<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 10, 1998
GREEN TREE FINANCIAL CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 01-08916 41-1807858
- ---------------------------- ------------------------ -------------------
(State or other Jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
1100 Landmark Towers, 345 St. Peter Street, Saint Paul, Minnesota 55102-1639
- -------------------------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: (612) 293-3400
--------------
Not Applicable
- -------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
ITEM 1. Changes in Control of Registrant.
- ------- --------------------------------
Not applicable.
ITEM 2. Acquisition or Disposition of Assets.
- ------- ------------------------------------
Not applicable
ITEM 3. Bankruptcy or Receivership.
- ------- --------------------------
Not applicable
ITEM 4. Changes in Registrant's Certifying Accounting.
- ------- ---------------------------------------------
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 Term Sheet distributed in connection with
$750,000,000 (Approximate) Manufactured
Housing Contract Senior/Subordinate Pass-
Through Certificates, Series 1998-2, 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.
Date: March 11, 1998 GREEN TREE FINANCIAL CORPORATION
By: /s/ Scott T. Young
____________________________________
Scott T. Young
Senior Vice President and Controller
3
<PAGE>
INDEX TO EXHIBITS
Exhibit
-------
Number Page
------ ----
99 Term Sheet distributed in connection with 5
$750,000,000 (Approximate) Manufactured Housing
Contract Senior/Subordinate Pass-Through
Certificates, Series 1998-2, issued by
Green Tree Financial Corporation, as Seller
and Servicer.
4
<PAGE>
TERM SHEET DATED MARCH 10, 1998
GREEN TREE FINANCIAL CORPORATION
MANUFACTURED HOUSING CONTRACT SENIOR/SUBORDINATE
PASS-THROUGH CERTIFICATES, SERIES 1998-2
$750,000,000 (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 MARCH 10, 1998
GREEN TREE FINANCIAL CORPORATION
MANUFACTURED HOUSING CONTRACT SENIOR/SUBORDINATE
PASS-THROUGH CERTIFICATES, SERIES 1998-2
$750,000,000 (APPROXIMATE)
Subject to Revision
SELLER/SERVICER: Green Tree Financial Corporation ("Green Tree")
TRUSTEE: U.S. Bank National Association, St. Paul, Minnesota
UNDERWRITERS: Lehman Brothers (Lead), Merrill Lynch & Co.,
Salomon Smith Barney
OFFERED CERTIFICATES:
RATINGS WAL EXP FINAL
AMOUNT (MOODY'S/S&P) @ 150% MHP MATURITY
------ ------------- ---------- --------
To Call:
A-1 $ 36,000,000 P-1 / A-1+ 0.39 12/98
A-2 $ 39,000,000 Aaa / AAA 1.00 07/99
A-3 $ 95,000,000 Aaa / AAA 1.99 12/00
A-4 $ 41,500,000 Aaa / AAA 3.00 07/01
A-5 $162,000,000 Aaa / AAA 4.98 04/05
A-6 $260,250,000 Aaa / AAA 12.57 09/15
M-1 $ 52,500,000 Aa3 / AA 10.39 09/15
B-1 $ 33,750,000 Baa1 / BBB+ 6.73 03/08
B-2 $ 30,000,000 Baa3 / BBB- 14.79 09/15
To Maturity
A-6 $260,250,000 Aaa / AAA 13.22 07/23
M-1 $ 52,500,000 Aa3 / AA 10.84 07/23
B-2 $ 30,000,000 Baa3 / BBB- 19.77 06/28
CUT-OFF DATE: February 15, 1998 (or the date of origination, if later)
EXP. PRICING: March 12, 1998
EXP. SETTLEMENT: March 19, 1998
INTEREST/
PRINCIPAL: The 1st day of each month (or if such 1st day is not a
business day, the next succeeding business day), commencing
on May 1, 1998.
MONEY MARKET
ELIGIBILITY: The Class A-1 Certificates are expected to be eligible
securities for purchase by money market funds under Rule
2a-7 under the Investment Company Act of 1940, as amended. A
fund should consult with its advisors regarding the
eligibility of the Class A-1 Certificates under Rule 2a-7
and the fund's investment policies and objectives.
OTHER
CERTIFICATES: In addition to the Offered Certificates, the Class C and
Class B-3I Certificates will be issued. The Class B-3I
Certificates will be interest-only Certificates which are
retained by an affiliate of Green Tree, and fully
subordinated to the Offered Certificates.
ERISA: The Class A Certificates are ERISA eligible, subject to the
conditions set forth in the Prospectus Supplement. The Class
M-1, B-1 and B-2 Certificates will not be sold to benefit
plans unless such plans deliver a legal opinion to the
Trustee, stating that assets of the Trust are not deemed
"plan assets".
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
2
<PAGE>
SMMEA: The Class A and M-1 Certificates will not constitute
"mortgage related securities" under the Secondary Mortgage
Market Enhancement Act of 1984 ("SMMEA") until such time as
the Pre-Funded Amount is reduced to zero. At such time, the
Class A and M-1 Certificates will be "legal investments" for
certain types of institutional investors to the extent
provided in that Act. The Class B-1 and B-2 Certificates are
not SMMEA eligible.
TAX STATUS: Two separate REMIC Elections will be made with
respect to the Trust for federal income tax purposes.
OPTIONAL
REDEMPTION: Less than 10% of the original pool balance outstanding.
STRUCTURE
CREDIT
ENHANCEMENT: Class A: 15.50% subordination (Class M-1, B-1, and B-2) plus
Excess Spread (Class B-3I)
Class M-1: 8.5% subordination (Class B-1 and B-2) plus
Excess Spread (Class B-3I)
Class B-1: 4.0% subordination (Class B-2) plus Excess Spread
(Class B-3I)
Class B-2: Limited Guarantee plus Excess Spread (Class B-3I)
THE CONTRACT
POOL: On the Closing Date, the Trust expects to purchase (i)
manufactured housing contracts having an aggregate principal
balance of approximately $481,315,682 as of the Cut-off Date
(the "Initial Contracts") and (ii) additional manufactured
housing contracts (the "Additional Contracts"). An amount
will be deposited into an account (the "Prefunding Account")
on the Closing Date to purchase additional contracts prior
to 90 days from the Closing Date (the "Subsequent
Contracts") for inclusion in the Contract Pool. The
Subsequent Contracts will represent no more than 25% of the
aggregate Contract Pool.
DISTRIBUTIONS: The Amount Available on each Remittance Date generally
includes the sum of (a) payments on the Contracts due and
received during the related Due Period (as defined below),
(b) prepayments and other unscheduled collections received
during the related Due Period, and (c) all collections of
principal on the Contracts received during the Due Period in
which such Remittance Date occurs up to and including the
third business day prior to such Remittance Date (but in no
event later than the 25th day of the month prior to such
Remittance Date), minus (d) with respect to all Remittance
Dates other than the Remittance Date in May 1998, all
collections in respect of principal on the Contracts
received during the preceding month up to and including the
third business day prior to the Remittance Date (but in no
event later than the 25th 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.
The "related Due Period" with respect to any Remittance Date
is the period from and including the 15th day of the second
month preceding such Remittance Date, to and including the
14th day of the month immediately preceding such Remittance
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.
3
<PAGE>
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.
The Class A-1 Certificates will bear interest at a fixed
Pass-Through Rate calculated on an actual/360 basis. Each
other Class of Certificates will bear interest at a fixed
Pass-Through Rate calculated on a 30/360 basis.
Interest shortfall will be carried forward, and will bear
interest at the applicable Remittance Rate, to the extent
legally permissible.
After payment of all principal distributable on the Class
M-1 Certificates (see below), any accrued and unpaid Class
M-1 Liquidation Loss Interest Amount will be distributed to
the extent available. After payment of all principal
distributable on the Class B-1 Certificates (see below), any
accrued and unpaid Class B-1 Liquidation Loss Interest
Amount will be distributed to the extent available.
The Class M-1 Adjusted Principal Balance is the Class M-1
Principal Balance less any Class M-1 Liquidation Loss
Amount. The Class M-1 Principal Balance is the Original
Class M-1 Principal Balance less all amounts previously
distributed on account of principal of the Class M-1
Certificates.
The Class B-1 Adjusted Principal Balance is the Class B-1
Principal Balance less any Class B-1 Liquidation Loss
Amount. The Class B-1 Principal Balance is the Original
Class B-1 Principal Balance less all amounts previously
distributed on account of principal of the Class B-1
Certificates.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
4
<PAGE>
PRINCIPAL
(Class A,
M-1, B-1): After the payment of all interest distributable to Class A,
Class M-1 and Class B-1 Certificateholders, principal will
be distributed in the following manner.
Class A Percentage will be distributed sequentially to the
Class A-1, A-2, A-3, A-4, A-5, and A-6 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, (ii) the
Class M-1 Principal Balance and (iii) if the Class B
Distribution Test is satisfied on such Remittance Date, the
Class B Principal Balance, otherwise zero, all as of such
Remittance Date.
The Class M-1 Distribution Test will be satisfied if each of
the following tests is satisfied: (i) the Remittance Date
occurs in or after May 2002; (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 23.25%.
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 May 2002; (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
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>
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 12.75%; and
(vii) the Class B Principal Balance must not be less than
$15,000,000.
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 B-3I
Certificateholders, then the Monthly Servicing Fee (as long
as Green Tree is the Servicer), then the Class B-2
Certificateholders, then the Class B-1 Certificateholders,
and then the Class M-1 Certificateholders.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
6
<PAGE>
CONTRACTS: The information concerning the Initial Contracts presented
below is based on a pool originated through February 27,
1998. 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 and
Subsequent Contracts sold to the Trust will vary materially
from the information concerning the Initial Contracts
herein.
THE INITIAL CONTRACT POOL
Number of MHCs in pool: 13,082
Wgt. Avg. Contract Rate: 9.62%
Range of Rates: 4.49% - 17.00%
Wgt. Avg. Orig. Maturity: 300 mos.
Range of Orig. Maturity: 15-360 mos.
Wgt. Avg. Rem. Maturity: 299 mos.
Range of Rem. Maturity: 8-360 mos.
Avg. Rem Princ. Balance: $36,792.21
Wgt. Avg. LTV: 87.83%
New/Used: 74%/26%
Single/Double: 33%/67%
Park/Private: 33%/67%
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>
North Carolina 1,319 10.08% $ 51,623,294.91 10.73%
Texas 1,164 8.90% $ 41,296,289.00 8.58%
Florida 848 6.48% $ 33,822,228.37 7.03%
Michigan 686 5.24% $ 30,940,473.17 6.43%
Georgia 824 6.30% $ 28,391,075.33 5.90%
Alabama 869 6.64% $ 26,347,818.55 5.47%
Other States(1) 7,372 56.35% $268,894,503.12 55.87%
----- ------ ---------------- ------
Total (2) 13,082 100.00% $481,315,682.45 100.00%
====== ======= ================ =======
</TABLE>
- -----------------------
(1) Other States category includes those States which constitute less than
5.00% of the outstanding balance of the Initial Pool of Contracts.
(2) Percentages do not add to 100% due to rounding.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
7
<PAGE>
DISTRIBUTION OF ORIGINAL AMOUNTS OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% OF CONTRACT POOL
ORIGINAL CONTRACT NUMBER OF AGGREGATE PRINCIPAL BY OUTSTANDING
AMOUNT (IN DOLLARS)(1) CONTRACTS BALANCE OUTSTANDING PRINCIPAL BALANCE
- ---------------------- --------- ------------------- ------------------
<S> <C> <C> <C>
Less than $10,000.01 671 $ 5,189,074.23 1.08%
$10,000.01 - $20,000.00 2,288 $ 34,790,442.49 7.23%
$20,000.01- $30,000.00 3,246 $ 80,795,796.16 16.79%
$30,000.01 - $40,000.00 2,473 $ 84,889,356.39 17.64%
$40,000.01 - $50,000.00 1,511 $ 67,516,195.27 14.03%
$50,000.01 - $60,000.00 1,014 $ 55,398,925.35 11.51%
$60,000.01 - $70,000.00 667 $ 43,144,570.67 8.96%
$70,000.01 - $80,000.00 428 $ 31,842,902.35 6.62%
$80,000.01 - $90,000.00 308 $ 26,049,854.23 5.41%
$90,000.01 - $100,000.00 202 $ 19,188,122.14 3.99%
$100,000.01 - $110,000.00 107 $ 11,142,099.26 2.31%
$110,000.01 - $120,000.00 70 $ 8,028,937.37 1.67%
$120,000.01 - $130,000.00 41 $ 5,116,925.12 1.06%
$130,000.01 - $140,000.00 26 $ 3,493,255.55 0.73%
$140,000.01 - $150,000.00 12 $ 1,739,640.20 0.36%
$150,000.01 - $160,000.00 8 $ 1,237,593.64 0.26%
$160,000.01 - $170,000.00 5 $ 813,765.49 0.17%
$170,000.01- $180,000.00 1 $ 175,784.84 0.04%
$180,000.01 - $190,000.00 1 $ 187,666.05 0.04%
$190,000.01 - $200,000.00 3 $ 574,775.65 0.12%
-------- --------------- ------
Total (2) 13,082 $481,315,682.45 100.00%
======== =============== ======
</TABLE>
- -----------------------
(1) The largest original Contract amount is $193,368.45, which represents 0.04%
of the Initial Pool Principal Balance.
(2) Percentages do not add to 100% due to rounding.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
8
<PAGE>
CONTRACT RATES OF INITIAL CONTRACTS
<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>
0.000% - 5.00% 4 $ 233,006.66 0.05%
5.01% - 6.00% 28 $ 1,659,200.88 0.34%
6.01% - 7.00% 513 $ 40,046,383.98 8.32%
7.01% - 8.00% 1,361 $ 81,074,463.56 16.84%
8.01% - 9.00% 1,592 $ 79,914,716.86 16.60%
9.01% - 10.00% 2,469 $ 98,148,121.86 20.39%
10.01% - 11.00% 2,280 $ 74,990,321.55 15.58%
11.01% - 12.00% 2,636 $ 65,830,192.38 13.68%
12.01% - 13.00% 1,358 $ 27,070,325.69 5.62%
13.01% - 14.00% 634 $ 10,369,732.10 2.15%
14.01% - 15.00% 17 $ 217,978.08 0.05%
15.01% - 16.00% 164 $ 1,546,229.10 0.32%
16.01% - 17.00% 26 $ 215,009.75 0.04%
------ --------------- ------
Total (1) 13,082 $481,315,682.45 100.00%
====== =============== ======
</TABLE>
(1) Percentages do not add to 100% due to rounding.
DISTRIBUTION OF ORIGINAL LOAN-TO-VALUE RATIOS OF INITIAL CONTRACTS
<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 51% 244 $ 6,125,078.89 1.27%
51% - 55% 105 $ 2,955,611.00 0.61%
56% - 60% 118 $ 3,625,195.20 0.75%
61% - 65% 158 $ 5,951,006.58 1.24%
66% - 70% 249 $ 9,090,371.07 1.89%
71% - 75% 326 $ 13,361,807.02 2.78%
76% - 80% 995 $ 35,552,635.35 7.39%
81% - 85% 1,418 $ 55,233,106.90 11.48%
86% - 90% 4,327 $163,192,166.97 33.91%
91% - 95% 4,287 $156,240,507.46 32.46%
96% - 100% 855 $ 29,988,196.01 6.23%
------ --------------- ------
Total(2) 13,082 $481,315,682.45 100.00%
====== =============== ======
</TABLE>
- -----------------------
(1) Rounded to the nearest 1%. The method of calculating loan-to-value ratios
is described in the Prospectus.
(2) Percentages do not add to 100% due to rounding.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
9
<PAGE>
REMAINING MONTHS TO MATURITY OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% OF CONTRACT POOL
NUMBER OF AGGREGATE PRINCIPAL BY OUTSTANDING
MONTHS REMAINING CONTRACTS BALANCE OUTSTANDING PRINCIPAL BALANCE
- ---------------- --------- ------------------- -----------------
<S> <C> <C> <C>
Less than 31 15 $ 108,543.96 0.02%
31 - 60 344 $ 3,060,178.52 0.64%
61 - 90 614 $ 8,324,405.56 1.73%
91 - 120 1,016 $ 16,318,456.39 3.39%
121 - 150 389 $ 8,018,523.68 1.67%
151 - 180 2,056 $ 47,216,974.45 9.81%
181 - 210 177 $ 6,090,768.90 1.27%
211 - 240 2,229 $ 68,301,934.25 14.19%
241 - 270 26 $ 1,180,162.70 0.25%
271 - 300 1,103 $ 38,282,897.81 7.95%
301 - 330 15 $ 575,673.69 0.12%
331 - 360 5,098 $283,837,162.54 58.97%
------ --------------- ------
Total (1) 13,082 $481,315,682.45 100.00%
====== =============== ======
</TABLE>
(1) Percentages do not add to 100% due to rounding.
YEARS OF ORIGINATION OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% OF CONTRACT POOL
NUMBER OF AGGREGATE PRINCIPAL BY OUTSTANDING
YEAR OF ORIGINATION (1) CONTRACTS BALANCE OUTSTANDING PRINCIPAL BALANCE
- ----------------------- --------- ------------------- -----------------
<S> <C> <C> <C>
1978 1 $ 4,006.40 *
1979 1 $ 6,673.78 *
1983 2 $ 16,398.78 *
1984 2 $ 6,723.89 *
1985 4 $ 34,855.53 0.01%
1986 12 $ 111,608.27 0.02%
1987 11 $ 182,841.27 0.04%
1988 24 $ 376,143.83 0.08%
1989 53 $ 1,207,715.96 0.25%
1990 51 $ 1,187,985.29 0.25%
1991 87 $ 2,049,459.24 0.43%
1992 76 $ 1,974,124.93 0.41%
1993 41 $ 940,014.23 0.20%
1994 97 $ 3,086,055.27 0.64%
1995 135 $ 4,189,488.12 0.87%
1996 203 $ 7,772,072.52 1.61%
1997 1,524 $103,193,728.72 21.44%
1998 10,758 $354,975,786.42 73.75%
------ --------------- ------
Total 13,082 $481,315,682.45 100.00%
====== =============== ======
</TABLE>
- -----------------------
(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.
* Indicates a percent greater than 0.00% but less than 0.005%
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>
MHP PREPAYMENT SENSITIVITIES(1)
<TABLE>
<CAPTION>
85% MHP 100% MHP 125% MHP 150% MHP
WAL/MATURITY WAL/MATURITY WAL/MATURITY WAL/MATURITY
<S> <C> <C> <C> <C>
To Call
A-1 0.54 04/99 0.49 02/99 0.43 01/99 0.39 12/98
A-2 1.44 02/00 1.31 12/99 1.13 09/99 1.00 07/99
A-3 2.88 03/02 2.60 10/01 2.25 04/01 1.99 12/00
A-4 4.39 02/03 3.96 08/02 3.41 01/02 3.00 07/01
A-5 7.28 06/08 6.60 07/07 5.69 04/06 4.98 04/05
A-6 16.86 09/20 15.70 05/19 14.00 05/17 12.57 09/15
M-1 14.02 09/20 12.97 05/19 11.56 05/17 10.39 09/15
B-1 9.52 01/12 8.66 12/10 7.58 06/09 6.73 03/08
B-2 19.41 09/20 18.14 05/19 16.31 05/17 14.79 09/15
To Maturity
A-6 17.41 07/26 16.32 01/26 14.66 12/24 13.22 07/23
M-1 14.39 07/26 13.39 01/26 12.01 12/24 10.84 07/23
B-2 22.75 06/28 22.02 06/28 20.86 06/28 19.77 06/28
175% MHP 250% MHP 300% MHP 350% MHP
WAL/MATURITY WAL/MATURITY WAL/MATURITY WAL/MATURITY
To Call
A-1 0.35 11/98 0.28 09/98 0.25 09/98 0.22 08/98
A-2 0.90 06/99 0.69 02/99 0.60 01/99 0.53 12/98
A-3 1.79 08/00 1.39 02/00 1.20 11/99 1.07 09/99
A-4 2.68 03/01 2.06 07/00 1.80 03/00 1.59 01/00
A-5 4.35 06/04 3.18 07/02 2.75 11/01 2.42 06/01
A-6 11.25 02/14 8.32 07/10 6.93 10/08 5.88 06/07
M-1 9.70 02/14 8.18 07/10 7.45 10/08 6.88 06/07
B-1 6.43 08/07 5.80 04/06 5.53 08/05 5.33 03/05
B-2 13.58 02/14 10.90 07/10 9.61 10/08 8.63 06/07
To Maturity
A-6 11.88 01/22 8.84 07/17 7.39 02/15 6.26 02/13
M-1 10.17 01/22 8.68 07/17 7.98 02/15 7.43 02/13
B-2 18.84 06/28 16.08 06/28 14.43 06/28 13.01 06/28
</TABLE>
(1) The following are the assumed characteristics of the Additional and
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 90 $6,018,404.85 71 71 11.805%
91 to 150 $16,482,353.29 125 125 12.076%
151 to 210 $37,056,290.36 180 180 11.343%
211 to 270 $53,557,812.90 240 240 10.892%
271 to 300 $28,869,646.66 300 300 10.573%
301 to 360 $126,699,809.49 360 360 9.460%
Total $268,684,317.55 284 284 10.338%
===============
</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.
11
