<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): August 19, 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
- --------------------------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: (651) 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.
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 $2,000,000,000
(Approximate) Manufactured Housing Contract
Senior/Subordinate Pass-Through Certificates,
Series 1999-5, 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/ Scott T. Young
------------------------------------
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 $2,000,000,000 (Approximate) Manufactured Housing Contract
Senior/Subordinate Pass-Through Certificates, Series 1999-5, to be
issued by Green Tree Financial Corporation, as Seller and Servicer.
4
<PAGE>
EXHIBIT 99.1
TERM SHEET DATED August 19, 1999
$2,000,000,000 (Approximate)
- --------------------------------------------------------------------------------
GREEN TREE FINANCIAL CORPORATION
- --------------------------------------------------------------------------------
[LOGO OF GREEN TREE FINANCIAL]
- --------------------------------------------------------------------------------
Certificates for Manufactured Housing Contract, Series 1999-5
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 be 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 August 19, 1999
Green Tree Financial Corporation
Certificates for Manufactured Housing Contract, Series 1999-5
$2,000,000,000 (Approximate)
Subject to Revision
Seller/Servicer Green Tree Financial Corporation ("Green Tree")
Trustee U.S. Bank Trust National Association
Underwriters Lehman Brothers Inc. (Lead),
J.P. Morgan Securities Inc. (Co), and
Merrill Lynch, Pierce, Fenner & Smith Incorporated
(Co)
<TABLE>
<CAPTION>
====================================================================================================
Amount Ratings (S&P/Fitch) WAL at 175% MHP Exp. Final Maturity
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
To Call
A-1 $150,000,000 AAA / AAA 0.95 07/2001
A-2 $70,000,000 AAA / AAA 2.16 04/2002
A-3 $110,000,000 AAA / AAA 3.17 08/2003
A-4 $125,000,000 AAA / AAA 5.04 03/2006
A-5 $295,000,000 AAA / AAA 11.84 06/2016
A-6 $850,000,000 AAA / AAA 6.35 06/2016
M-1 $120,000,000 AA / AA 10.00 06/2016
M-2 $70,000,000 A / A 10.00 06/2016
B-1 $70,000,000 BBB / BBB 5.44 10/2006
B-2 $140,000,000 BBB- / BBB+ 12.31 06/2016
To Maturity
A-5 $295,000,000 AAA / AAA 12.52 06/2024
A-6 $850,000,000 AAA / AAA 6.62 06/2024
M-1 $120,000,000 AA / AA 10.49 06/2024
M-2 $70,000,000 A / A 10.49 06/2024
B-2 $140,000,000 BBB- / BBB+ 15.23 10/2029
Total Balance $2,000,000,000
- ----------------------------------------------------------------------------------------------------
</TABLE>
FOR INFORMATION CONCERNING CERTAIN RISK FACTORS THAT SHOULD BE CONSIDERED BY
PROSPECTIVE INVESTORS, SEE "RISK FACTORS" IN THE PROSPECTUS SUPPLEMENT.
CAPITALIZED TERMS USED HEREIN AND NOT OTHERWISE DEFINED HAVE THE MEANINGS SET
FORTH IN THE PROSPECTUS AND PROSPECTUS SUPPLEMENT.
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>
Cut-off Date July 31, 1999 for a portion of the Pool and August
31, 1999 for the remaining portion of the Pool, in
each case for contracts other than Subsequent
Contracts. For each Subsequent Contract, the trust
will be entitled to receive all payments due after
the last day of the calendar month in which the
subsequent closing occurs.
Exp. Pricing August 19, 1999
Exp. Settlement/
Closing Date September 15, 1999
Legal Final The Remittance Date in April 2031.
Remittance Date The 1st day of each month (or if such 1st day is not
a business day, the next succeeding business day)
commencing on October 1, 1999.
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 Subject to the conditions set forth in the Prospectus
Supplement, the Class A Certificates are ERISA
eligible. No transfer of a Class M or a Class B
Certificate will be permitted to be made to any
benefit plan unless such plan delivers an opinion of
counsel to the Trustee.
SMMEA The Class A and the 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 amount in the
Prefunding Account is reduced to zero. At such time,
the Class A and Class M-1 Certificates will be "legal
investments" for certain types of institutional
investors to the extent provided in SMMEA. The Class
M-2, Class B-1 and Class 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.
Pre-Funding Account 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 additional contracts
(the "Subsequent Contracts") during a period (not
longer than 90 days) following the Closing Date (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. Any amounts
remaining in the Pre-Funding Account following the
Pre-Funding Period will be paid to the Class A-1 and
Class A-6 Certificateholders pro-rata on the next
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>
Credit Enhancement Class A: 20.00% subordination (Class M-1, M-2, B-1
and B-2) plus Excess Spread (Class B-3I)
Class M-1: 14.00% subordination (Class M-2, B-1 and
B-2) plus Excess Spread (Class B-3I)
Class M-2: 10.50% subordination (Class B-1 and B-2)
plus Excess Spread (Class B-3I)
Class B-1: 7.00% subordination (Class B-2) plus
Excess Spread (Class B-3I)
Class B-2: Limited Guaranty plus Excess Spread
(Class B-3I)
Distributions Certificateholders will be entitled to receive on
each Remittance Date commencing in October 1999, to
the extent that the Amount Available in the
Certificate Account (together with, in the case of
the Class B-2 Certificates, the Guarantee Payment, as
described below) is sufficient therefor,
distributions allocable to interest and principal, as
described in the Prospectus Supplement. The Amount
Available on each Remittance Date generally includes
the sum of (i) payments on the Contracts due and
received during the related Due Period, (ii)
prepayments and other unscheduled collections
received during the related Due Period, and (iii) 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 (iv) with respect to all
Remittance Dates other than the Remittance Date in
October 1999, all collections in respect of principal
on the Contracts received during the related Due
Period up to and including the third business day
prior to the preceding Remittance Date (but in no
event later than the 25th day of the prior month).
The Amount Available in the Certificate Account with
respect to any Distribution Date will be applied
first to the distribution of interest on the Class A,
Class M-1, Class M-2 and Class B-1 Certificates, and
then to the distribution of principal on the Class A,
Class M-1, Class M-2 and Class B-1 Certificates, in
the manner and order of priority described below, and
then to the distribution of interest and principal on
the Class B-2 Certificates.
The "Due Period" with respect to all Remittance Dates
other than the Remittance Date in October 1999, is
the period from and including the 16th day of the
second month preceding such Remittance Date, to and
including the 15th day of the month immediately
preceding such Remittance Date.
With respect to the Remittance Date in October 1999,
the Due Period is the period from and including
August 1, 1999 to and including September 15, 1999.
Interest on the Class A,
Class M-1, Class M-2 and
Class B-1 Certificates Interest will be distributable first to each class of
the 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.
All Certificates will bear interest at a fixed
Pass-Through Rate calculated on a 30/360 basis.
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>
Interest on the Class A,
Class M-1, Class M-2 and
Class B-1 Certificates
(Cont'd) The "Class M-1 Adjusted Principal Balance" as of any
Remittance Date 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" as of any
Remittance Date 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" as of any
Remittance Date 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.
In the event that, on a particular Remittance Date,
the Amount Available in the Certificate Account,
after payment of interest on each Class of
Certificates that is senior to such Class of
Certificates, is not sufficient to make a full
distribution of interest to the holders of such Class
of Certificates, the amount of interest to be
distributed in respect of such Class will be
allocated among the outstanding Certificates of such
Class pro rata in accordance with their respective
entitlements to interest, and the amount of the
shortfall will be carried forward and added to the
amount such holders will be entitled to receive on
the next Remittance Date. Any such amount so carried
forward will bear interest at the applicable
Remittance Rate, to the extent legally permissible.
Principal on the Class A,
Class M-1, Class M-2 and
Class B-1 Certificates The Class A Certificates are divided into two Groups.
The Class A Group I is comprised of the Class A-1,
A-2, A-3, A-4 and A-5 Certificates. The Class Group
II is comprised of the Class A-6 Certificates. The
Class A Percentage will be distributed pro-rata among
the Class A Group I and Class A Group II
Certificates. The portion of the The Class A Group I
Percentage will be distributed sequentially to the
Class A-1, A-2, A-3, A-4 and A-5 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.
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>
Principal on the Class A,
Class M-1, Class M-2 and
Class B-1 Certificates
(Cont'd) 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 October 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 30.00%.
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 have 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-1 Principal Balance have not yet been reduced
to zero and the Class M-2 Distribution Test is not
satisfied or (b) a fraction, expressed as a
percentage, the numerator of which is the Class M-2
Principal Balance as of such Remittance Date, and the
denominator of which is the sum of: (i) the Class A
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 October 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 Balance as of the immediately preceding
Remittance Date must be equal to or greater than
21.00%.
The Class B-1 Certificateholders will be entitled to
receive principal on each Remittance Date on which
(I) the Class A Principal Balance, the Class M-1
Principal Balance and the 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 the 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.
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>
Principal on the Class A,
Class M-1, Class M-2 and
Class B-1 Certificates
(Cont'd) The Class B Distribution Test will be satisfied if
each of the following tests is satisfied: (i) the
Remittance Date occurs in or after October 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
15.75%; and (vi) the Class B Principal Balance must
not be less than $40,000,000.
Class B-2 Interest 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) the remaining Amount Available,
if any, for 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 on such Remittance Date at the
Class B-2 Remittance Rate on the then outstanding
Class B-2 Principal Balance. The Class B-2 Principal
Balance is the Original Class B-2 Principal Balance
less all amounts previously distributed to the Class
B-2 Certificateholders (including any Guarantee
Payments) on account of principal.
In the event that, on a particular Remittance Date,
the remaining Amount Available in the Certificate
Account plus any amounts actually paid under the
Limited Guarantee are not sufficient to make a full
distribution of interest to the Class B-2
Certificateholders, the amount of the deficiency will
be carried forward as an amount that the Class B-2
Certificateholders are entitled to receive on the
next Remittance Date. Any amount so carried forward
will, to the extent legally permissible, bear
interest at the Class B-2 Remittance Rate.
Class B-2 Principal Except for payments of the Class B-2 Liquidation Loss
Amount under the Limited Guarantee, 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 Principal
Balance, the Class M-1 Principal Balance, the Class
M-2 Principal Balance and the Class B-1 Principal
Balance have been reduced to zero, the Class B-2
Certificateholders will nevertheless be entitled to
receive principal. See "Description of the
Certificates--Class B-2 Principal" in the Prospectus
Supplement.
On each Remittance Date on which the Class B-2
Certificateholders are entitled to receive principal,
the Class B Percentage of the Formula Principal
Distribution Amount will be distributed, to the
extent of the remaining Amount Available after
payment of interest on the Class B-2 Certificates, to
the Class B-2 Certificateholders until the Class B-2
Principal Balance has been reduced to zero. Green
Tree 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 such Remittance Date exceeds the remaining
Amount Available after payment of interest on the
Class B-2 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.
7
<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, since a portion of the Amount
Available equal to such shortfall and otherwise
distributable to them will be paid to the Class A
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.
8
<PAGE>
MANUFACTURED HOUSING CONTRACT CHARACTERISTICS
The information presented below relates to the Initial Contracts, which
will represent approximately 39% of the Contract Pool. 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 Subsequent Contracts sold to the Trust will vary
materially from the information concerning the Initial Contracts herein.
The initial contract pOOL
- -------------------------------------------------------------------------
Number of Contracts: 19,049
Wgt. Avg. Contract Rate: 9.86%
Range of Rates: 4.0% - 18.0%
Wgt. Avg. Orig. Maturity: 317 months
Wgt. Avg. Rem. Maturity: 315 months
Avg. Rem Princ. Balance: $40,858
Wgt. Avg. LTV: 88.25%
New/Used: 73.9% / 26.1%
Park/Private: 31.2% / 68.8%
Single/Double: 32.1% / 67.9%
Land/Home: 26.6%
Step Rate: 2.7%
Conventional: 100%
- -------------------------------------------------------------------------
YEARS OF ORIGINATION OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% of Contracts by
Number of Aggregate Principal Outstanding Principal
Year of Origination Contracts Balance Outstanding Balance
------------------- --------- ------------------- ---------------------
<S> <C> <C> <C>
1984 2 2,229.72 *
1985 80 224,180.43 0.03%
1986 133 645,093.49 0.08%
1987 147 1,336,612.95 0.17%
1988 195 2,351,306.21 0.30%
1989 153 2,239,082.94 0.29%
1990 25 306,196.53 0.04%
1991 20 215,607.16 0.03%
1992 32 396,351.97 0.05%
1993 82 1,318,429.40 0.17%
1994 175 3,420,780.94 0.44%
1995 310 6,835,892.68 0.88%
1996 121 3,167,776.80 0.41%
1997 76 2,810,894.47 0.36%
1998 1,797 80,586,772.52 10.35%
1999 15,701 672,438,927.80 86.40%
------ --------------- ------
Total(1) 19,049 $778,296,136.01 100.00%
</TABLE>
* Indicates an amount greater than 0.000% but less than 0.005%.
(1) Percentages may not add to 100% due to rounding.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
9
<PAGE>
GEOGRAPHIC DISTRIBUTION OF INITIAL CONTRACT OBLIGORS
<TABLE>
<CAPTION>
Aggregate Principal % of Contracts by
Number of Balance Outstanding Principal
State Contracts Outstanding Balance
----- --------- ------------------- ---------------------
<S> <C> <C> <C>
NC 1,879 $87,579,040.73 11.25%
TX 1,630 69,210,112.60 8.89%
FL 1,110 50,161,500.22 6.45%
GA 1,169 48,871,784.17 6.28%
MI 1,712 48,044,406.01 6.17%
SC 996 46,190,973.59 5.93%
AL 1,267 42,602,416.92 5.47%
Other States* 9,286 385,635,901.77 49.55%
------ --------------- ------
Total(1) 19,049 $778,296,136.01 100.00%
</TABLE>
(1) Percentages may not add to 100% due to rounding.
DISTRIBUTION OF ORIGINAL INITIAL CONTRACT AMOUNTS
<TABLE>
<CAPTION>
% of Contracts by
Original Contract Number of Aggregate Principal Outstanding Principal
Amount (in Dollars) Contracts Balance Outstanding Balance
------------------- --------- ------------------- ---------------------
<S> <C> <C> <C>
Less than 10,000.01 521 $3,915,252.79 0.50%
10,000.01 - 20,000.00 2,752 37,768,975.29 4.85%
20,000.01 - 30,000.00 3,685 90,329,844.49 11.61%
30,000.01 - 40,000.00 3,928 135,505,688.68 17.41%
40,000.01 - 50,000.00 2,593 115,622,192.43 14.86%
50,000.01 - 60,000.00 2,028 110,743,094.72 14.23%
60,000.01 - 70,000.00 1,375 88,947,956.47 11.43%
70,000.01 - 80,000.00 796 59,283,494.95 7.62%
80,000.01 - 90,000.00 517 43,746,589.19 5.62%
90,000.01 - 100,000.00 390 36,955,122.32 4.75%
100,000.01 - 110,000.00 174 18,028,841.95 2.32%
110,000.01 - 120,000.00 112 12,784,187.10 1.64%
120,000.01 - 130,000.00 85 10,564,063.48 1.36%
130,000.01 - 140,000.00 36 4,836,130.51 0.62%
140,000.01 - 150,000.00 20 2,892,352.79 0.37%
150,000.01 - 160,000.00 17 2,625,353.41 0.34%
160,000.01 - 170,000.00 7 1,147,566.23 0.15%
170,000.01 - 180,000.00 1 174,844.50 0.02%
180,000.01 - 190,000.00 5 918,358.18 0.12%
190,000.01 - 200,000.00 2 395,846.91 0.05%
200,000.01 - 210,000.00 1 207,225.72 0.03%
210,000.01 - 220,000.00 1 211,986.15 0.03%
220,000.01 - 230,000.00 1 229,087.05 0.03%
230,000.01 - 240,000.00 2 462,080.70 0.06%
------ --------------- ------
Total(1) 19,049 $778,296,136.01 100.00%
</TABLE>
(1) Percentages may not add to 100% due to rounding.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
10
<PAGE>
INITIAL CONTRACT RATES
<TABLE>
<CAPTION>
% of Contracts by
Range of Contracts by Number of Aggregate Principal Outstanding Principal
Contract Rates Contracts Balance Outstanding Balance
--------------------- --------- ------------------- ---------------------
<S> <C> <C> <C>
3.001 - 4.000 1 $149,981.95 0.02%
4.001 - 5.000 1 108,191.40 0.01%
5.001 - 6.000 11 823,919.57 0.11%
6.001 - 7.000 335 26,288,003.24 3.38%
7.001 - 8.000 1,632 122,302,404.68 15.71%
8.001 - 9.000 2,259 131,066,674.16 16.84%
9.001 - 10.000 4,073 180,952,954.37 23.25%
10.001 - 11.000 3,461 129,645,371.61 16.66%
11.001 - 12.000 3,016 91,280,986.92 11.73%
12.001 - 13.000 2,289 57,349,014.27 7.37%
13.001 - 14.000 1,417 30,045,336.13 3.86%
14.001 - 15.000 375 6,312,920.82 0.81%
15.001 - 16.000 53 660,327.48 0.08%
16.001 - 17.000 112 1,139,307.58 0.15%
Greater than 17.000 14 170,741.83 0.02%
------ --------------- ------
Total(1) 19,049 $778,296,136.01 100.00%
</TABLE>
(1) Percentages may not add to 100% due to rounding.
DISTRIBUTION OF ORIGINAL LOAN-TO-VALUE RATIOS OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% of Contracts by
Loan to Value Number of Aggregate Principal Outstanding Principal
Ratio Contracts Balance Outstanding Balance
------------- --------- ------------------- ---------------------
<S> <C> <C> <C>
0.01 - 5.00 3 $222,073.17 0.03%
5.01 - 10.00 6 280,633.27 0.04%
10.01 - 15.00 8 277,397.63 0.04%
15.01 - 20.00 17 416,278.93 0.05%
20.01 - 25.00 20 578,325.16 0.07%
25.01 - 30.00 21 804,455.95 0.10%
30.01 - 35.00 27 562,797.95 0.07%
35.01 - 40.00 40 1,161,806.62 0.15%
40.01 - 45.00 72 2,062,884.79 0.27%
45.01 - 50.00 94 3,097,649.44 0.40%
50.01 - 55.00 108 3,663,561.56 0.47%
55.01 - 60.00 154 6,241,924.70 0.80%
60.01 - 65.00 230 8,892,467.21 1.14%
65.01 - 70.00 319 13,096,553.91 1.68%
70.01 - 75.00 460 20,617,841.05 2.65%
75.01 - 80.00 1,561 64,164,442.25 8.24%
80.01 - 85.00 1,349 60,649,469.59 7.79%
85.01 - 90.00 6,230 277,170,957.28 35.61%
90.01 - 95.00 5,864 244,697,914.42 31.44%
95.01 - 100.00 2,466 69,636,701.13 8.95%
------ --------------- ------
Total(1) 19,049 $778,296,136.01 100.00%
</TABLE>
(1) Percentages may not add to 100% due to rounding.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
11
<PAGE>
REMAINING MONTHS TO MATURITY OF INITIAL CONTRACTS
<TABLE>
<CAPTION>
% of Contracts by
Number of Aggregate Principal Outstanding Principal
Months Remaining Contracts Balance Outstanding Balance
---------------- --------- ------------------- ---------------------
<S> <C> <C> <C>
1 - 30 232 $843,740.58 0.11%
31 - 60 514 4,140,273.03 0.53%
61 - 90 526 6,932,682.91 0.89%
91 - 120 1,203 20,912,664.54 2.69%
121 - 150 681 14,422,710.53 1.85%
151 - 180 1,947 47,049,791.64 6.05%
181 - 210 241 7,587,377.55 0.97%
211 - 240 2,284 71,761,330.85 9.22%
241 - 270 50 2,197,482.89 0.28%
271 - 300 1,610 61,112,053.90 7.85%
301 - 330 27 1,415,731.02 0.18%
331 - 360 9,734 539,920,296.57 69.37%
------ --------------- ------
Total(1) 19,049 $778,296,136.01 100.00%
</TABLE>
(1) Percentages may 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.
12
<PAGE>
PREPAYMENT SENSITIVITIES
<TABLE>
<CAPTION>
75% MHP 125% MHP 175% MHP 250% MHP 300% MHP
WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity WAL/Maturity
--------------- --------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
To Call
A-1 1.71 12/02 1.21 01/02 0.95 07/01 0.72 02/01 0.62 12/00
A-2 3.95 06/04 2.77 01/03 2.16 04/02 1.64 09/01 1.42 05/01
A-3 5.89 12/06 4.12 11/04 3.17 08/03 2.38 08/02 2.06 03/02
A-4 9.46 08/11 6.74 04/08 5.04 03/06 3.49 12/03 2.98 04/03
A-5 19.01 03/24 14.94 02/20 11.84 06/16 8.49 06/12 6.94 08/10
A-6 10.63 03/24 8.10 02/20 6.35 06/16 4.57 06/12 3.78 08/10
M-1 15.84 03/24 12.24 02/20 10.00 06/16 8.31 06/12 7.53 08/10
M-2 15.84 03/24 12.24 02/20 10.00 06/16 8.31 06/12 7.53 08/10
B-1 9.28 10/11 6.62 06/08 5.44 10/06 5.04 12/05 4.87 08/05
B-2 19.17 03/24 15.10 02/20 12.31 06/16 9.94 06/12 8.87 08/10
To Maturity
A-5 19.47 08/28 15.60 02/27 12.52 06/24 9.05 10/19 7.40 03/17
A-6 10.81 08/28 8.36 02/27 6.62 06/24 4.79 10/19 3.97 03/17
M-1 16.16 08/28 12.69 02/27 10.49 06/24 8.85 10/19 8.08 03/17
M-2 16.16 08/28 12.69 02/27 10.49 06/24 8.85 10/19 8.08 03/17
B-2 20.59 10/29 17.45 10/29 15.23 10/29 12.97 10/29 11.70 10/29
</TABLE>
(1) The following are the assumed characteristics of the Additional and
Subsequent Contracts as of the Cut-off Date:
<TABLE>
<CAPTION>
Aggregate Principal Wtd Avg Wtd Avg Wtd Avg
Months Remaining Balance Outstanding Original Term Remaining Term Contract Rate
---------------- ------------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
0 to 120 $50,150,865.63 104 104 12.277%
121 to 180 113,746,712.28 175 175 12.015%
181 to 240 136,145,150.47 238 238 11.514%
241 to 300 102,708,150.74 300 300 11.492%
301 to 360 818,952,984.87 360 360 10.045%
----------------- --- --- ------
Total $1,221,703,863.99 314 314 10.605%
</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.
13
