<PAGE> 1
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):September 22, 1997
EQCC RECEIVABLES CORPORATION
EQCC ASSET BACKED CORPORATION
(Exact name of registrants as specified in governing instruments)
59-3170055
Delaware 333-20675 59-3170052
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
organization)
10401 Deerwood Park Blvd., Jacksonville, Florida 32256
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(904) 987-5000
Not Applicable
(Former name or former address if changed since last report)
Exhibit Index located at Page 3
<PAGE> 2
Items 1 through 4, Item 6 and Item 8 are not included because they are not
applicable.
ITEM 5. OTHER EVENTS.
On or prior to September 30, 1997 the Registrants will cause the
issuance and sale of EQCC Home Equity Loan Asset Backed Certificates, Series
1997-3, Class A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class
A-7, Class A-8, Class A-9 and Class A-10 (the "Certificates") pursuant to a
Pooling and Servicing Agreement dated as of September 1, 1997, among the
Registrant, EquiCredit Corporation of America, as Servicer, and First Bank
National Association, as Trustee. In connection with the sale of the
Certificates, the Registrants have been advised by Salomon Brothers, Bear,
Stearns, Inc., Lehman Brothers Inc. and Prudential Securities Incorporated (the
"Underwriters"), that the Underwriters have furnished to prospective investors
certain computational materials and collateral term sheets (the "Term Sheets")
with respect to the Certificates following the effective date of Registration
Statement No. 333-20675 but prior to the availability of a final Prospectus
relating to the Certificates. The Term Sheets in the form used by each of the
Underwriters are being filed as an exhibit to this report.
The Term Sheets attached hereto have been provided by the Underwriters.
The information in the Term Sheets was preliminary and will be superseded by the
Prospectus Supplement relating to the Certificates and may be superseded by any
other information subsequently filed with the Commission.
The "computational materials" portion of the Term Sheets were prepared
by the Underwriters at the request of certain prospective investors, based on
assumptions provided by, and satisfying the special requirements of, such
prospective investors. Such materials may not include, and do not purport to
include, information based on assumptions representing a complete set of
possible scenarios. Accordingly, such materials may not be relevant to or
appropriate for investors other than those specifically requesting them.
Certain assumptions may have been made in the Term Sheets which have
resulted in any returns to holders of the Certificates that are detailed in the
Term Sheets. No representation is made that any returns indicated in the Term
Sheets will be achieved. Changes to the assumptions may have a material impact
on any returns detailed. Past performance is not necessarily indicative of
future results.
In addition, the actual characteristics and performance of the mortgage
loans underlying the Certificates (the "Mortgage Loans") will differ from the
assumptions used in the Term Sheets, 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 the Certificates might vary under varying
2
<PAGE> 3
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 Certificates.
The statistical distribution of the characteristics of the final
Mortgage Pool will vary from the statistical distribution of such
characteristics as set forth in the "collateral term sheet" portion of the Term
Sheets.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
List below the financial statements, pro forma financial information and
exhibits, if any, filed as part of this report.
(a) Financial Statements of Businesses Acquired.
Not applicable
(b) Pro Forma Financial Information.
Not applicable
(c) Exhibits.
<TABLE>
<CAPTION>
Sequentially
Exhibit Numbered
Number Exhibit Page
- ------ ------- ----
<S> <C> <C>
99.1(D) Computational Materials prepared in 005
connection with the sale of EQCC Home Equity
Loan Asset Backed Certificates, Series 1997-3,
by Salomon Brothers, Bear, Stearns, Inc., Lehman
Brothers Inc. and Prudential Securities
Incorporated
</TABLE>
3
<PAGE> 4
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their behalf by the
undersigned hereunto duly authorized.
EQCC RECEIVABLES CORPORATION
EQCC ASSET BACKED CORPORATION
(Registrants)
EQCC RECEIVABLES CORPORATION
September 24, 1997 By: /s/ Terence G. Vane, Jr.
------------------------
Terence G. Vane, Jr.
Vice President
EQCC ASSET BACKED CORPORATION
September 24, 1997 By: /s/ Terence G. Vane, Jr.
------------------------
Terence G. Vane, Jr.
Vice President
<PAGE> 5
EXHIBIT INDEX
<TABLE>
<CAPTION>
Sequentially
Exhibit Numbered
Number Exhibit Page
- ------ ------- ----
<S> <C> <C>
99.1(D) Computational Materials prepared in 005
connection with the sale of EQCC Home Equity
Loan Asset Backed Certificates, Series 1997-3,
by Salomon Brothers, Bear, Stearns, Inc., Lehman
Brothers Inc. and Prudential Securities
Incorporated
</TABLE>
<PAGE> 1
Exhibit 99.1(D)
Computational Materials
<PAGE> 2
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE 1 OF 17
FIXED RATE COLLATERAL SUMMARY
Total Number of Loans 10,222 Level Pay/Balloon 60%/40%
Total Outstanding Loan Balance $463,431,401 1st Lien/2nd Lien 74%/26%
<TABLE>
<CAPTION>
RANGE % TOTAL # LOANS
<S> <C> <C> <C>
Avg Loan Balance $ 45,336.67 less than or equal to 24,999.99 10.81 2,899
Highest Balance $336,958.05 25,000 - 49,999.99 31.25 3,988
Lowest Balance $ 4,065.53 50,000 - 74,999.99 25.53 1,972
75,000 - 99,999.99 13.04 706
100,000 - 336,958.05 19.37 657
</TABLE>
<TABLE>
<CAPTION>
RANGE % TOTAL # LOANS
<S> <C> <C> <C>
Wtd Avg Coupon 10.88% 7.75% - 9.99% 24.41 1,711
Highest Coupon 17.00% 10.00% - 10.99% 38.35 3,401
Lowest Coupon 7.75% 11.00% - 11.99% 20.38 2,490
12.00% - 17.00% 16.87 2,620
</TABLE>
************ SEE PAGE 16 FOR DISCLAIMER************
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE 2 OF 17
FIXED RATE COLLATERAL SUMMARY CONTINUED
<TABLE>
<CAPTION>
RANGE % TOTAL # LOANS
<S> <C> <C> <C>
Wtd. Avg Orig CLTV 78.84% 8.00% - 70.00% 19.77 2,278
Highest CLTV 100.00% 70.01% - 80.00% 33.29 2,950
Lowest CLTV 8.00% 80.01% - 90.00% 34.76 3,197
90.01% - 100.00% 12.17 1,797
</TABLE>
<TABLE>
<CAPTION>
RANGE LEVEL PAY BALLOON
<S> <C> <C> <C>
Wtd Avg Original Term 177.18 24 - 84 0.43% 26.26%
Highest Original Term 360 85 - 120 2.28% 5.88%
Lowest Original Term 24 121 - 180 37.63% 7.74%
</TABLE>
<PAGE> 3
<TABLE>
<S> <C> <C> <C>
181 - 240 6.38% 0.03%
241 - 360 13.35% 0.00%
</TABLE>
************ SEE PAGE 16 FOR DISCLAIMER************
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE 3 OF 17
FIXED RATE COLLATERAL SUMMARY CONTINUED
<TABLE>
<CAPTION>
RANGE LEVEL PAY BALLOON
<S> <C> <C> <C>
Wtd Avg Remaining Term 176.76 23 - 84 0.48% 26.28%
Highest Remaining Term 360 85 - 120 2.31% 5.87%
Lowest Remaining Term 23 121 - 180 37.56% 7.74%
181 - 240 6.38% 0.03%
241 - 360 13.35% 0.00%
</TABLE>
<TABLE>
<CAPTION>
Property Type Occupancy Status
<S> <C>
Single Family 92.41% Primary Residence 96.99%
Other 7.59% Other 3.01%
</TABLE>
Geographics FL 13%, NY 7%, PA 6%, CA 5%, OH 5%
************ SEE PAGE 16 FOR DISCLAIMER************
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE 4 OF 17
FLOATING RATE COLLATERAL SUMMARY
Total Number of Loans 1,568 Level Pay/Balloon 5%/95%
Total Outstanding Loan Balance $148,425,147 1st Lien/2nd Lien 100%/ 0%
<TABLE>
<CAPTION>
RANGE % TOTAL # LOANS
<S> <C> <C> <C>
Avg Loan Balance $ 94,658.89 less than or equal to 24,999.99 0.04 3
Highest Balance $ 350,000.00 25,000 - 49,999.99 4.94 178
Lowest Balance $ 15,000.00 50,000 - 74,999.99 17.44 410
75,000 - 99,999.99 24.87 422
</TABLE>
2
<PAGE> 4
<TABLE>
<S> <C> <C> <C>
100,000 - 350,000.00 52.71 555
</TABLE>
<TABLE>
<CAPTION>
RANGE % TOTAL # LOANS
<S> <C> <C> <C>
Wtd Avg Coupon 7.98% 6.40% - 9.99% 98.11 1,535
Highest Coupon 11.85% 10.00% - 10.99% 0.94 14
Lowest Coupon 6.40% 11.00% - 11.99% 0.95 19
</TABLE>
************ SEE PAGE 16 FOR DISCLAIMER************
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE 5 OF 17
FLOATING RATE COLLATERAL SUMMARY CONTINUED
<TABLE>
<CAPTION>
RANGE % TOTAL # LOANS
<S> <C> <C> <C>
Wtd. Avg Orig CLTV 82.74% 22.00% - 70.00% 5.78 104
Highest CLTV 97.00% 70.01% - 80.00% 30.50 475
Lowest CLTV 22.00% 80.01% - 90.00% 55.70 874
90.01% - 97.00% 8.02 115
</TABLE>
<TABLE>
<CAPTION>
RANGE LEVEL PAY BALLOON
<S> <C> <C> <C>
Wtd Avg Original Term 101.16 64 - 84 0.00% 85.52%
Highest Original Term 360 85 - 120 0.10% 4.72%
Lowest Original Term 64 121 - 180 1.71% 4.29%
181 - 240 0.33% 0.00%
241 - 360 3.32% 0.00%
</TABLE>
************ SEE PAGE 16 FOR DISCLAIMER************
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE 6 OF 17
FLOATING RATE COLLATERAL SUMMARY CONTINUED
<TABLE>
<CAPTION>
RANGE LEVEL PAY BALLOON
<S> <C> <C> <C>
Wtd Avg Remaining Term 98.92 64 - 84 0.00% 85.52%
</TABLE>
3
<PAGE> 5
<TABLE>
<S> <C> <C> <C>
Highest Remaining Term 360 85 - 120 0.10% 4.72%
Lowest Remaining Term 64 121 - 180 1.71% 4.29%
181 - 240 0.33% 0.00%
241 - 360 3.32% 0.00%
</TABLE>
<TABLE>
<CAPTION>
Property Type Occupancy Status
<S> <C>
Single Family 94.07% Primary Residence 99.93%
Other 5.93% Other 0.07%
</TABLE>
Geographics OH 15%, MI 14%, IL 11%, MN 9%, AZ 5%
************ SEE PAGE 16 FOR DISCLAIMER************
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE 7 OF 17
FLOATING RATE COLLATERAL SUMMARY CONTINUED
6 MONTH LIBOR Collateral 100% Periodic Cap 1.0%/1.5% 100%/0%
Wtd Avg Months to Next Rate Roll 4.99
<TABLE>
<CAPTION>
RANGE % TOTAL # LOANS
<S> <C> <C> <C>
Wtd Avg Margin 5.11% 3.40% - 4.99% 50.01 794
Highest Margin 9.25% 5.00% - 5.99% 37.97 580
Lowest Margin 3.40% 6.00% - 6.99% 10.64 175
7.00% - 7.99% 1.15 16
8.00% - 9.25% 0.22 3
</TABLE>
<TABLE>
<CAPTION>
RANGE % TOTAL # LOANS
<S> <C> <C> <C>
Wtd Avg Life Cap 16.93% 14.88% - 15.99% 5.43 85
Highest Life Cap 23.22% 16.00% - 16.99% 54.41 858
Lowest Life Cap 14.88% 17.00% - 17.99% 28.90 442
18.00% - 18.99% 9.76 162
19.00% - 23.22% 1.49 21
</TABLE>
************ SEE PAGE 16 FOR DISCLAIMER************
4
<PAGE> 6
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE 8 OF 17
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
% OF PREPAYMENT ASSUMPTION 0% 75% 100% 125% 150% 200%
IMPLIED SEASONED CPR 0% 15% 20% 25% 30% 40%
</TABLE>
Transaction will be priced at 125% of Assumption
CLASS A-1: Expected Rating (Moodys/S&P) Aaa/AAA; AMBAC Wrap; Legal Final 6/03
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Avg Life (yrs) 3.07 0.61 0.52 0.45 0.40 0.33
Mod Duration (yrs) 2.67 0.58 0.49 0.43 0.38 0.32
First Pay (mm/yy) 10/97 10/97 10/97 10/97 10/97 10/97
Last Pay (mm/yy) 6/03 10/98 8/98 7/98 6/98 4/98
</TABLE>
CLASS A-2: Expected Rating (Moodys/S&P) Aaa/AAA;AMBAC Wrap;Legal Final 10/04
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Avg Life (yrs) 6.80 1.66 1.34 1.15 1.01 0.84
Mod Duration (yrs) 5.40 1.52 1.25 1.08 0.95 0.79
First Pay (mm/yy) 6/03 10/98 8/98 7/98 6/98 4/98
Last Pay (mm/yy) 10/04 2/00 8/99 4/99 2/99 11/98
</TABLE>
************ SEE PAGE 16 FOR DISCLAIMER************
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE 9 OF 17
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
% OF PREPAYMENT ASSUMPTION 0% 75% 100% 125% 150% 200%
IMPLIED SEASONED CPR 0% 15% 20% 25% 30% 40%
</TABLE>
Transaction will be priced at 125% of Assumption
CLASS A-3: Expected Rating (Moodys/S&P) Aaa/AAA;AMBAC Wrap;Legal Final 11/08
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Avg Life (yrs) 9.16 3.11 2.42 2.00 1.71 1.35
Mod Duration (yrs) 6.75 2.74 2.17 1.82 1.58 1.26
First Pay (mm/yy) 10/04 2/00 8/99 4/99 2/99 11/98
Last Pay (mm/yy) 11/08 10/01 10/00 3/00 11/99 5/99
</TABLE>
CLASS A-4: Expected Rating (Moodys/S&P) Aaa/AAA;AMBAC Wrap;Legal Final 5/12
5
<PAGE> 7
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Avg Life (yrs) 13.05 5.10 3.83 3.05 2.55 1.94
Mod Duration (yrs) 8.61 4.21 3.29 2.69 2.28 1.77
First Pay (mm/yy) 11/08 10/01 10/00 3/00 11/99 5/99
Last Pay (mm/yy) 5/12 3/04 6/02 7/01 10/00 1/00
</TABLE>
************ SEE PAGE 16 FOR DISCLAIMER************
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE 10 OF 17
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
% OF PREPAYMENT ASSUMPTION 0% 75% 100% 125% 150% 200%
IMPLIED SEASONED CPR 0% 15% 20% 25% 30% 40%
</TABLE>
Transaction will be priced at 125% of Assumption
CLASS A-5: Expected Rating (Moodys/S&P) Aaa/AAA;AMBAC Wrap;Legal Final 9/12
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Avg Life (yrs) 14.90 6.80 5.08 4.00 3.25 2.41
Mod Duration (yrs) 9.27 5.33 4.19 3.41 2.84 2.16
First Pay (mm/yy) 5/12 3/04 6/02 7/01 10/00 1/00
Last Pay (mm/yy) 9/12 8/04 3/03 1/02 3/01 4/00
</TABLE>
************ SEE PAGE 16 FOR DISCLAIMER************
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE 11 OF 17
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
% OF PREPAYMENT ASSUMPTION 0% 75% 100% 125% 150% 200%
IMPLIED SEASONED CPR 0% 15% 20% 25% 30% 40%
</TABLE>
Transaction will be priced at 125% of Assumption
CLASS A-6: Expected Rating (Moodys/S&P) Aaa/AAA;AMBAC Wrap;Legal Final 8/21
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Avg Life (yrs) 17.77 8.83 6.87 5.25 4.16 2.91
Mod Duration (yrs) 10.03 6.44 5.32 4.28 3.51 2.56
</TABLE>
6
<PAGE> 8
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
First Pay (mm/yy) 9/12 8/04 3/03 1/02 3/01 4/00
Last Pay (mm/yy) 8/21 12/08 1/07 7/04 10/02 3/01
Avg Life to call (yrs) 16.38 8.43 6.64 5.25 4.16 2.91
Mod Duration to call (yrs) 9.66 6.23 5.19 4.28 3.51 2.56
First Pay to call (mm/yy) 9/12 8/04 3/03 1/02 3/01 4/00
Last Pay to call (mm/yy) 2/15 12/06 3/05 7/04 10/02 3/01
10% call assumption
</TABLE>
************ SEE PAGE 16 FOR DISCLAIMER************
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE 12 OF 17
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
% OF PREPAYMENT ASSUMPTION 0% 75% 100% 125% 150% 200%
IMPLIED SEASONED CPR 0% 15% 20% 25% 30% 40%
</TABLE>
Transaction will be priced at 125% of Assumption
CLASS A-7: Expected Rating (Moodys/S&P) Aaa/AAA;AMBAC Wrap;Legal Final 2/29
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Avg Life (yrs) 27.25 14.27 12.05 9.92 7.68 4.01
Mod Duration (yrs) 11.77 8.64 7.78 6.80 5.61 3.37
First Pay (mm/yy) 8/21 12/08 1/07 7/04 10/02 3/01
Last Pay (mm/yy) 11/27 11/27 11/27 11/27 11/27 7/02
Avg Life to call (yrs) 17.38 9.21 7.46 7.00 6.06 4.01
Mod Duration to call (yrs) 9.73 6.56 5.62 5.35 4.77 3.37
First Pay to call (mm/yy) 2/15 12/06 3/05 7/04 10/02 3/01
Last Pay to call (mm/yy) 2/15 12/06 3/05 10/04 3/04 6/02
10% call assumption
</TABLE>
************ SEE PAGE 16 FOR DISCLAIMER************
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE 13 OF 17
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
% OF PREPAYMENT ASSUMPTION 0% 75% 100% 125% 150% 200%
IMPLIED SEASONED CPR 0% 15% 20% 25% 30% 40%
</TABLE>
7
<PAGE> 9
Transaction will be priced at 125% of Assumption
CLASS A-8: Expected Rating (Moodys/S&P) Aaa/AAA;AMBAC Wrap;Legal
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Final 12/04
Avg Life (yrs) 6.78 5.67 5.33 5.02 4.76 4.30
Mod Duration (yrs) 5.31 4.56 4.34 4.13 3.94 3.62
First Pay (mm/yy) 10/00 10/00 10/00 10/00 10/00 10/00
Last Pay (mm/yy) 12/04 10/04 8/04 7/04 2/04 3/03
Avg Life to call (yrs) 6.78 5.67 5.33 5.02 4.76 4.15
Mod Duration to call (yrs) 5.31 4.56 4.34 4.13 3.94 3.52
First Pay to call (mm/yy) 10/00 10/00 10/00 10/00 10/00 10/00
Last Pay to call (mm/yy) 12/04 10/04 8/04 7/04 2/04 6/02
10% call assumption
</TABLE>
************ SEE PAGE 16 FOR DISCLAIMER ************
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE
14 OF 17
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
% OF PREPAYMENT ASSUMPTION 0% 75% 100% 125% 150% 200%
IMPLIED SEASONED CPR 0% 15% 20% 25% 30% 40%
</TABLE>
Transaction will be priced at 125% of Assumption
CLASS A-9: Expected Rating (Moodys/S&P) Aaa/AAA;AMBAC Wrap;Legal
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Final 2/29
Avg Life (yrs) 10.43 7.94 7.69 7.54 7.45 7.02
Mod Duration (yrs) 7.21 5.95 5.81 5.73 5.67 5.39
First Pay (mm/yy) 12/04 10/04 8/04 7/04 2/04 3/03
Last Pay (mm/yy) 7/27 8/25 6/22 6/19 6/17 11/27
Avg Life to call (yrs) 10.41 7.78 7.24 7.00 6.46 4.71
Mod Duration to call (yrs) 7.21 5.87 5.56 5.42 5.08 3.91
First Pay to call (mm/yy) 12/04 10/04 8/04 7/04 2/04 6/02
Last Pay to call (mm/yy) 2/15 12/06 3/05 10/04 3/04 6/02
10% call assumption
</TABLE>
8
<PAGE> 10
************ SEE PAGE 16 FOR DISCLAIMER ************
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE
15 OF 17
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
% OF PREPAYMENT ASSUMPTION 0% 75% 100% 125% 150% 200%
IMPLIED SEASONED CPR 0% 15% 20% 25% 30% 40%
</TABLE>
Transaction will be priced at 125% of Assumption
CLASS A-10: Expected Rating (Moodys/S&P) Aaa/AAA;AMBAC Wrap;Legal
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Final 12/28
Avg Life (yrs) 7.66 4.27 3.59 3.04 2.59 1.91
Mod Duration (yrs) 5.96 3.56 3.04 2.61 2.25 1.71
First Pay (mm/yy) 10/97 10/97 10/97 10/97 10/97 10/97
Last Pay (mm/yy) 5/24 5/24 5/24 5/24 5/24 5/24
Avg Life to call (yrs) 7.52 4.23 3.55 2.99 2.51 1.79
Mod Duration to call (yrs) 5.92 3.53 3.02 2.58 2.20 1.62
First Pay to call (mm/yy) 10/97 10/97 10/97 10/97 10/97 10/97
Last Pay to call (mm/yy) 2/15 12/06 3/05 10/04 3/04 6/02
10% call assumption
</TABLE>
************ SEE PAGE 16 FOR DISCLAIMER ************
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE
16 OF 17
Neither the Issuer of the Certificates nor any of its affiliates make 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 above analysis is not intended to be a
prospectus and any investment decision with respect to the Certificates should
be made by you based solely upon all of the information contained in the final
prospectus. Under no circumstances shall the information presented constitute
9
<PAGE> 11
an offer to sell or the solicitation of an offer to buy nor shall there be any
sale of the securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of such jurisdiction. The securities may not be sold nor may an
offer to buy be accepted prior to the delivery of a final prospectus relating to
the securities. All information described herein is preliminary, limited in
nature and subject to completion or amendment.
(Continued on next page)
EQCC 1997-3 - SALOMON BROTHERS COMPUTATIONAL MATERIALS - PAGE
17 OF 17
No representation is made that the above referenced securities will actually
perform as described in any scenario presented. The Depositors have not
prepared, reviewed or participated in the preparation hereof, are not
responsible for the accuracy hereof and have not authorized the dissemination
hereof.
10
<PAGE> 12
[BEAR STEARNS LETTERHEAD]
EQCC HOME EQUITY LOAN TRUST, SERIES 1997-3: COMPUTATIONAL MATERIALS
FAX TO: DATE:
COMPANY: # PAGES (incl. cover):
FAX NO: PHONE NO:
FROM: PHONE NO:
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION The information contained in the attached materials (the
"Information") may include various forms of performance analysis, security
characteristics and securities pricing estimates for the securities addressed.
Please read and understand this entire statement before utilizing the
Information. The Information is provided solely by Bear Stearns, not as agent
for any issuer, and although it may be based on data supplied to it by an
issuer, the issuer has not participated in its preparation and makes no
representations regarding its accuracy or completeness. Should you receive
Information that refers to the "Statement Regarding Assumptions and Other
Information," please refer to this statement instead.
The Information is illustrative and is not intended to predict actual results
which may differ substantially from those reflected in the Information.
Performance analysis is based on certain assumptions with respect to significant
factors that may prove not to be as assumed. You should understand the
assumptions and evaluate whether they are appropriate for your purposes.
Performance results are based on mathematical models that use inputs to
calculate results. As with all models, results may vary significantly depending
upon the value of the inputs given. Inputs to these models include but are not
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lifetime prepayments or a vector of periodic prepayments), interest rate
assumptions (parallel and nonparallel changes for different maturity
instruments), collateral assumptions (actual pool level data, aggregated pool
level data, reported factors or imputed factors), volatility assumptions
(historically observed or implied current) and reported information (paydown
factors, rate resets, and trustee statements). Models used in any analysis may
be proprietary making the results difficult for any third party to reproduce.
Contact your registered representative for detailed explanations of any modeling
techniques employed in the Information.
The Information addresses only certain aspects of the applicable security's
characteristics and thus does not provide a complete assessment. As such, the
Information may not reflect the impact of all structural characteristics of the
security, including call events and cash flow priorities at all prepayment
speeds and/or interest rates. You should consider whether the behavior of these
securities should be tested as assumptions different from those included in the
Information. The assumptions underlying the Information, including structure and
collateral, may be modified from time to time to reflect changed circumstances.
Any investment decision should be based only on the data in the prospectus and
the prospectus supplement or private placement memorandum (Offering Documents)
and the then current version of the Information. Offering Documents contain data
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Offering Documents, current Information or additional materials, including other
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and any further explanation regarding the Information.
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our view, at the time determined, of the investment value of the securities
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readily ascertainable to produce a hypothetical price based on the estimated
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<PAGE> 13
is being furnished on the condition that it will not form a primary basis for
any investment decision. The Information is not a solicitation of any
transaction in securities which may be made only by prospectus when required by
law, in which event you may obtain such prospectus from Bear Stearns.
<PAGE> 14
COMPUTATIONAL MATERIALS
EQCC HOME EQUITY LOAN TRUST 1997-3
EQUICREDIT ASSET BACKED CERTIFICATES, SERIES 1997-3
$648,425,147 CLASS A SENIOR CERTIFICATES
EQCC RECEIVABLES CORPORATION
EQCC ASSET BACKED CORPORATION
DEPOSITORS
EQUICREDIT CORPORATION OF AMERICA
SERVICER
100% AMBAC GUARANTY
$55,000,000 CLASS A-1 CERTIFICATES [ ]% PASS-THROUGH RATE
$94,400,000 CLASS A-2 CERTIFICATES [ ]% PASS-THROUGH RATE
$86,800,000 CLASS A-3 CERTIFICATES [ ]% PASS-THROUGH RATE
$78,100,000 CLASS A-4 CERTIFICATES [ ]% PASS-THROUGH RATE
$21,700,000 CLASS A-5 CERTIFICATES [ ]% PASS-THROUGH RATE
$55,500,000 CLASS A-6 CERTIFICATES [ ]% PASS-THROUGH RATE
$33,500,000 CLASS A-7 CERTIFICATES [ ]% PASS-THROUGH RATE
$41,000,000 CLASS A-8 CERTIFICATES [ ]% PASS-THROUGH RATE
$34,000,000 CLASS A-9 CERTIFICATES [ ]% PASS-THROUGH RATE
$148,425,147 CLASS A-10 CERTIFICATES ADJUSTABLE RATE
COMPUTATIONAL MATERIALS
Fixed Rate Collateral
TOTAL NUMBER OF LOANS 10,222 LEVEL PAY/BALLOON 60%/40%
TOTAL OUTSTANDING LOAN BALANCE $ 463,431,401 1ST LIEN/2ND LIEN 74%/26%
<TABLE>
<CAPTION>
RANGE % TOTAL # LOANS
<S> <C> <C> <C> <C>
AVG LOAN BALANCE $ 45,336.67 less than or equal to 24,999.99 10.81 2,899
HIGHEST BALANCE $ 336,958.05 25,000 - 49,999.99 31.25 3,988
LOWEST BALANCE $ 4,065.53 50,000 - 74,999.99 25.53 1,972
75,000 - 99,999.99 13.04 706
100,000 - 336,958.05 19.37 657
</TABLE>
<TABLE>
<CAPTION>
RANGE % TOTAL # LOANS
<S> <C> <C> <C> <C>
WTD AVG COUPON 10.88% 7.75% - 9.99% 24.41 1,711
HIGHEST COUPON 17.00% 10.00% - 10.99% 38.35 3,401
LOWEST COUPON 7.75% 11.00% - 11.99% 20.38 2,490
12.00% - 17.00% 16.87 2,620
</TABLE>
<PAGE> 15
<TABLE>
<CAPTION>
RANGE % TOTAL # LOANS
<S> <C> <C> <C> <C>
WTD. AVG ORIG CLTV 78.84% 8.00% - 70.00% 19.77 2,278
HIGHEST CLTV 100.00% 70.01% - 80.00% 33.29 2,950
LOWEST CLTV 8.00% 80.01% - 90.00% 34.76 3,197
90.01% - 100.00% 12.17 1,797
</TABLE>
<TABLE>
<CAPTION>
RANGE LEVEL PAY BALLOON
<S> <C> <C> <C> <C>
WTD AVG ORIGINAL TERM 177.18 24 - 84 0.43% 26.26%
HIGHEST ORIGINAL TERM 360 85 - 120 2.28% 5.88%
LOWEST ORIGINAL TERM 24 121 - 180 37.63% 7.74%
181 - 240 6.38% 0.03%
241 - 360 13.35% 0.00%
</TABLE>
Fixed Rate Collateral (Continued)
<TABLE>
<CAPTION>
RANGE LEVEL PAY BALLOON
<S> <C> <C> <C> <C>
WTD AVG REMAINING TERM 176.76 23 - 84 0.48% 26.28%
HIGHEST REMAINING TERM 360 85 - 120 2.31% 5.87%
LOWEST REMAINING TERM 23 121 - 180 37.56% 7.74%
181 - 240 6.38% 0.03%
241 - 360 13.35% 0.00%
</TABLE>
<TABLE>
<S> <C>
PROPERTY TYPE
SINGLE FAMILY 92.41%
OTHER 7.59%
OCCUPANCY STATUS
PRIMARY RESIDENCE 96.99%
OTHER 3.01%
</TABLE>
GEOGRAPHICS FL 13%, NY 7%, PA 6%, CA 5%, OH 5%
ARM Collateral
TOTAL NUMBER OF LOANS 1,568 LEVEL PAY/BALLOON 5%/95%
TOTAL OUTSTANDING LOAN BALANCE $ 148,425,147 1ST LIEN/2ND LIEN 100%/ 0%
<TABLE>
<CAPTION>
RANGE % TOTAL # LOANS
<S> <C> <C> <C> <C>
AVG LOAN BALANCE $ 94,658.89 less than or equal to 24,999.99 0.04 3
HIGHEST BALANCE $ 350,000.00 25,000 - 49,999.99 4.94 178
LOWEST BALANCE $ 15,000.00 50,000 - 74,999.99 17.44 410
75,000 - 99,999.99 24.87 422
100,000 - 350,000.00 52.71 555
</TABLE>
<TABLE>
<CAPTION>
RANGE % TOTAL # LOANS
<S> <C> <C> <C> <C>
WTD AVG COUPON 7.98% 6.40% - 9.99% 98.11 1,535
HIGHEST COUPON 11.85% 10.00% - 10.99% 0.94 14
LOWEST COUPON 6.40% 11.00% - 11.99% 0.95 19
</TABLE>
<TABLE>
<CAPTION>
RANGE % TOTAL # LOANS
<S> <C> <C> <C> <C>
WTD. AVG ORIG CLTV 82.74% 22.00% - 70.00% 5.78 104
HIGHEST CLTV 97.00% 70.01% - 80.00% 30.50 475
LOWEST CLTV 22.00% 80.01% - 90.00% 55.70 874
90.01% - 97.00% 8.02 115
</TABLE>
<TABLE>
<CAPTION>
RANGE LEVEL PAY BALLOON
<S> <C> <C> <C> <C>
WTD AVG ORIGINAL TERM 101.16 64 - 84 0.00% 85.52%
HIGHEST ORIGINAL TERM 360 85 - 120 0.10% 4.72%
LOWEST ORIGINAL TERM 64 121 - 180 1.71% 4.29%
181 - 240 0.33% 0.00%
241 - 360 3.32% 0.00%
</TABLE>
<PAGE> 16
ARM Collateral (Continued)
<TABLE>
<CAPTION>
RANGE LEVEL PAY BALLOON
<S> <C> <C> <C> <C>
WTD AVG REMAINING TERM 98.92 64 - 84 0.00% 85.52%
HIGHEST REMAINING TERM 360 85 - 120 0.10% 4.72%
LOWEST REMAINING TERM 64 121 - 180 1.71% 4.29%
181 - 240 0.33% 0.00%
241 - 360 3.32% 0.00%
</TABLE>
<TABLE>
<S> <C>
PROPERTY TYPE
SINGLE FAMILY 94.07%
OTHER 5.93%
OCCUPANCY STATUS
PRIMARY RESIDENCE 99.93%
OTHER 0.07%
</TABLE>
GEOGRAPHICS OH 15%, MI 14%, IL 11%, MN 9%, AZ 5%
6 MONTH LIBOR COLLATERAL 100% PERIODIC CAP 1.0%/1.5% 100%/0%
WTD AVG MONTHS TO NEXT RATE ROLL 4.99
<TABLE>
<CAPTION>
RANGE % TOTAL # LOANS
<S> <C> <C> <C> <C>
WTD AVG MARGIN 5.11% 3.40% - 4.99% 50.01 794
HIGHEST MARGIN 9.25% 5.00% - 5.99% 37.97 580
LOWEST MARGIN 3.40% 6.00% - 6.99% 10.64 175
7.00% - 7.99% 1.15 16
8.00% - 9.25% 0.22 3
</TABLE>
<TABLE>
<CAPTION>
RANGE % TOTAL # LOANS
<S> <C> <C> <C> <C>
WTD AVG LIFE CAP 16.93% 14.88% - 15.99% 5.43 85
HIGHEST LIFE CAP 23.22% 16.00% - 16.99% 54.41 858
LOWEST LIFE CAP 14.88% 17.00% - 17.99% 28.90 442
18.00% - 18.99% 9.76 162
19.00% - 23.22% 1.49 21
</TABLE>
ABS Sensitivity Analysis
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
% OF PREPAYMENT ASSUMPTION 0% 75% 100% 125% 150% 200%
IMPLIED SEASONED CPR 0% 15% 20% 25% 30% 40%
</TABLE>
CLASS A-1: EXPECTED RATING (MOODYS/S&P) Aaa/AAA;AMBAC WRAP;LEGAL FINAL 6/03
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
AVG LIFE (YRS) 3.07 0.61 0.52 0.45 0.40 0.33
MOD DURATION (YRS) 2.67 0.58 0.49 0.43 0.38 0.32
FIRST PAY (MM/YY) 10/97 10/97 10/97 10/97 10/97 10/97
LAST PAY (MM/YY) 6/03 10/98 8/98 7/98 6/98 4/98
</TABLE>
CLASS A-2: EXPECTED RATING (MOODYS/S&P) Aaa/AAA;AMBAC WRAP;LEGAL FINAL 10/04
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
AVG LIFE (YRS) 6.80 1.66 1.34 1.15 1.01 0.84
MOD DURATION (YRS) 5.40 1.52 1.25 1.08 0.95 0.79
FIRST PAY (MM/YY) 6/03 10/98 8/98 7/98 6/98 4/98
LAST PAY (MM/YY) 10/04 2/00 8/99 4/99 2/99 11/98
</TABLE>
CLASS A-3: EXPECTED RATING (MOODYS/S&P) Aaa/AAA;AMBAC WRAP;LEGAL FINAL 11/08
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
AVG LIFE (YRS) 9.16 3.11 2.42 2.00 1.71 1.35
MOD DURATION (YRS) 6.75 2.74 2.17 1.82 1.58 1.26
FIRST PAY (MM/YY) 10/04 2/00 8/99 4/99 2/99 11/98
LAST PAY (MM/YY) 11/08 10/01 10/00 3/00 11/99 5/99
</TABLE>
CLASS A-4: EXPECTED RATING (MOODYS/S&P) Aaa/AAA;AMBAC WRAP;LEGAL FINAL 5/12
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
AVG LIFE (YRS) 13.05 5.10 3.83 3.05 2.55 1.94
</TABLE>
<PAGE> 17
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
MOD DURATION (YRS) 8.61 4.21 3.29 2.69 2.28 1.77
FIRST PAY (MM/YY) 11/08 10/01 10/00 3/00 11/99 5/99
LAST PAY (MM/YY) 5/12 3/04 6/02 7/01 10/00 1/00
</TABLE>
CLASS A-5: EXPECTED RATING (MOODYS/S&P) Aaa/AAA;AMBAC WRAP;LEGAL FINAL 9/12
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
AVG LIFE (YRS) 14.90 6.80 5.08 4.00 3.25 2.41
MOD DURATION (YRS) 9.27 5.33 4.19 3.41 2.84 2.16
FIRST PAY (MM/YY) 5/12 3/04 6/02 7/01 10/00 1/00
LAST PAY (MM/YY) 9/12 8/04 3/03 1/02 3/01 4/00
</TABLE>
ABS Sensitivity Analysis (Continued)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
% OF PREPAYMENT ASSUMPTION 0% 75% 100% 125% 150% 200%
IMPLIED SEASONED CPR 0% 15% 20% 25% 30% 40%
</TABLE>
CLASS A-6: EXPECTED RATING (MOODYS/S&P) Aaa/AAA;AMBAC WRAP;LEGAL FINAL 8/21
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
AVG LIFE (YRS) 17.77 8.83 6.87 5.25 4.16 2.91
MOD DURATION (YRS) 10.03 6.44 5.32 4.28 3.51 2.56
FIRST PAY (MM/YY) 9/12 8/04 3/03 1/02 3/01 4/00
LAST PAY (MM/YY) 8/21 12/08 1/07 7/04 10/02 3/01
AVG LIFE TO CALL (YRS) 16.38 8.43 6.64 5.25 4.16 2.91
MOD DURATION TO CALL (YRS) 9.66 6.23 5.19 4.28 3.51 2.56
FIRST PAY TO CALL (MM/YY) 9/12 8/04 3/03 1/02 3/01 4/00
LAST PAY TO CALL (MM/YY) 2/15 12/06 3/05 7/04 10/02 3/01
</TABLE>
CLASS A-7: EXPECTED RATING (MOODYS/S&P) Aaa/AAA;AMBAC WRAP;LEGAL FINAL 2/29
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
AVG LIFE (YRS) 27.25 14.27 12.05 9.92 7.68 4.01
MOD DURATION (YRS) 11.77 8.64 7.78 6.80 5.61 3.37
FIRST PAY (MM/YY) 8/21 12/08 1/07 7/04 10/02 3/01
LAST PAY (MM/YY) 11/27 11/27 11/27 11/27 11/27 7/02
AVG LIFE TO CALL (YRS) 17.38 9.21 7.46 7.00 6.06 4.01
MOD DURATION TO CALL (YRS) 9.73 6.56 5.62 5.35 4.77 3.37
FIRST PAY TO CALL (MM/YY) 2/15 12/06 3/05 7/04 10/02 3/01
LAST PAY TO CALL (MM/YY) 2/15 12/06 3/05 10/04 3/04 6/02
</TABLE>
CLASS A-8: EXPECTED RATING (MOODYS/S&P) Aaa/AAA;AMBAC WRAP;LEGAL FINAL 12/04
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
AVG LIFE (YRS) 6.78 5.67 5.33 5.02 4.76 4.30
MOD DURATION (YRS) 5.31 4.56 4.34 4.13 3.94 3.62
FIRST PAY (MM/YY) 10/00 10/00 10/00 10/00 10/00 10/00
LAST PAY (MM/YY) 12/04 10/04 8/04 7/04 2/04 3/03
AVG LIFE TO CALL (YRS) 6.78 5.67 5.33 5.02 4.76 4.15
MOD DURATION TO CALL (YRS) 5.31 4.56 4.34 4.13 3.94 3.52
FIRST PAY TO CALL (MM/YY) 10/00 10/00 10/00 10/00 10/00 10/00
LAST PAY TO CALL (MM/YY) 12/04 10/04 8/04 7/04 2/04 6/02
10% CALL ASSUMPTION
</TABLE>
ABS Sensitivity Analysis (Continued)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
% OF PREPAYMENT ASSUMPTION 0% 75% 100% 125% 150% 200%
IMPLIED SEASONED CPR 0% 15% 20% 25% 30% 40%
</TABLE>
CLASS A-9: EXPECTED RATING (MOODYS/S&P) Aaa/AAA;AMBAC WRAP;LEGAL FINAL 2/29
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
AVG LIFE (YRS) 10.43 7.94 7.69 7.54 7.45 7.02
MOD DURATION (YRS) 7.21 5.95 5.81 5.73 5.67 5.39
FIRST PAY (MM/YY) 12/04 10/04 8/04 7/04 2/04 3/03
LAST PAY (MM/YY) 7/27 8/25 6/22 6/19 6/17 11/27
AVG LIFE TO CALL (YRS) 10.41 7.78 7.24 7.00 6.46 4.71
MOD DURATION TO CALL (YRS) 7.21 5.87 5.56 5.42 5.08 3.91
FIRST PAY TO CALL (MM/YY) 12/04 10/04 8/04 7/04 2/04 6/02
</TABLE>
<PAGE> 18
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
LAST PAY TO CALL (MM/YY) 2/15 12/06 3/05 10/04 3/04 6/02
10% CALL ASSUMPTION 0% 15% 20% 25% 30% 40%
CPR
</TABLE>
CLASS A-10: EXPECTED RATING (MOODYS/S&P) Aaa/AAA;AMBAC WRAP;LEGAL FINAL 12/28
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
AVG LIFE (YRS) 7.66 4.27 3.59 3.04 2.59 1.91
MOD DURATION (YRS) 5.96 3.56 3.04 2.61 2.25 1.71
FIRST PAY (MM/YY) 10/97 10/97 10/97 10/97 10/97 10/97
LAST PAY (MM/YY) 5/24 5/24 5/24 5/24 5/24 5/24
AVG LIFE TO CALL (YRS) 7.52 4.23 3.55 2.99 2.51 1.79
MOD DURATION TO CALL (YRS) 5.92 3.53 3.02 2.58 2.20 1.62
FIRST PAY TO CALL (MM/YY) 10/97 10/97 10/97 10/97 10/97 10/97
LAST PAY TO CALL (MM/YY) 2/15 12/06 3/05 10/04 3/04 6/02
10% CALL ASSUMPTION
</TABLE>
