-----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, WPk5QtX+WQ/z82dqMKJndx/lVGKBEnXpDBnDONBAuGNhOS2CK6eQvlqBuA91qFMR dsGLoivrKxxqzLFFOFnMiw== 0000891092-97-000264.txt : 19970716 0000891092-97-000264.hdr.sgml : 19970716 ACCESSION NUMBER: 0000891092-97-000264 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970714 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970715 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CIT GROUP SECURITIZATION CORP III CENTRAL INDEX KEY: 0001034336 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] IRS NUMBER: 510374926 STATE OF INCORPORATION: DE FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-22283 FILM NUMBER: 97640963 BUSINESS ADDRESS: STREET 1: 650 CIT DRIVE CITY: LIVINGSTON STATE: NJ ZIP: 07039 BUSINESS PHONE: 2015353512 MAIL ADDRESS: STREET 1: 650 CIT DRIVE CITY: LIVINGSTON STATE: NJ ZIP: 07039 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CIT GROUP HOLDINGS INC /DE/ CENTRAL INDEX KEY: 0000020388 STANDARD INDUSTRIAL CLASSIFICATION: SHORT-TERM BUSINESS CREDIT INSTITUTIONS [6153] IRS NUMBER: 132994534 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-01861 FILM NUMBER: 97640964 BUSINESS ADDRESS: STREET 1: 1211 AVE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: 2125361950 MAIL ADDRESS: STREET 1: 1211 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10036 FORMER COMPANY: FORMER CONFORMED NAME: CIT FINANCIAL CORP/OLD/ DATE OF NAME CHANGE: 19860512 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------- F O R M 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): July 14, 1997 The CIT Group Securitization Corporation III The CIT Group Holdings, Inc. (Exact name of each registrant as specified in its charter) Delaware Delaware (State or other jurisdiction of incorporation) 333-22283 51-0374926 333-22283-01 13-2994534 (Commission File Number) (IRS Employer Identification No.) 650 CIT Drive Livingston, New Jersey 07039 1211 Avenue of the Americas New York, New York 10036 (Address of principal executive offices and zip code) Registrants' telephone number, including area code: (201) 535-3514 (212) 536-1950 N/A (Former name or former address, if changed since last report.) Item 7. Financial Statements and Exhibits. (c) Exhibits. The following are filed herewith. The exhibit numbers correspond with Item 601(b) of Regulation S-K. Exhibit No. Description - ----------- ----------- 99.1 Computational Materials SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE CIT GROUP SECURITIZATION CORPORATION III By: /S/ FRANK GARCIA ------------------------------------ Name: Frank Garcia Title: Vice President THE CIT GROUP HOLDINGS, INC. By: /S/ JOSEPH M. LEONE ------------------------------------ Name: Joseph M. Leone Title: Executive Vice President and Chief Financial Officer Dated: July 14, 1997 EX-99.1 2 COMPUTATIONAL MATERIALS =================== $500.0 Million CIT Home Equity Loan Trust 1997-1 Home Equity ABS =================== Computational Materials - -------------------------------------------------------------------------------- INVESTORS MUST READ THIS PAGE BEFORE PROCEEDING TO THE TEXT. This information has been prepared in connection with the issuance of securities representing interests in the above trust, and is based in part on information provided by The CIT Group/Consumer Finance Inc. with respect to the expected characteristics of the pool of closed-end mortgage loans in which these securities will represent undivided beneficial interests. The actual characteristics and performance of the closed-end mortgage loans will differ from the assumptions used in preparing these materials, which are hypothetical in nature. Changes in the assumptions may have a material impact on the information set forth in these materials. No representation is made that any performance or return indicated herein will be achieved. For example, it is very unlikely that closed-end mortgage loans will prepay at a constant rate or follow a predictable pattern. This information may not be used or otherwise disseminated in connection with the offer or sale of these or any other securities, except in connection with the initial offer or sale of these securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available upon request. These materials do not constitute an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials, including any description of the closed-end mortgage loans contained herein, shall be deemed superseded, amended and supplemented in their entirety by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition, please note that this information has been provided by Morgan Stanley & Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We recommend that investors obtain the advice of their Morgan Stanley & Co. International Limited or Morgan Stanley Japan Ltd. representative about the investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. - -------------------------------------------------------------------------------- CIT HOME EQUITY LOAN TRUST 1997-1 ================================================================================ Computational Materials Transaction Highlights
Payment Approximate Expected Average Life to Windows to Class Class Size Ratings 10% Call (2) 10% Call(2) Day Price Class(1) Type ($ millions) (Moody's/S&P) (years) (months) Count Talk ================================================================================================================================== A-1 Fixed Sequential 90.0 Aaa/AAA 0.57 8/97 - 8/98 / 13 mos. 30/360 +[ ] A-2 Fixed Sequential 36.0 Aaa/AAA 1.33 8/98 - 2/99 / 7 mos. 30/360 +[ ] A-3 Fixed Sequential 61.0 Aaa/AAA 2.02 2/99 - 1/00 / 12 mos. 30/360 +[ ] A-4 Fixed Sequential 40.0 Aaa/AAA 2.98 1/00 - 4/01 / 16 mos. 30/360 +[ ] A-5 Fixed Sequential 15.0 Aaa/AAA 4.17 4/01 - 3/02 / 12 mos. 30/360 +[ ] A-6 Fixed Sequential 15.0 Aaa/AAA 5.20 3/02 - 6/03 / 16 mos. 30/360 +[ ] A-7 Fixed Sequential 33.0 Aaa/AAA 8.19 6/03 - 6/06 / 37 mos. 30/360 +[ ] A-8 Fixed Lockout 30.0 Aaa/AAA 6.66 9/00 - 6/06 / 70 mos. 30/360 +[ ] A-9 Floater(3) 90.0 Aaa/AAA 3.03 8/97 - 6/06 / 107 mos. Actual/360 +[ ] M-1 Fixed Subordinate 30.0 Aa2/AA 5.94 8/00 - 6/06 / 71 mos. 30/360 +[ ] M-2 Fixed Subordinate 32.5 A2/A- 5.93 8/00 - 6/06 / 71 mos. 30/360 +[ ] B-1 Fixed Subordinate 22.5 Baa2/BBB- 5.93 8/00 - 6/06 / 71 mos. 30/360 +[ ] --------------------------------------------------------------------------------- B-2 Fixed Subordinate 5.0 Offered privately by Morgan Stanley. - ---------------------------------------------------------------------------------------------------------------------------------- Total $500 -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------------
(1) All certificates are backed by a fixed- and adjustable-rate pool of home equity loans. (2) See "Pricing Prepayment Speed" below. (3) Class A-9 certificates have a straight 20% life cap. Seller and Master Servicer: The CIT Group/Consumer Finance, Inc. Trustee: The Bank of New York. Collateral: Fixed and floating rate conventional home equity loans secured by first and subordinate lien mortgages. See "Collateral Description" on page 6. Pricing Prepayment Speed: Fixed Rate Certificates: All classes are priced at 100% of the prepayment assumption ("PPC"). 100% PPC describes prepayments starting at 4.0% CPR in month 1, increasing by approximately 1.455% CPR per month to 20% CPR in month 12, and remaining at 20% CPR thereafter. Adjustable Rate Certificate: Constant 25% CPR. Expected Pricing Date: July 16, 1997. Expected Settlement Date: July 23, 1997, through DTC, Euroclear, and CEDEL. Distribution Dates: The 15th of each month, beginning August 15, 1997. Optional Call: 10% Clean-up call (10% of collateral balance), followed by 5% mandatory Auction Sale if Clean-up call not exercised at 10%. Trust Tax Status: REMIC Trust. ERISA Eligibility: The Class A certificates are ERISA eligible. SMMEA Eligibility: The certificates will not be SMMEA eligible. - ------------------------------------------------------------------------------- This information has been prepared in connection with the issuance of securities representing interests in the above trust, and is based in part on information provided by The CIT Group/Consumer Finance Inc. with respect to the expected characteristics of the pool of closed-end mortgage loans in which these securities will represent undivided beneficial interests. The actual characteristics and performance of the closed-end mortgage loans will differ from the assumptions used in preparing these materials, which are hypothetical in nature. Changes in the assumptions may have a material impact on the information set forth in these materials. No representation is made that any performance or return indicated herein will be achieved. For example, it is very unlikely that closed-end mortgage loans will prepay at a constant rate or follow a predictable pattern. This information may not be used or otherwise disseminated in connection with the offer or sale of these or any other securities, except in connection with the initial offer or sale of these securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available upon request. These materials do not constitute an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials, including any description of the closed-end mortgage loans contained herein, shall be deemed superseded, amended and supplemented in their entirety by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition, please note that this information has been provided by Morgan Stanley & Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We recommend that investors obtain the advice of their Morgan Stanley & Co. International Limited or Morgan Stanley Japan Ltd. representative about the investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. CIT HOME EQUITY LOAN TRUST 1997-1 ================================================================================ Computational Materials Credit Structure o Interest Collections will by distributed in the following priority (note that the Class B-2 certificates are not being offered hereby): 1. Senior bonds (Class A-1 through A-9) current interest plus unpaid interest shortfalls 2. M-1 current interest 3. M-2 current interest 4. B-1 current interest 5. B-2 current interest 6. Master servicing fee 7. Excess interest used to build overcollateralization to the target level 8. Unpaid interest and principal shortfalls on mezzanine and subordinate bonds 9. Unreimbursed servicer advances 10. Remaining interest paid to holders of the Class R certificates o Principal Collections before the step-down date or during a trigger event will be allocated as follows: -- Principal received from the ARM portfolio will be distributed in the following priority: 1. Class A-9 principal 2. Class A-8 lockout principal amount* 3. Class A certificates (other than Class A-8 and A-9 certificates) in sequential order 4. Class A-8, if necessary * The Class A-8 is paid principal according to the following Lockout Percentage: August 1997 - July 2000 0% August 2000 - July 2002 45% August 2002 - July 2003 80% August 2003 - July 2004 100% August 4004 and thereafter 300% -- Principal received from the fixed portfolio will be distributed in the following priority: 1. Class A-8 lockout principal amount, to the extent not previously distributed 2. Class A certificates (other than Class A-8 and A-9 certificates) in sequential order 3. Class A-8, if necessary 4. Class A-9 - ------------------------------------------------------------------------------- This information has been prepared in connection with the issuance of securities representing interests in the above trust, and is based in part on information provided by The CIT Group/Consumer Finance Inc. with respect to the expected characteristics of the pool of closed-end mortgage loans in which these securities will represent undivided beneficial interests. The actual characteristics and performance of the closed-end mortgage loans will differ from the assumptions used in preparing these materials, which are hypothetical in nature. Changes in the assumptions may have a material impact on the information set forth in these materials. No representation is made that any performance or return indicated herein will be achieved. For example, it is very unlikely that closed-end mortgage loans will prepay at a constant rate or follow a predictable pattern. This information may not be used or otherwise disseminated in connection with the offer or sale of these or any other securities, except in connection with the initial offer or sale of these securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available upon request. These materials do not constitute an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials, including any description of the closed-end mortgage loans contained herein, shall be deemed superseded, amended and supplemented in their entirety by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition, please note that this information has been provided by Morgan Stanley & Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We recommend that investors obtain the advice of their Morgan Stanley & Co. International Limited or Morgan Stanley Japan Ltd. representative about the investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. CIT HOME EQUITY LOAN TRUST 1997-1 ================================================================================ Computational Materials Credit Structure (cont'd) o Principal Collections after the step-down date if no trigger event is in effect will be allocated as follows: 1. Class A-1 through A-9 will receive principal from ARM and fixed portfolios as described above 2. Class M-1 principal 3. Class M-2 principal 4. Class B-1 principal 5. Class B-2 principal 6. Excess principal paid to Class R to reduce overcollateralization o Step-Down Date. -- The step-down date is the earlier to occur of (i) the later to occur of (x) the distribution date in August 2000 and (y) the first distribution date on which the sum of the percentage of subordinate classes and overcollateralization (the "Senior Enhancement Percentage") is greater than or equal to 40.7% (the "Senior Specified Enhancement Percentage") and (ii) the distribution date on which the Class A certificates has been reduced to zero. o Loan Trigger Events. -- A trigger event will occur if the percentage of 60-day or more delinquent loans equals or exceeds 48% of the Senior Enhancement Percentage in which case no step-down will occur. - -------------------------------------------------------------------------------- This information has been prepared in connection with the issuance of securities representing interests in the above trust, and is based in part on information provided by The CIT Group/Consumer Finance Inc. with respect to the expected characteristics of the pool of closed-end mortgage loans in which these securities will represent undivided beneficial interests. The actual characteristics and performance of the closed-end mortgage loans will differ from the assumptions used in preparing these materials, which are hypothetical in nature. Changes in the assumptions may have a material impact on the information set forth in these materials. No representation is made that any performance or return indicated herein will be achieved. For example, it is very unlikely that closed-end mortgage loans will prepay at a constant rate or follow a predictable pattern. This information may not be used or otherwise disseminated in connection with the offer or sale of these or any other securities, except in connection with the initial offer or sale of these securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available upon request. These materials do not constitute an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials, including any description of the closed-end mortgage loans contained herein, shall be deemed superseded, amended and supplemented in their entirety by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition, please note that this information has been provided by Morgan Stanley & Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We recommend that investors obtain the advice of their Morgan Stanley & Co. International Limited or Morgan Stanley Japan Ltd. representative about the investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. CIT HOME EQUITY LOAN TRUST 1997-1 ================================================================================ Computational Materials Credit Enhancement for the Certificates o Class A1-A9 Credit Enhancement: 1. Excess cash 2. Overcollateralization initially building up to 2.35% of the original loan amount 3. Subordination of Class M-1, M-2, B-1 and B-2 certificates, totaling 18.0% of the original loan amount o Class M-1, M-2, and B-1 Credit Enhancement (note that the Class B-2 certificates are not being offered hereby): 1. Excess cash 2. Class M-1 is further enhanced by 12.0% in subordinate certificates and O/C building up to 2.35% 3. Class M-2 is further enhanced by 5.5% in subordinate certificates and O/C building up to 2.35% 4. Class B-1 is enhanced by 1.0% in subordinate certificates and O/C building up to 2.35% Overcollateralization 1. Before the step-down date, overcollateralization initially builds to 2.35% of the original loan amount for both loan groups (subject to performance triggers) 2. On and after the step-down date to 4.70% of the outstanding loan balance 3. Step-down overcollateralization amount subject to a floor of 0.50% of the original loan amount for both loan groups (subject to performance triggers) - -------------------------------------------------------------------------------- This information has been prepared in connection with the issuance of securities representing interests in the above trust, and is based in part on information provided by The CIT Group/Consumer Finance Inc. with respect to the expected characteristics of the pool of closed-end mortgage loans in which these securities will represent undivided beneficial interests. The actual characteristics and performance of the closed-end mortgage loans will differ from the assumptions used in preparing these materials, which are hypothetical in nature. Changes in the assumptions may have a material impact on the information set forth in these materials. No representation is made that any performance or return indicated herein will be achieved. For example, it is very unlikely that closed-end mortgage loans will prepay at a constant rate or follow a predictable pattern. This information may not be used or otherwise disseminated in connection with the offer or sale of these or any other securities, except in connection with the initial offer or sale of these securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available upon request. These materials do not constitute an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials, including any description of the closed-end mortgage loans contained herein, shall be deemed superseded, amended and supplemented in their entirety by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition, please note that this information has been provided by Morgan Stanley & Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We recommend that investors obtain the advice of their Morgan Stanley & Co. International Limited or Morgan Stanley Japan Ltd. representative about the investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. CIT HOME EQUITY LOAN TRUST 1997-1 ================================================================================ Computational Materials CIT 1997-1 Collateral Description The collateral pool will consist of a combination of first and junior lien home equity loans. These loans are predominantly used by borrowers to consolidate debt, to refinance an existing mortgage loan on more favorable terms, or to obtain cash proceeds by borrowing against the homeowner's equity in the related mortgage property. Approximately 55% of the home equity loans have prepayment penalties in force to the maximum allowable on a state-by-state basis.
Fixed Rate Portfolio ARM Portfolio -------------------- ------------- Total Outstanding Balance: $410,062,866.73 $90,055,693.10 Number of Loans: 8,514 1,041 Average Remaining Balance: $48,163 (range: $4,293 - $420,228) $86,461 (range: $10,225 - $588,511) Loan Type: o 100% Fixed-rate o 38.82% 2/28 ARMs o 28.29% 6-month LIBOR ARMs o 25.26% 1 year CMT ARMs o 3.94% 3/1 year CMT ARMs o 3.69% Other Amortization Method: o 12.86% Balloon o 100% Level pay o 87.14% Level pay WA Gross Coupon: 10.94% (range: 7.64% - 19.70%) 9.43% (range: 6.91% - 14.90%) WA Gross Margin / WA Life Cap: N/A 5.66% / 15.49% WA Periodic Interest Rate Caps: N/A 1.44% WA Months to Roll: N/A 13 months Original Weighted Average Term: 240 months 347 months Remaining Weighted Average Term: 236 months 344 months Seasoning: 4 months 3 months Lien Position: o 70.38% 1sts o 96.33% 1sts o 29.62% 2nds o 3.67% 2nds WA CLTV Ratio: 78.09% (100.05% max.) 78.99% (100.00% max.) Documentation: o 92.25% Full o 91.58% Full o 7.75% Other o 8.42% Other Property Type: o 93.77% Single family o 95.68% Single family o 3.05% 2-4 family o 1.91% Condo o 1.86% Townhouses o 1.39% 2-4 family o 1.32% Condo o 1.02% Townhouses Owner Occupancy: o 97.03% Owner occupied o 98.64% Owner occupied o 2.97% Non-owner occupied o 1.36% Non-owner occupied Loan Purpose: o 95.56% Refinance and/or Cashout o 82.75% Refinance and/or Cashout o 4.44% Purchase o 17.25% Purchase Geographic Distribution > 5%: CA (9.96%), OH (9.56%), PA (6.22%), OH (17.93%), MI (10.07%), CA (9.57%), IN (5.90%), FL (5.88%), NY (5.09%) WA (8.12%), CO (6.36%), OR (5.47%)
- -------------------------------------------------------------------------------- This information has been prepared in connection with the issuance of securities representing interests in the above trust, and is based in part on information provided by The CIT Group/Consumer Finance Inc. with respect to the expected characteristics of the pool of closed-end mortgage loans in which these securities will represent undivided beneficial interests. The actual characteristics and performance of the closed-end mortgage loans will differ from the assumptions used in preparing these materials, which are hypothetical in nature. Changes in the assumptions may have a material impact on the information set forth in these materials. No representation is made that any performance or return indicated herein will be achieved. For example, it is very unlikely that closed-end mortgage loans will prepay at a constant rate or follow a predictable pattern. This information may not be used or otherwise disseminated in connection with the offer or sale of these or any other securities, except in connection with the initial offer or sale of these securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available upon request. These materials do not constitute an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials, including any description of the closed-end mortgage loans contained herein, shall be deemed superseded, amended and supplemented in their entirety by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition, please note that this information has been provided by Morgan Stanley & Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We recommend that investors obtain the advice of their Morgan Stanley & Co. International Limited or Morgan Stanley Japan Ltd. representative about the investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. CIT HOME EQUITY LOAN TRUST 1997-1 ================================================================================ Computational Materials Average Life Sensitivity Tables Fixed Rate Classes: Priced to 10% Optional Call
---------------------------------------------------------------------------- Prepayment Speed PPC PPC PPC PPC(1) PPC PPC PPC 0% 50% 85% 100% 125% 150% 200% ---------------------------------------------------------------------------- Class A-1 @ Price 100/00 Average Life 3.93 0.93 0.64 0.57 0.49 0.43 0.35 First Prin 8/15/97 8/15/97 8/15/97 8/15/97 8/15/97 8/15/97 8/15/97 Last Prin 7/15/05 6/15/99 10/15/98 8/15/98 6/15/98 5/15/98 3/15/98 Payment Window 96 23 15 13 11 10 8 Mod Duration 3.28 0.87 0.61 0.54 0.46 0.41 0.34 Class A-2 @ Price 100/00 Average Life 9.35 2.36 1.52 1.33 1.09 0.93 0.73 First Prin 7/15/05 6/15/99 10/15/98 8/15/98 6/15/98 5/15/98 3/15/98 Last Prin 3/15/08 5/15/00 5/15/99 2/15/99 11/15/98 8/15/98 5/15/98 Payment Window 33 12 8 7 6 4 3 Mod Duration 6.92 2.14 1.41 1.24 1.03 0.88 0.69 Class A-3 @ Price 100/00 Average Life 2.71 3.73 2.34 2.02 1.65 1.39 1.05 First Prin 3/15/08 5/15/00 5/15/99 2/15/99 11/15/98 8/15/98 5/15/98 Last Prin 3/15/12 4/15/02 6/15/00 1/15/00 8/15/99 4/15/99 11/15/98 Payment Window 49 24 14 12 10 9 7 Mod Duration 8.51 3.22 2.12 1.85 1.52 1.29 0.99 Class A-4 @ Price 100/00 Average Life 15.15 6.45 3.59 2.98 2.33 1.95 1.46 First Prin 3/15/12 4/15/02 6/15/00 1/15/00 8/15/99 4/15/99 11/15/98 Last Prin 3/15/15 6/15/06 2/15/02 4/15/01 3/15/00 10/15/99 3/15/99 Payment Window 37 51 21 16 8 7 5 Mod Duration 9.42 5.11 3.11 2.63 2.1 1.78 1.35 Class A-5 @ Price 100/00 Average Life 19.18 9.94 5.13 4.17 2.77 2.31 1.71 First Prin 3/15/15 6/15/06 2/15/02 4/15/01 3/15/00 10/15/99 3/15/99 Last Prin 7/15/18 7/15/08 4/15/03 3/15/02 6/15/00 12/15/99 5/15/99 Payment Window 41 26 15 12 4 3 3 Mod Duration 10.48 7.04 4.21 3.53 2.46 2.08 1.57 ----------------------------------------------------------------------------
Note: (1) Prepayment scenarios are quoted as a percentage of the prepayment assumption "PPC" (a 100% PPC prepayment assumption has prepayments starting at 4.0% CPR in month 1, increasing by approximately 1.455% CPR per month to 20% CPR in month 12, and remaining at 20% CPR thereafter), with regard to the fixed rate group. The fixed rate group assumes 100% PPC. - -------------------------------------------------------------------------------- This information has been prepared in connection with the issuance of securities representing interests in the above trust, and is based in part on information provided by The CIT Group/Consumer Finance Inc. with respect to the expected characteristics of the pool of closed-end mortgage loans in which these securities will represent undivided beneficial interests. The actual characteristics and performance of the closed-end mortgage loans will differ from the assumptions used in preparing these materials, which are hypothetical in nature. Changes in the assumptions may have a material impact on the information set forth in these materials. No representation is made that any performance or return indicated herein will be achieved. For example, it is very unlikely that closed-end mortgage loans will prepay at a constant rate or follow a predictable pattern. This information may not be used or otherwise disseminated in connection with the offer or sale of these or any other securities, except in connection with the initial offer or sale of these securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available upon request. These materials do not constitute an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials, including any description of the closed-end mortgage loans contained herein, shall be deemed superseded, amended and supplemented in their entirety by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition, please note that this information has been provided by Morgan Stanley & Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We recommend that investors obtain the advice of their Morgan Stanley & Co. International Limited or Morgan Stanley Japan Ltd. representative about the investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. CIT HOME EQUITY LOAN TRUST 1997-1 ================================================================================ Computational Materials Fixed Rate Classes: Priced to 10% Optional Call (cont'd) ------------------------------------------------------------------------------- Prepayment Speed PPC PPC PPC PPC(1) PPC PPC PPC 0% 50% 85% 100% 125% 150% 200% ------------------------------------------------------------------------------- Class A-6 @ Price 100/00 Average Life 22.86 12.09 6.62 5.2 3.52 2.54 1.87 First Prin 7/15/18 7/15/08 4/15/03 3/15/02 6/15/00 12/15/99 5/15/99 Last Prin 2/15/22 10/15/10 9/15/05 6/15/03 10/15/01 3/15/00 7/15/99 Payment Window 44 28 30 16 17 4 3 Mod Duration 11.25 7.99 5.16 4.24 3.03 2.26 1.7 Class A-7 @ Price 100/00 Average Life 25.11 13.78 9.81 8.19 5.93 3.63 2.16 First Prin 2/15/22 10/15/10 9/15/05 6/15/03 10/15/01 3/15/00 7/15/99 Last Prin 9/15/22 5/15/11 8/15/07 6/15/06 1/15/05 1/15/04 12/15/99 Payment Window 8 8 24 37 40 47 6 Mod Duration 11.42 8.54 6.86 6.01 4.66 3.07 1.94 Class A-8 @ Price 100/00 Average Life 9.74 7.67 6.87 6.66 6.34 5.97 2.62 First Prin 8/15/00 8/15/00 8/15/00 9/15/00 3/15/01 11/15/01 12/15/99 Last Prin 9/15/22 5/15/11 8/15/07 6/15/06 1/15/05 1/15/04 6/15/00 Payment Window 266 130 85 70 47 27 7 Mod Duration 6.8 5.69 5.26 5.15 4.97 4.76 2.32 Class M-1 @ Price 100/00 Average Life 18.07 9.47 6.71 5.94 5.13 4.78 5.06 First Prin 7/15/09 4/15/02 11/15/00 8/15/00 12/15/00 3/15/01 1/15/02 Last Prin 9/15/22 5/15/11 8/15/07 6/15/06 1/15/05 1/15/04 9/15/02 Payment Window 159 110 82 71 50 35 9 Mod Duration 9.74 6.54 5.07 4.61 4.12 3.91 4.13 Class M-2 @ Price 100/00 Average Life 18.07 9.47 6.71 5.93 5.07 4.56 4.26 First Prin 7/15/09 4/15/02 11/15/00 8/15/00 9/15/00 10/15/00 1/15/01 Last Prin 9/15/22 5/15/11 8/15/07 6/15/06 1/15/05 1/15/04 9/15/02 Payment Window 159 110 82 71 53 40 21 Mod Duration 9.59 6.48 5.03 4.58 4.05 3.73 3.54 Class B-1 @ Price 100/00 Average Life 18.07 9.47 6.71 5.93 5.04 4.47 3.89 First Prin 7/15/09 4/15/02 11/15/00 8/15/00 8/15/00 8/15/00 9/15/00 Last Prin 9/15/22 5/15/11 8/15/07 6/15/06 1/15/05 1/15/04 9/15/02 Payment Window 159 110 82 71 54 42 25 Mod Duration 9.37 6.38 4.98 4.53 3.99 3.63 3.24 --------------------------------------------------------------------------------
Note: (1) prepayment scenarios are quoted as a percentage of the prepayment assumption "PPC" (a 100% PPC prepayment assumption has prepayments starting at 4.0% CPR in month 1, increasing by approximately 1.455% CPR per month to 20% CPR in month 12, and remaining at 20% CPR thereafter), with regard to the fixed rate group. The fixed rate group assumes 100% PPC. - -------------------------------------------------------------------------------- This information has been prepared in connection with the issuance of securities representing interests in the above trust, and is based in part on information provided by The CIT Group/Consumer Finance Inc. with respect to the expected characteristics of the pool of closed-end mortgage loans in which these securities will represent undivided beneficial interests. The actual characteristics and performance of the closed-end mortgage loans will differ from the assumptions used in preparing these materials, which are hypothetical in nature. Changes in the assumptions may have a material impact on the information set forth in these materials. No representation is made that any performance or return indicated herein will be achieved. For example, it is very unlikely that closed-end mortgage loans will prepay at a constant rate or follow a predictable pattern. This information may not be used or otherwise disseminated in connection with the offer or sale of these or any other securities, except in connection with the initial offer or sale of these securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available upon request. These materials do not constitute an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials, including any description of the closed-end mortgage loans contained herein, shall be deemed superseded, amended and supplemented in their entirety by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition, please note that this information has been provided by Morgan Stanley & Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We recommend that investors obtain the advice of their Morgan Stanley & Co. International Limited or Morgan Stanley Japan Ltd. representative about the investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. CIT HOME EQUITY LOAN TRUST 1997-1 ================================================================================ Computational Materials Average Life Sensitivity Tables (cont'd) Floating Rate Class: Priced to 10% Optional Call
CPR (%) ---------------------------------------------------------------------- 0% 15% 20% 25%(1) 30% 40% 50% ---------------------------------------------------------------------- Class A-9 @ Price 100/00 Average Life 15.29 4.69 3.71 3.03 2.51 1.78 1.31 First Prin 8/15/97 8/15/97 8/15/97 8/15/97 8/15/97 8/15/97 8/15/97 Last Prin 8/15/19 6/15/07 10/15/06 6/15/06 4/15/06 7/15/05 4/15/03 Payment Window 265 119 111 107 105 96 69 Mod Duration 9.38 3.77 3.08 2.57 2.18 1.60 1.21 ----------------------------------------------------------------------
Note: (1) Class A-9 assumes a constant prepayment speed of 25% CPR. - -------------------------------------------------------------------------------- This information has been prepared in connection with the issuance of securities representing interests in the above trust, and is based in part on information provided by The CIT Group/Consumer Finance Inc. with respect to the expected characteristics of the pool of closed-end mortgage loans in which these securities will represent undivided beneficial interests. The actual characteristics and performance of the closed-end mortgage loans will differ from the assumptions used in preparing these materials, which are hypothetical in nature. Changes in the assumptions may have a material impact on the information set forth in these materials. No representation is made that any performance or return indicated herein will be achieved. For example, it is very unlikely that closed-end mortgage loans will prepay at a constant rate or follow a predictable pattern. This information may not be used or otherwise disseminated in connection with the offer or sale of these or any other securities, except in connection with the initial offer or sale of these securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available upon request. These materials do not constitute an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials, including any description of the closed-end mortgage loans contained herein, shall be deemed superseded, amended and supplemented in their entirety by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition, please note that this information has been provided by Morgan Stanley & Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We recommend that investors obtain the advice of their Morgan Stanley & Co. International Limited or Morgan Stanley Japan Ltd. representative about the investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. CIT HOME EQUITY LOAN TRUST 1997-1 ================================================================================ Computational Materials Fixed Rate Classes: Priced Assuming No Optional Call
----------------------------------------------------------------------------------------- Prepayment Speed PPC PPC PPC PPC(1) PPC PPC PPC 0% 50% 85% 100% 125% 150% 200% ----------------------------------------------------------------------------------------- Class A-1 @ Price 100/00 Average Life 3.93 0.93 0.64 0.57 0.49 0.43 0.35 First Prin 8/15/97 8/15/97 8/15/97 8/15/97 8/15/97 8/15/97 8/15/97 Last Prin 7/15/05 6/15/99 10/15/98 8/15/98 6/15/98 5/15/98 3/15/98 Payment Window 96 23 15 13 11 10 8 Mod Duration 3.28 0.87 0.61 0.54 0.46 0.41 0.34 Class A-2 @ Price 100/00 Average Life 9.35 2.36 1.52 1.33 1.09 0.93 0.73 First Prin 7/15/05 6/15/99 10/15/98 8/15/98 6/15/98 5/15/98 3/15/98 Last Prin 3/15/08 5/15/00 5/15/99 2/15/99 11/15/98 8/15/98 5/15/98 Payment Window 33 12 8 7 6 4 3 Mod Duration 6.92 2.14 1.41 1.24 1.03 0.88 0.69 Class A-3 @ Price 100/00 Average Life 12.71 3.73 2.34 2.02 1.65 1.39 1.05 First Prin 3/15/08 5/15/00 5/15/99 2/15/99 11/15/98 8/15/98 5/15/98 Last Prin 3/15/12 4/15/02 6/15/00 1/15/00 8/15/99 4/15/99 11/15/98 Payment Window 49 24 14 12 10 9 7 Mod Duration 8.51 3.22 2.12 1.85 1.52 1.29 0.99 Class A-4 @ Price 100/00 Average Life 15.15 6.45 3.59 2.98 2.33 1.95 1.46 First Prin 3/15/12 4/15/02 6/15/00 1/15/00 8/15/99 4/15/99 11/15/98 Last Prin 3/15/15 6/15/06 2/15/02 4/15/01 3/15/00 10/15/99 3/15/99 Payment Window 37 51 21 16 8 7 5 Mod Duration 9.42 5.11 3.11 2.63 2.10 1.78 1.35 Class A-5 @ Price 100/00 Average Life 19.18 9.94 5.13 4.17 2.77 2.31 1.71 First Prin 3/15/15 6/15/06 2/15/02 4/15/01 3/15/00 10/15/99 3/15/99 Last Prin 7/15/18 7/15/08 4/15/03 3/15/02 6/15/00 12/15/99 5/15/99 Payment Window 41 26 15 12 4 3 3 Mod Duration 10.48 7.04 4.21 3.53 2.46 2.08 1.57 -----------------------------------------------------------------------------------------
Note: (1) Prepayment scenarios are quoted as a percentage of the prepayment assumption "PPC" (a 100% PPC prepayment assumption has prepayments starting at 4.0% CPR in month 1, increasing by approximately 1.455% CPR per month to 20% CPR in month 12, and remaining at 20% CPR thereafter), with regard to the fixed rate group. The fixed rate group assumes 100% PPC. - -------------------------------------------------------------------------------- This information has been prepared in connection with the issuance of securities representing interests in the above trust, and is based in part on information provided by The CIT Group/Consumer Finance Inc. with respect to the expected characteristics of the pool of closed-end mortgage loans in which these securities will represent undivided beneficial interests. The actual characteristics and performance of the closed-end mortgage loans will differ from the assumptions used in preparing these materials, which are hypothetical in nature. Changes in the assumptions may have a material impact on the information set forth in these materials. No representation is made that any performance or return indicated herein will be achieved. For example, it is very unlikely that closed-end mortgage loans will prepay at a constant rate or follow a predictable pattern. This information may not be used or otherwise disseminated in connection with the offer or sale of these or any other securities, except in connection with the initial offer or sale of these securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available upon request. These materials do not constitute an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials, including any description of the closed-end mortgage loans contained herein, shall be deemed superseded, amended and supplemented in their entirety by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition, please note that this information has been provided by Morgan Stanley & Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We recommend that investors obtain the advice of their Morgan Stanley & Co. International Limited or Morgan Stanley Japan Ltd. representative about the investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. CIT HOME EQUITY LOAN TRUST 1997-1 ================================================================================ Computational Materials Fixed Rate Classes: Priced Assuming No Optional Call (cont'd)
----------------------------------------------------------------------------------------- Prepayment Speed PPC PPC PPC PPC(1) PPC PPC PPC 0% 50% 85% 100% 125% 150% 200% ----------------------------------------------------------------------------------------- Class A-6 @ Price 100/00 Average Life 22.86 12.09 6.62 5.20 3.52 2.54 1.87 First Prin 7/15/18 7/15/08 4/15/03 3/15/02 6/15/00 12/15/99 5/15/99 Last Prin 2/15/22 10/15/10 9/15/05 6/15/03 10/15/01 3/15/00 7/15/99 Payment Window 44 28 30 16 17 4 3 Mod Duration 11.25 7.99 5.16 4.24 3.03 2.26 1.70 Class A-7 @ Price 100/00 Average Life 27.22 16.88 12.30 10.32 7.23 3.80 2.16 First Prin 2/15/22 10/15/10 9/15/05 6/15/03 10/15/01 3/15/00 7/15/99 Last Prin 11/15/26 11/15/23 4/15/07 4/15/15 3/15/12 6/15/10 12/15/99 Payment Window 58 158 140 143 126 124 6 Mod Duration 11.73 9.45 7.86 6.94 5.29 3.16 1.94 Class A-8 @ Price 100/00 Average Life 9.75 7.68 6.96 6.79 6.70 6.91 2.62 First Prin 8/15/00 8/15/00 8/15/00 9/15/00 3/15/01 11/15/01 12/15/99 Last Prin 9/15/26 8/15/23 2/15/17 2/15/15 3/15/12 4/15/10 6/15/00 Payment Window 314 277 199 174 133 102 7 Mod Duration 6.80 5.69 5.30 5.21 5.17 5.29 2.33 Class M-1 @ Price 100/00 Average Life 18.53 10.11 7.27 6.49 5.64 5.24 7.00 First Prin 7/15/09 4/15/02 11/15/00 8/15/00 12/15/00 3/15/01 1/15/02 Last Prin 8/15/26 8/15/20 1/15/14 3/15/12 2/15/11 8/15/09 3/15/10 Payment Window 206 221 159 140 123 102 99 Mod Duration 9.81 6.73 5.31 4.86 4.38 4.16 5.27 Class M-2 @ Price 100/00 Average Life 18.52 10.02 7.23 6.46 5.53 4.98 4.61 First Prin 7/15/09 4/15/02 11/15/00 8/15/00 9/15/00 10/15/00 1/15/01 Last Prin 6/15/26 11/15/18 8/15/12 2/15/12 2/15/10 9/15/08 11/15/06 Payment Window 204 200 142 139 114 96 71 Mod Duration 9.65 6.64 5.25 4.81 4.28 3.95 3.76 Class B-1 @ Price 100/00 Average Life 18.44 9.77 7.10 6.30 5.36 4.76 4.12 First Prin 7/15/09 4/15/02 11/15/00 8/15/00 8/15/00 8/15/00 9/15/00 Last Prin 11/15/25 8/15/15 9/15/11 5/15/10 6/15/08 2/15/07 5/15/05 Payment Window 197 161 131 118 95 79 57 Mod Duration 9.42 6.48 5.14 4.70 4.15 3.79 3.39 -----------------------------------------------------------------------------------------
Note: (1) prepayment scenarios are quoted as a percentage of the prepayment assumption "PPC" (a 100% PPC prepayment assumption has prepayments starting at 4.0% CPR in month 1, increasing by approximately 1.455% CPR per month to 20% CPR in month 12, and remaining at 20% CPR thereafter), with regard to the fixed rate group. The fixed rate group assumes 100% PPC. - -------------------------------------------------------------------------------- This information has been prepared in connection with the issuance of securities representing interests in the above trust, and is based in part on information provided by The CIT Group/Consumer Finance Inc. with respect to the expected characteristics of the pool of closed-end mortgage loans in which these securities will represent undivided beneficial interests. The actual characteristics and performance of the closed-end mortgage loans will differ from the assumptions used in preparing these materials, which are hypothetical in nature. Changes in the assumptions may have a material impact on the information set forth in these materials. No representation is made that any performance or return indicated herein will be achieved. For example, it is very unlikely that closed-end mortgage loans will prepay at a constant rate or follow a predictable pattern. This information may not be used or otherwise disseminated in connection with the offer or sale of these or any other securities, except in connection with the initial offer or sale of these securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available upon request. These materials do not constitute an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials, including any description of the closed-end mortgage loans contained herein, shall be deemed superseded, amended and supplemented in their entirety by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition, please note that this information has been provided by Morgan Stanley & Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We recommend that investors obtain the advice of their Morgan Stanley & Co. International Limited or Morgan Stanley Japan Ltd. representative about the investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. CIT HOME EQUITY LOAN TRUST 1997-1 ================================================================================ Computational Materials Average Life Sensitivity Tables (cont'd) Floating Rate Class: Priced Assuming No Optional Call
CPR (%) --------------------------------------------------------------------------------- 0% 15% 20% 25%(1) 30% 40% 50% --------------------------------------------------------------------------------- Class A-9 @ Price 100/00 Average Life 15.81 5.51 4.11 3.18 2.55 1.78 1.31 First Prin 8/15/97 8/15/97 8/15/97 8/15/97 8/15/97 8/15/97 8/15/97 Last Prin 5/15/23 9/15/18 4/15/16 7/15/13 9/15/09 7/15/05 4/15/03 Payment Window 310 254 225 192 146 96 69 Mod Duration 9.51 4.14 3.27 2.65 2.20 1.60 1.21 ---------------------------------------------------------------------------------
Note: (1) Class A-9 assumes a constant prepayment speed of 25% CPR. - -------------------------------------------------------------------------------- This information has been prepared in connection with the issuance of securities representing interests in the above trust, and is based in part on information provided by The CIT Group/Consumer Finance Inc. with respect to the expected characteristics of the pool of closed-end mortgage loans in which these securities will represent undivided beneficial interests. The actual characteristics and performance of the closed-end mortgage loans will differ from the assumptions used in preparing these materials, which are hypothetical in nature. Changes in the assumptions may have a material impact on the information set forth in these materials. No representation is made that any performance or return indicated herein will be achieved. For example, it is very unlikely that closed-end mortgage loans will prepay at a constant rate or follow a predictable pattern. This information may not be used or otherwise disseminated in connection with the offer or sale of these or any other securities, except in connection with the initial offer or sale of these securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. Additional information is available upon request. These materials do not constitute an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials, including any description of the closed-end mortgage loans contained herein, shall be deemed superseded, amended and supplemented in their entirety by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In addition, please note that this information has been provided by Morgan Stanley & Co. Incorporated and approved by Morgan Stanley & Co. International Limited, a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd. We recommend that investors obtain the advice of their Morgan Stanley & Co. International Limited or Morgan Stanley Japan Ltd. representative about the investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND FUTURES AUTHORITY. -----END PRIVACY-ENHANCED MESSAGE-----