<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 15, 1998
(Date of earliest event reported)
MORTGAGE CAPITAL FUNDING, INC.
------------------------------
(Sponsor)
(Issuer in Respect of
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2)
(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 I 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 Structural 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 Citibank, N.A. and 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
- ----------- -----------
I Computational Materials/Structural Term Sheets prepared by
Citibank, N.A. and 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 17, 1998
4
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
FORMATION 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
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
(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
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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.
C-2
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
FORMATION 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)
- --------------------------------------------------------------------------------
APPROXIMATE SECURITIES STRUCTURE
- ---------------------------------------------------------------------------
RATING
(MOODY'S/
S&P) CREDIT CLASS APPROX. COUPON
CLASS (A) SUPPORT % SIZE DESCRIPTION COUPON
- ---------------------------------------------------------------------------
Publicly Offered
Classes:
X Aaa/AAAr $908,161,005(c) Variable Rate
A1 Aaa/AAA 30.50% 23.62% $214,494,000 Fixed Rate
A2 Aaa/AAA 30.50% 45.88% $416,677,000 Fixed Rate
B Aa2/AA 26.00% 4.50% $40,867,000 Fixed Rate
C A2/A 21.25% 4.75% $43,138,000 Fixed Rate
D Baa2/BBB 14.50% 6.75% $61,301,000 WAC
E Baa3/NR 11.25% 3.25% $29,515,000 WAC
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 $908,161,005
Securities
- ---------------------------------------------------------------------------
APPROXIMATE SECURITIES STRUCTURE
- -----------------------------------------------------------------
WTD
AVERAGE PRINCIPAL
LIFE SMMEA ERISA PAYMENT
SPREAD PRICE (YRS.) DELIVERY ELIGIBLE ELIGIBLE WINDOW (B)
- -----------------------------------------------------------------
7.11 DTC N/A Yes
100.50 5.50 DTC N/A Yes 01/99-09/07
101.50 9.26 DTC N/A Yes 09/07-07/08
101.50 9.55 DTC N/A N/A 07/08-07/08
101.50 9.55 DTC N/A N/A 07/08-07/08
100.50 9.62 DTC N/A N/A 07/08-09/08
92.22 9.72 DTC N/A N/A 09/08-09/08
- -----------------------------------------------------------------
- -----------------------------------------------------------------
(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.
STRUCTURAL OVERVIEW
[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.]
[BAR GRAPH]
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.
C-3
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
FORMATION 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
o 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.
C-4
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
FORMATION 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
---------------------------------------------
% OF CUT-OFF
NUMBER OF AGGREGATE INITIAL MAXIMUM STATED U/W DATE
MORTGAGE CUT-OFF DATE POOL CUT-OFF DATE MORTGAGE REMAIN. NCF LOAN-TO-VALUE
PREPAYMENT RESTRICTIONS LOANS BALANCE BALANCE BALANCE RATE TERM (MO.) DSCR RATIO
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
> of YM or 1% 4 $4,977,246 0.55% $2,348,322 8.503% 107 1.29x 73.13%
Lockout/> 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%
> of YM or 3 $14,365,867 1.58% $6,712,570 9.850% 36 1.33x 65.10%
1%/Declining Fee
- -----------------------------------------------------------------------------------------------------------------------------
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
% BY THEN GREATER OF
NUMBER AGGREGATE STATED GREATER GREATER LOCKOUT 1%/YLD.
OF AGGREGATE CUT-OFF REMAIN. OF OF LOCKOUT LOCKOUT THEN MAINT.
MORTGAGE CUT-OFF DATE DATE MORTGAGE TERM 1%/YLD. 1%/YLD. THEN THEN YLD. THEN
MORTGAGE RATE LOANS BALANCE BALANCE RATE (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% to 10.49% 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) (C)
<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 (1) 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%
BALANCE $908.2 $896.97 $885.05 $858.10 $844.25 $813.07 $797.24 $774.29 $748.68 $621.21
% 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) Totals may not equal 100% due to rounding.
(c) All numbers, unless otherwise noted, are as a percentage of the aggregate
mortgage loan pool balance at the specified point in time.
(1) 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.
C-5
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
FORMATION 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.
C-6
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
FORMATION 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
------------------------------------------------
% OF CUM. % CUT-OFF
NUMBER OF AGGREGATE INITIAL OF INITIAL STATED U/W DATE
MORTGAGE CUT-OFF POOL POOL MORTGAGE REMAIN. NCF LOAN-TO-VALUE
CUT-OFF DATE BALANCE LOANS DATE BALANCE BALANCE BALANCE RATE TERM (MO.) DSCR 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.
C-7
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
FORMATION 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
--------------------------------------------
LOAN TO
% OF CUM. % CUT-OFF
NUMBER OF AGGREGATE INITIAL OF INITIAL STATED U/W DATE
MORTGAGED CUT-OFF DATE POOL POOL MORTGAGE REMAIN. TERM NCF VALUE
STATES PROPERTIES BALANCE BALANCE BALANCE 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.
C-8
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
FORMATION 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
[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%
PERCENTAGES MAY NOT SUM TO 100% DUE TO ROUNDING
- --------------------------------------------------------------------------------
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.
C-9
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
FORMATION 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
------------------------------------------
% OF CUT-OFF
NUMBER OF AGGREGATE INITIAL MAXIMUM STATED U/W DATE
MORTGAGED CUT-OFF DATE POOL CUT-OFF DATE MORTGAGE REMAIN. NCF LOAN-TO-VALUE
PROPERTY TYPES PROPERTIES BALANCE BALANCE 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>
(a) May not add up due to rounding
(b) May not sum to 100 % due to rounding
[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]
Office/Retail 1.0%
Health Care 0.3%
Other 0.2%
Anchored Retail 24.0%
Office 18.4%
Hotel 16.1%
Multi-family 15.5%
Industrial 11.5%
Retail 7.7%
Mixed Use 3.8%
Mobile Home Park 1.5%
- --------------------------------------------------------------------------------
Percentages may not sum to 100% due to rounding
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.
C-10
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
FORMATION 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)
- --------------------------------------------------------------------------------
UNDERWRITTEN NCF DSCR
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
-------------------------------------------
AGGREGATE % OF CUM. % OF
NUMBER OF CUT-OFF INITIAL INITIAL STATED LOAN TO
MORTGAGE DATE POOL (B) POOL MORTGAGE REMAIN. U/W NCF CUT-OFF
U/W NCF DSCR LOANS BALANCE (A) BALANCE BALANCE 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>
(a) May not add up due to rounding
(b) May not sum to 100% due to rounding
o Weighted Average Current U/W NCF Debt Service Coverage Ratio: 1.39x
CUT-OFF DATE LOAN TO VALUE
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
----------------------------------------------
CUT-OFF
AGGREGATE % OF CUM. % OF DATE
NUMBER OF CUT-OFF INITIAL INITIAL STATED LOAN-TO-
MORTGAGE DATE POOL POOL MORTGAGE REMAIN. U/W NCF VALUE
LTV LOANS BALANCE BALANCE(B) BALANCE 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
(b) May not add up due to rounding
(c) May not sum to 100% due to rounding.
o Weighted Average Cut-off Date Loan-to-Value Ratio: 70.13%
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.
C-11
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
FORMATION 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)
- --------------------------------------------------------------------------------
MORTGAGE RATES
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
----------------------------------------------
CUT-OFF
AGGREGATE % OF CUM. % OF DATE
NUMBER OF CUT-OFF INITIAL INITIAL STATED LOAN-TO-
MORTGAGE DATE POOL POOL MORTGAGE REMAIN. U/W NCF VALUE
MORTGAGE RATES LOANS BALANCE BALANCE BALANCE RATE TERM (MO.) DSCR RATIO(A)
- ---------------------------------------------------------------------------------------------------------------
<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>
(a) May not add up due to rounding
(b) May not sum to 100% due to rounding.
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.
C-12
<PAGE>
INFORMATION IN THIS MATERIAL REGARDING ANY ASSETS BACKING ANY SECURITIES
DISCUSSED HEREIN SUPERSEDES ALL PRIOR INFORMATION REGARDING SUCH ASSETS. ALL
FORMATION 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)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMORTIZATION CHARACTERISTICS
WEIGHTED AVERAGES
--------------------------------------------
% OF CUT-OFF
NUMBER OF AGGREGATE INITIAL MAXIMUM STATED U/W DATE
MORTGAGE CUT-OFF DATE POOL CUT-OFF DATE MORTGAGE REMAIN. NCF LOAN-TO-VALUE
LOAN TYPE LOANS BALANCE BALANCE 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>
(a) Column total may not add up due to rounding.
(b) May not sum to 100% due to rounding
<TABLE>
<CAPTION>
REMAINING TERM TO MATURITY (IN MONTHS) (A)
WEIGHTED AVERAGES
----------------------------------------------------
% OF CUM. %
NUMBER OF AGGREGATE INITIAL OF INITIAL STATED U/W CUTOFF DATE
MORTGAGE CUT-OFF DATE POOL POOL MORTGAGE REMAIN. TERM NCF LOAN-TO-VALUE
REMAINING TERM LOANS BALANCE BALANCE BALANCE 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.
(b) Column total may not add up due to rounding.
(c) May not sum to 100% due to rounding
<PAGE>
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.
C-13
