<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): July 24, 1997
GREEN TREE FINANCIAL CORPORATION
--------------------------------
(Exact name of registrant as specified in its charter)
Delaware 01-08916 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)
1
<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 Certificates for
Manufactured Housing Contract Senior/Subordinate
Pass-Through Certificates, Series 1997-5, 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/ Joel H. Gottesman
-----------------------------------
Joel H. Gottesman
Senior Vice President, General Counsel and
Secretary
3
<PAGE>
INDEX TO EXHIBITS
Exhibit Number Page
- -------------- ----
99 External Computational and Descriptive Information
distributed in connection with Certificates for
Manufactured Housing Contract Senior/Subordinate
Pass-Through Certificates, Series 1997-5, issued
by Green Tree Financial Corporation, as Seller and
Servicer.
4
<PAGE>
TERM SHEET DATED JULY 23, 1997
Green Tree Financial Corporation
Manufactured Housing Contract Senior/Subordinate
Pass-Through Certificates, Series 1997-5
$550,000,000 (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 JULY 23, 1997
Green Tree Financial Corporation
Manufactured Housing Contract Senior/Subordinate
Pass-Through Certificates, Series 1997-5
$550,000,000 (Approximate)
Subject to Revision
<TABLE>
<CAPTION>
<S> <C>
SELLER/SERVICER: Green Tree Financial Corporation ("Green Tree").
TRUSTEE: Firstar Trust Company, Milwaukee, Wisconsin.
UNDERWRITERS: Lehman Brothers (Lead), Merrill Lynch & Co., Salomon Brothers Inc
</TABLE>
<TABLE>
<CAPTION>
Ratings WAL Exp Final
Amount (Moody's/Fitch) @ 150% MHP Maturity
------ --------------- ---------- ---------
To Call:
<S> <C> <C> <C> <C>
A-1 $71,832,000 Aaa / AAA 0.90 03/15/99
A-2 $39,852,000 Aaa / AAA 2.05 01/15/00
A-3 $60,675,000 Aaa / AAA 3.07 04/15/01
A-4 $94,384,000 Aaa / AAA 5.15 05/15/04
A-5 $22,426,000 Aaa / AAA 7.25 04/15/05
A-6 $94,855,000 Aaa / AAA 10.20 10/15/10
A-7 $83,476,000 Aaa / AAA 16.22 01/15/15
M-1 $41,250,000 Aa3 / AA- 10.33 01/15/15
B-1 $22,000,000 Baa1 / BBB+ 6.68 07/15/07
B-2 $19,250,000 Baa1 / A 15.02 01/15/15
To Maturity
A-7 $83,476,000 Aaa / AAA 17.68 11/15/22
M-1 $41,250,000 Aa3 / AA- 10.76 11/15/22
B-2 $19,250,000 Baa1 / A 20.71 10/15/27
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
CUT-OFF DATE: July 1, 1997 (or the date of origination, if later)
EXP. PRICING: July 24, 1997
EXP. SETTLEMENT: July 31, 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 August 15, 1997.
ERISA: 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".
</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.
2
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
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.
</TABLE>
STRUCTURE
<TABLE>
<CAPTION>
<S> <C>
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 August
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, then to the Class M-1 Certificates and then to the Class B-1
Certificates. 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 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.
</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.
3
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
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.
Class A Percentage will be distributed
sequentially to the Class A-1, A-2, A-3, A-4, A-5,
A-6, and A-7 Certificateholders.
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 principal 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 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 (ii) 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 August
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 principal 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 August 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
</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.
4
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
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
$11,000,000.
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.
</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.
5
<PAGE>
<TABLE>
<S> <C>
CONTRACTS: The information concerning the Initial Contracts presented below is based on a
pool originated through July 11, 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.
</TABLE>
<TABLE>
THE INITIAL CONTRACT POOL
<S> <C>
Number of MHCs in pool: 8,102
Wgt. Avg. Contract Rate: 9.634%
Range of Rates: 4.00% - 16.75%
Wgt. Avg. Orig. Maturity: 300 mos.
Range of Orig. Maturity: 24-360 mos.
Wgt. Avg. Rem. Maturity: 299 mos.
Range of Rem. Maturity: 24-360 mos.
Avg. Rem Princ. Balance: $40,197.69
Wgt. Avg. LTV: 88.876%
New/Used: 69%/31%
Single/Double: 31%/69%
Park/Private: 25%/75%
</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 749 9.24% $ 31,887,197.41 9.79%
TX 614 7.58 23,693,009.54 7.27
MI 495 6.11 22,508,779.42 6.91
FL 424 5.23 18,283,798.58 5.61
Other States/(1)/ 5,820 71.83 229,308,930.73 70.41
----- ------ --------------- ------
Total (2) 8,102 100.00% $325,681,715.68 100.00%
===== ====== =============== ======
</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 Lehman Brothers account executive
for another copy.
6
<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>
1983 1 $ 23,603.60 0.01%
1984 6 53,785.68 0.02
1985 18 209,457.04 0.06
1986 6 51,583.73 0.02
1987 1 8,588.44 *
1988 1 4,973.82 *
1989 9 170,023.04 0.05
1990 8 117,393.38 0.04
1991 4 68,088.57 0.02
1992 9 196,416.92 0.06
1993 3 40,925.63 0.01
1994 41 1,167,456.41 0.36
1995 53 1,713,963.51 0.53
1996 610 24,393,150.36 7.49
1997 7,332 297,462,305.55 91.34
----- --------------- ------
Total (2) 8,102 $325,681,715.68 100.00%
===== =============== ======
</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 $25,000.01 2,207 $ 37,159,939.98 11.41%
$25,000.01 - $50,000.00 3,674 129,484,363.08 39.76
$50,000.01- $75,000.00 1,487 89,744,903.96 27.56
$75,000.01 - $100,000.00 543 46,424,259.88 14.25
$100,000.01 - $125,000.00 144 15,998,412.86 4.91
$125,000.01 - $150,000.00 32 4,297,175.00 1.32
$150,000.01 - $175,000.00 13 2,080,911.51 0.64
$175,000.01 - $200,000.00 1 182,080.76 0.06
$300,000.01 - $325,000.00 1 309,668.65 0.10
----- --------------- ------
Total 8,102 $325,681,715.68 100.00%
===== =============== ======
</TABLE>
(1) The largest original Contract amount is $309,668.65, which represents 0.10%
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 your Lehman Brothers account
executive for another copy.
7
<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 31% 36 $ 1,452,256.42 0.45%
31% - 60% 250 9,870,883.20 3.03
61% - 65% 100 4,394,931.88 1.35
66% - 70% 132 5,976,077.20 1.83
71% - 75% 214 9,999,766.78 3.07
76% - 80% 535 21,515,763.36 6.61
81% - 85% 722 31,941,208.70 9.81
86% - 90% 2,031 86,604,134.48 26.59
91% - 95% 2,085 84,224,045.54 25.86
96% - 100% 1,997 69,702,648.12 21.40
----- --------------- ------
Total 8,102 $325,681,715.68 100.00%
===== =============== ======
</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>
0.0000% - 8.000% 721 $ 53,461,015.58 16.42%
8.001% - 9.000% 1,270 69,202,137.61 21.25
9.001% - 10.000% 2,179 87,971,240.44 27.01
10.001% - 11.000% 1,471 55,154,387.26 16.94
11.001% - 12.000% 1,416 41,088,635.36 12.62
12.001% - 13.000% 526 10,689,048.44 3.28
13.001% - 14.000% 392 6,704,950.70 2.06
14.001% - 15.000% 26 397,374.98 0.12
Over 15.000% 101 1,012,925.31 0.31
----- --------------- ------
Total 8,102 $325,681,715.68 100.00%
===== =============== ======
</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 37 15 $ 108,497.14 0.03%
37 - 72 193 1,910,704.60 0.59
73 - 120 800 13,020,860.03 4.00
121 - 180 1,446 36,474,495.47 11.20
181 - 240 1,674 56,989,997.07 17.50
241 - 300 726 27,391,825.33 8.41
301 - 360 3,248 189,785,336.04 58.27
----- --------------- ------
Total 8,102 $325,681,715.68 100.00%
===== =============== ======
</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.
8
<PAGE>
MHP PREPAYMENT SENSITIVITIES/(1)/
<TABLE>
<CAPTION>
75% MHP 100% MHP 125% MHP 150% MHP
WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity
To Call
<S> <C> <C> <C> <C>
A-1 1.38 / 02/00 1.17 / 09/99 1.02 / 06/99 0.90 / 03/99
A-2 3.20 / 06/01 2.68 / 10/00 2.32 / 05/00 2.05 / 01/00
A-3 4.85 / 06/03 4.06 / 07/02 3.49 / 10/01 3.07 / 04/01
A-4 8.02 / 01/08 6.78 / 06/06 5.86 / 04/05 5.15 / 05/04
A-5 11.12 / 05/09 9.48 / 08/07 8.21 / 04/06 7.25 / 04/05
A-6 14.91 / 02/16 13.03 / 02/14 11.48 / 04/12 10.20 / 10/10
A-7 21.88 / 10/20 19.79 / 09/18 17.88 / 09/16 16.22 / 01/15
M-1 14.76 / 10/20 13.02 / 09/18 11.55 / 09/16 10.33 / 01/15
B-1 10.24 / 03/12 8.77 / 06/10 7.61 / 11/08 6.68 / 07/07
B-2 20.49 / 10/20 18.46 / 09/18 16.58 / 09/16 15.02 / 01/15
To Maturity
A-7 23.06 / 03/26 21.18 / 05/25 19.36 / 04/24 17.68 / 11/22
M-1 15.11 / 03/26 13.43 / 05/25 11.99 / 04/24 10.76 / 11/22
B-2 23.97 / 10/27 22.92 / 10/27 21.80 / 10/27 20.71 / 10/27
</TABLE>
<TABLE>
<CAPTION>
175% MHP 250% MHP 300% MHP 350% MHP
WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity
To Call
<S> <C> <C> <C> <C>
A-1 0.81 / 01/99 0.63 / 09/98 0.55 / 08/98 0.49 / 06/98
A-2 1.85 / 10/99 1.43 / 04/99 1.25 / 01/99 1.10 / 11/98
A-3 2.75 / 11/00 2.11 / 02/00 1.84 / 10/99 1.63 / 07/99
A-4 4.49 / 07/03 3.28 / 09/01 2.82 / 02/01 2.49 / 08/00
A-5 6.35 / 05/04 4.43 / 05/02 3.70 / 06/01 3.24 / 12/00
A-6 9.02 / 06/09 6.48 / 03/06 5.30 / 09/04 4.43 / 07/03
A-7 14.69 / 06/13 11.24 / 12/09 9.53 / 03/08 8.14 / 10/06
M-1 9.64 / 06/13 8.13 / 12/09 7.41 / 03/08 6.83 / 10/06
B-1 6.37 / 12/06 5.75 / 07/05 5.48 / 12/04 5.27 / 06/04
B-2 13.78 / 06/13 11.02 / 12/09 9.68 / 03/08 8.61 / 10/06
To Maturity
A-7 16.12 / 05/21 12.39 / 11/16 10.53 / 06/14 9.03 / 06/12
M-1 10.09 / 05/21 8.60 / 11/16 7.90 / 06/14 7.35 / 06/12
B-2 19.81 / 10/27 16.89 / 10/27 15.13 / 10/27 13.59 / 10/27
</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 $ 15,916,524.05 98 98 11.871%
121 to 180 30,698,363.84 175 175 11.427%
181 to 240 45,077,619.00 237 237 10.579%
241 to 300 26,713,575.48 298 298 10.648%
301 to 360 105,912,201.94 360 360 9.608%
--------------- --- --- ------
Total $224,318,284.31 284 284 10.336%
===============
</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
