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Previous: STRATEGIST INCOME FUND INC, NSAR-A, 1999-01-28 |
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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): January 26, 1999
BEAR STEARNS ASSET BACKED SECURITIES, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 333-9532 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
----- -------
- ------------------------------------------------------------------------------
<PAGE>
Item 5. Other Events.
- ------ ------------
Filing of Computational Materials
- ---------------------------------
In connection with the proposed offering of the Irwin Home Equity
Corporation Home Equity Asset Backed Certificates, Series 1999-1 (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 1999-1 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 January 26,
1999.
<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: January 28, 1999
<PAGE>
Exhibit Index
-------------
Exhibit Page
- ------- ----
99.1 The Computational Materials, filed on Form 8-K 6
dated January 26, 1999
<PAGE>
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
NEW YORK o SAN FRANCISCO New York, New York 10167
FRANKFORT o GENEVA o HONG KONG (212) 272-2000; (212) 272-7294 fax
LONDON o PARIS o TOKYO
- --------------------------------------------------------------------------------
Irwin Home Equity Trust 1999-1: Computational Materials
- --------------------------------------------------------------------------------
Fax to: Date: 1/20/99
Company: # Pages (incl. cover):
Fax No: Phone No:
- --------------------------------------------------------------------------------
From: Phone No:
- --------------------------------------------------------------------------------
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES,
PRICING ESTIMATES, AND OTHER INFORMATION
The information contained in the attached materials (the "Information") may
include various forms of performance analysis, security characteristics and
securities pricing estimates for the securities addressed. Please read and
understand this entire statement before utilizing the Information. The
Information is provided solely by Bear Stearns, not as agent for any issuer,
and although it may be based on data supplied to it by an issuer, the issuer
has not participated in its preparation and makes no representations regarding
its accuracy or completeness. Should you receive Information that refers to
the "Statement Regarding Assumptions and Other Information," please refer to
this statement instead.
The Information is illustrative and is not intended to predict actual results
which may differ substantially from those reflected in the Information.
Performance analysis is based on certain assumptions with respect to
significant factors that may prove not to be as assumed. You should understand
the assumptions and evaluate whether they are appropriate for your purposes.
Performance results are based on mathematical models that use inputs to
calculate results. As with all models, results may vary significantly
depending upon the value of the inputs given. Inputs to these models include
but are not 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
- ------------------------------------------------------------------------------
Computational Materials
The information set forth herein is dated as of January 20, 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 Corporation
Home Equity Asset Backed
Certificates, Series 1999-1.
Certificates Offered.................... The Class A-1 Certificates, the
Class A-2 Certificates, the
Class A-3 Certificates and the
Class A-4 Certificates
(collectively, 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 1999-1,
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.
Trustee................................. Norwest Bank Minnesota, National
Association, a national banking
association.
Cut-Off Date............................ The close of business on January
31, 1999.
Issue Date.............................. On or about February 25, 1999
(the "Issue Date").
Original Class A-1 Principal Balance.... $72,300,000
Original Class A-2 Principal Balance ... $26,300,000
Original Class A-3 Principal Balance ... $22,200,000
Original Class A-4 Principal Balance ... $29,200,000
First Remittance Date................... March 15, 1999. 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
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Irwin Home Equity Trust 1998-2
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Computational Materials
Service based on the presence of
the Certificate Insurance
Policy. 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.
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 1999-1 REMIC.
The assets of the 1999-1 REMIC
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 a pool
of Home Equity Loans (the "Home
Equity Loan Pool"), evidenced by
promissory notes and secured by
mortgages or deeds of trust on
residential one-to-four-family
properties (such properties, the
"Mortgaged Properties").
In addition, the Depositor has
caused Ambac Assurance
Corporation (the "Certificate
Insurer") to issue a certificate
guaranty insurance policy (the
"Certificate Insurance Policy"),
for the benefit of the Class A
Certificateholders, pursuant to
which it will guarantee certain
payments to the Trustee for the
benefit of the 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 1999-1
REMIC, except under limited
circumstances. Beneficial Owners
may elect to hold their
interests through The Depository
Trust Company ("DTC"), in the
United States, or 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 Home Equity Loan Pool as
of the close of business on
December 31, 1998 (the
"Statistic Calculation Date")
Unless otherwise indicated, all
percentages set forth are based
upon the aggregate Principal
Balances of the Home Equity
Loans as of the Statistic
Calculation Date, which was
$160,522,162.38.
The Home Equity Loans will
consist of a pool of fixed rate
closed-end home equity loans
secured by first or subordinate
priority liens and having
original terms to maturity of
not greater than 30 years. The
security for the Home Equity
Loans will be mortgages or deeds
of trust on Mortgaged
Properties, which
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
<PAGE>
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Irwin Home Equity Trust 1998-2
- ------------------------------------------------------------------------------
Computational Materials
provide for substantially equal
payments in an amount sufficient
to amortize the 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 36.32% of the Home
Equity Loans are secured by
Mortgaged Properties located in
California, approximately 9.27%
of the Home Equity Loans are
secured by Mortgaged Properties
located in selected metropolitan
markets in Florida,
approximately 7.30% of the Home
Equity Loans are secured by
Mortgaged Properties located in
selected metropolitan markets in
Michigan and approximately 7.58%
of the 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 Home
Equity Loans was approximately
10.46%.
Interest; Class A-1 Pass-Through Rate... The Class A-1 Pass-Through Rate
will be equal to the sum of
One-Month LIBOR plus a fixed
margin of 0.__%. After the
Optional Termination Date, the
fixed margin 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 the actual number of days
elapsed since the previous
Remittance Date.
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
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
<PAGE>
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Irwin Home Equity Trust 1998-2
- ------------------------------------------------------------------------------
Computational Materials
calculations will be based on an
assumed year of 360 days
consisting of twelve 30-day
months.
Interest; Class A-3 Pass-Through Rate... ____%. The Class A-3 Pass-Through
Rate after the Optional
Termination Date shall be
increased by 0.75% (75 basis
points) per annum. Interest on
the Class A-3 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-3
Pass-Through Rate on the Class
A-3 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-3
Interest Distribution Amount").
For purposes of accrual and
payment of interest on the Class
A-3 Certificates, all
calculations will be based on an
assumed year of 360 days
consisting of twelve 30-day
months.
Interest; Class A-4 Pass-Through Rate... ____%. The Class A-4 Pass-Through
Rate after the Optional
Termination Date shall be
increased by 0.75% (75 basis
points) per annum. Interest on
the Class A-4 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-4
Pass-Through Rate on the Class
A-4 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-4
Interest Distribution Amount").
For purposes of accrual and
payment of interest on the Class
A-4 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 (or related REO
Property) is the outstanding
principal balance of such Home
Equity Loan as of the end of the
calendar month preceding such
date of determination. 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 1999-1 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 1999-1 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-3 Principal Balance"
represents the maximum specified
dollar amount of principal to
which the Holders of the Class
A-3 Certificates are entitled
from the future cash flow on the
assets in the 1999-1 REMIC. The
"Class A-3 Principal Balance" at
any time is equal to the Class
A-3 Principal Balance as of the
Cut-Off Date (the "Original
Class A-3 Principal Balance")
minus the aggregate, cumulative
amounts actually distributed as
principal to
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
<PAGE>
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Irwin Home Equity Trust 1998-2
- ------------------------------------------------------------------------------
Computational Materials
the Class A-3
Certificateholders. The "Class
A-4 Principal Balance"
represents the maximum specified
dollar amount of principal to
which the Holders of the Class
A-4 Certificates are entitled
from the future cash flow on the
assets in the 1999-1 REMIC. The
"Class A-4 Principal Balance" at
any time is equal to the Class
A-4 Principal Balance as of the
Cut-Off Date (the "Original
Class A-4 Principal Balance")
minus the aggregate, cumulative
amounts actually distributed as
principal to the Class A-4
Certificateholders. The "Class A
Principal Balance" refers to
each of the Class A-1 Principal
Balance, the Class A-2 Principal
Balance, the Class A-3 Principal
Balance and the Class A-4
Principal Balance.
The Holders of Class A
Certificates are entitled to
receive certain monthly
distributions of principal on
each Remittance Date which
generally reflect collections of
principal on the Home Equity
Loans during the prior calendar
month (the "Due Period").
The "Class A Principal
Distribution Amount" for any
Remittance Date will be the
lesser of:
(a) the excess of (i) the
Available Amount plus any
Insured Payment over (ii) the
aggregate Interest Distribution
Amount for the Class A
Certificates, and
(b) an amount equal to (X) the
sum, without duplication, of:
(i) that portion of all
scheduled installments of
principal in respect of the Home
Equity Loans 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 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, to the
extent such Substitution
Adjustments are actually
received by the Trustee,
(iv) with respect to each Home
Equity Loan 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,
(vi) any Subordination Deficit,
and
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
<PAGE>
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Irwin Home Equity Trust 1998-2
- ------------------------------------------------------------------------------
Computational Materials
(vii) the proceeds received by
the Trust Fund following any
termination of the 1999-1 REMIC
carried out in accordance with a
plan of complete liquidation or
pursuant to the optional
termination of the 1999-1 REMIC
by the Master Servicer, the
Holder of the Class R
Certificate or the Certificate
Insurer in accordance with the
Pooling and Servicing Agreement,
minus (Y) any
Overcollateralization Release
Amount.
The "Available Amount" on any
Remittance Date equals (i) the
Master Servicer Remittance
Amount, minus (ii) the sum of
the Trustee Fee and the amount
owed to the Certificate Insurer
as premium for the Certificate
Insurance Policy.
The "Master Servicer Remittance
Amount" is generally equal to
the sum of (i) all unscheduled
collections of principal and
interest on the 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 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 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 Home
Equity Loans pursuant to the
Pooling and Servicing Agreement.
The "Master Servicer Remittance
Date" is the fourteenth day of
each month.
The "Overcollateralization
Increase Amount" is equal to the
lesser of (i) the Excess Spread,
and (ii) the
Overcollateralization Deficiency
Amount.
The "Excess Spread" shall mean
the excess, if any, of the
Available Amount over the sum of
the (x) aggregate Interest
Distribution Amount for all
Class A Certificates, and (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 Class A Certificates.
The "Overcollateralization
Deficiency Amount" with respect
to any date of determination, is
equal to the excess, if any, of
the Overcollateralization Target
Amount over the
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
any date of determination, is
equal to the excess, if any, of
the Overcollateralization Amount
over the Overcollateralization
Target Amount.
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
<PAGE>
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The "Overcollateralization
Amount" with respect to each
Remittance Date, is the excess,
if any, of (i) the aggregate
Principal Balance of the Home
Equity Loans, as of the close of
business on the last day of the
related Due Period over (ii) the
aggregate Certificate Principal
Balance of the Class A
Certificates, as of such
Remittance Date (after taking
into account the related
Principal Distribution Amount,
other than the
Overcollateralization Increase
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. The
actual amount distributed with
respect to the Class A-3
Certificates on any Remittance
Date is the "Class A-3
Distribution Amount" for such
Remittance Date. The actual
amount distributed with respect
to the Class A-4 Certificates on
any Remittance Date is the
"Class A-4 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 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
Available Amount. 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 Home Equity Loans and any
Remittance Date, is the excess,
if any, of (a) the aggregate of
the Class A Principal Balance,
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 Home
Equity Loans as of the end of
the related Due Period.
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.
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
<PAGE>
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Irwin Home Equity Trust 1998-2
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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 Policy.
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, the
Overcollateralization Amount
will equal zero. As a result of
the application of the Excess
Spread in reduction of the
principal balance of the Class
A Certificates, 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
Policy
The Class A Certificateholders
will have the benefit of the
Certificate Insurance Policy,
discussed more fully below.
The Certificate Insurer ................ Ambac Assurance Corporation (the
"Certificate Insurer").
Certificate Insurance Policy............ The Certificate Insurer will
issue a Certificate Guaranty
Insurance Policy (the
"Certificate Insurance
Policy"), 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 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
aggregate Interest Distribution
Amount for the Class A
Certificates over the Available
Amount and (ii) any
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
the Certificate Insurance
Policy is referred to herein as
an "Insured Payment." The
Certificate Insurer will be
entitled to
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
<PAGE>
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Irwin Home Equity Trust 1998-2
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Computational Materials
reimbursement for all Insured
Payments together with interest
thereon.
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 1999-1 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
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
<PAGE>
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Irwin Home Equity Trust 1998-2
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Computational Materials
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.
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
1999-1 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
1999-1 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 on any date on
which the Class A Principal
Balance is less than 10% of the
aggregate Principal Balances of
the Home Equity Loans as of the
Cut-Off Date, by purchasing
from the 1999-1 REMIC on the
next succeeding Remittance
Date, all of the property 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 and each REO Property
acquired in respect of a Home
Equity Loan 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
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
<PAGE>
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Irwin Home Equity Trust 1998-2
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Computational Materials
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.
ERISA Considerations.................... Afiduciary 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 1999-1
REMIC, provided that certain
conditions are satisfied.
Legal Investment........................ The Class A Certificates will
not 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 the Trust Fund as a real
estate mortgage investment
conduit ( "1999-1 REMIC") for
federal income tax purposes.
The Class A Certificates will
be designated as the regular
interests in the 1999-1 REMIC
and the Class R Certificates
will be designated as the
residual interest in the 1999-1
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.
BEAR STEARNS
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