-----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, Mrhi0zs46RkuCiKwB0XKf/x3/gKLIi2/uvpgZ1iNHYsyHunlE3z1SPEpji95jpDD JsvcaC6nK2GJPPxuZ9gVEQ== 0001024739-98-000873.txt : 19980915 0001024739-98-000873.hdr.sgml : 19980915 ACCESSION NUMBER: 0001024739-98-000873 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980910 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980914 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: 952944875 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-11947 FILM NUMBER: 98708916 BUSINESS ADDRESS: STREET 1: 17305 VON KARMAN AVE STREET 2: SUITE 5000 CITY: IRVINE STATE: CA ZIP: 92714 BUSINESS PHONE: 7142248400 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) September 10, 1998 First Alliance Mortgage Company ------------------------------------------------------ (Exact name of registrant as specified in its charter) California 333-44585-03 95-2944875 - ------------------------------- ---------------- ------------------- (State or Other Jurisdiction of (Commission File (I.R.S. Employer Incorporation) Number) Identification No.) 17305 Von Karman Avenue Irvine, California 92614-6203 --------------------------------------- ---------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code (949) 224-8500 -------------- 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 1998-3, described in a Prospectus Supplement to be dated as of September 14, 1998, 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 (the "Related Computational Materials"). The Related Computational Materials furnished to certain prospective investors by the lead Underwriter, Prudential Securities Incorporated, are filed herewith as Exhibit 99.1. In addition, Wheat First Securities, Inc., acting through First Union Capital Markets, a division of Wheat First Securities, Inc. ("First Union Capital Markets"), as co-underwriter, has furnished Related Computational Materials to certain prospective investors, which are substantially identical to the Related Computational Materials furnished by Prudential Securities Incorporated, other than the disclosure in First Union Capital Markets' legend. Therefore, only First Union Capital Markets' legend has been filed herewith. 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 Legend to the Related Computational Materials furnished by First Union Capital Markets. 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/ Francisco Nebot ---------------------------------- Name: Francisco Nebot Title: Executive Vice President and Chief Financial Officer Dated: September 10, 1998 EX-99.1 2 MORTGAGE LOAN TRUST 1998-3 Exhibit 99.1 First Alliance Mortgage Loan Trust 1998-3 Mortgage Loan Asset Backed Certificates, Series 1998-3 [$100,000,000] Class A Certificates -------------------------------------------------------------------------- [$30,000,000] Class A-1 Fixed Rate Group Certificates - [TBD]% (non-SMMEA-eligible) [$22,000,000] Class A-2 Fixed Rate Group Certificates - [TBD]% (non-SMMEA-eligible) [$18,000,000] Class A-3 Fixed Rate Group Certificates - [TBD]% (non-SMMEA-eligible) [$30,000,000] Class A-4 Floating Rate Group Certificates - 1M LIBOR + [TBD] bps. (non-SMMEA-eligible) The information provided herein is provided solely by Prudential Securities Incorporated ("PSI") as underwriter for the First Alliance Mortgage Loan Trust 1998-3 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 1998-3 Mortgage Loan Asset Backed Certificates, Series 1998-3 - ------------------------------------------------------------------------------- Title of Securities: First Alliance Mortgage Loan Trust 1998-3, Class A-1, Class A-2 and Class A-3 Fixed Rate Group Certificates and Class A-4 Variable Rate Group Certificates (collectively, the "Certificates").

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 FOR BOND A4 Cap: Net WAC - Trustee Fee (2 bps) - Surety Fee (13 bps) - 50 bps cushion (starting month 7) DATE Av Funds Cap (30/360 Basis) - ----------------------------------- 10/98 7.666 11/98 7.665 12/98 7.665 01/99 7.665 02/99 7.665 03/99 8.063 04/99 7.845 05/99 8.056 06/99 8.236 07/99 8.236 08/99 8.236 09/99 8.634 10/99 8.905 11/99 9.116 12/99 9.294 01/00 9.294 02/00 9.294 03/00 9.606 04/00 9.744 05/00 9.953 06/00 10.132 07/00 10.132 08/00 10.132 09/00 10.132 10/00 10.132 11/00 10.132 12/00 10.137 01/01 10.137 02/01 10.137 03/01 10.137 04/01 10.137 05/01 10.137 06/01 10.137 07/01 10.137 08/01 10.137 09/01 10.137 10/01 10.137 11/01 10.137 12/01 10.137 01/02 10.137 02/02 10.137 03/02 10.137 04/02 10.137 05/02 10.137 06/02 10.137 and so on... 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. - -------------------------------------------------------------------------------- - FAMT 83 FIXED - Cut Off Date of Tape is 09/01/98 - Fixed Rate Collateral - $50,144,557.74 - Mortgage Summary Report - -------------------------------------------------------------------------------- Number of Mortgage Loans: 566 Lien Status: 1st and 2nd Lien Loans Aggregate Unpaid Principal Balance: $50,144,557.74 Aggregate Original Principal Balance: $50,404,339.00 Weighted Average Gross Coupon: 9.361% Gross Coupon Range: 7.400% - 14.850% - -------------------------------------------------------------------------------- Average Unpaid Principal Balance: $88,594.62 Average Original Principal Balance: $89,053.60 Maximum Unpaid Principal Balance: $317,748.00 Minimum Unpaid Principal Balance: $16,989.00 Maximum Original Principal Balance: $317,748.00 Minimum Original Principal Balance: $16,989.00 Weighted Avg. Stated Rem. Term (LPD to Mat Date): 334.292 Stated Rem Term Range: 97.000 - 360.000 Weighted Average Age (First Pay thru Last Pay): 4.937 Age Range: 0.000 - 83.000 Weighted Average Original Term (to amortization): 339.229 Original Term Range: 120.000 - 360.000 Weighted Average Original LTV: 60.710 Original LTV Range: 9.534% - 84.992% Weighted Average Combined LTV: 60.916 Combined LTV Range: 9.534% - 84.992% - -------------------------------------------------------------------------------- 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 7.00% < Gross Coupon <= 7.50% 5 512,014.65 1.02 7.75% < Gross Coupon <= 8.00% 18 1,843,120.14 3.68 8.00% < Gross Coupon <= 8.25% 10 1,055,968.89 2.11 8.25% < Gross Coupon <= 8.50% 60 5,119,690.24 10.21 8.50% < Gross Coupon <= 8.75% 21 2,588,583.54 5.16 8.75% < Gross Coupon <= 9.00% 129 11,633,397.39 23.20 9.00% < Gross Coupon <= 9.25% 28 2,849,688.55 5.68 9.25% < Gross Coupon <= 9.50% 99 8,626,063.41 17.20 9.50% < Gross Coupon <= 9.75% 25 2,681,999.50 5.35 9.75% < Gross Coupon <= 10.00% 83 6,764,475.79 13.49 10.00% < Gross Coupon <= 10.25% 11 1,044,374.62 2.08 10.25% < Gross Coupon <= 10.50% 22 1,438,832.20 2.87 10.50% < Gross Coupon <= 10.75% 9 1,004,925.22 2.00 10.75% < Gross Coupon <= 11.00% 20 1,694,782.90 3.38 11.00% < Gross Coupon <= 11.25% 1 71,990.00 0.14 11.25% < Gross Coupon <= 11.50% 5 367,019.63 0.73 11.50% < Gross Coupon <= 11.75% 2 43,761.05 0.09 11.75% < Gross Coupon <= 12.00% 7 405,686.50 0.81 12.00% < Gross Coupon <= 12.25% 1 45,675.84 0.09 12.25% < Gross Coupon <= 12.50% 1 48,091.00 0.10 12.50% < Gross Coupon <= 12.75% 1 22,437.70 0.04 12.75% < Gross Coupon <= 13.00% 3 125,722.00 0.25 13.00% < Gross Coupon <= 13.25% 1 26,933.00 0.05 13.25% < Gross Coupon <= 13.50% 2 71,749.94 0.14 13.50% < Gross Coupon <= 13.75% 1 25,692.04 0.05 14.75% < Gross Coupon <= 15.00% 1 31,882.00 0.06 - -------------------------------------------------------------------------------- Total.......... 566 $ 50,144,557.74 100.00% ================================================================================ REMAINING MONTHS TO STATED MATURITY Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Remaining Term Loans Balance Balance 96 < Rem Term <= 108 1 37,095.94 0.07% 108 < Rem Term <= 120 6 460,315.85 0.92% 144 < Rem Term <= 156 2 116,946.34 0.23% 156 < Rem Term <= 168 5 289,317.17 0.58% 168 < Rem Term <= 180 62 4,329,655.94 8.63% 228 < Rem Term <= 240 8 599,280.85 1.20% 276 < Rem Term <= 288 1 22,437.70 0.04% 300 < Rem Term <= 312 11 1,311,538.95 2.62% 312 < Rem Term <= 324 4 489,730.09 0.98% 324 < Rem Term <= 336 13 1,123,815.27 2.24% 336 < Rem Term <= 348 54 4,845,669.97 9.66% 348 < Rem Term <= 360 399 36,518,753.67 72.83% - -------------------------------------------------------------------------------- Total............ 566 $50,144,557.74 100.00% ================================================================================ 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 LOAN-TO-VALUE RATIOS Percentage of Aggregate Cut-Off Date Original Number of Unpaid Aggregate Loan-To-Value Mortgage Principal Principal Ratio Loans Balance Balance 5.00 < LTV <= 10.00 1 29,556.00 0.06 10.00 < LTV <= 15.00 6 194,611.53 0.39 15.00 < LTV <= 20.00 9 271,357.21 0.54 20.00 < LTV <= 25.00 19 823,024.84 1.64 25.00 < LTV <= 30.00 14 734,541.49 1.46 30.00 < LTV <= 35.00 34 1,782,109.49 3.55 35.00 < LTV <= 40.00 39 2,138,093.97 4.26 40.00 < LTV <= 45.00 26 1,661,474.04 3.31 45.00 < LTV <= 50.00 39 3,017,742.32 6.02 50.00 < LTV <= 55.00 49 4,046,752.90 8.07 55.00 < LTV <= 60.00 58 4,925,871.21 9.82 60.00 < LTV <= 65.00 66 7,205,818.84 14.37 65.00 < LTV <= 70.00 106 11,723,798.98 23.38 70.00 < LTV <= 75.00 53 5,966,477.72 11.90 75.00 < LTV <= 80.00 45 5,423,864.25 10.82 80.00 < LTV <= 85.00 2 199,462.95 0.40 - -------------------------------------------------------------------------- Total.................... 566 $ 50,144,557.74 100.00% ========================================================================== ORIGINAL 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 5.000 JUNIOR LIEN RATIOS Percentage of Aggregate Cut-Off Date JUNIOR Number of Unpaid Aggregate LIEN Mortgage Principal Principal Ratio Loans Balance Balance 10.000 < LIEN <= 20.000 3 96,962.00 0.19 20.000 < LIEN <= 30.000 1 34,654.00 0.07 30.000 < LIEN <= 40.000 2 64,028.94 0.13 70.000 < LIEN <= 80.000 2 74,398.00 0.15 90.000 < LIEN <=100.000 558 49,874,514.80 99.46 - -------------------------------------------------------------------------------- Total.................... 566 $ 50,144,557.74 100.00% ================================================================================ 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 Balance <= 25,000 13 289,053.10 0.58 25,000 < Balance <= 50,000 91 3,646,336.93 7.27 50,000 < Balance <= 75,000 144 9,103,057.55 18.15 75,000 < Balance <= 100,000 143 12,519,601.35 24.97 100,000 < Balance <= 150,000 132 15,783,686.88 31.48 150,000 < Balance <= 175,000 17 2,781,605.10 5.55 175,000 < Balance <= 200,000 11 2,089,120.89 4.17 200,000 < Balance <= 250,000 5 1,103,136.23 2.20 250,000 < Balance <= 300,000 7 1,903,149.70 3.80 300,000 < Balance <= 350,000 3 925,810.01 1.85 - -------------------------------------------------------------------------------- Total.................... 566 $ 50,144,557.74 100.00% ================================================================================ GEOGRAPHICAL DISTRIBUTION OF MORTGAGED PROPERTIES Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal State Loans Balance Balance Arizona 7 433,518.48 0.86 California 174 17,465,647.61 34.83 Colorado 19 1,524,362.56 3.04 Dist of Col 6 388,294.40 0.77 Florida 20 1,676,061.25 3.34 Georgia 8 637,152.22 1.27 Hawaii 1 150,952.56 0.30 Idaho 1 102,548.72 0.20 Illinois 43 3,719,361.62 7.42 Maryland 20 1,493,173.15 2.98 Massachsetts 29 2,245,836.98 4.48 Minnesota 1 109,581.00 0.22 New Jersey 65 4,943,961.07 9.86 New York 67 6,394,154.71 12.75 Ohio 18 1,347,329.75 2.69 Oregon 28 2,123,543.65 4.23 Pennsylvania 22 1,966,134.55 3.92 Utah 17 1,496,790.45 2.98 Virginia 7 703,404.99 1.40 Washington 13 1,222,748.02 2.44 - -------------------------------------------------------------------------------- Total............... 566 $ 50,144,557.74 100.00% ================================================================================ 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 511 45,470,256.88 90.68 PUD 2 113,334.77 0.23 Condominiums 15 1,159,049.29 2.31 2-4 Family 38 3,401,916.80 6.78 - -------------------------------------------------------------------------- Total............... 566 $ 50,144,557.74 100.00% ========================================================================== LOAN SUMMARY STRATIFIED BY OWNER OCCUPANCY Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Loans Balance Balance Owner Occ. 536 47,872,252.69 95.47 Investor 28 2,023,077.95 4.03 Second Home 2 249,227.10 0.50 - -------------------------------------------------------------------------- Total.................. 566 $ 50,144,557.74 100.00% ========================================================================== 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. - -------------------------------------------------------------------------------- - FAMT 83 ARM - Cut Off Date of Tape is 09/01/98 - Adjustable Rate Collateral - $25,160,592.40 - -------------------------------------------------------------------------------- Number of Mortgage Loans: 259 Lien Status: 1st Lien Loans Aggregate Unpaid Principal Balance: $25,160,592.40 Aggregate Original Principal Balance: $25,176,976.00 - -------------------------------------------------------------------------------- Weighted Average Coupon (Gross): 8.316% Gross Coupon Range: 6.330% - 12.490% Weighted Average Margin (Gross): 5.706% Gross Margin Range: 2.990% - 8.790% Weighted Average Life Cap (Gross): 15.310% Gross Life Cap Range: 13.330% - 19.490% Weighted Average Life Floor (Gross): 8.312% Gross Life Floor Range: 6.330% - 12.490% - -------------------------------------------------------------------------------- Average Unpaid Principal Balance: $97,145.14 Average Original Principal Balance: $97,208.40 Maximum Unpaid Principal Balance: $325,600.00 Minimum Unpaid Principal Balance: $20,378.00 Maximum Original Principal Balance: $325,600.00 Minimum Original Principal Balance: $20,378.00 Weighted Avg. Stated Rem. Term (PTD to Mat Date): 346.314 Stated Rem Term Range: 120.000 - 360.000 Weighted Average Age (First Pay thru Paid Thru): 0.441 Age Range: 0.000 - 13.000 Weighted Average Original Term(to amortization): 346.755 Original Term Range: 120.000 - 360.000 Weighted Average Original LTV: 63.025 Original LTV Range: 12.736% - 85.000% Weighted Average Periodic Interest Cap: 1.058% Periodic Interest Cap Range: 1.000% - 1.500% Weighted Average Months to Interest Roll: 5.739 Months to Interest Roll Range: 1 - 23 Weighted Average Interest Roll Frequency: 6.000 Interest Frequency Range: 6 - 6 - -------------------------------------------------------------------------------- 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 TYPE

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% 1 154,855.19 0.62 6.50% < Gross Coupon <= 7.00% 17 1,980,079.24 7.87 7.00% < Gross Coupon <= 7.50% 42 4,245,867.34 16.88 7.50% < Gross Coupon <= 7.75% 11 1,088,854.55 4.33 7.75% < Gross Coupon <= 8.00% 58 5,717,774.79 22.73 8.00% < Gross Coupon <= 8.25% 7 588,239.58 2.34 8.25% < Gross Coupon <= 8.50% 29 2,515,795.96 10.00 8.50% < Gross Coupon <= 8.75% 20 2,229,493.90 8.86 8.75% < Gross Coupon <= 9.00% 19 1,962,141.24 7.80 9.00% < Gross Coupon <= 9.25% 7 764,083.67 3.04 9.25% < Gross Coupon <= 9.50% 14 1,126,786.12 4.48 9.50% < Gross Coupon <= 9.75% 10 816,598.05 3.25 9.75% < Gross Coupon <= 10.00% 6 585,693.71 2.33 10.25% < Gross Coupon <= 10.50% 5 501,768.40 1.99 10.50% < Gross Coupon <= 10.75% 7 541,566.05 2.15 10.75% < Gross Coupon <= 11.00% 3 214,016.58 0.85 11.00% < Gross Coupon <= 11.25% 1 20,378.00 0.08 11.25% < Gross Coupon <= 11.50% 1 48,612.43 0.19 12.25% < Gross Coupon <= 12.50% 1 57,987.60 0.23 - -------------------------------------------------------------------------------- Total.......... 259 $ 25,160,592.40 100.00% ================================================================================ REMAINING MONTHS TO STATED MATURITY Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Remaining Term Loans Balance Balance 108 < Rem Term <= 120 1 46,787.00 0.19% 168 < Rem Term <= 180 21 1,732,646.41 6.89% 228 < Rem Term <= 240 1 84,463.64 0.34% 336 < Rem Term <= 348 1 60,673.25 0.24% 348 < Rem Term <= 360 235 23,236,022.10 92.35% - ------------------------------------------------------------------- Total............ 259 $25,160,592.40 100.00% =================================================================== 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 LOAN-TO-VALUE RATIOS Percentage of Aggregate Cut-Off Date Original Number of Unpaid Aggregate Loan-To-Value Mortgage Principal Principal Ratio Loans Balance Balance 10.00 < LTV <= 15.00 1 20,378.00 0.08 20.00 < LTV <= 25.00 6 231,590.53 0.92 25.00 < LTV <= 30.00 7 352,941.25 1.40 30.00 < LTV <= 35.00 10 654,419.71 2.60 35.00 < LTV <= 40.00 9 591,922.15 2.35 40.00 < LTV <= 45.00 13 864,563.16 3.44 45.00 < LTV <= 50.00 19 1,753,037.48 6.97 50.00 < LTV <= 55.00 25 2,036,349.60 8.09 55.00 < LTV <= 60.00 34 3,231,201.96 12.84 60.00 < LTV <= 65.00 30 3,075,600.24 12.22 65.00 < LTV <= 70.00 32 3,449,248.85 13.71 70.00 < LTV <= 75.00 43 5,230,626.73 20.79 75.00 < LTV <= 80.00 24 2,892,741.60 11.50 80.00 < LTV <= 85.00 6 775,971.14 3.08 - -------------------------------------------------------------------------- Total.................... 259 $ 25,160,592.40 100.00% ========================================================================== 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 Balance <= 25,000 1 20,378.00 0.08 25,000 < Balance <= 50,000 27 1,136,625.76 4.52 50,000 < Balance <= 75,000 74 4,688,486.34 18.63 75,000 < Balance <= 100,000 62 5,424,336.27 21.56 100,000 < Balance <= 150,000 57 6,950,472.87 27.62 150,000 < Balance <= 175,000 20 3,192,643.81 12.69 175,000 < Balance <= 200,000 12 2,227,043.21 8.85 200,000 < Balance <= 250,000 4 902,098.14 3.59 250,000 < Balance <= 300,000 1 292,908.00 1.16 300,000 < Balance <= 350,000 1 325,600.00 1.29 - -------------------------------------------------------------------------- Total.................... 259 $ 25,160,592.40 100.00% ========================================================================== 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 Arizona 6 514,847.05 2.05 California 50 6,416,470.42 25.50 Colorado 14 1,138,970.18 4.53 Dist of Col 2 216,832.00 0.86 Florida 4 282,786.79 1.12 Georgia 2 241,640.00 0.96 Illinois 37 2,919,189.61 11.60 Maryland 7 660,403.14 2.62 Massachsetts 6 549,105.60 2.18 Minnesota 8 639,363.92 2.54 New Jersey 17 1,884,597.07 7.49 New York 24 2,145,790.76 8.53 Ohio 14 1,108,197.85 4.40 Oregon 15 1,426,445.48 5.67 Pennsylvania 8 652,752.17 2.59 Utah 21 1,790,469.42 7.12 Virginia 2 91,349.00 0.36 Washington 22 2,481,381.94 9.86 - -------------------------------------------------------------------------- Total............... 259 $ 25,160,592.40 100.00% ========================================================================== DISTRIBUTION OF MARGINS Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Gross Mortgage Principal Principal Margin Loans Balance Balance 2.500 < Margin <= 3.000 1 100,713.69 0.40 3.500 < Margin <= 4.000 4 654,912.65 2.60 4.000 < Margin <= 4.500 8 769,081.68 3.06 4.500 < Margin <= 5.000 34 3,029,334.38 12.04 5.000 < Margin <= 5.500 88 8,707,268.59 34.61 5.500 < Margin <= 6.000 58 5,603,353.47 22.27 6.000 < Margin <= 6.500 34 3,188,001.65 12.67 6.500 < Margin <= 7.000 19 1,873,037.68 7.44 7.000 < Margin <= 7.500 9 781,579.43 3.11 7.500 < Margin <= 8.000 2 227,537.18 0.90 8.000 < Margin <= 8.500 1 137,382.00 0.55 8.500 < Margin <= 9.000 1 88,390.00 0.35 - -------------------------------------------------------------------------------- Total................. 259 $ 25,160,592.40 100.00% ================================================================================ LOAN SUMMARY STRATIFIED BY PERIODIC CAP Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Periodic Mortgage Principal Principal Cap Loans Balance Balance 1.000 235 22,237,662.10 88.38 1.500 24 2,922,930.30 11.62 - -------------------------------------------------------------------------------- Total................. 259 $ 25,160,592.40 100.00% ================================================================================ 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 LIFE CAP Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Gross Mortgage Principal Principal Life Cap Loans Balance Balance 13.000 < LIFE CAP <= 13.500 1 154,855.19 0.62 13.500 < LIFE CAP <= 14.000 17 1,980,079.24 7.87 14.000 < LIFE CAP <= 14.500 42 4,245,867.34 16.88 14.500 < LIFE CAP <= 15.000 69 6,806,629.34 27.05 15.000 < LIFE CAP <= 15.500 36 3,104,035.54 12.34 15.500 < LIFE CAP <= 16.000 39 4,191,635.14 16.66 16.000 < LIFE CAP <= 16.500 22 1,939,482.22 7.71 16.500 < LIFE CAP <= 17.000 17 1,462,965.01 5.81 17.000 < LIFE CAP <= 17.500 5 501,768.40 1.99 17.500 < LIFE CAP <= 18.000 9 694,909.38 2.76 18.000 < LIFE CAP <= 18.500 1 20,378.00 0.08 19.000 < LIFE CAP <= 19.500 1 57,987.60 0.23 - -------------------------------------------------------------------------- Total................. 259 $ 25,160,592.40 100.00% ========================================================================== LOAN SUMMARY STRATIFIED BY LIFE FLOOR Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Gross Mortgage Principal Principal Life Floor Loans Balance Balance 6.000 < Life Floor <= 6.500 1 154,855.19 0.62 6.500 < Life Floor <= 7.000 17 1,980,079.24 7.87 7.000 < Life Floor <= 7.500 42 4,245,867.34 16.88 7.500 < Life Floor <= 8.000 69 6,806,629.34 27.05 8.000 < Life Floor <= 8.500 36 3,104,035.54 12.34 8.500 < Life Floor <= 9.000 39 4,191,635.14 16.66 9.000 < Life Floor <= 9.500 22 1,939,482.22 7.71 9.500 < Life Floor <= 10.000 16 1,402,291.76 5.57 10.000 < Life Floor <= 10.500 5 501,768.40 1.99 10.500 < Life Floor <= 11.000 10 755,582.63 3.00 11.000 < Life Floor <= 11.500 1 20,378.00 0.08 12.000 < Life Floor <= 12.500 1 57,987.60 0.23 - -------------------------------------------------------------------------- Total................. 259 $ 25,160,592.40 100.00% ========================================================================== MORTGAGED PROPERTIES Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Loans Balance Balance Single-family 240 23,319,290.28 92.68 PUD 1 106,655.90 0.42 Condominiums 5 607,896.20 2.42 2-4 Family 13 1,126,750.02 4.48 - -------------------------------------------------------------------------- Total............... 259 $ 25,160,592.40 100.00% ========================================================================== 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 OWNER OCCUPANCY Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Loans Balance Balance Owner Occ. 253 24,670,145.61 98.05 Investor 6 490,446.79 1.95 - -------------------------------------------------------------------------------- Total.................. 259 $ 25,160,592.40 100.00% ================================================================================ LOAN SUMMARY STRATIFIED BY LOAN TYPE Percentage of Aggregate Cut-Off Date Number of Unpaid Aggregate Mortgage Principal Principal Loan Type Loans Balance Balance 2/28LIBOR ARMs 2 202,762.33 0.81 Six Month LIBOR 257 24,957,830.07 99.19 - -------------------------------------------------------------------------------- Total.................. 259 $ 25,160,592.40 100.00% ================================================================================ 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 MORTGAGE LOAN TRUST 1998-3 Exhibit 99.2 First Alliance Mortgage Loan Trust 1998-3 Mortgage Loan Asset Backed Certificates, Series 1998-3 [$100,000,000] Class A Certificates -------------------------------------------------------------------------- [$30,000,000] Class A-1 Fixed Rate Group Certificates - [TBD]% (non-SMMEA-eligible) [$22,000,000] Class A-2 Fixed Rate Group Certificates - [TBD]% (non-SMMEA-eligible) [$18,000,000] Class A-3 Fixed Rate Group Certificates - [TBD]% (non-SMMEA-eligible) [$30,000,000] Class A-4 Floating Rate Group Certificates - 1M LIBOR + [TBD] bps. (non-SMMEA-eligible) The attached Marketing Memorandum (the "Marketing Memorandum") is privileged and confidential and is intended for use by the addressee only. This Marketing Memorandum is furnished to you solely by First Union Capital Markets (the "Underwriter") and not by the issuer of the securities identified above (the "Offered Securities") or any other party. The Marketing Memorandum is based upon information made available to the Underwriter. Neither the Underwriter, the issuer of the Offered Securities, nor any other party makes any representation to the accuracy or completeness of the information therein. The information herein is preliminary, and will be superseded by the applicable prospectus supplement and by any other information subsequently filed with the Securities and Exchange Commission. The information herein may not be provided to any third party other than the addressee's legal, tax, financial and/or accounting advisors for the purpose of evaluating such information. No assurance can be given as to the accuracy, appropriateness or completeness of the Marketing Memorandum in any particular context; or as to whether the Marketing Memorandum reflects future performance. This Marketing Memorandum should not be construed as either a prediction or as legal, tax, and financial or accounting advice. Any yields or weighted average lives shown in the Marketing Memorandum are based on prepayment and other assumptions and actual experience may dramatically affect such yields or weighted average lives. The principal amount and designation of any security described in the term sheet are subject to change prior to issuance. Although a registration statement (including the prospectus) relating to the Offered Securities has been filed with the Securities and Exchange Commission and is effective, the final prospectus supplement relating to the Offered Securities has not been filed with the Securities and Exchange Commission. This communication shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the Offered Securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Prospective purchasers are referred to the final prospectus and prospectus supplement relating to the Offered Securities for definitive terms of the Offered Securities and the collateral. Please be advised that Offered Securities may not be appropriate for all investors. Potential investors must be willing to assume, among other things, market price volatility, prepayments, yield curve and interest rate risks. Investors should fully consider the risk of an investment in these Offered Securities. If you have received this communication in error, please notify the sending party immediately by telephone and return the original to such party by mail. First Union Capital Markets - -------------------------------------------------------------------------------- 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. INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND PROVIDED FOR INFORMATION ONLY, DOES NOT PURPORT TO BE COMPLETE AND SHOULD NOT BE RELIED UPON IN CONNECTION WITH ANY DECISION TO PURCHASE 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 THE UNDERLYING ASSETS, THE INFORMATION CONTAINED IN THE FINAL PROSPECTUS AND ACCOMPANYING PROSPECTUS SUPPLEMENT. OFFERS TO SELL AND SOLICITATIONS OF OFFERS TO BUY THE SECURITIES ARE MADE ONLY BY THE FINAL PROSPECTUS SUPPLEMENT AND THE RELATED PROSPECTUS. -----END PRIVACY-ENHANCED MESSAGE-----