-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EoZ+8WwthKg8aRL8J3EoXpwUv9j6FtudW8diUilnTRVcwqlnfhIoXvrY+7e6YYwr H1qLrxttGwx+e4JxHI8FAA== 0000914121-99-000184.txt : 19990225 0000914121-99-000184.hdr.sgml : 19990225 ACCESSION NUMBER: 0000914121-99-000184 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990222 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990224 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IMPERIAL CREDIT COMMERCIAL MORTGAGE ACCEPTANCE CORP CENTRAL INDEX KEY: 0001038320 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 333-26017 FILM NUMBER: 99548166 BUSINESS ADDRESS: STREET 1: 11601 WILSHIRE BLVD CITY: LOS ANGELES STATE: CA ZIP: 90025 BUSINESS PHONE: 3102311280 MAIL ADDRESS: STREET 1: 11601 WILSHIRE BLVD CITY: LOS ANGELES STATE: CA ZIP: 90025 8-K 1 CURRENT REPORTS SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES AND EXCHANGE ACT OF 1934 Date of Report: February 22, 1999 (Date of earliest event reported) Imperial Credit Commercial Mortgage Acceptance Corp. (Exact name of registrant as specified in its charter) California 333-61305 95-4649530 - ---------------------- --------------------------------------------------------- (State or Other (Commission (I.R.S. Employer Jurisdiction of File Number) Identification No.) Incorporation) 11601 Wilshire Boulevard, No. 2080 Los Angeles, CA 90025 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (310) 231-1280 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) ITEM 5. OTHER EVENTS. Attached as an exhibit is a Collateral and Structural Term Sheet (as defined in the no-action letter dated May 20, 1994 issued by the Securities and Exchange Commission to Kidder, Peabody Acceptance Corporation-I, Kidder, Peabody & Co. Incorporated and Kidder Structured Asset Corporation (the "Kidder Letter") as modified by a no-action letter (the "First PSA No-Action Letter") issued by the staff of the Commission on May 27, 1994 to the Public Securities Association (the "PSA") and as further modified by a no-action letter (the "Second PSA No-Action Letter") issued by the staff of the Commission on March 9, 1995 to the PSA) furnished to the Registrant by J.P. Morgan Securities Inc. and Prudential Securities Incorporated (the "Underwriters") in respect of the proposed offering of ICCMAC Multifamily and Commercial Trust 1999-1 Collateralized Mortgage Bonds, Series 1999-1 (the "Bonds"). The Bonds will be offered pursuant to a Prospectus and related Prospectus Supplement (together, the "Prospectus"), which will be filed with the Commission pursuant to Rule 424 under the Securities Act of 1933, as amended (the "Act"). The Bonds will be registered pursuant to the Act under the Registrant's Registration Statement on Form S-3 (No. 333-61305) (the "Registration Statement"). The Registrant hereby incorporates the Collateral and Structural Term Sheet by reference in the Registration Statement. The Collateral and Structural Term Sheet was prepared solely by the Underwriters, and the Registrant did not prepare or participate in the preparation of the Collateral and Structural Term Sheet. Any statement or information contained in the Collateral and Structural Term Sheet shall be deemed to be modified or superseded for purposes of the Prospectus and the Registration Statement by statements or information contained in the Prospectus. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibits Exhibit 99.1 Collateral and Structural Term Sheet Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on behalf of the Registrant by the undersigned hereunto duly authorized. IMPERIAL CREDIT COMMERCIAL MORTGAGE ACCEPTANCE CORP. By: /s/ Mark Karlan -------------------------- Name: Mark Karlan Title: President Date: February 23, 1999 Exhibit Index Exhibit No. Description Paper (P) or Electronic (E) 99.1 Collateral and Structural Term Sheet E EX-99.1 2 COLLATERAL AND STRUCTURAL TERM SHEET ICCMAC Multifamily and Commercial Trust 1999-1 Collateralized Mortgage Bonds $ 257,285,000 Additional information is available upon request. Information herein is believed to be reliable but J.P. Morgan and Prudential Securities Inc. do not warrant its completeness or accuracy. This information is furnished to you solely by J.P. Morgan and Prudential Securities Inc. and not by Imperial Credit Commercial Mortgage Investment Corp. or any of its affiliates. These materials are subject to change from time to time without notice. Past performance is not indicative of future results. Any description of the mortgage loans contained herein supersedes any previous collateral information and will be superseded by the final prospectus relating to the securities. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any security, and have been provided to you for informational purposes only and may not be relied upon by you in evaluating the merits of investing in the securities. Any investment decision with respect to the securities should be made by you based solely upon the information contained in the final prospectus relating to the securities. No assurance or representation can be made as to the actual rate or timing of principal payments or prepayments on any of the mortgage loans or the performance characteristics of the securities. This information was prepared in reliance on information regarding the mortgage loans furnished by the seller of the mortgage loans. J.P. Morgan and/or its affiliates and employees may hold a position or act as market maker in the financial instruments of any issuer discussed herein or act as underwriter, placement agent, advisor or lender to such issuer. J.P. Morgan Securities Inc. is a member of SIPC. Copyright 1999 J.P. Morgan & Co. Incorporated. Clients should contact analysts at and execute transactions through a J.P. Morgan entity in their home jurisdiction unless governing law permits otherwise. J.P. MORGAN & CO. PRUDENTIAL SECURITIES INCORPORATED IMPERIAL CAPITAL, LLC ICCMAC MULTIFAMILY AND COMMERCIAL TRUST 1999-1 COLLATERALIZED MORTGAGE BONDS $ 257,285,000 J.P. MORGAN: Brian Baker (trading) (212) 648-1413 Andy Taylor (trading) (212) 648-1413 Thomas Doherty (structuring) (212) 648-1413 Patrick Corcoran (research) (212) 648-6130 Michael Glover (product manager) (212) 648-0258 PRUDENTIAL SECURITIES: John Mulligan (trading) (212) 778-4365 Jake Kaercher (trading) (212) 778-4365 IMPERIAL CAPITAL: Samir Noriega (trading) (212) 490-6430 ICCMAC MULTIFAMILY AND COMMERCIAL TRUST 1999-1 COLLATERALIZED MORTGAGE BONDS $ 257,285,000 TRANSACTION OVERVIEW
RATING CURRENT LOAN AVG. PRINCIPAL (S&P/ SIZE % OF CREDIT TO LIFE WINDOW PRICE ERISA(5)/ CLASS DCR) ($)(1) TOTAL SUPPORT VALUE(2) (YRS.)(3) (MONTHS)(3) COUPON DESCRIPTION(4) PRICE($) TALK SMMEA - ------ ------------ --------------- -------- -------- --------- ------- ------------ -------------------- -------- ------ --------- A-1 AAA/AAA 100,000,000 34.2% 33.0% 41.2% 0.97 1 - 24 1 month LIBOR + __% 100-0 Yes/Yes A-2 AAA/AAA 95,890,000 67.0 33.0 41.2 3.44 24 - 63 1 month LIBOR + __% 100-0 Yes/Yes S AAAr/AAA (6) (6) Yes/Yes A-3 AAA/AA 17,542,000 73.0 27.0 44.8 5.64 63 - 73 1 month LIBOR + __% 100-0 Yes/Yes B AA/A 11,694,000 77.0 23.0 47.3 6.44 73 - 82 1 month LIBOR + __% 100-0 Yes/Yes C A/NR 14,618,000 82.0 18.0 50.4 7.35 82 - 95 1 month LIBOR + __% 100-0 Yes/No D BBB/NR 13,156,000 86.5 13.5 53.1 8.48 95 - 107 1 month LIBOR + __% 100-0 Yes/No E BBB-/NR 4,385,000 88.0 12.0 54.1 9.03 107 - 110 1 month LIBOR + __% 100-0 Yes/No RETAINED CLASSES(7) 35,089,478(8) 12.0 Total $ 292,374,478 100% 64.38%(9) - ------ ------------ --------------- -------- -------- --------- ------- --------
(1) Approximate, subject to change (2) The sum of the principal balance of each bond and the bonds senior to it, other than Class S, divided by the aggregate appraised value of the properties collateralizing the mortgage loan pool (3) Assumes a prepayment rate of 18% CPR, call not exercised, mortgage loan lockouts excluded, and based on a closing date of February 25, 1999 (4) Subject to the available funds cap and a maximum coupon of 14.0% (5) ERISA eligibility is subject to certain limitations described in the prospectus supplement under "Certain ERISA Considerations" (6) The Class S bonds will not accrue interest. The Class S bonds will be entitled to receive scheduled monthly payments in the amounts set forth on Annex B in the prospectus supplement, subject to certain limitations described in the prospectus supplement (7) Includes Classes F, G, H, X and the overcollateralization amount (Owner's Certificate). The Class X bonds will not accrue interest. The Class X bonds will be entitled to receive the scheduled monthly payments in the amounts set forth in Annex C in the prospectus supplement, subject to certain limitations described in the prospectus supplement (8) Total for Classes F, G, H and the overcollateralization amount (Owner's Certificate) (9) Weighted average from collateral MORTGAGE POOL CHARACTERISTICS The mortgage pool consists of 803 adjustable and fixed rate mortgage loans secured by one or more first liens on fee simple interests and for three instances leasehold interests in multifamily, retail, office and other commercial properties located in 29 states. The three largest geographic concentrations are Southern California (45.3%), Northern California (10.9%) and Oregon (8.3%). The mortgage loans will have an initial pool balance of $292,374,478 and individual principal balances as of the Cut-off-Date of at least $10,175 but not more than $2,879,410 with an average principal balance of approximately $364,103. The mortgage pool has a weighted average loan-to-value of 64.38% and a weighted average debt service coverage ratio of 1.524x. The mortgage pool is comprised of 67.4% ARMs and 32.6% fixed rate mortgages. MORTGAGE LOAN ORIGINATORS SOUTHERN PACIFIC BANK is a California licensed industrial loan company and wholly owned subsidiary of Imperial Credit Industries, Inc. and an affiliate of ICCMAC and ICCMIC. Southern Pacific Bank was incorporated in California in 1981. Southern Pacific Bank originates mortgage loans secured by multifamily residences and commercial properties located primarily in California, Colorado, Oregon, Washington and other areas in the United States, through its regional offices located in various states. Southern Pacific Bank also acquires mortgage loans through approved mortgage brokers and other financial institutions in accordance with the underwriting standards applicable to loans originated by it. Southern Pacific Bank originated 99.3% and acquired 0.7% of the loans in the mortgage pool. There is no direct relationship between Southern Pacific Bank and Southern Pacific Funding Corporation. DEAL SUMMARY LEAD MANAGER: J.P. Morgan & Co. CO- MANAGERS: Prudential Securities Incorporated Imperial Capital, LLC PRICING SPEED: 18% CPR DEPOSITOR: Imperial Credit Commercial Mortgage Acceptance Corp., a California corporation. SELLER: Imperial Credit Commercial Mortgage Investment Corp., a mortgage REIT, is a Maryland corporation and the corporate parent of the Depositor. MORTGAGE LOAN ORIGINATOR: The mortgage loans were either originated (99.3%) or acquired (0.7%) by Southern Pacific Bank MASTER SERVICER: Banc One Mortgage Capital Markets, LLC SPECIAL SERVICER: Banc One Mortgage Capital Markets, LLC TRUSTEE: LaSalle National Bank TRUSTEE WEBSITE: www.lnbabs.com RATING AGENCIES: Duff & Phelps Standard & Poor's -------------------------------- LEGAL STATUS: Public Offering CUT-OFF DATE: February 1, 1999 SETTLEMENT DATE: On or about March 10, 1999 DELIVERY: DTC, Cedelbank, and Euroclear FINAL DISTRIBUTION DATE: June 1, 2030 MONTHLY DISTRIBUTION DATE: 25th day of each month or, if any such 25th day in not a business day, then the next succeeding business day PAYMENT COMMENCING DATE: March 25, 1999, 0 day delay OPTIONAL REDEMPTION: 15% of original pool balance DEAL INFORMATION / ANALYTICS: Bloomberg, Intex, Charter Research, and The Trepp Group SMMEA ELIGIBLE: Classes A-1, A-2, S, A-3, and B ERISA ELIGIBLE: Classes A-1, A-2, S, A-3, B, C, D, and E (see footnote 5 of "Transaction Overview") TAX ELECTION: Debt for tax purposes STRUCTURAL OVERVIEW o Interest payments, or in the case of Class S, distributable amounts, will be pro rata to Classes A-1, A-2 and S; and then interest will be paid sequentially to Classes A-3, B, C, D, X, E, F and G Bonds o Class S distributable amount is equal to the lesser of (a) the amount corresponding to the Class S scheduled payment and the (b) excess of the available interest payment amount for such payment date, over the accrued bond interest payable to Classes A-1, A-2, A-3, B, C, D, and E o Principal payments, or in the case of Class X, distributable amounts, will be paid sequentially to Classes A-1, A-2, A-3, B, C, X, D, E, F and G Bonds, until each class is retired o Losses will first be born by the overcollaterization amount and then the Classes in reverse alphabetical order, from Class H up to Class A3 and then pro-rata to Classes A-1 and A-2 o If the principal balance of the mortgage pool is less than or equal to the aggregate bond balance of Classes A-1 and A-2 bonds the principal will be allocated pro rata to Classes A-1 and A-2 o The Class S distributable amount will have the same priority as interest on Classes A-1 and A-2 o All Classes offered (except Class S) will pay interest at a fixed spread to LIBOR on actual/360 basis subject to the available funds cap with a maximum coupon of 14.0%. The Class S scheduled payments are subject to funds available as described in the prospectus supplement. Any shortfall in payment of the scheduled amount will be paid immediately after Class E receives its interest and principal o Class S scheduled payments are: MONTHS PAYMENT AMOUNT ($) ---------------------------------- 1 to 6 400,000 7 to 12 210,000 13 to 18 345,000 19 to 24 255,000 25 to 30 190,000 31 to 36 155,000 37 to 42 135,000 43 to 48 125,000 49 to 54 115,000 55 to 60 95,000 o Any shortfall relating to the available funds cap will be made up in future periods, but will be payable after the payment of all amounts due on the Classes A-1, A-2, A-3, S, B, C, D, X, and E bonds in that period o The typical prepayment term for the fixed rate loans is a "5-4-3-2-1" structure. The typical prepayments terms for the ARMs are: - 1) if the mortgagor prepays the principal balance in excess of 20% of the original principal during any 12 month period then 6 months interest at the mortgage interest rate on the amount of prepayment in excess of 20% is due as a prepayment premium; - 2) if the mortgagor prepays the principal balance in excess of 5% of the original principal during any 12 month period then 6 months interest at the mortgage interest rate on the amount of prepayment in excess of 5% is due as a prepayment premium o Prepayment premiums collected on mortgage loans will not be passed through to the offered bonds AVERAGE LIFE SENSITIVITIES PREPAYMENT SPEEDS(1) (CPR)
12% 18% 24% 30% AVERAGE PRINCIPAL AVERAGE PRINCIPAL AVERAGE PRINCIPAL AVERAGE PRINCIPAL LIFE WINDOW LIFE WINDOW LIFE WINDOW LIFE WINDOW CLASS (YRS.) (MOS.) (YRS.) (MOS.) (YRS.) (MOS.) (YRS.) (MOS.) - ----------------------------------------------------------------------------------------------------------- A-1 1.4 1 - 36 1.0 1 - 24 0.7 1- 18 0.6 1 - 14 A-2 5.1 36 - 91 3.4 24 - 63 2.6 18 - 47 2.0 14 - 36 A-3 8.2 91 - 105 5.6 63 - 73 4.2 47 - 55 3.3 36 - 43 B 9.0 105 - 109 6.4 73 - 82 4.8 55 - 61 3.8 43 - 48 C 9.2 109 - 112 7.3 82 - 95 5.5 61 - 71 4.3 48 - 56 D 10.0 112 - 132 8.5 95 - 107 6.4 71 - 82 5.0 56 - 65 E 11.3 132 - 141 9.0 107 - 110 7.1 82 - 87 5.6 65 - 69
(1) Call not exercised, excludes mortgage loan lockouts, and based on a closing date of February 25, 1999 CLASS S YIELD PROFILE PREPAYMENT SPEEDS(1) (CPR) AMOUNT INVESTED 12% 18% 24% 30% - -------------------------------------------------------------------------------- $10,650,000 7.166% 7.166% 7.166% 7.166% (1) Call not exercised, excludes mortgage loan lockouts, and based on a closing date of February 25, 1999 COLLATERAL CHARACTERISTICS INITIAL POOL BALANCE: $292,374,478 NUMBER OF LOANS: 803 ARMS 554 (67.4% of total) FIXED RATE 249 (32.6% of total) AVERAGE LOAN BALANCE: $364,103 W.A. MORTGAGE RATE: 9.144% W.A. REMAINING TERM: 252 months W.A. CUT-OFF DATE DSCR: 1.524x W.A. CUT-OFF DATE LTV: 64.38% W.A. SEASONING: 16 months COLLATERAL SUMMARY In the following tables, Principal Balance refers to Aggregate Cut-Off Date Principal Balance. PROPERTY TYPES PROPERTY TYPE # OF LOANS PRINCIPAL BALANCE ($) % OF PRINCIPAL BALANCE - -------------------------------------------------------------------------------- Multifamily 556 181,036,284 61.9 Retail 89 40,855,763 14.0 Office 58 25,018,121 8.6 Mixed Commercial 25 15,917,302 5.4 Mixed Use 46 15,253,928 5.2 Mobile Home Park 8 6,226,043 2.1 Industrial 16 4,844,826 1.7 Lodging 1 2,033,589 0.7 Warehouse 2 633,388 0.2 Storage 1 295,339 0.1 Retail / Warehouse 1 259,895 0.1 - -------------------------------------------------------------------------------- Total: 803 $292,374,478 100.0% - -------------------------------------------------------------------------------- PRINCIPAL BALANCE BY STATE STATE # OF LOANS PRINCIPAL BALANCE ($) % OF PRINCIPAL BALANCE - -------------------------------------------------------------------------------- CA-South 409 132,322,446 45.3 CA-North 72 31,879,954 10.9 OR 55 24,125,329 8.3 AZ 59 22,247,652 7.6 WA 38 21,585,506 7.4 CO 54 17,053,323 5.8 TX 26 11,522,878 3.9 FL 21 5,928,705 2.0 NY 8 5,172,223 1.8 NJ 11 3,616,589 1.2 GA 5 2,201,965 0.8 NV 8 2,097,295 0.7 NM 2 2,048,324 0.7 MA 4 1,586,933 0.5 UT 4 1,531,623 0.5 CT 3 1,464,430 0.5 MD 1 921,802 0.3 IL 5 720,292 0.2 RI 2 544,210 0.2 NH 1 524,683 0.2 OK 1 503,171 0.2 ME 3 483,155 0.2 PA 1 475,404 0.2 NE 1 394,940 0.1 WI 2 285,711 0.1 WY 1 274,681 0.1 OH 2 268,110 0.1 MI 2 247,407 0.1 VA 1 207,799 0.1 ID 1 137,939 0.0 - -------------------------------------------------------------------------------- Total: 803 $292,374,478 100.0% - -------------------------------------------------------------------------------- CUT-OFF DATE DEBT SERVICE COVERAGE RATIOS(1) DSCR (X) # OF LOANS PRINCIPAL BALANCE ($) % OF PRINCIPAL BALANCE - -------------------------------------------------------------------------------- 0.001 - 0.250 1 139,051 0.0 0.751 - 1.000 12 3,360,670 1.1 1.001 - 1.250 82 30,333,383 10.4 1.251 - 1.500 332 139,259,316 47.6 1.501 - 1.750 194 70,698,844 24.2 1.751 - 2.000 105 27,896,103 9.5 2.001 - 2.250 30 8,360,995 2.9 2.251 - 2.500 23 5,041,340 1.7 2.501 - 2.750 7 1,717,054 0.6 2.751 - 3.000 9 4,734,927 1.6 3.001 - 3.250 2 406,369 0.1 3.751 - 4.000 1 138,848 0.0 4.001 - 4.250 2 160,420 0.1 4.251 - 4.500 1 26,279 0.0 6.001 - 6.250 1 58,543 0.0 6.251 - 6.500 1 42,335 0.0 - -------------------------------------------------------------------------------- Total: 803 $292,374,478 100.0% - -------------------------------------------------------------------------------- Weighted Average: 1.524x (1) The Debt Service Coverage Ratio (DSCR) is defined as the ratio of the property's underwritten net operating income to the annual debt service payment required by the Mortgage Loan. CUT-OFF DATE LTV RATIOS(1) LTV (%) # OF LOANS PRINCIPAL BALANCE ($) % OF PRINCIPAL BALANCE - -------------------------------------------------------------------------------- 0.01 - 5.00 2 21,430 0.0 5.01 - 10.00 4 231,338 0.1 10.01 - 15.00 3 252,427 0.1 15.01 - 20.00 1 149,165 0.1 20.01 - 25.00 6 1,038,047 0.4 25.01 - 30.00 7 1,193,916 0.4 30.01 - 35.00 8 1,767,130 0.6 35.01 - 40.00 16 3,543,949 1.2 40.01 - 45.00 23 9,737,605 3.3 45.01 - 50.00 38 11,299,121 3.9 50.01 - 55.00 58 23,262,284 8.0 55.01 - 60.00 87 29,747,590 10.2 60.01 - 65.00 147 51,858,435 17.7 65.01 - 70.00 181 61,569,432 21.1 70.01 - 75.00 184 81,262,371 27.8 75.01 - 80.00 23 12,382,493 4.2 80.01 - 85.00 2 384,535 0.1 85.01 - 90.00 7 1,222,997 0.4 90.01 - 95.00 3 586,630 0.2 95.01 - 100.00 2 338,898 0.1 100.01 or greater 1 524,683 0.2 - -------------------------------------------------------------------------------- Total: 803 $292,374,478 100.0% - -------------------------------------------------------------------------------- Weighted Average: 64.4% (1) LTV is defined as the ratio between the principal balance of the mortgage loan as of the Cut-off Date and the appraised value of the related mortgaged property. REMAINING TERM TO MATURITY REMAINING TERM TO # OF LOANS PRINCIPAL BALANCE ($) % OF PRINCIPAL MATURITY (MONTHS) BALANCE - -------------------------------------------------------------------------------- Less than or equal to 12 4 641,855 0.2 13 - 24 4 488,627 0.2 25 - 36 7 1,670,603 0.6 37 - 48 11 1,598,761 0.5 49 - 60 1 163,510 0.1 61 - 72 19 4,741,970 1.6 73 - 84 4 1,214,159 0.4 85 - 96 1 103,887 0.0 97 - 108 54 28,500,267 9.7 109 - 120 155 62,524,142 21.4 121 - 132 2 333,611 0.1 157 - 168 8 4,655,960 1.6 217 - 228 12 7,535,640 2.6 229 - 240 3 654,103 0.2 277 - 288 12 5,008,408 1.7 289 - 300 2 830,596 0.3 301 - 312 2 412,262 0.1 313 - 324 8 1,942,026 0.7 325 - 336 4 737,093 0.3 337 - 348 415 140,151,481 47.9 349 - 360 75 28,465,516 9.7 - -------------------------------------------------------------------------------- Total: 803 $292,374,478 100.0% - -------------------------------------------------------------------------------- Weighted Average: 252 months YEAR OF FIRST PAYMENT YEAR # OF LOANS PRINCIPAL BALANCE ($) % OF PRINCIPAL BALANCE - -------------------------------------------------------------------------------- 1974 5 392,188 0.1 1976 1 68,080 0.0 1977 3 224,833 0.1 1979 1 157,840 0.1 1980 1 57,421 0.0 1984 1 11,255 0.0 1988 1 262,759 0.1 1991 3 287,806 0.1 1992 2 502,164 0.2 1994 6 1,108,400 0.4 1995 14 3,597,934 1.2 1996 8 1,539,593 0.5 1997 366 129,728,986 44.4 1998 391 154,435,221 52.8 - -------------------------------------------------------------------------------- Total: 803 $292,374,478 100.0% - -------------------------------------------------------------------------------- CUT-OFF DATE NOTE RATES # OF LOANS PRINCIPAL BALANCE % OF PRINCIPAL MORTGAGE INTEREST RATES (%) ($) BALANCE - -------------------------------------------------------------------------------- 5.501 - 6.000 1 175,882 0.1 7.001 - 7.500 14 7,197,434 2.5 7.501 - 8.000 27 14,218,048 4.9 8.001 - 8.500 56 29,063,083 9.9 8.501 - 9.000 266 90,003,055 30.8 9.001 - 9.500 197 64,928,859 22.2 9.501 - 10.000 146 58,148,821 19.9 10.001 - 10.500 48 18,883,899 6.5 10.501 - 11.000 21 4,776,654 1.6 11.001 - 11.500 12 2,285,784 0.8 11.501 - 12.000 10 2,105,971 0.7 12.001 - 12.500 2 414,426 0.1 13.001 - 13.500 1 57,421 0.0 13.501 - 14.000 1 103,887 0.0 15.001 - 15.500 1 11,255 0.0 - -------------------------------------------------------------------------------- Total: 803 $292,374,478 100.0% - -------------------------------------------------------------------------------- Weighted Average: 9.14% CUT-OFF DATE PRINCIPAL BALANCES PRINCIPAL BALANCE ($) # OF LOANS PRINCIPAL BALANCE ($) % OF PRINCIPAL BALANCE - -------------------------------------------------------------------------------- 1 - 100,000 45 3,321,534 1.1 100,001 - 200,000 285 43,282,400 14.8 200,001 - 300,000 170 41,994,095 14.4 300,001 - 400,000 88 30,847,867 10.6 400,001 - 500,000 64 28,816,290 9.9 500,001 - 600,000 33 18,271,411 6.2 600,001 - 700,000 24 15,720,376 5.4 700,001 - 800,000 15 11,282,425 3.9 800,001 - 900,000 18 15,309,437 5.2 900,001 - 1,000,000 12 11,275,993 3.9 1,000,001 - 1,200,000 16 17,558,763 6.0 1,200,001 - 1,400,000 12 15,575,692 5.3 1,400,001 - 1,600,000 8 11,803,370 4.0 1,600,001 - 1,800,000 3 5,100,094 1.7 1,800,001 - 2,000,000 3 5,729,590 2.0 2,000,001 - 2,200,000 2 4,158,756 1.4 2,200,001 - 2,500,000 4 9,446,975 3.2 2,800,001 - 2,900,000 1 2,879,410 1.0 - -------------------------------------------------------------------------------- Total: 803 $292,374,478 100.0% - -------------------------------------------------------------------------------- Average: $364,103 ARM LIFE CAP ARM LIFE CAP (%) # OF LOANS PRINCIPAL BALANCE ($) % OF PRINCIPAL BALANCE - -------------------------------------------------------------------------------- 11.501 - 12.000 1 918,337 0.5 12.001 - 12.500 8 2,960,137 1.5 12.501 - 13.000 7 2,475,587 1.3 13.001 - 13.500 276 96,646,270 49.0 13.501 - 14.000 199 73,752,570 37.4 14.001 - 14.500 37 14,584,017 7.4 14.501 - 15.000 13 1,886,233 1.0 15.001 - 15.500 4 1,141,965 0.6 15.501 - 16.000 2 928,128 0.5 16.001 - 16.500 4 1,181,801 0.6 17.001 - 17.500 1 442,111 0.2 17.501 - 18.000 2 183,919 0.1 - -------------------------------------------------------------------------------- Total: 554 $197,101,075 100.0% - -------------------------------------------------------------------------------- Weighted Average: 13.67% MORTGAGE LOAN TYPE
% OF PRINCIPAL PRINCIPAL INDEX # OF LOANS BALANCE ($) BALANCE WAC MARGIN PERIODIC CAP LIFE CAP - ---------------------------------------------------------------------------------------------------------------- Fixed 249 95,273,403 32.6 9.04 n/a n/a n/a 6 Month LIBOR 468 158,159,048 54.1 9.37 4.05 1.70 13.68 1 Year CMT 58 33,626,610 11.5 7.99 3.23 1.53 13.38 Prime 28 5,315,417 1.8 11.59 3.60 2.00 15.26 - ---------------------------------------------------------------------------------------------------------------- Total: 803 $292,374,478 100.0% 9.14% 3.90% 1.68% 13.67% - ----------------------------------------------------------------------------------------------------------------
ISSUER ICCMAC Multifamily and Commercial Trust 1999-1 ICCMAC Multifamily and Commercial Trust 1999-1 (the "Issuer") is a business trust to be formed under the laws of the State of Delaware pursuant to the Deposit Trust Agreement (the "Deposit Trust Agreement") between Imperial Credit Commercial Mortgage Acceptance Corp. (the "Depositor") and the Owner Trustee, for the transactions described in the prospectus supplement. The Deposit Trust Agreement constitutes the "governing instrument" under the laws of the State of Delaware relating to business trusts. Ownership of the Issuer will be evidenced by the ownership certificates (the "Ownership Certificates"). The Depositor initially will hold the Ownership Certificates, but may transfer such Ownership Interests only to an affiliate structured substantially similar to the Depositor. The Depositor, a California corporation, is a direct wholly-owned subsidiary of Imperial Credit Commercial Mortgage Investment Corp. ("ICCMIC"). See "The Depositor" in the accompanying prospectus. After its formation, the Issuer generally will not engage in any activity other than (i) acquiring, holding and, pursuant to the Indenture, pledging the Mortgage Loans and the other assets of the Issuer and proceeds therefrom, (ii) issuing the Bonds and the Ownership Certificate, (iii) making payments on the Bonds and the Ownership Certificate and (iv) engaging in other activities that are necessary, suitable or convenient to accomplish the foregoing or are incidental thereto or connected therewith. The assets of the Issuer will consist of the Mortgage Loans and certain related assets. The Issuer's principal offices are in Wilmington, Delaware, in care of Wilmington Trust Company, as Owner Trustee. There is no direct relationship between ICCMIC and Southern Pacific Funding Corporation. ICCMIC is a public externally managed hybrid mortgage REIT (ticker symbol "ICMI") with a market capitalization as of February 19, 1999 of approximately $254.7 million. The company was incorporated in Maryland on July 31, 1997 to invest in multi-family and commercial mortgage loans, interests in mortgage-backed securities and real property. UNDERWRITING GUIDELINES AND PROCESS The Mortgage Loans were generally underwritten by the Loan Originator pursuant to the Loan Originator's Multifamily and Commercial Lending Program. The Loan Originator began underwriting mortgage loans in accordance with such standards in February 1994. Typically, the adjustable rate multifamily loans are 30-year term fully amortizing loans secured by apartment buildings with 5 or more units and the commercial loans are 30-year term fully amortizing loans secured by office buildings, shopping centers, mobile home parks, industrial properties and other approved property types. Mortgage Loans underwritten pursuant to the Multifamily and Commercial Lending Program have maximum loan amounts and loan-to-value ratios ("LTV") and minimum DSCRs which are determined from time to time by the Loan Committee of the Board of Directors of the Loan Originator (the "Loan Committee"). Appraisals and field inspections (performed by outside and certified inspectors) and Lender's title insurance are required for each multifamily and commercial loan. Under the Multifamily and Commercial Lending Program standards in effect as of the Cut-Off Date, the maximum loan amount is generally $3,000,000, the maximum LTV is generally 80% of the appraised value of the mortgaged property for multifamily loans and 75% for commercial loans, and the minimum DSCR is generally 1.15 to 1.00, based on the applicable level of the related index and the related note margin, for multifamily loans, and generally 1.20 to 1.00, based on the applicable level of the related index and the related note margin, for commercial loans. However, senior management of the Loan Originator may approve a higher loan amount, a lower DSCR or a higher LTV if it is determined that borrower has a strong financial position, good credit and good property management skills and/or pledges additional collateral. With respect to mortgage loans secured by seasoned multifamily properties, either 75%-85% of the living units (or such higher level necessary to cover debt service and pay all other expenses) must be occupied at rent levels that support the appraised value of the mortgaged property, or an appropriate holdback of loan proceeds must be established until the required occupancy level is met. For newly constructed properties, a lower occupancy level may be approved by the Loan Committee of the Loan Originator. The Loan Originator's underwriting standards under the Multifamily and Commercial Lending Program are primarily intended to assess the economics of the mortgaged property and the financial capabilities, credit standing and managerial ability of the borrower. In determining whether a loan should be made, the Loan Originator considers, among other things, the acceptability of the security property, the reliability of the income stream from the property, the creditworthiness of the mortgagor, the borrower's income, liquid assets and liabilities, the borrower's management experience, DSCRs, the borrower's overall financial position and the adequacy of such property as collateral for the mortgage loan. While the Loan Originator's primary consideration in underwriting a mortgage loan is the property securing the mortgage loan, sufficient documentation on the borrower is required to establish the financial strength and ability of the borrower to successfully operate the property and meet its obligations under the note and deed of trust. The majority of the mortgage loans originated by the Loan Originator provide for recourse against the related borrower. See "Risk Factors--Nonrecourse Loans Limit Remedies Following Borrowers Default." The Loan Originator's Multifamily and Commercial Lending Program requires that the property and records regarding the property be inspected to determine the number of units that can be rebuilt under current zoning requirements, the number of buildings on the property, the type of construction materials used, the proximity of the property to natural hazards, flood zones and fire stations and whether there are any environmental factors and whether a tract map has been recorded. The property must front on publicly dedicated and maintained streets with provisions for adequate and safe ingress and egress. Properties that share ingress and egress through an easement or private road must have a recorded non-exclusive easement. Recreational facilities and amenities, if any, must be located on site and be under the exclusive control of the owner of the premises and should be consistent with the project and competitive in the marketplace. If available, engineering reports concerning the condition of the major building components of the property are reviewed as is a ground lease analysis if the property is on leased ground. Also, the title is reviewed to determine if there are any covenants, conditions and restrictions, easements or reservations of mineral interests in the property. The properties are appraised by independent appraisers approved by the Loan Originator. In addition to the considerations set forth above, with respect to mortgage loans secured by commercial properties, the Loan Originator's lending policies typically require that the commercial usage be permitted under local zoning and use ordinances and the utilization of the commercial space be compatible with the property and neighborhood. If the commercial property is an office building, the office building must have a demonstrated occupancy history, must be located in a good office market area and in a conforming neighborhood, must have on-site parking and must be fire sprinkler equipped according to zoning codes, a compatible tenant mix and no adverse asbestos risks. Industrial properties must be located in a conforming industrial marketplace and may not be used for the production, storage or treatment of toxic waste. Retail properties must be highly visible and located on a heavily traveled thoroughfare and typically have tenants on term leases. The Loan Originator may not make a loan secured by a property that has any of the following characteristics: inadequate maintenance or repairs as determined by the Loan Originator, the property is subject to covenants, conditions and restrictions unacceptable to the Loan Originator, there exists or potentially exists hazardous geological conditions, the property is not to code or the cost of restoring the property to code is prohibitive or there exists or potentially exists contamination by hazardous toxic materials in quantities or ways that violate or would violate applicable law. The Loan Originator has stated that it analyzes the financial statements of the borrower to determine the borrower's equity position, particularly as it relates to real estate mortgage demands on equity. If the borrower's holdings are encumbered so that the debt service requirements consume a high percentage of the rental income from the mortgaged property, or consist substantially of unimproved or underimproved properties having little or no gross income, the Loan Originator analyzes whether the borrower will be able to meet all of the mortgaged property's loan obligations (expenses, debt service and equity return). In addition to DSCRs, the borrower's income and expense ratios are calculated and the borrower's investment policy is analyzed. In addition to the income from the mortgaged property, the Loan Originator also evaluates the borrower's income as a possible secondary source of repayment for the mortgage loan. In analyzing such income, the Loan Originator considers, among other factors, employment or business history of the borrower and the stability and seasonality of the borrower's current employment or business. If the borrower derives income from rental property, the Loan Originator evaluates the experience of the manager of the rental property, type of tenancy and the cash flow generated by the borrower's real estate portfolio. The Loan Originator also reviews the borrower's assets, liabilities and credit history to determine the borrower's ability and willingness to repay debts. In general, the Loan Originator will not make a mortgage loan to a borrower who has a history of slow payments or delinquencies, bankruptcies, collection actions, foreclosures or judgments against the borrower without adequate explanations and verifications. The information concerning the underwriting guidelines of the Loan Originator set forth above has been provided by the Loan Originator and none of the Issuer, the Mortgage Loan Seller, the Depositor or the Underwriters makes any representation or warranty as to the accuracy thereof. -----END PRIVACY-ENHANCED MESSAGE-----