SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported): August 25, 1997
BEAR STEARNS ASSET BACKED SECURITIES, INC. (as depositor
under the Sale and Servicing Agreement, dated
as of September 1, 1997, providing for the issuance
of Life Financial Home Loan Owner Trust 1997-2,
Loan Asset Backed Notes)
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(Exact name of Registrant as specified in its charter)
Delaware 333-26051 13-3836437
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
245 Park Avenue
New York, NY 10167
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(Address of Principal (ZIP Code)
Executive Offices)
Registrant's telephone number, including area code: (212) 272-4095
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Item 5. Other Events.
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Filing of Structural Term Sheets, Computational Materials and Collateral
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Terms Sheets
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In connection with the offering of Life Financial Home Loan Owner Trust
1997-2, Loan Asset Backed Notes (the "NOTES"), Bear, Stearns & Co. Inc., as
underwriter (the "UNDERWRITER") of the Notes, has prepared certain structural
terms sheets ("STRUCTURAL TERM SHEETS") related computational materials
("COMPUTATIONAL MATERIALS") and related collateral term sheets ("COLLATERAL
TERM SHEETS") for distribution to potential investors. Although the
Registrant provided the Underwriter certain information regarding the
characteristics of the assets in the related portfolio of home loans, the
Registrant did not participate in the preparation of the Structural Term
Sheets, Computational Materials or Collateral Term Sheets. Prior to or
concurrently with the filing hereof, pursuant to Rule S-T of Regulation 202,
the Registrant is filing the Collateral Term Sheets and Computational
Materials by paper filing on Form SE in reliance on a continuing hardship
exemption.
Item 7. Financial Statements, Pro Forma Financial
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Information and Exhibits.
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(a) Not applicable.
(b) Not applicable.
(c) Exhibits:
99.1 Collateral Term Sheets for Life Financial
Home Loan Owner Trust 1997-2, Loan Asset
Backed Notes.
99.2 Computational Materials for Life Financial
Home Loan Owner Trust 1997-2, Loan Asset
Backed Notes.
99.3 Structural Term Sheet for Life Financial
Home Loan Owner Trust 1997-2, Loan Asset
Backed Notes.
SIGNATURES
Filings Made by the Registrant. The registrant has duly caused this form
to be signed on its behalf by the undersigned, thereunto duly authorized, in
The City of New York, on August 27, 1997.
BEAR STEARNS ASSET BACKED
SECURITIES, INC.
By: /s/ William J. Montgoris
--------------------------------
William J. Montgoris
Executive Vice President and
Treasurer
IN ACCORDANCE WITH RULE 202 OF REGULATION S-T, THESE COLLATERAL TERMS SHEETS
ARE BEING FILED IN PAPER PURSUANT TO A CONTINUING
HARDSHIP EXEMPTION.
Exhibit 99.1
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COLLATERAL TERM SHEETS
for
BEAR STEARNS ASSET BACKED SECURITIES, INC.
Life Financial Home Loan Owner Trust 1997-2,
Loan Asset Backed Notes
IN ACCORDANCE WITH RULE 202 OF REGULATION S-T, THESE COLLATERAL TERMS SHEETS
ARE BEING FILED IN PAPER PURSUANT TO A CONTINUING
HARDSHIP EXEMPTION.
Exhibit 99.2
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COMPUTATIONAL MATERIALS
for
BEAR, STEARNS ASSET BACKED SECURITIES, INC.
Life Financial Home Loan Owner Trust 1997-2,
Loan Asset Backed Notes
Exhibit 99.3
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STRUCTURAL TERM SHEETS
for
BEAR STEARNS ASSET BACKED SECURITIES, INC.
Life Financial Home Loan Owner Trust 1997-2,
Loan Asset Backed Notes
$123,750,000
LIFE FINANCIAL HOME LOAN OWNER TRUST 1997-2
LIFE BANK
Servicer
COMPUTATIONAL MATERIALS
The following 17 pages only may be distributed to
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potential purchasers.
The Computational Materials form MUST accompany
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every Computational Materials package.
Computational Materials
The information contained in the attached materials is referred to as
the "Information".
The attached Information has been prepared by Life Bank ("Life").
Neither Bear, Stearns & Co. Inc. ("Bear") nor any of its affiliates makes any
representation as to the accuracy or completeness of the Information herein.
The Information contained herein is preliminary and will be superseded by the
applicable prospectus supplement and by any other information subsequently
filed with the Securities and Exchange Commission.
The Information contained herein will be superseded by the description
of the collateral pool contained in the prospectus supplement relating to the
securities.
The Information addresses only certain aspects of the applicable
security's characteristics and thus does not provide a complete assessment.
As such, the Information may not reflect the impact of all structural
characteristics of the security. The assumptions underlying the Information,
including structure and collateral, may be modified from time to time to
reflect changed circumstances.
Although a registration statement (including the prospectus) relating to
the securities discussed in this communication has been filed with the
Securities and Exchange Commission and is effective, the final prospectus
supplement relating to the securities discussed in this communication has not
been filed with the Securities and Exchange Commission. This communication
shall not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities discussed in this communication
in any state in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such
state. Prospective purchasers are referred to the final prospectus and
prospectus supplement relating to the securities discussed in this
communication for definitive information on any matter discussed in this
communication. Any investment decision should be based only on the data in
the prospectus and the prospectus supplement ("Offering Documents") and the
then current version of the Information. Offering Documents contain data
that is current as of their publication dates and after publication may no
longer be complete or current. A final prospectus and prospectus supplement
may be obtained by contacting the Bear Trading Desk at (212) 272-4955.
General Information: The data underlying the Information has been
obtained from sources that we believe are reliable, but we do not guarantee
the accuracy of the underlying data or computations based thereon. Bear
Stearns and/or individuals thereof may have positions in these securities
while the Information is circulating or during such period may engage in
transactions with the issuer or its affiliates. We act as principal in
transactions with you, and accordingly, you must determine the
appropriateness for you of such transactions and address any legal, tax or
accounting considerations applicable to you. Bear Stearns shall not be a
fiduciary or advisor unless we have agreed in writing to receive compensation
specifically to act in such capacities. If you are subject to ERISA, the
Information is being furnished on the condition that it will not form a
primary basis for any investment decision. The Information is not a
solicitation of any transaction in securities which may be made only by
prospectus when required by law, in which event you may obtain such
prospectus from Bear Stearns by calling the telephone number listed above.
LIFE FINANCIAL HOME LOAN OWNER TRUST 1997-2
Computational Materials: Information Relating to the Notes (page 1 of 4)
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TRANSACTION SUMMARY
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<TABLE>
<CAPTION>
Estimated Estimated Estimated Estimated
WAL Modified Principal Principal Expected
Approximate to Maturity Duration Lockout Window Ratings
Notes Size Coupon (Years) (Years) (Months) (Months) (Moody's / Fitch)
<S> <C> <C> <C> <C> <C> <C> <C>
Class A-1 $ 29,390,000 Fixed 1.01 0.95 none 21 Aaa / AAA
Class A-2 $ 32,110,000 Fixed 3.00 2.64 20 31 Aaa / AAA
Class A-3 $ 11,710,000 Fixed 5.00 4.12 50 25 Aaa / AAA
Class A-4 $ 16,510,000 Fixed 10.97 7.15 74 187 Aaa / AAA
Class M-1 $ 13,610,000 Fixed 10.09 6.69 60 188 Aa2 / AA
Class M-2 $ 11,140,000 Fixed 10.07 6.63 60 176 A2 / A
Class B $ 9,280,000 Fixed 10.02 6.51 60 163 Baa3 / BBB
</TABLE>
<TABLE>
<CAPTION>
Class A-1 (to maturity)
<S> <C> <C> <C> <C> <C> <C>
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
Ramp to 0% 6% 9% 12% 15% 18%
Average Life (years) 3.66 1.41 1.15 1.01 0.92 0.85
Modified Duration (years) 3.03 1.30 1.08 0.95 0.87 0.81
First Principal Payment 10/25/97 10/25/97 10/25/97 10/25/97 10/25/97 10/25/97
Last Principal Payment 6/25/05 7/25/00 11/25/99 6/25/99 3/25/99 1/25/99
Principal Lockout (months) none none none none none none
Principal Window (months) 93 34 26 21 18 16
Illustrative Yield @ Par (30/360) 6.456% 6.265% 6.197% 6.142% 6.098% 6.061%
</TABLE>
<TABLE>
<CAPTION>
Class A-2 (to maturity)
<S> <C> <C> <C> <C> <C> <C>
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
Ramp to 0% 6% 9% 12% 15% 18%
Average Life (years) 10.55 4.91 3.72 3.00 2.53 2.19
Modified Duration (years) 7.37 4.05 3.19 2.64 2.26 1.98
First Principal Payment 6/25/05 7/25/00 11/25/99 6/25/99 3/25/99 1/25/99
Last Principal Payment 5/25/10 9/25/04 1/25/03 12/25/01 4/25/01 10/25/00
Principal Lockout (months) 92 33 25 20 17 15
Principal Window (months) 60 51 39 31 26 22
Illustrative Yield @ Par (30/360) 6.673% 6.624% 6.594% 6.565% 6.537% 6.510%
</TABLE>
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This information should be considered only after reading Bear Stearns'
Statement Regarding Assumptions as to Securities, Pricing Estimates and Other
Information (the "Statement"), which should be attached. Do not use or rely
on this information if you have not received and reviewed this Statement.
You may obtain a copy of the Statement from your sales representative.
LIFE FINANCIAL HOME LOAN OWNER TRUST 1997-2
Computational Materials: Information Relating to the Notes (page 2 of 4)
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<TABLE>
<CAPTION>
Class A-3 (to maturity)
<S> <C> <C> <C> <C> <C> <C>
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
Ramp to 0% 6% 9% 12% 15% 18%
Average Life (years) 13.44 8.02 6.21 5.00 4.17 3.58
Modified Duration (years) 8.55 6.00 4.91 4.12 3.53 3.09
First Principal Payment 5/25/10 9/25/04 1/25/03 12/25/01 4/25/01 10/25/00
Last Principal Payment 3/25/12 6/25/07 5/25/05 12/25/03 11/25/02 2/25/02
Principal Lockout (months) 151 83 63 50 42 36
Principal Window (months) 23 34 29 25 20 17
Illustrative Yield @ Par (30/360) 6.926% 6.903% 6.886% 6.868% 6.850% 6.831%
</TABLE>
<TABLE>
<CAPTION>
Class A-4 (to maturity)
<S> <C> <C> <C> <C> <C> <C>
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
Ramp to 0% 6% 9% 12% 15% 18%
Average Life (years) 18.59 14.55 12.65 10.97 9.55 8.39
Modified Duration (years) 9.83 8.58 7.86 7.15 6.49 5.91
First Principal Payment 3/25/12 6/25/07 5/25/05 12/25/03 11/25/02 2/25/02
Last Principal Payment 6/25/22 11/25/21 1/25/21 6/25/19 7/25/17 3/25/16
Principal Lockout (months) 173 116 91 74 61 52
Principal Window (months) 124 174 189 187 177 170
Illustrative Yield @ Par (30/360) 7.383% 7.376% 7.371% 7.364% 7.358% 7.350%
</TABLE>
<TABLE>
<CAPTION>
Class M-1 (to maturity)
<S> <C> <C> <C> <C> <C> <C>
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
Ramp to 0% 6% 9% 12% 15% 18%
Average Life (years) 17.86 13.65 11.72 10.09 8.76 7.67
Modified Duration (years) 9.55 8.18 7.41 6.69 6.04 5.48
First Principal Payment 4/25/11 11/25/05 1/25/04 10/25/02 12/25/01 5/25/01
Last Principal Payment 5/25/22 7/25/21 4/25/20 5/25/18 9/25/16 6/25/15
Principal Lockout (months) 162 97 75 60 50 43
Principal Window (months) 134 189 196 188 178 170
Illustrative Yield @ Par (30/360) 7.484% 7.475% 7.469% 7.462% 7.454% 7.446%
</TABLE>
This information should be considered only after reading Bear Stearns'
Statement Regarding Assumptions as to Securities, Pricing Estimates and Other
Information (the "Statement"), which should be attached. Do not use or rely
on this information if you have not received and reviewed this Statement.
You may obtain a copy of the Statement from your sales representative.
LIFE FINANCIAL HOME LOAN OWNER TRUST 1997-2
Computational Materials: Information Relating to the Notes (page 3 of 4)
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<TABLE>
<CAPTION>
Class M-2 (to maturity)
<S> <C> <C> <C> <C> <C> <C>
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
Ramp to 0% 6% 9% 12% 15% 18%
Average Life (years) 17.86 13.63 11.69 10.07 8.74 7.65
Modified Duration (years) 9.45 8.10 7.34 6.63 6.00 5.44
First Principal Payment 4/25/11 11/25/05 1/25/04 10/25/02 12/25/01 5/25/01
Last Principal Payment 4/25/22 12/25/20 4/25/19 5/25/17 1/25/16 7/25/14
Principal Lockout (months) 162 97 75 60 50 43
Principal Window (months) 133 182 184 176 170 159
Illustrative Yield @ Par (30/360) 7.637% 7.628% 7.622% 7.614% 7.606% 7.598%
</TABLE>
<TABLE>
<CAPTION>
Class B (to maturity)
<S> <C> <C> <C> <C> <C> <C>
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
Ramp to 0% 6% 9% 12% 15% 18%
Average Life (years) 17.84 13.56 11.64 10.02 8.68 7.59
Modified Duration (years) 9.22 7.93 7.20 6.51 5.89 5.35
First Principal Payment 4/25/11 11/25/05 1/25/04 10/25/02 12/25/01 5/25/01
Last Principal Payment 1/25/22 11/25/19 9/25/17 4/25/16 11/25/14 3/25/13
Principal Lockout (months) 162 97 75 60 50 43
Principal Window (months) 130 169 165 163 156 143
Illustrative Yield @ Par (30/360) 7.984% 7.975% 7.968% 7.961% 7.952% 7.943%
</TABLE>
<TABLE>
<CAPTION>
**Class A-4 (to 10% clean-up call)
<S> <C> <C> <C> <C> <C> <C>
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
Ramp to 0% 6% 9% 12% 15% 18%
Average Life (years) 18.02 13.91 11.93 10.28 8.86 7.69
Modified Duration (years) 9.72 8.43 7.66 6.93 6.25 5.64
First Principal Payment 3/25/12 6/25/07 5/25/05 12/25/03 11/25/02 2/25/02
Last Principal Payment 3/25/18 8/25/14 7/25/12 1/25/11 6/25/09 1/25/08
Principal Lockout (months) 173 116 91 74 61 52
Principal Window (months) 73 87 87 86 80 72
Illustrative Yield @ Par (30/360) 7.382% 7.375% 7.369%` 7.362% 7.355% 7.346%
</TABLE>
This information should be considered only after reading Bear Stearns'
Statement Regarding Assumptions as to Securities, Pricing Estimates and Other
Information (the "Statement"), which should be attached. Do not use or rely
on this information if you have not received and reviewed this Statement.
You may obtain a copy of the Statement from your sales representative.
LIFE FINANCIAL HOME LOAN OWNER TRUST 1997-2
Computational Materials: Information Relating to the Notes (page 4 of 4)
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<TABLE>
<CAPTION>
** CLASS M-1 (TO 10% CLEAN-UP CALL)
<S> <C> <C> <C> <C> <C> <C>
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
Ramp to 0% 6% 9% 12% 15% 18%
Average Life (years) 17.38 13.12 11.13 9.54 8.19 7.11
Modified Duration (years) 9.46 8.05 7.25 6.51 5.84 5.26
First Principal Payment 4/25/11 11/25/05 1/25/04 10/25/02 12/25/01 5/25/01
Last Principal Payment 3/25/18 8/25/14 7/25/12 1/25/11 6/25/09 1/25/08
Principal Lockout (months) 162 97 75 60 50 43
Principal Window (months) 84 106 103 100 91 81
Illustrative Yield @ Par (30/360) 7.483% 7.474% 7.468% 7.460% 7.451% 7.442%
</TABLE>
<TABLE>
<CAPTION>
** Class M-2 (to 10% clean-up call)
<S> <C> <C> <C> <C> <C> <C>
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
Ramp to 0% 6% 9% 12% 15% 18%
Average Life (years) 17.38 13.12 11.13 9.54 8.19 7.11
Modified Duration (years) 9.36 7.98 7.19 6.47 5.81 5.23
First Principal Payment 4/25/11 11/25/05 1/25/04 10/25/02 12/25/01 5/25/01
Last Principal Payment 3/25/18 8/25/14 7/25/12 1/25/11 6/25/09 1/25/08
Principal Lockout (months) 162 97 75 60 50 43
Principal Window (months) 84 106 103 100 91 81
Illustrative Yield @ Par (30/360) 7.637% 7.627% 7.620% 7.613% 7.604% 7.594%
</TABLE>
<TABLE>
<CAPTION>
** CLASS B (TO 10% CLEAN-UP CALL)
<S> <C> <C> <C> <C> <C> <C>
% of Prepayment Assumption 0% 50% 75% 100% 125% 150%
Ramp to 0% 6% 9% 12% 15% 18%
Average Life (years) 17.38 13.12 11.13 9.54 8.19 7.11
Modified Duration (years) 9.14 7.83 7.06 6.37 5.72 5.16
First Principal Payment 4/25/11 11/25/05 1/25/04 10/25/02 12/25/01 5/25/01
Last Principal Payment 3/25/18 8/25/14 7/25/12 1/25/11 6/25/09 1/25/08
Principal Lockout (months) 162 97 75 60 50 43
Principal Window (months) 84 106 103 100 91 81
Illustrative Yield @ Par (30/360) 7.984% 7.974% 7.967% 7.959% 7.950% 7.940%
</TABLE>
This information should be considered only after reading Bear Stearns'
Statement Regarding Assumptions as to Securities, Pricing Estimates and Other
Information (the "Statement"), which should be attached. Do not use or rely
on this information if you have not received and reviewed this Statement.
You may obtain a copy of the Statement from your sales representative.
LIFE FINANCIAL HOME LOAN OWNER TRUST 1997-2
Computational Materials: Information Relating to the Collateral
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HOME LOANS
Preliminary characteristics of the Initial Home Loans as of the Statistical
Calculation Date of 8/11/97:
This information should be considered only after reading Bear Stearns'
Statement Regarding Assumptions as to Securities, Pricing Estimates and Other
Information (the "Statement"), which should be attached. Do not use or rely
on this information if you have not received and reviewed this Statement.
You may obtain a copy of the Statement from your sales representative.
