-----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, QzHhpLmUkOoAVfltnXWbiJqlH9hQC+/yzN64l8tPBAqn4aAYzE8i8s9x05vTuxjA B1PNwhjYq3zy+OgINO1eeA== 0000891092-97-000211.txt : 19970612 0000891092-97-000211.hdr.sgml : 19970612 ACCESSION NUMBER: 0000891092-97-000211 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970609 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970611 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST ALLIANCE MORTGAGE CO /DE/ CENTRAL INDEX KEY: 0000906938 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] IRS NUMBER: 330721183 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 033-64374 FILM NUMBER: 97622268 BUSINESS ADDRESS: STREET 1: 17305 VON KARMAN AVE STREET 2: SUITE 5000 CITY: IRVINE STATE: CA ZIP: 92714 BUSINESS PHONE: 7142248500 MAIL ADDRESS: STREET 1: 17305 VON KARMAN AVE CITY: IRVINE STATE: CA ZIP: 92714 FORMER COMPANY: FORMER CONFORMED NAME: FIRST ALLIANCE CORP /DE/ DATE OF NAME CHANGE: 19961104 FORMER COMPANY: FORMER CONFORMED NAME: FIRST ALLIANCE MORTGAGE CO /CA/ DATE OF NAME CHANGE: 19940908 8-K 1 FORM 8-K - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) June 9, 1997 First Alliance Mortgage Company (Exact name of registrant as specified in its charter) California 33-99604-05 95-2944875 ------------------------------- ---------------- ------------------- (State or Other Jurisdiction of (Commission File (I.R.S. Employer Incorporation) Number) Identification No.) 17305 Von Karman Avenue 92714-6203 Irvine, California ---------- - --------------------------------------- (Zip Code) (Address of Principal Executive Offices) Registrant's telephone number, including area code (714) 224-8400 No Change ------------------------------------------------------------ (Former name or former address, if changed since last report) - -------------------------------------------------------------------------------- Item 5. Other Events. In connection with the offering of First Alliance Mortgage Company Mortgage Loan Asset Backed Certificates, Series 1997-1, described in a Prospectus Supplement dated as of June 9, 1997, certain "Computational Materials" within the meaning of the May 20, 1994 Kidder, Peabody No-Action Letter and the February 17, 1995 Public Securities Association No-Action Letter were furnished to certain prospective investors. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (a) Not applicable (b) Not applicable (c) Exhibits: 99.1 Computational Materials provided by Prudential Securities Incorporated in connection with sales efforts related to the Registrant's securities. 99.2 Computational Materials provided by Lehman Brothers, Inc. in connection with sales efforts related to the Registrant's securities. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. By: FIRST ALLIANCE MORTGAGE COMPANY, as Company By: /s/Brian Chisick --------------------------- Name: Brian Chisick Title: President Dated: June 10, 1997 EX-99.1 2 EXHIBIT 99.1 First Alliance Mortgage Loan Trust 1997-2 Mortgage Loan Asset Backed Certificates, Series 1997-2 [$75,000,000] Class A Certificates - -------------------------------------------------------------------------------- [$20,000,000] Class A-1 Fixed Rate Group Certificates - [.]% [$55,000,000] Class A-2 Floating Rate Group Certificates - 1M LIBOR + [ ] bps. The information provided herein is provided solely by Prudential Securities Incorporated ("PSI") as underwriter for the First Alliance Mortgage Loan Trust 1997-2 transaction, and not by or as agent for First Alliance Mortgage Company (the "Sponsor") or any of its affiliates. The analysis in this report is accurate to the best of PSI's knowledge and is based on information provided by the Sponsor. PSI makes no representations as to the accuracy of such information provided to it by the Sponsor. All assumptions and information in this report reflect PSI's judgment as of this date and are subject to change. All analyses are based on certain assumptions noted herein and different assumptions could yield substantially different results. You are cautioned that there is no universally accepted method for analyzing financial instruments. You should review the assumptions; there may be differences between these assumptions and your actual business practices. Further, PSI does not guarantee any results and there is no guarantee as to the liquidity of the instruments involved in this analysis. The decision to adopt any strategy remains your responsibility. PSI (or any of its affiliates) or their officers, directors, analysts or employees may have positions in securities, commodities or derivative instruments thereon referred to herein, and may, as principal or agent, buy or sell such securities, commodities or derivative instruments. In addition, PSI may make a market in the securities referred to herein. Neither the information nor the assumptions reflected herein shall be construed to be, or constitute, an offer to sell or buy or a solicitation of an offer to sell or buy any securities, commodities or derivative instruments mentioned herein. No sale of any securities, commodities or derivative instruments should be consumated without the purchaser first having received a prospectus and, if required, prospectus supplement. Finally, PSI has not addressed the legal, accounting and tax implications of the analysis with respect to you, and PSI strongly urges you to seek advice from your counsel, accountant and tax advisor. First Alliance Mortgage Loan Trust 1997-2 Mortgage Loan Asset Backed Certificates, Series 1997-2 - -------------------------------------------------------------------------------- Title of Securities: First Alliance Mortgage Loan Trust 1997-2, Class A-1 Fixed Rate Group Certificates and Class A-2 Variable Rate Group Certificates (collectively, the "Certificates"). Certificate Description: Class A-1 Class A-2 --------- --------- Collateral: Fixed Rate Home Equity Variable Rate Home Equity Mortgage Loans Mortgage Loans Prepayment Assumption: [23% HEP] [27% CPR] Approximate Size: [$20,000,000] [$55,000,000] Average Life to Call: [3.496] [2.888] Average Life to maturity: [3.861] [3.095] Coupon: [.%] The lesser of: 1) One Month LIBOR + []bps 2) The Available Funds Cap Coupon Step-up: After the Clean-Up Call, After the Clean-up Call, the Coupon will the lesser of: be increased by 1) One Month LIBOR + 50 bps. 2x [] bps 2) The Available Funds Cap Yield to Call: [.%] Variable Collateral Adjustment Frequency: N/A Every 6 months (Both Interest Rate & Payment) Payment Delay: [19] NONE Interest Accrual Basis: 30/360 Actual/360 Dated Date: [6/1/97] [6/26/97] Expected Maturity without Call: [12/20/15] [10/20/13] Expected Maturity with 10% Call: [03/20/05] [03/20/05] Stated Maturity: [09/20/28] [06/20/27] Pricing Date: [June __, 1997] [June __, 1997] Settlement Date: [June 27, 1997] [June 27, 1997] THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY. THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. First Alliance Mortgage Loan Trust 1997-2 Mortgage Loan Asset Backed Certificates, Series 1997-2 - -------------------------------------------------------------------------------- Company and Servicer: First Alliance Mortgage Company, a California corporation. Servicing Fee: 50 basis points per annum. Trustee: The Chase Manhattan Bank Aggregate Group Balance: Fixed Rate Group $[20,000,000] Variable Rate Group $[55,000,000] Payment Date: The 20th day of each month or, if such day is not a business day, the next succeeding business day, beginning on July 20, 1997. Record Date: Class A-1 & Class A-2 - The last day of the calendar month immediately preceeding the related Payment Date. Interest Accrual Period: The interest accrual period for the Class A-1 Certificates is the calendar month prior to the month in which a distribution occurs. Interest will accrue on the Class A-2 Certificates from Payment Date to Payment Date. For the first Payment Date, interest will accrue from the Closing Date to the first Payment Date. Form of Certificates: Book-entry only through the same-day funds facilities of DTC, Euroclear and CEDEL. Denominations: Minimum denominations of $1,000 and integral multiples thereof. Prepayment Assumption: For the Class A-1 Fixed-Rate Group Certificates, [23]% HEP ([2.3]% CPR in month 1 with monthly incremental increases of [2.3]% CPR until the speed reaches [23]% CPR in month 10 based on loan seasoning.) For the Class A-2 Variable-Rate Group Certificates, [27]% CPR. 10% Clean-up Call: The Servicer has the option to exercise a call when the aggregate mortgage loan balance equals 10% or less of the original aggregate collateral balance and the original aggregate amount of the prefunding accounts. The call will be exercised at par plus accrued interest. Coupon Step-Up: If the Servicer does not exercise the Cleanup Call, the coupon on the Class A-1 Certificates shall be raised to [.]% + 0.50%. If the Servicer does not exercise the Cleanup Call, the coupon on the Class A-2 Certificates shall be raised to 1M LIBOR + 2x []bps, subject to the Monthly Available Funds Cap. Available Funds Cap: The Available Funds Cap is the weighted average of the Mortgage Rates on the Mortgage Loans in the Variable Rate Group, less the sum of (a) the Variable- Rate Group Servicing Fee (50 bps), (b) beginning on the Second Payment Date from the Closing Date, the premiums due to the Certificate Insurer with respect to the Certificate Insurance Policy relating to the Class A-2 Certificates, (c) the fees due to the Trustee relating to the Class A-2 Certificates, and (d) beginning on the [seventh] Payment Date from the Closing Date, [0.50%], expressed as a percentage of the Mortgage loans in the Variable Rate Group, calculated as of the first day of the related Remittance Period. Interest Carry Forward: The Class A-2 Certificates will have an interest carry forward feature. The excess of the interest accrued on the Class A-2 Certificates over the amount of interest actually distributed will be paid on future Remittance Dates to the extent of Class A-2 Available funds prior to distributing any Excess Spread to the holder of the Class R Certificate. The Interest Carryover Amount will accrue interest at the Class A-2 Certificate Rate. No interest Carryover will be paid once its principal balance has been reduced to zero. The Interest Carryover Amount is not guaranteed by MBIA. There will be no make-whole of the interest carry forward at the call date. THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY. THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. First Alliance Mortgage Loan Trust 1997-2 Mortgage Loan Asset Backed Certificates, Series 1997-2 - -------------------------------------------------------------------------------- Pre-Funding Account: On the Closing Date, approximately [$14,102,328.94] will be deposited in a pre-funding account for the purchase of additional floating-rate mortgage loans and [$4,569,684.29] will be deposited in a pre-funding account for the purchase of additional fixed-rate mortgage loans. From the Closing Date until [July 20,1997] the Trust intends to purchase mortgage loans up to the entire pre-funding amounts. The additional mortgage loans, purchased with funds deposited in the prefunding account, will be subject to certain individual and aggregate group characteristics that will be more fully described in the Prospectus Supplement. Funds remaining in the fixed-rate pre-funding account will be distributed to the Class A-1 Certificateholders as a prepayment on the July 1997 Payment Date. Funds remaining in the floating-rate pre-funding account will be distributed to the Class A-2 Certificateholders as a prepayment on the July 1997 Payment Date. Credit Enhancement: A combination of: - Overcollateralization. - Cross-collateralization of excess spread - 100% wrap from MBIA guarantee of timely interest and ultimate principal. Certificate Ratings: The Certificates will be rated AAA by Standard & Poor's and Aaa by Moody's Investor Service. Certificate Insurer: MBIA Insurance Corporation ("MBIA"). MBIA's claims-paying ability is rated AAA/Aaa by Standard and Poor's and Moody's. Certificate Insurance: Timely payments of interest and the ultimate payment of principal on the Certificates will be 100% guaranteed by MBIA. ERISA Considerations: The Certificates will not be ERISA eligible during the Prefunding Period. At the end of the Prefunding Period, the Certificates may be ERISA eligible. Investors should consult with their counsel with respect to the consequences under ERISA and the Code of the Plan's acquisition and ownership of such certificates. SMMEA: The Certificates will NOT constitute "mortgage related securities" for purposes of SMMEA. Taxation: REMIC. Prospectus: The Certificates are being offered pursuant to a Prospectus which includes a Prospectus Supplement (together, the "Prospectus"). Complete information with respect to the Certificates and the Collateral is contained in the Prospectus. The foregoing is qualified in its entirety by the information appearing in the Prospectus. To the extent that the foregoing is inconsistent with the Prospectus, the Prospectus shall govern in all respects. Sales of the Certificates may not be consumated unless the purchaser has received the Prospectus. Further Information: For further information, call the desk at (212) 778-2741, Paul Richardson at (212) 778-1507, Sean Arnold at (212) 778-4921 or Lina Hsu at (212) 778-1451. THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. AVAILABLE FUNDS CAP =================== Cap: Net WAC - fees - 50bps cushion (starting month7) (30/360 day count) DATE COUPON ---- ------ 07/97 8.448 08/97 8.448 09/97 8.449 10/97 8.449 11/97 8.449 12/97 8.579 01/98 8.079 02/98 8.515 03/98 8.903 04/98 8.971 05/98 8.971 06/98 9.102 07/98 9.102 08/98 9.537 09/98 9.926 10/98 9.994 11/98 9.994 12/98 10.124 01/99 10.125 02/99 10.560 03/99 10.948 04/99 11.016 05/99 11.016 06/99 11.081 07/99 11.081 08/99 11.318 09/99 11.514 10/99 11.549 11/99 11.549 12/99 11.549 01/00 11.549 02/00 11.549 03/00 11.549 04/00 11.549 05/00 11.549 06/00 11.549 07/00 11.549 08/00 11.549 09/00 11.549 10/00 11.549 11/00 11.549 12/00 11.549 01/01 11.549 02/01 11.549 03/01 11.549 04/01 11.549 05/01 11.549 06/01 11.549 07/01 11.549 08/01 11.549 09/01 11.549 10/01 11.549 11/01 11.549 12/01 11.549 01/02 11.549 02/02 11.549 03/02 11.549 04/02 11.549 05/02 11.549 06/02 11.549 07/02 11.549 08/02 11.549 THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. CURRENT BALANCE: $20,000,000.00 DATED DATE: 06/01/97 COUPON: TBD FIRST PAYMENT: 07/20/97 FACTOR: 1.0000000000 TOTAL CLASSES: 2 ORIGINAL BALANCE: $20,000,000.00 YIELD TABLE DATE: 06/27/97 FAMT72 BOND A1 PRICE-YIELD TABLE PREPAYMENT SPEED *** PRICED TO 10% CALL ***

THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. - -------------------------------------------------------------------------------- - FAMT72 - Cut Off Date of Tape is 5/31/97 - FIX - $15,430,315.71 - Mortgage Summary Report - -------------------------------------------------------------------------------- Number of Mortgage Loans: 222 Aggregate Unpaid Principal Balance: $15,430,315.71 Aggregate Original Principal Balance: $15,596,000.00 Weighted Average Gross Coupon: 10.675% Gross Coupon Range: 8.500% - 16.950% - -------------------------------------------------------------------------------- Average Unpaid Principal Balance: $69,505.93 Average Original Principal Balance: $70,252.25 Maximum Unpaid Principal Balance: $233,764.00 Minimum Unpaid Principal Balance: $9,304.45 Maximum Original Principal Balance: $233,764.00 Minimum Original Principal Balance: $11,000.00 Weighted Avg. Stated Rem. Term (PTD to Mat Date): 309.677 Stated Rem Term Range: 80.000 - 360.000 Weighted Average Age (First Pay thru Paid Thru Date): 3.598 Age Range: 0.000 - 73.000 Weighted Average Original Term: 313.274 Original Term Range: 120.000 - 360.000 Weighted Average Original LTV: 54.861 Original LTV Range: 4.800% - 83.250% Weighted Average Combined LTV: 56.016 Combined LTV Range: 12.350% - 83.250% - -------------------------------------------------------------------------------- LARGEST ZIP CODE CONCENTRATION FOR FIX LOANS ZIP # OF LOANS BALANCE CLTV % 95030 2 311,725.00 47.99 2.02 THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. COMBINED LOAN-TO-VALUE RATIOS Percentage of Aggregate Cut-Off Date Combined Number of Unpaid Aggregate Loan-To-Value Mortgage Principal Principal Ratio Loans Balance Balance 80.01 to 85.00 1 101,419.23 0.66 75.01 to 80.00 6 629,017.46 4.08 70.01 to 75.00 15 1,453,140.76 9.42 65.01 to 70.00 26 2,447,719.45 15.86 60.01 to 65.00 28 2,056,039.39 13.32 55.01 to 60.00 23 2,104,269.22 13.64 50.01 to 55.00 26 1,829,203.05 11.85 45.01 to 50.00 25 1,643,726.24 10.65 40.01 to 45.00 17 921,988.82 5.98 35.01 to 40.00 9 459,496.06 2.98 30.01 to 35.00 21 918,477.01 5.95 25.01 to 30.00 11 427,225.11 2.77 20.01 to 25.00 6 251,240.00 1.63 15.01 to 20.00 5 145,096.00 0.94 10.01 to 15.00 3 42,257.91 0.27 - -------------------------------------------------------------------------- Total............ 222 $ 15,430,315.71 100.00% ========================================================================== ORIGINAL LOAN-TO-VALUE RATIOS Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Loan-To-Value Mortgage Principal Principal Ratio Loans Balance Balance 80.01 to 85.00 1 101,419.23 0.66 75.01 to 80.00 6 629,017.46 4.08 70.01 to 75.00 15 1,453,140.76 9.42 65.01 to 70.00 23 2,311,746.31 14.98 60.01 to 65.00 24 1,970,705.23 12.77 55.01 to 60.00 21 2,005,173.89 13.00 50.01 to 55.00 23 1,720,005.70 11.15 45.01 to 50.00 24 1,661,063.64 10.76 40.01 to 45.00 15 891,000.00 5.77 35.01 to 40.00 9 501,961.65 3.25 30.01 to 35.00 20 869,551.57 5.64 25.01 to 30.00 14 550,754.45 3.57 20.01 to 25.00 7 271,240.00 1.76 15.01 to 20.00 10 312,593.94 2.03 10.01 to 15.00 6 134,450.80 0.87 5.01 to 10.00 3 37,186.63 0.24 0.01 to 5.00 1 9,304.45 0.06 - -------------------------------------------------------------------------- Total............ 222 $ 15,430,315.71 100.00% ========================================================================== THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. GROSS MORTGAGE INTEREST RATE RANGE Percentage of Aggregate Cut-Off Date Gross Mortgage Number of Unpaid Aggregate Interest Rate Mortgage Principal Principal Range Loans Balance Balance 8.00% < Gross Coupon <= 8.50% 1 95,941.84 0.62 8.50% < Gross Coupon <= 9.00% 7 741,065.56 4.80 9.00% < Gross Coupon <= 9.50% 11 933,251.66 6.05 9.50% < Gross Coupon <= 10.00% 58 4,654,577.49 30.17 10.00% < Gross Coupon <= 10.50% 31 2,521,862.89 16.34 10.50% < Gross Coupon <= 11.00% 36 2,526,596.08 16.37 11.00% < Gross Coupon <= 11.50% 20 1,249,071.58 8.09 11.50% < Gross Coupon <= 12.00% 13 760,770.70 4.93 12.00% < Gross Coupon <= 12.50% 5 294,498.95 1.91 12.50% < Gross Coupon <= 13.00% 8 532,123.80 3.45 13.00% < Gross Coupon <= 13.50% 4 224,877.13 1.46 13.50% < Gross Coupon <= 14.00% 13 467,144.83 3.03 14.00% < Gross Coupon <= 14.50% 2 78,337.66 0.51 14.50% < Gross Coupon <= 15.00% 4 117,283.39 0.76 15.00% < Gross Coupon <= 15.50% 8 219,646.70 1.42 16.50% < Gross Coupon <= 17.00% 1 13,265.45 0.09 - ---------------------------------------------------------------------------- Total.......... 222 $ 15,430,315.71 100.00% ============================================================================ GEOGRAPHICAL DISTRIBUTION OF MORTGAGED PROPERTIES Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal State Loans Balance Balance AZ 1 33,178.00 0.22 CA 88 5,992,876.20 38.84 CO 10 557,310.00 3.61 FL 16 1,441,664.05 9.34 GA 13 653,890.57 4.24 IL 16 1,251,146.10 8.11 NJ 13 1,071,818.33 6.95 NY 25 1,868,994.86 12.11 OH 1 56,030.00 0.36 OR 5 330,223.86 2.14 PA 3 188,579.49 1.22 UT 15 995,793.78 6.45 WA 16 988,810.47 6.41 - -------------------------------------------------------------------------- Total............... 222 $ 15,430,315.71 100.00% ========================================================================== REMAINING MONTHS TO STATED MATURITY Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Remaining Term Loans Balance Balance 72 < Rem Term <= 84 2 33,718.62 0.22% 96 < Rem Term <= 108 1 17,077.35 0.11% 108 < Rem Term <= 120 25 929,506.43 6.02% 168 < Rem Term <= 180 48 2,788,471.47 18.07% 228 < Rem Term <= 240 4 253,447.65 1.64% 348 < Rem Term <= 360 142 11,408,094.19 73.93% - ------------------------------------------------------------------- Total............ 222 15,430,315.71 100.00% =================================================================== THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. CURRENT MORTGAGE LOAN AMOUNTS Percentage of Aggregate Cut-Off Date Current Number of Unpaid Aggregate Mortgage Loan Mortgage Principal Principal Principal Balance Loans Balance Balance 5,000 < Balance <= 10,000 1 9,304.45 0.06 10,000 < Balance <= 15,000 4 50,134.09 0.32 15,000 < Balance <= 20,000 6 112,902.03 0.73 20,000 < Balance <= 25,000 5 107,290.48 0.70 25,000 < Balance <= 30,000 10 282,238.46 1.83 30,000 < Balance <= 35,000 9 297,836.65 1.93 35,000 < Balance <= 40,000 10 371,962.33 2.41 40,000 < Balance <= 45,000 12 506,121.79 3.28 45,000 < Balance <= 50,000 21 993,980.93 6.44 50,000 < Balance <= 55,000 14 737,427.18 4.78 55,000 < Balance <= 60,000 11 636,643.82 4.13 60,000 < Balance <= 65,000 12 749,129.86 4.85 65,000 < Balance <= 70,000 13 876,580.87 5.68 70,000 < Balance <= 75,000 9 656,556.84 4.25 75,000 < Balance <= 80,000 19 1,472,369.69 9.54 80,000 < Balance <= 85,000 9 741,125.85 4.80 85,000 < Balance <= 90,000 6 528,150.65 3.42 90,000 < Balance <= 95,000 10 929,341.00 6.02 95,000 < Balance <= 100,000 10 981,189.13 6.36 100,000 < Balance <= 125,000 13 1,452,859.61 9.42 125,000 < Balance <= 150,000 9 1,261,948.00 8.18 150,000 < Balance <= 200,000 6 1,027,156.00 6.66 200,000 < Balance <= 250,000 3 648,066.00 4.20 - -------------------------------------------------------------------------- Total.................... 222 $ 15,430,315.71 100.00% ========================================================================== MORTGAGED PROPERTIES Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Loans Balance Balance Single Family 208 14,531,635.12 94.18 PUD 1 72,880.00 0.47 Condo 5 232,051.00 1.50 2-4 Family 8 593,749.59 3.85 - -------------------------------------------------------------------------- Total............... 222 $ 15,430,315.71 100.00% ========================================================================== LOAN SUMMARY STRATIFIED BY OWNER OCCUPANCY Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Occupancy Status Loans Balance Balance Owner Occupied 213 14,868,492.92 96.36 Investor 9 561,822.79 3.64 - -------------------------------------------------------------------------- Total.................. 222 $ 15,430,315.71 100.00% ========================================================================== THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. ORIGINAL JUNIOR LIEN RATIOS Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Junior Lien Mortgage Principal Principal Ratio Loans Balance Balance 10.01 to 20.00 3 42,757.39 0.28 20.01 to 30.00 4 98,406.22 0.64 30.01 to 40.00 4 93,655.59 0.61 40.01 to 50.00 3 105,636.20 0.68 50.01 to 60.00 1 29,822.16 0.19 60.01 to 70.00 2 94,472.34 0.61 70.01 to 80.00 3 118,309.47 0.77 80.01 to 90.00 4 180,677.86 1.17 90.01 to 100.00 198 14,666,578.48 95.05 - -------------------------------------------------------------------------- Total............ 222 $ 15,430,315.71 100.00% ========================================================================== LIEN SUMMARY Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Loans Balance Balance 1 196 14,545,586.38 94.27 2 24 839,289.38 5.44 3 2 45,439.95 0.29 - -------------------------------------------------------------------------- Total............... 222 $ 15,430,315.71 100.00% ========================================================================== PREPAYMENT PENALTY Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Loans Balance Balance NONE 98 7,602,402.72 49.27 1 1 56,030.00 0.36 2 13 995,186.53 6.45 6 110 6,776,696.46 43.92 - -------------------------------------------------------------------------- Total............... 222 $ 15,430,315.71 100.00% ========================================================================== 1 = 1% of original principal balance for 5 years 2 = 3 mos interest on 100% of UPB for 3 years 6 = 6 mos interest on 80% of UPB for 5 years THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. LOAN SUMMARY STRATIFIED BY LOAN PURPOSE Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Loans Balance Balance Business Capital 1 68,074.95 0.44 Purchase 1 95,941.84 0.62 Refinance/Cashout 171 12,803,468.84 82.98 Investment 1 77,062.00 0.50 Debt Consolidation 33 1,861,148.12 12.06 Home Improvement 15 524,619.96 3.40 - -------------------------------------------------------------------------- Total.................. 222 $ 15,430,315.71 100.00% ========================================================================== LOAN SUMMARY STRATIFIED BY DOCUMENTATION LEVEL Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Loans Balance Balance Full Documentation 193 13,682,138.24 88.67 Alternate Documentation 19 1,299,929.09 8.42 No Documentation 10 448,248.38 2.90 - -------------------------------------------------------------------------------- Total.................. 222 $ 15,430,315.71 100.00% ================================================================================ THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. - -------------------------------------------------------------------------------- - FAMT72 - Cut Off Date of Tape is 5/31/97 - 6M LIBOR ARMs - $40,897,671.06 - -------------------------------------------------------------------------------- Number of Mortgage Loans: 466 Loan Type: 100% 6M LIBOR ARMs Aggregate Unpaid Principal Balance: $40,897,671.06 Aggregate Original Principal Balance: $40,912,508.00 - -------------------------------------------------------------------------------- Weighted Average Coupon (Gross): 9.115% Gross Coupon Range: 6.315% - 14.750% Weighted Average Margin (Gross): 6.761% Gross Margin Range: 4.990% - 10.750% Weighted Average Life Cap (Gross): 16.111% Gross Life Cap Range: 13.315% - 21.750% Weighted Average Life Floor (Gross): 9.111% Gross Life Floor Range: 6.315% - 14.750% - -------------------------------------------------------------------------------- Average Unpaid Principal Balance: $87,763.24 Average Original Principal Balance: $87,795.08 Maximum Unpaid Principal Balance: $362,317.00 Minimum Unpaid Principal Balance: $19,951.63 Maximum Original Principal Balance: $362,317.00 Minimum Original Principal Balance: $20,001.00 Weighted Avg. Stated Rem. Term (PTD to Mat Date): 345.186 Stated Rem Term Range: 96.000 - 360.000 Weighted Average Age (First Pay thru Paid Thru): 0.236 Age Range: 0.000 - 7.000 Weighted Average Original Term: 345.422 Original Term Range: 96.000 - 360.000 Weighted Average Original LTV: 58.390 Original LTV Range: 8.811% - 80.000% Weighted Average Periodic Interest Cap: 1.026% Periodic Interest Cap Range: 1.000% - 1.500% Weighted Average Months to Interest Roll: 6.273 * calculated from 6/97 to next rolldate Months to Interest Roll Range: 1 - 8 Weighted Average Interest Roll Frequency: 6.000 Interest Frequency Range: 6 - 6 Lien Status 100% First Lien - -------------------------------------------------------------------------------- LARGEST ZIP CODE CONCENTRATION FOR ARM LOANS ZIP # OF LOANS BALANCE CLTV % 84093 2 514,069.15 68.81 1.26% THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. ORIGINAL LOAN-TO-VALUE RATIOS Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Loan-To-Value Mortgage Principal Principal Ratio Loans Balance Balance 75.01 to 80.00 14 1,386,738.16 3.39 70.01 to 75.00 55 6,391,553.69 15.63 65.01 to 70.00 59 5,989,202.20 14.64 60.01 to 65.00 73 8,184,147.24 20.01 55.01 to 60.00 54 4,940,462.63 12.08 50.01 to 55.00 43 3,662,003.94 8.95 45.01 to 50.00 40 3,144,175.79 7.69 40.01 to 45.00 27 2,123,801.50 5.19 35.01 to 40.00 27 1,670,447.20 4.08 30.01 to 35.00 30 1,656,384.54 4.05 25.01 to 30.00 20 923,698.22 2.26 20.01 to 25.00 12 446,582.00 1.09 15.01 to 20.00 8 283,863.32 0.69 10.01 to 15.00 3 74,522.63 0.18 5.01 to 10.00 1 20,088.00 0.05 - -------------------------------------------------------------------------- Total............ 466 $ 40,897,671.06 100.00% ========================================================================== GROSS MORTGAGE INTEREST RATE RANGE Percentage of Aggregate Cut-Off Date Gross Mortgage Number of Unpaid Aggregate Interest Rate Mortgage Principal Principal Range Loans Balance Balance 6.00% < Gross Coupon <= 6.50% 1 77,000.00 0.19 6.50% < Gross Coupon <= 7.00% 2 142,875.00 0.35 7.00% < Gross Coupon <= 7.50% 23 2,163,235.48 5.29 7.50% < Gross Coupon <= 8.00% 80 6,756,460.59 16.52 8.00% < Gross Coupon <= 8.50% 67 6,256,909.41 15.30 8.50% < Gross Coupon <= 9.00% 94 8,760,936.03 21.42 9.00% < Gross Coupon <= 9.50% 53 4,769,838.79 11.66 9.50% < Gross Coupon <= 10.00% 62 5,345,499.12 13.07 10.00% < Gross Coupon <= 10.50% 23 1,815,711.01 4.44 10.50% < Gross Coupon <= 11.00% 24 2,055,506.03 5.03 11.00% < Gross Coupon <= 11.50% 10 789,860.44 1.93 11.50% < Gross Coupon <= 12.00% 13 1,073,569.52 2.63 12.00% < Gross Coupon <= 12.50% 3 214,245.22 0.52 12.50% < Gross Coupon <= 13.00% 6 305,838.00 0.75 13.00% < Gross Coupon <= 13.50% 2 91,890.42 0.22 13.50% < Gross Coupon <= 14.00% 1 158,772.00 0.39 14.00% < Gross Coupon <= 14.50% 1 74,951.00 0.18 14.50% < Gross Coupon <= 15.00% 1 44,573.00 0.11 - ---------------------------------------------------------------------------- Total.......... 466 $ 40,897,671.06 100.00% ============================================================================ THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. GEOGRAPHICAL DISTRIBUTION OF MORTGAGED PROPERTIES Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal State Loans Balance Balance AZ 17 1,318,779.00 3.22 CA 77 8,934,506.44 21.85 CO 16 1,247,061.67 3.05 FL 19 1,370,154.38 3.35 GA 5 297,559.00 0.73 ID 2 148,276.75 0.36 IL 53 4,614,954.37 11.28 MA 5 423,323.00 1.04 NJ 58 4,356,055.19 10.65 NY 70 6,169,823.52 15.09 OH 21 1,309,413.76 3.20 OR 34 2,864,179.21 7.00 PA 25 1,982,693.26 4.85 UT 26 2,538,878.15 6.21 WA 38 3,322,013.36 8.12 - -------------------------------------------------------------------------- Total............... 466 $ 40,897,671.06 100.00% ========================================================================== REMAINING MONTHS TO STATED MATURITY Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Remaining Term Loans Balance Balance 84 < Rem Term <= 96 1 21,563.00 0.05% 108 < Rem Term <= 120 2 71,013.20 0.17% 168 < Rem Term <= 180 49 3,081,141.94 7.53% 228 < Rem Term <= 240 4 157,210.00 0.38% 348 < Rem Term <= 360 410 37,566,742.92 91.86% - ------------------------------------------------------------------- Total............ 466 40,897,671.06 100.00% =================================================================== CURRENT MORTGAGE LOAN AMOUNTS Percentage of Aggregate Cut-Off Date Current Number of Unpaid Aggregate Mortgage Loan Mortgage Principal Principal Principal Balance Loans Balance Balance 15,000 < Balance <= 20,000 1 19,951.63 0.05 20,000 < Balance <= 25,000 9 198,643.00 0.49 25,000 < Balance <= 30,000 7 199,238.20 0.49 30,000 < Balance <= 35,000 9 292,878.09 0.72 35,000 < Balance <= 40,000 19 713,715.45 1.75 40,000 < Balance <= 45,000 22 942,333.16 2.30 45,000 < Balance <= 50,000 20 954,655.39 2.33 50,000 < Balance <= 55,000 18 949,371.40 2.32 55,000 < Balance <= 60,000 21 1,220,036.87 2.98 60,000 < Balance <= 65,000 26 1,634,492.39 4.00 65,000 < Balance <= 70,000 27 1,818,147.75 4.45 70,000 < Balance <= 75,000 37 2,694,250.96 6.59 75,000 < Balance <= 80,000 24 1,862,261.37 4.55 80,000 < Balance <= 85,000 19 1,575,933.58 3.85 85,000 < Balance <= 90,000 18 1,576,687.67 3.86 90,000 < Balance <= 95,000 21 1,947,800.50 4.76 95,000 < Balance <= 100,000 31 3,023,545.67 7.39 100,000 < Balance <= 125,000 71 7,853,758.41 19.20 125,000 < Balance <= 150,000 31 4,214,942.93 10.31 150,000 < Balance <= 200,000 21 3,531,958.98 8.64 200,000 < Balance <= 250,000 7 1,564,910.15 3.83 250,000 < Balance <= 300,000 3 782,585.95 1.91 300,000 < Balance <= 350,000 3 963,254.56 2.36 350,000 < Balance <= 400,000 1 362,317.00 0.89 - -------------------------------------------------------------------------- Total.................... 466 $ 40,897,671.06 100.00% ========================================================================== THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. MORTGAGED PROPERTIES Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Loans Balance Balance Single Family 434 38,034,331.68 93.00 PUD 3 196,046.00 0.48 Condo 5 493,656.05 1.21 2-4 Family 24 2,173,637.33 5.31 - -------------------------------------------------------------------------- Total............... 466 $ 40,897,671.06 100.00% ========================================================================== LOAN SUMMARY STRATIFIED BY OWNER OCCUPANCY Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Occupancy Status Loans Balance Balance Owner Occupied 447 39,169,660.57 95.77 Investor 19 1,728,010.49 4.23 - -------------------------------------------------------------------------- Total.................. 466 $ 40,897,671.06 100.00% ========================================================================== DISTRIBUTION OF MAXIMUM MORTGAGE RATES Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Gross Mortgage Principal Principal Life Cap Loans Balance Balance 13.00 < Life Cap <= 13.50 1 77,000.00 0.19 13.50 < Life Cap <= 14.00 2 142,875.00 0.35 14.00 < Life Cap <= 14.50 23 2,163,235.48 5.29 14.50 < Life Cap <= 15.00 80 6,756,460.59 16.52 15.00 < Life Cap <= 15.50 67 6,256,909.41 15.30 15.50 < Life Cap <= 16.00 95 8,831,049.08 21.59 16.00 < Life Cap <= 16.50 53 4,769,838.79 11.66 16.50 < Life Cap <= 17.00 62 5,349,996.47 13.08 17.00 < Life Cap <= 17.50 23 1,815,711.01 4.44 17.50 < Life Cap <= 18.00 23 1,980,895.63 4.84 18.00 < Life Cap <= 18.50 10 789,860.44 1.93 18.50 < Life Cap <= 19.00 13 1,073,569.52 2.63 19.00 < Life Cap <= 19.50 3 214,245.22 0.52 19.50 < Life Cap <= 20.00 6 305,838.00 0.75 20.00 < Life Cap <= 20.50 2 91,890.42 0.22 20.50 < Life Cap <= 21.00 1 158,772.00 0.39 21.00 < Life Cap <= 21.50 1 74,951.00 0.18 21.50 < Life Cap <= 22.00 1 44,573.00 0.11 - -------------------------------------------------------------------------- Total................. 466 $ 40,897,671.06 100.00% ========================================================================== THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. DISTRIBUTION OF MINIMUM MORTGAGE RATES Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Gross Mortgage Principal Principal Life Floor Loans Balance Balance 6.00 < Life Floor <= 6.50 1 77,000.00 0.19 6.50 < Life Floor <= 7.00 2 142,875.00 0.35 7.00 < Life Floor <= 7.50 23 2,163,235.48 5.29 7.50 < Life Floor <= 8.00 80 6,756,460.59 16.52 8.00 < Life Floor <= 8.50 67 6,256,909.41 15.30 8.50 < Life Floor <= 9.00 95 8,831,049.08 21.59 9.00 < Life Floor <= 9.50 53 4,769,838.79 11.66 9.50 < Life Floor <= 10.00 62 5,349,996.47 13.08 10.00 < Life Floor <= 10.50 23 1,815,711.01 4.44 10.50 < Life Floor <= 11.00 23 1,980,895.63 4.84 11.00 < Life Floor <= 11.50 10 789,860.44 1.93 11.50 < Life Floor <= 12.00 13 1,073,569.52 2.63 12.00 < Life Floor <= 12.50 3 214,245.22 0.52 12.50 < Life Floor <= 13.00 6 305,838.00 0.75 13.00 < Life Floor <= 13.50 2 91,890.42 0.22 13.50 < Life Floor <= 14.00 1 158,772.00 0.39 14.00 < Life Floor <= 14.50 1 74,951.00 0.18 14.50 < Life Floor <= 15.00 1 44,573.00 0.11 - -------------------------------------------------------------------------- Total................. 466 $ 40,897,671.06 100.00% ========================================================================== DISTRIBUTION OF MARGINS Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Gross Mortgage Principal Principal Margin Loans Balance Balance 4.0 < Margin <= 5.0 43 3,338,210.87 8.16 5.0 < Margin <= 6.0 132 11,426,577.86 27.94 6.0 < Margin <= 7.0 130 12,512,987.68 30.60 7.0 < Margin <= 8.0 116 10,003,827.26 24.46 8.0 < Margin <= 9.0 36 2,981,378.75 7.29 9.0 < Margin <= 10.0 6 356,392.64 0.87 10.0 < Margin <= 11.0 3 278,296.00 0.68 - -------------------------------------------------------------------------- Total................. 466 $ 40,897,671.06 100.00% ========================================================================== LOAN SUMMARY STRATIFIED BY PERIODIC CAP Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Periodic Mortgage Principal Principal Cap Loans Balance Balance 1.000 448 38,788,339.44 94.84 1.500 18 2,109,331.62 5.16 - -------------------------------------------------------------------------- Total................. 466 $ 40,897,671.06 100.00% ========================================================================== THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. LOAN SUMMARY STRATIFIED BY LOAN PURPOSE Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Loans Balance Balance Business Capital 2 161,281.00 0.39 Refinance/Cashout 378 35,425,234.21 86.62 Investment 3 283,402.00 0.69 Debt Consolidation 55 3,576,275.22 8.74 Home Improvement 28 1,451,478.63 3.55 - -------------------------------------------------------------------------- Total.................. 466 $ 40,897,671.06 100.00% ========================================================================== PREPAYMENT PENALTIES Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Loans Balance Balance NONE 306 27,149,833.53 66.38 1 15 984,056.88 2.41 3 3 241,630.00 0.59 6 142 12,522,150.65 30.62 - ------------------------------------------------------------------------ Total............... 466 $ 40,897,671.06 100.00% ======================================================================== 1 = 1% of original principal balance for 5 years 3 = 3 mos interest on 100% of UPB for 3 years 6 = 6 mos interest on 80% of UPB for 5 years LOAN SUMMARY STRATIFIED BY DOCUMENTATION LEVEL Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Loans Balance Balance Full Documentation 388 33,541,257.67 82.01 Alternate Documentation 36 3,267,029.00 7.99 No Documentation 42 4,089,384.39 10.00 - ---------------------------------------------------------------------------- Total.................. 466 $ 40,897,671.06 100.00% ============================================================================ THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL ADVISOR IMMEDIATELY THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE PROSPECTUS SUPPLEMENT. EX-99.2 3 EXHIBIT 99.2 LEHMAN BROTHERS COMPUTATIONAL MATERIALS $75,000,000 Certificates (Approximate) First Alliance Mortgage Loan Trust 1997-2 First Alliance Mortgage Company (Sponsor) - -------------------------------------------------------------------------------- This information does not constitute either an offer to sell or a solicitation of an offer to buy any of the securities referred to herein. Offers to sell and solicitations of offers to buy the securities are made only by , and this information must be read in conjunction with, the final Prospectus Supplement and the related Prospectus or, if not registered under the securities laws, the final Offering Memorandum (the "Offering Document"). Information contained herein does not purport to be complete and is subject to the same qualifications and assumptions, and should be considered by investors only in the light of the same warnings, lack of assurances and representations and other precautionary matters, as disclosed in the Offering Document. Information regarding the underlying assets has been provided by the issuer of the securities or an affiliate thereof and has not been independently verified by Lehman Brothers Inc. or any affiliate. The analyses contained herein have been prepared and delivered by Lehman Brothers Inc. and the contents and accuracy thereof have not been reviewed by the issuer. This information was prepared on the basis of certain assumptions (including, in certain cases, assumptions specified by the recipient hereof) regarding payments, interest rates, weighted average lives, weighted average loan age, losses and other matters, including, but not limited to, the assumptions described in the Offering Document. Lehman Brothers Inc., and any of its affiliates, make no representation or warranty as to the actual rate or timing of payments on any of the underlying assets or the payments or yield on the securities. This information supersedes any prior versions hereof and will be deemed to be superseded by any subsequent versions (including, with respect to any description of the securities or underlying assets, the information contained in the Offering Document). First Alliance Mortgage Loan Trust 1997-2 Title of Securities: First Alliance Mortgage Loan Trust 1997-2, Class A-1 Fixed Rate Group Certificates and Class A-2 Variable Rate Group Certificates (collectively, the "Certificates"). Certificate Description: Class A-1 Class A-2 --------- --------- Collateral: Fixed Rate Home Equity Variable Rate Home Equity Mortgage Loans Mortgage Loans Prepayment Assumption: [23% HEP] [27% CPR] Approximate Size: [$20,000,000] [$55,000,000] Average Life to Call: [3.496] [2.888] Average Life to maturity: [3.861] [3.095] Coupon: [.%] The lesser of: 1) One Month LIBOR + []bps 2) The Available Funds Cap Coupon Step-up: After the Clean-Up Call, After the Clean-up Call, the Coupon will the lesser of: be increased by 1) One Month LIBOR 50 bps. + 2x []bps 2) The Available Funds Cap Yield to Call: [.%] Variable Collateral Adjustment Frequency: N/A Every 6 months (Both Interest Rate & Payment) Payment Delay: [19] NONE Interest Accrual Basis: 30/360 Actual/360 Dated Date: [6/1/97] [6/26/97] Expected Maturity without Call: [12/20/15] [10/20/13] Expected Maturity with 10% Call: [03/20/05] [03/20/05] Stated Maturity: [/20/] [/20/] Pricing Date: [June __, 1997] [June __, 1997] Settlement Date: [June 27, 1997] [June 27, 1997] - -------------------------------------------------------------------------------- This information does not constitute either an offer to sell or a solicitation of an offer to buy any of the securities referred to herein. Offers to sell and solicitations of offers to buy the securities are made only by , and this information must be read in conjunction with, the final Prospectus Supplement and the related Prospectus or, if not registered under the securities laws, the final Offering Memorandum (the "Offering Document"). Information contained herein does not purport to be complete and is subject to the same qualifications and assumptions, and should be considered by investors only in the light of the same warnings, lack of assurances and representations and other precautionary matters, as disclosed in the Offering Document. Information regarding the underlying assets has been provided by the issuer of the securities or an affiliate thereof and has not been independently verified by Lehman Brothers Inc. or any affiliate. The analyses contained herein have been prepared and delivered by Lehman Brothers Inc. and the contents and accuracy thereof have not been reviewed by the issuer. This information was prepared on the basis of certain assumptions (including, in certain cases, assumptions specified by the recipient hereof) regarding payments, interest rates, weighted average lives, weighted average loan age, losses and other matters, including, but not limited to, the assumptions described in the Offering Document. Lehman Brothers Inc., and any of its affiliates, make no representation or warranty as to the actual rate or timing of payments on any of the underlying assets or the payments or yield on the securities. This information supersedes any prior versions hereof and will be deemed to be superseded by any subsequent versions (including, with respect to any description of the securities or underlying assets, the information contained in the Offering Document). First Alliance Mortgage Loan Trust 1997-2 Company and Servicer: First Alliance Mortgage Company, a California corporation. Servicing Fee: 50 basis points per annum. Trustee: The Chase Manhattan Bank Aggregate Group Balance: Fixed Rate Group $[20,000,000] Variable Rate Group $[55,000,000] Payment Date: The 20th day of each month or, if such day is not a business day, the next succeeding business day, beginning on July 20, 1997. Record Date: Class A-1 & Class A-2 - The last day of the calendar month immediately preceeding the related Payment Date. Interest Accrual Period: The interest accrual period for the Class A-1 Certificates is the calendar month prior to the month in which a distribution occurs. Interest will accrue on the Class A-2 Certificates from Payment Date to Payment Date. For the first Payment Date, interest will accrue from the Closing Date to the first Payment Date. Form of Certificates: Book-entry only through the same-day funds facilities of DTC, Euroclear and CEDEL. Denominations: Minimum denominations of $1,000 and integral multiples thereof. Prepayment Assumption: For the Class A-1 Fixed-Rate Group Certificates, [23]% HEP ([2.3]% CPR in month 1 with monthly incremental increases of [2.3]% CPR until the speed reaches [23]% CPR in month 10 based on loan seasoning.) For the Class A-2 Variable-Rate Group Certificates, [27]% CPR. 10% Clean-up Call: The Servicer has the option to exercise a call when the aggregate mortgage loan balance equals 10% or less of the original aggregate collateral balance and the original aggregate amount of the prefunding accounts. The call will be exercised at par plus accrued interest. Coupon Step-Up: If the Servicer does not exercise the Cleanup Call, the coupon on the Class A-1 Certificates shall be raised to [.]% + 0.50%. If the Servicer does not exercise the Cleanup Call, the coupon on the Class A-2 Certificates shall be raised to 1M LIBOR + 2x []bps, subject to the Monthly Available Funds Cap. - -------------------------------------------------------------------------------- This information does not constitute either an offer to sell or a solicitation of an offer to buy any of the securities referred to herein. Offers to sell and solicitations of offers to buy the securities are made only by , and this information must be read in conjunction with, the final Prospectus Supplement and the related Prospectus or, if not registered under the securities laws, the final Offering Memorandum (the "Offering Document"). Information contained herein does not purport to be complete and is subject to the same qualifications and assumptions, and should be considered by investors only in the light of the same warnings, lack of assurances and representations and other precautionary matters, as disclosed in the Offering Document. Information regarding the underlying assets has been provided by the issuer of the securities or an affiliate thereof and has not been independently verified by Lehman Brothers Inc. or any affiliate. The analyses contained herein have been prepared and delivered by Lehman Brothers Inc. and the contents and accuracy thereof have not been reviewed by the issuer. This information was prepared on the basis of certain assumptions (including, in certain cases, assumptions specified by the recipient hereof) regarding payments, interest rates, weighted average lives, weighted average loan age, losses and other matters, including, but not limited to, the assumptions described in the Offering Document. Lehman Brothers Inc., and any of its affiliates, make no representation or warranty as to the actual rate or timing of payments on any of the underlying assets or the payments or yield on the securities. This information supersedes any prior versions hereof and will be deemed to be superseded by any subsequent versions (including, with respect to any description of the securities or underlying assets, the information contained in the Offering Document). First Alliance Mortgage Loan Trust 1997-2 Available Funds Cap: The Available Funds Cap is the weighted average of the Mortgage Rates on the Mortgage Loans in the Variable Rate Group, less the sum of (a) the VariableRate Group Servicing Fee (50 bps), (b) beginning on the Second Payment Date from the Closing Date, the premiums due to the Certificate Insurer with respect to the Certificate Insurance Policy relating to the Class A-2 Certificates, (c) the fees due to the Trustee relating to the Class A-2 Certificates, and (d) beginning on the [seventh] Payment Date from the Closing Date, [0.50%], expressed as a percentage of the Mortgage loans in the Variable Rate Group, calculated as of the first day of the related Remittance Period. Interest Carry Forward: The Class A-2 Certificates will have an interest carry forward feature. The excess of the interest accrued on the Class A-2 Certificates over the amount of interest actually distributed will be paid on future Remittance Dates to the extent of Class A-2 Available funds prior to distributing any Excess Spread to the holder of the Class R Certificate. The Interest Carryover Amount will accrue interest at the Class A-2 Certificate Rate. No interest Carryover will be paid once its principal balance has been reduced to zero. The Interest Carryover Amount is not guaranteed by MBIA. There will be no make-whole of the interest carry forward at the call date. Pre-Funding Account: On the Closing Date, approximately [$14,102,328.94] will be deposited in a pre-funding account for the purchase of additional floating-rate mortgage loans and [$4,569,684.29] will be deposited in a pre-funding account for the purchase of additional fixed-rate mortgage loans. From the Closing Date until [July 20,1997] the Trust intends to purchase mortgage loans up to the entire pre-funding amounts. The additional mortgage loans, purchased with funds deposited in the prefunding account, will be subject to certain individual and aggregate group characteristics that will be more fully described in the Prospectus Supplement. Funds remaining in the fixed-rate pre-funding account will be distributed to the Class A-1 Certificateholders as a prepayment on the July 1997 Payment Date. Funds remaining in the floating-rate pre-funding account will be distributed to the Class A-2 Certificateholders as a prepayment on the July 1997 Payment Date. Credit Enhancement: A combination of: - Overcollateralization. - Cross-collateralization of excess spread - 100% wrap from MBIA guarantee of timely interest and ultimate principal. Certificate Ratings: The Certificates will be rated AAA by Standard & Poor's and Aaa by Moody's Investor Service. Certificate Insurer: MBIA Insurance Corporation ("MBIA"). MBIA's claims-paying ability is rated AAA/Aaa by Standard and Poor's and Moody's. - -------------------------------------------------------------------------------- This information does not constitute either an offer to sell or a solicitation of an offer to buy any of the securities referred to herein. Offers to sell and solicitations of offers to buy the securities are made only by , and this information must be read in conjunction with, the final Prospectus Supplement and the related Prospectus or, if not registered under the securities laws, the final Offering Memorandum (the "Offering Document"). Information contained herein does not purport to be complete and is subject to the same qualifications and assumptions, and should be considered by investors only in the light of the same warnings, lack of assurances and representations and other precautionary matters, as disclosed in the Offering Document. Information regarding the underlying assets has been provided by the issuer of the securities or an affiliate thereof and has not been independently verified by Lehman Brothers Inc. or any affiliate. The analyses contained herein have been prepared and delivered by Lehman Brothers Inc. and the contents and accuracy thereof have not been reviewed by the issuer. This information was prepared on the basis of certain assumptions (including, in certain cases, assumptions specified by the recipient hereof) regarding payments, interest rates, weighted average lives, weighted average loan age, losses and other matters, including, but not limited to, the assumptions described in the Offering Document. Lehman Brothers Inc., and any of its affiliates, make no representation or warranty as to the actual rate or timing of payments on any of the underlying assets or the payments or yield on the securities. This information supersedes any prior versions hereof and will be deemed to be superseded by any subsequent versions (including, with respect to any description of the securities or underlying assets, the information contained in the Offering Document). First Alliance Mortgage Loan Trust 1997-2 Certificate Insurance: Timely payments of interest and the ultimate payment of principal on the Certificates will be 100% guaranteed by MBIA. ERISA Considerations: The Certificates will not be ERISA eligible during the Prefunding Period. At the end of the Prefunding Period, the Certificates may be ERISA eligible. Investors should consult with their counsel with respect to the consequences under ERISA and the Code of the Plan's acquisition and ownership of such certificates. SMMEA: The Certificates will NOT constitute "mortgage related securities" for purposes of SMMEA. Taxation: REMIC. Prospectus: The Certificates are being offered pursuant to a Prospectus which includes a Prospectus Supplement (together, the "Prospectus"). Complete information with respect to the Certificates and the Collateral is contained in the Prospectus. The foregoing is qualified in its entirety by the information appearing in the Prospectus. To the extent that the foregoing is inconsistent with the Prospectus, the Prospectus shall govern in all respects. Sales of the Certificates may not be consumated unless the purchaser has received the Prospectus. - -------------------------------------------------------------------------------- This information does not constitute either an offer to sell or a solicitation of an offer to buy any of the securities referred to herein. Offers to sell and solicitations of offers to buy the securities are made only by , and this information must be read in conjunction with, the final Prospectus Supplement and the related Prospectus or, if not registered under the securities laws, the final Offering Memorandum (the "Offering Document"). Information contained herein does not purport to be complete and is subject to the same qualifications and assumptions, and should be considered by investors only in the light of the same warnings, lack of assurances and representations and other precautionary matters, as disclosed in the Offering Document. Information regarding the underlying assets has been provided by the issuer of the securities or an affiliate thereof and has not been independently verified by Lehman Brothers Inc. or any affiliate. The analyses contained herein have been prepared and delivered by Lehman Brothers Inc. and the contents and accuracy thereof have not been reviewed by the issuer. This information was prepared on the basis of certain assumptions (including, in certain cases, assumptions specified by the recipient hereof) regarding payments, interest rates, weighted average lives, weighted average loan age, losses and other matters, including, but not limited to, the assumptions described in the Offering Document. Lehman Brothers Inc., and any of its affiliates, make no representation or warranty as to the actual rate or timing of payments on any of the underlying assets or the payments or yield on the securities. This information supersedes any prior versions hereof and will be deemed to be superseded by any subsequent versions (including, with respect to any description of the securities or underlying assets, the information contained in the Offering Document). First Alliance Mortgage Loan Trust 1997-2 AVAILABLE FUNDS CAP Cap: Net WAC - fees - 50bps cushion (starting month7) (30/360 day count) DATE COUPON - ---- ------ 07/97 8.448 08/97 8.448 09/97 8.449 10/97 8.449 11/97 8.449 12/97 8.579 01/98 8.079 02/98 8.515 03/98 8.903 04/98 8.971 05/98 8.971 06/98 9.102 07/98 9.102 08/98 9.537 09/98 9.926 10/98 9.994 11/98 9.994 12/98 10.124 01/99 10.125 02/99 10.560 03/99 10.948 04/99 11.016 05/99 11.016 06/99 11.081 07/99 11.081 08/99 11.318 09/99 11.514 10/99 11.549 11/99 11.549 12/99 11.549 01/00 11.549 02/00 11.549 03/00 11.549 04/00 11.549 05/00 11.549 06/00 11.549 07/00 11.549 - -------------------------------------------------------------------------------- This information does not constitute either an offer to sell or a solicitation of an offer to buy any of the securities referred to herein. Offers to sell and solicitations of offers to buy the securities are made only by , and this information must be read in conjunction with, the final Prospectus Supplement and the related Prospectus or, if not registered under the securities laws, the final Offering Memorandum (the "Offering Document"). Information contained herein does not purport to be complete and is subject to the same qualifications and assumptions, and should be considered by investors only in the light of the same warnings, lack of assurances and representations and other precautionary matters, as disclosed in the Offering Document. Information regarding the underlying assets has been provided by the issuer of the securities or an affiliate thereof and has not been independently verified by Lehman Brothers Inc. or any affiliate. The analyses contained herein have been prepared and delivered by Lehman Brothers Inc. and the contents and accuracy thereof have not been reviewed by the issuer. This information was prepared on the basis of certain assumptions (including, in certain cases, assumptions specified by the recipient hereof) regarding payments, interest rates, weighted average lives, weighted average loan age, losses and other matters, including, but not limited to, the assumptions described in the Offering Document. Lehman Brothers Inc., and any of its affiliates, make no representation or warranty as to the actual rate or timing of payments on any of the underlying assets or the payments or yield on the securities. This information supersedes any prior versions hereof and will be deemed to be superseded by any subsequent versions (including, with respect to any description of the securities or underlying assets, the information contained in the Offering Document). First Alliance Mortgage Loan Trust 1997-2 AVAILABLE FUNDS CAP Cap: Net WAC - fees - 50bps cushion (starting month7) (30/360 day count) DATE COUPON - ---- ------ 08/00 11.549 09/00 11.549 10/00 11.549 11/00 11.549 12/00 11.549 01/01 11.549 02/01 11.549 03/01 11.549 04/01 11.549 05/01 11.549 06/01 11.549 07/01 11.549 08/01 11.549 09/01 11.549 10/01 11.549 11/01 11.549 12/01 11.549 01/02 11.549 02/02 11.549 03/02 11.549 04/02 11.549 05/02 11.549 06/02 11.549 07/02 11.549 08/02 11.549 - -------------------------------------------------------------------------------- This information does not constitute either an offer to sell or a solicitation of an offer to buy any of the securities referred to herein. Offers to sell and solicitations of offers to buy the securities are made only by , and this information must be read in conjunction with, the final Prospectus Supplement and the related Prospectus or, if not registered under the securities laws, the final Offering Memorandum (the "Offering Document"). Information contained herein does not purport to be complete and is subject to the same qualifications and assumptions, and should be considered by investors only in the light of the same warnings, lack of assurances and representations and other precautionary matters, as disclosed in the Offering Document. Information regarding the underlying assets has been provided by the issuer of the securities or an affiliate thereof and has not been independently verified by Lehman Brothers Inc. or any affiliate. The analyses contained herein have been prepared and delivered by Lehman Brothers Inc. and the contents and accuracy thereof have not been reviewed by the issuer. This information was prepared on the basis of certain assumptions (including, in certain cases, assumptions specified by the recipient hereof) regarding payments, interest rates, weighted average lives, weighted average loan age, losses and other matters, including, but not limited to, the assumptions described in the Offering Document. Lehman Brothers Inc., and any of its affiliates, make no representation or warranty as to the actual rate or timing of payments on any of the underlying assets or the payments or yield on the securities. This information supersedes any prior versions hereof and will be deemed to be superseded by any subsequent versions (including, with respect to any description of the securities or underlying assets, the information contained in the Offering Document). First Alliance Mortgage Loan Trust 1997-2 CURRENT BALANCE: $20,000,000.00 DATED DATE: 06/01/97 COUPON: TBD FIRST PAYMENT: 07/20/97 FACTOR: 1.0000000000 TOTAL CLASSES: 2 ORIGINAL BALANCE: $20,000,000.00 YIELD TABLE DATE: 06/27/97 FAMT72 BOND A1 PRICE-YIELD TABLE PREPAYMENT SPEED *** PRICED TO 10% CALL ***

- -------------------------------------------------------------------------------- This information does not constitute either an offer to sell or a solicitation of an offer to buy any of the securities referred to herein. Offers to sell and solicitations of offers to buy the securities are made only by , and this information must be read in conjunction with, the final Prospectus Supplement and the related Prospectus or, if not registered under the securities laws, the final Offering Memorandum (the "Offering Document"). Information contained herein does not purport to be complete and is subject to the same qualifications and assumptions, and should be considered by investors only in the light of the same warnings, lack of assurances and representations and other precautionary matters, as disclosed in the Offering Document. Information regarding the underlying assets has been provided by the issuer of the securities or an affiliate thereof and has not been independently verified by Lehman Brothers Inc. or any affiliate. The analyses contained herein have been prepared and delivered by Lehman Brothers Inc. and the contents and accuracy thereof have not been reviewed by the issuer. This information was prepared on the basis of certain assumptions (including, in certain cases, assumptions specified by the recipient hereof) regarding payments, interest rates, weighted average lives, weighted average loan age, losses and other matters, including, but not limited to, the assumptions described in the Offering Document. Lehman Brothers Inc., and any of its affiliates, make no representation or warranty as to the actual rate or timing of payments on any of the underlying assets or the payments or yield on the securities. This information supersedes any prior versions hereof and will be deemed to be superseded by any subsequent versions (including, with respect to any description of the securities or underlying assets, the information contained in the Offering Document). First Alliance Mortgage Loan Trust 1997-2 - FAMT72 - Cut Off Date of Tape is 5/31/97 - FIX - $15,430,315.71 - Mortgage Summary Report - -------------------------------------------------------------------------------- Number of Mortgage Loans: 222 Aggregate Unpaid Principal Balance: $15,430,315.71 Aggregate Original Principal Balance: $15,596,000.00 Weighted Average Gross Coupon: 10.675% Gross Coupon Range: 8.500% - 16.950% - -------------------------------------------------------------------------------- Average Unpaid Principal Balance: $69,505.93 Average Original Principal Balance: $70,252.25 Maximum Unpaid Principal Balance: $233,764.00 Minimum Unpaid Principal Balance: $9,304.45 Maximum Original Principal Balance: $233,764.00 Minimum Original Principal Balance: $11,000.00 Weighted Avg. Stated Rem. Term (PTD to Mat Date): 309.677 Stated Rem Term Range: 80.000 - 360.000 Weighted Avg. Amortized Rem. Term: 309.511 Amortized Rem Term Range: 79.997 - 360.056 Weighted Average Age (First Pay thru Paid Thru Date): 3.598 Age Range: 0.000 - 73.000 Weighted Average Original Term: 313.274 Original Term Range: 120.000 - 360.000 Weighted Average Original LTV: 54.861 Original LTV Range: 4.800% - 83.250% Weighted Average Combined LTV: 56.017 Combined LTV Range: 12.350% - 83.250% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- This information does not constitute either an offer to sell or a solicitation of an offer to buy any of the securities referred to herein. Offers to sell and solicitations of offers to buy the securities are made only by , and this information must be read in conjunction with, the final Prospectus Supplement and the related Prospectus or, if not registered under the securities laws, the final Offering Memorandum (the "Offering Document"). Information contained herein does not purport to be complete and is subject to the same qualifications and assumptions, and should be considered by investors only in the light of the same warnings, lack of assurances and representations and other precautionary matters, as disclosed in the Offering Document. Information regarding the underlying assets has been provided by the issuer of the securities or an affiliate thereof and has not been independently verified by Lehman Brothers Inc. or any affiliate. The analyses contained herein have been prepared and delivered by Lehman Brothers Inc. and the contents and accuracy thereof have not been reviewed by the issuer. This information was prepared on the basis of certain assumptions (including, in certain cases, assumptions specified by the recipient hereof) regarding payments, interest rates, weighted average lives, weighted average loan age, losses and other matters, including, but not limited to, the assumptions described in the Offering Document. Lehman Brothers Inc., and any of its affiliates, make no representation or warranty as to the actual rate or timing of payments on any of the underlying assets or the payments or yield on the securities. This information supersedes any prior versions hereof and will be deemed to be superseded by any subsequent versions (including, with respect to any description of the securities or underlying assets, the information contained in the Offering Document). -----END PRIVACY-ENHANCED MESSAGE-----