<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 21, 1998
GREEN TREE FINANCIAL CORPORATION
--------------------------------
(Exact name of registrant as specified in its charter)
01-08916
Delaware [333-49933] 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
- -------------------------------------------------------------------------------
(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.
(c) Exhibits.
The following is filed herewith. The exhibit numbers correspond
with Item 601(b) of Regulation S-K.
2
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Exhibit No. Description
----------- -----------
99 External Computational and Descriptive
Information distributed in connection with
Certificates for Manufactured Housing Contract
Senior/Subordinate Pass-Through Certificates,
Series 1998-6, issued by Green Tree Financial
Corporation, as Seller and Servicer.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
GREEN TREE FINANCIAL CORPORATION
By: /s/ Joel H. Gottesman
-------------------------------
Joel H. Gottesman
Senior Vice President, General Counsel
and Secretary
3
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INDEX TO EXHIBITS
Exhibit Number Filed Electroncially
- -------------- --------------------
99 External Computational and Descriptive Information
distributed in connection with Certificates for
Manufactured Housing Contract Senior/Subordinate
Pass-Through Certificates, Series 1998-6, issued
by Green Tree Financial Corporation, as Seller and
Servicer.
<PAGE>
TERM SHEET DATED JULY 21, 1998
GREEN TREE FINANCIAL CORPORATION
MANUFACTURED HOUSING CONTRACT SENIOR/SUBORDINATE
PASS-THROUGH CERTIFICATES, SERIES 1998-6
$772,000,000 (APPROXIMATE)
- --------------------------------------------------------------------------------
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in light of the same
warnings, lack of assurances, and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, losses and other
matters, including, but not limited to, the assumptions described in the
Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
descriptions of the securities or underlying assets, the information contained
in the Offering Document).
1
<PAGE>
TERM SHEET DATED JULY 21, 1998
GREEN TREE FINANCIAL CORPORATION
MANUFACTURED HOUSING CONTRACT SENIOR/SUBORDINATE
PASS-THROUGH CERTIFICATES, SERIES 1998-6
$772,000,000 (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 (S&P/FITCH) @ 175% MHP MATURITY
------ ----------- ---------- --------
To Call:
A-1 $35,000,000 A-1+ / F-1+ 0.33 03/99
A-2 $98,000,000 AAA / AAA 1.24 07/00
A-3 $50,000,000 AAA / AAA 2.16 02/01
A-4 $103,200,000 AAA / AAA 3.16 07/02
A-5 $108,100,000 AAA / AAA 5.00 12/04
A-6 $73,200,000 AAA / AAA 7.29 01/07
A-7 $94,700,000 AAA / AAA 10.27 02/11
A-8 $113,800,000 AAA / AAA 15.24 01/15
M-1 $56,000,000 AA- / AA- 9.83 01/15
M-2 $16,000,000 A / A 9.83 01/15
B-1 $24,000,000 BBB+ / BBB 6.06 03/07
To Maturity
A-8 $113,800,000 AAA / AAA 16.75 12/22
M-1 $56,000,000 AA- / AA- 10.28 12/22
M-2 $16,000,000 A / A 10.28 12/22
OTHER CERTIFICATES: The Class B-2 Certificates of $28,000,000 are not
offered hereby. They will be retained by the Seller
or an affiliate thereof.
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.
CUT-OFF DATE: July 15, 1998 (or the date of origination, if later)
EXP. PRICING: Week of July 20, 1998
EXP. SETTLEMENT: August 13, 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 September 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.
ERISA: The Class A Certificates are ERISA eligible, subject
to the conditions set forth in the Prospectus
Supplement. The Class M-1, M-2, and B-1 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
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SMMEA: The Class A Certificates and Class 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 M-2 and B-1
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, M-2, B-1
and B-2) plus Excess Spread (Class B-3I)
Class M-1: 8.50% subordination (Class M-2, B-1 and
B-2) plus Excess Spread (Class B-3I)
Class M-2: 6.50% subordination (Class B-1 and B-2)
plus Excess Spread (Class B-3I)
Class B-1: 3.50% 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
$516,451,237.72 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 September 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, M-2
and B-1 Certificates, then to the distribution of
principal on Class A, M-1, M-2 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, M-2, B-1): Interest will be distributable first to each Class of
Class A Certificates concurrently, then to the Class
M-1 Certificates, then to the Class M-2 Certificates
and then to the Class B-1 Certificates. Interest on
the outstanding Class A Principal Balance, Class M-1
Adjusted Principal Balance, Class M-2 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
M-2 Certificates, any accrued and unpaid Class M-2
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 M-2 Adjusted Principal Balance is the Class
M-2 Principal Balance less any Class M-2 Liquidation
Loss Amount. The Class M-2 Principal Balance is the
Original Class M-2 Principal Balance less all amounts
previously distributed on account of principal of the
Class M-2 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
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PRINCIPAL
(Class A, M-1, M-2, B-1): After the payment of all interest distributable to
Class A, Class M-1, Class M-2 and Class B-1
Certificateholders, principal will be distributed in
the following manner.
Class A Percentage will be distributed sequentially
to the Class A-1, A-2, A-3, A-4, A-5, A-6, A-7 and
A-8 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, (ii) if the Class M-1 Distribution Test is
satisfied on such Remittance Date, the Class M-1
Principal Balance, otherwise zero, (iii) if the Class
M-2 Distribution Test is satisfied on such Remittance
Date, the Class M-2 Principal Balance, otherwise
zero, and (iv) 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, (iii) if the Class M-2
Distribution Test is satisfied on such Remittance
Date, the Class M-2 Principal Balance, otherwise
zero, and (iv) 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 September 2002;
(ii) the Average Sixty-Day Delinquency Ratio Test (as
defined in the Agreement) as of such Remittance Date
must not exceed 4.00%; (iii) the Average Thirty-Day
Delinquency Ratio Test (as defined in the Agreement)
as of such Remittance Date must not exceed 6.00%;
(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 2.50%; and
(vi) the sum of the Class M-1 Principal Balance, the
Class M-2 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 M-2 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 has been reduced to zero or (ii)
the Class M-2 Distribution Test is satisfied.
The Class M-2 Percentage for any Remittance Date will
equal (a) zero, if the Class M-1 Principal Balance
has not yet been reduced to zero and the Class M-2
Distribution Test is not satisfied or (b) a fraction,
expressed as a percentage, the numerator of which is
the Class M-2 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, if any, (iii) the Class M-2
Principal Balance, and (iv) 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-2 Distribution Test will be satisfied if
each of the following tests is satisfied: (i) the
Remittance Date occurs in or after September 2002;
(ii) the Average Sixty-Day Delinquency Ratio Test (as
defined in the Agreement) as of such Remittance Date
must not exceed 4.00%; (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 6.00%; (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 2.50%; and
(vi) the sum of the Class M-2 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 12.75%.
The Class B-1 Certificateholders will be entitled to
receive principal on each Remittance Date on which
(i) the Class A Principal Balance, Class M-1
Principal Balance, and Class M-2 Principal 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, the
Class M-1 Principal Balance, and Class M-2 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,
(ii) the Class M-1 Principal Balance, if any, (iii)
the Class M-2 Principal Balance, if any, and (iv) 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 September 2002;
(ii) the Average Sixty-Day Delinquency Ratio Test (as
defined in the Agreement) as of such Remittance Date
must not exceed 4.00%; (iii) the Average Thirty-Day
Delinquency Ratio Test (as defined in the Agreement)
as of such Remittance Date must not exceed 6.00%;
(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 2.50%; (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 9.75%; and (vii) the Class B Principal Balance
must not be less than $16,000,000.
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, Class M-2 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, Class M-2 and Class B-1 Principal Balances
have been reduced to
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>
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, then the Class
M-2 Certificateholders and then the Class M-1
Certificateholders.
CONTRACTS: The information concerning the Initial Contracts
presented below is based on a pool originated through
July 7, 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.
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>
THE INITIAL CONTRACT POOL
Number of MHCs in pool: 12,886
Wgt. Avg. Contract Rate: 9.35%
Range of Rates: 4.00% - 16.75%
Wgt. Avg. Orig. Maturity: 310 mos.
Range of Orig. Maturity: 18-360 mos.
Wgt. Avg. Rem. Maturity: 310 mos.
Range of Rem. Maturity: 18-360 mos.
Avg. Rem Princ. Balance: $40,078.48
Wgt. Avg. LTV: 87.59%
New/Used: 78%/22%
Single/Double: 30%/70%
Park/Private: 30%/70%
GEOGRAPHIC DISTRIBUTION OF INITIAL CONTRACT OBLIGORS
<TABLE>
<CAPTION>
% OF CONTRACT % OF INITIAL CONTRACT POOL
NUMBER POOL BY NUMBER AGGREGATE PRINCIPAL BY OUTSTANDING
STATE OF CONTRACTS OF INITIAL CONTRACTS BALANCE OUTSTANDING PRINCIPAL BALANCE
- ----- ------------ -------------------- ------------------- -----------------
<S> <C> <C> <C> <C>
North Carolina 1,146 8.89% $ 49,748,479.72 9.63%
Texas 1,061 8.23% $ 41,281,144.84 7.99%
Florida 791 6.14% $ 33,360,742.03 6.46%
Michigan 676 5.25% $ 32,421,882.61 6.28%
Georgia 790 6.13% $ 31,053,711.78 6.01%
Alabama 771 5.98% $ 26,038,664.19 5.04%
Other States (1) 7,651 59.37% $302,546,612.55 58.59%
Total (2) 12,886 100.00% $516,451,237.72 100.00%
- -----------------------
</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.
8
<PAGE>
DISTRIBUTION OF ORIGINAL AMOUNTS OF INITIAL CONTRACTS
% OF INITIAL CONTRACT
ORIGINAL CONTRACT NUMBER OF AGGREGATE PRINCIPAL POOL BY OUTSTANDING
AMOUNT (IN DOLLARS)(1) CONTRACTS BALANCE OUTSTANDING PRINCIPAL BALANCE
- ---------------------- --------- ------------------- -----------------
Less than $10,000.01 477 $ 3,673,476.03 0.71%
$10,000.01 - $20,000.00 1,896 $ 28,973,264.61 5.61%
$20,000.01 - $30,000.00 2,715 $ 68,812,047.88 13.32%
$30,000.01 - $40,000.00 2,570 $ 88,858,747.58 17.21%
$40,000.01 - $50,000.00 1,698 $ 75,868,869.64 14.69%
$50,000.01 - $60,000.00 1,329 $ 72,703,453.11 14.08%
$60,000.01 - $70,000.00 824 $ 53,338,218.78 10.33%
$70,000.01 - $80,000.00 502 $ 37,652,783.66 7.29%
$80,000.01 - $90,000.00 327 $ 27,637,133.81 5.35%
$90,000.01 - $100,000.00 254 $ 24,093,900.58 4.67%
$100,000.01 - $110,000.00 120 $ 12,529,604.74 2.43%
$110,000.01 - $120,000.00 71 $ 8,122,293.78 1.57%
$120,000.01 - $130,000.00 43 $ 5,363,776.92 1.04%
$130,000.01 - $140,000.00 21 $ 2,839,947.35 0.55%
$140,000.01 - $150,000.00 19 $ 2,616,290.46 0.51%
$150,000.01 - $160,000.00 10 $ 1,544,702.19 0.30%
$160,000.01 - $170,000.00 6 $ 986,021.66 0.19%
$170,000.01 - $180,000.00 1 $ 174,269.30 0.03%
$180,000.01 - $190,000.00 2 $ 365,667.03 0.07%
$190,000.00 and above 1 $ 296,768.61 0.06%
- --------------- -------
12,886 $516,451,237.72 100.00%
Total (2)
- -----------------------
(1) The largest original Contract amount is $296,768.61, which represents
0.06% 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.
9
<PAGE>
CONTRACT RATES OF INITIAL CONTRACTS
% OF INITIAL CONTRACT POOL
RANGE OF CONTRACTS NUMBER OF AGGREGATE PRINCIPAL BY OUTSTANDING
BY CONTRACT RATE CONTRACTS BALANCE OUTSTANDING PRINCIPAL BALANCE
- ------------------ --------- ------------------- -----------------
0.00% - 4.00% 1 $ 106,905.86 0.02%
4.01% - 5.00% 4 $ 230,219.89 0.04%
5.01% - 6.00% 37 $ 2,284,635.38 0.44%
6.01% - 7.00% 1,007 $ 77,199,540.03 14.95%
7.01% - 8.00% 1,554 $ 88,261,440.82 17.09%
8.01% - 9.00% 1,920 $ 95,220,978.16 18.44%
9.01% - 10.00% 2,181 $ 89,781,669.22 17.38%
10.01% - 11.00% 2,141 $ 72,312,054.87 14.00%
11.01% - 12.00% 2,125 $ 53,892,650.28 10.44%
12.01% - 13.00% 1,220 $ 26,385,838.08 5.11%
13.01% - 14.00% 493 $ 8,654,620.73 1.68%
14.01% - 15.00% 15 $ 279,305.93 0.05%
15.01% - 16.00% 161 $ 1,591,863.41 0.31%
16.01% - 17.00% 27 $ 249,515.06 0.05%
------ --------------- -------
12,886 $516,451,237.72 100.00%
Total (1)
(1) Percentages do not add to 100% due to rounding.
DISTRIBUTION OF ORIGINAL LOAN-TO-VALUE RATIOS OF INITIAL CONTRACTS
% OF INITIAL CONTRACT POOL
NUMBER OF AGGREGATE PRINCIPAL BY OUTSTANDING
LOAN-TO-VALUE RATIO CONTRACTS BALANCE OUTSTANDING PRINCIPAL BALANCE
- ------------------- --------- ------------------- -----------------
Less than 5.000% 1 $ 34,384.68 0.01%
5.001 % - 10.000% 3 $ 99,961.41 0.02%
10.001 % - 15.000% 4 $ 172,018.52 0.03%
15.001 % - 20.000% 15 $ 300,634.24 0.06%
20.001 % - 25.000% 15 $ 232,243.31 0.04%
25.001 % - 30.000% 16 $ 374,241.40 0.07%
30.001 % - 35.000% 31 $ 826,664.80 0.16%
35.001 % - 40.000% 33 $ 671,946.96 0.13%
40.001 % - 45.000% 66 $ 1,739,433.41 0.34%
45.001 % - 50.000% 87 $ 2,761,653.80 0.53%
50.001 % - 55.000% 96 $ 3,123,045.32 0.60%
55.001 % - 60.000% 113 $ 4,208,832.55 0.81%
60.001 % - 65.000% 181 $ 6,092,312.48 1.18%
65.001 % - 70.000% 268 $ 10,626,639.41 2.06%
70.001 % - 75.000% 335 $ 14,378,929.03 2.78%
75.001 % - 80.000% 997 $ 39,692,002.23 7.69%
80.001 % - 85.000% 1,367 $ 57,905,233.38 11.21%
85.001 % - 90.000% 4,383 $181,433,843.17 35.13%
90.001 % - 95.000% 4,129 $162,903,852.54 31.54%
95.001 % - 100.000% 746 $ 28,873,365.08 5.59%
--- ---------------- -------
12,886 $516,451,237.72 100.00%
Total(1)
- -----------------------
(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.
10
<PAGE>
REMAINING MONTHS TO MATURITY OF INITIAL CONTRACTS
% OF INITIAL CONTRACT POOL
NUMBER OF AGGREGATE PRINCIPAL BY OUTSTANDING
MONTHS REMAINING CONTRACTS BALANCE OUTSTANDING PRINCIPAL BALANCE
- ---------------- --------- ------------------- -----------------
Less than 31 8 $ 48,853.69 0.01%
31 - 60 254 $ 2,215,626.27 0.43%
61 - 90 312 $ 4,293,502.55 0.83%
91 - 120 872 $ 14,107,636.75 2.73%
121 - 150 316 $ 6,778,197.84 1.31%
151 - 180 1,845 $ 44,662,339.51 8.65%
181 - 210 76 $ 2,883,154.58 0.56%
211 - 240 2,018 $ 64,048,700.56 12.40%
241 - 270 31 $ 1,535,925.86 0.30%
271 - 300 1,113 $ 39,946,973.31 7.73%
301 - 330 33 $ 2,034,559.65 0.39%
331 - 360 6,008 $333,895,767.15 64.65%
------ ---------------- -------
12,886 $516,451,237.72 100.00%
Total (1)
(1) Percentages do not add to 100% due to rounding.
YEARS OF ORIGINATION OF INITIAL CONTRACTS
% OF INITIAL CONTRACT
NUMBER OF AGGREGATE PRINCIPAL POOL BY OUTSTANDING
YEAR OF ORIGINATION (1) CONTRACTS BALANCE OUTSTANDING PRINCIPAL BALANCE
- ----------------------- --------- ------------------- ---------------------
1988 2 $ 54,531.36 0.01%
1989 6 $ 92,772.80 0.02%
1990 2 $ 53,708.11 0.01%
1991 3 $ 40,321.98 0.01%
1992 7 $ 190,601.71 0.04%
1993 6 $ 203,264.97 0.04%
1994 37 $ 1,650,615.70 0.32%
1995 45 $ 2,527,615.53 0.49%
1996 82 $ 4,812,377.18 0.93%
1997 109 $ 8,560,336.55 1.66%
1998 12,587 $498,265,091.83 96.48%
------ --------------- -------
12,886 $516,451,237.72 100.00%
Total (2)
- -----------------------
(1) The Contracts shown in the above table with earlier years of origination
primarily represent Contracts originated by the Company and subsequently
refinanced through the Company. The Company retains the first origination
dates on its records with respect to such refinanced Contracts.
(2) Percentages do not add to 100% due to rounding.
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>
MHP PREPAYMENT SENSITIVITIES(1)
100% MHP 125% MHP 150% MHP 175% MHP
WAL/MATURITY WAL/MATURITY WAL/MATURITY WAL/MATURITY
To Call
A-1 0.47 07/99 0.41 05/99 0.37 04/99 0.33 03/99
A-2 1.81 05/01 1.57 01/01 1.38 09/00 1.24 07/00
A-3 3.20 05/02 2.75 10/01 2.41 06/01 2.16 02/01
A-4 4.76 08/04 4.07 10/03 3.56 02/03 3.16 07/02
A-5 7.66 02/08 6.59 11/06 5.76 11/05 5.00 12/04
A-6 10.93 02/11 9.47 07/09 8.32 03/08 7.29 01/07
A-7 14.84 03/16 13.06 03/14 11.60 07/12 10.27 02/11
A-8 20.67 07/20 18.63 06/18 16.86 09/16 15.24 01/15
M-1 13.50 07/20 11.91 06/18 10.62 09/16 9.83 01/15
M-2 13.50 07/20 11.91 06/18 10.62 09/16 9.83 01/15
B-1 8.54 09/10 7.32 02/09 6.42 11/07 6.06 03/07
To Maturity
A-8 22.04 09/26 20.17 09/25 18.38 06/24 16.75 12/22
M-1 13.89 09/26 12.33 09/25 11.05 06/24 10.28 12/22
M-2 13.89 09/26 12.33 09/25 11.05 06/24 10.28 12/22
200% MHP 250% MHP 300% MHP 350% MHP
WAL/MATURITY WAL/MATURITY WAL/MATURITY WAL/MATURITY
To Call
A-1 0.30 03/99 0.26 02/99 0.23 01/99 0.20 01/99
A-2 1.12 05/00 0.95 02/00 0.82 11/99 0.73 10/99
A-3 1.96 11/00 1.67 07/00 1.45 04/00 1.28 02/00
A-4 2.85 02/02 2.39 07/01 2.08 03/01 1.84 11/00
A-5 4.38 02/04 3.55 12/02 3.04 04/02 2.67 10/01
A-6 6.42 02/06 5.07 07/04 4.11 06/03 3.53 08/02
A-7 9.13 11/09 7.35 09/07 6.01 02/06 4.94 11/04
A-8 13.82 07/13 11.53 03/11 9.74 05/09 8.36 01/08
M-1 9.20 07/13 8.22 03/11 7.47 05/09 6.90 01/08
M-2 9.20 07/13 8.22 03/11 7.47 05/09 6.90 01/08
B-1 5.84 09/06 5.50 12/05 5.26 06/05 5.08 01/05
To Maturity
A-8 15.26 06/21 12.79 06/18 10.82 11/15 9.24 09/13
M-1 9.67 06/21 8.70 06/18 7.97 11/15 7.40 09/13
M-2 9.67 06/21 8.70 06/18 7.97 11/15 7.40 09/13
(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 120 $11,329,854.07 103 103 11.523%
121 to 180 $28,210,685.07 174 174 10.823%
181 to 240 $36,774,258.32 237 237 10.301%
241 to 300 $22,797,136.29 298 298 10.207%
301 to 360 $184,436,828.53 359 359 8.688%
--------------- --- --- -------
Total $283,548,762.28 310 310 9.345%
</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.
12
