SUPERIOR BANK FSB
8-K, 1997-03-07
ASSET-BACKED SECURITIES
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- --------------------------------------------------------------------------------

                       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) March 5, 1997

SUPERIOR BANK FSB (as depositor under the Pooling and Servicing Agreement, dated
as of March 1, 1997, providing for the issuance of AFC Mortgage Loan Asset
Backed Certificates, Series 1997-1)

                                Superior Bank FSB
                                -----------------

             (Exact name of registrant as specified in its charter)


        United States                  333-21485              36-1414142
- ----------------------------       ---------------      ----------------------
(State or Other Jurisdiction       (Commission          (I.R.S. Employer
of Incorporation)                  File Number)         Identification Number)

One Lincoln Centre
Oakbrook Terrace, Illinois                               60181
- --------------------------                             ---------
(Address of Principal                                 (Zip Code)
Executive Offices)

Registrant's telephone number, including area code (708) 916-4000

- --------------------------------------------------------------------------------
<PAGE>

                                    -2-


Item 5. Other Events.

     On or about March 20, 1997, the Registrant will cause the issuance and sale
of approximately $220,000,000 initial principal amount of AFC Mortgage Loan
Asset Backed Certificates, Series 1997-1, Class A and Class R (collectively, the
"Certificates") pursuant to a Pooling and Servicing Agreement to be dated as of
March 1, 1997, among the Registrant, Lee Servicing Company, a division of the
Registrant, as servicer and LaSalle National Bank as trustee.

     In connection with the sale of AFC Mortgage Loan Asset Backed Certificates,
Series 1997-1, Class A (collectively, the "Underwritten Certificates"), the
Registrant has been advised by Merrill Lynch, Pierce, Fenner & Smith
Incorporated and J.P. Morgan Securities Inc. (together, the "Underwriters") that
the Underwriters have furnished to prospective investors certain yield tables
and other computational materials, collateral term sheets and structural term
sheets (the "Computational Materials") with respect to the Underwritten
Certificates following the effective date of Registration Statement No.
333-21485, which Computational Materials are being filed as exhibits to this
report.

     The information in the Computational Materials will be superseded by the
Prospectus Supplement relating to the Certificates and by any other information
subsequently filed with the Securities and Exchange Commission.

     The Computational Materials were prepared by the Underwriters at the
request of certain prospective investors, based on collateral information
provided by the Registrant and assumptions provided by, and satisfying the
special requirements of, such prospective investors. The Computational Materials
may be based on assumptions that differ from the assumptions set forth in the
Prospectus Supplement. The Computational Materials may not include, and do not
purport to include, information based on assumptions representing a complete set
of possible scenarios. Accordingly, the Computational Materials may not be
relevant to or appropriate for investors other than those specifically
requesting them.

     In addition, the actual characteristics and performance of the mortgage
loans underlying the Underwritten Certificates (the "Mortgage Loans") may differ
from the assumptions used in the Computational Materials, which are hypothetical
in nature and which were provided to certain investors only to give a general
sense of how the yield, average life, duration, expected maturity, interest rate
sensitivity and cash flow characteristics of a particular class of Underwritten
Certificates might vary under varying prepayment and other scenarios. Any
difference between such assumptions and the actual characteristics and
performance of the Mortgage Loans will affect the actual yield, average life,
duration, expected maturity, interest rate sensitivity and cash flow
characteristics of the Underwritten Certificates.
<PAGE>

                                    -3-


Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

      (a)   Financial Statements.

            Not Applicable.

      (b)   Pro Forma Financial Information.

            Not Applicable.

      (c)   Exhibits


                  Item 601(a) of
                  Regulation S-K
Exhibit No.       Exhibit No.             Description
- -----------       --------------          -----------
      1           99                      Computational Materials
<PAGE>

                                    -4-


                                   SIGNATURES

     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 thereunto duly authorized.

                                          SUPERIOR BANK FSB

                                          By:/s/ William C. Bracken
                                             -----------------------------------
                                          Name:  William C. Bracken
                                          Title: Senior Vice President
                                                 and Chief Financial Officer

Dated:  March 5, 1997
<PAGE>

                                    -5-


                                 EXHIBIT INDEX
                                 -------------

Exhibit No.          Description                                      Page
- -----------          -----------                                      ----
1                    Computational Materials                            6






[LOGO] Merrill Lynch                        Computational Materials
================================================================================


           AFC Mortgage Loan Asset Backed Certificates, Series 1997-1
                           $220,000,000 (Approximate)

                               Subject to Revision


                             Computational Materials


- --------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement. Do not
use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Merrill Lynch
account executive for another copy.
<PAGE>

The attached tables and other statistical analyses (the "Computational
Materials") are privileged and confidential and are intended for use by the
addressee only. These Computational Materials are furnished to you solely by
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch") and not by
the issuer of the securities or any of its affiliates. The issuer of these
securities has not prepared or taken part in the preparation of these materials.
Neither Merrill Lynch, the issuer of the securities nor any of its affiliates
makes any representation as to the accuracy or completeness of the information
herein. The information herein is preliminary, and will be superseded by the
applicable Prospectus Supplement and by any other information subsequently filed
with the Securities and Exchange Commission. The information herein may not be
provided by the addressees to any third party other than the addressee's legal,
tax, financial and/or accounting advisors for the purposes of evaluating said
material.

Numerous assumptions were used in preparing the Computational Materials which
may or may not be stated therein. As such, no assurance can be given as to the
accuracy, appropriateness or completeness of the Computational Materials in any
particular context; or as to whether the Computational Materials and/or the
assumptions upon which they are based reflect present market conditions or
future market performance. These Computational Materials should not be construed
as either projections or predictions or as legal, tax, financial or accounting
advice.

Any yields or weighted average lives shown in the Computational Materials are
based on prepayment assumptions and actual prepayment experience may
dramatically affect such yields or weighted average lives. In addition, it is
possible that prepayments on the underlying assets will occur at rates slower or
faster than the rates assumed in the attached Computational Materials.
Furthermore, unless otherwise provided, the Computational Materials assume no
losses on the underlying assets and no interest shortfall. The specific
characteristics of the securities may differ from those shown in the
Computational Materials due to differences between the actual underlying assets
and the hypothetical assets used in preparing the Computational Materials. The
principal amount and designation of any security described in the Computational
Materials are subject to change prior to issuance.

Although a registration statement (including the prospectus) relating to the
securities discussed in this communication has been filed with the Securities
and Exchange Commission and is effective, the final prospectus supplement
relating to the securities discussed in this communication has not been filed
with the Securities and Exchange Commission. This communication shall not
constitute an offer to sell or the solicitation of any offer to buy nor shall
there be any sale of the securities discussed in this communication in any state
in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such state.
Prospective purchasers are referred to the final prospectus and prospectus
supplement relating to the securities discussed in this communication for
definitive Computational Materials on any matter discussed in this
communication.. A final prospectus and prospectus supplement may be obtained by
contacting the Merrill Lynch Trading Desk at (212) 449 - 3659.

Please be advised that asset-backed securities may not be appropriate for all
investors. Potential investors must be willing to assume, among other things,
market price volatility, prepayments, yield curve and interest rate risk.
Investors should fully consider the risk of an investment in these securities.

If you have received this communication in error, please notify the sending
party immediately by telephone and return the original to such party by mail.


                                       2


- --------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement. Do not
use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Merrill Lynch
account executive for another copy.
<PAGE>

DEPOSITOR:        Superior Bank FSB, will deposit into the Trust Fund mortgage
                  loans originated or purchased by the Depositor.

SERVICER:         The Lee Servicing Company division of the Depositor

TRUSTEE:          LaSalle National Bank

UNDERWRITER:      Merrill Lynch & Co. (Lead) and JP Morgan & Co. (Co.)

                               Ratings               Beg. Amort.    End Amort.
Class        Amount         (Moody's/S&P)   WAL      (Mo./Date)     (Mo./Date)

To Maturity:
A           $220,000,000      Aaa/AAA       3.32     1/Apr.-97      202/Jan.-14

To Call:
A           $220,000,000      Aaa/AAA       3.21     1/Apr.-97      119/Feb.-07

CUT-OFF DATE:     March 1, 1997

EXP. PRICING:     Week of March 3, 1997

EXP. SETTLEMENT:  Week of March 17, 1997

STATED FINAL
MATURITY:         June 2027 (Approximate)

INTEREST/
PRINCIPAL:        The 25th day of each  month (or if such 25th day is not a  
                  business  day,  the next  succeeding business day), 
                  commencing on April 25, 1997.

SMMEA:            The Class A Certificates will not be SMMEA eligible.

ERISA:            Subject  to the  conditions  set  forth in the  prospectus,  
                  it is  believed  that the  Class A Certificates  would 
                  generally be ERISA eligible.  Prospective  purchasers  should 
                  consult theircounsel.

TAX STATUS:       On the  Closing  Date,  a REMIC  election  will be made with  
                  respect to certain  assets of the Trust.


                                       3


- --------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement. Do not
use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Merrill Lynch
account executive for another copy.
<PAGE>

COLLATERAL:        Sub-Pool 1: conventional, fixed-rate mortgage loans secured
                   by first or second liens on one- to four-family residential
                   properties ("Single Family Properties"), residential
                   properties consisting of five or more dwelling units
                   ("Multifamily Properties") and mixed residential and
                   commercial structures ("Mixed Use Properties") plus Sub-Pool
                   1 pre-funding account. 

                   Sub-Pool 2: conventional, adjustable rate mortgage loans
                   secured by first liens on Single Family Properties, 2-4
                   Family Properties and Condominiums indexed to 1-Year CMT and
                   6 Month LIBOR plus Sub-Pool 2 pre-funding account.

CREDIT
ENHANCEMENT:       Overcollateralization plus 100% FGIC Guarantee of timely
                   receipt of interest on the Class A Certificates and ultimate
                   receipt of principal on the Class A Certificates.

INITIAL
OVERCOLLATERAL-
IZATION:           Credit Enhancement with respect to the Class A Certificates
                   will be provided in part by the Initial Overcollateralization
                   Amount resulting from the excess of the sum of the Original
                   Principal Balances of the Sub-Pools and the Pre-Funded
                   Amounts over the initial Certificate Principal Balance as of
                   the Closing Date.

PRE-FUNDING ACCOUNTS:

Original Sub-Pool 1 Pre-Funding Amount: $35,655,423 (approximate)
Original Sub-Pool 2 Pre-Funding Amount: $54,748,701 (approximate)

The Original Sub-Pool 1 and Original Sub-Pool 2 Pre-Funding Amounts will be
reduced during the Funding Period (approx. 2 months) by the amounts thereof used
to purchase the related Subsequent Mortgage Loans. Any amount remaining at the
end of the Funding Period in Sub-Pool 1 and Sub-Pool 2 Pre-Funding Accounts will
be used to prepay principal to the Class A Certificates.


                                       4


- --------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement. Do not
use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Merrill Lynch
account executive for another copy.
<PAGE>

PRINCIPAL AND INTEREST DISTRIBUTIONS:

The Class A Certificates will receive payments of principal and interest from
both the Sub-Pool 1 and Sub-Pool 2 Mortgage Loans.

The Class A Certificateholders will receive interest each month on the basis of
the actual number of days elapsed in the related interest period divided by 360
days times the Certificate Rate times the Outstanding Balance of the
Certificates prior to any distributions. In addition, the Class A
Certificateholders will receive all scheduled and unscheduled principal
distributions from Sub-Pool 1 and Sub-Pool 2 until the Class A Certificates are
retired.

Class A Certificates:
Prior to the availability of the 5% clean-up call (as defined below):
On each Remittance Date, interest will accrue at the Class A Pass-Through Rate
from the preceding Remittance Date (or from the Closing Date in the case of the
first Remittance Date) to and including the day prior to the current Remittance
Date on the outstanding principal balance of the Class A Certificates. All
calculations of interest on the Class A Certificates will be computed on the
basis of the actual number of days elapsed in the related interest period and in
a year of 360 days. The Class A Pass-Through Rate will be equal to the lesser of
(1) One-Month LIBOR plus [ ]% per annum and (2) the weighted average of the
Mortgage Rates minus the sum of (a) the Servicing Fee Rate, (b) the rate at
which the Annual Trustee Expense Amount is calculated, (c) the rate at which
monthly premiums are payable to the Certificate Insurer and (d) 0.75% per annum
(such difference equaling the "Available Funds Cap Rate").

After the availability of the 5% cleanup call the Class A Pass-Through Rate will
increase on and after the date on which the 5% clean-up call becomes available
but is not exercised, subject to the Available Funds Cap Rate.

OPTIONAL TERMINATION/5% CLEANUP CALL:

On any Remittance Date on which the outstanding aggregate principal balance of
the Mortgage Loans is less than 5% of the sum of each Original Sub-Pool
Principal Balance and each Original Pre-Funded Amount relating to each Sub-Pool
as of the Cut-off Date.


                                       5


- --------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement. Do not
use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Merrill Lynch
account executive for another copy.
<PAGE>

MORTGAGE POOL CHARACTERISTICS:

As of March 1, 1997 (the "Cut-off Date") the Depositor will deliver
approximately $[38,192,000] of Sub-Pool 1 Loans.

Sub-Pool 1 (Fixed Rate as of February 22, 1997):
Initial Home Equity Loan Principal Balance:              $32,905,961
Properties secured by 1st/2nd Liens:                     46.22%/53.78%
Weighted Average Coupon:                                 11.695%
Weighted Average CLTV:                                   78.0%
Weighted Average Rem. Term:                              213.7 mos.
Weighted Average Original Term:                          214.2 mos.
Geographic Distribution:                                 28 States and D.C.
States w/ >5% Concentrations:                            CO-9.01%, NY-22.11%,
                                                         FL- 9.76%, PA-9.80%,
                                                         IL 7.82%, UT-7.80%,
Balloons (30's due in 15):                               41.13%
Occupancy-
          Owner Occupied:                                93.69%
          Investor Owned:                                6.31%
Property Type-
          Condominium:                                   0.70%
          Multifamily:                                   12.90%
          Single Family:                                 86.40%
Loan Purpose-
          Purchase:                                      11.99%
          Refinance:                                     10.29%
          Cashout:                                       77.72%


                                       6


- --------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement. Do not
use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Merrill Lynch
account executive for another copy.
<PAGE>

MORTGAGE POOL CHARACTERISTICS: (continued)

As of March 1, 1997 (the "Cut-off Date") the Depositor will deliver
approximately $[98,208,000] of Sub-Pool 2 Loans.

Sub-Pool 2 (Adjustable Rate as of February 22, 1997):
Initial Home Equity Loan Principal Balance:              $83,864,764
Weighted Average Coupon:                                 10.297%
Weighted Average Lifetime Cap:                           16.295%
Weighted Average Lifetime Floor:                         9.557%
Weighted Average Gross Margin:                           6.128%
Negative Amortization:                                   None
Weighted Average Rem. Term:                              359.8 mos.
Weighted Average Original Term:                          360.0 mos.
Properties secured by 1st Liens:                         100.00%
Weighted Average CLTV:                                   79.2%
Geographic Distribution:                                 27 States and D.C.
States w/ >5% Concentrations:                            NY-14.34%, IL-
                                                         12.23%, NJ-9.77%,
                                                         CO-9.59%, PA-8.06%,
                                                         MI-7.33%, UT-6.50%

Balloons:                                                0%
Occupancy-
          Owner Occupied:                                96.11%
          Investor:                                      3.89%
Property Type-
          Condominium:                                   0.27%
          Single Family:                                 90.45%
          2-4 Family:                                    9.27%
Loan Purpose-
          Purchase:                                      34.20%
          Refinance:                                     11.59%
          Cashout:                                       54.22%


                                       7


- --------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement. Do not
use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Merrill Lynch
account executive for another copy.
<PAGE>

FIXED RATE COLLATERAL PREPAYMENT ASSUMPTION:

With respect to the Fixed Rate Collateral, a 100% Prepayment Assumption assumes
constant prepayment rates (CPR) of 2% per annum of the then outstanding
principal balance of the Mortgage Loans in Sub-Pool 1 in the first month of the
life of the Mortgage Loans and an additional 1.2% per annum each month
thereafter until the twenty-first month. Beginning in the twenty-first month and
in each month thereafter during the life of the Mortgage Loans 100% Prepayment
Assumption assumes a constant prepayment rate of 26% per annum each month.

ADJUSTABLE RATE MORTGAGE LOAN PREPAYMENT ASSUMPTION:

With respect to the Adjustable Rate Mortgage Loans, a 26% constant prepayment
rate (CPR) will be used to price the Mortgage Loans.

PREPAYMENT SCENARIOS:

<TABLE>
<CAPTION>
                      Scenario 1     Scenario 2     Scenario 3     Scenario 4     Scenario 5
                      ----------     ----------     ----------     ----------     ----------
<S>                       <C>            <C>           <C>           <C>             <C> 
Sub-Pool 1 (1)            0%             50%           100%          150%            200%

Sub-Pool 2 (2)            0%             20%            26%           32%             38%
</TABLE>

- -------------------------------------------------
(1) As a percentage of the Prepayment Assumption.
(2) As a conditional prepayment rate (CPR).

CLASS A CERTIFICATE PREPAYMENT SENSITIVITY ANALYSIS:
(assuming 50 bps losses):

(NO CLEAN-UP CALL)
SCENARIO                          1         2         3         4         5
                                  -         -         -         -         -
Class A WAL (yrs.)            18.74      4.77      3.32      2.53      2.04
Class A Exp. Beg. Am.             1        1          1        1          1
Class A Exp. End. Am.           360       263       202       161       129

CLASS A CERTIFICATE PREPAYMENT SENSITIVITY ANALYSIS:
(assuming 50 bps losses):

(5% CLEAN-UP CALL)
SCENARIO                          1         2         3         4         5
                                  -         -         -         -         -
Class A WAL (yrs.)            18.72      4.69      3.21      2.45      1.97
Class A Exp. Beg. Am.             1         1         1         1         1
Class A Exp. End. Am.           353       178       119        89        70


                                       8


- --------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement. Do not
use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Merrill Lynch
account executive for another copy.

<PAGE>
Merrill Lynch Mortgage Capital, Inc.         *** Transactions Finance Group ***
Portfolio: S:\DATA\DEALS\ALLIANCE\AFC97-1\AFC97-1.DBF    03/06/1997 10:10 Page 1

              |--------------------------------------------------|
              |       FIXED RATE LOAN (INCLUDING BALLOONS)       |
              |--------------------------------------------------|

Report Profile: AFC971F    SuperCrack Portfolio Summary       Code File: AFC97-1

<TABLE>
<CAPTION>
=============================================================================================|
<- P O O L  T O T A L S -> | AVERAGE|< - -  GROSS COUPON  - - >|<- WTD AVG RMNG TERM ->|WTDAV|
# LOANS    CURRENT BALANCE | CURRBAL|WTDAVG      MIN       MAX |STATD    CALCD     ORIG|L T V|
- ---------------------------------------------------------------------------------------------|
<S>        <C>              <C>      <C>        <C>      <C>    <C>               <C>    <C>  
    645    $    32,905,961 |$ 51,017|11.695     8.500    15.600|213.7             214.2| 78.0|
=============================================================================================|
</TABLE>

=====================================================     
STATE REPORT             LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
AZ                          18         540,571   1.64     
CA                          20       1,380,176   4.19     
CO                          56       2,963,621   9.01     
CT                          28       1,570,719   4.77     
DC                           1          32,989   0.10     
DE                           4         153,822   0.47     
FL                          76       3,211,963   9.76     
GA                           9         434,531   1.32     
ID                           3          75,700   0.23     
IL                          45       2,573,404   7.82     
IN                          12         523,960   1.59     
MA                           8         355,631   1.08     
MD                          18         989,040   3.01     
MI                           4         158,266   0.48     
MN                           7         211,354   0.64     
NC                          12         390,134   1.19     
NJ                          16       1,053,170   3.20     
NM                           2         144,230   0.44     
NV                           7         287,053   0.87     
NY                         104       7,274,742  22.11     
OH                          11         734,580   2.23     
OR                          13         529,803   1.61     
PA                          62       3,224,064   9.80     
RI                           1          17,969   0.05     
SC                           6         242,714   0.74     
UT                          77       2,566,128   7.80     
VA                           6         539,650   1.64     
WA                          15         491,514   1.49     
WI                           4         234,460   0.71     
                                                          
=====================================================     
ORIGINAL TERM            LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
        120                 17         451,828   1.37     
        180                447      22,203,695  67.48     
        240                123       5,779,153  17.56     
        360                 58       4,471,284  13.59     
                                                          
=====================================================     
PROPERTY TYPE            LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
CONDO                        7         229,933   0.70   
MULTI-FAMILY                51       4,245,861  12.90
SINGLE FAMILY              587      28,430,167  86.40   

=====================================================      
CURRENT BALANCE REPORT   LOANS     CURRENT BAL  %POOL      
- -----------------------------------------------------      
       0.01-   10000.00      5          49,935   0.15      
   10000.01-   20000.00     86       1,360,925   4.14      
   20000.01-   30000.00    147       3,731,186  11.34      
   30000.01-   40000.00    112       3,944,714  11.99      
   40000.01-   50000.00     76       3,459,859  10.51      
   50000.01-   60000.00     51       2,816,930   8.56      
   60000.01-   70000.00     39       2,565,386   7.80      
   70000.01-   80000.00     24       1,815,238   5.52      
   80000.01-   90000.00     15       1,288,120   3.91      
   90000.01-  100000.00     20       1,940,202   5.90      
  100000.01-  110000.00     16       1,687,834   5.13      
  110000.01-  120000.00     17       1,961,517   5.96      
  120000.01-  130000.00      7         878,984   2.67      
  130000.01-  140000.00      2         275,250   0.84      
  140000.01-  150000.00      8       1,175,200   3.57      
  150000.01-  160000.00      5         768,000   2.33      
  160000.01-  170000.00      2         331,457   1.01      
  170000.01-  180000.00      2         348,000   1.06      
  180000.01-  190000.00      2         369,166   1.12      
  190000.01-  200000.00      1         190,800   0.58      
  200000.01-  250000.00      6       1,369,657   4.16      
  250000.01-  300000.00      1         276,000   0.84      
  300000.01-  350000.00      1         301,600   0.92      
                                                           
=====================================================      
REMAINING TERM           LOANS     CURRENT BAL  %POOL      
- -----------------------------------------------------      
     108.01-     120.00     15         400,628   1.22      
     120.01-     132.00      2          51,200   0.16      
     168.01-     180.00    272      13,369,968  40.63      
     180.01-     192.00    175       8,833,727  26.85      
     228.01-     240.00     71       3,221,562   9.79      
     240.01-     252.00     52       2,557,591   7.77      
     348.01-     360.00     34       2,446,890   7.44      
     360.01+                24       2,024,395   6.15      
WTD AVERAGE:     213.69                                    
                                                           
=====================================================      
OCCUPANCY STATUS         LOANS     CURRENT BAL  %POOL      
- -----------------------------------------------------      
OWNER OCCUPIED               615      30,828,629  93.69
NON-OWNER OCCUPIED            30       2,077,332   6.31
                                                       
=====================================================  
LIEN POSITION            LOANS     CURRENT BAL  %POOL  
- -----------------------------------------------------  
1                          195      15,208,628  46.22  
2                          450      17,697,333  53.78  


=====================================================    
MORTGAGE RATES           LOANS     CURRENT BAL  %POOL    
- -----------------------------------------------------    
      8.500-      8.749      1          58,561   0.18    
      8.750-      8.999      1          74,383   0.23    
      9.000-      9.249      1          41,986   0.13    
      9.250-      9.499      6         491,361   1.49    
      9.500-      9.749      9         422,236   1.28    
      9.750-      9.999     25       1,883,369   5.72    
     10.000-     10.249     20       1,179,664   3.58    
     10.250-     10.499     11         547,265   1.66    
     10.500-     10.749     37       2,303,883   7.00    
     10.750-     10.999     32       2,020,105   6.14    
     11.000-     11.249     38       2,560,366   7.78    
     11.250-     11.499     63       3,493,519  10.62    
     11.500-     11.749     40       2,137,269   6.50    
     11.750-     11.999     75       3,166,788   9.62    
     12.000-     12.249     23       1,097,571   3.34    
     12.250-     12.499     39       1,711,707   5.20    
     12.500-     12.749     30       1,621,146   4.93    
     12.750-     12.999     85       3,696,921  11.23    
     13.000-     13.249     20         956,880   2.91    
     13.250-     13.499     14         547,456   1.66    
     13.500-     13.749     27       1,018,018   3.09    
     13.750-     13.999     19         704,392   2.14    
     14.000-     14.249     11         522,164   1.59    
     14.250-     14.499      3          79,747   0.24    
     14.500-     14.749      2          80,378   0.24    
     14.750-     14.999      6         209,811   0.64    
     15.000-     15.249      1         122,720   0.37    
     15.250-     15.499      4          83,387   0.25    
     15.500-     15.749      2          72,908   0.22    
WTD AVERAGE:     11.695                                  
                                                         
=====================================================    
LOAN PURPOSE             LOANS     CURRENT BAL  %POOL    
- -----------------------------------------------------    
PURCHACE                      44       3,945,693  11.99  
REFINANCE                     63       3,386,020  10.29  
CASHOUT                      538      25,574,248  77.72  
                                                         
- --------------------------------------------------------------------------------
Active Filter: RFREQ=0                                       Requested by: V0.32


                                       9
<PAGE>

Merrill Lynch Mortgage Capital, Inc.          *** Transactions Finance Group ***
Portfolio:  S:\DATA\DEALS\ALLIANCE\AFC97-1\AFC97-1.DBF   03/06/1997 10:10 Page 2

              |--------------------------------------------------|
              |           RATE LOAN (INCLUDING BALLOONS)         |
              |--------------------------------------------------|

Report Profile: AFC971F     SuperCrack Portfolio Summary      Code File: AFC97-1

<TABLE>
<CAPTION>
=============================================================================================|
<- P O O L  T O T A L S ->| AVERAGE |< - -  GROSS COUPON  - - >|<- WTD AVG RMNG TERM ->|WTDAV|
# LOANS    CURRENT BALANCE| CURRBAL |WTDAVG      MIN       MAX |STATD    CALCD     ORIG|L T V|
- ---------------------------------------------------------------------------------------------|
<S>        <C>             <C>       <C>        <C>      <C>    <C>               <C>    <C>  
    645    $    32,905,961|$ 51,017 |11.695     8.500    15.600|213.7             214.2| 78.0|
=============================================================================================|
</TABLE>

=====================================================
UNDERWRITING CLASS       LOANS     CURRENT BAL  %POOL
- -----------------------------------------------------
AA                          85       4,340,259  13.19
ANIV                        61       3,170,889   9.64
FD                          73       4,278,238  13.00
I                          206      10,664,416  32.41
II                          67       3,133,342   9.52
III                         44       2,404,528   7.31
IIISE                       30       1,661,918   5.05
IV                          61       2,363,167   7.18
IVPI                        10         457,022   1.39
V                            8         432,183   1.31

=====================================================
COMBINED LOAN-TO-VALUE   LOANS     CURRENT BAL  %POOL
- -----------------------------------------------------
      20.01-      25.00      1          12,500   0.04
      25.01-      30.00      6         292,592   0.89
      30.01-      35.00      7         266,703   0.81
      35.01-      40.00      6         357,790   1.09
      40.01-      45.00      7         406,938   1.24
      45.01-      50.00      8         335,334   1.02
      50.01-      55.00     13         626,672   1.90
      55.01-      60.00     16         905,970   2.75
      60.01-      65.00     18       1,258,446   3.82
      65.01-      70.00     45       2,414,822   7.34
      70.01-      75.00     44       2,292,789   6.97
      75.01-      80.00    130       7,415,315  22.53
      80.01-      85.00    154       7,601,768  23.10
      85.01-      90.00    190       8,718,322  26.49
WTD AVERAGE:      78.04


- --------------------------------------------------------------------------------
Active Filter: RFREQ=0                                       Requested by: V0.32


                                       10
<PAGE>

Merrill Lynch Mortgage Capital, Inc.          *** Transactions Finance Group ***
Portfolio: S:\DATA\DEALS\ALLIANCE\AFC97-1\AFC97-1.DBF    03/06/1997 10:12 Page 1

              |--------------------------------------------------|
              |                 ADJUSTABLE LOANS                 |
              |--------------------------------------------------|

Report Profile: AFC971A     SuperCrack Portfolio Summary      Code File: AFC97-1
================================================================================
<-P O O L  T O T A L S-> | AVERAGE| <- - GROSS COUPON - -> | <-RMNG TRM-> |WTDAV
# LOANS  CURRENT BALANCE | CURRBAL| WTDAVG    MIN     MAX  | STATD   ORIG |L T V
- --------------------------------------------------------------------------------
    697  $    83,864,764 |$120,322| 10.297   7.875  13.250 | 359.8  360.0 | 79.2
================================================================================

================================================================================
|<- - M A R G I N - ->|< - - L I F E   C A P - - > | < - L I F E   F L O O R - >
| WTDAV   MIN     MAX |WTDAVG    MIN     MAX   %>0 | WTDAVG    MIN     MAX   %>0
- --------------------------------------------------------------------------------
| 6.128  3.250   9.250|16.295  13.875  19.250  100 |  9.557   6.875  12.625  100
================================================================================

=====================================================     
STATE REPORT             LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
NY                          79      12,022,473  14.34     
IL                          85      10,256,229  12.23     
NJ                          52       8,195,480   9.77     
CO                          53       8,040,144   9.59     
PA                          81       6,761,069   8.06     
MI                          73       6,145,652   7.33     
UT                          40       5,449,468   6.50     
AZ                          32       4,136,320   4.93     
CT                          27       3,395,144   4.05     
WA                          17       3,215,994   3.83     
FL                          30       2,569,919   3.06     
MN                          16       2,031,821   2.42     
CA                           7       1,712,950   2.04     
OH                          24       1,548,143   1.85     
OR                          13       1,450,111   1.73     
WI                          18       1,330,922   1.59     
GA                           5         826,795   0.99     
MD                           6         639,600   0.76     
SC                           8         636,789   0.76     
NV                           4         606,700   0.72     
NC                           5         586,800   0.70     
KY                           7         575,600   0.69     
IN                           7         493,773   0.59     
DC                           1         437,750   0.52     
VA                           2         312,125   0.37     
NM                           2         245,825   0.29     
DE                           2         196,350   0.23     
ID                           1          44,820   0.05     
                                                          
=====================================================     
ORIGINAL TERM            LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
        360                697      83,864,764 100.00     
                                                          
=====================================================     
REMAINING TERM           LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
     348.01-     360.00    139      16,464,345  19.63     
     360.01+               558      67,400,419  80.37
WTD AVERAGE:     359.81                                   
                                                          
=====================================================     
PROPERTY TYPE            LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------
CONDO                          3         229,800   0.27
MULTI-FAMILY                  63       7,777,701   9.27
SINGLE FAMILY                631      75,857,263  90.45

=====================================================     
CURRENT BALANCE REPORT   LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
   10000.01-   20000.00      2          30,489   0.04     
   20000.01-   30000.00     19         498,718   0.59     
   30000.01-   40000.00     24         859,645   1.03     
   40000.01-   50000.00     42       1,889,909   2.25     
   50000.01-   60000.00     54       2,985,305   3.56     
   60000.01-   70000.00     48       3,103,080   3.70     
   70000.01-   80000.00     51       3,824,397   4.56     
   80000.01-   90000.00     60       5,095,230   6.08     
   90000.01-  100000.00     44       4,203,860   5.01     
  100000.01-  110000.00     39       4,113,144   4.90     
  110000.01-  120000.00     42       4,866,557   5.80     
  120000.01-  130000.00     39       4,883,820   5.82     
  130000.01-  140000.00     33       4,460,249   5.32     
  140000.01-  150000.00     20       2,877,279   3.43     
  150000.01-  160000.00     34       5,314,997   6.34     
  160000.01-  170000.00     16       2,625,939   3.13     
  170000.01-  180000.00     24       4,216,800   5.03     
  180000.01-  190000.00     12       2,234,030   2.66     
  190000.01-  200000.00     19       3,735,003   4.45     
  200000.01-  250000.00     30       6,632,139   7.91     
  250000.01-  300000.00     19       5,210,176   6.21     
  300000.01-  350000.00      9       3,024,507   3.61     
  350000.01-  400000.00      9       3,359,952   4.01     
  400000.01-  450000.00      1         437,750   0.52     
  450000.01-  500000.00      7       3,381,790   4.03     
                                                          
=====================================================     
OCCUPANCY STATUS         LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
OWNER OCCUPIED               663      80,600,452  96.11   
NON-OWNER OCCUPIED            34       3,264,312   3.89   
                                                          
=====================================================     
LOAN PURPOSE             LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
REFINANCE                     84       9,716,142  11.59   
CASHOUT                      384      45,468,926  54.22   
PURCHACE                     229      28,679,696  34.20   
                                                          
=====================================================     
LIEN POSITION            LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
1                          697      83,864,764 100.00     


=====================================================      
MORTGAGE RATES           LOANS     CURRENT BAL  %POOL      
- -----------------------------------------------------      
      7.750-      7.999      2         131,466   0.16      
      8.000-      8.249      3         503,100   0.60      
      8.250-      8.499      9         875,050   1.04      
      8.500-      8.749     38       3,740,994   4.46      
      8.750-      8.999     22       3,219,258   3.84      
      9.000-      9.249     44       4,218,723   5.03      
      9.250-      9.499     35       3,938,971   4.70      
      9.500-      9.749     65       9,762,763  11.64      
      9.750-      9.999     59       7,320,598   8.73      
     10.000-     10.249     46       5,993,971   7.15      
     10.250-     10.499     56       6,341,059   7.56      
     10.500-     10.749     52       7,073,189   8.43      
     10.750-     10.999     73       9,530,317  11.36      
     11.000-     11.249     41       4,352,341   5.19      
     11.250-     11.499     34       4,595,587   5.48      
     11.500-     11.749     24       2,266,163   2.70      
     11.750-     11.999     28       4,183,251   4.99      
     12.000-     12.249     26       2,524,648   3.01      
     12.250-     12.499     14       1,227,750   1.46      
     12.500-     12.749     21       1,696,167   2.02      
     12.750-     12.999      3         185,400   0.22      
     13.000-     13.249      1          68,000   0.08      
     13.250-     13.499      1         116,000   0.14      
WTD AVERAGE:     10.297                                    
                                                           
=====================================================      
UNDERWRITING CLASS       LOANS     CURRENT BAL  %POOL      
- -----------------------------------------------------      
AA                          71       8,334,835   9.94      
ANIV                        92      14,504,351  17.29      
FD                          51       8,151,785   9.72      
I                          159      17,777,362  21.20      
II                          81       9,182,664  10.95      
III                         64       7,571,449   9.03      
IV                         117      11,092,828  13.23      
SE                          38       5,028,021   6.00      
V                           24       2,221,469   2.65      

- --------------------------------------------------------------------------------
Active Filter: RFREQ<>0                                      Requested by: V0.32


                                       11
<PAGE>

Merrill Lynch Mortgage Capital, Inc.          *** Transactions Finance Group ***
Portfolio:  S:\DATA\DEALS\ALLIANCE\AFC97-1\AFC97-1.DBF   03/06/1997 10:12 Page 2

              |--------------------------------------------------|
              |                 ADJUSTABLE LOANS                 |
              |--------------------------------------------------|

Report Profile: AFC971A     SuperCrack Portfolio Summary      Code File: AFC97-1
================================================================================
<-P O O L  T O T A L S->| AVERAGE| <- - GROSS COUPON - -> | <-RMNG TRM-> |WTDAV|
# LOANS  CURRENT BALANCE| CURRBAL| WTDAVG    MIN     MAX  | STATD   ORIG |L T V|
- --------------------------------------------------------------------------------
    697  $    83,864,764|$120,322| 10.297   7.875  13.250 | 359.8  360.0 | 79.2|
================================================================================


================================================================================
<- - M A R G I N - -> | < - - L I F E  C A P - - > | < - L I F E   F L O O R - >
 WTDAV   MIN     MAX  | WTDAVG    MIN    MAX   %>0 | WTDAVG    MIN     MAX   %>0
- --------------------------------------------------------------------------------
 6.128  3.250   9.250 | 16.295  13.875 19.250  100 |  9.557   6.875  12.625  100
================================================================================

=====================================================
COMBINED LOAN-TO-VALUE   LOANS     CURRENT BAL  %POOL
- -----------------------------------------------------
      20.01-      25.00      2         134,942   0.16
      25.01-      30.00      5         208,475   0.25
      30.01-      35.00      5         419,985   0.50
      35.01-      40.00      3         204,952   0.24
      40.01-      45.00      7         593,705   0.71
      45.01-      50.00      9       1,004,424   1.20
      50.01-      55.00      9         623,571   0.74
      55.01-      60.00     14       1,486,266   1.77
      60.01-      65.00     31       3,097,114   3.69
      65.01-      70.00     54       6,095,655   7.27
      70.01-      75.00     72       7,917,824   9.44
      75.01-      80.00    195      23,635,914  28.18
      80.01-      85.00    160      22,237,666  26.52
      85.01-      90.00    131      16,204,271  19.32
WTD AVERAGE:      79.16

- --------------------------------------------------------------------------------
Active Filter: RFREQ<>0                                      Requested by: V0.32


                                       12
<PAGE>

Merrill Lynch Mortgage Capital, Inc.          *** Transactions Finance Group ***
Portfolio: S:\DATA\DEALS\ALLIANCE\AFC97-1\AFC97-1.DBF  03/06/1997  10:13  Page 1

              |--------------------------------------------------|
              |             ADJUSTABLE LOANS 1YR CMT             |
              |--------------------------------------------------|

Report Profile: CMT        SuperCrack Portfolio Summary       Code File: AFC97-1
================================================================================
<-P O O L  T O T A L S-> | AVERAGE |<- - GROSS COUPON - -> |<-RMNG TRM-> |WTDAV|
# LOANS  CURRENT BALANCE | CURRBAL |WTDAVG    MIN     MAX  |STATD   ORIG |L T V|
- --------------------------------------------------------------------------------
     29  $     3,568,271 |$123,044 | 9.585   7.875  11.500 |359.2  360.0 | 77.9|
================================================================================

================================================================================
<- - M A R G I N - -> |< - - L I F E   C A P - - > | < - L I F E   F L O O R - >
 WTDAV   MIN     MAX  |WTDAVG    MIN     MAX   %>0 | WTDAVG    MIN     MAX   %>0
- --------------------------------------------------------------------------------
 6.128  4.500   8.250 |15.585  13.875  17.500  100 |  9.585   7.875  11.500  100
================================================================================

=====================================================     
PERIODIC CAP (CMT)       LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
Subfilter:  RFREQ=12                                      
    * * * all loans meet subfilter criteria * * *         
      2.000                 29       3,568,271 100.00     
                                                          
=====================================================     
LIFECAP (CMT)            LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
Subfilter:  RFREQ=12                                      
    * * * all loans meet subfilter criteria * * *         
     13.750-     13.999      1          49,966   1.40
     14.000-     14.249      1          93,500   2.62
     14.500-     14.749      4         818,136  22.93
     14.750-     14.999      3         377,228  10.57
     15.250-     15.499      3         490,553  13.75
     15.500-     15.749      2         352,400   9.88
     15.750-     15.999      4         281,276   7.88
     16.000-     16.249      1         155,800   4.37
     16.250-     16.499      2         188,000   5.27
     16.500-     16.749      2         129,175   3.62
     16.750-     16.999      2         247,192   6.93
     17.000-     17.249      1          95,500   2.68
     17.250-     17.499      2         232,800   6.52
     17.500-     17.749      1          56,745   1.59
WTD AVERAGE:     15.585

=====================================================
MARGIN REPORT (CMT)      LOANS     CURRENT BAL  %POOL
- -----------------------------------------------------
Subfilter:  RFREQ=12
    * * * all loans meet subfilter criteria * * *    
      4.500-      4.749      2         143,466   4.02
      5.000-      5.249      3         431,964  12.11
      5.250-      5.499      1         386,172  10.82
      5.500-      5.749      2         419,099  11.75
      5.750-      5.999      1         134,182   3.76
      6.000-      6.249      5         291,276   8.16
      6.250-      6.499      2         352,400   9.88
      6.500-      6.749      2         293,800   8.23
      6.750-      6.999      3         354,000   9.92
      7.000-      7.249      2         159,675   4.47
      7.250-      7.499      2         176,692   4.95
      7.500-      7.749      3         267,145   7.49
      8.250-      8.499      1         158,400   4.44
WTD AVERAGE:      6.128

=====================================================  
NEXT RATE CHANGE (CMT)   LOANS     CURRENT BAL  %POOL  
- -----------------------------------------------------  
Subfilter:  RFREQ=12                                   
    * * * all loans meet subfilter criteria * * *      
9703                         1          91,000   2.55  
9704                         2         419,099  11.75  
9705                         1          56,745   1.59  
9706                         1          63,675   1.78  
9707                         6         838,318  23.49  
9708                        15       1,740,441  48.78  
9709                         3         358,992  10.06  
                                                       

- --------------------------------------------------------------------------------
Active Filter:  RFREQ=12                                     Requested by: V0.32


                                       13
<PAGE>

Merrill Lynch Mortgage Capital, Inc.          *** Transactions Finance Group ***
Portfolio: S:\DATA\DEALS\ALLIANCE\AFC97-1\AFC97-1.DBF    03/06/1997 10:14 Page 1

              |--------------------------------------------------|
              |        ADJUSTABLE LOANS 6 MONTH LIBOR 2/28       |
              |--------------------------------------------------|

Report Profile: LIBOR      SuperCrack Portfolio Summary       Code File: AFC97-1
================================================================================
<-P O O L  T O T A L S-> | AVERAGE | <- - GROSS COUPON - -> |<-RMNG TRM->|WTDAV|
# LOANS  CURRENT BALANCE | CURRBAL | WTDAVG    MIN     MAX  |STATD   ORIG|L T V|
- --------------------------------------------------------------------------------
    529  $    61,886,528 |$116,988 | 10.360   7.875  13.250 |359.9  360.0| 79.6|
================================================================================

================================================================================
<- - M A R G I N - -> | < - - L I F E   C A P - - > |< - L I F E   F L O O R - >
 WTDAV   MIN     MAX  | WTDAVG    MIN     MAX   %>0 |WTDAVG    MIN     MAX   %>0
- --------------------------------------------------------------------------------
 5.944  3.250   8.500 | 16.360  13.875  19.250  100 | 9.360   6.875  12.250  100
================================================================================

=====================================================     
PERIODIC CAP (LIBOR)     LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
Subfilter:  RFREQ=6                                       
    * * * all loans meet subfilter criteria * * *         
      1.000                529      61,886,528 100.00     
                                                          
=====================================================     
MARGIN REPORT (LIBOR)    LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
Subfilter:  RFREQ= 6                                      
    * * * all loans meet subfilter criteria * * *         
      3.250-      3.499      1          81,500   0.13     
      3.500-      3.749      1         294,000   0.48     
      3.750-      3.999     35       2,972,276   4.80     
      4.500-      4.749     52       5,013,518   8.10     
      4.750-      4.999      6         988,447   1.60     
      5.000-      5.249     40       4,588,916   7.42     
      5.250-      5.499     33       5,226,674   8.45     
      5.500-      5.749     24       2,978,963   4.81     
      5.750-      5.999     46       4,906,678   7.93     
      6.000-      6.249     54       5,848,397   9.45     
      6.250-      6.499     48       7,799,702  12.60     
      6.500-      6.749     36       4,908,652   7.93     
      6.750-      6.999     48       5,527,212   8.93     
      7.000-      7.249     28       2,722,496   4.40     
      7.250-      7.499     23       1,849,668   2.99     
      7.500-      7.749     38       4,105,729   6.63     
      7.750-      7.999      5         814,088   1.32     
      8.000-      8.249      4         507,950   0.82
      8.250-      8.499      5         564,100   0.91
      8.500-      8.749      2         187,563   0.30
WTD AVERAGE:      5.944

=====================================================
NEXT RATE CHANGE (LIBOR  LOANS     CURRENT BAL  %POOL
- -----------------------------------------------------
Subfilter:  RFREQ= 6
    * * * all loans meet subfilter criteria * * *    
9811                         1         125,754   0.20
9812                         7         838,755   1.36
9901                        62       7,700,705  12.44
9902                       421      48,062,889  77.66
9903                        38       5,158,425   8.34

=====================================================   
LIFECAP REPORT           LOANS     CURRENT BAL  %POOL   
- -----------------------------------------------------   
Subfilter:  RFREQ= 6                                    
    * * * all loans meet subfilter criteria * * *       
     13.750-     13.999      1          81,500   0.13   
     14.000-     14.249      1         294,000   0.48   
     14.250-     14.499      8         758,950   1.23   
     14.500-     14.749     29       2,474,049   4.00   
     14.750-     14.999     12       1,716,680   2.77   
     15.000-     15.249     40       3,589,913   5.80   
     15.250-     15.499     15       2,091,475   3.38   
     15.500-     15.749     49       7,175,389  11.59   
     15.750-     15.999     41       4,945,468   7.99   
     16.000-     16.249     29       3,513,719   5.68   
     16.250-     16.499     42       4,552,351   7.36   
     16.500-     16.749     39       5,515,873   8.91   
     16.750-     16.999     64       8,234,883  13.31   
     17.000-     17.249     37       3,822,472   6.18   
     17.250-     17.499     22       3,199,464   5.17   
     17.500-     17.749     18       1,544,618   2.50   
     17.750-     17.999     21       2,912,106   4.71   
     18.000-     18.249     24       2,395,459   3.87   
     18.250-     18.499     14       1,227,750   1.98   
     18.500-     18.749     18       1,471,009   2.38   
     18.750-     18.999      3         185,400   0.30   
     19.000-     19.249      1          68,000   0.11   
     19.250-     19.499      1         116,000   0.19   
WTD AVERAGE:     16.360                                 
                                                        

- --------------------------------------------------------------------------------
Active Filter: RFREQ=6 AND (PROGRAMTYP=026 OR PROGRAMTYP=626)   
                                                             Requested by: V0.32


                                       14
<PAGE>

Merrill Lynch Mortgage Capital, Inc.          *** Transactions Finance Group ***
Portfolio: S:\DATA\DEALS\ALLIANCE\AFC97-1\AFC97-1.DBF    03/06/1997 10:15 Page 1

              |--------------------------------------------------|
              |         ADJUSTABLE LOANS 6 MONTH NO 2/28         |
              |--------------------------------------------------|

Report Profile: LIBOR      SuperCrack Portfolio Summary       Code File: AFC97-1
================================================================================
<-P O O L  T O T A L S-> | AVERAGE | <- - GROSS COUPON - -> |<-RMNG TRM->|WTDAV|
# LOANS  CURRENT BALANCE | CURRBAL | WTDAVG    MIN     MAX  |STATD   ORIG|L T V|
- --------------------------------------------------------------------------------
    139  $    18,409,965 |$132,446 | 10.220   8.125  12.625 |359.5  360.0| 78.1|
================================================================================

================================================================================
<- - M A R G I N - -> | < - - L I F E   C A P - - > |< - L I F E   F L O O R - >
 WTDAV   MIN     MAX  | WTDAVG    MIN     MAX   %>0 |WTDAVG    MIN     MAX   %>0
- --------------------------------------------------------------------------------
 6.745  4.500   9.250 | 16.214  14.125  18.625  100 |10.214   8.125  12.625  100
================================================================================

=====================================================     
PERIODIC CAP (LIBOR)     LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
Subfilter:  RFREQ=6                                       
    * * * all loans meet subfilter criteria * * *         
      1.000                139      18,409,965 100.00     
                                                          
=====================================================     
MARGIN REPORT (LIBOR)    LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
Subfilter:  RFREQ= 6                                      
    * * * all loans meet subfilter criteria * * *         
      4.500-      4.749      1         115,600   0.63     
      5.000-      5.249      7         672,773   3.65     
      5.250-      5.499      9       1,141,886   6.20     
      5.500-      5.749      2         506,058   2.75     
      5.750-      5.999     17       1,388,785   7.54     
      6.000-      6.249     10         974,295   5.29     
      6.250-      6.499     10       2,049,395  11.13     
      6.500-      6.749      8       1,571,284   8.53     
      6.750-      6.999     18       2,650,137  14.40     
      7.000-      7.249      7         872,930   4.74     
      7.250-      7.499      9       1,138,948   6.19     
      7.500-      7.749     13       1,886,447  10.25     
      7.750-      7.999     11       1,104,121   6.00
      8.000-      8.249      4         564,377   3.07
      8.250-      8.499      4         627,260   3.41
      8.500-      8.749      7         965,330   5.24
      8.750-      8.999      1          84,912   0.46
      9.250-      9.499      1          95,426   0.52
WTD AVERAGE:      6.745

=====================================================
NEXT RATE CHANGE (LIBOR  LOANS     CURRENT BAL  %POOL
- -----------------------------------------------------
Subfilter:  RFREQ= 6
    * * * all loans meet subfilter criteria * * *    
9703                         2         236,626   1.29
9704                         4         638,573   3.47
9705                         4         312,710   1.70
9706                         9       1,042,065   5.66
9707                        39       4,100,320  22.27
9708                        73      10,776,921  58.54
9709                         8       1,302,750   7.08

=====================================================     
LIFECAP REPORT           LOANS     CURRENT BAL  %POOL     
- -----------------------------------------------------     
Subfilter:  RFREQ= 6                                      
    * * * all loans meet subfilter criteria * * *         
     14.000-     14.249      1         115,600   0.63     
     14.250-     14.499      1         116,100   0.63     
     14.500-     14.749      5         448,808   2.44     
     14.750-     14.999      7       1,125,350   6.11     
     15.000-     15.249      4         628,810   3.42     
     15.250-     15.499     17       1,356,943   7.37     
     15.500-     15.749     15       2,347,098  12.75     
     15.750-     15.999     14       2,093,854  11.37     
     16.000-     16.249     16       2,324,452  12.63     
     16.250-     16.499     12       1,600,708   8.69     
     16.500-     16.749     10       1,316,017   7.15     
     16.750-     16.999      7       1,048,242   5.69     
     17.000-     17.249      3         434,369   2.36     
     17.250-     17.499     10       1,163,322   6.32     
     17.500-     17.749      5         664,800   3.61     
     17.750-     17.999      7       1,271,145   6.90     
     18.000-     18.249      2         129,189   0.70     
     18.500-     18.749      3         225,158   1.22     
WTD AVERAGE:     16.214                                   

- --------------------------------------------------------------------------------
Active Filter: (RFREQ=6 AND PROGRAMTYP<>026) AND (PROGRAMTYP<>626)    
                                                             Requested by: V0.32


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