<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): September 8, 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
$850,000,000 (Approximate) Manufactured
Housing Contract Senior/Subordinate Pass-
Through Certificates, Series 1998-7, 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: September 8, 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
$850,000,000 (Approximate) Manufactured Housing
Contract Senior/Subordinate Pass-Through
Certificates, Series 1998-7, issued by
Green Tree Financial Corporation, as Seller
and Servicer.
4
<PAGE>
Exhibit 99
TERM SHEET DATED SEPTEMBER 8, 1998
GREEN TREE FINANCIAL CORPORATION
MANUFACTURED HOUSING CONTRACT SENIOR/SUBORDINATE
PASS-THROUGH CERTIFICATES, SERIES 1998-7
$850,000,000 (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 SEPTEMBER 8, 1998
GREEN TREE FINANCIAL CORPORATION
MANUFACTURED HOUSING CONTRACT SENIOR/SUBORDINATE
PASS-THROUGH CERTIFICATES, SERIES 1998-7
$850,000,000 (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/FITCH) @ 175% MHP MATURITY
------------ --------------- ---------- ---------
To Call:
A-1 $718,250,000 Aaa / AAA 6.35 12/14
M-1 $ 46,750,000 Aa2 / AA- 9.80 12/14
M-2 $ 25,500,000 A2 / A 9.80 12/14
B-1 $ 25,500,000 Baa1 / BBB 5.90 11/06
B-2 $ 34,000,000 Baa3 / BBB 13.16 12/14
To Maturity
A-1 $718,250,000 Aaa / AAA 6.61 12/22
M-1 $ 46,750,000 Aa2 / AA- 10.26 12/22
M-2 $ 25,500,000 A2 / A 10.26 12/22
B-2 $ 34,000,000 Baa3 / BBB 18.35 12/28
CUT-OFF DATE: August 15, 1998 (or the date of origination, if
later)
EXP. PRICING: Week of September 7, 1998
EXP. SETTLEMENT: September 30, 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 November 2, 1998.
ERISA: The Class A-1 Certificates are ERISA eligible,
subject to the conditions set forth in the
Prospectus Supplement. The Class M-1, M-2, 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".
SMMEA: The Class A-1 Certificates and Class M-1
Certificates will constitute "mortgage related
securities" under the Secondary Mortgage Market
Enhancement Act of 1984 ("SMMEA") and will be "legal
investments" for certain types of institutional
investors to the extent provided in SMMEA. The Class
M-2, 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.
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>
STRUCTURE
CREDIT ENHANCEMENT: Class A-1: 15.50% subordination (Class M-1, M-2,
B-1 and B-2) plus Excess Spread (Class B-3I)
Class M-1: 10.00% subordination (Class M-2, B-1 and
B-2) plus Excess Spread (Class B-3I)
Class M-2: 7.00% subordination (Class B-1 and B-2)
plus Excess Spread (Class B-3I)
Class B-1: 4.00% 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
$476,416,882.73 as of the Cut-off Date (the "Initial
Contracts") and (ii) additional manufactured housing
contracts (the "Additional Contracts"). The Initial
Contracts and Additional Contracts will have an
aggregate principal balance of approximately
$850,000,000 as of the Cut-off Date.
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 November 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-1, M-1, M-2 and B-1
Certificates, then to the distribution of principal
on Class A-1, 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-1, M-1, M-2, B-1): Interest will be distributable first to the Class
A-1 Certificates, 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-1 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.
Each 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
<PAGE>
PRINCIPAL
(Class A-1, M-1, M-2, B-1): After the payment of all interest distributable to
Class A-1, Class M-1, Class M-2 and Class B-1
Certificateholders, principal will be distributed in
the following manner.
The Class A-1 Percentage for any Remittance Date
will equal a fraction, expressed as a percentage,
the numerator of which is the Class A-1 Principal
Balance as of such Remittance Date, and the
denominator of which is the sum of: (i) the Class
A-1 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-1 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-1 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-1 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 November 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-1 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 A-1 Principal
Balance and Class M-1 Principal Balance have 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-1 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 November 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
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>
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 15.00%.
The Class B-1 Certificateholders will be entitled to
receive principal on each Remittance Date on which
(i) the Class A-1 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-1 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-1 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 November 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 10.50%; and
(vii) the Class B Principal Balance must not be less
than $17,000,000.
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-1, 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-1,
Class M-1, Class M-2 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.
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>
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 August 21, 1998. Green Tree intends to
acquire and sell to the Trust Additional Contracts
on the Closing Date. Although the characteristics of
the final pool of Contracts will differ from the
characteristics of the Initial Contracts shown
below, Green Tree does not expect that the
characteristics of the Additional Contracts sold to
the Trust will vary materially from the information
concerning the Initial Contracts herein.
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: 11,375
Wgt. Avg. Contract Rate: 9.04%
Range of Rates: 3.23% - 16.75%
Wgt. Avg. Orig. Maturity: 318 mos.
Range of Orig. Maturity: 24-360 mos.
Wgt. Avg. Rem. Maturity: 316 mos.
Range of Rem. Maturity: 20-360 mos.
Avg. Rem Princ. Balance: $41,882.80
Wgt. Avg. LTV: 86.76%
New/Used: 82%/18%
Single/Double: 26%/74%
Park/Private: 24%/76%
GEOGRAPHIC DISTRIBUTION OF INITIAL CONTRACT PROPERTY LOCATION
<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 1,574 13.84% $ 65,335,319.90 13.71%
South Carolina 773 6.80% 32,854,834.70 6.90%
Florida 617 5.42% 31,055,449.25 6.52%
Michigan 585 5.14% 30,903,007.42 6.49%
Texas 735 6.46% 24,897,731.29 5.23%
Other States (1) 7,091 62.34% 291,370,540.17 61.16%
------ ------- --------------- -------
Total (2) 11,375 100.00% $476,416,882.73 100.00%
</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
<TABLE>
<CAPTION>
% OF INITIAL 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 $10,000.01 429 $ 3,333,067.45 0.70%
$10,000.01 - $20,000.00 1,871 23,449,980.54 4.92%
$20,000.01- $30,000.00 2,153 50,282,659.32 10.55%
$30,000.01 - $40,000.00 1,915 64,911,363.28 13.62%
$40,000.01 - $50,000.00 1,323 59,167,794.06 12.42%
$50,000.01 - $60,000.00 1,073 58,815,652.41 12.35%
$60,000.01 - $70,000.00 838 54,221,167.03 11.38%
$70,000.01 - $80,000.00 584 43,495,926.10 9.13%
$80,000.01 - $90,000.00 452 38,372,142.65 8.05%
$90,000.01 - $100,000.00 302 28,626,309.38 6.01%
$100,000.01 - $110,000.00 183 19,107,466.45 4.01%
$110,000.01 - $120,000.00 107 12,281,367.31 2.58%
$120,000.01 - $130,000.00 56 6,991,055.61 1.47%
$130,000.01 - $140,000.00 31 4,166,096.39 0.87%
$140,000.01 - $150,000.00 25 3,614,291.24 0.76%
$150,000.01 - $160,000.00 16 2,487,879.87 0.52%
$160,000.01 - $170,000.00 9 1,476,015.03 0.31%
$170,000.01- $180,000.00 3 520,403.18 0.11%
$180,000.01 - $190,000.00 1 189,347.84 0.04%
$200,000.00 and above 4 906,897.59 0.19%
------ --------------- -------
Total (2) 11,375 $476,416,882.73 100.00%
</TABLE>
- --------------------
(1) The largest original Contract amount is $268,436.61, 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 BY NUMBER OF AGGREGATE PRINCIPAL BY OUTSTANDING
CONTRACT RATE CONTRACTS BALANCE OUTSTANDING PRINCIPAL BALANCE
- ------------- --------- ------------------- -------------------------
3.01% - 4.00% 1 $ 70,458.41 0.01%
4.01% - 5.00% 5 298,809.43 0.06%
5.01% - 6.00% 33 2,155,808.91 0.45%
6.01% - 7.00% 1,240 99,857,401.77 20.96%
7.01% - 8.00% 1,490 91,555,136.62 19.22%
8.01% - 9.00% 1,738 94,040,049.57 19.74%
9.01% - 10.00% 1,599 66,794,840.28 14.02%
10.01% - 11.00% 1,544 51,484,981.73 10.81%
11.01% - 12.00% 1,511 37,581,520.44 7.89%
12.01% - 13.00% 828 17,999,944.30 3.78%
13.01% - 14.00% 481 7,529,850.60 1.58%
14.01% - 15.00% 734 5,599,082.95 1.18%
15.01% - 16.00% 153 1,290,567.99 0.27%
16.01% - 17.00% 18 158,429.73 0.03%
------ --------------- -------
Total 11,375 $476,416,882.73 100.00%
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 5.001% 2 $ 67,853.26 0.01%
5.001 % - 10.000% 4 251,983.29 0.05%
10.001 % - 15.000% 2 112,926.24 0.02%
15.001 % - 20.000% 11 357,112.42 0.07%
20.001 % - 25.000% 20 426,576.97 0.09%
25.001 % - 30.000% 25 381,668.84 0.08%
30.001 % - 35.000% 20 659,452.26 0.14%
35.001 % - 40.000% 39 1,243,057.67 0.26%
40.001 % - 45.000% 57 1,773,750.78 0.37%
45.001 % - 50.000% 85 2,577,976.36 0.54%
50.001 % - 55.000% 113 3,800,010.01 0.80%
55.001 % - 60.000% 117 5,071,955.66 1.06%
60.001 % - 65.000% 161 7,142,832.21 1.50%
65.001 % - 70.000% 248 11,017,622.56 2.31%
70.001 % - 75.000% 331 16,154,261.96 3.39%
75.001 % - 80.000% 908 38,238,565.29 8.03%
80.001 % - 85.000% 1,298 57,289,845.93 12.03%
85.001 % - 90.000% 4,138 168,110,465.00 35.29%
90.001 % - 95.000% 3,192 137,342,247.64 28.83%
95.001 % - 100.000% 604 24,396,718.38 5.12%
------ --------------- -------
Total(1) 11,375 $476,416,882.73 100.00%
- --------------------
(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 31 702 $ 3,792,714.13 0.80%
31 - 60 187 1,717,080.60 0.36%
61 - 90 599 8,868,546.15 1.86%
91 - 120 554 8,841,664.81 1.86%
121 - 150 190 4,038,232.06 0.85%
151 - 180 1,262 30,870,009.26 6.48%
181 - 210 61 2,315,896.95 0.49%
211 - 240 1,428 46,450,438.49 9.75%
241 - 270 44 2,425,779.51 0.51%
271 - 300 755 27,328,816.98 5.74%
301 - 330 34 2,253,633.66 0.47%
331 - 360 5,559 337,514,070.13 70.84%
------ --------------- -------
Total (1) 11,375 $476,416,882.73 100.00%
(1) Percentages do not add to 100% due to rounding.
YEARS OF ORIGINATION OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% OF INITIAL CONTRACT POOL
NUMBER OF AGGREGATE PRINCIPAL BY OUTSTANDING
YEAR OF ORIGINATION (1) CONTRACTS BALANCE OUTSTANDING PRINCIPAL BALANCE
- ----------------------- --------- ------------------- -----------------------
<S> <C> <C> <C>
1984 1 $ 5,424.55 *
1985 715 5,353,925.35 1.12%
1986 116 928,950.14 0.19%
1991 1 15,733.98 *
1992 3 85,253.15 0.02%
1993 4 167,649.33 0.04%
1994 42 2,124,958.21 0.45%
1995 55 3,059,962.17 0.64%
1996 102 7,096,778.35 1.49%
1997 112 8,840,102.02 1.86%
1998 10,224 448,738,145.48 94.19%
------ --------------- -------
Total 11,375 $476,416,882.73 100.00%
</TABLE>
- --------------------
* Indicates a percentage greater than 0% but less than 0.005%
(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.
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 9.09 06/20 8.01 05/18 7.14 08/16 6.35 12/14
M-1 13.32 06/20 11.79 05/18 10.52 08/16 9.80 12/14
M-2 13.32 06/20 11.79 05/18 10.52 08/16 9.80 12/14
B-1 8.13 01/10 7.02 08/08 6.15 05/07 5.90 11/06
B-2 17.84 06/20 15.94 05/18 14.38 08/16 13.16 12/14
To Maturity
A-1 9.33 09/26 8.27 09/25 7.40 05/24 6.61 12/22
M-1 13.71 09/26 12.23 09/25 10.95 05/24 10.26 12/22
M-2 13.71 09/26 12.23 09/25 10.95 05/24 10.26 12/22
B-2 21.48 12/28 20.32 12/28 19.28 12/28 18.35 12/28
200% MHP 250% MHP 300% MHP 350% MHP
WAL/MATURITY WAL/MATURITY WAL/MATURITY WAL/MATURITY
To Call
A-1 5.70 07/13 4.68 04/11 3.93 06/09 3.37 02/08
M-1 9.19 07/13 8.23 04/11 7.48 06/09 6.91 02/08
M-2 9.19 07/13 8.23 04/11 7.48 06/09 6.91 02/08
B-1 5.70 06/06 5.40 10/05 5.19 04/05 5.02 12/04
B-2 12.13 07/13 10.53 04/11 9.26 06/09 8.34 02/08
To Maturity
A-1 5.94 06/21 4.89 05/18 4.12 12/15 3.52 10/13
M-1 9.67 06/21 8.71 05/18 7.99 12/15 7.42 10/13
M-2 9.67 06/21 8.71 05/18 7.99 12/15 7.42 10/13
B-2 17.46 12/28 15.69 12/28 14.09 12/28 12.76 12/28
(1) The following are the assumed characteristics of the Additional 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 $ 18,955,107.47 102 102 11.777%
121 to 180 $ 52,520,371.68 174 174 10.800%
181 to 240 $ 70,565,970.27 237 237 10.498%
241 to 300 $ 42,594,672.70 299 299 10.493%
301 to 360 $188,946,995.15 359 359 9.194%
--------------- --- --- -------
Total $373,583,117.27 290 290 9.945%
</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
