balance Outstanding Balance
- ---------------------------------- ---------- --------------------- -------------------------
<S> <C> <C> <C>
From 7.001%-8.000% 6 $ 218,715.55 0.20%
From 8.001%-9.000% 175 3,645,238.76 3.40%
From 9.001%-10.000% 1,038 27,718,710.05 25.84%
From 10.001%-11.000% 1,548 31,071,347.93 28.96%
From 11.001%-12.000% 858 14,905,947.12 13.89%
From 12.001%-13.000% 1,050 14,898,527.66 13.89%
From 13.001%-14.000% 824 8,658,876.66 8.07%
From 14.001%-15.000% 399 5,099,711.48 4.75%
From 15.001%-16.000% 69 850,631.68 0.79%
From 16.001%-17.000% 18 207,675.48 0.19%
Over 17.001% 1 7,819.00 0.01%
----- --------------- ------
Total(1) 5,986 $107,283,201.37 100.00%
===== =============== ======
</TABLE>
(1) Percentages do not add to 100% due to rounding.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
15
<PAGE>
REMAINING MONTHS TO MATURITY OF INITIAL HOME IMPROVEMENT CONTRACTS
<TABLE>
<CAPTION>
% of HI Contract Sub-Pool
Number of Aggregate Principal by Outstanding Principal
Months Remaining Contracts Balance Outstanding Balance
- ---------------------------------- ---------- --------------------- -------------------------
<S> <C> <C> <C>
Less than 37 71 $ 405,952.45 0.38%
37-60 407 3,468,625.69 3.23%
61-84 246 2,186,208.07 2.04%
85-108 124 1,104,752.67 1.03%
109-132 1,568 20,221,749.82 18.85%
133-156 54 750,658.61 0.70%
157-180 1,462 26,471,107.73 24.67%
181-204 6 105,067.43 0.10%
205-228 3 42,851.71 0.04%
229-252 738 15,690,204.27 14.63%
253-300 1,306 36,768,379.40 34.27%
301-360 1 67,643.52 0.06%
----- --------------- ------
Total(1) 5,986 $107,283,201.37 100.00%
===== =============== ======
</TABLE>
LIEN POSITION OF INITIAL HOME IMPROVEMENT CONTRACTS
<TABLE>
<CAPTION>
% of HI Contract Sub-Pool
Number of Aggregate Principal by Outstanding Principal
Lien Position Contracts Balance Outstanding Balance
- ---------------------------------- ---------- --------------------- -------------------------
<S> <C> <C> <C>
First 399 $ 6,207,750.39 5.79%
Second 4,424 81,519,557.88 75.99%
Third 1,141 19,411,382.81 18.09%
Fourth 22 144,510.29 0.13%
----- --------------- ------
Total(1) 5,986 $107,283,201.37 100.00%
===== =============== ======
</TABLE>
(1) Percentages do not add to 100% due to rounding.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
16
<PAGE>
HOME EQUITY CONTRACTS
The Home Equity Contracts comprising Sub-Pool HE consist of both fixed rate
and adjustable rate closed-end home equity contracts. The adjustable rate
closed-end home equity contracts are subject to interest rate adjustments after
an initial six month, twenty-four month, or thirty-six month period (the
"Adjustable Rate Home Equity Contracts"). All Home Equity Contracts which are
not Adjustable Rate Contracts are referred herein as "Fixed Rate Home Equity
Contracts." The obligations of the Obligor under each Home Equity Contract are
secured by the related real estate.
The information concerning the Initial Home Equity Contracts presented
below is based on the current pool. Green Tree intends to acquire and sell
Additional Home Equity Contracts to the Trust by the Closing Date and Subsequent
Contracts to the Trust thereafter. Although the characteristics of the final
pool of Home Equity Contracts will differ from the characteristics of the
Initial Home Equity Contracts shown below, Green Tree does not expect that the
characteristics of the Additional and Subsequent Home Equity Contracts sold to
the Trust will vary materially from those of the Initial Home Equity Contracts
herein.
THE INITIAL HOME EQUITY CONTRACT SUB-POOL
INITIAL FIXED RATE HOME EQUITY CONTRACTS
Number of Contracts in Sub-pool: 8,597
Wgt. Avg. Contract Rate: 11.883%
Range of Rates: 6.75% - 19.99%
Wgt. Avg. Orig. Maturity: 236
Wgt. Avg. Rem. Maturity: 235
Avg. Rem. Princ. Balance: $ 50,597.62
Wgt. Avg. CLTV: 87.02%
GEOGRAPHIC DISTRIBUTION OF MORTGAGED PROPERTIES
INITIAL FIXED RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of HE Contract
% of HE Contract Sub-Pool by
Number of Sub-Pool by Number of Aggregate Principal Outstanding Principal
State Contracts Contracts Balance Outstanding Balance
- ----- --------------- --------------------- ------------------- ---------------------
<S> <C> <C> <C> <C>
OH 690 8.03% $ 32,960,978.97 7.58%
GA 537 6.25% 26,839,005.44 6.17%
NC 518 6.03% 26,158,595.46 6.01%
PA 446 5.19% 24,738,133.95 5.69%
FL 524 6.10% 23,222,490.80 5.34%
IL 410 4.77% 22,764,766.98 5.23%
MI 381 4.43% 22,694,818.77 5.22%
NY 360 4.19% 22,519,029.70 5.18%
Other* 4,731 55.03% 233,089,888.74 53.59%
----- ------ --------------- ------
Total(1) 8,597 100.00% $434,987,708.81 100.00%
===== ====== =============== ======
</TABLE>
_______________
* No one State in this category constitutes more than 5% of the Initial Fixed
Rate Home Equity Contracts Outstanding Principal Balance.
(1) Percentages do not add to 100% due to rounding.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
17
<PAGE>
YEAR OF ORIGINATION OF INITIAL FIXED RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of HE Contract Sub-Pool
Number of Aggregate Principal by Outstanding Principal
Year of Origination Contracts Balance Outstanding Balance
- ------------------- --------- --------------------- ------------------------
<S> <C> <C> <C>
1968 1 $ 735.72 *
1975 2 13,909.83 *
1976 3 65,472.33 0.02%
1977 1 20,776.66 *
1978 2 43,600.60 0.01%
1983 1 1,505.42 *
1986 3 66,752.58 0.02%
1989 1 11,070.82 *
1994 1 15,020.87 *
1995 3 197,059.66 0.05%
1996 10 457,100.36 0.11%
1997 8,569 434,094,703.96 99.79%
----- --------------- ------
Total(1) 8,597 $434,987,708.81 100.00%
===== =============== ======
</TABLE>
_______________
* Indicates an amount greater than 0.00% but less than 0.005%
INITIAL FIXED RATE HOME EQUITY CONTRACT RATES
<TABLE>
<CAPTION>
% of HE Contract Sub-Pool
Range of HE Contracts Number of Aggregate Principal by Outstanding Principal
by Contract Rates Contracts Balance Outstanding Balance
- -------------------- --------- --------------------- ------------------------
<S> <C> <C> <C>
From 0.000%-8.000% 7 $ 652,725.86 0.15%
From 8.001%-9.000% 45 3,820,544.28 0.88%
From 9.001%-10.000% 406 34,282,644.06 7.88%
From 10.001%-11.000% 1,455 118,410,906.71 27.22%
From 11.001%-12.000% 1,632 94,647,671.78 21.76%
From 12.001%-13.000% 2,173 94,378,468.12 21.70%
From 13.001%-14.000% 1,645 57,220,814.99 13.15%
From 14.001%-15.000% 644 19,047,309.00 4.38%
From 15.001%-16.000% 307 7,663,616.80 1.76%
From 16.001%-17.000% 178 2,873,645.41 0.66%
From 17.001%-18.000% 88 1,719,796.13 0.40%
Over 18.001% 17 269,565.67 0.06%
----- --------------- ------
Total 8,597 $434,987,708.81 100.00%
===== =============== ======
</TABLE>
(1) Percentages do not add to 100% due to rounding.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
18
<PAGE>
DISTRIBUTION OF ORIGINAL INITIAL FIXED RATE HOME EQUITY CONTRACT AMOUNTS
<TABLE>
<CAPTION>
% of HE Contract Sub-Pool
Original HE Contract Number of Aggregate Principal by Outstanding Principal
Amount (in Dollars) Contracts Balance Outstanding Balance
- -------------------- --------- --------------------- ------------------------
<S> <C> <C> <C>
Less than $10,000.01 275 $ 2,413,893.62 0.55%
Between $10,000.01-$20,000.00 1,566 24,426,235.72 5.62%
Between $20,000.01-$30,000.00 1,432 36,030,833.34 8.28%
Between $30,000.01-$40,000.00 1,153 40,288,999.38 9.26%
Between $40,000.01-$50,000.00 853 38,606,579.51 8.88%
Between $50,000.01-$60,000.00 771 42,466,791.50 9.76%
Between $60,000.01-$70,000.00 608 39,349,600.66 9.05%
Between $70,000.01-$80,000.00 474 35,264,624.47 8.11%
Between $80,000.01-$90,000.00 357 30,241,221.99 6.95%
Between $90,000.01-$100,000.00 242 23,042,962.37 5.30%
Between $100,000.01-$110,000.00 173 18,219,743.70 4.19%
Between $110,000.01-$120,000.00 160 18,411,440.00 4.23%
Between $120,000.01-$130,000.00 128 15,950,119.94 3.67%
Between $130,000.01-$140,000.00 98 13,186,739.51 3.03%
Between $140,000.01-$150,000.00 70 10,137,020.79 2.33%
Between $150,000.01-$160,000.00 56 8,685,868.14 2.00%
Between $160,000.01-$170,000.00 28 4,589,635.34 1.06%
Between $170,000.01-$180,000.00 38 6,654,005.62 1.53%
Between $180,000.01-$190,000.00 23 4,249,640.48 0.98%
Between $190,000.01-$200,000.00 23 4,480,775.28 1.03%
Between $200,000.01-$250,000.00 43 9,645,595.01 2.22%
Between $250,000.01-$300,000.00 12 3,262,190.25 0.75%
Between $300,000.01-$350,000.00 7 2,262,514.19 0.52%
Between $350,000.01-$500,000.00 6 2,537,774.80 0.58%
More than $500,000.00 1 582,903.20 0.13%
----- --------------- ------
Total(1) 8,597 $434,987,708.81 100.00%
===== =============== ======
</TABLE>
(1) Percentages do not add to 100% due to rounding.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
19
<PAGE>
REMAINING MONTHS TO MATURITY OF INITIAL FIXED RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of HE Contract Sub-Pool
Number of Aggregate Principal by Outstanding Principal
Months Remaining Contracts Balance Outstanding Balance
- ------------------- --------- --------------------- ------------------------
<S> <C> <C> <C>
Less than 37 8 $ 38,632.16 0.01%
37-60 148 2,104,973.61 0.48%
61-84 92 2,572,003.76 0.59%
85-108 20 557,082.02 0.13%
109-132 755 19,090,809.82 4.39%
133-156 39 1,518,272.00 0.35%
157-180 3,570 163,605,644.89 37.61%
181-204 8 226,582.81 0.05%
205-228 8 728,744.00 0.17%
229-264 2,417 126,452,480.76 29.07%
265-300 703 47,890,492.97 11.01%
301-336 4 289,027.36 0.07%
337-360 825 69,912,962.65 16.07%
----- --------------- ------
Total(1) 8,597 $434,987,708.81 100.00%
===== =============== ======
</TABLE>
LIEN POSITION OF INITIAL FIXED RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of HE Contract Sub-Pool
Number of Aggregate Principal by Outstanding Principal
Lien Contracts Balance Outstanding Balance
- ------------------- --------- --------------------- ------------------------
<S> <C> <C> <C>
First 4,538 $323,133,598.22 74.29%
Second 3,984 110,612,750.04 25.43%
Third 75 1,241,360.55 0.29%
----- --------------- ------
Total(1) 8,597 $434,987,708.81 100.00%
===== =============== ======
</TABLE>
COMBINED LOAN-TO-VALUE RATIO OF INITIAL FIXED RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of HE Contract Sub-Pool
Combined Number of Aggregate Principal by Outstanding Principal
Loan-to-Value Ratio Contracts Balance Outstanding Balance
- ------------------- --------- --------------------- ------------------------
<S> <C> <C> <C>
Less than 60.001% 443 $ 15,322,349.08 3.52%
60.001%-70.000% 393 17,715,509.69 4.07%
70.001%-80.000% 1118 57,306,676.10 13.17%
80.001%-90.000% 3041 158,994,925.97 36.55%
90.001%-100.000% 3549 182,024,991.36 41.85%
100.001%-110.000% 44 3,028,682.90 0.70%
Over 110.000% 9 594,573.71 0.14%
----- --------------- ------
Total(1) 8,597 $434,987,708.81 100.00%
===== =============== ======
</TABLE>
(1) Percentages do not add to 100% due to rounding.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
20
<PAGE>
THE INITIAL HOME EQUITY CONTRACT SUB-POOL
INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACTS
Number of Contracts in Sub-pool: 992
Wgt. Avg. Contract Rate: 10.002%
Range of Rates: 6.75% - 14.00%
Wgt. Avg. Orig. Maturity: 360
Wgt. Avg. Rem. Maturity: 359
Avg. Rem. Princ. Balance: $ 112,213.37
Wgt. Avg. CLTV: 84.65%
GEOGRAPHIC DISTRIBUTION OF MORTGAGED PROPERTIES
INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of HE Contract
% of HE Contract Sub-Pool by
Number of Sub-Pool by Number of Aggregate Principal Outstanding Principal
State Contracts Contracts Balance Outstanding Balance
- ----- --------------- --------------------- ------------------- ---------------------
<S> <C> <C> <C> <C>
CA 67 6.75% $ 12,166,036.42 10.93%
WA 76 7.66% 9,520,000.65 8.55%
MD 54 5.44% 8,595,938.32 7.72%
IL 65 6.55% 6,986,660.04 6.28%
TX 75 7.56% 6,541,916.35 5.88%
Other* 655 66.03% 67,505,111.08 60.64%
--- ------ --------------- ------
Total(1) 992 100.00% $111,315,662.86 100.00%
=== ====== =============== ======
</TABLE>
_______________
* No one State in this category constitutes more than 5% of the Initial
Adjustable Rate Home Equity Contracts Outstanding Principal Balance.
YEAR OF ORIGINATION OF INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of HE Contract Sub-Pool
Number of Aggregate Principal by Outstanding Principal
Year of Origination Contracts Balance Outstanding Balance
- ------------------- --------- --------------------- ------------------------
<S> <C> <C> <C>
1997 992 $111,315,662.86 100.00%
--- --------------- ------
Total 992 $111,315,662.86 100.00%
=== =============== ======
</TABLE>
(1) Percentages do not add to 100% due to rounding.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
21
<PAGE>
DISTRIBUTION OF ORIGINAL INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACT AMOUNTS
<TABLE>
<CAPTION>
% of HE Contract Sub-Pool
Original HE Contract Number of Aggregate Principal by Outstanding Principal
Amount (in Dollars) Contracts Balance Outstanding Balance
- -------------------- --------- --------------------- ------------------------
<S> <C> <C> <C>
Between $10,000.01-$20,000.00 8 $ 146,761.70 0.13%
Between $20,000.01-$30,000.00 15 390,777.55 0.35%
Between $30,000.01-$40,000.00 37 1,311,725.14 1.18%
Between $40,000.01-$50,000.00 62 2,860,206.94 2.57%
Between $50,000.01-$60,000.00 73 4,034,988.36 3.62%
Between $60,000.01-$70,000.00 67 4,343,343.24 3.90%
Between $70,000.01-$80,000.00 75 5,650,472.81 5.08%
Between $80,000.01-$90,000.00 97 8,233,388.62 7.40%
Between $90,000.01-$100,000.00 81 7,744,549.69 6.96%
Between $100,000.01-$110,000.00 65 6,846,091.41 6.15%
Between $110,000.01-$120,000.00 62 7,113,868.09 6.39%
Between $120,000.01-$130,000.00 56 7,007,248.17 6.29%
Between $130,000.01-$140,000.00 42 5,675,430.42 5.10%
Between $140,000.01-$150,000.00 41 5,950,643.81 5.35%
Between $150,000.01-$160,000.00 34 5,302,539.37 4.76%
Between $160,000.01-$170,000.00 28 4,632,594.09 4.16%
Between $170,000.01-$180,000.00 22 3,846,619.08 3.46%
Between $180,000.01-$190,000.00 25 4,616,395.76 4.15%
Between $190,000.01-$200,000.00 10 1,942,271.59 1.74%
Between $200,000.01-$250,000.00 48 10,719,035.26 9.63%
Between $250,000.01-$300,000.00 30 8,133,081.22 7.31%
Between $300,000.01-$350,000.00 10 3,249,692.74 2.92%
Between $350,000.01-$500,000.00 4 1,563,937.80 1.40%
--- --------------- ------
Total(1) 992 $111,315,662.86 100.00%
=== =============== ======
</TABLE>
INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACT RATES
<TABLE>
<CAPTION>
% of HE Contract Sub-Pool
Range of HE Contracts Number of Aggregate Principal by Outstanding Principal
by Contract Rates Contracts Balance Outstanding Balance
- -------------------- --------- --------------------- ------------------------
<S> <C> <C> <C>
From 0.000%-8.000% 22 $ 3,688,530.69 3.31%
From 8.001%-9.000% 144 18,667,084.74 16.77%
From 9.001%-10.000% 286 35,515,082.23 31.90%
From 10.001%-11.000% 360 37,894,541.41 34.04%
From 11.001%-12.000% 142 13,005,637.26 11.68%
From 12.001%-13.000% 32 2,178,863.84 1.96%
From 13.001%-14.000% 6 365,922.69 0.33%
--- --------------- ------
Total(1) 992 $111,315,662.86 100.00%
=== =============== ======
</TABLE>
(1) Percentages do not add to 100% due to rounding
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
22
<PAGE>
REMAINING MONTHS TO MATURITY OF INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of HE Contract Sub-Pool
Number of Aggregate Principal by Outstanding Principal
Months Remaining Contracts Balance Outstanding Balance
- ------------------- --------- --------------------- ------------------------
<S> <C> <C> <C>
349-360 992 $111,315,662.86 100.00%
--- --------------- ------
Total 992 $111,315,662.86 100.00%
=== =============== ======
</TABLE>
LIEN POSITION OF INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of HE Contract Sub-Pool
Number of Aggregate Principal by Outstanding Principal
Lien Contracts Balance Outstanding Balance
- ------------------- --------- --------------------- ------------------------
<S> <C> <C> <C>
First 992 $111,315,662.86 100.00%
--- --------------- ------
Total 992 $111,315,662.86 100.00%
=== =============== ======
</TABLE>
COMBINED LOAN-TO-VALUE RATIO OF INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of HE Contract Sub-Pool
Combined Number of Aggregate Principal by Outstanding Principal
Loan-to-Value Ratio Contracts Balance Outstanding Balance
- ------------------- --------- --------------------- ------------------------
<S> <C> <C> <C>
Less than 60.001% 28 $ 1,665,979.37 1.50%
60.001%-70.000% 46 3,801,099.62 3.41%
70.001%-80.000% 293 31,099,779.77 27.94%
80.001%-90.000% 550 65,613,837.92 58.94%
90.001%-100.000% 72 8,801,246.23 7.91%
100.001%-115.000% 2 165,797.50 0.15%
Over 115.001% 1 167,922.45 0.15%
--- --------------- ------
Total(1) 992 $111,315,662.86 100.00%
=== =============== ======
</TABLE>
(1) Percentages do not add to 100% due to rounding
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
23
<PAGE>
MONTH OF NEXT RATE ADJUSTMENT OF INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of Adjustable Rate
Number of Aggregate Principal Contracts by Outstanding
Month of Next Rate Adjustment Contracts Balance Outstanding Principal Balance
- ----------------------------- ---------- ------------------- ------------------------
<S> <C> <C> <C>
December 1997 16 $ 1,475,998.19 1.33%
January 1998 36 3,632,293.70 3.26%
February 1998 58 6,362,608.06 5.72%
March 1998 56 5,360,742.65 4.82%
April 1998 30 2,828,914.42 2.54%
May 1998 5 486,103.48 0.44%
September 1998 4 429,977.43 0.39%
March 1999 4 378,069.70 0.34%
April 1999 6 903,571.53 0.81%
May 1999 9 887,888.61 0.80%
June 1999 40 4,708,452.81 4.23%
July 1999 141 16,073,183.57 14.44%
August 1999 233 24,723,106.99 22.21%
September 1999 231 28,672,762.92 25.76%
October 1999 108 12,678,212.12 11.39%
November 1999 3 295,500.00 0.27%
April 2000 1 159,855.07 0.14%
July 2000 1 60,320.40 0.05%
August 2000 4 499,355.16 0.45%
September 2000 6 698,746.05 0.63%
--- --------------- ------
Total (1) 992 $111,315,662.86 100.00%
=== =============== ======
</TABLE>
DISTRIBUTION OF GROSS MARGIN OF INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of Adjustable Rate
Number of Aggregate Principal Contracts by Outstanding
Gross Margin Contracts Balance Outstanding Principal Balance
- ----------------------------- ---------- ------------------- ------------------------
<S> <C> <C> <C>
3.001%-3.500% 1 $ 132,827.41 0.12%
3.501%-4.000% 0 0.00 0%
4.001%-4.500% 11 1,447,585.14 1.30%
4.501%-5.000% 284 34,952,229.22 31.40%
5.001%-5.500% 194 23,234,925.83 20.87%
5.501%-6.000% 171 17,820,562.63 16.01%
6.001%-6.500% 124 13,554,286.39 12.18%
6.501%-7.000% 96 11,390,209.12 10.23%
7.001%-7.500% 56 4,677,343.84 4.20%
7.501%-8.000% 28 2,338,910.64 2.10%
8.001%-8.500% 10 773,161.46 0.69%
8.501%-9.000% 12 760,643.41 0.68%
9.001%-9.500% 1 63,186.73 0.06%
9.501%-10.000% 3 123,419.50 0.11%
10.001%-10.500% 1 46,371.54 0.04%
--- --------------- ------
Total (1) 992 $111,315,662.86 100.00%
=== =============== ======
</TABLE>
(1) Percentages do not add to 100% due to rounding
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
24
<PAGE>
MAXIMUM LOAN RATE OF INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of Adjustable Rate
Number of Aggregate Principal Contracts by Outstanding
Maximum Loan Rate Contracts Balance Outstanding Principal Balance
- ----------------------------- ---------- ------------------- ------------------------
<S> <C> <C> <C>
Less than 14.001% 35 $ 4,963,767.53 4.46%
14.001%-14.500% 38 5,984,282.37 5.38%
14.501%-15.000% 75 9,304,218.76 8.36%
15.001%-15.500% 82 11,921,433.20 10.71%
15.501%-16.000% 148 17,539,255.60 15.76%
16.001%-16.500% 184 19,959,063.23 17.93%
16.501%-17.000% 174 18,933,338.77 17.01%
17.001%-17.500% 111 10,933,756.94 9.82%
17.501%-18.000% 83 7,386,854.37 6.64%
Over 18.000% 62 4,389,692.09 3.94%
--- --------------- ------
Total (1) 992 $111,315,662.86 100.00%
=== =============== ======
</TABLE>
MINIMUM LOAN RATE OF INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of Adjustable Rate
Number of Aggregate Principal Contracts by Outstanding
Minimum Loan Rate Contracts Balance Outstanding Principal Balance
- ----------------------------- ---------- ------------------- ------------------------
<S> <C> <C> <C>
4.501%-5.000% 1 $ 99,000.00 0.09%
5.001%-5.500% 3 304,671.27 0.27%
5.501%-6.000% 3 386,186.42 0.35%
6.001%-6.500% 1 87,254.74 0.08%
6.501%-7.000% 1 288,000.00 0.26%
7.001%-7.500% 8 1,234,693.57 1.11%
7.501%-8.000% 17 2,726,941.68 2.45%
8.001%-8.500% 45 7,109,570.75 6.39%
8.501%-9.000% 95 10,950,415.14 9.84%
9.001%-9.500% 105 13,971,440.47 12.55%
9.501%-10.000% 175 20,853,997.72 18.73%
10.001%-10.500% 195 21,090,849.32 18.95%
10.501%-11.000% 164 16,768,149.91 15.06%
11.001%-11.500% 87 8,374,214.15 7.52%
11.501%-12.000% 54 4,525,491.19 4.07%
12.001%-12.500% 20 1,255,734.97 1.13%
12.501%-13.000% 12 923,128.87 0.83%
13.001%-13.500% 5 319,551.15 0.29%
13.501%-14.000% 1 46,371.54 0.04%
--- --------------- ------
Total (1) 992 $111,315,662.86 100.00%
=== =============== ======
</TABLE>
(1) Percentages do not add to 100% due to rounding
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
25
<PAGE>
CPR PREPAYMENT SENSITIVITIES
FOR HOME IMPROVEMENT CONTRACT CERTIFICATES
<TABLE>
<CAPTION>
7.5% CPR 11.25% CPR 15% CPR 18.75% CPR 22.5% CPR
WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity
---------------- ---------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
To Call
A-1 1.69 - 5/15/01 1.26 - 7/15/00 1.00 - 1/15/00 0.83 - 8/15/99 0.70 - 5/15/99
A - 2 4.88 - 7/15/04 3.75 - 1/15/03 3.00 - 1/15/02 2.48 - 5/15/01 2.09 - 10/15/00
A - 3 9.30 - 12/15/10 7.39 - 5/15/08 6.04 - 2/15/06 5.00 - 7/15/04 4.15 - 5/15/03
M - 1 13.99 - 3/15/12 10.57 - 7/15/08 8.16 - 2/15/06 6.58 - 7/15/04 5.41 - 5/15/03
M - 2 14.24 - 3/15/12 10.58 - 7/15/08 8.16 - 2/15/06 6.58 - 7/15/04 5.41 - 5/15/03
B - 1 8.61 - 8/15/10 6.84 - 2/15/08 5.60 - 2/15/06 4.75 - 7/15/04 4.39 - 5/15/03
B - 2 14.02 - 3/15/12 10.56 - 7/15/08 8.16 - 2/15/06 6.58 - 7/15/04 5.41 - 5/15/03
To Maturity
A - 3 9.30 - 12/15/10 7.39 - 5/15/08 6.05 - 8/15/06 5.04 - 4/15/05 4.21 - 2/15/04
M - 1 14.93 - 9/15/15 12.31 - 7/15/12 10.25 - 6/15/10 8.69 - 7/15/08 7.41 - 12/15/06
M - 2 20.73 - 11/15/22 18.15 - 11/15/22 15.74 - 11/15/22 13.66 - 11/15/22 11.83 - 11/15/22
B - 1 8.61 - 8/15/10 6.84 - 2/15/08 5.61 - 6/15/06 4.79 - 3/15/05 4.52 - 8/15/04
B - 2 16.91 - 11/15/22 14.33 - 11/15/22 12.18 - 11/15/22 10.55 - 11/15/22 9.56 - 11/15/22
</TABLE>
CPR PREPAYMENT SENSITIVITIES
FOR HOME EQUITY CONTRACT CERTIFICATES
<TABLE>
<CAPTION>
50% of Base* 75% of Base* 100% of Base* 125% of Base* 150% of Base*
WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity
---------------- ---------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
To Call
A - 1 ARM 5.93 - 6/15/11 4.01 - 9/15/07 2.95 - 4/15/05 2.28 - 9/15/03 1.81 - 7/15/02
A - 1 1.72 - 5/15/01 1.25 - 5/15/00 1.00 - 10/15/99 0.85 - 6/15/99 0.74 - 4/15/99
A - 2 4.75 - 7/15/04 3.29 - 5/15/02 2.50 - 3/15/01 2.03 - 7/15/00 1.71 - 2/15/00
A - 3 8.52 - 6/15/08 5.53 - 3/15/05 4.00 - 10/15/02 3.08 - 9/15/01 2.53 - 11/15/00
A - 4 10.87 - 3/15/09 7.70 - 01/15/06 5.05 - 4/15/03 3.85 - 12/15/01 3.00 - 1/15/01
A - 5 11.68 - 2/15/10 8.41 - 10/15/06 5.85 - 8/15/04 4.17 - 5/15/02 3.23 - 5/15/01
A - 6 7.03 - 12/15/09 6.26 - 8/15/06 5.51 - 8/15/04 4.56 - 3/15/03 3.71 - 2/15/02
A - 7 IO 2.99 - 12/15/00 2.99 - 12/15/00 2.99 - 12/15/00 2.99 - 12/15/00 2.99 - 12/15/00
M - 1 14.15 - 3/15/12 10.43 - 7/15/08 7.99 - 2/15/06 6.34 - 7/15/04 5.14 - 5/15/03
M - 2 14.24 - 3/15/12 10.58/ - 7/15/08 8.16 - 2/15/06 6.58 - 7/15/04 5.41 - 5/15/03
B - 1 7.99 - 6/15/10 5.61 - 10/15/06 4.68 - 2/15/06 4.40 - 7/15/04 4.17 - 5/15/03
B - 2 14.20 - 3/15/12 10.48 - 7/15/08 8.16 - 2/15/06 6.58 - 7/15/04 5.41 - 5/15/03
To Maturity
M - 1 14.64 - 12/15/13 11.10 - 10/15/10 8.41 - 10/15/07 6.58 - 8/15/05 5.28 - 3/15/04
M - 2 18.55 - 9/15/27 14.94 - 8/15/27 12.00 - 2/15/27 9.62 - 7/15/25 7.83 - 3/15/23
B - 1 7.99 - 6/15/10 5.61 - 10/15/06 4.69 - 7/15/07 4.52 - 4/15/06 4.35 - 1/15/05
B - 2 23.45 - 12/15/27 17.62 - 12/15/27 14.10 - 12/15/27 11.55 - 11/15/27 9.60 - 10/15/27
</TABLE>
_______________
* The Fixed Rate Home Equity Contracts will be priced using 100% of Base
Prepayment Assumption. 100% Base (100% Prepayment Assumption) assumes a
conditional prepayment rate of 5% per annum of the then outstanding principal
balance of the Fixed Rate Home Equity Contracts in the first month of the life
of the Fixed Rate Home Equity Contracts and an additional 1.82% (precisely,
20/11%) per annum in each month thereafter until the twelfth month. Beginning
in twelfth month and in each month thereafter, the conditional prepayment rate
is 25%. The Adjustable Rate Home Equity Contracts will be priced using a
constant prepayment rate of 25% CPR. The Home Improvement Contracts will be
priced using a constant prepayment rate of 15% CPR.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
26
