<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): March 24, 1998
GREEN TREE FINANCIAL CORPORATION
--------------------------------
(Exact name of registrant as specified in its charter)
333-32669
Delaware 333-46457 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
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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.
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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
1998-B, 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
Senior Vice President and Controller
3
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INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit Number Page
- -------------- ----
<S> <C>
99 External Computational and Descriptive Information 5
distributed in connection with Certificates for Home
Improvement and Home Equity Loans, Series 1998-B,
issued by Green Tree Financial Corporation, as
Seller and Servicer.
</TABLE>
4
<PAGE>
TERM SHEET DATED MARCH 24, 1998
GREEN TREE FINANCIAL CORPORATION
CERTIFICATES FOR HOME IMPROVEMENT AND HOME EQUITY LOANS, SERIES 1998-B
$550,000,000 (APPROXIMATE)
Subject to Revision
SELLER/SERVICER: Green Tree Financial Corporation ("Green Tree")
TRUSTEE: First Trust National Association
UNDERWRITERS: Lehman Brothers (Lead), Credit Suisse First Boston(Co), and
Salomon Smith Barney (Co)
<TABLE>
<CAPTION>
Ratings WAL at Exp Final
Amount (S&P/Fitch) 100% Prepayment Model(1) Maturity
---------------- ---------------- ------------------------ ----------------
<S> <C> <C> <C> <C>
To Call:
HI: A-1 $ 41,250,000 AAA / AAA 0.75 09/15/99
HI: A-2 $ 28,000,000 AAA / AAA 2.00 11/15/00
HI: A-3 $ 14,850,000 AAA / AAA 3.00 09/15/01
HI: A-4 $ 35,900,000 AAA / AAA 5.03 06/15/05
HI: M-1 $ 12,000,000 AA / AA 7.66 12/15/05
HI: M-2 $ 7,500,000 A / A 7.71 12/15/05
HI: B-1 $ 7,125,000 BBB / BBB 4.71 05/15/05
HI: B-2 $ 3,375,000 BBB- / BBB 7.66 12/15/05
To Maturity
HI: M-1 $ 12,000,000 AA / AA 8.57 08/15/08
HI: M-2 $ 7,500,000 A / A 13.41 03/15/23
HI: B-1 $ 7,125,000 BBB / BBB 4.71 05/15/05
HI: B-2 $ 3,375,000 BBB- / BBB 10.34 03/15/23
HI BALANCE $150,000,000
------------
<CAPTION>
Ratings WAL at Exp Final
Amount (S&P/Fitch) 100% Prepayment Model(1) Maturity
--------------- --------------- ------------------------ ---------------
<S> <C> <C> <C> <C>
To Call:
HE: A-1A ARM $ 15,000,000 AAA / AAA 2.02 08/15/00
HE: A-1B ARM $115,000,000 AAA / AAA 2.56 02/15/05
HE: A-1 $ 95,000,000 AAA / AAA 1.00 01/15/00
HE: A-2 $ 21,000,000 AAA / AAA 2.02 06/15/00
HE: A-3 $ 55,000,000 AAA / AAA 3.00 04/15/02
HE: A-4 $ 18,000,000 AAA / AAA 4.86 03/15/04
HE A-5 $ 16,000,000 AAA / AAA 4.57 03/15/04
HE A-6 IO (2) AAA / AAA 2.96 03/15/01
HE: M-1 $ 24,000,000 AA / AA 7.50 12/15/05
HE: M-2 $ 14,000,000 A / A+ 7.71 12/15/05
HE: B-1 $ 16,000,000 BBB / BBB 4.24 02/15/04
HE: B-2 $ 11,000,000 BBB- / BBB 7.49 12/15/05
To Maturity
HE: M-1 $ 24,000,000 AA / AA 7.85 06/15/07
HE: M-2 $ 14,000,000 A / A+ 11.42 08/15/25
HE: B-1 $ 16,000,000 BBB / BBB 4.24 02/15/04
HE: B-2 $ 11,000,000 BBB- / BBB 11.24 03/15/28
HE BALANCE $400,000,000
------------
</TABLE>
_______________
(1) The Sub Pool HE Certificates will be priced, with respect to the Fixed Rate
Home Equity Contracts, using 125% of the Base Prepayment Assumption. The
Base Prepayment Assumption assumes a conditional prepayment rate of 4% 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 1.45% (precisely, 16/11%) per annum in
each month thereafter until the twelfth month. Beginning in the twelfth
month and in each month thereafter, the conditional prepayment rate is 20%.
The Sub Pool HE Certificates will be priced, with respect to the Adjustable
Rate Home Equity Contracts, using a constant prepayment rate of 30% CPR.
The Sub Pool HI Certificates will be priced using 100% of a prepayment rate
assuming a conditional prepayment rate of 12% per annum of the then
outstanding principal balance of the Home Improvement Contracts in the
first month of the life of the Home Improvement Contracts and an additional
0.73% (precisely, 8/11%) per annum in each month thereafter until the
twelfth month. Beginning in the twelfth month and in each month thereafter,
the conditional prepayment rate is 20%.
(2) Interest will be based on a notional principal amount which will equal
$20,000,000 (or the Class HE: A Principal Balance for such Payment Date, if
less) for the first 36 Payment Dates, and will thereafter, equal zero. The
Class HE:A-6 IO Certificates are interest-only Certificates and are not
entitled to receive distributions of capital.
Recipients must read the statement printed in 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.
1
<PAGE>
CUT-OFF DATE: Sub-Pool HI: February 28, 1998 (or the date of
origination, if later)
Sub-Pool HE: February 28, 1998 (or the date of
origination, if later), in each case for contracts
other than Subsequent Contracts. For each Subsequent
Contract, the date of purchase by the Trust.
EXP. PRICING: Week of March 23, 1998
EXP. SETTLEMENT: March 31, 1998
LEGAL FINAL: Sub-Pool HI: February 2024
Sub-Pool HE: November 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 April 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" and, collectively,
"Subsequent 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 in 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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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 Certificateholder.
The Sub Pool HI Amount Available will generally be
applied first to the distributions to the Class HI:A
Certificateholders, then to the Class HI:M-1
Certificateholders, then to the Class HI:M-
2Certificateholders, then to the Class HI:B-1
Certificateholders, and then to the Class HI:B-2
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-Funding
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 to the Class HI:A-1 Certificateholders.
Recipients must read the statement printed in 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
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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 a 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, then to the
Class HI:A-3 Certificateholders until the Class HI:A-3
Principal Balance has been reduced to zero, and then to
the Class HI:A-4 Certificateholders until the Class
HI:A-4 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 April 2001 (month
37); or
ii) 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 a 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 permissible.
CLASS HI:M-1 PRINCIPAL: Class HI:M-1 Certificateholders will not receive
principal until the 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 in 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: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 a 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 permissible.
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 a 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 permissible.
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 the 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 as 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 in 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: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 a 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 permissible.
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 in 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>
HOME EQUITY CERTIFICATE STRUCTURE
CREDIT ENHANCEMENT: Class HE:A: 16.25% subordination (Class HE:M-1,
HE:M-2, HE:B-1 and HE:B-2) & Residual
(Class C)
Class HE:M-1: 10.25% subordination (Class HE:M-2,
HE:B-1, and HE:B-2) & Residual (Class
C)
Class HE:M-2: 6.75% subordination (Class HE:B-1 and
HE:B-2) & Residual (Class C)
Class HE:B-1: 2.75% 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 Sub Pool HE Amount Available will generally be
applied first to the distributions to the Class HE:A
Certificateholders, then to the Class HE:M-1
Certificateholders, then to the Class HE:M-
2Certificateholders, then to the Class HE:B-1
Certificateholders, and then to the Class HE:B-2
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.
Any amounts remaining in the Sub-Pool HE 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.
7
<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 Contracts 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-6 IO Certificates) or
based on the "Notional Principal Amount" (in the
case of the Class HE:A-6 IO Certificates). Interest
will be calculated on the Class HE:A-6 IO
Certificates on the basis of a "Notional Principal
Amount" equal to the lesser of (a) the principal
balance of the Class HE:A Certificates and (b)
$20,000,000 (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-6 IO Certificates are entitled to
receive interest payments only through the Payment
Date in March 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-1B 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-1B 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 Contracts 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
Contracts and Home Improvement Contracts is less
than 10% of the Principal Balance of the Home Equity
Contracts 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 0.75% per annum and equal
to the sum of the servicing fee and the trustee fee.
Each other Class of Class HE:A Certificates and the
Class HE:A-1A ARM 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.
8
<PAGE>
CLASS HE:A PRINCIPAL: After payment of all interest distributable to the
Class HE:A Certificateholders, the Class A-1 ARM
Formula Principal Distribution Amount less the Class
HE: A-1A ARM Distribution Amount as defined below
will be distributed to the Class HE:A-1B ARM
Certificateholders and the Sub-Pool HE Senior
Percentage of the Sub-Pool HE Formula Principal
Distribution Amount less the HE:A-5 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 Date 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 A-1 ARM Formula Principal Distribution
Amount" on or before the Payment Date on which the
Class HE: A-1A ARM and Class HE: A-1B ARM
Certificates have been paid in full will generally
be equal to the lesser of (A) the sum of (i) the
Class HE: A-1A ARM Principal Balance and (ii) the
Class HE: A-1B 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, and A-5 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 Class 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, and A-5 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.
9
<PAGE>
CLASS HE:A PRINCIPAL The Class HE:A-1A ARM Certificateholders are
(continued): entitled to receive payments of the Class HE:A-1A
ARM Distribution Amount specified below. The "Class
HE:A-1A ARM Principal Distribution Amount" for any
Payment Date will be the lesser of (A) the product
of (i) the applicable Class HE:A-1A ARM Percentage
for such Payment Date and (ii) the Class ARM Formula
Principal Distribution Amount or (B) the Class HE:A-
1A ARM Principal Balance. The "Class HE:A-1B ARM
Principal Distribution Amount" for any Payment Date
will be the lesser of (A) the Class ARM Formula
Principal Distribution Amount less the Class HE:A-1A
ARM Principal Distribution Amount and (B) the Class
HE:A-1B ARM Principal Balance.
The "Class HE:A-1A ARM Percentage" for each Payment
Date shall be as follows:
Payment Dates Percentage
April 1998 - November 1999 0%
December 1999 and thereafter 90%
The Class HE:A-5 Certificateholders are entitled to
receive payments of the Class HE:A-5 Lockout
Distribution Amount specified below, provided, that
if on any Payment Date the Class HE:A-4 Certificate
Principal Balance is zero, the Certificateholders of
the Class HE:A-5 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-4
Certificates on such Payment Date). The "Class HE:A-
5 Lockout Distribution Amount" for any Payment Date
will be the product of (i) the applicable Class HE:
A-5 Lockout Percentage for such Payment Date and
(ii) the Class HE:A-5 Lockout Pro Rata Distribution
Amount for such Payment Date.
The "Class HE:A-5 Lockout Percentage" for each
Payment Date shall be as follows:
Payment Dates Lockout Percentage
April 1998 - March 2000 0%
April 2000 - March 2002 20%
April 2002 - March 2003 80%
April 2003 - March 2004 100%
April 2004 and thereafter 300%
The "Class HE:A-5 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-5 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, and Class
HE:A-5 Principal Balances and (y) the Sub-Pool HE
Senior Percentage of the Sub-Pool HE Formula
Principal Distribution Amount.
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 The Sub-Pool HE Senior Percentage will equal 100% if
(continued): any of the following exist:
i) it is prior to April 2001 (month 37); or
ii) 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-1A ARM Principal Balance and the Class
HE:A-1B ARM Principal Balance) and the Class HE:M
Principal Balance for a given Payment Date, and the
denominator of which is the Pool Scheduled Principal
Balance of the Home Equity Contracts other than the
Adjustable Rate Contracts for the immediately
preceding Payment Date. The Class HE:A-6 IO
Certificates are interest-only Certificates and are
not entitled to receive distributions of principal.
CLASS HE:M-1 INTEREST: After payment of the 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 will be computed on
a 30/360 basis. Interest shortfalls will be carried
forward, and will bear interest at the Class HE:M-1
Pass-Through Rate, to the extent legally
permissible.
CLASS HE:M-1 PRINCIPAL: Class HE:M-1 Certificateholders will not receive
principal until the 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 the 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 will be computed on a 30/360 basis.
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 the 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.
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:B-1 INTEREST: After payment of the 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 will be computed on a 30/360 basis.
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 Date and (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 the 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%.
CLASS HE:B PRINCIPAL (i) the Sub-Pool HE Average Sixty-Day Delinquency
DISTRIBUTION TESTS: Ratio with respect to Sub-Pool HE as of the
given Payment Date and the prior two Payment
Dates must not exceed 6%;
(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%;
(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
13.5%.
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 will be computed on a 30/360 basis.
Interest shortfalls will be carried forward, and
will bear interest at the Class HE:B-2 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.
12
<PAGE>
CLASS HE:B-2 PRINCIPAL: Except as described below, 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 also 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 The Class HE:B-2 Limited Guaranty will be available
GUARANTY: 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 February 28, 1998. 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
<TABLE>
<S> <C>
Number of Contracts in Sub-pool: 6,659
Wgt. Avg. Contract Rate: 12.172%
Range of Rates: 7.75% - 17.99%
Wgt. Avg. Orig. Maturity: 217
Wgt. Avg. Rem. Maturity: 216
Avg. Rem. Princ. Balance: $20,616.49
</TABLE>
GEOGRAPHIC DISTRIBUTION OF MORTGAGED PROPERTIES
INITIAL HOME IMPROVEMENT CONTRACTS
<TABLE>
<CAPTION>
% of HI Contract
% of HI Contract Aggregate Principal Sub-Pool by
Number of Sub-Pool by Number of Balance Outstanding Principal
State Contracts Contracts Outstanding Balance
- ---------------------- -------------------- ------------------------- --------------------- ---------------------------
<S> <C> <C> <C> <C>
CA 629 9.45% $ 20,377,610.68 14.84%
NY 521 7.82% 12,422,060.83 9.05%
PA 419 6.29% 8,902,249.92 6.48%
NJ 359 5.39% 8,052,851.47 5.87%
FL 334 5.02% 7,273,477.61 5.30%
Other States* 4,397 66.03% 80,256,957.39 58.46%
----- ------ --------------- ------
Total/(1)/ 6,659 100.00% $137,285,207.90 100.00%
===== ====== =============== ======
</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
Number of Aggregate Principal by Outstanding Principal
Year of Origination Contracts Balance Outstanding Balance
- ---------------------------- ---------------------- ------------------------------ ---------------------------------
<S> <C> <C> <C>
1987 1 $ 38,136.00 0.03%
1990 2 28,318.15 0.02%
1996 12 318,428.00 0.23%
1997 4,171 89,677,839.31 65.32%
1998 2,473 47,222,486.44 34.40%
----- ---------------
Total/(1)/ 6,659 $137,285,207.90 100.00%
===== =============== ======
</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 receive 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> <C>
0 - 9,999.99 1,373 $ 9,473,905.14 6.90%
10,000.00 - 19,999.99 2,300 33,701,405.01 24.55%
20,000.00 - 29,999.99 1,611 39,190,553.05 28.55%
30,000.00 - 39,999.99 793 27,108,436.73 19.75%
40,000.00 - 49,999.99 392 16,955,672.81 12.35%
50,000.00 - 59,999.99 141 7,321,854.45 5.33%
60,000.00 - 69,999.99 26 1,641,883.29 1.20%
70,000.00 - 79,999.99 14 1,058,473.30 0.77%
80,000.00 - 89,999.99 5 423,605.52 0.31%
90,000.00 - 99,999.99 1 91,890.83 0.07%
100,000.00 - 109,999.99 2 205,302.74 0.15%
110,000.00 - 119,999.99 1 112,225.03 0.08%
----- --------------- ------
Total/(1)/ 6,659 $137,285,207.90 100.00%
===== =============== ======
</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> <C>
7.001% - 8.000% 3 $ 107,533.69 0.08%
8.001% - 9.000% 215 3,748,716.24 2.73%
9.001% - 10.000% 614 17,885,644.70 13.03%
10.001% - 11.000% 1,154 27,689,424.58 20.17%
11.001% - 12.000% 774 17,756,626.35 12.93%
12.001% - 13.000% 1,174 22,593,662.30 16.46%
13.001% - 14.000% 1,338 21,943,055.38 15.98%
14.001% - 15.000% 1,087 20,258,459.56 14.76%
15.001% - 16.000% 253 4,432,775.18 3.23%
16.001% - 17.000% 43 798,474.79 0.58%
Greater than 17.000% 4 70,835.13 0.05%
----- --------------- ------
Total/(1)/ 6,659 $137,285,207.90 100.00%
===== =============== ======
</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 receive 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> <C>
Less than 30 14 $ 70,761.42 0.05%
31 - 60 462 3,670,789.31 2.67%
61 - 90 246 2,463,208.77 1.79%
91 - 120 1,608 22,679,115.05 16.52%
121 - 150 67 1,054,427.17 0.77%
151 - 180 1,688 34,834,427.67 25.37%
181 - 210 12 202,603.28 0.15%
211 - 240 987 24,572,354.73 17.90%
241 - 270 1 16,016.49 0.01%
271 - 300 1,574 47,721,504.01 34.76%
----- --------------- ------
Total/(1)/ 6,659 $137,285,207.90 100.00%
===== =============== ======
</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 284 4,499,877.71 3.28%
Second 5,354 114,303,588.20 83.26%
Third 1,006 18,297,604.07 13.33%
Fourth 15 184,137.92 0.13%
----- --------------- ------
Total/(1)/ 6,659 $137,285,207.90 100.00%
===== =============== ======
</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 receive 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 a pool originated through February 28, 1998. 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
<TABLE>
<S> <C>
Number of Contracts in Sub-pool: 4,061
Wgt. Avg. Contract Rate: 11.667%
Range of Rates: 6.00% - 19.29%
Wgt. Avg. Orig. Maturity: 236
Wgt. Avg. Rem. Maturity: 235
Avg. Rem. Princ. Balance: $ 56,652.03
Wgt. Avg. CLTV: 87.81%
</TABLE>
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 Aggregate Principal Outstanding
State Contracts Number of Contracts Balance Outstanding Principal Balance
- ----------- -------------- ---------------------- ----------------------- --------------------
<S> <C> <C> <C> <C>
OH 315 7.76% $ 15,513,693.68 6.74%
MI 250 6.16% 14,970,190.13 6.51%
CA 196 4.83% 14,792,075.07 6.43%
PA 217 5.34% 12,575,316.67 5.47%
FL 237 5.84% 12,437,550.86 5.41%
IL 220 5.42% 12,217,911.12 5.31%
Other* 2,626 64.66% 147,557,159.28 64.14%
----- ------ --------------- ------
Total/(1)/ 4,061 100.00% $230,063,896.81 100.00%
===== ====== =============== ======
</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 Lebman Brothers account
executive for another copy.
17
<PAGE>
YEARS OF ORIGINATION OF INITIAL FIXED RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of HE Contract Sub-
Number of Aggregate Principal Pool by Outstanding
Year of Origination Contracts Balance Outstanding Principal Balance
- ------------------------- ----------------- --------------------------- ------------------------
<S> <C> <C> <C>
1990 1 $ 98,621.98 0.04%
1991 1 36,057.75 0.02%
1994 1 71,541.58 0.03%
1995 7 373,102.24 0.16%
1996 11 711,564.68 0.31%
1997 611 29,650,625.95 12.89%
1998 3,429 199,122,382.63 86.55%
----- --------------- ------
Total/(1)/ 4,061 $230,063,896.81 100.00%
===== =============== ======
</TABLE>
INITIAL FIXED RATE HOME EQUITY CONTRACT RATES
<TABLE>
<CAPTION>
% of HE Contract Sub-
Range of HE Contracts by Number of Aggregate Principal Pool by Outstanding
Contract Rates Contracts Balance Outstanding Principal Balance
- -------------------------- ---------------- -------------------------- -----------------------
<S> <C> <C> <C>
5.001% - 6.000% 1 $ 95,000.00 0.04%
6.001% - 7.000% 1 78,400.00 0.03%
7.001% - 8.000% 4 491,692.09 0.21%
8.001% - 9.000% 48 6,274,759.62 2.73%
9.001% - 10.000% 255 25,513,528.31 11.09%
10.001% - 11.000% 782 67,247,594.72 29.23%
11.001% - 12.000% 715 43,484,908.19 18.90%
12.001% - 13.000% 929 40,139,736.86 17.45%
13.001% - 14.000% 813 30,121,910.97 13.09%
14.001% - 15.000% 289 10,538,776.42 4.58%
15.001% - 16.000% 131 4,013,666.49 1.74%
16.001% - 17.000% 54 1,295,599.68 0.56%
Greater than 17.000% 39 768,323.46 0.33%
----- --------------- ------
Total 4,061 $230,063,896.81 100.00%
===== =============== ======
</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 Lebman Brothers account
executive for another copy.
18
<PAGE>
DISTRIBUTION OF ORIGINAL INITIAL FIXED RATE HOME EQUITY CONTRACT AMOUNTS
<TABLE>
<CAPTION>
% of HE Contract Sub-
Original HE Contract Number of Aggregate Principal Pool by Outstanding
Amount (in Dollars) Contracts Balance Outstanding Principal Balance
- ----------------------------- ------------------ --------------------------- ------------------------
<S> <C> <C> <C>
0 - 9,999.99 11 $ 91,451.05 0.04%
10,000.00 - 19,999.99 653 9,776,545.68 4.25%
20,000.00 - 29,999.99 636 15,584,502.84 6.77%
30,000.00 - 39,999.99 476 16,340,492.74 7.10%
40,000.00 - 49,999.99 461 20,510,211.14 8.92%
50,000.00 - 59,999.99 392 21,281,417.20 9.25%
60,000.00 - 69,999.99 306 19,692,728.44 8.56%
70,000.00 - 79,999.99 234 17,353,638.31 7.54%
80,000.00 - 89,999.99 168 14,179,153.93 6.16%
90,000.00 - 99,999.99 159 15,074,826.60 6.55%
100,000.00 - 109,999.99 122 12,747,115.88 5.54%
110,000.00 - 119,999.99 94 10,818,008.91 4.70%
120,000.00 - 129,999.99 71 8,809,417.82 3.83%
130,000.00 - 139,999.99 63 8,505,709.71 3.70%
140,000.00 - 149,999.99 56 8,113,911.46 3.53%
150,000.00 - 159,999.99 35 5,382,859.08 2.34%
160,000.00 - 169,999.99 24 3,937,195.08 1.71%
170,000.00 - 179,999.99 18 3,146,342.12 1.37%
180,000.00 - 189,999.99 22 4,065,508.10 1.77%
190,000.00 - 199,999.99 10 1,920,856.50 0.83%
200,000.00 - 249,999.99 29 6,233,313.13 2.71%
250,000.00 - 299,999.99 10 2,731,588.00 1.19%
300,000.00 - 349,999.99 7 2,285,803.09 0.99%
350,000.00 - 399,999.99 4 1,481,300.00 0.64%
Total/(1)/ 4,061 $230,063,896.81 100.00%
===== =============== ======
</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 Lebman Brothers account
executive for another copy.
19
<PAGE>
REMAINING MONTHS TO MATURITY OF INITIAL FIXED RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of HE Contract
Number of Aggregate Principal Sub-Pool by Outstanding
Months Remaining Contracts Balance Outstanding Principal Balance
- ------------------- --------------- ----------------------- --------------------------
<S> <C> <C> <C>
Less than 31 1 $ 27,022.20 0.01%
31 - 60 26 611,696.61 0.27%
61 - 90 48 1,562,549.68 0.68%
91 - 120 261 7,247,423.07 3.15%
121 - 150 21 1,060,672.85 0.46%
151 - 180 1,615 84,565,386.52 36.76%
181 - 210 15 481,217.51 0.21%
211 - 240 1,323 74,391,471.35 32.34%
241 - 270 2 156,421.98 0.07%
271 - 300 435 29,760,593.01 12.94%
331 - 360 314 30,199,442.03 13.13%
----- --------------- ------
Total/(1)/ 4,061 $230,063,896.81 100.00%
===== =============== ======
</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 2,354 $181,575,987.02 78.92%
Second 1,677 47,833,198.25 20.79%
Third 30 654,711.54 0.28%
Total/(1)/ 4,061 $230,063,896.81 100.00%
===== =============== ======
</TABLE>
COMBINED LOAN-TO-VALUE RATIO OF INITIAL FIXED RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of HE Contract
Number of Aggregate Principal Sub-Pool by Outstanding
Combined Loan-to-Value Ratio Contracts Balance Outstanding Principal Balance
- --------------------------------- -------------- ------------------------ ------------------------------
<S> <C> <C> <C>
10.01% - 20.00% 10 $ 203,707.86 0.09%
20.01% - 30.00% 23 1,037,733.91 0.45%
30.01% - 40.00% 32 1,004,907.63 0.44%
40.01% - 50.00% 53 2,089,809.18 0.91%
50.01% - 60.00% 72 3,268,387.04 1.42%
60.01% - 70.00% 165 7,739,659.86 3.36%
70.01% - 80.00% 477 26,490,242.69 11.51%
80.01% - 90.00% 1,406 833,803,245.85 36.21%
More than 90.00% 1,823 104,926,202.79 45.61%
----- --------------- ------
Total/(1)/ 4,061 $230,063,896.81 100.00%
===== =============== ======
</TABLE>
(1) Percentages do not add to 100% due to rounding.
Recipients must read the statements printed on the attached cover. Don 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.
20
<PAGE>
THE INITIAL HOME EQUITY CONTRACT SUB-POOL
INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACTS
<TABLE>
<S> <C>
Number of Contracts in Sub-pool: 861
Wgt. Avg. Contract Rate: 9.259%
Range of Rates: 6.99% - 13.99%
Wgt. Avg. Orig. Maturity: 360
Wgt. Avg. Rem. Maturity: 356
Avg. Rem. Princ. Balance: $ 129,881
Wgt. Avg. CLTV: 85.72%
</TABLE>
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 114 13.24% $ 19,788,432.61 17.70%
AZ 107 12.43% 14,838,493.43 13.27%
MD 77 8.94% 12,984,916.79 11.61%
WA 50 5.81% 7,279,631.92 6.51%
AL 61 7.08% 6,146,461.10 5.50%
Other* 452 52.50% 50,789,896.85 45.42%
--- ------ --------------- ------
Total/(1)/ 861 100.00% $111,827,832.70 100.00%
=== ====== =============== ======
</TABLE>
_______________
* No one State in this category constitutes more than 5% of the Initial
Adjustable Rate Home Equity Contracts Outstanding Principal Balance.
YEARS OF ORIGINATION OF INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of HE Contract Sub-
Number of Aggregate Principal Pool by Outstanding
Year of Origination Contracts Balance Outstanding Principal Balance
- ---------------------- ------------------ ------------------------- --------------------------
<S> <C> <C> <C>
1994 28 $ 3,585,385.28 3.21%
1995 19 2,403,820.86 2.15%
1996 10 1,219,769.79 1.09%
1997 601 78,970,374.03 70.62%
1998 203 25,648,482.74 22.94%
--- --------------- ------
Total 861 $111,827,832.70 100.00%
=== =============== ======
</TABLE>
/(1)/ Percentages do not add to 100% due to rounding.
Recipients must read the statements 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
Original HE Contract Number of Aggregate Principal Sub-Pool by Outstanding
Amount (in Dollars) Contracts Balance Outstanding Principal Balance
- ------------------------------ -------------------- ------------------------- ----------------------------
<S> <C> <C> <C>
10,000 - 19,99 2 $ 37,323.38 0.03%
20,000 - 29,99 7 186,961.24 0.17%
30,000 - 39,99 15 533,470.45 0.48%
40,000 - 49,99 29 1,307,608.47 1.17%
50,000 - 59,99 32 1,773,145.52 1.59%
60,000 - 69,99 58 3,743,556.23 3.35%
70,000 - 79,99 55 4,091,923.21 3.66%
80,000 - 89,99 51 4,294,999.52 3.84%
90,000 - 99,99 62 5,840,021.71 5.22%
100,000 - 109,99 58 6,065,218.69 5.42%
110,000 - 119,99 65 7,426,211.77 6.64%
120,000 - 129,99 67 8,335,222.75 7.45%
130,000 - 139,99 44 5,942,163.58 5.31%
140,000 - 149,99 57 8,165,514.26 7.30%
150,000 - 159,99 31 4,777,459.09 4.27%
160,000 - 169,99 41 6,760,394.93 6.05%
170,000 - 179,99 24 4,174,326.81 3.73%
180,000 - 189,99 22 4,039,011.70 3.61%
190,000 - 199,99 19 3,694,255.37 3.30%
200,000 - 209,99 13 2,657,135.72 2.38%
210,000 - 219,99 25 5,342,865.03 4.78%
220,000 - 229,99 13 2,922,752.85 2.61%
230,000 - 239,99 12 2,796,798.74 2.50%
240,000 - 249,99 12 2,931,897.44 2.62%
250,000 - 259,99 8 2,037,427.27 1.82%
260,000 - 269,99 9 2,382,694.62 2.13%
270,000 - 279,99 2 550,636.70 0.49%
280,000 - 289,99 4 1,138,479.00 1.02%
290,000 - 299,99 4 1,173,362.85 1.05%
300,000 - 309,99 5 1,506,321.00 1.35%
310,000 - 319,99 1 316,617.73 0.28%
320,000 - 329,99 2 650,041.10 0.58%
330,000 - 339,99 4 1,332,727.26 1.19%
340,000 - 349,99 3 1,038,357.22 0.93%
350,000 - 359,99 2 699,292.47 0.63%
380,000 - 389,99 2 767,200.55 0.69%
390,000 - 399,99 1 394,436.47 0.35%
- ---------- ----
Total/(1)/ 861 $111,827,832.70 100.00%
=== =============== ======
</TABLE>
(1) Percentages do not add to 100% due to rounding.
Recipients must read the statements 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
Number of Aggregate Principal Sub-Pool by Outstanding
Months Remaining Contracts Balance Outstanding Principal Balance
- ----------------------------------- ----------------------- --------------------------- ---------------------------
<S> <C> <C> <C> <C>
151 - 180 1 137,000.00 0.12%
211 - 240 1 48,715.70 0.04%
301 - 330 41 5,276,276.64 4.72%
331 - 360 818 106,365,840.36 95.12%
Total 861 $111,827,832.70 100.00%
=== =============== ======
</TABLE>
INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACT RATES
<TABLE>
<CAPTION>
% of HE Contract
Range of HE Contracts by Number of Aggregate Principal Sub-Pool by Outstanding
Contract Rates Contracts Balance Outstanding Principal Balance
- ------------------------------ ----------------- ----------------------------- --------------------------------
<S> <C> <C> <C> <C>
6.001% - 7.000% 8 $ 1,107,397.14 0.99%
7.001% - 8.000% 112 17,964,355.10 16.06%
8.001% - 9.000% 222 30,631,414.24 27.39%
9.001% - 10.000% 343 43,288,807.46 38.71%
10.001% - 11.000% 113 13,153,433.48 11.76%
11.001% - 12.000% 45 4,371,969.39 3.91%
12.001% - 13.000% 15 1,149,043.69 1.03%
13.001% - 14.000% 3 161,412.20 0.14%
--- --------------- ------
Total(1) 861 $111,827,832.70 100.00%
=== =============== ======
</TABLE>
LIEN POSITION OF INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of HE Contract Sub-
Number of Aggregate Principal Pool by Outstanding
Lien Contracts Balance Outstanding Principal Balance
- ------------------------------------- -------------------- --------------------------- ----------------------------
<S> <C> <C> <C>
First 859 $111,587,081.40 99.78%
Second 2 240,751.30 0.22%
--- --------------- ------
Total 861 $111,827,832.70 100.00%
=== =============== ======
</TABLE>
COMBINED LOAN-TO-VALUE RATIO OF INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of HE Contract Sub-
Number of Aggregate Principal Pool by Outstanding
Combined Loan-to-Value Ratio Contracts Balance Outstanding Principal Balance
- ----------------------------------- ----------------- --------------------- ----------------------------
<S> <C> <C> <C> <C>
30.01% - 40.00% 2 $ 198,173.72 0.18%
40.01% - 50.00% 4 323,800.22 0.29%
50.01% - 60.00% 4 252,208.16 0.23%
60.01% - 70.00% 29 2,852,944.72 2.55%
70.01% - 80.00% 234 28,149,474.40 25.17%
80.01% - 90.00% 495 67,324,117.22 60.20%
90.01% - 100.00% 93 12,727,114.26 11.38%
--- --------------- ------
Total(1) 861 $111,827,832.70 100.00%
=== =============== ======
</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>
1998-03 21 $ 2,419,480.24 2.16%
1998-04 17 2,589,617.60 2.32%
1998-05 32 4,300,744.63 3.85%
1998-06 7 985,706.36 0.88%
1998-07 19 2,103,370.20 1.88%
1998-08 18 1,762,911.59 1.58%
1998-11 1 232,792.54 0.21%
1998-12 7 1,171,247.27 1.05%
1999-01 2 155,945.20 0.14%
1999-05 1 222,545.05 0.20%
1999-06 2 241,024.62 0.22%
1999-07 9 1,161,323.79 1.04%
1999-08 23 2,830,365.27 2.53%
1999-09 28 2,692,732.13 2.41%
1999-10 54 7,271,483.30 6.50%
1999-11 160 20,531,433.05 18.36%
1999-12 245 33,550,462.55 30.00%
2000-01 155 20,431,446.03 18.27%
2000-02 49 6,203,487.00 5.55%
2000-03 1 150,000.00 0.13%
2000-11 2 211,512.63 0.19%
2000-12 3 253,153.95 0.23%
2001-12 2 129,057.50 0.12%
2002-01 1 55,987.20 0.05%
2002-10 1 60,646.42 0.05%
2009-07 1 109,356.58 0.10%
--- --------------- ------
Total (1) 861 $111,827,832.70 100.00%
=== =============== ======
</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>
DISTRIBUTION OF GROSS MARGIN OF INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of Adjustable Rate
Number of Aggregate Principal Balance Contracts by Outstanding
Gross Margin (%) Contracts Outstanding Principal Balance
- --------------------------- ------------------ -------------------------------------- ------------------------------------
<S> <C> <C> <C>
2.001% - 4.000% 17 $ 1,979,455.03 1.77%
4.001% - 6.000% 445 56,525,313.27 50.55%
6.001% - 8.000% 390 52,679,926.83 47.11%
8.001% - 10.000% 9 643,137.57 0.58%
--- --------------- ------
Total/(1)/ 861 $111,827,832.70 100.00%
=== =============== ======
</TABLE>
MAXIMUM LOAN RATE OF INITIAL ADJUSTABLE RATE HOME EQUITY CONTRACTS
<TABLE>
<CAPTION>
% of Adjustable Rate
Number of Aggregate Principal Balance Contracts by Outstanding
Maximum Loan Rate Contracts Outstanding Principal Balance
- --------------------------- ------------------ -------------------------------------- ------------------------------------
<S> <C> <C> <C>
12.001% - 14.000% 94 $ 13,987,944.81 12.51%
14.001% - 16.000% 599 80,234,020.26 71.75%
16.001% - 18.000% 153 16,597,259.47 14.84%
18.001% - 20.000% 15 1,008,608.16 0.90%
--- --------------- ------
Total/(1)/ 861 $111,827,832.70 100.00%
=== =============== ======
</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>
2.001% - 4.000% 2 $ 201,800.00 0.18%
4.001% - 6.000% 4 678,612.07 0.61%
6.001% - 8.000% 130 20,214,095.57 18.08%
8.001% - 10.000% 558 72,975,447.25 65.26%
10.001% - 12.000% 151 16,618,612.15 14.86%
12.001% - 14.000% 16 1,139,265.66 1.02%
--- --------------- ------
Total/(1)/ 861 $111,827,832.70 100.00%
=== =============== ======
</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 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>
50% of 75% of 100% of 125% of 150% of
Prepayment Prepayment Prepayment Prepayment Prepayment
Model* Model* Model* Model* Model*
WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity
-------------- ------------ ------------ ------------- ------------
To Call
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A - 1 1.27 10/00 0.94 02/00 0.75 09/99 0.62 06/99 0.53 04/99
A - 2 3.48 10/02 2.55 07/01 2.00 11/00 1.64 05/00 1.39 01/00
A - 3 5.16 03/04 3.83 08/02 3.00 09/01 2.43 01/01 2.04 07/00
A - 4 8.42 01/10 6.38 04/07 5.03 06/05 4.01 01/04 3.28 01/03
M - 1 13.18 01/12 9.84 04/08 7.66 12/05 6.17 06/04 5.08 05/03
M - 2 13.79 01/12 10.04 04/08 7.71 12/05 6.21 06/04 5.12 05/03
B - 1 7.73 09/09 5.89 02/07 4.71 05/05 4.38 06/04 4.10 05/03
B - 2 13.32 01/12 9.87 04/08 7.66 12/05 6.21 06/04 5.12 05/03
To Maturity
M - 1 13.59 04/14 10.66 02/11 8.57 08/08 6.98 10/06 5.74 04/05
M - 2 19.39 03/23 16.12 03/23 13.41 03/23 11.15 03/23 9.36 03/23
B - 1 7.73 09/09 5.89 02/07 4.71 05/05 4.38 08/04 4.15 01/04
B - 2 15.59 03/23 12.59 03/23 10.34 03/23 9.10 03/23 8.14 03/23
</TABLE>
CPR PREPAYMENT SENSITIVITIES
FOR HOME EQUITY CONTRACT CERTIFICATES
<TABLE>
<CAPTION>
50% of 75% of 100% of 125% of 150% of
Prepayment Prepayment Prepayment Prepayment Prepaymentel*
Model* Model* Model* Model* Model*
WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity
------------- ------------ ------------- ------------ ------------
To Call
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A - 1A ARM 2.20 01/01 2.07 10/00 2.02 08/00 2.00 08/00 2.00 08/00
A - 1B ARM 5.55 05/11 3.62 06/07 2.56 02/05 1.90 07/03 1.44 05/02
A - 1 1.69 07/01 1.24 07/00 1.00 01/00 0.85 09/99 0.75 07/99
A - 2 3.71 05/02 2.61 02/01 2.02 06/00 1.66 01/00 1.42 10/99
A - 3 6.23 03/07 4.12 02/04 3.00 04/02 2.37 04/01 1.98 09/00
A - 4 10.00 06/09 7.03 03/06 4.86 03/04 3.44 03/02 2.73 03/01
A - 5 5.96 03/09 5.24 01/06 4.57 03/04 3.84 10/02 3.06 10/01
A - 6 IO 2.96 03/01 2.96 03/01 2.96 03/01 2.96 03/01 2.96 03/01
M - 1 13.71 01/12 9.89 04/08 7.50 12/05 5.89 06/04 4.71 05/03
M - 2 13.79 01/12 10.04 04/08 7.71 12/05 6.21 06/04 5.12 05/03
B - 1 7.03 04/08 4.91 05/05 4.24 02/04 4.02 05/04 3.94 05/03
B - 2 13.02 01/12 9.41 04/08 7.49 12/05 6.21 06/04 5.12 05/03
To Maturity
M - 1 14.37 09/13 10.52 06/10 7.85 06/07 6.06 06/05 4.78 12/03
M - 2 17.77 08/25 14.43 08/25 11.42 08/25 9.10 08/25 7.33 05/25
B - 1 7.03 04/08 4.91 05/05 4.24 02/04 4.02 05/04 3.96 10/03
B - 2 18.86 03/08 13.87 03/28 11.24 03/28 9.38 01/28 7.88 12/25
</TABLE>
_______________
* The Sub Pool HE Certificates will be priced, with respect to the Fixed Rate
Home Equity Contracts, using 125% of the Base Prepayment Assumption. The Base
Prepayment Assumption assumes a conditional prepayment rate of 4% 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 1.45% (precisely, 16/11%) per annum in each month
thereafter until the twelfth month. Beginning in the twelfth month and in
each month thereafter, the conditional prepayment rate is 20%. The Sub Pool
HE Certificates will be priced, with respect to the Adjustable Rate Home
Equity Contracts, using a constant prepayment rate of 30% CPR. The Sub Pool
HI Certificates will be priced using 100% of a prepayment rate assuming a
conditional prepayment rate of 12% per annum of the then outstanding
principal balance of the Home Improvement Contracts in the first month of the
life of the Home Improvement Contracts and an additional 0.73% (precisely,
8/11%) per annum in each month thereafter until the twelfth month. Beginning
in the twelfth month and in each month thereafter, the conditional prepayment
rate is 20%.
Recipients must read the statement printed on the attached cover. Do not use
or rely on this information if you have not received this statement. If you
have not received this statement, call your Lehman Brothers account executive
for another copy.
26
