<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 19, 1998
GREEN TREE FINANCIAL CORPORATION
as originator of Green Tree Recreational,
Equipment & Consumer Trust 1998-A
------------------------------------------
(Exact name of registrant as specified in its charter)
Minnesota 1-8916 41-1807858
- --------------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS employer
of incorporation) file number) identification No.)
1100 Landmark Towers, 345 St. Peter Street, Saint Paul, Minnesota 55102-1639
- --------------------------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: (612) 293-3400
----------------------
Not Applicable
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
Item 1. Changes in Control of Registrant.
--------------------------------
Not applicable.
Item 2. Acquisition or Disposition of Assets.
------------------------------------
Not applicable.
Item 3. Bankruptcy or Receivership.
-------------------------
Not applicable.
Item 4. Changes in Registrant's Certifying Accountant.
----------------------------------------------
Not applicable.
Item 5. Other Events.
------------
Not applicable.
Item 6. Resignations of Registrant's Directors.
--------------------------------------
Not applicable.
Item 7. Financial Statements and Exhibits.
---------------------------------
(a) Financial statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
<PAGE>
(c) Exhibits.
The following is filed herewith. The exhibit numbers
correspond with Item 601(b) of Regulation S-K.
Exhibit No. Description
----------- -----------
99 External Computational and Descriptive
Information distributed in connection with
Certificates for Green Tree Recreational,
Equipment & Consumer Trust 1998-A, issued by
a trust formed 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.
Dated: March 19, 1998 GREEN TREE FINANCIAL CORPORATION
as originator of Green Tree Recreational,
Equipment & Consumer Trust 1998-A
By: /s/ Joel H. Gottesman
--------------------------------------
Joel H. Gottesman
Senior Vice President, General Counsel
and Secretary
<PAGE>
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit Number Page
- -------------- ----
<S> <C> <C>
99 External Computational and Descriptive Information 5
distributed in connection with Certificates for Green
Tree Recreational, Equipment & Consumer Trust 1998-A,
issued by a trust formed by Green Tree Financial
Corporation, as Seller and Servicer.
</TABLE>
<PAGE>
EXHIBIT 99
GREEN TREE FINANCIAL CORPORATION
GREEN TREE RECREATIONAL, EQUIPMENT & CONSUMER
TRUST 1998-A
$500,000,000 (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).
<PAGE>
ASSET BACKED SECURITIES EXTERNAL COMPUTATIONAL MATERIALS
--------------------------------------------------------
GREEN TREE FINANCIAL CORPORATION (SELLER AND SERVICER)
$500,000,000(APPROXIMATE)
GREEN TREE RECREATIONAL, EQUIPMENT & CONSUMER
TRUST 1998-A
Securities Offered:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
Principal Expected
Average Expected Payment Rating
Class Amount Life Maturity Date Window S&P/Fitch
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
To 10% Call
--------------------------------------------------------------------------------------------------------------------
A-1C $320,870,000 2.41 03/04 1-72 (72) AAA/AAA
A-2C $ 16,695,000 2.41 03/04 1-72 (72) AA/AA
A-3C $ 12,980,000 2.41 03/04 1-72 (72) A/A
A-4C $ 7,420,000 2.41 03/04 1-72 (72) BBB/BBB
B-C $ 12,986,946 2.41 03/04 1-72 (72) BBB-/BBB
A-1H $ 87,750,000 4.73 05/09 1-134 (134) AAA/AAA
A-2H $ 18,070,000 4.73 05/09 1-134 (134) AA/AA
A-3H $ 9,680,000 4.73 05/09 1-134 (134) A/A
A-4H $ 7,740,000 4.73 05/09 1-134 (134) BBB/BBB
B-H $ 5,808,053 4.73 05/09 1-134 (134) BBB-/BBB
--------------------------------------------------------------------------------------------------------------------
To Maturity
--------------------------------------------------------------------------------------------------------------------
A-1C $320,870,000 2.66 04/18 1-240 (240) AAA/AAA
A-2C $ 16,695,000 2.66 04/18 1-240 (240) AA/AA
A-3C $ 12,980,000 2.66 04/18 1-240 (240) A/A
A-4C $ 7,420,000 2.66 04/18 1-240 (240) BBB/BBB
B-C $ 12,986,946 2.66 04/18 1-240 (240) BBB-/BBB
A-1H $ 87,750,000 5.03 04/28 1-360 (360) AAA/AAA
A-2H $ 18,070,000 5.03 04/28 1-360 (360) AA/AA
A-3H $ 9,680,000 5.03 04/28 1-360 (360) A/A
A-4H $ 7,740,000 5.03 04/28 1-360 (360) BBB/BBB
B-H $ 5,808,053 5.03 04/28 1-360 (360) BBB-/BBB
--------------------------------------------------------------------------------------------------------------------
</TABLE>
Securities ending with an ending letter denomination of "C" are referred to
herein as Consumer Securities, and securities ending with an ending letter
denomination "H" are referred to herein as Home Equity and Home Improvement
Securities.
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 receive this statement, call your Lehman Brothers account
executive for another copy
1
<PAGE>
TRANSACTION SPECIFICS
- ---------------------
Managers: LEHMAN BROTHERS (LEAD MANAGER), Merrill Lynch
Seller and Servicer: Green Tree Financial Corporation
Initial Collateral: An initial pool of 18,942 retail installment
sales contracts and promissory notes for the
purchase of a variety of consumer products
and equipment, retail installment sales
contracts and promissory notes financing home
improvements, and closed-end home equity
loans (collectively, the "Contracts").
Subsequent Collateral: On the Closing Date, approximately $102
million of additional Contracts, which will
not include any home improvement loans or
home equity loans (the "Subsequent
Contracts"), will be added to the collateral
pool.
SMMEA: The bonds are NOT SMMEA qualifying.
Distribution Date: The 15th of each month, beginning April 15,
1998
Delay Days: No delay on bonds
Expected Pricing: Week of March 16, 1998
Expected Closing: Week of March 30, 1998
Settlement: Week of March 30, 1998
Trustee: U.S. Bank Trust National Association
Optional Redemption: 10% Cleanup Call
Tax Status: Green Tree Recreational, Equipment & Consumer
Trust 1998-A will be treated as two grantor
trusts for federal income tax purposes.
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 receive this statement, call your Lehman Brothers account
executive for another copy.
2
<PAGE>
PREPAYMENT SENSITIVITY INFORMATION
- ----------------------------------
Projected Performance Of Consumer Product Securities
Under Varying Prepayment Assumptions/(1)/
<TABLE>
<CAPTION>
PREPAYMENT ASSUMPTION % 80% 90% **100%** 110% 120%
- --------------------------------- -------- -------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
TO CALL
- -------
Average Life (years) 2.74 2.57 2.41 2.27 2.14
Window (# of months) 83 78 72 68 64
TO MATURITY
- -----------
Average Life (years) 2.99 2.82 2.66 2.51 2.38
Window (# of months) 240 240 240 240 240
</TABLE>
/(1)/ These assumptions may change and are subject to pricing.
<TABLE>
<CAPTION>
-------------------------------------------------------------------------
ASSET TYPE 100% PREPAYMENT ASSUMPTION
-------------------------------------------------------------------------
<S> <C>
Trucks 1.4% ABS
-------------------------------------------------------------------------
Motorcycles, Aircraft 30% CPR
-------------------------------------------------------------------------
Marine 0% to 14% in 12 months
-------------------------------------------------------------------------
RVs, Sport Vehicles, Horsetrailers,
Pianos 18% CPR
-------------------------------------------------------------------------
</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 receive this statement, call your Lehman Brothers account
executive for another copy.
3
<PAGE>
PREPAYMENT SENSITIVITY INFORMATION
- ----------------------------------
Projected Performance Of Home Equity and Home Improvement Securities
Under Varying Prepayment Assumptions/(1)/
<TABLE>
<CAPTION>
PREPAYMENT ASSUMPTION % 80% 90% **100%** 110% 120%
- ----------------------------- -------- -------- ------------ --------- ---------
<S> <C> <C> <C> <C> <C>
TO CALL
- -------
Average Life (years) 5.53 5.11 4.73 4.39 4.10
Window (# of months) 153 144 134 125 117
TO MATURITY
- -----------
Average Life (years) 5.82 5.40 5.03 4.70 4.40
Window (# of months) 360 360 360 360 360
</TABLE>
/(1)/ These assumptions may change and are subject to pricing.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------
ASSET TYPE 100% PREPAYMENT ASSUMPTION
-----------------------------------------------------------------------------------------
<S> <C>
Home Equity and High LTV Home Improvement 12 month ramp from 2 to 15% CPR
-----------------------------------------------------------------------------------------
Unsecured Home Improvement 18 month ramp from 18 to 23% CPR
-----------------------------------------------------------------------------------------
</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 receive this statement, call your Lehman Brothers account
executive for another copy
4
<PAGE>
SUMMARY DESCRIPTION OF THE INITIAL CONSUMER PRODUCT CONTRACTS
- -------------------------------------------------------------
. As of the Cut-Off Date (3/1/98) the initial consumer product contracts had
the following characteristics:
. fully amortizing or balloon
. fixed contractual rate of interest
. interest computed on the simple interest method.
The Contracts in the initial collateral pool were originated or purchased and
will be serviced by Green Tree Financial Corporation.
. All Contracts have a contractual rate of interest of at least 6.70%
per annum and not more than 21.50%
. The Contracts have remaining maturities of at least 10 months but not
more than 240 months and original maturities of at least 12 months but
not more than 240 months
INITIAL CONSUMER PRODUCT CONTRACTS
<TABLE>
<S> <C>
Aggregate Outstanding Principal Balance $268,501,402
Number of Contracts 11,766
Wgt. Avg. Contract Rate: 10.44%
Range of Rates: 6.70% - 21.50%
Wgt. Avg. Orig. Maturity: 107
Wgt. Avg. Rem. Maturity: 107
Avg. Rem. Princ. Balance: $22,820
</TABLE>
GEOGRAPHIC DISTRIBUTION OF INITIAL CONSUMER PRODUCT CONTRACTS
<TABLE>
<CAPTION>
% of Initial Consumer Product
Number of Aggregate Principal Contracts by Outstanding Principal
State Contracts Balance Outstanding Balance
- --------------------------------------- -------------- ------------------------ --------------------------------------
<S> <C> <C> <C>
CA 1,721 $ 34,198,893.51 12.74%
TX 1,456 31,058,149.98 11.57%
FL 1,105 23,531,134.40 8.76%
Other States* 7,484 179,713,224.18 66.93%
------ --------------- ------
Total/(1)/ 11,766 $268,501,402.07 100.00%
</TABLE>
_______________
* No one State in this category constitutes more than 5% of the Outstanding
Principal Balance of the Initial Consumer Product Contracts.
/(1)/ Percentages do not add to 100% due to rounding
DISTRIBUTION OF ORIGINAL LOAN-TO-VALUE RATIOS OF INITIAL CONSUMER PRODUCT
CONTRACTS
<TABLE>
<CAPTION>
% of Initial Consumer Product
Number of Aggregate Principal Contracts by Outstanding Principal
Loan-to-Value Ratio Contracts Balance Outstanding Balance
---------------------------------- ---------------- ------------------------ -------------------------------------
<S> <C> <C> <C>
Less than 61.00 950 $ 10,633,163.54 3.96%
61.00-65.99 324 4,068,233.83 1.52%
66.00-70.99 475 7,670,487.03 2.86%
71.00-75.99 780 11,697,715.30 4.36%
76.00-80.99 1,179 21,296,684.46 7.93%
81.00-85.99 1,649 29,250,799.44 10.89%
86.00-90.99 3,381 58,690,108.59 21.86%
91.00-95.99 1,451 37,917,216.31 14.12%
96.00-100.00 1,577 87,276,993.57 32.51%
------ --------------- ------
Total/(1)/ 11,766 $268,501,402.07 100.00%
</TABLE>
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not receive this statement, call your Lehman Brothers account
executive for another copy
5
<PAGE>
<TABLE>
<CAPTION>
Aggregate % of Initial Consumer Product
Outstanding Principal Balance Number of Principal Balance Contracts by Outstanding
(in Dollars) Contracts Outstanding Principal Balance
----------------------------------- ---------------- ------------------------ -----------------------------------
<S> <C> <C> <C>
Between $1.00-$9,999.99 5,679 $$30,392,535.43 11.32%
Between $10,000.00-$19,999.99 3,347 47,918,067.14 17.85%
Between $20,000.00-$29,999.99 937 22,406,560.62 8.35%
Between $30,000.00-$39,999.99 430 14,737,184.56 5.49%
Between $40,000.00-$49,999.99 327 14,546,369.30 5.42%
Between $50,000.00-$59,999.99 204 11,093,537.55 4.13%
Between $60,000.00-$69,999.99 159 10,257,584.05 3.82%
Between $70,000.00-$79,999.99 133 9,846,679.47 3.67%
Between $80,000.00-$89,999.99 131 11,114,230.70 4.14%
Between $90,000.00-$99,999.99 122 11,542,493.65 4.30%
Between $100,000.00-$109,999.99 49 5,064,935.78 1.89%
Between $110,000.00-$119,999.99 38 4,348,819.75 1.62%
Between $120,000.00-$129,999.99 29 3,603,873.86 1.34%
Between $130,000.00-$139,999.99 18 2,426,080.04 0.90%
Between $140,000.00-$149,999.99 9 1,307,852.62 0.49%
Between $150,000.00-$159,999.99 19 2,904,357.25 1.08%
Between $160,000.00-$169,999.99 13 2,131,656.24 0.79%
Between $170,000.00-$179,999.99 11 1,914,031.31 0.71%
Between $180,000.00-$189,999.99 13 2,382,362.71 0.89%
Between $190,000.00-$199,999.99 8 1,533,424.87 0.57%
Between $200,000.00-$249,999.99 18 3,944,490.49 1.47%
Between $250,000.00-$299,999.99 13 3,582,632.21 1.33%
Between $300,000.00-$349,999.99 15 4,854,737.89 1.81%
Between $350,000.00-$399,999.99 8 2,939,971.92 1.09%
Between $400,000.00-$449,999.99 5 2,142,449.24 0.80%
Between $450,000.00-$499,999.99 4 1,837,011.20 0.68%
Between $500,000.00-$549,999.99 3 1,542,874.50 0.57%
Between $550,000.00-$599,999.99 1 576,379.80 0.21%
Between $600,000.00-$649,999.99 2 1,269,503.81 0.47%
Between $700,000.00-$749,999.99 2 1,370,632.22 0.51%
Between $750,000.00-$799,999.99 1 772,000.00 0.29%
Between $800,000.00-$999,999.99 4 3,302,179.62 1.23%
Over $999,999.99 14 28,893,902.27 10.76%
------ --------------- ------
Total /(1)/ 11,766 $268,501,402.07 100.00%
</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 receive this statement, call your Lehman Brothers account
executive for another copy.
6
<PAGE>
REMAINING MONTHS TO MATURITY OF INITIAL CONSUMER PRODUCT CONTRACTS
<TABLE>
<CAPTION>
% of Initial Consumer Product
Number of Aggregate Principal Contracts by Outstanding
Months Remaining Contracts Balance Outstanding Principal Balance
----------------------------------- --------------- -------------------------- ----------------------------------
<S> <C> <C> <C>
Less than 31 664 $ 11,065,549.79 4.12%
31-60 5,361 101,039,750.82 37.63%
61-90 2,239 37,778,595.58 14.07%
91-120 1,105 20,916,011.69 7.79%
121-150 1,365 24,930,692.22 9.29%
151-180 896 49,589,634.42 18.47%
181-210 8 565,484.17 0.21%
211-240 128 22,615,683.38 8.42%
------ --------------- ------
Total /(1)/ 11,766 $268,501,402.07 100.00%
</TABLE>
_______________
/(1)/ Percentages do not add to 100% due to rounding
RATES OF INITIAL CONSUMER PRODUCT CONTRACTS
<TABLE>
<CAPTION>
Aggregate % of Initial Consumer Product
Number of Balance Principal Contracts by Outstanding
Range of Rates Contracts Outstanding Principal Balance
----------------------------------- ---------------- ------------------------ --------------------------------------
<S> <C> <C> <C>
From 6.001%-7.000% 2 $ 7,384,143.13 2.75%
From 7.001%-8.000% 60 8,968,592.79 3.34%
From 8.001%-9.000% 675 67,051,863.97 24.97%
From 9.001%-10.000% 1,741 64,181,668.61 23.90%
From 10.001%-11.000% 2,151 45,224,681.26 16.84%
From 11.001%-12.000% 1,813 26,433,663.64 9.84%
From 12.001%-13.000% 1,292 16,790,685.57 6.25%
From 13.001%-14.000% 976 11,851,980.78 4.41%
From 14.001%-15.000% 1,287 9,428,875.64 3.51%
From 15.001%-16.000% 734 5,166,432.18 1.92%
From 16.001%-17.000% 468 3,151,560.13 1.17%
Over 17.000% 567 2,867,254.37 1.07%
------ --------------- ------
Total /(1)/ 11,766 $268,501,402.07 100.00%
</TABLE>
_______________
/(1)/ Percentages do not add to 100% due to rounding
YEAR OF ORIGINATION OF INITIAL CONSUMER PRODUCT CONTRACTS
<TABLE>
<CAPTION>
% of Initial Consumer Product
Number of Aggregate Principal Contracts by Outstanding Principal
Year of Origination Contracts Balance Outstanding Balance
----------------------------------- --------------- ------------------------- ---------------------------------------
<S> <C> <C> <C>
1994 3 $ 34,780.40 0.01%
1995 13 220,714.89 0.08%
1996 60 1,126,227.90 0.42%
1997 1,685 38,025,286.46 14.16%
1998 10,005 229,094,392.42 85.32%
------ --------------- ------
Total /(1)/ 11,766 $268,501,402.07 100.00%
</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 receive this statement, call your Lehman Brothers account
executive for another copy.
7
<PAGE>
Consumer Assets Summary Statistics
- ----------------------------------
<TABLE>
<CAPTION>
% of
% of Initial
Initial Consumer Product Weighted
Consumer Contract Pool Average Weighted
Number Product Scheduled Scheduled Average Weighted Original Average
of Contract Principal Principal Principal Average Scheduled Remaining
Asset Type Contracts Pool Balance Balance Balance Rate Term Term
- ---------------- ------------- ----------- --------------- ---------------- ----------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aircraft 226 1.92% $ 35,514,877.40 13.23% 157,145 9.19% 178 177
Horse Trailers 1,144 9.72% 12,076,860.60 4.50% 10,557 10.98% 118 118
Motorcycles 2,939 24.98% 28,398,340.59 10.58% 9,663 12.89% 68 68
Marine Products 1,874 15.93% 35,101,308.45 13.07% 18,731 10.10% 152 152
Keyboard Instruments 375 3.19% 4,223,575.40 1.57% 11,263 11.05% 96 95
Recreational Vehicles 2,094 17.80% 49,999,325.78 18.62% 23,877 9.71% 162 161
Sport Vehicles 1,967 16.72% 8,856,242.54 3.30% 4,502 15.51% 51 51
Trucks 1,147 9.75% 94,330,871.31 35.13% 82,241 10.12% 52 51
------ ------ --------------- ------ ------- ----- --- ---
Total (1) 11,766 100.00% $268,501,402.07 100.00% 22,820 10.44% 108 107
</TABLE>
_______________
/(1)/ Percentages do not add to 100% due to rounding
The following are the assumed characteristics of Subsequent Contracts as of the
Cut-off Date:
<TABLE>
<CAPTION>
Aggregate Principal Weighted Average Weighted Average Weighted Average
Asset Type Balance Outstanding Original Term Remaining Term Rate
- ------------------- ------------------- ------------- -------------- ----
<S> <C> <C> <C> <C>
Aircraft $ 13,551,208.63 177 177 9.19%
Horse Trailers $ 4,608,098.62 118 118 10.98%
Motorcycles $ 10,835,792.39 68 68 12.89%
Marine Products $ 13,393,405.49 152 152 10.10%
Keyboard Instruments $ 1,611,565.51 95 95 11.05%
Recreational Vehicles $ 19,077,956.75 161 161 9.71%
Sport Vehicles $ 3,379,225.81 51 51 15.51%
Trucks $ 35,993,291.01 51 51 10.21%
--------------- --------------- --------------- ---------------
Total $102,450,544.21 107 107 10.44%
</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 receive this statement, call your Lehman Brothers account
executive for another copy.
8
<PAGE>
SUMMARY DESCRIPTION OF THE HOME EQUITY AND HOME IMPROVEMENT CONTRACTS
- ---------------------------------------------------------------------
. As of the Cut-Off Date (3/1/98) the Home Equity and Home Improvement
Contracts had the following characteristics:
. fully amortizing
. fixed contractual rate of interest
. interest computed on the simple interest method.
The Contracts in the initial collateral pool were originated or purchased and
will be serviced by Green Tree Financial Corporation.
. All Contracts have a contractual rate of interest of at least
8.50% per annum and not more than 21.24%
. The Contracts have remaining maturities of at least 10 months but not
more than 360 months and original maturities of at least 12 months but
not more than 360 months
HOME EQUITY AND HOME IMPROVEMENT CONTRACTS
<TABLE>
<S> <C>
Aggregate Outstanding Principal Balance $129,048,054
Number of Contracts 7,176
Wgt. Avg. Contract Rate: 14.61%
Range of Rates: 8.50% - 21.24%
Wgt. Avg. Orig. Maturity: 208
Wgt. Avg. Rem. Maturity: 206
Avg. Rem. Princ. Balance: $17,983
</TABLE>
GEOGRAPHIC DISTRIBUTION OF HOME EQUITY AND HOME IMPROVEMENT CONTRACTS
<TABLE>
<CAPTION>
% of Home Equity and Home
Number of Aggregate Principal Improvement Contracts by
State Contracts Balance Outstanding Outstanding Principal Balance
- ------------------------------------ ------------------ ------------------------- -----------------------------------
<S> <C> <C> <C>
CA 514 9,827,471.12 7.62%
FL 458 9,334,668.35 7.23%
NY 429 8,214,019.84 6.37%
IL 434 7,796,102.30 6.04%
NC 275 6,523,112.71 5.05%
Other States* 5,066 87,352,679.40 67.69%
----- --------------- ------
Total /(1)/ 7,176 $129,048,053.72 100.00%
</TABLE>
_______________
* No one State in this category constitutes more than 5% of the Outstanding
Principal Balance of the Home Equity and Home Improvement Contracts.
/(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 receive this statement, call your Lehman Brothers account
executive for another copy.
9
<PAGE>
DISTRIBUTION OF ORIGINAL BALANCES OF HOME EQUITY AND HOME IMPROVEMENT CONTRACTS
<TABLE>
<CAPTION>
Aggregate % of Home Equity and Home
Outstanding Principal Balance (in Number of Balance Principal Improvement Contracts by
Dollars) Contracts Outstanding Outstanding Principal Balance
- -------------------------------------- -------------- ----------------------- --------------------------------------
<S> <C> <C> <C>
Between $1.00-$9,999.99 1,486 $ 7,617,107.19 5.90%
Between $10,000.00-$19,999.99 3,168 43,299,104.19 33.55%
Between $20,000.00-$29,999.99 1,542 35,949,188.98 27.86%
Between $30,000.00-$39,999.99 586 19,554,801.49 15.15%
Between $40,000.00-$49,999.99 222 9,408,505.16 7.29%
Between $50,000.00-$59,999.99 58 3,097,218.30 2.40%
Between $60,000.00-$69,999.99 31 1,978,719.65 1.53%
Between $70,000.00-$79,999.99 22 1,644,667.92 1.27%
Between $80,000.00-$89,999.99 15 1,271,574.45 0.99%
Between $90,000.00-$99,999.99 17 1,594,921.43 1.24%
Between $100,000.00-$109,999.99 9 930,504.98 0.72%
Between $110,000.00-$119,999.99 7 791,375.92 0.61%
Between $120,000.00-$129,999.99 5 612,810.47 0.47%
Between $130,000.00-$139,999.99 1 137,680.90 0.11%
Between $140,000.00-$149,999.99 3 431,989.29 0.33%
Between $150,000.00-$159,999.99 1 154,618.42 0.12%
Between $160,000.00-$179,999.99 1 162,764.98 0.13%
Between $180,000.00-$199,999.99 1 180,000.00 0.14%
Between $200,000.00-$249,999.99 1 230,500.00 0.18%
----- --------------- ------
Total /(1)/ 7,176 $129,048,053.72 100.00%
</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 receive this statement, call your Lehman Brothers account
executive for another copy.
10
<PAGE>
REMAINING MONTHS TO MATURITY OF HOME EQUITY AND HOME IMPROVEMENT CONTRACTS
<TABLE>
<CAPTION>
% of Home Equity and Home
Number of Aggregate Principal Improvement Contracts by
Months Remaining Contracts Balance Outstanding Outstanding Principal Balance
----------------------------------- --------------- ------------------------- --------------------------------
<S> <C> <C> <C>
Less than 31 75 $ 275,305.21 0.21%
31-60 855 5,021,585.99 3.89%
61-90 186 1,767,603.91 1.37%
91-120 1,176 14,918,555.67 11.56%
121-150 37 583,808.36 0.45%
151-180 1,800 34,505,963.94 26.74%
181-210 57 912,639.79 0.71%
211-240 2,591 55,015,491.74 42.63%
241-270 1 34,839.72 0.03%
271-300 369 14,049,825.14 10.89%
331-360 29 1,962,434.25 1.52%
----- --------------- ------
Total /(1)/ 7,176 $129,048,053.72 100.00%
</TABLE>
_______________
/(1)/ Percentages do not add to 100% due to rounding
RATES OF HOME EQUITY AND HOME IMPROVEMENT CONTRACTS
<TABLE>
<CAPTION>
% of Home Equity and Home
Number of Aggregate Principal Improvement Contracts by
Range of Rates Contracts Balance Outstanding Outstanding Principal Balance
--------------------------- ------------ ------------------------ ----------------------------------
<S> <C> <C> <C>
From 8.001%-9.000% 31 $ 973,581.16 0.75%
From 9.001%-10.000% 65 2,299,311.25 1.78%
From 10.001%-11.000% 131 6,388,671.31 4.95%
From 11.001%-12.000% 171 6,137,621.01 4.76%
From 12.001%-13.000% 539 14,931,942.39 11.57%
From 13.001%-14.000% 1,274 24,277,021.67 18.81%
From 14.001%-15.000% 872 15,326,843.76 11.88%
From 15.001%-16.000% 1,544 25,649,606.56 19.88%
From 16.001%-17.000% 1,745 21,579,615.44 16.72%
Over 17.000% 804 11,483,839.17 8.90%
----- --------------- ------
Total /(1)/ 7,176 $129,048,053.72 100.00%
</TABLE>
_______________
/(1)/ Percentages do not add to 100% due to rounding
YEAR OF ORIGINATION OF HOME EQUITY AND HOME IMPROVEMENT CONTRACTS
<TABLE>
<CAPTION>
% of Home Equity and Home
Number of Aggregate Principal Improvement Contracts by
Year of Origination Contracts Balance Outstanding Outstanding Principal Balance
------------------------------ ------------- ---------------------- --------------------------------
<S> <C> <C> <C>
1995 1 $ 27,007.40 0.02%
1996 3 99,618.06 0.08%
1997 4,932 85,030,060.45 65.89%
1998 2,240 43,891,367.81 34.01%
----- --------------- ------
Total /(1)/ 7,176 $129,048,053.72 100.00%
</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 receive this statement, call your Lehman Brothers account
executive for another copy.
11
<PAGE>
Home Equity and Home Improvement Summary Statistics
- ---------------------------------------------------
<TABLE>
<CAPTION>
% of Home % of Home Equity
Equity and and Home Average Weighted
Number Home Scheduled Improvement Pool Average Weighted Weighted Average
of Improvement Principal Scheduled Principal Principal Average Original Remaining
Asset Type Contracts Pool Balance Balance Balance Rate Scheduled Term Term
- -------------- ---------- ------------- ------------ --------------------- ----------- -------- ----------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Home Equity 4,736 66.00% 97,073,126 75.22% 20,497 14.95% 213 211
Unsecured Home
Improvement 1,456 20.29% 7,996,764 6.20% 5,492 15.22% 99 99
Debt Consolidation
Home Improvement 984 13.71% 23,978,163 18.58% 24,368 13.06% 223 223
--------- ------------ ------------ --------------------- ----------- ------- ----------------- ---------
Total/(1)/ 7,176 100.00% 129,048,053 100.00% 18,083 14.61% 206 206
</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 receive this statement, call your Lehman Brothers account
executive for another copy.
12
