<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): February 10, 1998
GREEN TREE FINANCIAL CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 01-08916 41-1807858
- ---------------------------- ------------------------ -------------------
(State or other Jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
1100 Landmark Towers, 345 St. Peter Street, Saint Paul, Minnesota 55102-1639
- -------------------------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: (612) 293-3400
--------------
Not Applicable
- -------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
ITEM 1. Changes in Control of Registrant.
- ------- --------------------------------
Not applicable.
ITEM 2. Acquisition or Disposition of Assets.
- ------- ------------------------------------
Not applicable
ITEM 3. Bankruptcy or Receivership.
- ------- --------------------------
Not applicable
ITEM 4. Changes in Registrant's Certifying Accounting.
- ------- ---------------------------------------------
Not applicable
ITEM 5. Other Events.
- ------- ------------
Not applicable.
ITEM 6. Resignations of Registrant's Directors.
- ------- --------------------------------------
Not applicable
ITEM 7. Financial Statements and Exhibits.
- ------- ---------------------------------
(a) Financial statements of businesses acquired.
Not applicable
(b) Pro forma financial information.
Not applicable
2
<PAGE>
(c) Exhibits.
The following is filed herewith. The exhibit numbers correspond
with Item 601(b) of Regulation S-K.
Exhibit No. Description
----------- -----------
99 Term Sheet distributed in connection with
$400,000,000 (Approximate) Certificates for
Home Equity Loans, Series 1998-A, 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: February 12, 1998 GREEN TREE FINANCIAL CORPORATION
By: /s/ Scott T. Young
_____________________________
Scott T. Young
Vice President and Controller
3
<PAGE>
INDEX TO EXHIBITS
Exhibit
-------
Number Page
------ ----
99 Term Sheet distributed in connection with 5
$400,000,000 (Approximate) Certificates for
Home Equity Loans, Series 1998-A, issued by
Green Tree Financial Corporation, as Seller
and Servicer.
4
<PAGE>
TERM SHEET DATED FEBRUARY 10, 1998
GREEN TREE FINANCIAL CORPORATION
CERTIFICATES FOR HOME EQUITY LOANS, SERIES 1998-A
$400,000,000 (APPROXIMATE)
Subject to Revision
SELLER/SERVICER: Green Tree Financial Corporation ("Green Tree")
TRUSTEE: First Trust National Association
UNDERWRITERS: Salomon Smith Barney (Lead), Credit Suisse First Boston (Co.)
and Lehman Brothers (Co.)
<TABLE>
<CAPTION>
RATINGS WAL AT EXP. FINAL
AMOUNT S&P/FITCH 125% OF BASE /(1)/ MATURITY
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TO CALL:
A-1 ARM $ 75,000,000 AAA/AAA 2.45 11/04
A-1 $129,000,000 AAA/AAA 1.02 01/00
A-2 $ 65,000,000 AAA/AAA 2.55 05/01
A-3 $ 57,000,000 AAA/AAA 4.25 06/04
A-4 NAS $ 20,000,000 AAA/AAA 5.34 06/04
A-5 IO /(2)/ N/A AAA/AAA 2.99 02/01
M-1 $ 29,000,000 AA/AA 7.33 08/05
M-2 $ 19,000,000 A/A 7.49 08/05
B $ 6,000,000 BBB/BBB 4.14 09/03
TO MATURITY:
M-1 $ 29,000,000 AA/AA 7.80 05/07
M-2 $ 19,000,000 A/A 11.65 03/28
B $ 6,000,000 BBB/BBB 4.14 09/03
------------
BALANCE $400,000,000
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
_________________________________
/(1)/ The Certificates for Home Equity Loans (other than the Class A-1 ARM
Certificates) will be priced using 125% of the Base Prepayment Assumption. The
Base Prepayment Assumption assumes a conditional prepayment rate of 4% per annum
of the then outstanding principal balance of the Fixed Rate Home Equity Loans in
the first month of the life of the Fixed Rate Home Equity Loans and an
additional 1.45% per annum in each month thereafter until the twelfth month.
Beginning in the twelfth month and in each month thereafter, the conditional
prepayment rate of 20% is assumed. The Class A-1 ARM Certificates will be priced
using a constant prepayment rate of 30% CPR.
/(2)/ Interest will be based on a notional principal amount which will equal
$20,000,000 (or the Class A-4 Principal Balance for such Payment Date, if less)
for the first 36 Payment Dates, and will thereafter, equal zero. The Class A-5
IO Certificates are interest-only Certificates and are not entitled to receive
distributions of principal.
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Advisor immediately.
<PAGE>
CUT-OFF DATE: December 31, 1997 (or the date of origination, if
later)
EXP. PRICING: February 12, 1998
EXP. SETTLEMENT: February 19, 1998
LEGAL FINAL: [April 2029]
INTEREST/PRINCIPAL: The 15/th/ day of each month, or if such 15/th/ day
is not a business day, the next succeeding business
day commencing on March 16, 1998 (each such date, a
"Payment Date").
ERISA: Only the Class A Certificates are ERISA eligible.
TAX STATUS: The Trust will consist of two segregated asset
pools with respect to which elections will be made
to treat each as a "real estate mortgage investment
conduit" (a "REMIC") for federal income tax
purposes.
OPTIONAL REDEMPTION: 10% cleanup call.
ADDITIONAL COLLATERAL: The data set forth below is based solely on the
Loans identified for inclusion in the Trust as of
the Cut-off Date ("Initial Loans"). Certain
additional Loans may be purchased by the Trust on
the Closing Date and for a limited period following
the Closing Date ("Subsequent Loans"). It is
expected that the Subsequent Loans will have
characteristics which are substantially similar to
the Initial Loans.
CERTIFICATE STRUCTURE
---------------------
CREDIT ENHANCEMENT: On the Closing Date:
Class A: 13.50% subordination
Class M-1: 6.25% subordination
Class M-2: 1.50% subordination
Class B: 0.00% subordination
On the first Payment Date following the date on
which the sum of all prior distributions of Extra
Principal Distribution Amount (defined herein)
equals $5,000,000:
Class A: 14.75% subordination
Class M-1: 7.50% subordination
Class M-2: 2.75% subordination
Class B: 1.25% subordination
DISTRIBUTIONS: The Trust includes adjustable-rate closed-end home
equity loans subject to interest rate adjustments
after an initial period of up to 36
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Advisor immediately.
<PAGE>
months (the "Adjustable Rate Loans", all Loans
other than the Adjustable Rate Loans are referred
to herein as the "Fixed Rate Loans").
The "Amount Available" will generally consist of
payments made on or in respect of the Loans, and
will include amounts otherwise payable to the
Servicer (as long as Green Tree is the Servicer) as
the Monthly Servicing Fee with respect to the
Loans, and to the Class C Certificateholder.
The Amount Available will generally be applied
first to the distributions to the Class A
Certificateholders, then to the Class M
Certificateholders, and then to the Class B
Certificateholders.
Class A Certificates are senior to Class M and
Class B Certificates. Class M Certificates are
senior to the Class B Certificates.
PRE-FUNDING FEATURE: On the Closing Date, a portion of the proceeds from
the sale of the Certificates (the "Pre-Funded
Amount") will be deposited with the Trustee in a
segregated account (the "Pre-Funding Account") and
used by the Trust to purchase Subsequent Loans
during the Pre-Funding Period. The Pre-Funded
Amount will be reduced during the Pre-Funding
Period by the amounts thereof used to fund such
purchases. Amounts remaining in the Pre-Funding
Account following the Pre-Funding Period will be
(i) paid in respect of each class of Class A
Certificates (other than the Class A-1 ARM and
Class A-5 IO Certificates) on a pro-rata basis in
the case of amounts which had been allocated to
fund the purchase of Subsequent Loans which are
Fixed Rate Loans, and (ii) paid in respect of the
Class A-1 ARM Certificates in the case of amounts
which had been allocated to fund the purchase of
Subsequent Loans which are Adjustable Rate Loans.
LOSSES ON LIQUIDATED LOANS: If Net Liquidation Proceeds from Liquidated Loans
in the respective collection period are less than
the Scheduled Principal Balance of such Liquidated
Loans plus accrued and unpaid interest thereon, the
deficiency will be absorbed by the Class C
Certificateholder, then the Monthly Servicing Fee
otherwise payable to the Servicer (as long as Green
Tree is the Servicer), then the Class B
Certificateholders, then the Class M-2
Certificateholders and then the Class M-1
Certificateholders.
CLASS A INTEREST: Interest will be paid concurrently on each Class of
Class A Certificates at the related Pass-Through
Rate on the then outstanding related Class
Principal Balance (in the case of Class A
Certificates other than the Class A-5 IO
Certificates). Interest on the Class A-5 IO
Certificates will be based on a notional principal
amount which will equal $20,000,000 (or the Class
A-4 Principal Balance for such Payment Date, if
less) for the first 36 Payment Dates, and will
thereafter, equal zero. Interest will initially
accrue from the Settlement Date and thereafter will
accrue from the most recent Payment Date on which
interest has been paid, in each case, to but
excluding the following Payment Date.
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Advisor immediately.
<PAGE>
The Class A-1 ARM Certificates will bear interest
at a variable Pass-Through Rate calculated on an
actual/360 basis. The Pass-Through Rate for the
Class A-1 ARM Certificates for any Payment Date
will equal the lesser of one-month LIBOR plus the
applicable Pass-Through Margin; the applicable
Available Funds Pass-Through Rate; or 14.00%.
The "Pass-Through Margin" will equal [ ]%per annum
for the Class A-1 Certificates, through the Payment
Date on which the principal balance of the Loans is
10% or more of the Principal Balance of the Loans
as of the Cut-off Date, and 2x the initial Pass-
Through Margin per annum on each Payment Date on
which the principal balance of the Loans is less
than 10% of the Principal Balance of the Loans as
of the Cut-off Date.
"Available Funds Pass-Through Rate" means, for any
Payment Date, the rate per annum equal to the
weighted average of the Expense Adjusted Mortgage
Rates on the then outstanding Adjustable Rate
Loans.
"Expense Adjusted Mortgage Rate" means, with
respect to any Loan, the then applicable Loan
Interest Rate thereon, minus the Expense Fee Rate,
which is [0.75]% per annum (equal to the sum of the
servicing fee and the trustee fee).
Each other Class of Class A Certificates will bear
interest at a fixed Pass-Through Rate calculated on
a 30/360 basis. Interest shortfalls will be carried
forward, and will bear interest at the applicable
Class A Pass-Through Rate, to the extent legally
permissible.
CLASS A PRINCIPAL: After payment of interest distributable to the
Class A Certificateholders, the Class A-1 ARM
Formula Principal Distribution Amount will be
distributed to the Class A-1 ARM Certificateholders
and the Senior Percentage of the Formula Principal
Distribution Amount, less the Class A-4 Lockout
Distribution Amount, as defined below, will be
distributed first to the Class A-1
Certificateholders, until the Class A-1 Principal
Balance has been reduced to zero, then to the Class
A-2 Certificateholders until the Class A-2
Principal Balance has been reduced to zero, then to
the Class A-3 Certificateholders until the Class A-
3 Principal Balance has been reduced to zero, and
then to the Class A-4 Certificateholders until the
Class A-4 Principal Balance has been reduced to
zero.
The Class A-5 IO Certificates are interest-only
certificates and are not entitled to receive
distributions of principal.
The "Formula Principal Distribution Amount" will
generally be equal to (A) the sum of (i) scheduled
payments of principal due on each outstanding Loan
during the related Due Period, (ii) the Scheduled
Balance of each Loan which, during the related Due
Period, was repurchased by the Company, (iii) all
partial principal prepayments applied and all
principal prepayments in full received during such
Due Period in respect of the Loans, (iv) the
scheduled principal
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Advisor immediately.
<PAGE>
balance of each Loan that became a liquidated
contract during such related Due Period, (v) any
amount described in clauses (i) through (iv) above
that was not previously distributed because of an
insufficient amount of funds available, and (vi)
the Extra Principal Distribution Amount, minus (B)
the Class A-1 ARM Formula Principal Distribution
Amount.
"Extra Principal Distribution Amount" means the
lesser of (i) the Monthly Excess Cashflow and (ii)
$5,000,000 less the sum of all prior distributions
of the Extra Principal Distribution Amount.
"Monthly Excess Cashflow" means, for any Payment
Date, the Amount Available less the sum of (a) the
interest paid on the Certificates; (b) the amount
to be paid in respect of principal pursuant to
clauses (i) through (v) of clause (A) of the
Formula Principal Distribution Amount; (c) the
Monthly Servicing Fee to be paid to the Servicer;
(d) unreimbursed Advances to the Trustee or the
Servicer, as applicable, with respect to the Loans
made in respect of the current or prior Payment
Dates; and (e) expenses of the holder of the Class
C Certificates incurred by and reimburseable to it
with respect to taxes or charges imposed upon the
Trust as a REMIC or otherwise.
The "Class A-1 ARM Formula Principal Distribution
Amount" on or before the Payment Date on which the
Class A-1 ARM Certificates have been paid in full
will generally be equal to the lesser of (A) the
Class A-1 ARM Principal Balance or (B) the sum of
the following: (i) all scheduled payments of
principal due on each outstanding Adjustable Rate
Loan during the related Due Period; (ii) all
partial principal prepayments and principal
prepayments in full received on each Adjustable
Rate Loan during the related Due Period; (iii) the
scheduled principal balance of each Adjustable Rate
Loan repurchased by the Company during the related
Due Period; (iv) the scheduled principal balance of
each Adjustable Rate Loan that became a liquidated
loan during the related Due Period; and (v) on any
Payment Date which is on or after the Payment Date
on which the Class A-1, A-2, A-3, and A-4
Certificates have been paid in full, (a) the Senior
Percentage times (x) the sum of the amounts
described in clauses (i) through (vi) of clause (A)
of the definition of the Formula Principal
Distribution Amount less (y) the sum of the amounts
described in clauses (i) through (iv) of clause (B)
of the definition of the Class A-1 ARM Formula
Principal Distribution Amounts less (b) the amount,
if any, distributed in payment of principal on the
Class A-1, A-2, A-3, and A-4 Certificates on such
Payment Date.
The Class A-4 Certificateholders are entitled to
receive payments of the Class A-4 Lockout
Distribution Amount specified below, provided, that
if on any Payment Date the Class A-3 Certificate
Principal Balance is zero, the Class A-4
Certificateholders will be entitled to receive the
entire Senior Percentage of Formula Principal
Distribution Amount (less the amount, if any,
distributed in respect of the Class A-3
Certificates on such Payment Date).
The "Class A-4 Lockout Distribution Amount" for any
Payment Date,
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Advisor immediately.
<PAGE>
will be the product of (i) the applicable Class A-4
Lockout Percentage for such Payment Date and (ii)
the Class A-4 Lockout Pro Rata Distribution Amount
for such Payment Date.
The "Class A-4 Lockout Percentage" for each Payment
Date shall be as follows:
<TABLE>
<CAPTION>
PAYMENT DATES LOCKOUT PERCENTAGE
------------- ------------------
<S> <C>
March 1998 - February 2001 0%
March 2001 - February 2003 20%
March 2003 - February 2004 80%
March 2004 - February 2005 100%
March 2005 - and thereafter 300%
</TABLE>
The "Class A-4 Lockout Pro Rata Distribution
Amount" for any Payment Date will be an amount
equal to the product of (x) a fraction, the
numerator of which is the Certificate Principal
Balance of the Class A-4 Certificates immediately
prior to such Payment Date and the denominator of
which is the aggregate Certificate Balance of the
Class A-1, Class A-2, Class A-3 and Class A-4
Principal Balances and (y) the Senior Percentage of
the Formula Principal Distribution Amount.
SENIOR PERCENTAGE: The Senior Percentage will equal 100% on each
Payment Date on which the Class B Principal
Distribution Test is not satisfied.
Otherwise, the Senior Percentage will equal a
fraction, the numerator of which is the sum of the
Class A Principal Balance (excluding the Class A-1
ARM Principal Balance) and the Class M Principal
Balance for a given Payment Date, and the
denominator of which is the Pool Scheduled
Principal Balance of the Fixed Rate Loans for the
immediately preceding Payment Date.
CLASS M-1 INTEREST: After the payment of the Class A Distribution
Amount, interest will be paid to the Class M-1
Certificateholders in an amount equal to the
product of (a) the Class M-1 Pass-Through Rate and
(b) the then outstanding Class M-1 Principal
Balance (less the Class M-1 Liquidation Loss
Principal Amount, if any). Interest will initially
accrue from the Settlement Date and thereafter will
accrue from the most recent Payment Date on which
interest has been paid to, in each case, but
excluding the following Payment Date. Interest will
be computed on a 30/360 basis. Interest shortfalls
will be carried forward, and will bear interest at
the Class M-1 Pass-Though Rate, to the extent
legally permissible.
CLASS M-1 PRINCIPAL: Class M-1 Certificateholders will not receive
principal until the Class A Principal Balance has
been reduced to zero. At that time the Class M-1
Certificateholders will be entitled to receive the
Senior Percentage of the Formula Principal
Distribution Amount, until the Class M-1 Principal
Balance has been reduced to zero.
CLASS M-2 INTEREST: After the payment of the Class A and M-1
Distribution Amounts, interest will be paid to the
Class M-2 Certificateholders in an amount equal to
the product of (a) the Class M-2 Pass-Through Rate
and (b)
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Advisor immediately.
<PAGE>
the then outstanding Class M-2 Principal Balance
(less the Class M-2 Liquidation Loss Principal
Amount, if any). Interest will initially accrue
from the Settlement Date and thereafter will accrue
from the most recent Payment Date on which interest
has been paid to, in each case, but excluding the
following Payment Date. Interest will be computed
on a 30/360 basis. Interest shortfalls will be
carried forward, and will bear interest at the
Class M-2 Pass-Through Rate, to the extent legally
permissible.
CLASS M-2 PRINCIPAL: Class M-2 Certificateholders will not receive
principal until the Class A and Class M-1 Principal
Balances have been reduced to zero. At that time
Class M-2 Certificateholders will be entitled to
receive the Senior Percentage of the Formula
Principal Distribution Amount, until the Class M-2
Principal Balance has been reduced to zero.
CLASS B INTEREST: After payment of the Class A and Class M
Distribution Amounts, interest will be paid to the
Class B Certificateholders in an amount equal to
the product of (a) the Class B Pass-Through Rate
and (b) the then outstanding Class B Principal
Balance (less the Class B Liquidation Loss
Principal Amount, if any). Interest will initially
accrue from the Settlement Date and thereafter will
accrue from the most recent Payment Date on which
interest has been paid to, in each case, but
excluding the following Payment Date. Interest will
be computed on 30/360 basis. Interest shortfalls
will be carried forward, and will bear interest at
the Class B Pass-Through Rate, to the extent
legally permissible.
CLASS B PRINCIPAL: The Class B Certificateholders will not receive
principal payments unless the Class B Principal
Distribution Test is satisfied. At that time the
Class B Certificateholders will be entitled to
receive the Class B Percentage of the Formula
Principal Distribution Amount, until the Class B
Principal Balance has been reduced to zero. The
Class B Percentage for any Payment Date will be
equal to 100% minus the Senior Percentage. On any
given Payment Date, the Class B Principal
Distribution Test will be deemed to be satisfied if
either (a) the Class A Principal Balance and the
Class M Principal Balance have each been reduced to
zero or (b) each of the following conditions is met
(i) the average sixty-day delinquency ratio as of
the given Payment Date and the prior two Payment
Dates must not exceed 2.5%; (ii) the average
thirty-day delinquency ratio as of the given
Payment Date and the prior two Payment Dates must
not exceed 5%; (iii) the cumulative realized losses
as of the given Payment Date must not exceed 7.5%;
(iv) the current realized losses as of the given
Payment Date must not exceed 2.0%; (v) the given
Payment Date is on or after March, 2001; and (vi)
the sum of the Class B Principal Balance and the
sum of all prior distributions of the Extra
Principal Distribution Amount, divided by the Pool
Scheduled Principal Balance as of the immediately
preceding Payment Date must be equal to or greater
than 5.50%.
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Advisor immediately.
<PAGE>
THE HOME EQUITY LOANS
---------------------
The Loans consist of both fixed rate and adjustable rate closed-end home
equity loans (the "Loans"). The adjustable rate closed-end home equity loans are
subject to interest rate adjustments after an initial period of up to thirty-six
months (the "Adjustable Rate Loans"). All Loans which are not Adjustable Rate
Loans are referred herein as "Fixed Rate Loans." The obligations of the Obligor
under each Loan are secured by the related real estate.
The data set forth below is based solely on the Loans identified for inclusion
in the Trust as of the Cut-off Date ("Initial Loans"). Certain additional Loans
may be purchased by the Trust on the Closing Date and for a limited period
following the Closing Date ("Subsequent Loans"). It is expected that the
Subsequent Loans will have characteristics which are substantially similar to
the Initial Loans.
THE INITIAL LOANS
INITIAL FIXED RATE LOANS
<TABLE>
<S> <C>
Number of Loans in thePool: 4,852
Wgt. Avg. Loan Rate: 11.929%
Range of Rates: 7.70% - 19.74%
Wgt. Avg. Orig. Maturity: 235
Wgt. Avg. Rem. Maturity: 235
Avg. Rem. Princ. Balance: $50,294.08
Wgt. Avg. CLTV: 87.959%
</TABLE>
GEOGRAPHIC DISTRIBUTION OF MORTGAGED PROPERTIES
INITIAL FIXED RATE LOANS
<TABLE>
<CAPTION>
% of Loans by Aggregate Principal % of Loans by
Number of Number of Balance Outstanding
State Loans Loans Outstanding Principal Balance
- --------------- --------------- ----------------- ----------------------- ----------------------
<S> <C> <C> <C> <C>
OH 436 8.99% $ 18,201,457.58 7.47%
IL 271 5.59% $ 15,194,335.91 6.24%
MI 262 5.40% $ 15,110,923.24 6.20%
FL 290 5.98% $ 13,648,963.07 5.59%
PA 253 5.21% $ 13,604,900.76 5.58%
Other States* 3,340 68.83% $168,266,289.94 68.92%
----- ------ --------------- ------
Total/(1)/ 4,852 100.00% $244,026,870.50 100.00%
===== ====== =============== ======
</TABLE>
- ----------------------
* No one State in this category constitutes more than 5% of the Fixed Rate Home
Equity Outstanding Principal Balance.
/(1)/ Percentages do not add to 100% due to rounding.
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Advisor immediately.
<PAGE>
YEARS OF ORIGINATION OF INITIAL FIXED RATE LOANS
<TABLE>
<CAPTION>
% of Loans by
Number of Aggregate Principal Outstanding Principal
Year of Origination Loans Balance Outstanding Balance
- ------------------------ ---------------------- ------------------------- ------------------------
<S> <C> <C> <C>
1995 2 $ 120,290.41 0.05%
1996 19 $ 760,885.68 0.31%
1997 4,252 $212,775,333.67 87.19%
1998 579 $ 30,370,360.74 12.45%
----- --------------- ------
Total/(1)/ 4,852 $244,026,870.50 100.00%
===== =============== ======
</TABLE>
/(1)/ Percentages do not add to 100% due to rounding.
INITIAL FIXED RATE LOAN RATES
<TABLE>
<CAPTION>
% of Loans by
Range of Loans by Number of Aggregate Principal Outstanding Principal
Loan Rates Loans Balance Outstanding Balance
- ------------------------- ------------- ----------------------- --------------------------
<S> <C> <C> <C>
From 0.00%-9.00% 24 $ 2,396,213.03 0.98%
From 9.01%-10.00% 224 $ 20,220,565.21 8.29%
From 10.01%-11.00% 818 $ 66,722,495.65 27.34%
From 11.01%-12.00% 816 $ 48,446,013.28 19.85%
From 12.01%-13.00% 1,196 $ 50,512,377.01 20.70%
From 13.01%-14.00% 995 $ 34,125,708.76 13.98%
From 14.01%-15.00% 424 $ 13,337,205.47 5.47%
From 15.01%-16.00% 182 $ 4,607,998.66 1.89%
From 16.01%-17.00% 108 $ 2,594,756.60 1.06%
Over 17.01% 65 $ 1,063,536.83 0.44%
----- --------------- ------
Total /(1)/ 4,852 $244,026,870.50 100.00%
===== =============== ======
</TABLE>
/(1)/ Percentages do not add to 100% due to rounding.
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Advisor immediately.
<PAGE>
DISTRIBUTION OF ORIGINAL INITIAL FIXED RATE LOAN AMOUNTS
<TABLE>
<CAPTION>
% of Loans by
Original Loan Number of Aggregate Principal Outstanding Principal
Amount (in Dollars) Loans Balance Outstanding Balance
- ------------------------ ------------- ----------------------- ------------------------
<S> <C> <C> <C>
Less than $30,000 1,815 $ 34,827,270.44 14.26%
Between $30,000-$39,999 611 $ 21,012,380.04 8.61%
Between $40,000-$49,999 557 $ 24,844,742.95 10.18%
Between $50,000-$59,999 421 $ 23,027,826.15 9.44%
Between $60,000-$69,999 332 $ 21,464,711.50 8.80%
Between $70,000-$79,999 282 $ 21,051,295.91 8.63%
Between $80,000-$89,999 204 $ 17,205,750.09 7.05%
Between $90,000-$99,999 135 $ 12,789,927.32 5.24%
Between $100,000-$109,999 116 $ 12,198,511.21 5.00%
Between $110,000-$119,999 104 $ 11,923,970.13 4.89%
Between $120,000-$129,999 64 $ 7,956,837.19 3.26%
Between $130,000-$139,999 45 $ 6,062,594.93 2.48%
Between $140,000-$149,999 44 $ 6,337,121.03 2.60%
Between $150,000-$159,999 31 $ 4,751,109.12 1.95%
Between $160,000-$169,999 20 $ 3,264,894.82 1.34%
Between $170,000-$179,999 12 $ 2,090,778.07 0.86%
Between $180,000-$189,999 10 $ 1,838,950.00 0.75%
Between $190,000-$199,999 9 $ 1,732,105.77 0.71%
Between $200,000-$249,999 26 $ 5,721,195.99 2.34%
Between $250,000-$299,999 10 $ 2,625,860.80 1.08%
Between $300,000-$349,999 4 $ 1,299,037.04 0.53%
----- --------------- ------
Total /(1)/ 4,852 $244,026,870.50 100.00%
===== =============== ======
</TABLE>
/(1)/ Percentages do not add to 100% due to rounding.
REMAINING MONTHS TO MATURITY OF INITIAL FIXED RATE LOANS
<TABLE>
<CAPTION>
% of Loans by
Number of Aggregate Principal Outstanding Principal
Months Remaining Loans Balance Outstanding Balance
- ------------------------ ------------- ------------------------ -------------------------
<S> <C> <C> <C>
Less than 181 2,456 $100,135,377.08 41.04%
181-195 14 $ 368,793.03 0.15%
196-210 1 $ 64,800.00 0.03%
226-240 1,519 $ 80,679,641.40 33.06%
241-270 1 $ 53,100.00 0.02%
286-300 487 $ 31,385,802.76 12.86%
301-315 1 $ 37,500.00 0.02%
316-330 3 $ 157,005.03 0.06%
331-360 370 $ 31,144,851.20 12.76%
----- --------------- ------
Total /(1)/ 4,852 $244,026,870.50 100.00%
===== =============== =======
</TABLE>
/(1)/ Percentages do not add to 100% due to rounding.
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Advisor immediately.
<PAGE>
LIEN POSITION OF INITIAL FIXED RATE LOANS
<TABLE>
<CAPTION>
% of Loans by
Number of Aggregate Principal Outstanding Principal
Lien Position Loans Balance Outstanding Balance
- --------------- ------------- ----------------------- --------------------------
<S> <C> <C> <C>
First 2,453 $176,534,212.22 72.34%
Second 2,349 $ 66,559,315.05 27.28%
Third 50 $ 933,343.23 0.38%
----- --------------- ------
Total /(1)/ 4,852 $244,026,870.50 100.00%
===== =============== ======
</TABLE>
/(1)/ Percentages do not add to 100% due to rounding.
COMBINED LOAN-TO-VALUE RATIO OF INITIAL FIXED RATE LOANS
<TABLE>
<CAPTION>
% of Loans by
Combined Loan-to- Number of Aggregate Principal Outstanding Principal
Value Ratio Loans Balance Outstanding Balance
- -------------------- ------------- ----------------------- --------------------------
<S> <C> <C> <C>
From 0.000%-10.000% 3 $ 58,200.00 0.02%
From 10.001%-20.000% 7 $ 253,778.82 0.10%
From 20.001%-30.000% 14 $ 423,656.46 0.17%
From 30.001%-40.000% 34 $ 1,041,802.56 0.43%
From 40.001%-50.000% 48 $ 1,763,828.50 0.72%
From 50.001%-60.000% 78 $ 2,926,481.28 1.20%
From 60.001%-70.000% 171 $ 7,875,094.57 3.23%
From 70.001%-80.000% 585 $ 28,160,439.21 11.54%
From 80.001%-90.000% 1,751 $ 94,272,782.44 38.63%
Over 90.000% 2,161 $107,250,806.66 43.96%
----- --------------- ------
Total /(1)/ 4,852 $244,026,870.50 100.00%
===== =============== ======
</TABLE>
/(1)/ Percentages do not add to 100% due to rounding.
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Advisor immediately.
<PAGE>
THE INITIAL HOME EQUITY LOANS POOL
INITIAL ADJUSTABLE RATE LOANS
<TABLE>
<S> <C>
Number of Loans in the Pool: 605
Wgt. Avg. Loan Rate: 9.699%
Range of Rates: 5.55 - 13.00%
Wgt. Avg. Orig. Maturity: 360
Wgt. Avg. Rem. Maturity: 356
Avg. Rem. Princ. Balance: $121,524.64
Wgt. Avg. CLTV: 83.967%
</TABLE>
GEOGRAPHIC DISTRIBUTION OF MORTGAGED PROPERTIES
INITIAL ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
% of Loans by Aggregate Principal % of Loans by
Number of Number of Balance Outstanding
State Loans Loans Outstanding Principal Balance
- ------------ ------------- ----------------- ----------------------- ---------------------
<S> <C> <C> <C> <C>
CA 87 14.37% $15,486,937.86 21.06%
WA 76 12.55% $ 9,492,757.02 12.91%
IL 37 6.11% $ 4,094,902.19 5.57%
Other * 405 66.97% $44,447,812.97 60.46%
--- ------ -------------- ------
Total/(1)/ 605 100.00% $73,522,410.04 100.00%
=== ====== ============== ======
</TABLE>
* No one State in this category constitutes more than 5% of the Initial
Adjustable Rate Home Equity Loans Outstanding Principal Balance.
YEARS OF ORIGINATION OF INITIAL ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
% of Loans by
Number of Aggregate Principal Outstanding Principal
Year of Origination Loans Balance Outstanding Balance
- --------------------- ------------- ------------------------ ------------------------
<S> <C> <C> <C>
1993 2 $ 357,505.08 0.49%
1994 4 $ 455,386.02 0.62%
1995 23 $ 2,352,883.45 3.20%
1996 24 $ 3,576,670.48 4.86%
1997 550 $66,486,065.01 90.43%
1998 2 $ 293,900.00 0.40%
--- -------------- ------
Total /(1)/ 605 $73,522,410.04 100.00%
=== ============== ======
</TABLE>
/(1)/ Percentages do not add to 100% due to rounding.
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Advisor immediately.
<PAGE>
DISTRIBUTION OF INITIAL ADJUSTABLE
RATE LOAN AMOUNTS
<TABLE>
<CAPTION>
% of Loans by
Original Loan Number of Aggregate Principal Outstanding Principal
Amount (in Dollars) Loans Balance Outstanding Balance
- ----------------------------- --------------- ----------------------- ---------------------------
<S> <C> <C> <C>
Less than $30,000 7 $ 169,112.08 0.23%
Between $30,000-$39,999 10 $ 357,638.77 0.49%
Between $40,000-$49,999 27 $ 1,208,104.14 1.64%
Between $50,000-$59,999 38 $ 2,092,286.48 2.85%
Between $60,000-$69,999 42 $ 2,697,241.28 3.67%
Between $70,000-$79,999 43 $ 3,198,670.78 4.35%
Between $80,000-$89,999 44 $ 3,692,280.45 5.02%
Between $90,000-$99,999 48 $ 4,533,108.28 6.17%
Between $100,000-$109,999 43 $ 4,494,397.65 6.11%
Between $110,000-$119,999 51 $ 5,845,264.80 7.95%
Between $120,000-$129,999 37 $ 4,597,091.99 6.25%
Between $130,000-$139,999 29 $ 3,892,349.58 5.29%
Between $140,000-$149,999 31 $ 4,457,695.81 6.06%
Between $150,000-$159,999 22 $ 3,404,815.16 4.63%
Between $160,000-$169,999 21 $ 3,468,410.73 4.72%
Between $170,000-$179,999 15 $ 2,610,319.97 3.55%
Between $180,000-$189,999 22 $ 4,043,514.92 5.50%
Between $190,000-$199,999 7 $ 1,355,536.62 1.84%
Between $200,000-$249,999 35 $ 7,676,327.21 10.45%
Between $250,000-$299,999 21 $ 5,692,988.62 7.74%
Between $300,000-$349,999 8 $ 2,541,314.35 3.46%
Between $350,000-$399,999 4 $ 1,493,940.37 2.03%
--- -------------- ------
Total /(1)/ 605 $73,522,410.04 100.00%
=== ============== ======
</TABLE>
INITIAL ADJUSTABLE RATE LOAN RATES
<TABLE>
<CAPTION>
% of Loans by
Range of Loans by Number of Aggregate Principal Outstanding Principal
Loan Rates Loans Balance Outstanding Balance
- ----------------------------- --------------- ----------------------- ---------------------------
<S> <C> <C> <C>
From 0.00%-9.00% 146 $19,946,709.30 27.14%
From 9.01%-10.00% 236 $29,337,328.15 39.90%
From 10.01%-11.00% 146 $16,692,987.21 22.70%
From 11.01%-12.00% 62 $ 6,407,128.29 8.71%
From 12.01%-13.00% 15 $ 1,138,257.09 1.55%
--- -------------- ------
Total /(1)/ 605 $73,522,410.04 100.00%
=== ============== ======
</TABLE>
/(1)/ Percentages do not add to 100% due to rounding.
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Advisor immediately.
<PAGE>
REMAINING MONTHS TO MATURITY OF INITIAL
ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
% of Loans by
Number of Aggregate Principal Outstanding Principal
Months Remaining Loans Balance Outstanding Balance
- ---------------------- --------------- ------------------------- --------------------------
<S> <C> <C> <C>
301-315 2 $ 357,505.08 0.49%
316-330 14 $ 1,565,641.34 2.13%
331-345 26 $ 3,181,402.71 4.33%
346-360 563 $68,417,860.91 93.05%
--- -------------- ------
Total /(1)/ 605 $73,522,410.04 100.00%
=== ============== ======
</TABLE>
/(1)/ Percentages do not add to 100% due to rounding.
LIEN POSITION OF INITIAL ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
% of Loans by
Number of Aggregate Principal Outstanding Principal
Lien Position Loans Balance Outstanding Balance
- ---------------------- ------------- ----------------------- ------------------------
<S> <C> <C> <C>
First 605 $73,522,410.04 100.00%
--- -------------- ------
Total /(1)/ 605 $73,522,410.04 100.00%
=== ============== ======
</TABLE>
/(1)/ Percentages do not add to 100% due to rounding.
COMBINED LOAN-TO-VALUE RATIO OF INITIAL
ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
% of Loans by
Combined Loan-to Number of Aggregate Principal Outstanding Principal
- -Value Ratio Loans Balance Outstanding Balance
- ------------------------ ------------ --------------------------- ------------------------
<S> <C> <C> <C>
From 10.001%-20.000% 1 $ 32,000.00 0.04%
From 20.001%-30.000% 1 $ 30,000.00 0.04%
From 30.001%-40.000% 3 $ 130,592.45 0.18%
From 40.001%-50.000% 6 $ 367,102.20 0.50%
From 50.001%-60.000% 16 $ 1,555,266.09 2.12%
From 60.001%-70.000% 31 $ 3,849,558.66 5.24%
From 70.001%-80.000% 165 $19,233,345.78 26.16%
From 80.001%-90.000% 321 $40,982,960.84 55.73%
From Over 90.000% 61 $ 7,341.584.02 9.99%
--- -------------- ------
Total /(1)/ 605 $73,522,410.04 100.00%
=== ============== ------
</TABLE>
/(1)/ Percentages do not add to 100% due to rounding.
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Advisor immediately.
<PAGE>
MONTH TO NEXT RATE ADJUSTMENT OF INITIAL
ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
% of Loans by
Number of Aggregate Principal Outstanding Principal
Month to Next Rate Adjustment Loans Balance Outstanding Balance
- ------------------------------------- ------------- ---------------------- -----------------------
<S> <C> <C> <C>
January 1998 16 $ 2,110,181.62 2.87%
February 1998 22 $ 2,285,833.12 3.11%
March 1998 24 $ 3,521,314.99 4.79%
April 1998 17 $ 1,841,141.52 2.50%
May 1998 26 $ 2,563,226.57 3.49%
June 1998 27 $ 3,075,287.14 4.18%
November 1998 1 $ 213,116.54 0.29%
February 1999 1 $ 67,217.58 0.09%
March 1999 1 $ 203,022.55 0.28%
April 1999 8 $ 1,074,387.20 1.46%
May 1999 12 $ 1,640,808.76 2.23%
June 1999 9 $ 781,537.59 1.06%
July 1999 19 $ 2,450,939.80 3.33%
August 1999 12 $ 992,786.79 1.35%
September 1999 25 $ 2,913,744.37 3.96%
October 1999 100 $12,705,338.79 17.29%
November 1999 161 $20,233,752.02 27.53%
December 1999 112 $13,289,146.37 18.08%
January 2000 5 $ 678,800.00 0.92%
August 2000 1 $ 208,153.66 0.28%
October 2000 1 $ 104,951.88 0.14%
November 2000 4 $ 472,291.01 0.64%
January 2002 1 $ 95,430.17 0.13%
--- -------------- ------
Total /(1)/ 605 $73,522,410.04 100.00%
=== ============== ======
</TABLE>
/(1)/ Percentages do not add to 100% due to rounding.
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Adviser immediately.
<PAGE>
GROSS MARGIN OF INITIAL
ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
% of Loans by
Number of Aggregate Principal Outstanding Principal
Gross Margin Loans Balance Outstanding Balance
- ------------------------------- ---------- -------------------- ----------------------
<S> <C> <C> <C>
Less than 4.000% 9 $ 920,725.31 1.25%
4.000%-4.249% 3 $ 569,615.52 0.77%
4.250%-4.499% 1 $ 40,600.00 0.06%
4.500%-4.749% 7 $ 1,037,549.08 1.41%
4.750%-4.999% 54 $ 6,693,645.42 9.10%
5.000%-5.249% 18 $ 1,979,555.48 2.69%
5.250%-5.499% 67 $ 8,782,773.64 11.95%
5.500%-5.749% 60 $ 6,941,340.16 9.44%
5.750%-5.999% 78 $10,533,034.48 14.32%
6.000%-6.249% 52 $ 6,091,402.76 8.29%
6.250%-6.499% 48 $ 5,890,334.88 8.01%
6.500%-6.749% 56 $ 6,564,108.18 8.93%
6.750%-6.999% 62 $ 7,922,921.71 10.78%
7.000%-7.249% 42 $ 5,167,343.68 7.03%
7.250%-7.499% 27 $ 2,577,988.09 3.51%
7.500%-7.749% 7 $ 770,092.60 1.05%
7.750%-7.999% 5 $ 406,665.68 0.55%
8.000%-8.249% 3 $ 245,699.10 0.33%
8.250%-8.499% 1 $ 94,864.27 0.13%
8.500%-8.749% 2 $ 127,000.00 0.17%
8.750%-8.999% 1 $ 58,400.00 0.08%
9.000%-9.249% 2 $ 106,750.00 0.15%
--- -------------- ------
Total /(1)/ 605 $73,522,410.04 100.00%
=== ============== ======
</TABLE>
/(1)/ Percentages do not add to 100% due to rounding.
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Adviser immediately.
16
<PAGE>
MAXIMUM LOAN RATE OF INITIAL ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
% of Loans by
Number of Aggregate Principal Outstanding Principal
Maximum Loan Rate Loans Balance Outstanding Balance
- ----------------------------- -------------- ---------------------- -------------------------
<S> <C> <C> <C>
Less than 14.000% 26 $ 2,649,496.12 3.60%
14.000 - 14.249% 6 $ 1,002,774.66 1.36%
14.250 - 14.499% 9 $ 1,195,579.91 1.63%
14.500 - 14.749% 12 $ 1,611,106.08 2.19%
14.750 - 14.999% 39 $ 5,851,633.38 7.96%
15.000 - 15.249% 39 $ 4,640,655.00 6.31%
15.250 - 15.499% 45 $ 5,604,929.97 7.62%
15.500 - 15.749% 45 $ 5,137,757.15 6.99%
15.750 - 15.999% 91 $10,986,515.66 14.95%
16.000 - 16.249% 35 $ 4,472,061.15 6.08%
16.250 - 16.499% 37 $ 5,131,805.60 6.98%
16.500 - 16.749% 43 $ 5,206,411.78 7.08%
16.750 - 16.999% 75 $ 9,573,105.47 13.03%
17.000 - 17.249% 13 $ 1,196,247.99 1.63%
17.250 - 17.499% 18 $ 2,172,410.81 2.95%
17.500 - 17.749% 22 $ 2,467,295.11 3.36%
17.750 - 17.999% 17 $ 2,064,530.34 2.81%
18.000 - 18.249% 10 $ 652,181.55 0.89%
18.250 - 18.499% 8 $ 781,748.15 1.06%
18.500 - 18.749% 7 $ 534,081.82 0.73%
18.750 - 18.999% 3 $ 244,902.70 0.33%
19.000 - 19.249% 3 $ 157,480.54 0.21%
19.250 - 19.499% 1 $ 91,699.10 0.12%
Over 19.499 % 1 $ 96,000.00 0.13%
--- -------------- ------
Total /(1)/ 605 $73,522,410.04 100.00%
=== ============== ======
</TABLE>
/(1)/ Percentages do not add to 100% due to rounding.
This page must be accompanied by the disclaimer on the cover of these materials.
If you did not receive such a disclaimer please contact Salomon Smith Barney
Financial Advisor immediately.
<PAGE>
MINIMUM LOAN RATE OF INITIAL ADJUSTABLE RATE LOANS
<TABLE>
<CAPTION>
% of Loans by
Number of Aggregate Principal Outstanding Principal
Minimum Loan Rate Loans Balance Outstanding Balance
- ----------------------------- -------------- ---------------------- --------------------
<S> <C> <C> <C>
Less than 7.250% 22 $ 2,628,141.44 3.57%
7.250 - 7.499% 1 $ 86,700.00 0.12%
7.500 - 7.749% 7 $ 652,677.61 0.89%
7.750 - 7.999% 18 $ 2,776,248.08 3.78%
8.000 - 8.249% 4 $ 807,890.26 1.10%
8.250 - 8.499% 20 $ 2,746,211.55 3.74%
8.500 - 8.749% 21 $ 2,688,511.34 3.66%
8.750 - 8.999% 49 $ 6,874,200.41 9.34%
9.000 - 9.249% 45 $ 5,314,164.73 7.23%
9.250 - 9.499% 49 $ 6,043,235.09 8.21%
9.500 - 9.749% 40 $ 5,188,095.59 7.06%
9.750 - 9.999% 105 $13,409,892.97 18.23%
10.000 - 10.249% 27 $ 2,880,756.49 3.92%
10.250 - 10.499% 28 $ 3,300,712.44 4.49%
10.500 - 10.749% 42 $ 4,860,556.74 6.61%
10.750 - 10.999% 46 $ 5,299,037.66 7.21%
11.000 - 11.249% 18 $ 2,023,909.64 2.75%
11.250 - 11.499% 23 $ 2,418,430.81 3.29%
11.500 - 11.749% 13 $ 1,476,987.27 2.01%
11.750 - 11.999% 9 $ 845,002.57 1.15%
12.000 - 12.249% 7 $ 550,887.95 0.75%
12.250 - 12.499% 4 $ 294,078.65 0.40%
12.500 - 12.749% 5 $ 271,680.75 0.37%
12.750 - 12.999% 1 $ 58,400.00 0.08%
13.000 - 13.249% 1 $ 26,000.00 0.04%
--- -------------- ------
Total /(1)/ 605 $73,522,410.04 100.00%
=== ============== ======
</TABLE>
/(1)/ Percentages do not add to 100% due to rounding.
This page must be accompanied by the disclaimer on the cover of these materials.
If you did not receive such a disclaimer please contact Salomon Smith Barney
Financial Advisor immediately.
<PAGE>
CPR PREPAYMENT SENSITIVITIES
FOR HOME EQUITY LOAN CERTIFICATES
---------------------------------
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Scenario I Scenario II Scenario III Scenario IV Scenario V
---------- ----------- ------------ ----------- ----------
<S> <C> <C> <C> <C> <C>
Adjustable Rate Home 18 24 30 36 42
Equity Loans /(1)/
Fixed Rate Home Equity 75 100 125 150 175
Loans /(2)/
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
SCENARIO I* SCENARIO II * SCENARIO III * SCENARIO IV * SCENARIO V *
WAL/MATURITY WAL/MATURITY WAL/MATURITY WAL/MATURITY WAL/MATURITY
-------------- --------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C> <C>
TO CALL
A-1 ARM 4.26 -- 12/08 3.15 -- 07/06 2.45 -- 11/04 1.97 -- 09/03 1.62 -- 10/02
A-1 1.50 -- 02/01 1.20 -- 06/00 1.02 -- 01/00 0.89 -- 10/99 0.79 -- 08/99
A-2 4.08 -- 07/03 3.14 -- 03/02 2.55 -- 05/01 2.15 -- 11/00 1.87 -- 06/00
A-3 7.46 -- 02/08 5.52 -- 12/05 4.25 -- 06/04 3.45 -- 08/02 2.91 - 11/01
A-4 NAS 6.58 -- 12/07 5.98 -- 10/05 5.34 -- 06/04 4.59 -- 05/03 3.93 -- 07/02
A-5 IO 2.99 -- 02/01 2.99 -- 02/01 2.99 -- 02/01 2.99 -- 02/01 2.99 -- 02/01
M-1 11.68 -- 01/10 9.12 -- 06/07 7.33 -- 08/05 6.08 -- 05/04 5.10 -- 05/03
M-2 11.91 -- 01/10 9.32 -- 06/07 7.49 -- 08/05 6.24 -- 05/04 5.24 -- 05/03
B 5.83 -- 03/06 4.51 -- 06/04 4.14 -- 09/03 3.94 -- 03/03 3.84 -- 05/03
TO MATURITY
M-1 12.38 -- 06/12 9.70 -- 07/09 7.80 -- 05/07 6.42 -- 10/05 5.40 -- 07/04
M-2 16.43 -- 03/28 13.94 -- 03/28 11.65 -- 03/28 9.79 -- 03/28 8.33 -- 03/28
B 5.83 -- 03/06 4.51 -- 06/04 4.14 -- 09/03 3.94 -- 03/03 3.85 -- 10/03
==========================================================================================================================
</TABLE>
/(1)/ As a CPR Percentage
/(2)/ As a percentage of the Prepayment Assumption
* The Certificates for Home Equity Loans (other than the Class A-1 ARM
Certificates) will be priced using 125% of the Base Prepayment Assumption. The
Base Prepayment Assumption assumes a conditional prepayment rate of 4% per annum
of the then outstanding principal balance of the Fixed Rate Home Equity Loans in
the first month of the life of the Fixed Rate Home Equity Loans and an
additional 1.45% per annum in each month thereafter until the twelfth month.
Beginning in the twelfth month and in each month thereafter, the conditional
prepayment rate is 20%. The Adjustable Rate Home Equity Loans will be priced
using a constant prepayment rate of 30% CPR.
- --------------------------------------------------------------------------------
This page must be accompanied by the disclaimer on the cover page of these
materials. If you did not receive such a disclaimer please contact your Salomon
Smith Barney Financial Advisor immediately.
