<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): January 22, 1998
GREEN TREE FINANCIAL CORPORATION
--------------------------------
(Exact name of registrant as specified in its charter)
01-08916
Delaware [333-36969] 41-1807858
- -------------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS employer
of incorporation) file number) identification No.)
1100 Landmark Towers, 345 St. Peter Street, Saint Paul, Minnesota 55102-1639
- -------------------------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: (612) 293-3400
------------------
Not Applicable
- -------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
Item 1. Changes in Control of Registrant.
--------------------------------
Not applicable.
Item 2. Acquisition or Disposition of Assets.
------------------------------------
Not applicable.
Item 3. Bankruptcy or Receivership.
-------------------------
Not applicable.
Item 4. Changes in Registrant's Certifying Accountant.
----------------------------------------------
Not applicable.
Item 5. Other Events.
------------
Not applicable.
Item 6. Resignations of Registrant's Directors.
--------------------------------------
Not applicable.
Item 7. Financial Statements and Exhibits.
---------------------------------
(a) Financial statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits.
The following is filed herewith. The exhibit numbers correspond
with Item 601(b) of Regulation S-K.
2
<PAGE>
Exhibit No. Description
----------- -----------
99 External Computational and Descriptive
Information distributed in connection with
Certificates for Manufactured Housing Contract
Senior/Subordinate Pass-Through Certificates,
Series 1998-1, 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
<PAGE>
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 1998-1, issued
by Green Tree Financial Corporation, as Seller and
Servicer.
<PAGE>
TERM SHEET DATED JANUARY 20, 1998
Green Tree Financial Corporation
MANUFACTURED HOUSING CONTRACT SENIOR/SUBORDINATE
PASS-THROUGH CERTIFICATES, SERIES 1998-1
$450,000,000 (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 JANUARY 20, 1998
Green Tree Financial Corporation
MANUFACTURED HOUSING CONTRACT SENIOR/SUBORDINATE
PASS-THROUGH CERTIFICATES, SERIES 1998-1
$450,000,000 (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:
<TABLE>
<CAPTION>
Ratings WAL Exp Final
Amount (Moody's/Fitch) @ 150% MHP Maturity
--------------------- ------------------------- ------------------ -------------------
<S> <C> <C> <C> <C>
To Call:
A-1 $ 22,000,000 P-1 / F-1+ 0.44 11/98
A-2 $103,500,000 Aaa / AAA 2.03 06/01
A-3 $ 19,500,000 Aaa / AAA 3.60 01/02
A-4 $ 55,500,000 Aaa / AAA 5.03 07/04
A-5 $137,000,000 Aaa / AAA 12.89 10/15
A-6 $ 45,000,000 Aaa / AAA 8.24 10/15
M-1 $ 33,750,000 Aa3 / AA- 10.40 10/15
B-1 $ 18,000,000 Baa1 / BBB+ 6.70 02/08
B-2 $ 15,750,000 Baa2 / A- 15.16 10/15
To Maturity
A-5 $137,000,000 Aaa / AAA 13.65 10/23
A-6 $ 45,000,000 Aaa / AAA 8.25 06/23
M-1 $ 33,750,000 Aa3 / AA- 10.85 10/23
B-2 $ 15,750,000 Baa2 / A- 20.84 05/28
</TABLE>
CUT-OFF DATE: January 15, 1998 (or the date of origination, if later)
EXP. PRICING: January 22, 1998
EXP. SETTLEMENT: January 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 March 2, 1998.
MONEY MARKET
ELIGIBILITY: The Class A-1 Certificates are expected to be eligible
securities for purchase by money market funds under
Rule 2a-7 under the Investment Company Act of 1940, as
amended. A fund should consult with its advisors
regarding the eligibility of the Class A-1 Certificates
under Rule 2a-7 and the fund's investment policies and
objectives.
OTHER CERTIFICATES: In addition to the Offered Certificates, the Class C
and Class B-3I Certificates will be issued. The
Class B-3I Certificates will be interest-only
Certificates which are retained by an affiliate of
Green Tree, and fully subordinated to the Offered
Certificates.
ERISA: Class A Certificates are ERISA eligible, subject to the
conditions set forth in the Prospectus Supplement. The
Class M-1, B-1 and B-2 Certificates will not be sold to
benefit plans unless such plans deliver a legal opinion
to the Trustee, stating that assets of the Trust are
not deemed "plan assets".
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
2
<PAGE>
SMMEA: Class A and M-1 Certificates are SMMEA eligible. Class
B-1 and B-2 Certificates are not SMMEA eligible.
TAX STATUS: Two separate REMIC Elections will be made with respect
to the Trust for federal income tax purposes.
OPTIONAL REDEMPTION: Less than 10% of the original pool balance outstanding.
STRUCTURE
CREDIT ENHANCEMENT: Class A: 15.00% subordination (Class M-1, B-1, and B-2)
& Excess Spread (Class B-3I)
Class M-1: 7.5% subordination (Class B-1 and B-2) &
Excess Spread (Class B-3I)
Class B-1: 3.5% subordination (Class B-2) & 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 $318,297,252 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 March 1998, all
collections in respect of principal on the Contracts
received during the preceding month up to and including
the third business day prior to the Remittance Date
(but in no event later than the 25th day of the prior
month). The Amount Available will generally be applied
first to the distribution of interest on Class A, M-1
and B-1 Certificates, then to the distribution of
principal on Class A, M-1 and B-1 Certificates, and
finally to the distribution of interest and principal
on Class B-2 Certificates.
The "related Due Period" with respect to any Remittance
Date is the period from and including the 15th day of
the second month preceding such Remittance Date, to and
including the 14th day of the month immediately
preceding such Remittance Date.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
3
<PAGE>
INTEREST
(Class A, M-1, B-1): Interest will be distributable first to each Class of
Class A Certificates concurrently, then to the Class M-
1 Certificates and then to the Class B-1 Certificates.
Interest on the outstanding Class A Principal Balance,
Class M-1 Adjusted Principal Balance and Class B-1
Adjusted Principal Balance, as applicable, will accrue
from the Settlement Date, or from the most recent
Remittance Date on which interest has been paid to but
excluding the following Remittance Date.
The Class A-1 Certificates will bear interest at a
fixed Pass-Through Rate calculated on an actual/360
basis. Each other Class of Certificates will bear
interest at a fixed Pass-Through Rate calculated on a
30/360 basis.
Interest shortfall will be carried forward, and will
bear interest at the applicable Remittance Rate, to the
extent legally permissible.
After payment of all principal distributable on the
Class M-1 Certificates (see below), any accrued and
unpaid Class M-1 Liquidation Loss Interest Amount will
be distributed to the extent available. After payment
of all principal distributable on the Class B-1
Certificates (see below), any accrued and unpaid Class
B-1 Liquidation Loss Interest Amount will be
distributed to the extent available.
The Class M-1 Adjusted Principal Balance is the
Class M-1 Principal Balance less any Class M-1
Liquidation Loss Amount. The Class M-1 Principal
Balance is the Original Class M-1 Principal Balance
less all amounts previously distributed on account of
principal of the Class M-1 Certificates.
The Class B-1 Adjusted Principal Balance is the
Class B-1 Principal Balance less any Class B-1
Liquidation Loss Amount. The Class B-1 Principal
Balance is the Original Class B-1 Principal Balance
less all amounts previously distributed on account of
principal of the Class B-1 Certificates.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
4
<PAGE>
PRINCIPAL
(Class A, M-1, B-1): After the payment of all interest distributable to
Class A, Class M-1 and Class B-1 Certificateholders,
principal will be distributed in the following manner.
The Class A Percentage of the Formula Principal
Distribution Amount less the Class A-6 Lockout
Distribution Amount (as defined below) will be
distributed sequentially to the Class A-1, A-2, A-3,
A-4, and A-5 Certificateholders.
The Class A-6 Certificateholders are entitled to
receive payments of the Class A-6 Lockout Distribution
Amount specified below, provided, that if on any
Remittance Date the Class A-5 Certificate Principal
Balance is zero, the Certificateholders of the Class A-
6 Certificates will be entitled to receive the Class A
Percentage of the Formula Principal Distribution Amount
less the amount, if any, distributed in payment of
principal on the Class A-5 Certificates on such
Remittance Date.
The "Class A-6 Lockout Distribution Amount" for any
Remittance Date will be the product of (i) the
applicable Class A-6 Lockout Percentage for such
Remittance Date and (ii) the Class A-6 Lockout Pro Rata
Distribution Amount for such Remittance Date.
The "Class A-6 Lockout Percentage" for each Remittance
Date shall be as follows:
Remittance Dates Lockout Percentage
March 1998 - February 2001 0%
March 2001 - February 2003 45%
March 2003 - February 2004 80%
March 2004 - February 2005 100%
March 2005 and thereafter 300%
The "Class A-6 Lockout Pro Rata Distribution Amount"
for any Remittance Date will be an amount equal to the
lesser of (1) the product of (x) a fraction, the
numerator of which is the Certificate Principal Balance
of the Class A-6 Certificates immediately prior to such
Remittance Date and the denominator of which is the
aggregate Certificate Balance of the Class A-1,
Class A-2, Class A-3, Class A-4, Class A-5, and
Class A-6, (y) the Class A Percentage of the Formula
Principal Distribution Amount, and (z) the Class A-6
Lockout Percentage and (2) the Class A-6 Principal
Balance immediately preceding such Remittance Date.
The Class A Percentage for any Remittance Date will
equal a fraction, expressed as a percentage, the
numerator of which is the Class A Principal Balance as
of such Remittance Date, and the denominator of which
is the sum of: (i) the Class A Principal Balance and
(ii) if the Class M-1 Distribution Test is satisfied on
such Remittance Date, the Class M-1 Principal Balance,
otherwise zero, and (iii) if the Class B Distribution
Test is satisfied on such Remittance Date, the Class B
Principal Balance, otherwise zero, all as of such
Remittance Date.
The Class M-1 Certificateholders will be entitled to
receive principal on each Remittance Date on which (i)
the Class A Principal Balance has been reduced to zero
or (ii) the Class M-1 Distribution Test is satisfied.
The Class M-1 Percentage for any Remittance Date will
equal (a) zero, if the Class A Principal Balance has
not yet been reduced to zero and the Class M-1
Distribution Test is not satisfied or (b) a fraction,
expressed as a percentage, the numerator of which is
the Class M-1 Principal Balance as of such Remittance
Date, and the denominator of which is the sum of: (i)
the Class A Principal Balance, if any, (ii) the
Class M-1 Principal Balance and (iii) if the Class B
Distribution Test is satisfied on such Remittance Date,
the Class B Principal Balance, otherwise zero, all as
of such Remittance Date.
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>
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 March 2002; (ii) the
Average Sixty-Day Delinquency Ratio Test (as defined in
the Agreement) as of such Remittance Date must not
exceed 3.5%; (iii) the Average Thirty-Day Delinquency
Ratio Test (as defined in the Agreement) as of such
Remittance Date must not exceed 5.5%; (iv) Cumulative
Realized Losses (as defined in the Agreement) as of
such Remittance Date must not exceed a certain
specified percentage of the Cut-off Date Pool Principal
Balance, depending on the year in which such Remittance
Date occurs; (v) the Current Realized Loss Ratio (as
defined in the Agreement) as of such Remittance Date
must not exceed 2.25%; and (vi) the sum of the Class M-
1 Principal Balance and the Class B Principal Balance
divided by the Pool Scheduled Principal Balance as of
the immediately preceding Remittance Date must be equal
to or greater than 22.5%.
The Class B-1 Certificateholders will be entitled to
receive principal on each Remittance Date on which (i)
the Class A Principal Balance and Class M-1 Principal
Balance have been reduced to zero or (ii) the Class B
Distribution Test is satisfied.
The Class B Percentage for any Remittance Date will
equal (a) zero, if the Class A Principal Balance and
the Class M-1 Principal Balance have not yet been
reduced to zero and the Class B Distribution Test is
not satisfied or (b) a fraction, expressed as a
percentage, the numerator of which is the Class B
Principal Balance as of such Remittance Date, and the
denominator of which is the sum of: (i) the Class A
Principal Balance, if any, and (ii) the Class M-1
Principal Balance, if any, and (iii) the Class B
Principal Balance, all as of such Remittance Date.
The Class B Distribution Test will be satisfied if each
of the following tests is satisfied: (i) the Remittance
Date occurs in or after March 2002; (ii) the Average
Sixty-Day Delinquency Ratio Test (as defined in the
Agreement) as of such Remittance Date must not exceed
3.5%; (iii) the Average Thirty-Day Delinquency Ratio
Test (as defined in the Agreement) as of such
Remittance Date must not exceed 5.5%; (iv) the
Cumulative Realized Losses (as defined in the
Agreement) as of such Remittance Date must not exceed a
certain specified percentage of the Cut-off Date Pool
Principal Balance, depending on the year in which such
Remittance Date occurs; (v) the Current Realized Loss
Ratio (as defined in the Agreement) as of such
Remittance Date must not exceed 2.25%; (vi) the Class B
Principal Balance divided by the Pool Scheduled
Principal Balance as of the immediately preceding
Remittance Date must be equal to or greater than
11.25%; and (vii) the Class B Principal Balance must
not be less than $9,000,000.
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>
INTEREST
(Class B-2): Interest on the outstanding Class B-2 Principal Balance
will accrue from the Settlement Date, or from most
recent Remittance Date on which interest has been paid
to but excluding the following Remittance Date.
To the extent of (i) Amount Available on a Remittance
Date after payment of all interest and principal then
payable on the Class A, Class M-1 and Class B-1
Certificates, and (ii) the Guarantee Payment, if any,
for such date, interest will be paid to the Class B-2
Certificateholders at the Class B-2 Remittance Rate on
the Class B-2 Principal Balance.
The Class B-2 Principal Balance is the Original
Class B-2 Principal Balance less all amounts previously
distributed on account of principal of the Class B-2
Certificates.
Interest shortfall will be carried forward, and will
bear interest at the Class B-2 Remittance Rate to the
extent legally permissible.
PRINCIPAL
(Class B-2): The Class B-2 Certificateholders will be entitled to
receive principal on each Remittance Date on which: (i)
the Class B-1 Principal Balance has been reduced to
zero and (ii) the Class B Distribution Test is
satisfied, provided however that if the Class A, Class
M-1 and Class B-1 Principal Balances have been reduced
to zero, the Class B-2 Certificateholders will
nevertheless be entitled to receive principal.
The Company will be obligated under the Limited
Guarantee to pay the amount, if any, by which the Class
B Percentage of the Formula Principal Distribution
Amount for the Remittance Date exceeds the Class B-2
Remaining Amount Available after payment of interest on
the Class B-2 Certificates. On each Remittance Date,
Class B-2 Certificateholders will be entitled to
receive, pursuant to the Limited Guarantee, any
Class B-2 Liquidation Loss Amount for such Remittance
Date.
LOSSES ON LIQUIDATED
CONTRACTS: If Net Liquidation Proceeds from Liquidated Contracts
in the respective collection period are less than the
Scheduled Principal Balance of such Liquidated
Contract, the shortfall amount will be absorbed by the
Class B-3I Certificateholders, then the Monthly
Servicing Fee (as long as Green Tree is the Servicer),
then the Class B-2 Certificateholders, then the
Class B-1 Certificateholders, and then the Class M-1
Certificateholders.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
7
<PAGE>
CONTRACTS: The information concerning the Initial Contracts
presented below is based on a pool originated through
January 15, 1998. Although the characteristics of the
final pool of Contracts will differ from the
characteristics of the Initial Contracts shown below,
Green Tree does not expect that the characteristics of
the Additional Contracts and Subsequent Contracts sold
to the Trust will vary materially from the information
concerning the Initial Contracts herein.
THE INITIAL CONTRACT POOL
Number of MHCs in pool: 8,267
Wgt. Avg. Contract Rate: 9.543%
Range of Rates: 4.50% - 17.00%
Wgt. Avg. Orig. Maturity: 299 mos.
Range of Orig. Maturity: 19-360 mos.
Wgt. Avg. Rem. Maturity: 298 mos.
Range of Rem. Maturity: 8-360 mos.
Avg. Rem Princ. Balance: $38,502.15
Wgt. Avg. LTV: 86.51%
New/Used: 79%/21%
Single/Double: 29%/71%
Park/Private: 26%/74%
GEOGRAPHIC DISTRIBUTION OF INITIAL CONTRACT OBLIGORS
<TABLE>
<CAPTION>
% of Contract % of Contract Pool
Number Pool by Number Aggregate Principal by Outstanding
State of Contracts OF CONTRACTS Balance Outstanding Principal Balance
- -------------------- ---------------- -------------------- -------------------------- --------------------------
<S> <C> <C> <C> <C>
North Carolina 934 11.30% $ 38,427,913.71 12.07%
Florida 573 6.93% $ 24,605,729.37 7.73%
Michigan 489 5.92% $ 23,610,415.33 7.42%
Texas 579 7.00% $ 19,369,217.52 6.09%
Other States/(1)/ 5,692 68.85% $212,283,976.23 66.69%
----- ------ --------------- ------
Total (2) 8,267 100.00% $318,297,252.16 100.00%
===== ====== =============== ======
</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>
YEARS OF ORIGINATION OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% OF CONTRACT POOL
NUMBER OF AGGREGATE PRINCIPAL BY OUTSTANDING
YEAR OF ORIGINATION (1) CONTRACTS BALANCE OUTSTANDING PRINCIPAL BALANCE
- --------------------------- ---------------------------- ---------------------------- -----------------------------
<S> <C> <C> <C>
1984 3 $ 41,684.80 0.01%
1985 6 $ 57,025.00 0.02%
1986 15 $ 171,807.41 0.05%
1987 16 $ 209,983.30 0.07%
1988 37 $ 622,786.98 0.20%
1989 85 $ 1,612,864.40 0.51%
1990 194 $ 4,127,741.30 1.30%
1991 202 $ 4,184,998.92 1.31%
1992 119 $ 2,459,762.47 0.77%
1993 24 $ 612,867.86 0.19%
1994 91 $ 1,896,827.74 0.60%
1995 91 $ 2,541,001.60 0.80%
1996 92 $ 3,613,710.39 1.14%
1997 6,425 $267,565,956.07 84.06%
1998 867 $ 28,578,233.92 8.98%
----- --------------- ------
Total (2) 8,267 $318,297,252.16 100.00%
===== =============== ======
</TABLE>
- -------------------------
(1) The Contracts shown in the above table with earlier years of origination
primarily represent Contracts originated by the Company and subsequently
refinanced through the Company. The Company retains the first origination
dates on its records with respect to such refinanced Contracts.
(2) Percentages do not add to 100% due to rounding.
DISTRIBUTION OF ORIGINAL AMOUNTS OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% OF CONTRACT POOL
ORIGINAL CONTRACT NUMBER OF AGGREGATE PRINCIPAL BY OUTSTANDING
AMOUNT (IN DOLLARS)(1) CONTRACTS BALANCE OUTSTANDING PRINCIPAL BALANCE
- --------------------------- ---------------------------- ---------------------------- -----------------------------
<S> <C> <C> <C>
Less than $10,000 436 $ 3,400,529.12 1.07%
$10,000 - $19,999 1,570 $ 23,264,085.34 7.31%
$20,000- $29,999 1,913 $ 47,368,070.87 14.88%
$30,000 - $39,999 1,332 $ 45,738,026.99 14.37%
$40,000 - $49,999 855 $ 38,184,010.54 12.00%
$50,000 - $59,999 631 $ 34,521,185.69 10.85%
$60,000 - $69,999 473 $ 30,677,576.19 9.64%
$70,000 - $79,999 386 $ 28,808,991.56 9.05%
$80,000 - $89,999 278 $ 23,490,745.79 7.38%
$90,000 - $99,999 170 $ 16,174,152.11 5.08%
$100,000 - $109,999 81 $ 8,492,946.55 2.67%
$110,000 - $119,999 58 $ 6,628,507.27 2.08%
$120,000 - $129,999 37 $ 4,624,025.21 1.45%
$130,000 - $139,999 18 $ 2,420,699.98 0.76%
$140,000 - $149,999 15 $ 2,172,318.51 0.68%
$150,000 - $159,999 7 $ 1,083,425.50 0.34%
$160,000 - $169,999 3 $ 484,772.84 0.15%
$170,000 - $179,999 1 $ 171,881.50 0.05%
$180,000 - $189,999 1 $ 188,366.12 0.06%
$190,000 - $199,999 1 $ 194,018.48 0.06%
$200,000 - $249,999 1 $ 208,916.00 0.07%
----- --------------- ------
Total 8,267 $318,297,252.16 100.00%
===== =============== ======
</TABLE>
- -----------------------
(1) The largest original Contract amount is $208,916.00, which represents 0.07%
of the Initial Pool Principal Balance.
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>
DISTRIBUTION OF ORIGINAL LOAN-TO-VALUE RATIOS OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% OF CONTRACT POOL
NUMBER OF AGGREGATE PRINCIPAL BY OUTSTANDING
LOAN-TO-VALUE RATIO(1) CONTRACTS BALANCE OUTSTANDING PRINCIPAL BALANCE
- --------------------------- ---------------------------- ---------------------------- ----------------------------
<S> <C> <C> <C>
Less than 61.00% 377 $ 11,361,579.53 3.57%
61.00% - 65.00% 129 $ 4,696,840.16 1.48%
65.01% - 70.00% 174 $ 7,284,181.50 2.29%
70.01% - 75.00% 261 $ 11,067,996.20 3.48%
75.01% - 80.00% 717 $ 27,928,981.25 8.77%
80.01% - 85.00% 984 $ 41,465,521.50 13.03%
85.01% - 90.00% 2,734 $105,612,159.86 33.18%
90.01% - 95.00% 2,496 $ 95,113,171.67 29.88%
95.01% - 100.00% 395 $ 13,766,820.49 4.33%
----- --------------- ------
Total(2) 8,267 $318,297,252.16 100.00%
===== =============== ======
</TABLE>
- -------------------------
(1) Rounded to the nearest 1%. The method of calculating loan-to-value ratios
is described in the Prospectus.
(2) Percentages do not add to 100% due to rounding.
CONTRACT RATES OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% OF CONTRACT POOL
RANGE OF CONTRACTS BY NUMBER OF AGGREGATE PRINCIPAL BY OUTSTANDING
CONTRACT RATE CONTRACTS BALANCE OUTSTANDING PRINCIPAL BALANCE
- --------------------------- ---------------------------- ---------------------------- -----------------------------
<S> <C> <C> <C>
0.000% - 5.000% 1 $ 58,501.62 0.02%
5.001% - 6.000% 12 $ 652,406.45 0.20%
6.001% - 7.000% 412 $ 32,388,479.61 10.18%
7.001% - 8.000% 748 $ 49,117,813.89 15.43%
8.001% - 9.000% 916 $ 52,418,329.62 16.47%
9.001% - 10.000% 1,521 $ 60,580,827.64 19.03%
10.001% - 11.000% 1,525 $ 53,028,949.66 16.66%
11.001% - 12.000% 1,660 $ 43,078,757.14 13.53%
12.001% - 13.000% 918 $ 18,449,639.76 5.80%
13.001% - 14.000% 435 $ 7,213,412.52 2.27%
14.001% - 15.000% 27 $ 472,199.78 0.15%
15.001% - 16.000% 73 $ 665,806.55 0.21%
16.001% - 17.000% 19 $ 172,127.92 0.05%
----- --------------- ------
Total 8,267 $318,297,252.16 100.00%
===== =============== ======
</TABLE>
REMAINING MONTHS TO MATURITY OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% OF CONTRACT POOL
NUMBER OF AGGREGATE PRINCIPAL BY OUTSTANDING
MONTHS REMAINING CONTRACTS BALANCE OUTSTANDING PRINCIPAL BALANCE
- --------------------------- ---------------------------- ---------------------------- -----------------------------
<S> <C> <C> <C>
Less than 31 20 $ 87,556.13 0.03%
31 - 60 207 $ 1,918,534.33 0.60%
61 - 90 680 $ 9,910,825.10 3.11%
91 - 120 659 $ 11,195,212.26 3.52%
121 - 150 321 $ 6,850,929.74 2.15%
151 - 180 1,294 $ 30,961,313.69 9.73%
181 - 210 85 $ 2,540,853.64 0.80%
211 - 240 1,185 $ 37,849,573.95 11.89%
241 - 270 12 $ 448,865.32 0.14%
271 - 300 581 $ 21,718,322.28 6.82%
301 - 330 9 $ 376,798.47 0.12%
331 - 360 3,214 $194,438,467.25 61.09%
----- --------------- ------
Total 8,267 $318,297,252.16 100.00%
===== =============== ======
</TABLE>
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
10
<PAGE>
MHP PREPAYMENT SENSITIVITIES(1)
<TABLE>
<CAPTION>
85% MHP 100% MHP 125% MHP 150% MHP
WAL/MATURITY WAL/MATURITY WAL/MATURITY WAL/MATURITY
<S> <C> <C> <C> <C> <C> <C> <C> <C>
To Call
A-1 0.59 02/99 0.54 01/99 0.48 12/98 0.44 11/98
A-2 2.93 01/03 2.65 07/02 2.29 12/01 2.03 06/01
A-3 5.34 11/03 4.80 04/03 4.12 07/02 3.60 01/02
A-4 8.00 10/08 7.03 08/07 5.82 10/05 5.03 07/04
A-5 17.79 01/21 16.51 09/19 14.58 08/17 12.89 10/15
A-6 9.37 01/21 9.06 09/19 8.61 08/17 8.24 10/15
M-1 14.17 01/21 13.09 09/19 11.61 08/17 10.40 10/15
B-1 9.53 02/12 8.65 12/10 7.55 05/09 6.70 02/08
B-2 20.08 01/21 18.75 09/19 16.82 08/17 15.16 10/15
To Maturity
A-5 18.39 08/26 17.20 02/26 15.33 02/25 13.65 10/23
A-6 9.37 05/26 9.06 11/25 8.61 10/24 8.25 06/23
M-1 14.53 08/26 13.49 02/26 12.06 02/25 10.85 10/23
B-2 23.72 05/28 22.99 05/28 21.94 05/28 20.84 05/28
</TABLE>
<TABLE>
<CAPTION>
175% MHP 250% MHP 300% MHP 350% MHP
WAL/MATURITY WAL/MATURITY WAL/MATURITY WAL/MATURITY
<S> <C> <C> <C> <C> <C> <C> <C> <C>
To Call
A-1 0.40 10/98 0.33 08/98 0.29 08/98 0.27 07/98
A-2 1.83 01/01 1.43 05/00 1.25 02/00 1.11 11/99
A-3 3.20 07/01 2.45 09/00 2.14 05/00 1.91 02/00
A-4 4.34 08/03 3.16 11/01 2.72 04/01 2.41 12/00
A-5 11.37 03/14 7.97 06/10 6.43 09/08 5.27 05/07
A-6 7.91 03/14 7.16 06/10 6.77 09/08 6.45 05/07
M-1 9.70 03/14 8.15 06/10 7.43 09/08 6.86 05/07
B-1 6.39 06/07 5.77 02/06 5.51 06/05 5.30 01/05
B-2 13.90 03/14 11.01 06/10 9.67 09/08 8.65 05/07
To Maturity
A-5 12.09 04/22 8.57 08/17 6.94 03/15 5.69 02/13
A-6 7.92 12/21 7.18 05/17 6.81 12/14 6.51 11/12
M-1 10.17 04/22 8.65 08/17 7.94 03/15 7.39 02/13
B-2 19.92 05/28 17.06 05/28 15.26 05/28 13.68 05/28
</TABLE>
(1) The following are the assumed characteristics of 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 $ 9,175,189.08 94 94 11.316%
121 to 180 $ 15,231,879.62 168 168 11.048%
181 to 240 $ 17,502,652.75 233 233 10.583%
241 to 300 $ 9,183,766.83 298 298 10.347%
301 to 360 $ 80,609,259.56 359 359 8.739%
Total $131,702,747.84 297 297 9.543%
===============
</TABLE>
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
11
