<PAGE>
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 2, 1997
GREEN TREE FINANCIAL CORPORATION
--------------------------------
(Exact name of registrant as specified in its charter)
Delaware 333-20335 41-1807858
- ------------------------------------------------------------------------------
(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
----------------------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: (612) 293-3400
--------------------------
Not Applicable
- -----------------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
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
<PAGE>
(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 Manufactured Housing
Contract Senior/Subordinate Pass-Through
Certificates, Series 1997-6, 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/ Scott T. Young
----------------------------
Scott T. Young
Vice President and Controller
3
<PAGE>
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit Number
- --------------
<S> <C>
99 External Computational and Descriptive Information
distributed in connection with Manufactured Housing
Contract Senior/Subordinate Pass-Through Certificates,
Series 1997-6, issued by Green Tree Financial
Corporation, as Seller and Servicer.
</TABLE>
<PAGE>
TERM SHEET DATED SEPTEMBER 2, 1997
Green Tree Financial Corporation
Manufactured Housing Contract Senior/Subordinate
Pass-Through Certificates, Series 1997-6
$1,050,000,000 (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
<PAGE>
TERM SHEET DATED SEPTEMBER 2, 1997
Green Tree Financial Corporation
Manufactured Housing Contract Senior/Subordinate
Pass-Through Certificates, Series 1997-6
$1,050,000,000 (Approximate)
Subject to Revision
<TABLE>
<CAPTION>
SELLER/SERVICER: Green Tree Financial Corporation ("Green Tree").
TRUSTEE: Firstar Trust Company, Milwaukee, Wisconsin.
UNDERWRITERS: Lehman Brothers (Lead), Merrill Lynch & Co.,
Salomon Brothers Inc.
<S> <C> <C> <C> <C>
Ratings WAL Exp Final
Amount (S&P/Fitch) @ 150% MHP Maturity
------------ ----------- ---------- ---------
To Call:
A-1 $ 43,833,000 A-1+/ F-1+ 0.37 05/15/98
A-2 $ 70,670,000 AAA / AAA 1.05 03/15/99
A-3 $108,280,000 AAA / AAA 2.00 04/15/00
A-4 $ 96,180,000 AAA / AAA 3.10 06/15/01
A-5 $152,930,000 AAA / AAA 5.00 05/15/04
A-6 $ 37,040,000 AAA / AAA 7.25 10/15/05
A-7 $107,730,000 AAA / AAA 10.25 03/15/10
A-8 $127,837,000 AAA / AAA 10.16 02/15/12
A-9 $ 43,000,000 AAA / AAA 16.77 03/15/15
A-10 $105,000,000 AAA / AAA 8.20 03/15/15
M-1 $ 78,750,000 AA- / AA- 10.33 03/15/15
B-1 $ 42,000,000 BBB / BBB+ 6.69 10/15/07
B-2 $ 36,750,000 A- / A 15.03 03/15/15
To Maturity
A-9 $ 43,000,000 AAA / AAA 18.61 02/15/23
A-10 $105,000,000 AAA / AAA 8.20 10/15/22
M-1 $ 78,750,000 AA- / AA- 10.77 02/15/23
B-2 $ 36,750,000 A- / A 20.74 12/15/27
</TABLE>
CUT-OFF DATE:
September 1, 1997 with respect to all Contracts that have a scheduled payment
due in September 1997, or October 1, 1997 with respect to all Contracts that
have a first scheduled payment due in October 1997 or thereafter.
EXP. PRICING:
September 4, 1997
EXP. SETTLEMENT:
September 30, 1997
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 October 15, 1997.
MONEY MARKET
ELIGIBILITY:
The Class A-1 Certificates are expected to be eligible securities for purchase
by money market funds under Rule 2a-7 under the Investment Company Act of 1940,
as amended.
ERISA:
Class A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class A-7,
Class A-8, Class A-9, and Class A-10 Certificates (together the "Class A
Certificates") are ERISA eligible, subject to the conditions set forth in the
Prospectus Supplement. The Class M-1, B-1 and B-2 Certificates will not be sold
to benefit plans unless such plans deliver a legal opinion to the Trustee,
stating that assets of the Trust are not deemed "plan assets".
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
<PAGE>
SMMEA:
Class A and M-1 Certificates are SMMEA eligible. Class B-1 and B-2 Certificates
are not SMMEA eligible.
TAX STATUS:
The Trust will elect to be treated as a REMIC for federal income tax purposes.
OPTIONAL REDEMPTION:
Less than 10% of the original pool balance outstanding.
STRUCTURE
CREDIT ENHANCEMENT:
Class A: 15.00% subordination (Class M-1, B-1,and B-2) & Residual (Class C)
Class M-1: 7.5% subordination (Class B-1 and B-2) & Residual (Class C)
Class B-1: 3.5% subordination (Class B-2) & Residual (Class C)
Class B-2: Limited Guarantee plus Residual (Class C)
DISTRIBUTIONS:
The Amount Available on each Remittance Date generally includes the sum of (a)
payments on the Contracts due and received during the preceding month, (b)
prepayments and other unscheduled collections received during the preceding
month and (c) all collections of principal on the Contracts received during the
current month up to and including the third business day prior to such
Remittance Date (but in no event later than the 10th day of the month in which
the Remittance Date occurs), minus (d) with respect to all Remittance Dates
other than October 15, 1997, all collections of principal on the Contracts
received during the preceding month up to but excluding the third business day
prior to the preceding Remittance Date (but in no event later than the 10th day
of the prior month). The Amount Available will generally be applied first to the
distribution of interest on Class A, M-1 and B-1 Certificates, then to the
distribution of principal on Class A, M-1 and B-1 Certificates, and finally to
the distribution of interest and principal on Class B-2 Certificates.
INTEREST
(Class A, M-1, B-1):
Interest will be distributable first to each Class of Class A Certificates
concurrently (except for the Class A-9 Certificates which will receive no
interest payments until the principal balance of all Class A Certificates with a
higher numerical designation has been reduced to zero), then to the Class M-1
Certificates and then to the Class B-1 Certificates. Interest will accrue on all
the Certificates on a 30/360 basis with the exception of the Class A-1
Certificates which will accrue interest on an actual/360 basis. Interest on the
outstanding Class A Principal Balance, Class M-1 Adjusted Principal Balance and
Class B-1 Adjusted Principal Balance, as applicable, will accrue from the
Settlement Date, or from the most recent Remittance Date on which interest has
been paid to but excluding the following Remittance Date. Interest accrued and
unpaid on the Class A-9 Certificates will be added as principal to the Class A-9
Principal Balance on each Remittance Date.
Interest shortfall will be carried forward, and will bear interest at the
applicable Remittance Rate, to the extent legally permissible.
After payment of all principal distributable on the Class M-1 Certificates (see
below), any accrued and unpaid Class M-1 Liquidation Loss Interest Amount will
be distributed to the extent available. After payment of all principal
distributable on the Class B-1 Certificates (see below), any accrued and unpaid
Class B-1 Liquidation Loss Interest Amount will be distributed to the extent
available
The Class M-1 Adjusted Principal Balance is the Class M-1 Principal Balance less
any Class M-1 Liquidation Loss Amount. The Class M-1 Principal Balance is the
Original Class M-1 Principal Balance less all amounts previously distributed on
account of principal of the Class M-1 Certificates.
The Class B-1 Adjusted Principal Balance is the Class B-1 Principal Balance less
any Class B-1 Liquidation Loss Amount. The Class B-1 Principal Balance is the
Original Class B-1 Principal Balance less all amounts previously distributed on
account of principal of the Class B-1 Certificates.
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>
PRINCIPAL
(Class A, M-1, B-1):
After the payment of all interest distributable to Class A, Class M-1 and Class
B-1 Certificateholders, principal will be distributed in the following manner.
The Class A Percentage of the Formula Principal Distribution Amount less the
Class A-10 Lockout Distribution Amount (as defined below) will be distributed
sequentially to the Class A-1, A-2, A-3, A-4, A-5, A-6, A-7, A-8, A-9, and A-10
Certificateholders. Additionally, on each Remittance Date, the Class A-8
Certificateholders will be entitled to receive an amount equal to the product of
the (i) the product of (a) the Class A-9 Certificate Balance and (b) the Class
A-9 Accrual Rate and (ii) the number of days from the Settlement Date, or from
the most recent Remittance Date on which interest has been paid to but excluding
the following Remittance Date divided by 360, to the extent such amount does not
exceed the Class A-8 Principal Balance after giving effect to payments made to
the Class A-8 Certificates from the Class A Percentage of the Formula Principal
Distribution Amount.
The Class A-10 Certificateholders are entitled to receive payments of the Class
A-10 Lockout Distribution Amount specified below, provided, that if on any
Remittance Date the Class A-9 Certificate Principal Balance is zero, the
Certificateholders of the Class A-10 Certificates will be entitled to receive
the Class A Percentage of the Formula Principal Distribution Amount less the
amount, if any, distributed in payment of principal on the Class A-9
Certificates on such Remittance Date.
The "Class A-10 Lockout Distribution Amount" for any Remittance Date will be the
product of (i) the applicable Class A-10 Lockout Percentage for such Remittance
Date and (ii) the Class A-10 Lockout Pro Rata Distribution Amount for such
Remittance Date.
The "Class A-10 Lockout Percentage" for each Remittance Date shall be as
follows:
Remittance Dates Lockout Percentage
October 1997 - September 2000 0%
October 2000 - September 2002 45%
October 2002 - September 2003 80%
October 2003 - September 2004 100%
October 2004 and thereafter 300%
The "Class A-10 Lockout Pro Rata Distribution Amount" for any Remittance Date
will be an amount equal to the lesser of (1) the product of (x) a fraction, the
numerator of which is the Certificate Principal Balance of the Class A-10
Certificates immediately prior to such Remittance Date and the denominator of
which is the aggregate Certificate Balance of the Class A-1, Class A-2, Class A-
3, Class A-4, Class A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class A-10,
(y) the Class A Percentage of the Formula Principal Distribution Amount, and (z)
the Class A-10 Lockout Percentage and (2) the Class A-10 Principal Balance
immediately preceding such Remittance Date.
The "Class A Percentage" for any Remittance Date will equal a fraction,
expressed as a percentage, the numerator of which is the Class A Principal
Balance as of such Remittance Date, and the denominator of which is the sum of:
(i) the Class A Principal Balance and (ii) if the Class M-1 Distribution Test is
satisfied on such Remittance Date, the Class M-1 Principal Balance, otherwise
zero, and (iii) if the Class B Distribution Test is satisfied on such Remittance
Date, the Class B Principal Balance, otherwise zero, all as of such Remittance
Date.
The Class M-1 Certificateholders will be entitled to receive the Class M-1
Percentage of the Formula Principal Distribution Amount on each Remittance Date
on which (i) the Class A Principal Balance has been reduced to zero or (ii) the
Class M-1 Distribution Test is satisfied.
The "Class M-1 Percentage" for any Remittance Date will equal (a) zero, if the
Class A Principal Balance has not yet been reduced to zero and the Class M-1
Distribution Test is not
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>
satisfied or (b) a fraction, expressed as a percentage, the numerator of which
is the Class M-1 Principal Balance as of such Remittance Date, and the
denominator of which is the sum of: (i) the Class A Principal Balance, if any,
and (ii) the Class M-1 Principal Balance and (iii) if the Class B Distribution
Test is satisfied on such Remittance Date, the Class B Principal Balance,
otherwise zero, all as of such Remittance Date.
The Class M-1 Distribution Test will be satisfied if each of the following tests
is satisfied: (i) the Remittance Date occurs in or after October 2001; (ii) the
Average Sixty-Day Delinquency Ratio Test (as defined in the Agreement) as of
such Remittance Date must not exceed 3.5%; (iii) the Average Thirty-Day
Delinquency Ratio Test (as defined in the Agreement) as of such Remittance Date
must not exceed 5.5%; (iv) Cumulative Realized Losses (as defined in the
Agreement) as of such Remittance Date must not exceed a certain specified
percentage of the Cut-off Date Pool Principal Balance, depending on the year in
which such Remittance Date occurs; (v) the Current Realized Loss Ratio (as
defined in the Agreement) as of such Remittance Date must not exceed 2.25%; and
(vi) the sum of the Class M-1 Principal Balance and the Class B Principal
Balance divided by the Pool Scheduled Principal Balance as of the immediately
preceding Remittance Date must be equal to or greater than 22.5%.
The Class B-1 Certificateholders will be entitled to receive Class B Percentage
of the Formula Principal Distribution Amount on each Remittance Date on which
(i) the Class A Principal Balance and Class M-1 Principal Balance have been
reduced to zero or (ii) the Class B Distribution Test is satisfied.
The Class B Percentage for any Remittance Date will equal (a) zero, if the Class
A Principal Balance and the Class M-1 Principal Balance have not yet been
reduced to zero and the Class B Distribution Test is not satisfied or (b) a
fraction, expressed as a percentage, the numerator of which is the Class B
Principal Balance as of such Remittance Date, and the denominator of which is
the sum of: (i) the Class A Principal Balance, if any, and (ii) the Class M-1
Principal Balance, if any, and (iii) the Class B Principal Balance, all as of
such Remittance Date.
The Class B Distribution Test will be satisfied if each of the following tests
is satisfied: (i) the Remittance Date occurs in or after October 2001; (ii) the
Average Sixty-Day Delinquency Ratio Test (as defined in the Agreement) as of
such Remittance Date must not exceed 3.5%; (iii) the Average Thirty-Day
Delinquency Ratio Test (as defined in the Agreement) as of such Remittance Date
must not exceed 5.5%; (iv) the Cumulative Realized Losses (as defined in the
Agreement) as of such Remittance Date must not exceed a certain specified
percentage of the Cut-off Date Pool Principal Balance, depending on the year in
which such Remittance Date occurs; (v) the Current Realized Loss Ratio (as
defined in the Agreement) as of such Remittance Date must not exceed 2.25%; (vi)
the Class B Principal Balance divided by the Pool Scheduled Principal Balance as
of the immediately preceding Remittance Date must be equal to or greater than
11.25%; and (vii) the Class B Principal Balance must not be less than
$21,000,000.
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>
INTEREST
(Class B-2):
Interest on the outstanding Class B-2 Principal Balance will accrue from the
Settlement Date, or from most recent Remittance Date on which interest has been
paid to but excluding the following Remittance Date.
To the extent of (i) Amount Available on a Remittance Date after payment of all
interest and principal then payable on the Class A, Class M-1 and Class B-1
Certificates, and (ii) the Guarantee Payment, if any, for such date, interest
will be paid to the Class B-2 Certificateholders at the Class B-2 Remittance
Rate on the Class B-2 Principal Balance.
The Class B-2 Principal Balance is the Original Class B-2 Principal Balance less
all amounts previously distributed on account of principal of the Class B-2
Certificates.
Interest shortfall will be carried forward, and will bear interest at the Class
B-2 Remittance Rate to the extent legally permissible.
PRINCIPAL
(Class B-2):
The Class B-2 Certificateholders will be entitled to receive principal on each
Remittance Date on which: (i) the Class B-1 Principal Balance has been reduced
to zero and (ii) the Class B Distribution Test is satisfied, provided however
that if the Class A, Class M-1 and Class B-1 Principal Balances have been
reduced to zero, the Class B-2 Certificateholders will nevertheless be entitled
to receive principal.
The Company will be obligated under the Limited Guarantee to pay the amount, if
any, by which the Class B Percentage of the Formula Principal Distribution
Amount for the Remittance Date exceeds the Class B-2 Remaining Amount Available
after payment of interest on the Class B-2 Certificates. On each Remittance
Date, Class B-2 Certificateholders will be entitled to receive, pursuant to the
Limited Guarantee, any Class B-2 Liquidation Loss Amount for such Remittance
Date.
LOSSES ON LIQUIDATED
CONTRACTS:
If Net Liquidation Proceeds from Liquidated Contracts in the respective
collection period are less than the Scheduled Principal Balance of such
Liquidated Contract, the shortfall amount will be absorbed by the Class C
Certificateholders, then the Guarantee Fee, otherwise payable to Green Tree, if
any, then the Monthly Servicing Fee (as long as Green Tree is the Servicer),
then the Class B-2 Certificateholders, then the Class B-1 Certificateholders,
and then the Class M-1 Certificateholders.
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>
CONTRACTS:
The information concerning the Initial Contracts presented below is based on a
pool originated through August 25, 1997. Green Tree intends to acquire and sell
additional Contracts, which are sufficient to support the balance of
Certificates sold, to the Trust by the Closing Date. Although the
characteristics of the final pool of Contracts will differ from the
characteristics of the Initial Contracts shown below, Green Tree does not expect
that the characteristics of the additional Contracts sold to the Trust will vary
materially from the information concerning the Initial Contracts herein.
THE INITIAL CONTRACT POOL
<TABLE>
<S> <C>
Number of MHCs in pool: 13,852
Wgt. Avg. Contract Rate: 9.468%
Range of Rates: 4.24% - 18.25%
Wgt. Avg. Orig. Maturity: 308 mos.
Range of Orig. Maturity: 8-360 mos.
Wgt. Avg. Rem. Maturity: 307 mos.
Range of Rem. Maturity: 6-360 mos.
Avg. Rem Princ. Balance: $42,136.80
Wgt. Avg. LTV: 86.751%
New/Used: 81%/19%
Single/Double: 31%/69%
Park/Private: 21%/79%
</TABLE>
GEOGRAPHIC DISTRIBUTION OF INITIAL CONTRACT OBLIGORS
<TABLE>
<CAPTION>
% of Contract % of Contract Pool
Number Pool by Number Aggregate Principal by Outstanding
State of Contracts of Contracts Balance Outstanding Principal Balance
- ----- ------------ -------------- ------------------- ------------------
<S> <C> <C> <C> <C>
NC 1,108 8.00% $ 51,236,854.18 8.79%
MI 842 6.08 44,311,065.20 7.59
CA 1,288 9.30 42,568,878.74 7.29
FL 752 5.43 36,143,222.12 6.19
TX 967 6.98 35,738,174.07 6.12
Other States (1) 8,895 64.21 $373,680,691.12 64.02
------ ------ --------------- ------
Total (2) 13,852 100.00% $583,678,885.43 100.00%
====== ====== =============== ======
</TABLE>
- --------------------------
(1) Other States category includes those States which constitute less than
5.00% of the outstanding balance of the Initial Pool of Contracts.
(2) 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.
7
<PAGE>
YEARS OF ORIGINATION OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% of Contract Pool
Number of Aggregate Principal by Outstanding
Year of Origination (1) Contracts Balance Outstanding Principal Balance
- ----------------------- --------- ------------------- ------------------
<S> <C> <C> <C>
1978 5 $ 32,725.97 0.01%
1979 2 6,931.65 *
1982 1 15,283.98 -
1983 4 52,626.12 0.01
1984 9 84,209.73 0.01
1985 5 39,869.67 0.01
1986 30 511,798.31 0.09
1987 32 555,026.18 0.10
1988 49 1,014,012.90 0.17
1989 137 4,115,157.92 0.71
1990 167 4,975,379.14 0.85
1991 125 3,594,819.34 0.62
1992 242 8,056,764.75 1.38
1993 181 5,974,379.39 1.02
1994 191 6,069,256.46 1.04
1995 176 5,707,122.56 0.98
1996 144 7,075,729.44 1.21
1997 12,352 535,797,791.92 91.79
------ --------------- ------
Total (2) 13,852 $583,678,885.43 100.00%
====== =============== ======
</TABLE>
- -------------------
* Indicates an amount greater than zero but less than 0.005% of the aggregate
principal balance.
(1) The Contracts shown in the above table with earlier years of origination
primarily represent Contracts originated by the Company and subsequently
refinanced through the Company. The Company retains the first origination
dates on its records with respect to such refinanced Contracts.
(2) Percentages do not add to 100% due to rounding.
DISTRIBUTION OF ORIGINAL AMOUNTS OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% of Contract Pool
Original Contract Number of Aggregate Principal by Outstanding
Amount (in Dollars)(1) Contracts Balance Outstanding Principal Balance
- ---------------------- --------- ------------------- ------------------
<S> <C> <C> <C>
Less than $10,000.00 599 $ 4,443,176.42 0.76%
$10,000.00 - $19,999.99 2,043 31,141,405.21 5.34
$20,000.00- $29,999.99 2,865 71,664,621.28 12.28
$30,000.00 - $39,999.99 2,351 81,062,550.40 13.88
$40,000.00 - $49,999.99 1,638 73,406,566.47 12.58
$50,000.00 - $59,999.99 1,241 67,910,095.26 11.63
$60,000.00 - $69,999.99 1,009 65,422,289.27 11.21
$70,000.00 - $79,999.99 774 57,640,546.59 9.88
$80,000.00 - $89,999.99 517 43,549,410.61 7.46
$90,000.00 - $99,999.99 383 43,639,409.80 7.48
$100,000.00 - $119,999.99 279 36,264,436.33 6.21
$120,000.00 - $139,999.99 110 13,997,498.61 2.40
$140,000.00 - $159,999.99 28 4,093,687.12 0.70
$160,000.00 - $179,999.99 10 1,675,208.56 0.29
$180,000.00 - $199,999.99 4 759,790.94 0.13
$250,000.00 - $299,999.99 1 258,225.90 0.04
------ --------------- ------
Total 13,852 $583,678,885.43 100.00%
====== =============== ======
</TABLE>
- ----------------------------
(1) The largest original Contract amount is $258,225.90, which represents 0.04%
of the Initial Pool Principal Balance.
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 you Lehman Brothers account
executive for another copy.
8
<PAGE>
DISTRIBUTION OF ORIGINAL LOAN-TO-VALUE RATIOS
<TABLE>
<CAPTION>
% of Contract Pool
Number of Aggregate Principal by Outstanding
Loan-to-Value Ratio(1) Contracts Balance Outstanding Principal Balance
- ---------------------- --------- ------------------- ------------------
<S> <C> <C> <C>
Less than 60.01% 620 $ 22,785,221.76 3.90%
60.01% - 65.00% 230 10,569,143.24 1.81
65.01% - 70.00% 273 13,940,004.67 2.39
70.01% - 75.00% 453 22,132,042.50 3.79
75.01% - 80.00% 1,077 45,043,797.21 7.72
80.01% - 85.00% 1,511 71,350,041.14 12.22
85.01% - 90.00% 4,128 180,886,182.61 31.00
90.01% - 95.00% 4,268 175,688,832.53 30.10
Over 95.00% 1,292 41,283,619.77 7.07
------ --------------- ------
Total 13,852 $583,678,885.43 100.00%
====== =============== ======
</TABLE>
- --------------------
(1) Rounded to the nearest 1%. The method of calculating loan-to-value ratios
is described in the Prospectus.
CONTRACT RATES
<TABLE>
<CAPTION>
% of Contract Pool
Range of Contracts by Number of Aggregate Principal by Outstanding
Contract Rate Contracts Balance Outstanding Principal Balance
- --------------------- --------- ------------------- ------------------
<S> <C> <C> <C>
Less than 8.001% 1,881 $134,617,940.42 23.06%
8.001% - 9.000% 2,311 130,447,362.34 22.34
9.001% - 10.000% 2,470 112,923,250.87 19.35
10.001% - 11.000% 2,574 95,991,123.57 16.45
11.001% - 12.000% 2,511 71,272,187.37 12.21
12.001% - 13.000% 1,042 22,066,220.90 3.78
13.001% - 14.000% 852 14,096,311.76 2.42
14.001% - 15.000% 51 731,630.19 0.13
Over 15.000% 160 1,532,858.01 0.26
------ --------------- ------
Total 13,852 $583,678,885.43 100.00%
====== =============== ======
</TABLE>
REMAINING MONTHS TO MATURITY
<TABLE>
<CAPTION>
% of Contract Pool
Number of Aggregate Principal by Outstanding
Months Remaining Contracts Balance Outstanding Principal Balance
- ---------------- --------- ------------------- ------------------
<S> <C> <C> <C>
Less than 31 40 $ 180,341.44 0.03%
31 - 60 331 3,034,942.72 0.52
61 - 90 478 6,831,754.04 1.17
91 - 120 885 14,820,844.37 2.54
121 - 150 410 9,531,403.56 1.63
151 - 180 1,934 46,448,405.13 7.96
181 - 240 2,531 84,216,447.51 14.43
241 - 300 1,125 42,807,194.27 7.34
301 - 360 6,118 375,807,552.39 64.38
------ --------------- ------
Total 13,852 $583,678,885.43 100.00%
====== =============== ======
</TABLE>
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>
MHP PREPAYMENT SENSITIVITIES/(1)/
<TABLE>
<CAPTION>
75% MHP 100% MHP 125% MHP 150% MHP
To Call WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity
<S> <C> <C> <C> <C>
A-1 0.55 / 09/98 0.47 / 07/98 0.41 / 06/98 0.37 / 05/98
A-2 1.61 / 12/99 1.36 / 08/99 1.18 / 05/99 1.05 / 03/99
A-3 3.13 / 11/01 2.61 / 02/01 2.26 / 08/00 2.00 / 04/00
A-4 5.03 / 10/03 4.16 / 09/02 3.55 / 12/01 3.10 / 06/01
A-5 8.74 / 08/09 7.02 / 08/07 5.81 / 10/05 5.00 / 05/04
A-6 12.57 / 01/11 10.58 / 01/09 8.84 / 05/07 7.25 / 10/05
A-7 15.50 / 09/15 13.48 / 07/13 11.76 / 09/11 10.25 / 03/10
A-8 11.14 / 10/15 10.98 / 06/14 10.61 / 04/13 10.16 / 02/12
A-9 21.72 / 01/21 19.91 / 11/18 18.25 / 11/16 16.77 / 03/15
A-10 9.52 / 01/21 8.99 / 11/18 8.55 / 11/16 8.20 / 03/15
M-1 14.77 / 01/21 13.02 / 11/18 11.56 / 11/16 10.33 / 03/15
B-1 10.23 / 05/12 8.77 / 08/10 7.61 / 01/09 6.69 / 10/07
B-2 20.54 / 01/21 18.46 / 11/18 16.58 / 11/16 15.03 / 03/15
To Maturity
A-9 22.84 / 05/26 21.38 / 08/25 19.97 / 07/24 18.61 / 02/23
A-10 9.52 / 03/26 8.99 / 05/25 8.56 / 04/24 8.20 / 10/22
M-1 15.12 / 05/26 13.44 / 08/25 12.00 / 07/24 10.77 / 02/23
B-2 23.99 / 12/27 22.93 / 12/27 21.82 / 12/27 20.74 / 12/27
175% MHP 250% MHP 300% MHP 350% MHP
WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity
To Call
- -------------
A-1 0.34 / 05/98 0.28 / 03/98 0.25 / 02/98 0.23 / 02/98
A-2 0.95 / 01/99 0.73 / 10/98 0.64 / 08/98 0.57 / 07/98
A-3 1.80 / 01/00 1.40 / 07/99 1.22 / 04/99 1.08 / 02/99
A-4 2.76 / 01/01 2.12 / 03/00 1.85 / 11/99 1.64 / 08/99
A-5 4.31 / 05/03 3.11 / 08/01 2.67 / 12/00 2.35 / 07/00
A-6 6.08 / 04/04 4.06 / 02/02 3.42 / 05/01 2.96 / 11/00
A-7 8.67 / 10/08 5.39 / 06/04 4.28 / 12/02 3.59 / 12/01
A-8 9.61 / 02/11 7.66 / 07/08 6.22 / 01/07 4.98 / 11/04
A-9 15.37 / 08/13 12.14 / 02/10 10.46 / 05/08 9.14 / 01/07
A-10 7.87 / 08/13 7.12 / 02/10 6.74 / 05/08 6.42 / 01/07
M-1 9.64 / 08/13 8.14 / 02/10 7.41 / 05/08 6.85 / 01/07
B-1 6.38 / 02/07 5.75 / 09/05 5.48 / 02/05 5.27 / 08/04
B-2 13.76 / 08/13 11.02 / 02/10 9.68 / 05/08 8.66 / 01/07
To Maturity
A-9 17.30 / 08/21 14.02 / 01/17 12.29 / 09/14 10.92 / 08/12
A-10 7.88 / 05/21 7.14 / 10/16 6.77 / 06/14 6.48 / 06/12
M-1 10.10 / 08/21 8.61 / 01/17 7.90 / 09/14 7.36 / 08/12
B-2 19.76 / 12/27 16.92 / 12/27 15.15 / 12/27 13.60 / 12/27
</TABLE>
(1) The following are the assumed characteristics of Subsequent Contracts as of
the Cut-off Date:
<TABLE>
<CAPTION>
Aggregate Principal Wtd Avg Wtd Avg Wtd Avg
Months Remaining Balance Outstanding Original Term Remaining Term Contract Rate
- ---------------- ------------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
0 to 120 $ 32,706,027.25 103 103 11.677%
121 to 180 72,197,328.29 175 175 11.266%
181 to 240 106,242,306.47 236 236 10.764%
241 to 300 51,851,904.52 298 298 10.511%
301 to 360 203,323,548.04 360 360 9.570%
--------------- --- --- ------
Total $466,321,114.57 278 278 10.357%
===============
</TABLE>
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
