<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 25, 1999
GREEN TREE FINANCIAL CORPORATION
--------------------------------
Delaware 01-08916 41-1807858
- --------------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS employer
of incorporation) file number) identification No.)
1100 Landmark Towers, 345 St. Peter Street, Saint Paul, Minnesota 55102-1639
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(Address of principal executive offices)
Registrant's telephone number, including area code: (651) 293-3400
--------------------------
Not Applicable
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(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.
2
<PAGE>
(c) Exhibits.
The following is filed herewith. The exhibit numbers correspond
with Item 601(b) of Regulation S-K.
Exhibit No. Description
----------- -----------
99.1 Computational materials prepared by underwriter
in connection with the $700,000,000
(Approximate) Manufactured Housing Contract
Senior/Subordinate Pass-Through Certificates,
Series 1999-1, 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
/s/ Scott T. Young
By: ________________________________
Scott T. Young
Senior Vice President and Controller
3
<PAGE>
INDEX TO EXHIBITS
Exhibit Number
- --------------
99.1 Computational materials prepared by underwriter in connection with
the $700,000,000 (Approximate) Manufactured Housing Contract
Senior/Subordinate Pass-Through Certificates, Series 1999-1, to be
issued by Green Tree Financial Corporation, as Seller and Servicer.
4
<PAGE>
TERM SHEET DATED JANUARY 25, 1999
Green Tree Financial Corporation
Manufactured Housing Contract Senior/Subordinate
Pass-Through Certificates, Series 1999-1
$700,000,000 (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 25, 1999
Green Tree Financial Corporation
Manufactured Housing Contract Senior/Subordinate
Pass-Through Certificates, Series 1999-1
$700,000,000 (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), J.P. Morgan & Co., Merrill
Lynch & Co.
OFFERED CERTIFICATES:
<TABLE>
<CAPTION>
Ratings WAL Exp Final
Amount (S & P/Fitch) @ 175% MHP Maturity
------------------------ -------------------------------- ---------------------- ----------------------
To Call:
<S> <C> <C> <C> <C>
A-1 $ 30,200,000 A-1+ / F-1+ 0.32 9/99
A-2 $ 70,300,000 AAA / AAA 1.11 10/00
A-3 $134,000,000 AAA / AAA 2.58 10/02
A-4 $104,000,000 AAA / AAA 4.74 4/05
A-5 $100,000,000 AAA / AAA 7.81 12/08
A-6 $ 43,500,000 AAA / AAA 10.91 4/11
A-7 $104,250,000 AAA / AAA 15.21 8/15
M-1 $ 36,750,000 AA / AA 9.90 8/15
M-2 $ 21,000,000 A- / A 9.90 8/15
B-1 $ 24,500,000 BBB+ / BBB 5.95 5/07
B-2 $ 31,500,000 BBB- / BBB+ 13.22 8/15
To Maturity
A-7 $104,250,000 AAA / AAA 16.69 8/23
M-1 $ 36,750,000 AA / AA 10.37 8/23
M-2 $ 21,000,000 A- / A 10.37 8/23
B-2 $ 31,500,000 BBB- / BBB+ 17.79 4/29
</TABLE>
CUT-OFF DATE: January 31, 1999 (or the date of origination, if later)
EXP. PRICING: Week of January 25, 1999
EXP. SETTLEMENT: February 11, 1999
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 1, 1999.
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: The Class A 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".
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: The Class A Certificates and Class M-1 Certificates will
not constitute "mortgage related securities" under the
Secondary Mortgage Market Enhancement Act of 1984
("SMMEA") until such time as the Pre-Funded Amount is
reduced to zero. At such time, the Class A and M-1
Certificates will be "legal investments" for certain
types of institutional investors to the extent provided
in that Act. The Class M-2 and B-1 Certificates are not
SMMEA eligible.
TAX STATUS: Two separate REMIC Elections will be made with respect
to the Trust for federal income tax purposes.
OPTIONAL REDEMPTION: Less than 10% of the original pool balance outstanding.
STRUCTURE
CREDIT ENHANCEMENT: Class A: 16.25% subordination (Class M-1, M-2, B-1 and
B-2) plus Excess Spread (Class B-3I)
Class M-1: 11.00% subordination (Class M-2, B-1 and
B-2) plus Excess Spread (Class B-3I)
Class M-2: 8.00% subordination (Class B-1 and B-2)
plus Excess Spread (Class B-3I)
Class B-1: 4.50% subordination (Class B-2) plus Excess
Spread (Class B-3I)
Class B-2: Limited Guarantee plus Excess Spread (Class
B-3I)
THE CONTRACT POOL: On the Closing Date, the Trust expects to purchase (i)
manufactured housing contracts having an aggregate
principal balance of approximately $544,150,417.72 as of
the Cut-off Date (the "Initial Contracts") and (ii)
additional manufactured housing contracts (the
"Additional Contracts"). An amount will be deposited
into an account (the "Prefunding Account") on the
Closing Date to purchase additional contracts prior to
90 days from the Closing Date (the "Subsequent
Contracts") for inclusion in the Contract Pool. The
Subsequent Contracts will represent no more than 25% of
the aggregate Contract Pool.
DISTRIBUTIONS: The Amount Available on each Remittance Date generally
includes the sum of (a) payments on the Contracts due
and received during the related Due Period (as defined
below), (b) prepayments and other unscheduled
collections received during the related Due Period, and
(c) all collections of principal on the Contracts
received during the Due Period in which such Remittance
Date occurs up to and including the third business day
prior to such Remittance Date (but in no event later
than the 25th day of the month prior to such Remittance
Date), minus (d) with respect to all Remittance Dates
other than the Remittance Date in March 1999, all
collections in respect of principal on the Contracts
received during the preceding month up to and including
the third business day prior to the Remittance Date (but
in no event later than the 25th day of the prior month).
The Amount Available will generally be applied first to
the distribution of interest on Class A, M-1, M-2 and B-
1 Certificates, then to the distribution of principal on
Class A, M-1, M-2 and B-1 Certificates, and finally to
the distribution of interest and principal on Class B-2
Certificates.
The "Due Period" with respect to all Remittance Dates,
other than the Remittance Date in March 1999, 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. With respect to the Remittance Date in
March 1999, the Due Period will be the period from and
including February 1, 1999 to and including February 14,
1999.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
3
<PAGE>
INTEREST
(Class A, M-1, M-2,
B-1): Interest will be distributable first to each class of
Class A Certificates, then to the Class M-1
Certificates, then to the Class M-2 Certificates and
then to the Class B-1 Certificates. Interest on the
outstanding Class A Principal Balance, Class M-1
Adjusted Principal Balance, Class M-2 Adjusted Principal
Balance and Class B-1 Adjusted Principal Balance, as
applicable, will accrue from the Settlement Date, or
from the most recent Remittance Date on which interest
has been paid to but excluding the following Remittance
Date.
The Class A-1 Certificates will bear interest at a fixed
Pass-Through Rate calculated on an actual/360 basis.
Each other Class of Certificates will bear interest at a
fixed Pass-Through Rate calculated on a 30/360 basis.
Interest shortfall will be carried forward, and will
bear interest at the applicable Remittance Rate, to the
extent legally permissible.
After payment of all principal distributable on the
Class M-1 Certificates (see below), any accrued and
unpaid Class M-1 Liquidation Loss Interest Amount will
be distributed to the extent available. After payment of
all principal distributable on the Class M-2
Certificates, any accrued and unpaid Class M-2
Liquidation Loss Interest Amount will be distributed to
the extent available. After payment of all principal
distributable on the Class B-1 Certificates (see below),
any accrued and unpaid Class B-1 Liquidation Loss
Interest Amount will be distributed to the extent
available.
The Class M-1 Adjusted Principal Balance is the Class M-
1 Principal Balance less any Class M-1 Liquidation Loss
Amount. The Class M-1 Principal Balance is the Original
Class M-1 Principal Balance less all amounts previously
distributed on account of principal of the Class M-1
Certificates.
The Class M-2 Adjusted Principal Balance is the Class M-
2 Principal Balance less any Class M-2 Liquidation Loss
Amount. The Class M-2 Principal Balance is the Original
Class M-2 Principal Balance less all amounts previously
distributed on account of principal of the Class M-2
Certificates.
The Class B-1 Adjusted Principal Balance is the Class B-
1 Principal Balance less any Class B-1 Liquidation Loss
Amount. The Class B-1 Principal Balance is the Original
Class B-1 Principal Balance less all amounts previously
distributed on account of principal of the Class B-1
Certificates.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
4
<PAGE>
PRINCIPAL
(Class A, M-1, M-2,
B-1): After the payment of all interest distributable to Class
A, Class M-1, Class M-2 and Class B-1
Certificateholders, principal will be distributed in the
following manner.
The Class A Percentage will be distributed sequentially
to the Class A-1, A-2, A-3, A-4, A-5, A-6 and A-7
Certificateholders.
The Class A Percentage for any Remittance Date will
equal a fraction, expressed as a percentage, the
numerator of which is the Class A Principal Balance as
of such Remittance Date, and the denominator of which is
the sum of: (i) the Class A Principal Balance, (ii) if
the Class M-1 Distribution Test is satisfied on such
Remittance Date, the Class M-1 Principal Balance,
otherwise zero, (iii) if the Class M-2 Distribution Test
is satisfied on such Remittance Date, the Class M-2
Principal Balance, otherwise zero, and (iv) if the Class
B Distribution Test is satisfied on such Remittance
Date, the Class B Principal Balance, otherwise zero, all
as of such Remittance Date.
The Class M-1 Certificateholders will be entitled to
receive principal on each Remittance Date on which (i)
the Class A Principal Balance has been reduced to zero
or (ii) the Class M-1 Distribution Test is satisfied.
The Class M-1 Percentage for any Remittance Date will
equal (a) zero, if the Class A Principal Balance has not
yet been reduced to zero and the Class M-1 Distribution
Test is not satisfied or (b) a fraction, expressed as a
percentage, the numerator of which is the Class M-1
Principal Balance as of such Remittance Date, and the
denominator of which is the sum of: (i) the Class A
Principal Balance, if any, (ii) the Class M-1 Principal
Balance, (iii) if the Class M-2 Distribution Test is
satisfied on such Remittance Date, the Class M-2
Principal Balance, otherwise zero, and (iv) if the Class
B Distribution Test is satisfied on such Remittance
Date, the Class B Principal Balance, otherwise zero, all
as of such Remittance Date.
The Class M-1 Distribution Test will be satisfied if
each of the following tests is satisfied: (i) the
Remittance Date occurs in or after March 2003; (ii) the
Average Sixty-Day Delinquency Ratio Test (as defined in
the Agreement) as of such Remittance Date must not
exceed 4.50%; (iii) 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; (iv) the
Current Realized Loss Ratio (as defined in the
Agreement) as of such Remittance Date must not exceed
2.75%; and (v) 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
24.375%.
The Class M-2 Certificateholders will be entitled to
receive principal on each Remittance Date on which (i)
the Class A Principal Balance and Class M-1 Principal
Balance has been reduced to zero or (ii) the Class M-2
Distribution Test is satisfied.
The Class M-2 Percentage for any Remittance Date will
equal (a) zero, if the Class A Principal Balance and
Class M 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 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 March 2003; (ii) the
Average Sixty-Day Delinquency Ratio Test (as defined in
the Agreement) as of such Remittance Date must not
exceed 4.50%; (iii) 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; (iv) the
Current Realized Loss Ratio (as defined in the
Agreement) as of such Remittance Date must not exceed
2.75%; and (v) the sum of the Class M-2 Principal
Balance and the Class B Principal Balance divided by the
Pool Scheduled Principal
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>
Balance as of the immediately preceding Remittance Date
must be equal to or greater than 16.50%.
The Class B-1 Certificateholders will be entitled to
receive principal on each Remittance Date on which (i)
the Class A Principal Balance, Class M-1 Principal
Balance, and Class M-2 Principal 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, the
Class M-1 Principal Balance, and Class M-2 Principal
Balance have not yet been reduced to zero and the Class
B Distribution Test is not satisfied or (b) a fraction,
expressed as a percentage, the numerator of which is the
Class B Principal Balance as of such Remittance Date,
and the denominator of which is the sum of: (i) the
Class A Principal Balance, if any, (ii) the Class M-1
Principal Balance, if any, (iii) the Class M-2 Principal
Balance, if any, and (iv) the Class B Principal Balance,
all as of such Remittance Date.
The Class B Distribution Test will be satisfied if each
of the following tests is satisfied: (i) the Remittance
Date occurs in or after March 2003; (ii) the Average
Sixty-Day Delinquency Ratio Test (as defined in the
Agreement) as of such Remittance Date must not exceed
4.50%; (iii) 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; (iv) the Current
Realized Loss Ratio (as defined in the Agreement) as of
such Remittance Date must not exceed 2.75%; (v) the
Class B Principal Balance divided by the Pool Scheduled
Principal Balance as of the immediately preceding
Remittance Date must be equal to or greater than 12.00%;
and (vi) the Class B Principal Balance must not be less
than $14,000,000.
INTEREST
(Class B-2): Interest on the outstanding Class B-2 Principal Balance
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.
To the extent of (i) Amount Available on a Remittance
Date after payment of all interest and principal then
payable on the Class A, Class M-1, Class M-2 and Class
B-1 Certificates, and (ii) the Guarantee Payment, if
any, for such date, interest will be paid to the Class
B-2 Certificateholders at the Class B-2 Remittance
Rate on the Class B-2 Principal Balance.
The Class B-2 Principal Balance is the Original Class B-
2 Principal Balance less all amounts previously
distributed on account of principal of the Class B-2
Certificates.
Interest shortfall will be carried forward, and will
bear interest at the Class B-2 Remittance Rate to the
extent legally permissible.
PRINCIPAL
(Class B-2): The Class B-2 Certificateholders will be entitled to
receive principal on each Remittance Date on which: (i)
the Class B-1 Principal Balance has been reduced to zero
and (ii) the Class B Distribution Test is satisfied,
provided however that if the Class A, Class M-1, Class
M-2 and Class B-1 Principal Balances have been reduced
to 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
January 8, 1999. 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: 12,523
Wgt. Avg. Contract Rate: 9.00%
Range of Rates: 4.25% - 17.00%
Wgt. Avg. Orig. Maturity: 317 mos.
Range of Orig. Maturity: 24-360 mos.
Wgt. Avg. Rem. Maturity: 316 mos.
Range of Rem. Maturity: 21-360 mos.
Avg. Rem Princ. Balance: $ 43,452.08
Wgt. Avg. LTV: 87.64%
New/Used: 75%/25%
Single/Double: 27%/73%
Park/Private: 29%/71%
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 1,101 8.79% $ 51,240,244.51 9.42%
Texas 1,197 9.56% 50,532,267.05 9.29%
Florida 800 6.39% 36,448,762.37 6.70%
Michigan 704 5.62% 35,642,102.45 6.55%
Georgia 762 6.08% 32,889,203.42 6.04%
Alabama 784 6.26% 28,734,064.28 5.28%
Other States (1) 7,175 57.29% 308,663,773.64 56.72%
------ ------ --------------- ------
Total 12,523 100.00% $544,150,417.72 100.00%
</TABLE>
- ---------
(1) Other States category includes those States which constitute less than
5.00% of the outstanding balance of the Initial Pool of Contracts.
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 $10,000.01 397 $ 3,014,238.05 0.55%
$10,000.01 - $20,000.00 1,589 24,298,261.50 4.47%
$20,000.01- $30,000.00 2,263 57,328,645.74 10.54%
$30,000.01 - $40,000.00 2,407 83,722,095.28 15.39%
$40,000.01 - $50,000.00 1,714 76,681,142.83 14.09%
$50,000.01 - $60,000.00 1,371 75,223,836.32 13.82%
$60,000.01 - $70,000.00 1,016 65,631,369.54 12.06%
$70,000.01 - $80,000.00 646 48,229,149.55 8.86%
$80,000.01 - $90,000.00 441 37,330,505.25 6.86%
$90,000.01 - $100,000.00 305 28,870,893.55 5.31%
$100,000.01 - $110,000.00 162 16,799,206.09 3.09%
$110,000.01 - $120,000.00 98 11,231,176.60 2.06%
$120,000.01 - $130,000.00 58 7,192,613.41 1.32%
$130,000.01 - $140,000.00 15 2,017,459.25 0.37%
$140,000.01 - $150,000.00 16 2,317,562.35 0.43%
$150,000.01 - $160,000.00 7 1,074,033.11 0.20%
$160,000.01 - $170,000.00 7 1,162,017.14 0.21%
$170,000.01 - $180,000.00 5 870,760.09 0.16%
$180,000.01 - $190,000.00 4 731,959.58 0.13%
$190,000.01 - $200,000.00 1 193,968.31 0.04%
$200,000.01 and above 1 229,524.18 0.04%
------ --------------- ------
Total 12,523 $544,150,417.72 100.00%
</TABLE>
- ---------
(1) The largest original Contract amount is $229,524.18 which represents 0.04%
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>
CONTRACT RATES OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% of Initial Contract Pool
Range of Contracts by Number of Aggregate Principal by Outstanding
Contract Rate Contracts Balance Outstanding Principal Balance
- ---------------------------- ------------------------------ ------------------------------ -------------------------------
<S> <C> <C> <C>
4.01% - 5.00% 2 $ 65,107.04 0.01%
5.01% - 6.00% 51 3,592,229.31 0.66%
6.01% - 7.00% 1,404 109,452,691.58 20.11%
7.01% - 8.00% 1,426 85,979,426.45 15.80%
8.01% - 9.00% 2,485 121,778,197.39 22.38%
9.01% - 10.00% 2,097 82,885,445.03 15.23%
10.01% - 11.00% 1,749 61,769,302.10 11.35%
11.01% - 12.00% 1,594 45,113,809.10 8.29%
12.01% - 13.00% 1,083 23,519,500.19 4.32%
13.01% - 14.00% 478 8,347,784.75 1.53%
14.01% - 15.00% 20 345,605.41 0.06%
15.01% - 16.00% 89 820,077.06 0.15%
16.01% - 17.00% 45 481,242.31 0.09%
------ --------------- ------
Total (1) 12,523 $544,150,417.72 100.00%
</TABLE>
- ---------
(1) Percentages do not add to 100% due to rounding.
DISTRIBUTION OF ORIGINAL LOAN-TO-VALUE RATIOS OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% of Initial Contract Pool
Number of Aggregate Principal by Outstanding
Loan-to-Value Ratio Contracts Balance Outstanding Principal Balance
- ---------------------------- ------------------------------ ------------------------------ -------------------------------
<S> <C> <C> <C>
Less than 60.001% 531 $ 18,195,192.45 3.34%
60.001 % - 65.000% 168 7,075,503.00 1.30%
65.001 % - 70.000% 242 10,048,862.51 1.85%
70.001 % - 75.000% 356 16,450,363.59 3.02%
75.001 % - 80.000% 1,002 43,141,150.67 7.93%
80.001 % - 85.000% 1,294 61,663,521.40 11.33%
85.001 % - 90.000% 3,943 180,779,698.24 33.22%
90.001 % - 95.000% 3,327 143,629,140.58 26.40%
95.001 % - 100.000% 1,660 63,166,985.28 11.61%
------ --------------- ------
Total 12,523 $544,150,417.72 100.00%
</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>
REMAINING MONTHS TO MATURITY OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% of Initial Contract Pool
Number of Aggregate Principal by Outstanding
Months Remaining Contracts Balance Outstanding Principal Balance
- ---------------------------- ------------------------------ ------------------------------ -------------------------------
<S> <C> <C> <C>
Less than 31 6 $ 37,522.21 0.01%
31 60 235 2,188,778.60 0.40%
61 90 268 3,755,189.59 0.69%
91 120 778 13,117,533.54 2.41%
121 150 266 6,034,494.34 1.11%
151 180 1,544 37,999,368.54 6.98%
181 210 98 3,541,859.78 0.65%
211 240 1,760 57,138,787.90 10.50%
241 270 24 1,058,840.22 0.19%
271 300 977 37,227,014.03 6.84%
301 330 42 2,144,755.43 0.39%
331 360 6,525 379,906,273.54 69.82%
------ --------------- ------
Total (1) 12,523 $544,150,417.72 100.00%
</TABLE>
- ---------
(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>
1985 1 $ 2,824.81 *
1988 1 10,703.76 *
1989 1 9,171.71 *
1990 1 14,504.65 *
1991 2 25,677.89 *
1992 1 39,251.76 0.01%
1993 1 37,013.99 0.01%
1994 7 353,954.54 0.07%
1995 18 886,946.33 0.16%
1996 22 1,261,594.86 0.23%
1997 34 2,644,924.09 0.49%
1998 12,023 524,053,576.82 96.31%
1999 411 14,810,272.51 2.72%
------ --------------- ------
Total 12,523 $544,150,417.72 100.00%
</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)
<TABLE>
<CAPTION>
100% MHP 125% MHP 150% MHP 175% MHP
WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity
To Call
<S> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 0.46 12/99 0.40 11/99 0.36 10/99 0.32 9/99
A-2 1.63 7/01 1.41 3/01 1.24 12/00 1.11 10/00
A-3 3.88 8/04 3.31 10/03 2.90 3/03 2.58 10/02
A-4 7.32 6/08 6.27 3/07 5.47 3/06 4.74 4/05
A-5 11.72 6/13 10.16 9/11 8.92 4/10 7.81 12/08
A-6 15.77 7/16 13.88 6/14 12.33 10/12 10.91 4/11
A-7 20.78 4/21 18.68 2/19 16.85 4/17 15.21 8/15
M-1 13.65 4/21 12.01 2/19 10.70 4/17 9.90 8/15
M-2 13.65 4/21 12.01 2/19 10.70 4/17 9.90 8/15
B-1 8.39 11/10 7.19 4/09 6.30 1/08 5.95 5/07
B-2 18.08 4/21 16.10 2/19 14.47 4/17 13.22 8/15
To Maturity
A-7 22.06 4/27 20.16 4/26 18.36 1/25 16.69 8/23
M-1 14.03 4/27 12.45 4/26 11.15 1/25 10.37 8/23
M-2 14.03 4/27 12.45 4/26 11.15 1/25 10.37 8/23
B-2 21.12 4/29 19.88 4/29 18.75 4/29 17.79 4/29
</TABLE>
<TABLE>
<CAPTION>
200% MHP 250% MHP 300% MHP 350% MHP
WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity
To Call
<S> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 0.29 9/99 0.25 8/99 0.23 7/99 0.20 6/99
A-2 1.01 8/00 0.85 5/00 0.73 3/00 0.65 2/00
A-3 2.33 5/02 1.97 11/01 1.70 6/01 1.51 3/01
A-4 4.16 6/04 3.38 4/03 2.90 8/02 2.54 3/02
A-5 6.87 10/07 5.42 1/06 4.38 10/04 3.69 9/03
A-6 9.69 12/09 7.78 11/07 6.34 4/06 5.20 1/05
A-7 13.76 2/14 11.44 10/11 9.63 12/09 8.19 7/08
M-1 9.26 2/14 8.27 10/11 7.51 12/09 6.91 7/08
M-2 9.26 2/14 8.27 10/11 7.51 12/09 6.91 7/08
B-1 5.74 12/06 5.42 4/06 5.19 10/05 5.02 5/05
B-2 12.19 2/14 10.57 10/11 9.33 12/09 8.38 7/08
To Maturity
A-7 15.17 1/22 12.64 12/18 10.66 6/16 9.06 4/14
M-1 9.75 1/22 8.76 12/18 8.02 6/16 7.44 4/14
M-2 9.75 1/22 8.76 12/18 8.02 6/16 7.44 4/14
B-2 16.97 4/29 15.26 4/29 13.69 4/29 12.33 4/29
</TABLE>
(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 $ 7,695,190.66 102 102 12.200%
121 to 180 $ 17,336,559.95 176 176 11.440%
181 to 240 $ 21,354,795.95 238 238 10.430%
241 to 300 $ 9,036,097.74 298 298 10.380%
301 to 360 $100,426,937.98 360 360 9.310%
--------------- --- --- ------
Total $155,849,582.28 306 306 9.905%
</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
