COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
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ABS NEW TRANSACTION
COMPUTATIONAL MATERIALS
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$546,000,000 (APPROXIMATE)
AFC MORTGAGE LOAN ASSET BACKED NOTES,
SERIES 2000-2
SUPERIOR BANK FSB
SELLER/SERVICER
AFC TRUST SERIES 2000-2
ISSUER
JUNE 21, 2000
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Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 1
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
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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.
None of Merrill Lynch, the issuer of the securities nor any of their 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 The information herein is preliminary, and will be superseded by the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 information 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.
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Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 2
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
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<TABLE>
<CAPTION>
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EXPECTED LEGAL EXPECTED
CLASS RATINGS AVG. FINAL PAYMENT
CLASS SIZE TRANCHE TYPE M/S&P/F LIFE PAYMENT WINDOW LIFE CAP
------------ ------------ ---------------- ----------- ---- ------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
To Call:
1A $266,000,000 LIBOR Floater (1) Aaa/AAA/AAA 3.87 6/30 1 - 130 11.10%
2A $280,000,000 LIBOR Floater (2) Aaa/AAA/AAA 2.90 6/30 1 - 130 15.50%
To Maturity:
1A $266,000,000 LIBOR Floater (1) Aaa/AAA/AAA 4.02 6/30 1 - 216 11.10%
2A $280,000,000 LIBOR Floater (2) Aaa/AAA/AAA 2.97 6/30 1 - 205 15.50%
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</TABLE>
(1) Subject to the Class 1A Cap Rate with a Class 1A Available Funds Cap Carry
Forward Amount.
(2) Subject to the Class 2A Cap Rate with a Class 2A Available Funds Cap Carry
Forward Amount.
SERIES: AFC Mortgage Loan Asset Backed Notes, Series
2000-2
SELLER AND SERVICER: Superior Bank FSB
INDENTURE TRUSTEE: LaSalle Bank National Association
OWNER TRUSTEE: Wilmington Trust Company
UNDERWRITERS: Merrill Lynch, Pierce, Fenner & Smith
Incorporated (Lead) & Prudential Securities Inc.
(Co-Manager)
NOTE INSURER: Municipal Bond Investors Assurance ("MBIA")
CUT-OFF DATE: June 1, 2000
EXP. PRICING: On or about June 22, 2000
EXP. SETTLEMENT: On or about June 28, 2000
PAYMENT DATE: The 25th day of each month (or if such 25th day
is not a business day, the next succeeding
business day), commencing on July 25, 2000.
DAY COUNT: Actual/360 for Class 1A and Class 2A.
CLASS 1A PREPAYMENT
ASSUMPTION: With respect to the Class 1A Notes, a 100%
Prepayment Assumption assumes a CPR of 2% per
annum in the first month of the life of the
Mortgage Loans and an additional 1% per annum
each month thereafter until the twenty-first
month and 22% CPR thereafter.
CLASS 2A PREPAYMENT
ASSUMPTION: 26% CPR
SMMEA: The Class 1A Notes will not be SMMEA eligible.
The Class 2A Notes will not be SMMEA eligible
until such time as the balance of the related
Pre-Funding Account is reduced to zero.
ERISA: Subject to the conditions and restrictions set
forth in the Prospectus Supplement, it is
expected that the Class 1A and 2A Notes will
generally be ERISA eligible. Prospective
purchasers should consult their counsel.
TAX STATUS: In the opinion of tax counsel to Superior
Bank FSB, the Notes will be treated as debt for
federal income tax purposes, the trust will not
be characterized as an association (or a publicly
traded partnership) taxable as a corporation and
neither the trust nor any portion of the trust
will constitute a taxable mortgage pool taxable
as a corporation.
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Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 3
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
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COLLATERAL:
GROUP 1 MORTGAGE LOANS: Conventional, fixed-rate mortgage loans secured
by first or second liens on one- to four-family
residential properties, units in planned unit
developments, condominiums and manufactured
homes ("Single Family Properties"), residential
properties consisting of five or more dwelling
units ("Multifamily Properties"), commercial
properties ("Commercial Properties") and mixed
residential and commercial structures ("Mixed
Use Properties") plus Group 1 Pre-Funding
Account. In addition, Group 1 will include
"Periodic Payment Loans" (12.05% of Group 1
before pre-funding), "Deferred Payment Loans"
(25.30% of Group 1 before pre-funding), "Voucher
Loans" (15.46% of Group 1 before pre-funding),
"Temporary Buydown Loans" (0.17% of Group 1
before pre-funding), "Permanent Buydown Loans"
(9.37% of Group 1 before pre-funding) and
"Permanent Buydown Companion Loans"
($1,181,592). See below for further description.
GROUP 2 MORTGAGE LOANS: Conventional, adjustable rate mortgage loans
secured by first liens on Single Family
Properties indexed to 6 Month LIBOR and
1-year CMT plus Group 2 Pre-Funding Account. In
addition, Group 2 will include "Deferred Payment
Loans" (5.39% of Group 2 before pre-funding) and
"Temporary Buydown Loans" (0.12% of Group 2
before pre-funding). See below for further
description.
CREDIT
ENHANCEMENT: Credit enhancement refers to features of the
notes that are intended to reduce the effect on
holders of such notes of losses on the mortgage
loans. The credit enhancement consists of excess
spread, cross-collateralization,
overcollateralization and the note insurance
policy issued by MBIA.
EXCESS SPREAD: On each payment date, the amount of interest due
on the mortgage loans of each group will
generally be greater than the amount needed to
make monthly interest payments on the related
notes and to pay certain fees for that month.
Excess spread collected from a group of mortgage
loans, and with respect to Group 1 only, the
amounts collected on the permanent buydown
companion loans, will be used first to cover any
shortfalls in the required payments of principal
on the offered notes related to such group, and
then for cross-collateralization and/or
overcollateralization.
OVERCOLLATERALIZATION: Overcollateralization refers to the actual
amount by which the aggregate principal balance
due on the mortgage loans in a group exceeds the
aggregate principal balance due on the related
notes. That excess is intended to protect
noteholders against shortfalls in required
payments on the related notes.
An initial amount of overcollateralization will
be required for each group. On the closing date,
the note insurer will also specify the required
overcollateralization for each group (which will
vary throughout the life of the notes). The
required overcollateralization amount for a
group is intended to be reached by an additional
payment of principal from amounts that are
available for such group after payments of
required principal and interest payments on all
notes and certain fees and expenses. That
amount, if any, will be used to pay principal on
the related notes on an accelerated basis in
relation to the related mortgage loans, thereby
increasing the amount of overcollateralization
for the related group.
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Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 4
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COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
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CROSS-
COLLATERALIZATION: Cross-collateralization generally refers to the
use of amounts received on one group of mortgage
loans, after payment of required interest and
principal on the related offered notes, to pay
shortfalls of required interest and principal on
the offered notes related to the other group as a
result of realized losses on the mortgage loans
related to that other group.
The excess funds for a group are from two
sources: (1) excess spread that is not needed to
pay shortfalls in principal for that group and
(2) excess principal that is not needed because
principal received for that group exceeds the
amount necessary to reach or maintain the
required overcollateralization amount.
INTEREST RATE CAPS: The trust will enter into an interest rate cap
on each note with a cap counterparty. The fees
for these caps will be paid at the closing date
from the proceeds of the transaction. If 1-month
LIBOR rises above specified levels for each cap,
the trust will receive a payment(s) from the
cap counterparty. This payment(s) will be
treated as an interest collection on the
related note.
PRE-FUNDING AMOUNTS:
Original Group 1 Pre-Funding Amount: $106,143,903.40
Original Group 2 Pre-Funding Amount: $111,788,097.49
The Original Group 1 Pre-Funding Amount and Original Group 2 Pre-Funding Amount
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 the Group 1 and Group 2
Pre-Funding Accounts will be used to prepay principal to the Class 1A and Class
2A Notes, respectively.
CLASS 1A NOTE INTEREST RATE:
PRIOR TO THE AVAILABILITY OF THE 5% CLEAN-UP CALL (AS DEFINED BELOW):
On each Payment Date, the Class 1A Note Interest Rate will be a rate equal to
the lesser of (1) the lesser of (a) One-Month LIBOR plus [ ]% per annum (the
"Class 1A LIBOR Rate"), and (b) 11.10% per annum (the "Class 1A Cap Rate") and
(2) the Available Funds Cap Rate for the Class 1A Notes.
CLASS 2A NOTE INTEREST RATE:
PRIOR TO THE AVAILABILITY OF THE 5% CLEAN-UP CALL (AS DEFINED BELOW):
On each Payment Date, the Class 2A Note Interest Rate will be a rate equal to
the lesser of (1) the lesser of (a) One-Month LIBOR plus [ ]% per annum (the
"Class 2A LIBOR Rate"), and (b) 15.50% per annum (the "Class 2A Cap Rate") and
(2) the Available Funds Cap Rate for the Class 2A Notes.
One-Month LIBOR will be determined on the second Business Day preceding the
beginning of each Accrual Period with respect to the Class 1A and Class 2A
Notes.
The Class 1A and 2A LIBOR Rates will increase approximately 40bps on and after
the date on which the 5% clean-up call becomes available but is not exercised.
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Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 5
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
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AVAILABLE FUNDS CAP RATE:
For each class of Notes and any Payment Date will be a percentage derived from
the fraction the numerator of which is the difference between (1) the sum of all
interest collected and advanced on the mortgage loans in the related group
during the related due period and (2) the sum of the servicing fee, MBIA fee and
trustees fees payable for the related Payment Date with respect to that group,
and the denominator of which is the Note Principal Balance of such class
immediately prior to that Payment Date.
CLASS 1A AVAILABLE FUNDS CAP CARRY FORWARD AMOUNT:
If on any Payment Date, the Class 1A Note Interest Rate is limited by the
Available Funds Cap Rate, you will be entitled to receive the excess of (i) the
interest distributable had the Class 1A Note Interest Rate been based on the
lesser of (a) the Class 1A LIBOR Rate and (b) the Class 1A Cap Rate, over (ii)
the interest actually distributed based on the Available Funds Cap Rate plus
(iii) interest thereon at the then current Class 1A Note Interest Rate. No Class
1A Available Funds Cap Carry Forward Amount will be paid to the Class 1A
Noteholder if the balance of such Class 1A Note is reduced to zero. The ratings
of the Class 1A Notes do not address the likelihood of the payment of any Class
1A Available Funds Cap Carry Forward Amounts and Class 1A Available Funds Cap
Carry Forward Amounts will not be covered by Insured Payments from MBIA.
CLASS 2A AVAILABLE FUNDS CAP CARRY FORWARD AMOUNT:
If on any Payment Date, the Class 2A Note Interest Rate is limited by the
Available Funds Cap Rate, you will be entitled to receive the excess of (i) the
interest distributable had the Class 2A Note Interest Rate been based on the
lesser of (a) the Class 2A LIBOR Rate and (b) the Class 2A Cap Rate, over (ii)
the interest actually distributed based on the Available Funds Cap Rate plus
(iii) interest thereon at the then current Class 2A Note Interest Rate. No Class
2A Available Funds Cap Carry Forward Amount will be paid to the Class 2 A
Noteholder if the balance of such Class 2A Note is reduced to zero. The ratings
of the Class 2A Notes do not address the likelihood of the payment of any Class
2A Available Funds Cap Carry Forward Amounts and Class 2A Available Funds Cap
Carry Forward Amounts will not be covered by Insured Payments from MBIA.
PRINCIPAL PAYMENTS:
The Class 1A Note will be backed primarily by cash flow from Group 1 assets.
The Class 2A Note will be backed primarily by cash flow from Group 2 assets.
Each Class 1A and 2A Note will generally receive all scheduled and unscheduled
principal payments from their respective groups until they are retired.
OPTIONAL TERMINATION/5% CLEANUP CALL:
When the aggregate principal balance of the mortgage loans (and properties
acquired in respect thereof) remaining in the trust has been reduced to less
than 5% of the sum of (1) the aggregate principal balance of the mortgage loans
as of June 1, 2000, and (2) the aggregate amounts on deposit in the pre-funding
accounts on the closing date, the servicer, at its option, may purchase all of
such mortgage loans and properties from the trust, and thereby cause an early
retirement of the notes.
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Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 6
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
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COLLATERAL OVERVIEW (INITIAL MORTGAGE LOANS):
MANUFACTURED HOME LOANS
Mortgage loans secured by manufactured homes that are deemed to be real property
in the jurisdiction in which the mortgaged property is located. These loans will
constitute 13.86% of Group 1 and 9.64% of Group 2, by Group Principal Balance,
before pre-funding.
PERIODIC PAYMENT LOANS
Mortgage loans which generally are the same as the other mortgage loans in the
transaction but which accrue interest on a 28/364 day basis. Periodic Payment
Loans will constitute 12.05% of Group 1, by Group Principal Balance, before
pre-funding. In addition, some of these loans will allow for the mortgagor to
use a limited number of payment vouchers to defer principal portions of the
corresponding Periodic Payment and pay only the interest portion due on such
payment dates. Any principal deferred in such a manner will be due in full on
the maturity date of the related Periodic Payment Loan.
DEFERRED PAYMENT LOANS
Mortgage loans which permit the mortgagor to defer the first two or three
payments due under the related mortgage note. Such election must be made at the
time of origination. Under certain limited circumstances, these deferred
payments may be forgiven by the Mortgagee on the maturity date of the loan.
These loans will constitute 25.30% of Group 1 and 5.39% of Group 2, by Group
Principal Balance, before pre-funding.
VOUCHER LOANS
Approximately 15.46% of the Group 1 initial mortgage loans, by original Group 1
principal balance, are mortgage loans the mortgage notes of which provide that
the mortgagors have the option at any time during the term of the related
mortgage loan, to use up to 65 payment vouchers, in the aggregate, provided to
them at origination in order to defer payment of the principal portion of the
corresponding payment and pay only the interest portion due on such payment
date. Any principal deferred in such a manner will be due in full on the
maturity date of the related mortgage loan.
TEMPORARY BUYDOWN LOANS
Approximately 0.17% of Group 1 and 0.12% of Group 2 before pre-funding, provide
that the Mortgage Rate stated therein be reduced by 2% during the first twelve
month period of the loans, and reduced by 1% during the second twelve month
period of the loan, after which such Mortgage Rate will apply. For example, a
loan with a stated Mortgage Rate of 10% will actually have a Mortgage Rate of 8%
during the first 12 month period, 9% during the second 12 month period and will
return to 10% for the remainder of the loan term. All modeling assumptions
herein use the actual reduced Mortgage Rates for the first 24 months, not the
stated Mortgage Rate, for all such Temporary Buydown Loans.
PERMANENT BUYDOWN LOANS
Approximately 9.37% of the Group 1 Initial Mortgage Loans, by Original Group 1
Principal Balance, are loans (each, a "Permanent Buydown Loan") made by the
Depositor to a borrower together with a "Permanent Buydown Companion Loan" for
the purpose of financing a Buydown of the interest rate on the Permanent Buydown
Loan. Each Permanent Buydown Companion Loan provides for equal payments of
principal only for a term not to exceed 5 years. Although the Permanent Buydown
Loan and the Permanent Buydown Companion Loan are evidenced by separate notes,
the Depositor treats, and the Servicer will treat, both loans as a single
obligation. The Permanent Buydown Loan and the Permanent Buydown Companion Loan
are given a single loan number and are billed on a single statement. Both notes
are secured by either a first or second lien on the same mortgaged property, and
a default under one note will trigger a default under the other. For each
Permanent Buydown Loan conveyed to the Trust, the corresponding Permanent
Buydown Companion Loan will also be conveyed to the Trust.
Approximately $1,181,592 of Permanent Buydown Companion Loans are associated
with the Group 1 Permanent Buydown Loans and will be included in the excess
spread for Group 1. The Group 1 principal
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Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 7
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
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balance as of the cut-off date does not, and as of any date will not, include
the outstanding balance of the permanent buy down companion loans included in
Group 1.
AVERAGE LIFE SENSITIVITY ANALYSIS:
(assuming 0 bps losses):
<TABLE>
<CAPTION>
Assumes a 5% Clean-Up Call
SCENARIO 1 2 3 4 5
- - - - -
CLASS WAL WINDOW WAL WINDOW WAL WINDOW WAL WINDOW WAL WINDOW
--- ------ --- ------ --- ------ --- ------ --- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1A 14.89 1 - 331 6.38 1 - 187 3.87 1 - 130 2.76 1 - 90 2.16 1 - 66
2A 7.38 1 - 331 3.85 1 - 187 2.90 1 - 130 2.07 1 - 90 1.53 1 - 66
Assumes NO 5% Clean-Up Call (to Maturity)
<CAPTION>
SCENARIO 1 2 3 4 5
- - - - -
CLASS WAL WINDOW WAL WINDOW WAL WINDOW WAL WINDOW WAL WINDOW
--- ------ --- ------ --- ------ --- ------ --- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1A 14.98 1 - 358 6.65 1 - 324 4.02 1 - 216 2.86 1 - 158 2.23 1 - 116
2A 7.38 1 - 349 3.90 1 - 264 2.97 1 - 205 2.13 1 - 146 1.57 1 - 106
PREPAYMENT SCENARIOS
SCENARIO 1 2 3 4 5
- - - - -
Class 1A (1) 0% 50% 100% 150% 200%
Class 2A (2) 10% 20% 26% 35% 45%
</TABLE>
(1) as a percentage of the Prepayment Assumption
(2) as a conditional prepayment rate (CPR)
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Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 8
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
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CLASS 2A EXCESS SPREAD & AVAILABLE FUNDS CAP RATE ANALYSIS (UNDER PRICING
SCENARIO):
<TABLE>
<CAPTION>
PERIOD PAYMENT DATE AVAILABLE FUNDS CAP RATE(1) EXCESS SPREAD AVAILABLE(1)
------ ------------ --------------------------- --------------------------
<S> <C> <C> <C>
1 07/25/00 10.32 3.43
2 08/25/00 10.32 3.43
3 09/25/00 10.58 3.69
4 10/25/00 10.62 3.74
5 11/25/00 10.68 3.79
6 12/25/00 10.73 3.84
7 01/25/01 10.80 3.91
8 02/25/01 10.86 3.97
9 03/25/01 10.92 4.03
10 04/25/01 11.00 4.11
11 05/25/01 11.07 4.19
12 06/25/01 11.16 4.27
13 07/25/01 11.24 4.36
14 08/25/01 11.34 4.45
15 09/25/01 11.45 4.56
16 10/25/01 11.55 4.67
17 11/25/01 11.67 4.79
18 12/25/01 11.80 4.91
19 01/25/02 12.13 5.24
20 02/25/02 12.28 5.40
21 03/25/02 12.45 5.56
22 04/25/02 12.64 5.75
23 05/25/02 13.01 6.12
24 06/25/02 13.57 6.68
25 07/25/02 14.12 7.23
26 08/25/02 14.74 7.85
27 09/25/02 15.42 8.54
28 10/25/02 15.80 8.91
29 11/25/02 16.22 9.33
30 12/25/02 16.68 9.80
</TABLE>
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(1) Assumes 1 Month LIBOR = 6.6475%, 6 Month LIBOR = 6.90875%,
1 Year CMT = 6.11%, Class 2A Net Margin = 0.24%, Expenses = 0.86%.
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Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 9
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
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INITIAL MORTGAGE LOAN CHARACTERISTICS
As of 06/01/2000 (the "Cut-off Date")
<TABLE>
<CAPTION>
GROUP 1 (FIXED RATE):
---------------------
<S> <C>
Current Home Equity Loan Principal Balance (excluding Permanent
Buydown Companion Loan Balance of $1,181,592): $161,461,730
Average Current Home Equity Loan Principal Balance: $63,468 Range: $4,729 - $735,000
Original Home Equity Loan Principal Balance: $162,469,810
Average Original Home Equity Loan Principal Balance: $63,864 Range: $7,700 - $735,000
Properties secured by 1st/2nd Liens: 78.75% / 21.25%
Weighted Average Coupon: 11.478% Range: 7.125% - 16.800%
Weighted Average CLTV: 76.86%
Weighted Average Rem. Term: 259.1 mos.
Weighted Average Original Term: 262.1 mos.
Geographic Distribution: 47 States and District of Columbia
States w/ >5% Concentrations: NY - 13.30% PA - 5.87%
FL - 8.10% MI - 7.70%
Product Type-
Balloons (30's due in 15): 23.51%
Deferred Payment Loans: 25.30%
Voucher Loans: 15.46%
Temporary Buydown Loans: 0.17%
Permanent Buydown Loans: 9.37%
Permanent Buydown Companion Loans: $1,181,592
Occupancy-
Owner Occupied: 90.43%
Non-Owner Occupied: 9.57%
Property Type-
Single Family: 69.67%
Manufactured Home Loans: 13.86%
2-4 Family: 7.26%
Multi-Family: 4.57%
PUD: 1.97%
Mixed Use: 1.13%
Condominium: 0.99%
Commercial: 0.55%
Loan Purpose-
Cashout: 75.58%
Purchase: 14.68%
Refinance: 9.74%
</TABLE>
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 10
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
INITIAL MORTGAGE LOAN CHARACTERISTICS (continued)
As of 06/01/2000 (the "Cut-off Date")
<TABLE>
<CAPTION>
GROUP 2 (ADJUSTABLE RATE):
--------------------------
<S> <C>
Current Home Equity Loan Principal Balance: $173,199,180
Average Current Home Equity Loan Principal Balance: $89,278 Range: $12,606 - $680,000
Original Home Equity Loan Principal Balance: $173,511,821
Average Original Home Equity Loan Principal Balance: $89,439 Range: $12,614 - $680,000
Product Type-
2/28: 66.36%
3/27: 32.17%
6 Month LIBOR: 0.06%
1YR CMT: 1.41%
Temporary Buydown Loans: 0.12%
Deferred Payment Loans: 5.39%
Weighted Average Coupon: 11.185% Range: 7.250% - 15.490%
6 Month LIBOR:
Weighted Average Lifetime Cap: 17.456% Range: 13.250% - 22.490%
Weighted Average Lifetime Floor: 10.304% Range: 6.250% - 15.490%
Weighted Average Gross Margin: 6.536% Range: 3.300% - 10.500%
Weighted Average Months to Roll: 26 Range: 1-36 Mos.
Weighted Average Initial Periodic Cap: 2.000% Range: 1.000% - 3.000%
Weighted Average Periodic Cap: 1.000% Range: 0.000% - 1.000%
1 Year CMT:
Weighted Average Lifetime Cap: 13.120% Range: 11.125% - 16.000%
Weighted Average Lifetime Floor: 7.120% Range: 5.125% - 10.000%
Weighted Average Gross Margin: 3.457% Range: 2.950% - 5.250%
Weighted Average Months to Roll: 6 Range: 1-12 Mos.
Weighted Average Initial Periodic Cap: 2.000% Range: All 2.000%
Weighted Average Periodic Cap: 2.000% Range: All 2.000%
Weighted Average Rem. Term: 356.0 mos.
Weighted Average Original Term: 359.1 mos.
Properties secured by 1st Liens: 100%
Weighted Average CLTV: 80.00%
Geographic Distribution: 45 States and District of Columbia
States w/ >5% Concentrations: NY - 8.84% FL - 6.01% IL - 6.34%
PA - 8.68% OH - 7.72% IN - 5.14%
MI - 8.13% CA - 7.40% NJ - 5.40%
Occupancy-
Owner Occupied: 92.82%
Non-Owner Occupied: 7.18%
Property Type-
Single Family: 72.80%
2-4 Family: 12.39%
Manufactured Home Loans: 9.64%
Condominium: 2.63%
PUD: 2.53%
Loan Purpose-
Purchase: 40.93%
Cashout: 48.28%
Refinance: 10.79%
</TABLE>
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 11
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
INITIAL MORTGAGE LOAN CHARACTERISTICS (continued)
As of 06/01/2000 (the "Cut-off Date")
GROUP 2 (ADJUSTABLE RATE):
--------------------------
<TABLE>
<CAPTION>
Product Type
<S> <C> <C> <C>
2/28
Weighted Average Coupon: 11.399% Range: 7.750% - 14.875%
Weighted Average Lifetime Cap: 17.549% Range: 14.250% - 20.875%
Weighted Average Lifetime Floor: 10.415% Range: 7.125% - 13.875%
Weighted Average Gross Margin: 6.606% Range: 3.300% - 9.875%
3/27
Weighted Average Coupon: 10.857% Range: 7.250% - 15.490%
Weighted Average Lifetime Cap: 17.274% Range: 13.250% - 22.490%
Weighted Average Lifetime Floor: 10.081% Range: 6.250% - 15.490%
Weighted Average Gross Margin: 6.396% Range: 3.400% - 10.500%
1 Year CMT
Weighted Average Coupon: 8.550% Range: 7.625% - 10.250%
Weighted Average Lifetime Cap: 13.120% Range: 11.125% - 16.000%
Weighted Average Lifetime Floor: 7.120% Range: 5.125% - 10.000%
Weighted Average Gross Margin: 3.457% Range: 2.950% - 5.250%
6 Month LIBOR
Weighted Average Coupon: 11.375%
Weighted Average Lifetime Cap: 14.000%
Weighted Average Lifetime Floor: 8.000%
Weighted Average Gross Margin: 5.250%
</TABLE>
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 12
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLLATERAL TABLES INITIAL MORTGAGE LOANS
GROUP 1 (FIXED RATE)
RANGE OF PRINCIPAL BALANCES PERCENT BY NUMBER OF
AS OF THE CUT-OFF DATE ($) PRINCIPAL BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
--------------------------- ----------------- ----------------- --------------
<S> <C> <C> <C>
4,728.75 - 10,000.00 $ 201,933.68 0.13% 24
10,000.01 - 20,000.00 3,034,005.33 1.88 187
20,000.01 - 30,000.00 10,966,092.23 6.79 425
30,000.01 - 40,000.00 14,827,550.15 9.18 421
40,000.01 - 50,000.00 15,337,755.89 9.50 339
50,000.01 - 60,000.00 14,721,173.26 9.12 269
60,000.01 - 70,000.00 12,462,758.98 7.72 192
70,000.01 - 80,000.00 9,219,782.21 5.71 123
80,000.01 - 90,000.00 8,880,724.96 5.50 105
90,000.01 - 100,000.00 6,480,814.58 4.01 68
100,000.01 - 110,000.00 8,059,323.94 4.99 77
110,000.01 - 120,000.00 5,300,865.10 3.28 46
120,000.01 - 130,000.00 3,775,564.70 2.34 30
130,000.01 - 140,000.00 4,876,978.69 3.02 36
140,000.01 - 150,000.00 6,107,495.33 3.78 42
150,000.01 - 160,000.00 3,093,478.67 1.92 20
160,000.01 - 170,000.00 3,132,809.49 1.94 19
170,000.01 - 180,000.00 2,437,810.48 1.51 14
180,000.01 - 190,000.00 3,190,851.39 1.98 17
190,000.01 - 200,000.00 1,557,848.53 0.96 8
200,000.01 - 250,000.00 9,905,174.14 6.13 45
250,000.01 - 300,000.00 4,664,572.93 2.89 17
300,000.01 - 350,000.00 2,322,557.88 1.44 7
350,000.01 - 400,000.00 1,162,230.42 0.72 3
400,000.01 - 450,000.00 838,485.56 0.52 2
450,000.01 - 500,000.00 486,851.50 0.30 1
500,000.01 - 550,000.00 549,343.32 0.34 1
550,000.01 - 600,000.00 1,147,235.94 0.71 2
600,000.01 - 650,000.00 1,288,961.14 0.80 2
650,000.01 - 700,000.00 695,700.00 0.43 1
700,000.01 - 735,000.00 735,000.00 0.46 1
--------------- ------ -----
Total $161,461,730.42 100.00% 2,544
=============== ====== =====
</TABLE>
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 13
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 1 (FIXED RATE)
PERCENT BY NUMBER OF
GEOGRAPHIC DISTRIBUTION PRINCIPAL BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
----------------------- ----------------- ----------------- --------------
Alabama $ 2,454,888.75 1.52% 53
Arizona 1,097,496.09 0.68 17
Arkansas 1,542,704.17 0.96 41
California 6,432,980.47 3.98 76
Colorado 3,255,775.72 2.02 56
Connecticut 4,429,850.20 2.74 50
Delaware 867,214.26 0.54 11
District Of Columbia 617,603.03 0.38 5
Florida 13,078,780.00 8.10 256
Georgia 2,786,874.93 1.73 49
Idaho 581,075.89 0.36 12
Illinois 5,384,973.07 3.34 119
Indiana 5,216,864.65 3.23 110
Iowa 159,180.94 0.10 4
Kansas 413,254.39 0.26 8
Kentucky 1,440,744.06 0.89 29
Louisiana 1,525,813.44 0.95 38
Maine 1,252,844.01 0.78 20
Maryland 5,009,647.18 3.10 59
Massachusetts 6,682,764.10 4.14 56
Michigan 12,433,324.06 7.70 202
Minnesota 2,148,877.01 1.33 32
Mississippi 1,455,282.67 0.90 27
Missouri 1,794,237.88 1.11 33
Nebraska 414,532.36 0.26 5
Nevada 291,975.86 0.18 5
New Hampshire 588,271.44 0.36 5
New Jersey 7,460,003.62 4.62 66
New Mexico 553,502.65 0.34 14
New York 21,476,654.37 13.30 255
North Carolina 3,455,650.19 2.14 80
North Dakota 84,193.94 0.05 3
Ohio 6,052,841.45 3.75 106
Oklahoma 2,152,121.23 1.33 36
Oregon 1,805,980.23 1.12 25
Pennsylvania 9,482,979.67 5.87 187
Rhode Island 1,262,966.90 0.78 16
South Carolina 4,575,152.99 2.83 107
South Dakota 109,751.21 0.07 1
Tennessee 5,759,669.12 3.57 52
Texas 1,954,398.99 1.21 21
Utah 1,064,174.68 0.66 16
Vermont 182,572.54 0.11 4
Virginia 5,067,972.99 3.14 83
Washington 3,019,229.38 1.87 40
West Virginia 1,306,637.60 0.81 28
Wisconsin 1,200,738.97 0.74 24
Wyoming 76,707.07 0.05 2
--------------- ------ -----
Total $161,461,730.42 100.00% 2,544
=============== ====== =====
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 14
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 1 (FIXED RATE)
NUMBER OF
PERCENT BY MORTGAGE
ORIGINAL COMBINED LOAN-TO-VALUE (%) PRINCIPAL BALANCE PRINCIPAL BALANCE LOANS
----------------------------------- ----------------- ----------------- ---------
<S> <C> <C> <C>
6.00 - 10.00 $ 26,533.30 0.02% 3
10.01 - 15.00 70,686.36 0.04 5
15.01 - 20.00 109,767.25 0.07 6
20.01 - 25.00 300,184.62 0.19 12
25.01 - 30.00 948,310.53 0.59 22
30.01 - 35.00 523,095.15 0.32 13
35.01 - 40.00 1,141,135.72 0.71 34
40.01 - 45.00 1,104,356.09 0.68 27
45.01 - 50.00 2,233,984.14 1.38 51
50.01 - 55.00 2,435,697.33 1.51 50
55.01 - 60.00 5,182,791.68 3.21 86
60.01 - 65.00 9,987,651.78 6.19 162
65.01 - 70.00 20,111,390.86 12.46 238
70.01 - 75.00 15,470,542.15 9.58 251
75.01 - 80.00 33,539,784.69 20.77 509
80.01 - 85.00 35,216,206.71 21.81 565
85.01 - 90.00 29,359,896.39 18.18 417
90.01 - 95.00 2,051,981.58 1.27 44
95.01 - 100.00 1,647,734.09 1.02 49
--------------- ------ -----
Total $161,461,730.42 100.00% 2,544
=============== ====== =====
At origination no Group 1 Mortgage Loan had a Combined Loan-to-Value ("CLTV")
exceeding 100.00%.
</TABLE>
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 15
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 1 (FIXED RATE)
PERCENT BY NUMBER OF
MORTGAGE RATES (%) PRINCIPAL BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
------------------- ----------------- ----------------- --------------
<S> <C> <C> <C>
7.125 - 7.249 $ 130,412.35 0.08% 1
7.500 - 7.749 105,818.10 0.06 1
7.750 - 7.999 2,078,975.58 1.29 17
8.000 - 8.249 1,156,136.31 0.72 9
8.250 - 8.499 2,446,713.09 1.51 23
8.500 - 8.749 2,591,009.34 1.60 18
8.750 - 8.999 6,485,890.70 4.02 53
9.000 - 9.249 2,689,613.54 1.67 27
9.250 - 9.499 4,542,879.34 2.81 49
9.500 - 9.749 6,445,703.23 3.99 58
9.750 - 9.999 7,070,091.72 4.38 85
10.000 - 10.249 4,026,671.35 2.49 47
10.250 - 10.499 5,062,976.40 3.14 64
10.500 - 10.749 6,711,973.92 4.16 110
10.750 - 10.999 10,144,091.33 6.28 127
11.000 - 11.249 6,340,532.04 3.93 103
11.250 - 11.499 7,355,529.86 4.55 120
11.500 - 11.749 8,398,511.75 5.20 148
11.750 - 11.999 10,432,606.73 6.46 174
12.000 - 12.249 9,100,684.76 5.64 146
12.250 - 12.499 7,149,371.61 4.43 145
12.500 - 12.749 8,165,421.29 5.06 161
12.750 - 12.999 9,114,578.14 5.64 155
13.000 - 13.249 6,563,120.94 4.06 122
13.250 - 13.499 7,344,360.35 4.55 147
13.500 - 13.749 5,390,383.57 3.34 115
13.750 - 13.999 4,766,060.75 2.95 96
14.000 - 14.249 3,465,755.34 2.15 68
14.250 - 14.499 1,613,295.12 1.00 35
14.500 - 14.749 1,160,146.41 0.72 31
14.750 - 14.999 1,626,474.31 1.01 46
15.000 - 15.249 967,467.48 0.60 20
15.250 - 15.499 353,249.84 0.22 10
15.500 - 15.749 156,206.92 0.10 5
15.750 - 15.999 162,636.91 0.10 5
16.000 - 16.249 26,950.00 0.02 1
16.500 - 16.749 78,400.00 0.05 1
16.750 - 16.800 41,030.00 0.02 1
--------------- ------ -----
Total $161,461,730.42 100.00% 2,544
=============== ====== =====
</TABLE>
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 16
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 1 (FIXED RATE)
NUMBER OF
REMAINING PRINCIPAL PERCENT BY MORTGAGE
MONTHS TO MATURITY BALANCE PRINCIPAL BALANCE LOANS
------------------ ------------ ----------------- ---------
22.81 - 24.00 $ 5,397.12 0.00% 1
36.01 - 48.00 8,529.79 0.00 1
48.01 - 60.00 299,417.39 0.19 21
60.01 - 72.00 252,817.54 0.16 14
72.01 - 84.00 416,950.39 0.26 23
84.01 - 96.00 95,280.40 0.06 4
96.01 - 108.00 153,565.04 0.09 7
108.01 - 120.00 3,920,994.14 2.43 131
120.01 - 132.00 44,826.22 0.03 2
132.01 - 144.00 181,882.26 0.11 6
144.01 - 156.00 301,735.06 0.19 7
156.01 - 168.00 2,706,355.66 1.68 64
168.01 - 180.00 57,407,660.51 35.55 927
180.01 - 192.00 441,566.04 0.27 7
192.01 - 204.00 67,562.09 0.04 1
204.01 - 216.00 158,747.68 0.10 4
216.01 - 228.00 1,609,669.65 1.00 21
228.01 - 240.00 21,800,167.92 13.50 367
240.01 - 252.00 422,110.46 0.26 5
264.01 - 276.00 96,221.82 0.06 2
276.01 - 288.00 261,245.16 0.16 3
288.01 - 300.00 10,361,130.36 6.42 196
300.01 - 312.00 74,505.37 0.05 2
324.01 - 336.00 516,300.45 0.32 3
336.01 - 348.00 2,437,094.60 1.51 29
348.01 - 360.00 56,864,717.26 35.22 692
360.01 - 360.18 555,280.04 0.34 4
--------------- ------ -----
Total $161,461,730.42 100.00% 2,544
=============== ====== =====
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 17
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 1 (FIXED RATE)
PERCENT BY NUMBER OF
PRINCIPAL MORTGAGE
UNDERWRITING CLASS PRINCIPAL BALANCE BALANCE LOANS
------------------ ----------------- ---------- ---------
95 $ 314,548.38 0.20% 3
AA 32,934,735.93 20.40 396
AAA 1,295,778.33 0.80 14
ANIV 11,397,213.47 7.06 141
I 42,200,158.92 26.14 651
II 22,788,734.86 14.11 434
IIB 17,673,449.43 10.95 329
III 5,633,378.41 3.49 77
III-SE 4,398,635.72 2.72 51
IV 17,279,535.56 10.70 341
IVPI 1,524,360.69 0.94 23
V 4,021,200.72 2.49 84
--------------- ------ -----
Total $161,461,730.42 100.00% 2,544
=============== ====== =====
GROUP 1 (FIXED RATE)
PRINCIPAL PERCENT BY NUMBER OF
PROPERTY TYPES BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
-------------- -------------- ----------------- --------------
2-4 FAMILY $ 11,720,893.63 7.26% 153
COMMERCIAL 894,343.32 0.55 2
CONDOMINIUM 1,590,971.02 0.99 33
MANUFACTURED 22,381,628.03 13.86 513
MIXED USE 1,824,431.10 1.13 7
MULTI FAMILY 7,377,162.05 4.57 36
PUD 3,176,397.84 1.97 32
SINGLE FAMILY 112,495,903.43 69.67 1,768
--------------- ------ -----
Total $161,461,730.42 100.00% 2,544
=============== ====== =====
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 18
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 2 (ADJUSTABLE RATE)
RANGE OF PRINCIPAL BALANCES PERCENT BY NUMBER OF
AS OF THE CUT-OFF DATE ($) PRINCIPAL BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
--------------------------- ----------------- ----------------- --------------
<S> <C> <C> <C>
12,606.12 - 20,000.00 $ 401,695.18 0.23% 22
20,000.01 - 30,000.00 2,353,580.47 1.36 90
30,000.01 - 40,000.00 5,934,262.24 3.43 167
40,000.01 - 50,000.00 9,786,708.94 5.65 214
50,000.01 - 60,000.00 13,730,977.93 7.93 248
60,000.01 - 70,000.00 14,779,881.39 8.53 228
70,000.01 - 80,000.00 13,425,612.59 7.75 179
80,000.01 - 90,000.00 12,063,202.36 6.96 142
90,000.01 - 100,000.00 9,992,140.34 5.77 105
100,000.01 - 110,000.00 9,660,654.42 5.58 92
110,000.01 - 120,000.00 8,852,314.80 5.11 77
120,000.01 - 130,000.00 5,527,703.99 3.19 44
130,000.01 - 140,000.00 6,909,269.40 3.99 51
140,000.01 - 150,000.00 5,988,047.59 3.46 41
150,000.01 - 160,000.00 4,163,946.46 2.40 27
160,000.01 - 170,000.00 5,796,455.42 3.35 35
170,000.01 - 180,000.00 4,364,333.58 2.52 25
180,000.01 - 190,000.00 4,244,316.44 2.45 23
190,000.01 - 200,000.00 3,892,010.70 2.25 20
200,000.01 - 250,000.00 11,532,360.06 6.66 52
250,000.01 - 300,000.00 6,591,296.57 3.81 24
300,000.01 - 350,000.00 4,221,874.76 2.44 13
350,000.01 - 400,000.00 4,088,001.68 2.36 11
400,000.01 - 450,000.00 1,705,604.55 0.98 4
450,000.01 - 500,000.00 1,965,800.00 1.13 4
500,000.01 - 550,000.00 547,128.00 0.32 1
650,000.01 - 680,000.00 680,000.00 0.39 1
--------------- ------ -----
Total $173,199,179.86 100.00% 1,940
=============== ====== =====
</TABLE>
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 19
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 2 (ADJUSTABLE RATE)
NUMBER OF
PERCENT BY MORTGAGE
GEOGRAPHIC DISTRIBUTION PRINCIPAL BALANCE PRINCIPAL BALANCE LOANS
----------------------- ----------------- ----------------- ---------
Alabama $ 1,873,406.14 1.08% 28
Arizona 1,103,647.44 0.64 12
Arkansas 1,237,106.30 0.71 13
California 12,824,192.51 7.40 70
Colorado 5,685,863.02 3.28 46
Connecticut 4,707,564.65 2.72 25
Delaware 460,941.29 0.27 5
District Of Columbia 194,250.00 0.11 2
Florida 10,401,366.33 6.01 134
Georgia 2,889,709.08 1.67 41
Idaho 339,942.70 0.20 4
Illinois 10,984,384.62 6.34 109
Indiana 8,897,849.72 5.14 138
Iowa 385,675.27 0.22 7
Kentucky 1,085,274.67 0.63 18
Louisiana 473,969.18 0.27 9
Maine 1,305,306.06 0.75 9
Maryland 5,063,445.70 2.92 50
Massachusetts 3,885,669.23 2.24 30
Michigan 14,086,690.63 8.13 205
Minnesota 1,348,935.59 0.78 17
Mississippi 339,988.45 0.20 6
Missouri 1,708,474.11 0.99 26
Montana 109,250.00 0.06 2
Nebraska 165,602.24 0.10 1
Nevada 345,641.88 0.20 4
New Hampshire 1,142,772.24 0.66 10
New Jersey 9,347,804.33 5.40 74
New Mexico 460,177.51 0.27 7
New York 15,303,366.14 8.84 102
North Carolina 5,015,129.69 2.90 71
Ohio 13,378,326.66 7.72 188
Oklahoma 270,113.61 0.16 5
Oregon 1,196,870.95 0.69 9
Pennsylvania 15,028,189.56 8.68 217
Rhode Island 939,446.28 0.54 10
South Carolina 4,100,405.23 2.37 62
South Dakota 220,051.78 0.13 3
Tennessee 1,228,842.57 0.71 19
Texas 1,272,752.37 0.73 16
Utah 3,332,074.48 1.92 30
Virginia 2,702,875.76 1.56 32
Washington 2,206,927.20 1.27 20
West Virginia 1,572,505.10 0.91 23
Wisconsin 2,518,520.61 1.45 30
Wyoming 57,880.98 0.03 1
--------------- ------ -----
Total $173,199,179.86 100.00% 1,940
=============== ====== =====
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 20
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 2 (ADJUSTABLE RATE)
PERCENT BY NUMBER OF
ORIGINAL LOAN-TO-VALUE (%) PRINCIPAL BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
-------------------------- ----------------- ----------------- --------------
<S> <C> <C> <C>
17.50 - 20.00 $ 54,886.92 0.03% 2
20.01 - 25.00 92,930.68 0.05 2
30.01 - 35.00 204,544.28 0.12 4
40.01 - 45.00 674,793.24 0.39 9
45.01 - 50.00 1,137,825.70 0.66 21
50.01 - 55.00 1,175,509.99 0.68 11
55.01 - 60.00 2,566,658.60 1.48 34
60.01 - 65.00 9,338,670.21 5.39 139
65.01 - 70.00 9,513,985.36 5.49 123
70.01 - 75.00 17,688,609.18 10.21 189
75.01 - 80.00 50,825,279.43 29.35 555
80.01 - 85.00 42,583,149.28 24.59 475
85.01 - 90.00 36,186,735.00 20.89 366
90.01 - 95.00 1,155,601.99 0.67 10
--------------- ------ -----
Total $173,199,179.86 100.00% 1,940
=============== ====== =====
At origination no Group 2 Mortgage Loan had a Loan-to-Value ("LTV") exceeding
95.00%.
</TABLE>
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 21
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 2 (ADJUSTABLE RATE)
PERCENT BY NUMBER OF
MORTGAGE RATES (%) PRINCIPAL BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
------------------- ----------------- ----------------- --------------
7.250 - 7.499 $ 100,428.00 0.06% 1
7.500 - 7.749 889,722.34 0.51 5
7.750 - 7.999 353,433.31 0.20 4
8.000 - 8.249 703,852.14 0.41 7
8.250 - 8.499 1,182,364.47 0.68 9
8.500 - 8.749 2,739,184.94 1.58 13
8.750 - 8.999 3,840,978.03 2.22 29
9.000 - 9.249 3,001,409.85 1.73 31
9.250 - 9.499 4,121,950.87 2.38 36
9.500 - 9.749 5,846,338.02 3.38 48
9.750 - 9.999 9,763,425.31 5.64 99
10.000 - 10.249 6,223,187.46 3.59 67
10.250 - 10.499 9,062,493.00 5.23 89
10.500 - 10.749 11,182,093.59 6.46 124
10.750 - 10.999 17,880,978.39 10.32 181
11.000 - 11.249 9,659,527.15 5.58 115
11.250 - 11.499 11,182,791.99 6.46 124
11.500 - 11.749 11,614,892.84 6.71 134
11.750 - 11.999 11,330,204.06 6.54 131
12.000 - 12.249 8,087,858.34 4.67 108
12.250 - 12.499 9,505,811.15 5.49 128
12.500 - 12.749 10,778,759.84 6.22 136
12.750 - 12.999 9,792,290.51 5.65 131
13.000 - 13.249 5,371,669.50 3.10 69
13.250 - 13.499 1,969,053.63 1.14 24
13.500 - 13.749 2,188,642.45 1.26 30
13.750 - 13.999 2,446,961.74 1.41 33
14.000 - 14.249 1,419,065.71 0.82 17
14.250 - 14.499 474,785.57 0.27 7
14.500 - 14.749 390,820.28 0.23 7
14.750 - 14.999 62,425.71 0.04 2
15.250 - 15.490 31,779.67 0.02 1
--------------- ------ -----
Total $173,199,179.86 100.00% 1,940
=============== ====== =====
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 22
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 2 (ADJUSTABLE RATE)
PERCENT BY NUMBER OF
REMAINING MONTHS TO MATURITY PRINCIPAL BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
---------------------------- ----------------- ----------------- --------------
<S> <C> <C> <C>
114.00 - 120.99 $ 104,602.83 0.06% 5
169.00 - 180.99 96,907.17 0.06 2
229.00 - 240.99 238,425.02 0.14 6
277.00 - 288.99 1,026,390.42 0.59 9
289.00 - 300.99 2,828,686.05 1.63 53
301.00 - 312.99 103,513.60 0.06 1
325.00 - 336.99 63,582.55 0.04 1
337.00 - 348.99 2,242,056.77 1.29 27
349.00 - 357.99 47,142,359.56 27.22 446
358.00 - 358.99 25,835,549.85 14.92 301
359.00 - 359.99 53,951,655.40 31.15 629
360.00 - 360.00 39,565,450.64 22.84 460
--------------- ------ -----
Total $173,199,179.86 100.00% 1,940
=============== ====== =====
</TABLE>
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 23
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 2 (ADJUSTABLE RATE)
MONTH OF NEXT RATE ADJUSTMENT PRINCIPAL PERCENT BY NUMBER OF
FOR 6-MO. LIBOR LOANS BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
----------------------------- ----------- ----------------- --------------
<S> <C> <C> <C>
July 2000 $ 123,305.56 0.07% 2
August 2000 597,191.25 0.35 3
September 2000 156,880.59 0.09 2
October 2000 122,601.27 0.07 1
November 2000 470,807.60 0.28 6
December 2000 246,119.99 0.14 3
January 2001 250,826.41 0.15 4
February 2001 38,931.29 0.02 1
March 2001 0.00 0.00 0
April 2001 36,557.55 0.02 1
May 2001 77,875.13 0.05 1
June 2001 52,822.23 0.03 1
July 2001 51,244.70 0.03 1
August 2001 0.00 0.00 0
September 2001 144,741.45 0.08 3
October 2001 1,079,154.78 0.63 10
November 2001 1,200,888.31 0.70 14
December 2001 1,624,895.13 0.95 17
January 2002 4,158,467.56 2.44 36
February 2002 7,238,428.37 4.24 73
March 2002 7,304,564.49 4.28 79
April 2002 21,735,595.97 12.73 251
May 2002 41,621,166.90 24.37 479
June 2002 26,939,555.50 15.78 327
July 2002 17,471.39 0.01 1
August 2002 0.00 0.00 0
September 2002 298,104.35 0.17 2
October 2002 0.00 0.00 0
November 2002 642,124.75 0.38 7
December 2002 2,549,682.85 1.49 15
January 2003 4,612,480.99 2.70 42
February 2003 10,606,798.92 6.21 94
March 2003 6,056,692.31 3.55 64
April 2003 4,577,223.22 2.68 62
May 2003 12,864,984.34 7.53 164
June 2003 13,265,420.14 7.77 149
--------------- ------ -----
Total $170,763,605.29 100.00% 1,915
=============== ====== =====
</TABLE>
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 24
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 2 (ADJUSTABLE RATE)
GROSS MARGIN PERCENT BY NUMBER OF
FOR 6-MO LIBOR LOANS PRINCIPAL BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
-------------------- ----------------- ----------------- --------------
<S> <C> <C> <C>
3.250 - 3.499 $ 228,348.44 0.13% 2
3.500 - 3.749 42,000.00 0.02 1
3.750 - 3.999 91,800.00 0.05 1
4.000 - 4.249 644,612.83 0.38 4
4.250 - 4.499 1,125,663.38 0.66 11
4.500 - 4.749 1,598,440.67 0.94 17
4.750 - 4.999 4,194,728.82 2.46 38
5.000 - 5.249 4,286,988.11 2.51 50
5.250 - 5.499 6,705,830.37 3.93 71
5.500 - 5.749 10,292,286.65 6.03 103
5.750 - 5.999 14,523,845.55 8.51 145
6.000 - 6.249 19,404,702.76 11.36 188
6.250 - 6.499 13,847,968.49 8.11 158
6.500 - 6.749 16,264,124.64 9.52 189
6.750 - 6.999 22,373,869.64 13.10 246
7.000 - 7.249 15,135,018.93 8.86 189
7.250 - 7.499 9,073,897.17 5.31 113
7.500 - 7.749 8,533,940.65 5.00 96
7.750 - 7.999 8,113,632.14 4.75 108
8.000 - 8.249 6,476,072.16 3.79 80
8.250 - 8.499 2,155,057.49 1.26 26
8.500 - 8.749 1,577,803.83 0.92 18
8.750 - 8.999 1,963,295.57 1.15 31
9.000 - 9.249 1,129,881.72 0.66 13
9.250 - 9.499 540,953.99 0.32 8
9.500 - 9.749 344,635.91 0.20 6
9.750 - 9.999 30,995.39 0.02 1
10.250 - 10.499 31,430.32 0.02 1
10.500 - 10.749 31,779.67 0.02 1
--------------- ------ -----
Total $170,763,605.29 100.00% 1,915
=============== ====== =====
</TABLE>
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 25
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 2 (ADJUSTABLE RATE)
MAXIMUM MORTGAGE RATES PERCENT BY NUMBER OF
FOR 6-MO. LIBOR LOANS PRINCIPAL BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
---------------------- ----------------- ----------------- --------------
<S> <C> <C> <C>
13.250 - 13.499 $ 100,428.00 0.06% 1
13.500 - 13.749 343,960.00 0.20 1
14.000 - 14.249 103,513.60 0.06 1
14.250 - 14.499 496,393.20 0.29 4
14.500 - 14.749 268,500.00 0.16 2
14.750 - 14.999 1,007,444.93 0.59 13
15.000 - 15.249 1,043,312.59 0.61 11
15.250 - 15.499 2,184,824.47 1.28 24
15.500 - 15.749 5,394,845.75 3.16 35
15.750 - 15.999 7,034,357.53 4.12 64
16.000 - 16.249 6,459,264.96 3.78 68
16.250 - 16.499 8,155,455.35 4.78 78
16.500 - 16.749 10,680,722.39 6.25 115
16.750 - 16.999 18,632,911.39 10.91 186
17.000 - 17.249 9,627,882.53 5.64 115
17.250 - 17.499 13,175,117.62 7.72 133
17.500 - 17.749 13,455,384.60 7.88 147
17.750 - 17.999 13,790,097.83 8.08 154
18.000 - 18.249 8,505,616.45 4.98 108
18.250 - 18.499 10,016,256.60 5.87 135
18.500 - 18.749 11,684,968.12 6.84 149
18.750 - 18.999 12,125,185.37 7.10 153
19.000 - 19.249 6,169,295.97 3.61 80
19.250 - 19.499 2,392,565.64 1.40 29
19.500 - 19.749 2,707,308.14 1.59 36
19.750 - 19.999 2,544,710.83 1.49 35
20.000 - 20.249 1,469,430.75 0.86 18
20.250 - 20.499 609,686.46 0.36 9
20.500 - 20.749 489,958.84 0.29 8
20.750 - 20.999 62,425.71 0.04 2
22.250 - 22.499 31,779.67 0.02 1
--------------- ------ -----
Total $170,763,605.29 100.00% 1,915
=============== ====== =====
</TABLE>
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 26
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 2 (ADJUSTABLE RATE)
MINIMUM MORTGAGE RATES PERCENT BY NUMBER OF
FOR 6-MO. LIBOR LOANS PRINCIPAL BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
---------------------- ----------------- ----------------- --------------
<S> <C> <C> <C>
6.250 - 6.499 $ 100,428.00 0.06% 1
6.500 - 6.749 343,960.00 0.20 1
6.750 - 6.999 204,974.48 0.12 2
7.000 - 7.249 151,496.06 0.09 1
7.250 - 7.499 643,355.64 0.38 6
7.500 - 7.749 1,288,705.71 0.75 8
7.750 - 7.999 2,902,674.14 1.70 23
8.000 - 8.249 1,695,098.98 0.99 18
8.250 - 8.499 3,024,396.37 1.77 28
8.500 - 8.749 6,090,053.01 3.57 42
8.750 - 8.999 8,973,768.04 5.26 88
9.000 - 9.249 6,795,435.13 3.98 70
9.250 - 9.499 9,470,724.31 5.55 91
9.500 - 9.749 10,751,423.03 6.30 120
9.750 - 9.999 17,957,695.74 10.52 180
10.000 - 10.249 9,711,096.73 5.69 117
10.250 - 10.499 11,686,790.73 6.84 124
10.500 - 10.749 12,792,406.35 7.49 143
10.750 - 10.999 12,322,276.70 7.22 140
11.000 - 11.249 8,026,013.95 4.70 104
11.250 - 11.499 9,515,246.25 5.57 130
11.500 - 11.749 10,920,052.07 6.39 138
11.750 - 11.999 10,315,314.40 6.04 138
12.000 - 12.249 5,580,110.29 3.27 74
12.250 - 12.499 2,186,607.67 1.28 25
12.500 - 12.749 2,265,932.44 1.33 32
12.750 - 12.999 2,541,160.77 1.49 35
13.000 - 13.249 1,419,065.71 0.83 17
13.250 - 13.499 503,178.37 0.29 8
13.500 - 13.749 489,958.84 0.29 8
13.750 - 13.999 62,425.71 0.04 2
15.250 - 15.499 31,779.67 0.02 1
--------------- ------ -----
Total $170,763,605.29 100.00% 1,915
=============== ====== =====
</TABLE>
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 27
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 2 (ADJUSTABLE RATE)
MONTH OF NEXT RATE ADJUSTMENT PRINCIPAL PERCENT BY NUMBER OF
FOR 1-YR. CMT LOANS BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
----------------------------- ----------- ----------------- --------------
<S> <C> <C> <C>
July 2000 $ 190,407.08 7.82% 2
August 2000 613,386.33 25.18 6
September 2000 605,390.74 24.86 8
October 2000 0.00 0.00 0
November 2000 0.00 0.00 0
December 2000 0.00 0.00 0
January 2001 0.00 0.00 0
February 2001 0.00 0.00 0
March 2001 0.00 0.00 0
April 2001 99,316.82 4.08 1
May 2001 180,805.16 7.42 2
June 2001 746,268.44 30.64 6
------------- ------ --
Total $2,435,574.57 100.00% 25
------------- ------ --
<CAPTION>
GROSS MARGIN PERCENT BY NUMBER OF
FOR 1-YR. CMT LOANS PRINCIPAL BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
------------------- ----------------- ----------------- --------------
<S> <C> <C> <C>
2.750 - 2.999 $1,346,390.60 55.28% 13
3.250 - 3.499 116,241.75 4.77 1
4.000 - 4.249 850,651.60 34.93 10
5.250 - 5.499 122,290.62 5.02 1
------------- ------ --
Total $2,435,574.57 100.00% 25
------------- ------ --
</TABLE>
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 28
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 2 (ADJUSTABLE RATE)
MAXIMUM MORTGAGE RATES PERCENT BY NUMBER OF
FOR 1-YR. CMT LOANS PRINCIPAL BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
---------------------- ----------------- ----------------- --------------
<S> <C> <C> <C>
11.000 - 11.249 $ 99,316.82 4.08% 1
11.500 - 11.749 543,781.74 22.33 5
12.000 - 12.249 137,064.92 5.63 1
12.250 - 12.499 150,935.96 6.20 1
12.500 - 12.749 415,291.16 17.05 5
12.750 - 12.999 116,241.75 4.77 1
13.750 - 13.999 126,905.37 5.21 2
14.250 - 14.499 164,635.90 6.76 2
14.500 - 14.749 115,926.57 4.76 1
14.750 - 14.999 443,183.76 18.20 5
16.000 - 16.249 122,290.62 5.02 1
------------- ------ --
Total $2,435,574.57 100.00% 25
============= ====== ==
<CAPTION>
MINIMUM MORTGAGE RATES PERCENT BY NUMBER OF
FOR 1-YR. CMT LOANS PRINCIPAL BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
---------------------- ----------------- ----------------- --------------
<S> <C> <C> <C>
5.000 - 5.249 $ 99,316.82 4.08% 1
5.500 - 5.749 543,781.74 22.33 5
6.000 - 6.249 137,064.92 5.63 1
6.250 - 6.499 150,935.96 6.20 1
6.500 - 6.749 415,291.16 17.05 5
6.750 - 6.999 116,241.75 4.77 1
7.750 - 7.999 126,905.37 5.21 2
8.250 - 8.499 164,635.90 6.76 2
8.500 - 8.749 115,926.57 4.76 1
8.750 - 8.999 443,183.76 18.20 5
10.000 - 10.249 122,290.62 5.02 1
------------- ------ --
Total $2,435,574.57 100.00% 25
============= ====== ==
</TABLE>
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 29
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COLLATERAL TABLES FOR INITIAL MORTGAGE LOANS (continued)
GROUP 2 (ADJUSTABLE RATE)
PERCENT BY NUMBER OF
UNDERWRITING CLASS PRINCIPAL BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
------------------ ----------------- ----------------- --------------
<S> <C> <C> <C>
95 $ 1,155,601.99 0.67% 10
AA 13,836,197.67 7.99 130
ANIV 10,213,273.70 5.90 80
I 48,300,207.84 27.89 500
II 28,870,093.31 16.67 343
IIB 22,954,036.59 13.25 293
III 6,681,238.69 3.86 67
III-SE 3,394,394.79 1.96 30
IV 27,338,098.15 15.78 345
IVPI 2,072,200.97 1.19 21
V 8,383,836.16 4.84 121
------------ ------ -----
Total $173,199,179.86 100.00% 1,940
=============== ====== =====
</TABLE>
GROUP 2 (ADJUSTABLE RATE)
PERCENT BY NUMBER OF
PROPERTY TYPE PRINCIPAL BALANCE PRINCIPAL BALANCE MORTGAGE LOANS
------------- ----------------- ----------------- --------------
2-4 FAMILY $ 21,458,507.28 12.39% 194
CONDOMINIUM 4,559,641.78 2.63 49
MANUFACTURED 16,700,943.11 9.64 252
PUD 4,387,045.51 2.54 37
SINGLE FAMILY 126,093,042.18 72.80 1,408
--------------- ------ -----
Total $173,199,179.86 100.00% 1,940
=============== ====== =====
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 30
<PAGE>
COMPUTATIONAL MATERIALS FOR AFC MORTGAGE LOAN
[LOGO] MERRILL LYNCH ASSET-BACKED NOTES, SERIES 2000-2
-------------------------------------------------------------------------------
FOR ADDITIONAL INFORMATION PLEASE CALL:
ASSET BACKED SECURITIES GROUP
Ken Mulford (212) 449-0752
David Wu (212) 449-2610
Demetrios Tsipras (212) 449-9486
Vu Nguyen (212) 449-1955
Ryad Yousuf (212) 449-2365
MBS/ABS TRADING
(New York)
Vince Mora (212) 449-5320
Scott Soltas (212) 449-3659
Terrence Mack (212) 449-3659
Brian Kane (212) 449-3659
Laila Kollmorgen (212) 449-3659
ASSET BACKED RESEARCH
Dan Castro (212) 449-1663
Theresa O'Neill (212) 449-0514
-------------------------------------------------------------------------------
Recipients must read the information contained in the attached statement.
Do not use or rely on this information if you have not received or reviewed
the statement. If you have not received the statement, call your Merrill
Lynch account executive for another copy. The collateral information set
forth in the Computational Materials supersedes any previously distributed
collateral information relating to the securities discussed in this
communication and will be superseded by the information set forth in the
final prospectus supplement. 31
