<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: December 24, 1998
(Date of earliest event reported)
MORTGAGE CAPITAL FUNDING, INC.
------------------------------
(Sponsor)
(Issuer in Respect of
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC3)
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
Delaware 333-24489 13-3408716
------------------------ ----------- ------------------
(STATE OR OTHER JURIS- (COMMISSION (I.R.S. EMPLOYER
DICTION OF ORGANIZATION) FILE NO.) IDENTIFICATION NO.)
399 Park Avenue, New York, New York 10043
----------------------------------- -----
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
Registrant's Telephone Number, including area code (212) 559-6899
--------------
-------------------------------------------------------------
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
<PAGE>
Item 5. Other Events.
MORTGAGE CAPITAL FUNDING, INC.
Multifamily/Commercial Mortgage Pass-Through Certificates,
Series 1998-MC3
---------
Attached as Exhibit 99.1 are the Computational Materials (as defined in
the no-action letter dated May 20, 1994 issued by the Securities and Exchange
Commission to Kidder, Peabody Acceptance Corporation-I, Kidder, Peabody & Co.
Incorporated and Kidder Structured Asset Corporation) and/or ABS Term
Sheets (as defined in the no-action letter dated February 17, 1995 issued by
the Securities and Exchange Commission to the Public Securities Association)
prepared by Salomon Smith Barney Inc. that are required to be filed pursuant to
such letters.
2
<PAGE>
Item 7. Financial Statements and Exhibits
(a) Not applicable
(b) Not applicable
(c) Exhibits
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
99.1 Computational Materials/ABS Term Sheets prepared by
Salomon Smith Barney Inc.
3
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MORTGAGE CAPITAL FUNDING, INC.
(Registrant)
By: /s/ Richard L. Jarocki, Jr.
---------------------------
Richard L. Jarocki, Jr.
President
Dated: December 24, 1998
4
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
- -------------------------------------------------------------------------------
THIS TERM SHEET CONTAINS REVISED INFORMATION CONCERNING CERTIFICATE
PASS-THROUGH RATES, WHICH YOU SHOULD REVIEW CAREFULLY.
MORTGAGE CAPITAL FUNDING, INC.
MULTIFAMILY / COMMERCIAL MORTGAGE PASS-THROUGH
CERTIFICATES, SERIES 1998-MC3
CLASSES A-1, A-2, B, C, D, E & X
$805,992,000 (APPROXIMATE)
-------------
CMBS NEW ISSUE TERM SHEET
-------------
DECEMBER 23, 1998
SALOMON SMITH BARNEY
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Contacts:
Salomon Smith Barney Citicorp
<S> <C> <C> <C> <C> <C>
TRADING TRADING
- ------- -------
Paul Vanderslice (212) 783-3659 (212) 783-4109 Jeff Sturdevant (212) 291-3320 (212) 291-3687
Jeff Lewis (212) 783-3659 (212) 783-4109
FINANCE FINANCE
- ------- -------
David Tibbals (212) 783-7171 (212) 783-2096 Richard Jarocki (212) 559-0217 (212) 793-5602
Angela Hutzel (212) 783-5664 (212) 783-2096 Mark Horinbein (212) 559-0216 (212) 793-5602
Joseph Siragusa (212) 783-8542 (212) 783-2096
ANALYTICS ANALYTICS
- --------- ---------
Tony Lupo (212) 783-5838 (212) 783-2096 Nancy Wilt (212) 291-3320 (212) 291-3687
Bruce Bernard (212) 783-1873 (212) 783-2096
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Salomon Smith Barney Inc. and not by the
issuer of the securities. Salomon Smith Barney Inc. is not acting as agent for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
MORTGAGE CAPITAL FUNDING, INC.
MULTIFAMILY / COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1998-MC3
CLASSES A-1, A-2, B, C, D, E & X
$805,992,000 (APPROXIMATE)
COLLATERAL FACTS
<TABLE>
- ------------------------------------------------------------------------------
<S> <C> <C>
INITIAL POOL BALANCE: $908,161,006
NUMBER OF MORTGAGE LOANS: 232
NUMBER OF PROPERTIES 265
AVERAGE LOAN CUT-OFF DATE BALANCE: $3,914,487
AVERAGE PROPERTY CUT-OFF DATE BALANCE: $3,427,023
WEIGHTED AVERAGE CURRENT MORTGAGE RATE(A): 7.507% (6.35% - 10.00%)
WEIGHTED AVERAGE REMAINING AMORTIZATION TERM: 316 mos.
WEIGHTED AVERAGE U/W NCF DSCR (B): 1.39x (1.16x - 4.73x)
WEIGHTED AVERAGE CUT-OFF DATE LTV RATIO: 70.13% (21.23 %- 82.22%)
WEIGHTED AVERAGE REMAINING TERM TO SCHEDULED 110 mos. (36 mos. - 119 mos.)
MATURITY/ARD(C):
WEIGHTED AVERAGE SEASONING: 8 mos.
WEIGHTED AVERAGE PREPAYMENT RESTRICTION 105 mos.
</TABLE>
- ------------------------------------------------------------------------------
(a) Gross Coupon.
(b) U/W NCF DSCR is the ratio of Underwritten Net Cash Flow over the
annualized debt service payments.
(c) Anticipated Repayment Date for loans that provide for such a date. All
information presented herein with respect to ARD Loans assumes that they
mature on their respective Anticipated Repayment Dates.
KEY FEATURES
<TABLE>
- -------------------------------------------------------------------------------
<S> <C>
Issuer: Mortgage Capital Funding, Inc.
Sole Manager: Salomon Smith Barney Inc.
Mortgage Loan Sellers: Citicorp Real Estate, Inc. (42.47% of Initial Pool Balance) and
Salomon Brothers Realty Corp.(57.53% of Initial Pool Balance)
Master Servicer: Amresco Services, L.P.
Special Servicer: Allied Capital Corp.
Purchaser of Classes H, J, K, L Allied Capital Corp.
Trustee/Fiscal Agent: LaSalle National Bank/ABN AMRO Bank N.V.
Pricing: On or about December 21,1998
Closing: On or about December 29, 1998
Settlement: On or about December 30, 1998
Cut-off Date: December 1,1998
Distribution Date: 18th of each month, or following business day (commencing in
January 1999)
ERISA Eligible: Classes A1, A2 and X are ERISA eligible under the individual
underwriters' prohibited transaction exemptions, subject to certain
conditions for eligibility
Representations & Warranties: Provided by applicable Mortgage Loan Sellers
Structure: Sequential pay
Interest Accrual Period: With respect to any Distribution Date, the calendar month preceding
the month in which such Distribution Date occurs.
Day Count: 30/360
Tax Treatment: REMIC
Rated Final Distribution Date: November 18, 2031
Clean up Call: 1.0%
Minimum Denominations: Publicly Offered Classes except Class X: $10,000 & $1
Class X: $1,000,000 Notional Amount & $1
Deal Information/Analytics It is anticipated that certain Mortgage Loan and Certificate
information will be available from the following services:
Bloomberg, Intex, Charter Research, and The Trepp Group.
</TABLE>
- ------------------------------------------------------------------------------
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Salomon Smith Barney Inc. and not by the
issuer of the securities. Salomon Smith Barney Inc. is not acting as agent for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
MORTGAGE CAPITAL FUNDING, INC.
MULTIFAMILY / COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1998-MC3
CLASSES A-1, A-2, B, C, D, E & X
$805,992,000 (APPROXIMATE)
THIS TERM SHEET CONTAINS REVISED INFORMATION CONCERNING CERTIFICATE
PASS-THROUGH RATES, WHICH YOU SHOULD REVIEW CAREFULLY.
APPROXIMATE SECURITIES STRUCTURE
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
RATING CREDIT CLASS APPROX. COUPON
CLASS (MOODY'S/S&P)(A) SUPPORT % SIZE DESCRIPTION (D) COUPON PRICE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Publicly Offered
Classes:
X Aaa/AAAr $908,161,005(c) Variable Rate 5.74
A1 Aaa/AAA 30.50% 23.62% $214,494,000 Fixed Rate 6.001 100.50
A2 Aaa/AAA 30.50% 45.88% $416,677,000 Fixed Rate 6.337 101.50
B Aa2/AA 26.00% 4.50% $ 40,867,000 Fixed Rate 6.540 101.50
C A2/A 21.25% 4.75% $ 43,138,000 Fixed Rate 6.788 101.50
D Baa2/BBB 14.50% 6.75% $ 61,301,000 WAC 7.355 98.23
E Baa3/NR 11.25% 3.25% $ 29,515,000 WAC 7.355 90.70
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------------------------------
PRINCIPAL
RATING WTD AVERAGE SMMEA ERISA PAYMENT
CLASS (MOODY'S/S&P)(A) LIFE(YRS.) DELIVERY ELIGIBLE ELIGIBLE WINDOW (B)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Publicly Offered
Classes:
X Aaa/AAAr DTC N/A Yes
A1 Aaa/AAA 5.50 DTC N/A Yes 01/99-09/07
A2 Aaa/AAA 9.26 DTC N/A Yes 09/07-07/08
B Aa2/AA 9.55 DTC N/A N/A 07/08-07/08
C A2/A 9.55 DTC N/A N/A 07/08-07/08
D Baa2/BBB 9.62 DTC N/A N/A 07/08-09/08
E Baa3/NR 9.72 DTC N/A N/A 09/08-09/08
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
RATING CREDIT CLASS APPROX. COUPON
CLASS (MOODY'S/S&P)(A) SUPPORT % SIZE DESCRIPTION (D) COUPON PRICE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Privately Placed Classes
(144A eligible):
F NOT OFFERED HEREBY
G NOT OFFERED HEREBY
H NOT OFFERED HEREBY
J NOT OFFERED HEREBY
K NOT OFFERED HEREBY
L NOT OFFERED HEREBY
Total Securities $908,161,005
- --------------------------------------------------------------------------------------------------------
</TABLE>
(a) Ratings shown are those of Moody's and S&P, respectively. Classes marked
"NR" will not be rated by the applicable Rating Agency.
(b) Calculated at 0% CPR, no balloon extension and ARD Loans pay in full on
Anticipated Repayment Dates.
(c) Notional amount.
(d) The Pass-Through Rates shown for the Class A-1, Class A-2, Class B, Class
C, Class D and Class E Certificates are the Pass-Through Rates applicable
for distributions in January 1999. Thereafter, the Pass-Through Rates for
the Class A-1, Class A-2, Class B and Class C Certificates will equal the
lesser of the fixed Pass-Through Rates shown in such table and the
Weighted Average Mortgage Pass-Through Rate for the related Distribution
Date. The Pass-Through Rates for the Class D and Class E Certificates will
equal the Weighted Average Mortgage Pass-Through Rate for the related
Distribution Date.
STRUCTURAL OVERVIEW
[GRAPHIC OMITTED]
[BAR GRAPHIC]
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Salomon Smith Barney Inc. and not by the
issuer of the securities. Salomon Smith Barney Inc. is not acting as agent for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
MORTGAGE CAPITAL FUNDING, INC.
MULTIFAMILY / COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1998-MC3
CLASSES A-1, A-2, B, C, D, E & X
$805,992,000 (APPROXIMATE)
STRUCTURAL OVERVIEW - CONT.
o The Mortgage Pool will be comprised of one Loan Group
-- Principal will be paid sequentially to Class A1, A2, B, C, D, E, F,
G, H, J, K and L Certificates (If principal balances of all such
Classes other than Classes A1 and A2 have reduced to zero, principal
will be allocated to Class A1 and A2 pro-rata)
o Class X will receive interest payments pro-rata (based on interest
entitlements) with the Class A1 and Class A2 Certificates each month
o Each of the Classes (except Class X) will be subordinate to earlier
alphabetically lettered classes (Losses will be allocated in reverse
alphabetical order to Classes with certificate balances and pro-rata to
Classes A1 and A2)
o The Master Servicer will cover net prepayment interest shortfalls, up to
the portion of the Master Servicing Fee equal to 0.06% per annum. Net
shortfalls (after application of prepayment interest excesses and other
Servicer coverage from the Master Servicing Fee) will be allocated in
reverse alphabetical order to the interest-bearing Certificates (other
than the Class A1, Class A2 and Class X) and then pro-rata (based on
interest entitlements) to the Class A1, Class A2 and Class X Certificates
o All Classes will pay interest on a 30/360 basis
o Shortfalls resulting from Master Servicer and Special Servicer
modifications, Special Servicer compensation or other extraordinary trust
fund expenses will be allocated in reverse alphabetical order to Classes
with certificate balances (in the case of the Class A1 and Class A2
Certificates, pro rata based on certificate balances)
o IO protected with regard to loan modifications and waivers that reduce
Mortgage Rate
MORTGAGE POOL OVERVIEW
- ------------------------------------------------------------------------------
o The Mortgage Pool is comprised of 232 multifamily and commercial loans
with an aggregate Cut-off Date Balance of approximately $908,161,006
o All of the Mortgage Loans are secured by first mortgage liens on
multifamily and commercial properties
o The Mortgage Pool's average Cut-off Date Balance is approximately $3,914,487
o The Mortgage Pool's weighted average current Underwritten NCF Debt
Service Coverage Ratio is 1.39x (a)
o The Mortgage Pool's Cut-off Date LTV is 70.13%
o The Mortgage Pool's weighted average Mortgage Rate is approximately 7.507%
per annum
(a) Underwritten NCF Debt Service Coverage Ratio is the ratio of Underwritten
NCF over the annualized debt service payments.
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Salomon Smith Barney Inc. and not by the
issuer of the securities. Salomon Smith Barney Inc. is not acting as agent for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
MORTGAGE CAPITAL FUNDING, INC.
MULTIFAMILY / COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1998-MC3
CLASSES A-1, A-2, B, C, D, E & X
$805,992,000 (APPROXIMATE)
PREPAYMENT RESTRICTIONS
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
--------------------------------------------------
NUMBER OF AGGREGATE % OF U/W CUT-OFF DATE
MORTGAGE CUT-OFF DATE INITIAL MAXIMUM CUT-OFF MORTGAGE STATED REMAIN. NCF LOAN-TO-VALUE
PREPAYMENT RESTRICTIONS LOANS BALANCE POOL DATE BALANCE RATE TERM (MO.) DSCR RATIO
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
greater than of YM or 1% 4 $4,977,246 0.55% $2,348,322 8.503% 107 1.29x 73.13%
Lockout greater than
of YM or 1% 115 $501,768,716 55.25% $65,804,538 7.584% 109 1.35x 70.63%
Lockout/Declining Fee 6 $7,538,864 0.83% $ 2,542,442 7.355% 109 1.75x 56.12%
Lockout/Defeasance 38 $172,644,038 19.01% $13,979,720 7.210% 116 1.42x 71.62%
Lockout/YM 66 $206,866,274 22.78% $13,933,312 7.384% 114 1.46x 68.46%
greater than of YM or
1%/Declining Fee 3 $14,365,867 1.58% $6,712,570 9.850% 36 1.33x 65.10%
- -----------------------------------------------------------------------------------------------------------------------------------
TOTALS 232 $908,161,006 100.00% 7.507% 110 1.39x 70.13%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
PREPAYMENT RESTRICTIONS BY MORTGAGE RATE
<TABLE>
<CAPTION>
WEIGHTED AVERAGES % BY CUT-OFF DATE BALANCE OF MORTGAGE LOANS
--------------------------------------------------------------------------------
LOCKOUT GREATER OF
NUMBER THEN 1%/YLD.
OF AGGREGATE % OF STATED GREATER OF GREATER OF LOCKOUT LOCKOUT LOCKOUT MAINT.
MORTGAGE CUT-OFF DATE INITIAL MORTGAGE REMAIN. 1%/YLD. 1%/YLD. THEN THEN THEN THEN
MORTGAGE RATE LOANS BALANCE POOL RATE TERM (MO.) MAINT. MAINT. DECLINING DEFEASANCE MAINT. DECLINING
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0.00% to 6.99% 11 $66,304,389 7.30% 6.807% 114 0.00 3.36 0.54 2.85 0.55 0.00
7.00% to 7.49% 101 $508,056,084 55.94% 7.217% 115 0.00 25.41 0.00 14.65 15.88 0.00
7.50% to 7.99% 59 $194,496,256 21.42% 7.633% 107 0.00 13.42 0.14 1.51 6.35 0.00
8.00% to 8.49% 23 $56,912,828 6.27% 8.149% 108 0.14 6.12 0.00 0.00 0.00 0.00
8.50% to 8.99% 22 $38,441,991 4.23% 8.651% 95 0.40 3.68 0.15 0.00 0.00 0.00
9.00% to 9.49% 11 $21,555,714 2.37% 9.125% 100 0.00 2.37 0.00 0.00 0.00 0.00
9.50% to 9.99% 4 $17,473,104 1.92% 9.854% 46 0.00 0.34 0.00 0.00 0.00 1.58
10.00% to10.49% 1 $4,920,639 0.54% 10.000% 91 0.00 0.54 0.00 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
TOTALS 232 $908,161,006 100.00% 7.507% 110 0.55 55.25 0.83 19.01 22.78 1.58
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
PREPAYMENT RESTRICTION ANALYSIS (A) (B)
<TABLE>
<CAPTION>
PREPAYMENT RESTRICTIONS
(MONTHS SINCE CUT-OFF DATE) 0 12 24 36 48 60 72 84 96 108
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
REMAINING BALANCE (C) 100.00% 98.77% 97.46% 94.49% 92.96% 89.53% 87.79% 85.26% 82.44% 68.40%
LOCKED/DEFEASANCE 97.87% 97.87% 92.10% 78.88% 20.16% 19.65% 19.65% 19.64% 19.82% 23.25%
YIELD MAINTENANCE 0.55% 0.55% 6.02% 20.83% 77.61% 79.50% 79.06% 79.66% 77.84% 45.19%
5% PREMIUM 0.00% 0.00% 0.15% 0.15% 0.00% 0.55% 0.00% 0.00% 0.00% 0.00%
4% PREMIUM 0.00% 0.00% 0.14% 0.00% 0.15% 0.15% 0.54% 0.00% 0.00% 0.00%
3% PREMIUM 1.58% 0.00% 0.00% 0.15% 0.00% 0.00% 0.15% 0.70% 0.00% 0.00%
2% PREMIUM 0.00% 1.59% 0.00% 0.00% 0.15% 0.00% 0.00% 0.00% 0.70% 0.00%
1% PREMIUM 0.00% 0.00% 1.59% 0.00% 0.00% 0.15% 0.00% 0.00% 0.00% 0.69%
OPEN 0.00% 0.00% 0.00% 0.00% 1.94% 0.00% 0.59% 0.00% 1.64% 30.86%
REMAINING BALANCE $908.16 $896.97 $885.05 $858.10 $844.25 $813.07 $797.24 $774.29 $748.68 $621.21
($ MILLIONS)
% OF INITIAL BALANCE 100.00% 98.77% 97.46% 94.49% 92.96% 89.53% 87.79% 85.26% 82.44% 68.40%
</TABLE>
(a) Table calculated using modeling assumptions and assuming 0% CPR and all
ARD Loans are paid in full on their respective Anticipated Repayment
Dates.
(b) All numbers, unless otherwise noted, are as a percentage of the aggregate
mortgage loan pool balance at the specified point in time.
(c) Remaining aggregate mortgage loan pool balance as a percentage of Initial
Pool Balance at the specified point in time.
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Salomon Smith Barney Inc. and not by the
issuer of the securities. Salomon Smith Barney Inc. is not acting as agent for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
MORTGAGE CAPITAL FUNDING, INC.
MULTIFAMILY / COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1998-MC3
CLASSES A-1, A-2, B, C, D, E & X
$805,992,000 (APPROXIMATE)
ALLOCATION OF PREPAYMENT PENALTIES
- -------------------------------------------------------------------------------
ALLOCATION OF PREPAYMENT PREMIUMS
Prepayment premiums will be allocated between the Publicly Offered Certificates
then entitled to principal distributions and the Class X Certificates as
follows:
o A percentage of all prepayment premiums (either fixed prepayment
premiums or yield maintenance amount) will be allocated to each class
of the Publicly Offered Certificates then entitled to principal
distributions, which percentage will be equal to the product of (a)
the percentage of the total principal distribution that such Class
receives, and (b) a fraction (expressed as a percentage which can be
no greater than 100%), the numerator of which is the excess of the
Pass-Through Rate of such Class of the Publicly Offered Certificates
currently receiving principal over the relevant Discount Rate, and
the denominator of which is the excess of the Mortgage Rate of the
related Mortgage Loan over the Discount Rate.
---------------------------------------------------------------------
Prepayment (Pass-Through Rate - Discount Rate)
Premium Allocation = -----------------------------------
Percentage (Mortgage Rate - Discount Rate)
---------------------------------------------------------------------
o The remaining percentage of the Prepayment Premiums will be
allocated to the Class X Certificates
o In general, this formula provides for an increase in the allocation
of Prepayment Premiums to the Publicly Offered Certificates then
entitled to principal distributions relative to the Class X
Certificates as Discount Rates decrease and a decrease in the
allocation to such Classes as Discount Rates rise
Allocation of Prepayment Premiums Example
Discount Rate Fraction Methodology:
Mortgage Rate = 9%
Bond Class Rate = 7%
Treasury Rate = 6%
BOND CLASS ALLOCATION CLASS X ALLOCATION
--------------------- ------------------
7% - 6%
------- = 33 1/3% Receives excess premiums = 66 2/3% thereof
9% - 6%
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Salomon Smith Barney Inc. and not by the
issuer of the securities. Salomon Smith Barney Inc. is not acting as agent for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
MORTGAGE CAPITAL FUNDING, INC.
MULTIFAMILY / COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1998-MC3
CLASSES A-1, A-2, B, C, D, E & X
$805,992,000 (APPROXIMATE)
DISTRIBUTION OF CUT-OFF DATE BALANCES
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
------------------------------------------------
NUMBER OF AGGREGATE % OF CUM. % U/W CUT-OFF
MORTGAGE CUT-OFF DATE INITIAL OF INITIAL MORTGAGE STATED REMAIN. NCF DATE LOAN-
CUT-OFF DATE BALANCE LOANS BALANCE POOL POOL RATE TERM (MO.) DSCR TO-VALUE RATIO
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$0 to $999,999 17 $13,127,113 1.45% 1.45% 8.165% 109 1.34x 71.80%
$1,000,000 to $2,499,999 95 $160,575,474 17.68% 19.13% 7.772% 109 1.39x 68.56%
$2,500,000 to $4,999,999 79 $291,748,695 32.13% 51.25% 7.619% 111 1.41x 70.06%
$5,000,000 to $7,499,999 25 $150,993,800 16.63% 67.88% 7.564% 106 1.46x 68.82%
$7,500,000 to $9,999,999 5 $40,990,392 4.51% 72.39% 7.437% 113 1.55x 68.53%
$10,000,000 to $14,999,999 5 $62,121,008 6.84% 79.23% 7.318% 104 1.32x 71.47%
$15,000,000 to $74,999,999 6 $188,604,524 20.77% 100.00% 7.093% 115 1.29x 72.42%
- ------------------------------------------------------------------------------------------------------------------------------
TOTALS 232 $908,161,006 100.00% 7.507% 110 1.39x 70.13%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Salomon Smith Barney Inc. and not by the
issuer of the securities. Salomon Smith Barney Inc. is not acting as agent for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
MORTGAGE CAPITAL FUNDING, INC.
MULTIFAMILY / COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1998-MC3
CLASSES A-1, A-2, B, C, D, E & X
$805,992,000 (APPROXIMATE)
GEOGRAPHIC DISTRIBUTION BY CUT-OFF DATE BALANCE
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
------------------------------------------
CUT-OFF
NUMBER OF AGGREGATE % OF CUM. % STATED U/W DATE
MORTGAGED CUT-OFF DATE INITIAL OF INITIAL MORTGAGE REMAIN. TERM NCF LOAN-TO-VALUE
STATES PROPERTIES BALANCE POOL POOL RATE (MO.) DSCR RATIO
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CA 26 $98,195,075 10.81% 10.81% 7.256% 114 1.45x 68.35%
NY 29 $97,916,411 10.78% 21.59% 7.354% 112 1.54x 70.71%
FL 27 $92,949,769 10.23% 31.83% 7.717% 110 1.39x 71.01%
GA 17 $80,799,194 8.90% 40.73% 7.632% 102 1.32x 70.26%
NJ 13 $47,738,084 5.26% 45.98% 7.542% 101 1.36x 72.09%
MD 12 $43,914,576 4.84% 50.82% 7.909% 110 1.33x 67.55%
TX 17 $40,482,704 4.46% 55.28% 7.806% 101 1.37x 71.24%
VA 18 $35,741,941 3.94% 59.21% 7.352% 113 1.36x 69.82%
TN 11 $34,144,612 3.76% 62.97% 7.362% 114 1.42x 71.88%
MA 5 $30,716,607 3.38% 66.35% 7.299% 113 1.34x 61.92%
MS 5 $26,159,960 2.88% 69.23% 7.315% 115 1.36x 73.14%
MO 4 $25,711,486 2.83% 72.07% 7.228% 114 1.31x 69.50%
OH 9 $24,486,911 2.70% 74.76% 7.471% 115 1.32x 70.75%
DC 2 $22,750,914 2.51% 77.27% 6.851% 110 1.22x 77.08%
PA 3 $19,632,279 2.16% 79.43% 7.332% 112 1.18x 77.13%
WA 6 $16,546,390 1.82% 81.25% 7.665% 110 1.42x 66.29%
WV 4 $15,418,378 1.70% 82.95% 7.792% 114 1.36x 72.38%
IL 6 $15,392,495 1.69% 84.64% 7.322% 114 1.32x 68.54%
LA 3 $13,709,279 1.51% 86.15% 7.288% 115 1.58x 67.57%
UT 7 $13,526,719 1.49% 87.64% 7.810% 111 1.38x 70.07%
AZ 5 $13,510,370 1.49% 89.13% 8.035% 108 1.41x 64.83%
CO 6 $13,267,506 1.46% 90.59% 7.511% 112 1.45x 66.36%
CT 3 $11,869,150 1.31% 91.90% 7.187% 113 1.31x 78.79%
IA 3 $11,673,228 1.29% 93.18% 7.456% 110 1.38x 71.42%
NV 5 $9,966,188 1.10% 94.28% 8.412% 103 1.43x 64.62%
MI 2 $9,943,116 1.09% 95.38% 7.477% 115 1.36x 73.19%
DE 1 $7,488,705 0.82% 96.20% 7.200% 109 1.38x 73.78%
SC 3 $7,161,490 0.79% 96.99% 7.908% 112 1.43x 69.51%
RI 2 $5,382,196 0.59% 97.58% 8.193% 110 1.44x 73.17%
KS 1 $4,341,062 0.48% 98.06% 7.450% 117 1.31x 74.85%
NC 1 $3,775,647 0.42% 98.48% 7.420% 114 1.53x 72.61%
ID 2 $3,483,567 0.38% 98.86% 7.938% 107 1.41x 63.10%
WI 2 $3,253,042 0.36% 99.22% 8.000% 107 1.57x 60.24%
MN 1 $1,758,533 0.19% 99.41% 8.625% 106 1.49x 62.80%
ND 1 $1,486,039 0.16% 99.57% 7.875% 107 1.30x 67.55%
IN 1 $1,478,124 0.16% 99.74% 7.750% 116 1.74x 64.27%
WY 1 $1,280,190 0.14% 99.88% 7.650% 78 1.25x 58.86%
NM 1 $1,109,072 0.12% 100.00% 7.375% 112 1.25x 50.99%
- ------------------------------------------------------------------------------------------------------------------------
Totals 265 $908,161,006 100.00% 7.507% 110 1.39x 70.13%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Salomon Smith Barney Inc. and not by the
issuer of the securities. Salomon Smith Barney Inc. is not acting as agent for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
MORTGAGE CAPITAL FUNDING, INC.
MULTIFAMILY / COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1998-MC3
CLASSES A-1, A-2, B, C, D, E & X
$805,992,000 (APPROXIMATE)
DISTRIBUTION BY CUT-OFF DATE BALANCE
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[MAP OF AMERICA]
WA 1.8% ND 0.2% WI 0.4% PA 2.2% RI 0.6% AZ 1.5%
ID 0.4% KS 0.5% IL 1.7% VA 3.9% CT 1.3% MI 1.1%
NV 1.1% TX 4.5% TN 3.8% NC 0.4% NJ 5.3% IN 0.2%
CA 10.8% MN 0.2% MS 2.9% SC 0.8% DE 0.8%
WY 0.1% IA 1.3% OH 2.7% GA 8.9% MD 4.8%
CO 1.5% MO 2.8% WVA 1.7% FL 10.2% DC 2.5%
NM 0.1% LA 1.5% NY 10.8% MA 3.4% UT 1.5%
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[PIE CHART]
California 10.8%
New York 10.8%
Florida 10.2%
Georgia 8.9%
New Jersey 5.3%
Maryland 4.8%
Texas 4.5%
Virginia 3.9%
Tennessee 3.8%
Massachusetts 3.4%
Other 33.6%
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Salomon Smith Barney Inc. and not by the
issuer of the securities. Salomon Smith Barney Inc. is not acting as agent for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
MORTGAGE CAPITAL FUNDING, INC.
MULTIFAMILY / COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1998-MC3
CLASSES A-1, A-2, B, C, D, E & X
$805,992,000 (APPROXIMATE)
PROPERTY TYPE DISTRIBUTION BY CUT-OFF DATE BALANCE
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
------------------------------------------
NUMBER OF AGGREGATE % OF MAXIMUM U/W CUT-OFF DATE
MORTGAGED CUT-OFF DATE INITIAL CUT-OFF DATE MORTGAGE STATED REMAIN. NCF LOAN-TO-VALUE
PROPERTY TYPES PROPERTIES BALANCE POOL BALANCE RATE TERM (MO.) DSCR RATIO
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Anchored Retail 34 $217,773,052 23.98% $39,862,084 7.300% 113 1.31x 73.00%
Office 47 $167,246,897 18.42% 21,067,759 7.349% 113 1.37x 69.42%
Hotel 37 $146,144,543 16.09% 7,931,838 7.587% 113 1.47x 67.61%
Multi-family 47 $140,563,364 15.48% 13,979,720 7.635% 104 1.33x 74.16%
Industrial 35 $104,129,598 11.47% 11,000,000 7.490% 106 1.41x 70.92%
Retail 45 $69,640,363 7.67% 4,702,414 7.994% 108 1.43x 67.47%
Mixed Use 9 $34,467,696 3.80% 6,288,362 7.398% 113 1.48x 58.44%
Mobile Home Park 6 $13,979,680 1.54% 4,616,425 7.249% 111 1.32x 71.07%
Office/Retail 3 $9,432,009 1.04% 4,920,639 9.205% 96 1.38x 62.85%
Health Care 1 $2,781,052 0.31% 2,781,052 7.610% 116 4.73x 21.23%
Other 1 $2,002,751 0.22% 2,002,751 7.700% 114 1.31x 66.76%
- --------------------------------------------------------------------------------------------------------------------------
TOTALS 265 $908,161,006 100.00% 7.507% 110 1.39x 70.13%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
UNDERWRITTEN NCF DSCR
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
-----------------------------------------
NUMBER OF AGGREGATE % OF CUM. %
MORTGAGE CUT-OFF DATE INITIAL OF INITIAL MORTGAGED STATED REMAIN. U/W NCF LOAN TO CUT-OFF
U/W NCF DSCR LOANS BALANCE POOL POOL RATE TERM (MO.) DSCR DATE VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1.10 - 1.19 9 $54,611,358 6.01% 6.01 7.311% 110 1.18x 74.50%
1.20 - 1.29 59 $242,685,793 26.72% 32.74 7.422% 112 1.25x 71.65%
1.30 - 1.39 76 $301,221,045 33.17% 65.90 7.628% 108 1.35x 72.46%
1.40 - 1.49 43 $161,650,761 17.80% 83.70 7.603% 108 1.44x 69.18%
1.50 - 1.59 21 $65,084,333 7.17% 90.87 7.423% 113 1.54x 67.97%
1.60 - 1.69 13 $41,427,871 4.56% 95.43 7.503% 112 1.65x 66.11%
1.70 - 1.79 5 $17,030,896 1.88% 97.31 7.374% 112 1.73x 60.96%
1.80 - 1.99 2 $8,830,804 0.97% 98.28 6.887% 115 1.82x 43.94%
2.00 - 2.99 3 $12,837,093 1.41% 99.69 6.910% 116 2.24x 44.82%
3.00 - 4.79 1 $2,781,052 0.31% 100.00 7.610% 116 4.73x 21.23%
- --------------------------------------------------------------------------------------------------------------------------
232 $908,161,006 100.00% 7.507% 110 1.39x 70.13%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Salomon Smith Barney Inc. and not by the
issuer of the securities. Salomon Smith Barney Inc. is not acting as agent for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
MORTGAGE CAPITAL FUNDING, INC.
MULTIFAMILY / COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1998-MC3
CLASSES A-1, A-2, B, C, D, E & X
$805,992,000 (APPROXIMATE)
o Weighted Average Current U/W NCF Debt Service Coverage Ratio: 1.39x
CUT-OFF DATE LOAN TO VALUE
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
NUMBER ---------------------------------------------------
OF AGGREGATE % OF CUM. % STATED U/W CUT-OFF DATE
MORTGAGE CUT-OFF DATE INITIAL OF INITIAL MORTGAGE REMAIN. NCF LOAN-TO-VALUE
LTV LOANS BALANCE POOL POOL RATE TERM (MO.) DSCR RATIO (A)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
0.00% to 24.99% 1 $2,781,052 0.31% 0.31% 7.610% 116 4.73x 21.23%
25.00% to 49.99% 7 $23,619,180 2.60% 2.91% 7.240% 114 1.91x 43.27%
50.00% to 59.99% 19 $78,761,377 8.67% 11.58% 7.599% 110 1.47x 56.43%
60.00% to 64.99% 29 $88,972,633 9.80% 21.38% 8.088% 103 1.40x 63.23%
65.00% to 69.99% 41 $119,800,160 13.19% 34.57% 7.778% 107 1.40x 67.71%
70.00% to 74.99% 94 $373,362,915 41.11% 75.68% 7.428% 111 1.35x 72.83%
75.00% to 79.99% 39 $217,932,819 24.00% 99.68% 7.250% 113 1.31x 78.00%
80.00% to 89.99% 2 $2,930,869 0.32% 100.00% 7.438% 115 1.24x 81.54%
- ---------------------------------------------------------------------------------------------------------------------------
TOTALS 232 $908,161,006 100.00% 7.507% 110 1.39x 70.13%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Ratio of Cut-off Date Principal Balance to most recent Appraised Value
o Weighted Average Cut-off Date Loan-to-Value Ratio: 70.13%
MORTGAGE RATES
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
NUMBER ---------------------------------------------------
OF AGGREGATE % OF CUM. % STATED U/W CUT-OFF DATE
MORTGAGE CUT-OFF DATE INITIAL OF INITIAL MORTGAGE REMAIN. NCF LOAN-TO-VALUE
MORTGAGE RATES LOANS BALANCE POOL POOL BALANCE RATE TERM (MO.) DSCR RATIO
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
0.00% to 6.99% 11 $66,304,389 7.30% 7.30% 6.807% 114 1.55x 64.90%
7.00% to 7.49% 101 $508,056,084 55.94% 63.24% 7.217% 115 1.36x 72.00%
7.50% to 7.99% 59 $194,496,256 21.42% 84.66% 7.633% 107 1.42x 69.07%
8.00% to 8.49% 23 $56,912,828 6.27% 90.93% 8.149% 108 1.38x 69.85%
8.50% to 8.99% 22 $38,441,991 4.23% 95.16% 8.651% 95 1.37x 67.93%
9.00% to 9.49% 11 $21,555,714 2.37% 97.53% 9.125% 100 1.35x 62.63%
9.50% to 9.99% 4 $17,473,104 1.92% 99.46% 9.854% 46 1.36x 65.03%
10.00% to 10.49% 1 $4,920,639 0.54% 100.00% 10.000% 91 1.38x 61.43%
- ---------------------------------------------------------------------------------------------------------------------------
TOTALS 232 $908,161,006 100.00% 7.507% 110 1.39x 70.13%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
<PAGE>
This material is furnished to you by Salomon Smith Barney Inc. and not by the
issuer of the securities. Salomon Smith Barney Inc. is not acting as agent for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
INFORMATION IN THIS TERM SHEET, WHETHER REGARDING THE ASSETS BACKING ANY
SECURITIES DISCUSSED HEREIN OR OTHERWISE, WILL BE SUPERSEDED BY THE INFORMATION
CONTAINED IN ANY FINAL PROSPECTUS FOR ANY SECURITIES ACTUALLY SOLD TO YOU.
AMORTIZATION CHARACTERISTICS
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
-----------------------------------------
CUT-OFF
DATE
NUMBER OF AGGREGATE % OF MAXIMUM STATED U/W LOAN-TO-
MORTGAGE CUT-OFF DATE INITIAL CUT-OFF DATE MORTGAGE REMAIN. NCF VALUE
LOAN TYPE LOANS BALANCE POOL BALANCE RATE TERM (MO.) DSCR RATIO
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Amortizing Balloon 228 $811,802,820 89.39% $48,831,053 7.555% 110 1.41x 69.86%
Amortizing ARD 2 $83,220,541 9.16% $65,804,538 7.042% 117 1.22x 73.06%
Interest Only ARD 1 $11,000,000 1.21% $11,000,000 7.510% 58 1.43x 72.37%
Fully Amortizing 1 $2,137,645 0.24% $2,137,645 7.180% 115 1.55x 46.47%
- ----------------------------------------------------------------------------------------------------------------------
TOTALS 232 $908,161,006 100.00% 7.507% 110 1.39x 70.13%
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
REMAINING TERM TO MATURITY (IN MONTHS) (A)
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
----------------------------------------------------
NUMBER OF AGGREGATE % OF CUM. % STATED U/W CUTOFF DATE
MORTGAGE CUT-OFF DATE INITIAL OF INITIAL MORTGAGE REMAIN. TERM NCF LOAN-TO-VALUE
REMAINING TERM LOANS BALANCE POOL POOL RATE (MO.) DSCR RATIO
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
36 to 47 3 $14,365,867 1.58% 1.58% 9.850% 36 1.33x 65.10%
48 to 59 2 $16,781,540 1.85% 3.43% 7.894% 55 1.41x 72.33%
72 to 83 3 $6,445,445 0.71% 4.14% 7.629% 78 1.26x 69.66%
84 to 95 2 $8,027,876 0.88% 5.02% 9.952% 91 1.41x 62.71%
96 to 107 50 $113,378,923 12.48% 17.51% 8.300% 104 1.35x 70.50%
108 to 119 172 $749,161,355 82.49% 100.00% 7.306% 114 1.40x 70.21%
- -----------------------------------------------------------------------------------------------------------------------------------
TOTALS 232 $908,161,006 100.00% 7.507% 110 1.39x 70.13%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) "Maturity" means the stated maturity date or, with respect to any
ARD Loan, its Anticipated Repayment Date.
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Salomon Smith Barney Inc. and not by the
issuer of the securities. Salomon Smith Barney Inc. is not acting as agent for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
