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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): October 27, 1998
BEAR STEARNS ASSET BACKED SECURITIES, INC.
(Exact name of registrant as specified in its charter)
Delaware 333-49015 13-3836437
- ---------------------------- ------------ -------------------
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
245 Park Avenue
New York, New York 10167
--------------------- ----------
(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code (212) 272-4095
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<PAGE>
Item 5. Other Events.
- ---- ------------
Filing of Computational Materials
- ---------------------------------
In connection with the proposed offering of the Irwin Home Equity Trust
1998-2 Home Equity Asset Backed Certificates, Series 1998-2 (the "Class A
Certificates"), Bear, Stearns & Co. Inc., as the underwriter (the
"Underwriter"), has prepared certain materials (the "Computational Materials")
for distribution to their potential investors. Although Bear Stearns Asset
Backed Securities, Inc. (the "Company") provided the Underwriter with certain
information regarding the characteristics of the mortgage loans (the "Mortgage
Loans") in the related portfolio, the Company did not participate in the
preparation of the Computational Materials.
For purposes of this Form 8-K, Computational Materials shall mean the
Series 1998-2 term sheet, computer generated tables and/or charts displaying,
with respect to the Class A Certificates, any of the following: yield; average
life; duration, expected maturity; interest rate sensitivity; loss
sensitivity; cash flow characteristics; background information regarding the
Mortgage Loans; the proposed structure; decrement tables; or similar
information (tabular or otherwise) of a statistical, mathematical, tabular or
computational nature. The Computational Materials are attached hereto as
Exhibit 99.1.
<PAGE>
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits.
------------------------
(a) Not applicable.
(b) Not applicable.
(c) Exhibits:
99.1 The Computational Materials, filed on Form 8-K dated October 27,
1998.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
BEAR STEARNS ASSET BACKED
SECURITIES, INC.
By: ______________________________
/s/ Jonathan Lieberman
Jonathan Lieberman
Vice President
Dated: October 28, 1998
<PAGE>
Exhibit Index
-------------
Exhibit Page
- ------- ----
99.1 The Computational Materials, filed on Form 8-K
dated October 27, 1998
Exhibit 99.1
BEAR STEARNS BEAR STEARNS & CO. INC.
ATLANTA o BOSTON o CHICAGO Asset-Backed Securities Group
DALLAS o DC o LOS ANGELES 245 Park Avenue
o NEW YORK o SAN FRANCISCO New York, New York 10167
FRANKFORT o GENEVA o HONG KONG (212) 272-2000;
LONDON o PARIS o TOKYO (212) 272-7294 fax
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IRWIN HOME EQUITY TRUST 1998-2: COMPUTATIONAL MATERIALS
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FAX TO: DATE: 10/22/98
COMPANY: # PAGES (incl. cover): 25
FAX NO: PHONE NO:
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FROM: PHONE NO:
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STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES,
AND OTHER INFORMATION
The information contained in the attached materials (the "Information") may
include various forms of performance analysis, security characteristics and
securities pricing estimates for the securities addressed. Please read and
understand this entire statement before utilizing the Information. The
Information is provided solely by Bear Stearns, not as agent for any issuer,
and although it may be based on data supplied to it by an issuer, the issuer
has not participated in its preparation and makes no representations regarding
its accuracy or completeness. Should you receive Information that refers to
the "Statement Regarding Assumptions and Other Information," please refer to
this statement instead.
The Information is illustrative and is not intended to predict actual results
which may differ substantially from those reflected in the Information.
Performance analysis is based on certain assumptions with respect to
significant factors that may prove not to be as assumed. You should understand
the assumptions and evaluate whether they are appropriate for your purposes.
Performance results are based on mathematical models that use inputs to
calculate results. As with all models, results may vary significantly
depending upon the value of the inputs given. Inputs to these models include
but are not limited to: prepayment expectations (economic prepayment models,
single expected lifetime prepayments or a vector of periodic prepayments),
interest rate assumptions (parallel and nonparallel changes for different
maturity instruments), collateral assumptions (actual pool level data,
aggregated pool level data, reported factors or imputed factors), volatility
assumptions (historically observed or implied current) and reported
information (paydown factors, rate resets, and trustee statements). Models
used in any analysis may be proprietary making the results difficult for any
third party to reproduce. Contact your registered representative for detailed
explanations of any modeling techniques employed in the Information.
The Information addresses only certain aspects of the applicable security's
characteristics and thus does not provide a complete assessment. As such, the
Information may not reflect the impact of all structural characteristics of
the security, including call events and cash flow priorities at all prepayment
speeds and/or interest rates. You should consider whether the behavior of
these securities should be tested as assumptions different from those included
in the Information. The assumptions underlying the Information, including
structure and collateral, may be modified from time to time to reflect changed
circumstances. Any investment decision should be based only on the data in the
prospectus and the prospectus supplement or private placement memorandum
(Offering Documents) and the then current version of the Information. Offering
Documents contain data that is current as of their publication dates and after
publication may no longer be complete or current.. Contact your registered
representative for Offering Documents, current Information or additional
materials, including other models for performance analysis, which are likely
to produce different results, and any further explanation regarding the
Information.
Any pricing estimates Bear Stearns has supplied at your request (a) represent
our view, at the time determined, of the investment value of the securities
between the estimated bid and offer levels, the spread between which may be
significant due to market volatility or illiquidity, (b) do not constitute a
bid by any person for any security, (c) may not constitute prices at which the
securities could have been purchased or sold in any market, (d) have not been
confirmed by actual trades, may vary from the value Bear Stearns assigns any
such security while in its inventory, and may not take into account the size
of a position you have in the security, and (e) may have been derived from
matrix pricing that uses data relating to other securities whose prices are
more readily ascertainable to produce a hypothetical price based on the
estimated yield spread relationship between the securities.
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.
<PAGE>
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IRWIN HOME EQUITY TRUST 1998-2
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COMPUTATIONAL MATERIALS
The information set forth herein is dated as of October 21, 1998 and may be
replied upon solely in conjunction with any revised computational materials,
the related prospectus and prospectus supplement.
SUMMARY OF TERMS
Title of Securities....................... Irwin Home Equity Asset Backed
Certificates, Series 1998-2.
Certificates Offered...................... The Class A-1 Certificates (the
"Class A-1 Certificates"), the
Class A-2 Certificates (the
"Class A-2 Certificates", and,
collectively with the Class
A-1 Certificates, the "Class A
Certificates") and one class
of residual Certificates (the
"Class R Certificates"). Only
the Class A Certificates are
offered hereby.
Trust...................................... Irwin Home Equity Trust 1998-2, a
trust to be formed under the
laws of the State of New York.
Depositor ................................. Bear Stearns Asset Backed
Securities, Inc. (the
"Depositor").
Master Servicer ........................... Irwin Union Bank and Trust
Company ("IUB", or in its
capacity as master servicer,
the "Master Servicer") will
act as Master Servicer for the
Trust Fund and, in that
capacity, will (i) provide
customary servicing functions
with respect to the Home
Equity Loans pursuant to a
Pooling and Servicing
Agreement (the "Pooling and
Servicing Agreement") among
the Depositor, the Master
Servicer and Norwest Bank
Minnesota, National
Association, (ii) provide
certain reports to the Trustee
and (iii) make certain
advances.
Transferor ............................... Irwin Funding Corp. (in its
capacity as the seller to the
Depositor, the "Transferor").
The Transferor will acquire
the Home Equity Loans from IUB
and sell the Home Equity Loans
to the Depositor.
The Certificate Insurer .................. Ambac Assurance Corporation (the
"Certificate Insurer").
Trustee................................... Norwest Bank Minnesota,
National Association, a
national banking association.
Cut-Off Date.............................. The close of business on
October 31, 1998.
Issue Date................................ On or about [November 18, 1998]
(the "Issue Date").
Original Class A-1 Principal Balance...... $75,000,000
Original Class A-2 Principal Balance ..... $50,000,000
First Remittance Date..................... December 15, 1998. Distributions
on the Certificates will be
made on the 15th day of each
month (or, if such 15th day is
not a Business Day, on the
next succeeding Business Day)
(each, a "Remittance Date").
"Business Day" will be any
other than (i) a Saturday or
Sunday, or (ii) any day on
which banking institutions
located in the States of New
York, Indiana or California
are authorized or obligated by
law or executive order to
close.
Certificate Ratings....................... It is a condition to the issuance
of the Class A Certificates
that the Class A Certificates
shall have been rated not
lower than AAA by Standard &
Poor's Ratings Group and AAA
by Moody's Investors Service
based on the presence of the
Certificate Insurance
Policies. A security rating is
not a recommendation to buy,
sell or hold securities and
may be subject to revision or
withdrawal at any time by the
assigning rating organization.
<PAGE>
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IRWIN HOME EQUITY TRUST 1998-2
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COMPUTATIONAL MATERIALS
The ratings do not address the
possibility that Class A
Certificateholders may suffer
a lower than anticipated
yield.
Description of Certificates; Denominations. General. The Trust Fund will be
formed and the Certificates
will be issued pursuant to the
Pooling and Servicing
Agreement. The Certificates
will represent the entire
beneficial ownership interest
in the 1998-2 REMIC. The
assets of the 1998-2 REMIC
will be the uncertificated
interests of 1998-2A REMIC and
1998-2B REMIC. The assets of
the 1998-2A REMIC and 1998-2B
REMIC, respectively, will
consist primarily of the
principal balances as of the
Cut-Off Date (such principal
balances with respect to an
individual Home Equity Loan,
the "Principal Balance") of
(i) a pool of Senior Home
Equity Loans and (ii) a pool
of Junior Home Equity Loans,
in each case evidenced by
promissory notes and secured
by mortgages or deeds of trust
on residential
one-to-four-family properties
(such properties, the
"Mortgaged Properties" and
such pools collectively, the
"Home Equity Loan Pool").
In addition, the Depositor has
caused Ambac Assurance
Corporation (the "Certificate
Insurer") to issue two
certificate guaranty insurance
policies (the "Certificate
Insurance Policies"), one
relating to the Class A-1
Certificates and the other
relating to the Class A-2
Certificates for the benefit
of the related Class A
Certificateholders, pursuant
to which it will guarantee
certain payments to the
Trustee for the benefit of the
related Class A
Certificateholders, as
described herein.
Book-Entry Form. The Class A
Certificates initially will be
issued in book-entry form, in
minimum denominations of
$1,000 initial principal
balance with integral
multiples thereof (except for
one Certificate of each Class
which may be issued in a
greater or lesser amount). The
Class A Certificates are
sometimes referred to as
"Book-Entry Certificates." No
person acquiring an interest
in the Book-Entry Certificates
(a "Beneficial Owner") will be
entitled to receive a
definitive certificate
representing such person's
interest in the related 1998-2
REMIC, except under limited
circumstances. Beneficial
Owners may elect to hold their
interests through The
Depository Trust Company
("DTC"), in the United States,
or Centrale de Livraison des
Valeurs Mobiliers, S.A.
("CEDEL") or the Euroclear
System ("Euroclear"), in
Europe. Transfers within DTC,
CEDEL or Euroclear, as the
case may be, will be in
accordance with the usual
rules and operating procedures
of the relevant system.
The Home Equity Loan Pool................. The statistical information
regarding the Home Equity
Loans and the Mortgaged
Properties is based upon the
characteristics of the
respective Group within the
Home Equity Loan Pool as of
the close of business on
September 30, 1998 (the
"Statistic Calculation Date").
Unless otherwise indicated,
all percentages set forth are
based upon the aggregate
Principal Balances of the Home
Equity Loans in the related
Group as of the Statistic
Calculation Date, which was
$57,125,609 with respect to
Junior Home Equity Loans
allocated to Group I and
$39,787,417 with respect to
Senior Home Equity Loans
allocated to Group II.
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related Prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
Page 3 BEAR STEARNS
<PAGE>
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IRWIN HOME EQUITY TRUST 1998-2
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COMPUTATIONAL MATERIALS
The Junior Home Equity Loans
to be included in Group I will
consist of a pool of fixed
rate closed end home equity
loans secured primarily by
subordinate liens and having
original terms to maturity of
10 or 15 years. The security
for the Junior Home Equity
Loans will be mortgages or
deeds of trust on Mortgaged
Properties, which generally
have original terms to stated
maturity of approximately 15
years and which provide for
substantially equal payments
in an amount sufficient to
amortize the Junior Home
Equity Loan over its term.
The Senior Home Equity Loans
to be included in Group II
will consist of a pool of
fixed rate closed-end home
equity loans secured solely by
first priority liens and
having original terms to
maturity of 30 years. The
security for the Senior Home
Equity Loans will be mortgages
or deeds of trust on Mortgaged
Properties, which generally
have original terms to stated
maturity of approximately 30
years and which provide for
substantially equal payments
in an amount sufficient to
amortize the Senior Home
Equity Loan over its term.
The Monthly Payments for each
Home Equity Loan will be due
on the fifteenth day of each
month or, in the case of
certain Home Equity Loans, the
first day of each month (each,
a "Due Date").
The Home Equity Loans were
underwritten in accordance
with the underwriting
standards of Irwin Home Equity
Corporation developed at the
direction of IUB. As of the
Statistic Calculation Date,
when measured by aggregate
principal balance,
approximately 43.19% of the
Senior Home Equity Loans and
32.21% of the Junior Home
Equity Loans are secured by
Mortgaged Properties located
in California, approximately
13.10% of the Senior Home
Equity Loans and 5.35% of the
Junior Home Equity Loans are
secured by Mortgaged
Properties located in selected
metropolitan markets in
Florida, approximately 11.40%
of the Senior Home Equity
Loans and 5.99% of the Junior
Home Equity Loans are secured
by Mortgaged Properties
located in selected
metropolitan markets in
Michigan and approximately
10.63% of the Senior Home
Equity Loans and 4.07% of the
Junior Home Equity Loans are
secured by Mortgaged
Properties located in selected
metropolitan markets in
Illinois.
Mortgage Interest Rate.................... The "Mortgage Interest Rate" of
each Home Equity Loan is the
per annum interest rate
required to be paid by the
mortgagor under the terms of
the related note. The Mortgage
Interest Rate borne by each
Home Equity Loan is fixed as
of the closing date of such
Home Equity Loan. As of the
Statistic Calculation Date,
the weighted average Mortgage
Interest Rate for the Senior
Home Equity Loans was
approximately 8.597% and for
the Junior Home Equity Loans
was approximately 12.078%.
Interest; Class A-1 Pass-Through Rate..... ___%. The Class A-1 Pass-Through
Rate after the Optional
Termination Date shall be
increased by 0.75% (75 basis
points) per annum. Interest on
the Class A-1 Certificates
will accrue from, and
including, the first day
through, and including, the
last day of the month
preceding the related
Remittance Date at the Class
A-1 Pass-Through Rate on the
Class A-1 Principal Balance as
of the last Remittance Date
(after giving effect to
principal distributed on such
last Remittance Date)(such
interest, net of interest
shortfalls not covered by
Compensating Interest, the
"Class A-1 Interest
Distribution Amount"). For
purposes of accrual and
payment of interest on the
Class A-1 Certificates, all
calculations will be based on
an assumed year of 360 days
consisting of twelve 30-day
months.
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related Prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
Page 4 BEAR STEARNS
<PAGE>
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IRWIN HOME EQUITY TRUST 1998-2
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COMPUTATIONAL MATERIALS
Interest; Class A-2 Pass-Through Rate..... ____%. The Class A-2 Pass-Through
Rate after the Optional
Termination Date shall be
increased by 0.75% (75 basis
points) per annum. Interest on
the Class A-2 Certificates
will accrue from, and
including, the first day
through, and including, the
last day of the month
preceding the related
Remittance Date at the Class
A-2 Pass-Through Rate on the
Class A-2 Principal Balance as
of the last Remittance Date
(after giving effect to
principal distributed on such
last Remittance Date)(such
interest, net of interest
shortfalls not covered by
Compensating Interest, the
"Class A-2 Interest
Distribution Amount"). For
purposes of accrual and
payment of interest on the
Class A-2 Certificates, all
calculations will be based on
an assumed year of 360 days
consisting of twelve 30-day
months.
Principal; Class A Principal Balance....... The "Principal Balance" of any
Home Equity Loan as of any
date of determination is the
principal balance of such Home
Equity Loan as of the Cut-Off
Date, after giving effect to
prepayments received on or
prior to the latest Due Date,
Deficient Valuations incurred
prior to such Due Date and the
payment of principal due on
such Due Date and irrespective
of any delinquency in payment
by the related Mortgagor. The
Principal Balance of a Home
Equity Loan which becomes a
Liquidated Home Equity Loan on
or prior to such Due Date
shall be zero. The "Class A-1
Principal Balance" represents
the maximum specified dollar
amount of principal to which
the Holders of the Class A-1
Certificates are entitled from
the future cash flow on the
assets in the 1998-2 REMIC.
The "Class A-1 Principal
Balance" at any time is equal
to the Class A-1 Principal
Balance as of the Cut-Off Date
(the "Original Class A-1
Principal Balance") minus the
aggregate, cumulative amounts
actually distributed as
principal to the Class A-1
Certificateholders. The "Class
A-2 Principal Balance"
represents the maximum
specified dollar amount of
principal to which the Holders
of the Class A-2 Certificates
are entitled from the future
cash flow on the assets in the
1998-2 REMIC. The "Class A-2
Principal Balance" at any time
is equal to the Class A-2
Principal Balance as of the
Cut-Off Date (the "Original
Class A-2 Principal Balance")
minus the aggregate,
cumulative amounts actually
distributed as principal to
the Class A-2
Certificateholders. The "Class
A Principal Balance" refers to
each of the Class A-1
Principal Balance and the
Class A-2 Principal Balance.
The Holders of Class A-1
Certificates are entitled to
receive certain monthly
distributions of principal on
each Remittance Date which
generally reflect collections
of principal on the Junior
Home Equity Loans during the
prior calendar month (the "Due
Period"). The Holders of Class
A-2 Certificates are entitled
to receive certain monthly
distributions of principal on
each Remittance Date which
generally reflect collections
of principal on the Senior
Home Equity Loans during the
related Due Period.
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related Prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
Page 5 BEAR STEARNS
<PAGE>
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IRWIN HOME EQUITY TRUST 1998-2
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COMPUTATIONAL MATERIALS
The "Class A Principal
Distribution Amount" for any
Remittance Date and either
Group will be the lesser of:
(a) the excess of (i) the
related Available Amount plus
any Group I Cross-Over Amounts
or Group II Cross-Over Amount,
as applicable plus any Insured
Payment over (ii) the Class
A-1 Interest Distribution
Amount or the Class A-2
Interest Distribution Amount,
as applicable, and
(b) the sum, without
duplication, of:
(i) that portion of all
scheduled installments of
principal in respect of the
Home Equity Loans in the
related Group which is
received during the related
Due Period together with all
unscheduled recoveries of
principal (including
Prepayments, Curtailments and
Deficient Valuations) on such
Home Equity Loans actually
collected by the Master
Servicer during the prior
calendar month,
(ii) the Principal Balance of
each Home Equity Loan in the
related Group that was,
effective on such Remittance
Date, either repurchased by
the Transferor or IUB or
purchased by the Master
Servicer during the preceding
Due Period, but only to the
extent the amount equal to
such Principal Balance is
actually received by the
Trustee,
(iii) any Substitution
Adjustment amounts delivered
by the Transferor or IUB on
the related Remittance Date in
connection with a substitution
of a Home Equity Loan in the
related Group, to the extent
such Substitution Adjustments
are actually received by the
Trustee,
(iv) with respect to each Home
Equity Loan in the related
Group that became a Liquidated
Home Equity Loan during the
prior calendar month, the
Principal Balance of such Home
Equity Loan immediately prior
to the time when such Home
Equity Loan became a
Liquidated Home Equity Loan,
(v) any Overcollateralization
Increase Amounts with respect
to the related Group,
(vi) any Subordination Deficit
with respect to the related
Group, and
(vii) with respect to the Home
Equity Loans in the related
Group, the proceeds received
by the Trust Fund following
any termination of the 1998-2A
REMIC, the 1998-2B REMIC or
the 1998-2 REMIC carried out
in accordance with a plan of
complete liquidation or
pursuant to the optional
termination of any of the
REMICs by the Master Servicer,
the Holder of the Class R
Certificate or the Certificate
Insurer in accordance with the
Pooling and Servicing
Agreement, minus
(viii) any
Overcollateralization Release
Amount for the related Group.
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related Prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
Page 6 BEAR STEARNS
<PAGE>
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IRWIN HOME EQUITY TRUST 1998-2
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COMPUTATIONAL MATERIALS
The "Available Amount" for a
Group on any Remittance Date
equals (i) the Master Servicer
Remittance Amount for such
Group, minus (ii) the sum of
the Trustee Fee and the amount
owed to the Certificate
Insurer as premium for the
Certificate Insurance Policy
for such Group.
The "Master Servicer
Remittance Amount" for a Group
is generally equal to the sum
of (i) all unscheduled
collections of principal and
interest on the related Home
Equity Loans collected by the
Master Servicer during the
related Due Period and all
scheduled Monthly Payments
(net of the servicing fee) on
the related Home Equity Loans
due on the related Due Date
and received on or prior to
the Business Day preceding
such Master Servicer
Remittance Date, (ii) all
Periodic Advances made by the
Master Servicer with respect
to interest payments due to be
received on the related Home
Equity Loans on the related
Due Date and (iii) any other
amounts required to be placed
in a Collection Account by the
Master Servicer in respect of
the related Home Equity Loans
pursuant to the Pooling and
Servicing Agreement. The
"Master Servicer Remittance
Date" is the fourteenth day of
each month.
The "Group I Cross-Over
Amount" for any Remittance
Date equals the lesser of (i)
the excess, if any, of the
Group I Available Amount over
the sum of the Class A-1
Interest Distribution Amount
and the Principal Distribution
Amount with respect to Group I
less any Overcollateralization
Increase Amount included
therein and (ii) the sum of
(a) the excess, if any, of the
Class A-2 Interest
Distribution Amount over the
Group II Available Amount and
(b) any Subordination Deficit
for the Senior Home Equity
Loans. The "Group II
Cross-Over Amount" for any
Remittance Date equals the
lesser of (i) the excess, if
any, of the Group II Available
Amount over the sum of the
Class A-2 Interest
Distribution Amount and the
Principal Distribution Amount
with respect to Group II less
any Overcollateralization
Increase Amount included
therein and (ii) the sum of
(a) the excess, if any, of the
Class A-1 Interest
Distribution Amount over the
Group I Available Amount and
(b) any Subordination Deficit
for the Junior Home Equity
Loans.
The "Overcollateralization
Increase Amount" with respect
to each of Group I and Group
II, as applicable, is equal to
the lesser of (i) the Group I
Excess Spread and the Group II
Excess Spread, respectively,
and (ii) the related
Overcollateralization
Deficiency Amount.
The "Excess Spread" with
respect to either Group shall
mean the excess, if any, of
the related Available Amount
over the sum of (x) the Class
A-1 Interest Distribution
Amount or Class A-2 Interest
Distribution Amount, as
applicable, (y) the amounts
set forth in clauses (i),
(ii), (iii), (iv) and (without
duplication) (vi) of paragraph
(b) of the definition of
Principal Distribution Amount
for the related Class A
Certificates, and (z) any
Group I Cross-Over Amount or
Group II Cross-Over Amounts
required to be distributed in
respect of the Class A-2
Certificates and the Class A-1
Certificates, respectively.
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related Prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
Page 7 BEAR STEARNS
<PAGE>
- ------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- ------------------------------------------------------------------------------
COMPUTATIONAL MATERIALS
The "Overcollateralization
Deficiency Amount" with
respect to each Group and any
date of determination, is
equal to the excess, if any,
of the related
Overcollateralization Target
Amount over the related
Overcollateralization Amount.
The "Overcollateralization
Target Amount" will be
established pursuant to the
Pooling and Servicing
Agreement and may increase or
decrease over time and may be
modified from time to time by
agreement of the Certificate
Insurer and IUB.
The "Overcollateralization
Release Amount" with respect
to each Group and any date of
determination, is equal to the
excess, if any, of the related
Overcollateralization Amount
over the related
Overcollateralization Target
Amount.
The "Overcollateralization
Amount" with respect to each
of Group I and Group II and as
of any Remittance Date, is the
excess, if any, of (i) the
aggregate Principal Balance of
the Junior Home Equity Loans
(with respect to Group I) or
the aggregate Principal
Balance of the Senior Home
Equity Loans (with respect to
Group II), as applicable, as
of the close of business on
the last day of the related
Due Period over (ii) the
aggregate Certificate
Principal Balance of the Group
I Certificates or Group II
Certificates, as applicable,
as of such Remittance Date
(after taking into account the
related Principal Distribution
Amount, other than the
Overcollateralization Increase
Amount, and any
Overcollateralization Release
Amount for such Remittance
Date).
The actual amount distributed
with respect to the Class A-1
Certificates on any Remittance
Date is the "Class A-1
Distribution Amount" for such
Remittance Date. The actual
amount distributed with
respect to the Class A-2
Certificates on any Remittance
Date is the "Class A-2
Distribution Amount" for such
Remittance Date.
A"Liquidated Home Equity Loan"
is, in general, a defaulted
Home Equity Loan as to which
the Master Servicer has
determined that all amounts
that it expects to recover on
such Home Equity Loan have
been recovered (exclusive of
any possibility of a
deficiency judgment). To the
extent of the Available
Amount, a loss on a Liquidated
Home Equity Loan (a
"Liquidated Loan Loss") will
be recovered by the Holders of
the related Class of Class A
Certificates on the Remittance
Date which immediately follows
the event of loss. Any
Liquidated Loan Loss that
results in a Subordination
Deficit will require payment
of an Insured Payment if not
otherwise available from the
Group I Available Amount or
Group II Available Amount, as
applicable. The Certificate
Insurer will insure the timely
payment of interest and the
ultimate payment of principal
on the Class A Certificates.
The "Subordination Deficit"
for the Senior Home Equity
Loans or the Junior Home
Equity Loans, as applicable
and any Remittance Date, is
the excess, if any, of (a) the
aggregate of the Class A-1
Principal Balance, in the case
of the Junior Home Equity
Loans, or the Class A-2
Principal Balance, in the case
of the Senior Home Equity
Loans, on such Remittance
Date, after taking into
account the payment of the
related Principal Distribution
Amount on such Remittance Date
(except for amounts payable
under the related Certificate
Insurance Policy) over (b) the
aggregate Principal Balance of
the Senior Home Equity Loans
or the aggregate Principal
Balance of the Junior Home
Equity Loans, as applicable,
as of the end of the related
Due Period.
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related Prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
Page 8 BEAR STEARNS
<PAGE>
- ------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- ------------------------------------------------------------------------------
COMPUTATIONAL MATERIALS
Credit Enhancement........................ The credit enhancement provided
for the benefit of the Class A
Certificateholders consists of
(a) excess interest, (b) the
Overcollateralization Amounts
and (c) the Certificate
Insurance Policies.
Excess Interest
Because the amount of interest
collected on the Home Equity
Loans is expected to be higher
than the Pass-Through Rates on
the Certificates, excess
interest will be generated.
This excess interest will be
applied to create and maintain
the required
overcollateralization amount
prior to being paid to the
holders of the Class R
Certificates.
Overcollateralization
On the Closing Date, each
respective
Overcollateralization Amount
will equal zero. As a result
of the application of the
respective Excess Spread in
reduction of the principal
balance of the related Class A
Certificate, the applicable
Overcollateralization Amount
is expected to increase over
time until it reaches the
applicable
Overcollateralization Target
Amount; however the Pooling
and Servicing Agreement
provides that, subject to
certain trigger tests, the
required percentage level of
overcollateralization may
increase or decrease over
time.
While the distribution of the
Available Amount to the
holders of the Class A
Certificates in reduction of
the Class A Principal Balance
has been designed to produce
and maintain a given level of
overcollateralization with
respect to the Class A
Certificates, there can be no
assurance that the Master
Servicer Remittance Amount
will be sufficient to ensure
that such
overcollateralization level
will be achieved or maintained
at all times.
The Certificate Insurance
Policies
The Class A Certificateholders
will have the benefit of the
Certificate Insurance
Policies, discussed more fully
below.
Certificate Insurance Policies............ The Certificate Insurer will issue
two Certificate Guaranty
Insurance Policies (the
"Certificate Insurance
Policies") one with respect to
the Class A-1 Certificates and
one with respect to the Class
A-2 Certificates, pursuant to
which it will irrevocably and
unconditionally guaranty
payment on each Remittance
Date of Insured Payments to
the Trustee for the benefit of
the Holders of the related
classes of Class A
Certificates. The Certificate
Insurer will generally be
required to make available to
the Trustee (a) on each
Remittance Date, the sum of
(i) the excess, if any, of the
Class A-1 Interest
Distribution Amount or the
Class A-2 Interest
Distribution Amount, as
applicable, over the sum of
the related Available Amount
and the applicable Group I or
Group II Cross-Over Amount and
(ii) any applicable
Subordination Deficit and (b)
any unpaid Preference Amount
(as defined in the related
Policy). The Certificate
Insurance Policy does not
guarantee the Class A
Certificates any specified
rate of prepayments. A payment
by the Certificate Insurer
under either of the
Certificate Insurance Policies
is referred to herein as an
"Insured Payment." The
Certificate Insurer will be
entitled to reimbursement for
all Insured Payments together
with interest thereon.
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related Prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
Page 9 BEAR STEARNS
<PAGE>
- ------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- ------------------------------------------------------------------------------
COMPUTATIONAL MATERIALS
Servicing of the Home Equity Loans........
The Master Servicer has agreed to
service the Home Equity Loans
on a "scheduled/actual" basis
(i.e., the Master Servicer is
responsible for advancing
scheduled payments of
interest) in accordance with
the Pooling and Servicing
Agreement and to cause the
Home Equity Loans to be
serviced with the same care as
it customarily employs in
servicing and administering
mortgage loans for its own
account in accordance with
accepted mortgage servicing
practices of prudent lending
institutions and giving due
consideration to the
Certificate Insurer's and the
Certificateholders' reliance
on the Master Servicer.
Periodic Advances......................... Subject to the Master Servicer's
determination that such action
would not constitute a
Nonrecoverable Advance (as
defined herein), the Master
Servicer is required to
deposit into the Trustee
Collection Account no later
than the close of business on
the third Business Day prior
to the related Remittance Date
(such day, the "Determination
Date") an amount equal to the
sum of (a) the interest
portion of the Monthly
Payments on each Home Equity
Loan due by the related Due
Date but not received by the
Master Servicer as of the
close of business on the
related Determination Date,
net of the Servicing Fee and
(b) with respect to each REO
Property which was acquired
during or prior to the related
Due Period and as to which an
REO disposition did not occur
during the related Due Period,
an amount equal to the excess,
if any, of interest on the
Principal Balance of the Home
Equity Loan related to such
REO Property at the related
Mortgage Interest Rate, net of
the Servicing Fee, for the
related Due Period for the
related Home Equity Loan over
the net income from the REO
Property to be transferred to
the Certificate Account for
such Remittance Date pursuant
to the Pooling and Servicing
Agreement (the "Periodic
Advance"). Such Periodic
Advances by the Master
Servicer are reimbursable to
the Master Servicer subject to
certain conditions and
restrictions and are intended
to provide both sufficient
funds for the payment of
interest to the Holders of the
Class A Certificates and to
pay the premium due the
Certificate Insurer. In the
event that, notwithstanding
the Master Servicer's good
faith determination at the
time such Periodic Advance was
made that it would not be a
Nonrecoverable Advance, such
Periodic Advance becomes a
Nonrecoverable Advance, the
Master Servicer will be
entitled to reimbursement
therefor from the 1998-2
REMIC.
Prepayment Interest Shortfalls............ Not later than the close of
business on the Business Day
immediately following each
Determination Date, the Master
Servicer is required to remit
to the Trustee Collection
Account, an amount equal to
the lesser of (a) the
aggregate of the Prepayment
Interest Shortfalls for the
related Remittance Date
resulting from principal
prepayments during the related
Due Period and (b) its
aggregate Servicing Fees
received in the related Due
Period and shall not have the
right to reimbursement
therefor (the "Compensating
Interest"). With respect to
any Remittance Date and any
Home Equity Loan, the
"Prepayment Interest
Shortfall" will be an amount
equal to the excess, if any,
of (a) 30 days' interest on
the outstanding Principal
Balance of such Home Equity
Loan at a per annum rate equal
to the related Mortgage
Interest Rate, any reduction
as a result of a bankruptcy
proceeding (a "Deficient
Valuation") and/or any
reduction by a court of the
monthly payment due on such
Home Equity Loan (a "Debt
Service Reduction")), minus
the rate at which the
Servicing Fee is calculated,
over (b) the amount of
interest actually remitted by
the Mortgagor in connection
with such principal prepayment
in full less the Servicing Fee
for such Home Equity Loan in
such month.
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related Prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
Page 10 BEAR STEARNS
<PAGE>
- ------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- ------------------------------------------------------------------------------
COMPUTATIONAL MATERIALS
Servicing Advances........................ Subject to the Master Servicer's
determination that such action
would not constitute a
Nonrecoverable Advance and
that a prudent mortgage lender
would make a like advance if
it or an affiliate owned the
related Home Equity Loan, the
Master Servicer is required to
advance amounts with respect
to the Home Equity Loans
("Servicing Advances")
constituting "out-of-pocket"
costs and expenses relating to
(a) the preservation and
restoration of the Mortgaged
Property, (b) enforcement
proceedings, including
foreclosures, (c) expenditures
relating to the purchase or
maintenance of a first lien
not included in the relevant
REMIC on the Mortgaged
Property, and (d) certain
other customary amounts
described in the Pooling and
Servicing Agreement. Such
Servicing Advances by the
Master Servicer are
reimbursable to the Master
Servicer subject to certain
conditions and restrictions.
In the event that,
notwithstanding the Master
Servicer's good faith
determination at the time such
Servicing Advance was made,
that it would not be a
Nonrecoverable Advance, in the
event such Servicing Advance
becomes a Nonrecoverable
Advance, the Master Servicer
will be entitled to
reimbursement therefor from
the relevant REMIC.
Servicing Fee............................. As compensation for servicing the
Home Equity Loans, the Master
Servicer is entitled to a
servicing fee (the "Servicing
Fee") calculated and payable
monthly from the interest
portion of Monthly Payments,
Net Liquidation Proceeds and
certain other proceeds.
Optional Termination...................... The Master Servicer may, at its
option (and if such option is
not exercised by the Master
Servicer, the Certificate
Insurer or the holder of the
Class R Certificate may, at
its option) repurchase all but
not less than all of the Home
Equity Loans in the related
Group on any date on which the
aggregate Principal Balances
of the Home Equity Loans, with
respect to Group I or the
aggregate Principal Balances
of the Home Equity Loans, with
respect to Group II, is less
than 10% of the aggregate
Principal Balances of the Home
Equity Loans in the related
Group as of the Cut-Off Date
(the "Optional Termination
Date"), by purchasing from the
related REMIC on the next
succeeding Remittance Date,
all of the property in such
Group at a price equal to the
sum of (a) the greater of (i)
100% of the aggregate
Principal Balances of each
outstanding Home Equity Loan
in such Group and each REO
Property acquired in respect
of a Home Equity Loan in such
Group and (ii) the fair market
value (disregarding accrued
interest) of the Principal
Balances of such Home Equity
Loans and such REO Properties,
determined as the average of
three written bids (copies of
which are to be delivered to
the Trustee and the
Certificate Insurer by the
Master Servicer and the
reasonable cost of which may
be deducted from the final
purchase price) made by
nationally-recognized dealers
and based on a valuation
process which would be used to
value comparable mortgage
loans and REO properties, (b)
the greater of (i) the
aggregate amount of accrued
and unpaid interest on the
Principal Balances of the Home
Equity Loans in such Group
through the related Due Period
and (ii) 30 days' accrued
interest thereon computed at a
rate equal to the related
Mortgage Interest Rate, in
each case net of the Servicing
Fee, and (c) any unreimbursed
amounts due to the Certificate
Insurer under the Pooling and
Servicing Agreement and any
accrued and unpaid Insured
Payments.
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related Prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
Page 11 BEAR STEARNS
<PAGE>
- ------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- ------------------------------------------------------------------------------
COMPUTATIONAL MATERIALS
ERISA Considerations......................
A fiduciary of any employee
benefit plan or other
retirement arrangement subject
to ERISA, or the Internal
Revenue Code of 1986, as
amended (the "Code") should
carefully review with its
legal advisors whether the
purchase or holding of Class A
Certificates could give rise
to a transaction prohibited or
not otherwise permissible
under ERISA or the Code. The
U.S. Department of Labor has
issued an individual
exemption, Prohibited
Transaction Exemption 90-32,
to the Underwriter, which
generally exempts from the
application of certain of the
prohibited transaction
provisions of ERISA, and the
excise taxes imposed on such
prohibited transactions by
Section 4975(a) and (b) of the
Code and Section 502(i) of
ERISA, transactions relating
to the purchase, sale and
holding of pass-through
certificates such as the Class
A Certificates and the
servicing and operation of
asset pools such as the 1998-2
REMIC, provided that certain
conditions are satisfied.
Legal Investment.......................... Only the Class A-2 Certificates
will constitute "mortgage
related securities" for
purposes of the Secondary
Mortgage Market Enhancement
Act of 1984.
Federal Income Tax Status................. An election will be made to treat
each of Group I and Group II
as a real estate mortgage
investment conduit (a "REMIC")
for federal income tax
purposes; the assets of both
of these REMICs will comprise
the 1998-2 REMIC. The Class
A-1 Certificates and the Class
A-2 Certificates will be
designated as the regular
interests in the 1998-2 REMIC
and the Class R Certificates
will represent the residual
interests in each of the
1998-2A REMIC, the 1998-2B
REMIC and the 1998-2 REMIC.
The Class A Certificates
generally will be treated as
newly originated debt
instruments for federal income
tax purposes. Beneficial
Owners of the Class A
Certificates will be required
to report income thereon in
accordance with the accrual
method of accounting.
In addition, if the Class A
Certificates are issued with
original issue discount for
federal income tax purposes,
such event generally will
result in recognition of some
taxable income in advance of
the receipt of the cash
attributable to such income.
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related Prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
Page 12 BEAR STEARNS
<PAGE>
- ------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- ------------------------------------------------------------------------------
COMPUTATIONAL MATERIALS
<TABLE>
<CAPTION>
JUNIOR HOME EQUITY LOAN
GROUP I
MORTGAGE INTEREST RATES OF GROUP I HELS
Aggregate Statistical Percentage of Statistical
Range of Mortgage Interest Number of Calculation Date Calculation Date
Rates HELs Principal Balance Pool Balance
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
8.001 - 8.500 17 $ 829,783.47 1.45%
8.501 - 9.000 33 $ 1,579,108.22 2.76%
9.001 - 9.500 21 $ 1,253,143.48 2.19%
9.501 - 10.000 55 $ 2,955,500.10 5.17%
10.001 - 10.500 95 $ 3,971,871.30 6.95%
10.501 - 11.000 164 $ 6,682,377.66 11.70%
11.001 - 11.500 138 $ 5,959,201.09 10.43%
11.501 - 12.000 178 $ 6,754,154.98 11.82%
12.001 - 12.500 138 $ 5,453,143.86 9.55%
12.501 - 13.000 180 $ 6,699,032.26 11.73%
13.001 - 13.500 115 $ 3,701,214.42 6.48%
13.501 - 14.000 110 $ 3,878,831.52 6.79%
14.001 - 14.500 137 $ 4,084,414.66 7.15%
14.501 - 15.000 59 $ 1,608,219.21 2.82%
15.001 - 15.500 47 $ 972,467.74 1.70%
15.501 - 16.000 28 $ 528,532.57 0.93%
16.001 - 16.500 12 $ 181,198.95 0.32%
16.501 - 17.000 2 $ 33,413.53 0.06%
- ----------------------------------------------------------------------------------------------------------
Total 1529 $ 57,125,609.02 100.00%
- ----------------------------------------------------------------------------------------------------------
The weighted average Mortgage Interest Rate of the Group I HELs is
approximately 12.078% per annum.
</TABLE>
<TABLE>
<CAPTION>
REMAINING TERM TO MATURITY OF GROUP I HELS
Aggregate Statistical Percentage of Statistical
Range of Remaining Terms Number of Calculation Date Calculation Date
to Maturity (months) HELs Principal Balance Pool Balance
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
89 - 96 7 $ 113,449.82 0.20%
103 - 120 211 $ 6,258,362.61 10.96%
174 - 180 1311 $ 50,753,796.59 88.85%
- ---------------------------------------------------------------------------------------------------------
Total 1529 $ 57,125,609.02 100.00%
- ---------------------------------------------------------------------------------------------------------
</TABLE>
The weighted average Remaining Term to Maturity of the Group I HELs is
approximately 172 months.
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related Prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
Page 13 BEAR STEARNS
<PAGE>
- ------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- ------------------------------------------------------------------------------
COMPUTATIONAL MATERIALS
<PAGE>
<TABLE>
<CAPTION>
YEAR OF ORIGINATION OF GROUP I HELS
Aggregate Statistical Percentage of Statistical
Number of Calculation Date Calculation Date
Year of Origination HELs Principal Balance Pool Balance
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1996 7 $ 113,449.82 0.20%
1997 5 $ 98,895.30 0.17%
1998 1517 $ 56,913,263.90 99.63%
- ---------------------------------------------------------------------------------------------------------
Total 1529 $ 57,125,609.02 100.00%
- ---------------------------------------------------------------------------------------------------------
The earliest month and year of origination of any Group I HEL is January 1996
and the latest month and year of origination is September 1998.
</TABLE>
<TABLE>
<CAPTION>
COMBINED LOAN-TO-VALUE RATIOS OF GROUP I HELS
Aggregate Statistical Percentage of Statistical
Number Calculation Date Calculation Date
Range of CLTVs of HELs Principal Balance Pool Balance
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
10.01% - 15.00% 1 $ 10,718.36 0.02%
20.01% - 25.00% 3 $ 107,280.62 0.19%
30.01% - 35.00% 1 $ 30,925.46 0.05%
35.01% - 40.00% 3 $ 145,791.23 0.26%
40.01% - 45.00% 2 $ 55,000.00 0.10%
45.01% - 50.00% 2 $ 108,160.97 0.19%
50.01% - 55.00% 12 $ 351,582.22 0.62%
55.01% - 60.00% 5 $ 164,951.06 0.29%
60.01% - 65.00% 13 $ 442,862.11 0.78%
65.01% - 70.00% 23 $ 1,077,023.31 1.89%
70.01% - 75.00% 28 $ 1,451,665.90 2.54%
75.01% - 80.00% 92 $ 3,199,321.90 5.60%
80.01% - 85.00% 130 $ 4,818,980.62 8.44%
85.01% - 90.00% 241 $ 9,270,016.32 16.23%
90.01% - 95.00% 251 $ 9,789,648.96 17.14%
95.01% - 100.00% 683 $ 24,443,599.67 42.79%
100.01% - 105.00% 24 $ 910,802.71 1.59%
105.01% - 110.00% 13 $ 659,073.35 1.15%
110.01% - 115.00% 2 $ 88,204.25 0.15%
----------------------------------------------------------------------------------------------------------------
Total 1529 $ 57,125,609.02 100.00%
----------------------------------------------------------------------------------------------------------------
</TABLE>
The minimum and maximum Combined Loan-to-Value Ratios of the Group I HELs are
approximately 12.81% and 111.52%, respectively, and the weighted average
Combined Loan-to-Value Ratio of the Group I HELs is approximately 92.00%.
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related Prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
Page 14 BEAR STEARNS
<PAGE>
- ------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- ------------------------------------------------------------------------------
COMPUTATIONAL MATERIALS
<PAGE>
<TABLE>
<CAPTION>
STATISTICAL CALCULATION DATE PRINCIPAL BALANCES OF GROUP I HELS
Aggregate Statistical Percentage of Statistical
Range of Statistical Calculation Date Number Calculation Date Calculation Date
Principal Balances of HELs Principal Balance Pool Balance
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 0.01 - $ 10,000.00 7 $ 68,704.84 0.12%
$ 10,000.01 - $ 20,000.00 241 $ 4,036,348.74 7.07%
$ 20,000.01 - $ 30,000.00 443 $ 11,249,473.62 19.69%
$ 30,000.01 - $ 40,000.00 365 $ 12,635,943.51 22.12%
$ 40,000.01 - $ 50,000.00 201 $ 9,228,404.16 16.15%
$ 50,000.01 - $ 60,000.00 112 $ 6,182,593.26 10.82%
$ 60,000.01 - $ 70,000.00 47 $ 3,067,044.62 5.37%
$ 70,000.01 - $ 80,000.00 37 $ 2,775,753.97 4.86%
$ 80,000.01 - $ 90,000.00 25 $ 2,131,726.00 3.73%
$ 90,000.01 - $100,000.00 38 $ 3,726,447.05 6.52%
$110,000.01 - $120,000.00 5 $ 569,315.30 1.00%
$120,000.01 - $130,000.00 2 $ 251,000.00 0.44%
$130,000.01 - $140,000.00 1 $ 137,136.84 0.24%
$160,000.01 - $170,000.00 1 $ 162,725.04 0.28%
$170,000.01 - $180,000.00 1 $ 170,389.28 0.30%
$200,000.01 - $225,000.00 2 $ 433,631.36 0.76%
$275,000.01 - $300,000.00 1 $ 298,971.43 0.52%
- -----------------------------------------------------------------------------------------------------------------
Total 1529 $ 57,125,609.02 100.00%
- -----------------------------------------------------------------------------------------------------------------
The average Statistical Calculation Date Principal Balance of the Group I HELs
is approximately $37,361.42.
</TABLE>
<TABLE>
<CAPTION>
MORTGAGED PROPERTIES SECURING GROUP I HELS
Aggregate Statistical Percentage of Statistical
Number Calculation Date Calculation Date
Property Type of HELs Principal Balance Pool Balance
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Condominium 86 $ 2,825,743.05 4.95%
Multi-Family 8 $ 215,730.82 0.38%
Planned Unit Development 105 $ 5,573,989.74 9.76%
Single-Family Dwelling 1330 $ 48,510,145.41 84.92%
- ----------------------------------------------------------------------------------------------------------------
Total 1529 $ 57,125,609.02 100.00%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related Prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
Page 15 BEAR STEARNS
<PAGE>
- ------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- ------------------------------------------------------------------------------
COMPUTATIONAL MATERIALS
<PAGE>
<TABLE>
<CAPTION>
GEOGRAPHIC DISTRIBUTION OF MORTGAGED PROPERTIES SECURING GROUP I HELS
Aggregate Statistical Percentage of Statistical
Number Calculation Date Calculation Date
State of HELs Principal Balance Pool Balance
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
California 382 $ 18,400,395.17 32.21%
Colorado 20 $ 826,840.59 1.45%
Florida 88 $ 3,057,397.53 5.35%
Georgia 94 $ 3,203,897.02 5.61%
Illinois 71 $ 2,327,070.61 4.07%
Kentucky 4 $ 185,600.00 0.32%
Louisiana 64 $ 1,864,679.71 3.26%
Maryland 33 $ 1,043,311.22 1.83%
Massachusetts 158 $ 5,287,772.83 9.26%
Michigan 105 $ 3,421,197.29 5.99%
Missouri 6 $ 195,700.00 0.34%
New Jersey 77 $ 2,815,395.96 4.93%
North Carolina 57 $ 1,479,924.97 2.59%
Ohio 151 $ 5,071,473.12 8.88%
Oregon 17 $ 739,930.02 1.30%
Pennsylvania 39 $ 1,296,174.58 2.27%
South Carolina 25 $ 675,240.99 1.18%
Utah 7 $ 217,657.09 0.38%
Virginia 39 $ 1,201,071.64 2.10%
Washington 76 $ 3,262,580.09 5.71%
Wisconsin 16 $ 552,298.59 0.97%
- ------------------------------------------------------------------------------------------------
Total 1529 $ 57,125,609.02 100.00%
- ------------------------------------------------------------------------------------------------
</TABLE>
No more than approximately 0.52 % of the Group I HELs are secured by Mortgaged
Properties located in any single United States postal zip code.
<TABLE>
<CAPTION>
DEBT-TO-INCOME RATIOS OF GROUP I HELS
Range of Debt-to-Income Number of HELs Aggregate Statistical Calculation Date Percentage of Statistical
Ratios Principal Balance Calculation Date Pool Balance
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
5.01% - 15.00% 4 $ 71,612.13 0.13%
15.01% - 20.00% 22 726,763.61 1.27%
20.01% - 25.00% 60 $ 1,819,117.89 3.18%
25.01% - 30.00% 152 $ 5,293,487.44 9.27%
30.01% - 35.00% 242 $ 8,254,262.76 14.45%
35.01% - 40.00% 333 $ 11,555,541.69 20.23%
40.01% - 45.00% 366 $ 13,806,843.90 24.17%
45.01% - 50.00% 294 $ 12,711,927.39 22.25%
50.01% - 55.00% 56 $ 2,886,052.21 5.05%
- --------------------------------------------------------------------------------------------------------------------------------
Total 1529 $ 57,125,609.02 100.00%
- --------------------------------------------------------------------------------------------------------------------------------
The weighted average Debt-to-Income Ratios of the Group I HELs is
approximately 39.28%.
</TABLE>
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related Prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
Page 16 BEAR STEARNS
<PAGE>
- ------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- ------------------------------------------------------------------------------
COMPUTATIONAL MATERIALS
<TABLE>
<CAPTION>
OCCUPANCY TYPE OF GROUP I HELS
Number Aggregate Statistical Calculation Percentage of Statistical Calculation
Occupancy Type of HELs Date Principal Balance Date Pool Balance
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Non Owner Occupied 12 $ 373,085.29 0.65%
Owner Occupied 1517 $ 56,752,523.73 99.35%
- -----------------------------------------------------------------------------------------------------------------------
Total 1529 $ 57,125,609.02 100.00%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CREDIT QUALITY OF GROUP I HELS
Number of Initial Aggregate Statistical Calculation Percentage of Statistical Calculation Date
Credit Quality HELs Date Principal Balance Pool Balance
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Superior 151 $ 5,486,119.24 9.60%
Excellent 1335 $ 50,340,589.37 88.12%
Good 34 $ 1,052,742.14 1.84%
Fair 9 $ 246,158.27 0.43%
- ------------------------------------------------------------------------------------------------------------------------------
Total 1529 $ 57,125,609.02 100.00%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
ORIGINAL TERM TO STATED MATURITY OF GROUP I HELS
Range of Original Terms to Aggregate Statistical Calculation Percentage of Statistical
Stated Maturity (months) Number of HELs Date Principal Balance Calculation Date Pool Balance
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
119 - 120 218 $ 6,371,812.43 11.15%
179 - 180 1311 $ 50,753,796.59 88.85%
- ------------------------------------------------------------------------------------------------------------------------------
Total 1529 $ 57,125,609.02 100.00%
- ------------------------------------------------------------------------------------------------------------------------------
The weighted average Original Term to Stated Maturity of the Group I HELs is
approximately 173 months.
</TABLE>
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related Prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
Page 17 BEAR STEARNS
<PAGE>
- ------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- ------------------------------------------------------------------------------
COMPUTATIONAL MATERIALS
<TABLE>
<CAPTION>
SENIOR HOME EQUITY LOAN
GROUP II
MORTGAGE INTEREST RATES OF GROUP II HELS
Range of Mortgage Interest Number Aggregate Statistical Calculation Date Percentage of Statistical
Rates of HELs Principal Balance Calculation Date Pool Balance
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
6.501% - 7.000% 2 $ 332,373.45 0.84%
7.001% - 7.500% 4 $ 633,717.83 1.59%
7.501% - 8.000% 37 $ 6,517,378.63 16.38%
8.001% - 8.500% 75 $ 12,211,521.30 30.69%
8.501% - 9.000% 55 $ 8,661,411.63 21.77%
9.001% - 9.500% 79 $ 10,313,609.29 25.92%
9.501% - 10.000% 6 $ 1,117,405.14 2.81%
- --------------------------------------------------------------------------------------------------------------------------------
Total 258 $ 39,787,417.27 100.00%
- --------------------------------------------------------------------------------------------------------------------------------
The weighted average Mortgage Interest Rate of the Group II HELs
isapproximately 8.597% per annum
</TABLE>
<TABLE>
<CAPTION>
REMAINING TERM TO MATURITY OF GROUP II HELS
Range of Remaining Terms Number Aggregate Statistical Calculation Date Percentage of Statistical
to Maturity (months) of HELs Principal Balance Calculation Date Pool Balance
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
355 - 360 258 $ 39,787,417.27 100.00%
- -----------------------------------------------------------------------------------------------------------------------------
Total 258 $ 39,787,417.27 100.00%
- -----------------------------------------------------------------------------------------------------------------------------
The weighted average Remaining Term to Maturity of the Group II HELs is
approximately 359 months.
</TABLE>
<TABLE>
<CAPTION>
YEAR OF ORIGINATION OF GROUP II HELS
Aggregate Statistical Calculation Percentage of Statistical
Year of Origination Number of HELs Date of Princial Balance Calculation Date Pool Balance
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1998 258 $ 39,787,417.27 100.00%
- -----------------------------------------------------------------------------------------------------------------------------
Total 258 $ 39,787,417.27 100.00%
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
The earliest month and year of origination of any Group II HELs is April 1998
and the latest month and year of origination is September 1998.
- ------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- -------------------------------------------------------------------------------
Computational Materials
COMBINED LOAN-TO-VALUE RATIOS OF GROUP II HELS
<TABLE>
<CAPTION>
Percentage of
Statistical
Range of CLTVs Number of HELs Aggregate Statistical Calculation Calculation Date
Date Principal Balance Pool Balance
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
25.01% - 30.00% 1 $ 147,784.81 0.37%
30.01% - 35.00% 1 $ 87,850.96 0.22%
35.01% - 40.00% 1 $ 74,000.00 0.19%
45.01% - 50.00% 2 $ 226,925.62 0.57%
50.01% - 55.00% 2 $ 600,000.00 1.51%
55.01% - 60.00% 2 $ 240,597.06 0.60%
60.01% - 65.00% 3 $ 971,313.29 2.44%
65.01% - 70.00% 4 $ 865,330.13 2.17%
70.01% - 75.00% 3 $ 335,999.95 0.84%
75.01% - 80.00% 3 $ 707,190.81 1.78%
80.01% - 85.00% 43 $ 6,197,402.88 15.58%
85.01% - 90.00% 52 $ 9,045,246.75 22.73%
90.01% - 95.00% 39 $ 6,455,600.89 16.23%
95.01% - 100.00% 102 $ 13,832,174.12 34.77%
- ------------------------------------------------------------------------------------------------------------------------------------
Total 258 $ 39,787,417.27 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The minimum and maximum Combined Loan-to-Value Ratios of the Group II
HELs are approximately 27.27% and 100.00%, respectively, and the weighted
average Combined Loan-to-Value Ratio of the Group II HELs is approximately
90.11%.
STATISTICAL CALCULATION DATE PRINCIPAL BALANCES OF GROUP II HELS
<TABLE>
<CAPTION>
Percentage of
Statistical
Range of Statistical Calculation Date Number of HELs Aggregate Statistical Calculation Calculation
Principal Balances Date Principal Balance Date Pool Balance
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$50,000.01 - $60,000.00 10 $ 561,757.06 1.41%
$60,000.01 - $70,000.00 16 $ 1,050,625.08 2.64%
$70,000.01 - $80,000.00 14 $ 1,073,510.67 2.70%
$80,000.01 - $90,000.00 22 $ 1,874,159.56 4.71%
$90,000.01 - $100,000.00 17 $ 1,619,245.70 4.07%
$100,000.01 - $110,000.00 18 $ 1,907,442.21 4.79%
$110,000.01 - $120,000.00 17 $ 1,975,575.84 4.97%
$120,000.01 - $130,000.00 16 $ 2,006,799.87 5.04%
$130,000.01 - $140,000.00 17 $ 2,299,357.27 5.78%
$140,000.01 - $150,000.00 12 $ 1,736,173.13 4.36%
$150,000.01 - $160,000.00 10 $ 1,551,930.68 3.90%
$160,000.01 - $170,000.00 7 $ 1,161,295.45 2.92%
$170,000.01 - $180,000.00 10 $ 1,751,948.00 4.40%
$180,000.01 - $190,000.00 6 $ 1,094,678.79 2.75%
$190,000.01 - $200,000.00 6 $ 1,178,109.20 2.96%
$200,000.01 - $225,000.00 17 $ 3,600,281.03 9.05%
$225,000.01 - $250,000.00 11 $ 2,557,398.31 6.43%
$250,000.01 - $275,000.00 7 $ 1,812,256.63 4.55%
$275,000.01 - $300,000.00 6 $ 1,701,713.10 4.28%
$300,000.01 - $325,000.00 4 $ 1,244,379.54 3.13%
$325,000.01 - $350,000.00 5 $ 1,690,765.83 4.25%
$350,000.01 - $375,000.00 2 $ 725,742.33 1.82%
$375,000.01 - $400,000.00 2 $ 771,763.07 1.94%
$400,000.01 - and above 6 $ 2,840,508.92 7.14%
--------------------------------------------------------------------------------------------------------------------------------
Total 258 $ 39,787,417.27 100.00%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The average Statistical Calculation Date Principal Balance of the Group
II HELs is approximately $154,214.80.
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
BEAR STEARNS
- --------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- --------------------------------------------------------------------------------
Computational Materials
MORTGAGED PROPERTIES SECURING GROUP II HELS
<TABLE>
<CAPTION>
Percentage of
Statistical
Property Type Number of HELs Aggregate Statistical Calculation Calculation Date
Date Principal Balance Pool Balance
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Condominium 17 $ 2,686,944.07 6.75%
Multi-Family 3 $ 745,542.73 1.87%
Planned Unit Development 34 $ 6,632,664.19 16.67%
Single-Family Dwelling 204 $ 29,722,266.28 74.70%
--------------------------------------------------------------------------------------------------------------------------------
Total 258 $ 39,787,417.27 100.00%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
GEOGRAPHIC DISTRIBUTION OF MORTGAGED PROPERTIES SECURING GROUP II HELS
<TABLE>
<CAPTION>
State Number of Initial Aggregate Statistical Calculation Percentage of Statistical Calculation
HELs Date Principal Balance Date Pool Balance
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
California 77 $ 17,182,229.83 43.19%
Conneticut 1 $ 499,280.82 1.25%
Florida 48 $ 5,212,965.20 13.10%
Georgia 7 $ 740,273.99 1.86%
Illinois 32 $ 4,228,252.93 10.63%
Maryland 7 $ 1,177,598.23 2.96%
Michigan 37 $ 4,535,472.74 11.40%
New Jersey 6 $ 731,450.94 1.84%
Ohio 27 $ 3,019,706.86 7.59%
Oregon 3 $ 377,584.68 0.95%
Virginia 6 $ 649,001.05 1.63%
Washington 7 $ 1,433,600.00 3.60%
--------------------------------------------------------------------------------------------------------------------------------
Total 258 $ 39,787,417.27 100.00%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
No more than approximately 1.89 % of the Group II HELs are
secured by Mortgaged Properties located in any single United States postal zip
code.
DEBT-TO-INCOME RATIOS OF GROUP II HELS
<TABLE>
<CAPTION>
Percentage of
Statistical
Range of Debt-to-Income Number of HELs Aggregate Statistical Calculation Calculation Date
Ratios Date Principal Balance Pool Balance
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
5.01% - 15.00% 2 $ 184,348.93 0.46%
15.01% - 20.00% 3 $ 383,875.86 0.96%
20.01% - 25.00% 13 $ 1,513,385.68 3.80%
25.01% - 30.00% 27 $ 3,479,056.51 8.74%
30.01% - 35.00% 44 $ 5,869,724.77 14.75%
35.01% - 40.00% 51 $ 8,394,471.78 21.10%
40.01% - 45.00% 65 $ 10,864,136.38 27.31%
45.01% - 50.00% 43 $ 7,046,533.22 17.71%
50.01% - 55.00% 10 $ 2,051,884.14 5.16%
--------------------------------------------------------------------------------------------------------------------------------
Total 258 $ 39,787,417.27 100.00%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The weighted average Debt-to-Income Ratios of the Group II HELs is
approximately 38.99%
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
BEAR STEARNS
- -------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- --------------------------------------------------------------------------------
Computational Materials
OCCUPANCY TYPE OF GROUP II HELS
<TABLE>
<CAPTION>
Occupancy Type Number of HELs Aggregate Statistical Calculation Percentage of Statistical
Date Principal Balance Calculation Date Pool Balance
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Non Owner Occupied 9 $ 1,206,921.22 3.03%
Owner Occupied 249 $ 38,580,496.05 96.97%
--------------------------------------------------------------------------------------------------------------------------------
Total 258 $ 39,787,417.27 100.00%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
CREDIT QUALITY OF GROUP II HELS
<TABLE>
<CAPTION>
Credit Quality Number of Initial Aggregate Statistical Calculation Percentage of Statistical
HELs Date Principal Balance Calculation Date Pool Balance
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Superior 35 $ 5,008,580.49 12.59%
Excellent 205 $ 32,475,136.92 81.62%
Good 14 $ 1,927,137.33 4.84%
Fair 4 $ 376,562.53 0.95%
--------------------------------------------------------------------------------------------------------------------------------
Total 258 $ 39,787,417.27 100.00%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ORIGINAL TERM TO STATED MATURITY OF GROUP II HELS
<TABLE>
<CAPTION>
Percentage of
Range of Original Terms to Number of HELs Aggregate Statistical Calculation Statistical Calculation
Stated Maturity (months) Date Principal Balance Date Pool Balance
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
359 - 360 258 $ 39,787,417.27 100.00%
--------------------------------------------------------------------------------------------------------------------------------
Total 258 $ 39,787,417.27 100.00%
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The weighted average Original Term to Stated Maturity of the Group II
HELs is approximately 360 months.
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
BEAR STEARNS
- --------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- --------------------------------------------------------------------------------
Computational Materials
AVERAGE LIFE SENSITIVITY TABLES
CLASS A-1
---------
CLASS A-1 (TO MATURITY)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% CPR 0% 10% 15% 20% 25% 30% 40%
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
AVERAGE LIFE (YEARS) 8.61 5.16 4.13 3.37 2.78 2.34 1.70
MODIFIED DURATION (YEARS) 6.17 3.98 3.29 2.76 2.34 2.00 1.50
FIRST PRINCIPAL PAYMENT 12/15/98 12/15/98 12/15/98 12/15/98 12/15/98 12/15/98 12/15/98
LAST PRINCIPAL PAYMENT 9/15/13 7/15/13 4/15/13 10/15/12 11/15/11 8/15/10 1/15/08
PRINCIPAL LOCKOUT (MONTHS) 0 0 0 0 0 0 0
PRINCIPAL WINDOW (MONTHS) 178 176 173 167 156 141 110
ILLUSTRATIVE YIELD @ PAR (30/360) 6.192 6.181 6.178 6.172 6.163 6.152 6.118
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A-1 (TO CALL)
- ------------------------------------------------------------------------------------------------------------------------------------
% CPR 0% 10% 15% 20% 25% 30% 40%
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE LIFE (YEARS) 8.58 5.03 3.94 3.17 2.59 2.16 1.56
MODIFIED DURATION (YEARS) 6.16 3.92 3.19 2.65 2.22 1.89 1.41
FIRST PRINCIPAL PAYMENT 12/15/98 12/15/98 12/15/98 12/15/98 12/15/98 12/15/98 12/15/98
LAST PRINCIPAL PAYMENT 12/15/12 7/15/10 8/15/08 1/15/07 9/15/05 8/15/04 2/15/03
PRINCIPAL LOCKOUT (MONTHS) 0 0 0 0 0 0 0
PRINCIPAL WINDOW (MONTHS) 169 140 117 98 82 69 51
ILLUSTRATIVE YIELD @ PAR (30/360) 6.191 6.168 6.154 6.139 6.122 6.103 6.059
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS A-2
---------
CLASS A-2 (TO MATURITY)
- ------------------------------------------------------------------------------------------------------------------------------------
% CPR 0% 5% 10% 14% 20% 25% 30%
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
AVERAGE LIFE (YEARS) 20.06 11.74 7.64 5.76 4.07 3.22 2.62
MODIFIED DURATION (YEARS) 10.52 7.12 5.19 4.19 3.20 2.63 2.21
FIRST PRINCIPAL PAYMENT 12/15/98 12/15/98 12/15/98 12/15/98 12/15/98 12/15/98 12/15/98
LAST PRINCIPAL PAYMENT 9/15/28 7/15/28 8/15/27 5/15/25 2/15/20 3/15/16 2/15/13
PRINCIPAL LOCKOUT (MONTHS) 0 0 0 0 0 0 0
PRINCIPAL WINDOW (MONTHS) 358 356 345 318 255 208 171
ILLUSTRATIVE YIELD @ PAR (30/360) 6.248 6.241 6.240 6.238 6.230 6.219 6.205
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A-2 (TO CALL)
- ------------------------------------------------------------------------------------------------------------------------------------
% CPR 0% 5% 10% 14% 20% 25% 30%
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE LIFE (YEARS) 20.00 11.53 7.24 5.36 3.75 2. 2.41
MODIFIED DURATION (YEARS) 10.51 7.07 5.07 4.05 3.04 2.49 2.08
FIRST PRINCIPAL PAYMENT 12/15/98 12/15/98 12/15/98 12/15/98 12/15/98 12/15/98 12/15/98
LAST PRINCIPAL PAYMENT 8/15/27 1/15/24 2/15/17 10/15/12 9/15/08 8/15/06 3/15/05
PRINCIPAL LOCKOUT (MONTHS) 0 0 0 0 0 0 0
PRINCIPAL WINDOW (MONTHS) 345 302 219 167 118 93 76
ILLUSTRATIVE YIELD @ PAR (30/360) 6.247 6.236 6.223 6.211 6.191 6.174 6.155
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
BEAR STEARNS
- --------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- --------------------------------------------------------------------------------
Computational Materials
PERCENTAGE OF CERTIFICATE BALANCE (1)(2)(3)
GROUP I
<TABLE>
<CAPTION>
PAYMENT DATE CPR
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
HEL CPR 0% 10% 15% 20% 25% 30% 40%
INITIAL......................................... 100 100 100 100 100 100 100
NOVEMBER 1999................................... 93 83 78 73 69 64 54
NOVEMBER 2000................................... 90 72 63 56 48 42 30
NOVEMBER 2001................................... 86 61 51 42 34 27 15
NOVEMBER 2002................................... 82 52 41 32 25 19 10
NOVEMBER 2003................................... 77 44 33 24 18 12 6
NOVEMBER 2004................................... 71 37 26 18 12 8 3
NOVEMBER 2005................................... 65 30 20 13 9 5 1
NOVEMBER 2006................................... 59 25 16 10 6 3 1
NOVEMBER 2007................................... 51 20 12 7 4 2 *
NOVEMBER 2008................................... 43 15 8 5 2 1 0
NOVEMBER 2009................................... 36 11 6 3 1 * 0
NOVEMBER 2010................................... 28 8 4 2 * 0 0
NOVEMBER 2011................................... 19 5 2 1 0 0 0
NOVEMBER 2012................................... 9 2 1 0 0 0 0
NOVEMBER 2013................................... 0 0 0 0 0 0 0
WEIGHTED AVERAGE LIFE TO 10% CALL (YEARS) (1)... 8.58 5.03 3.94 3.17 2.59 2.16 1.56
WEIGHTED AVERAGE LIFE TO MATURITY (YEARS) (2)... 8.61 5.16 4.13 3.37 2.78 2.34 1.70
</TABLE>
(1) ASSUMES THAT AN OPTIONAL TERMINATION IS EXERCISED ON THE FIRST
PAYMENT DATE ON WHICH THE CERTIFICATE BALANCE AS OF THE LAST
DATE OF THE RELATED DUE PERIOD IS LESS THAN OR EQUAL TO 10% OF THE
CERTIFICATE BALANCE.
(2) ASSUMES THE CERTIFICATES PAY TO MATURITY.
(3) ALL PERCENTAGES ARE ROUNDED TO THE NEAREST 1%.
(4) * IS LESS THAN 0.5% BUT GREATER THAN 0%.
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
BEAR STEARNS
- -------------------------------------------------------------------------------
IRWIN HOME EQUITY TRUST 1998-2
- --------------------------------------------------------------------------------
Computational Materials
PERCENTAGE OF CERTIFICATE BALANCE (1)(2)(3)
GROUP II
<TABLE>
<CAPTION>
PAYMENT DATE CPR
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
HEL CPR 0% 5% 10% 14% 20% 25% 30%
INITIAL......................................... 100 100 100 100 100 100 100
NOVEMBER 1999................................... 98 93 88 84 78 73 68
NOVEMBER 2000................................... 96 86 77 70 60 53 46
NOVEMBER 2001................................... 95 81 69 60 47 39 31
NOVEMBER 2002................................... 94 76 61 50 38 29 22
NOVEMBER 2003................................... 93 71 54 43 30 22 15
NOVEMBER 2004................................... 92 67 48 36 23 16 11
NOVEMBER 2005................................... 91 63 42 31 19 12 7
NOVEMBER 2006................................... 89 58 38 26 15 9 5
NOVEMBER 2007................................... 88 54 33 22 12 6 3
NOVEMBER 2008................................... 86 51 29 19 9 4 2
NOVEMBER 2009................................... 84 47 26 16 7 3 1
NOVEMBER 2010................................... 82 44 23 13 5 2 1
NOVEMBER 2011................................... 80 40 20 11 4 1 *
NOVEMBER 2012................................... 78 37 17 9 3 1 *
NOVEMBER 2013................................... 75 34 15 8 2 1 0
NOVEMBER 2014................................... 73 31 13 6 2 * 0
NOVEMBER 2015................................... 70 29 11 5 1 * 0
NOVEMBER 2016................................... 67 26 10 4 1 0 0
NOVEMBER 2017................................... 63 24 8 3 * 0 0
NOVEMBER 2018................................... 59 21 7 3 * 0 0
NOVEMBER 2019................................... 55 19 6 2 * 0 0
NOVEMBER 2020................................... 50 16 5 1 0 0 0
NOVEMBER 2021................................... 46 14 4 1 0 0 0
NOVEMBER 2022................................... 41 12 3 1 0 0 0
NOVEMBER 2023................................... 35 10 2 * 0 0 0
NOVEMBER 2024................................... 29 7 1 * 0 0 0
NOVEMBER 2025................................... 22 5 1 0 0 0 0
NOVEMBER 2026................................... 15 3 * 0 0 0 0
NOVEMBER 2027................................... 7 1 0 0 0 0 0
NOVEMBER 2028................................... 0 0 0 0 0 0 0
WEIGHTED AVERAGE LIFE TO 10% CALL (YEARS) (1)... 20.00 11.53 7.24 5.36 3.75 2.96 2.41
WEIGHTED AVERAGE LIFE TO MATURITY (YEARS) (2)... 20.06 11.74 7.64 5.76 4.07 3.22 2.62
</TABLE>
(1) ASSUMES THAT AN OPTIONAL TERMINATION IS EXERCISED ON THE FIRST
PAYMENT DATE ON WHICH THE CERTIFICATE BALANCE AS OF THE LAST DATE OF
THE RELATED DUE PERIOD IS LESS THAN OR EQUAL TO 10% OF THE
CERTIFICATE BALANCE.
(2) ASSUMES THE CERTIFICATES PAY TO MATURITY.
(3) ALL PERCENTAGES ARE ROUNDED TO THE NEAREST 1%.
(4) * IS LESS THAN 0.5% BUT GREATER THAN 0%.
Recipients of these Computational Materials must read and acknowledge the
attached document "STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING
ESTIMATES, AND OTHER INFORMATION" before using or relying on the information
contained herein. In addition, recipients of these Computational Materials may
only use or rely on the information contained herein if read in conjunction
with the related Prospectus and Prospectus Supplement. If you have not
received the statement described above or the related prospectus and
Prospectus Supplement, please contact your account executive at Bear, Stearns
& Co. Inc.
BEAR STEARNS
