Exhibit 99.1
HOUSEHOLD [LOGO OMITTED]
_______________________________________________________________________________
RMBS New Issue Term Sheet
$877,689,000 (approximate)
Household Home Equity Loan Trust 2004-1
Issuer
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
HFC Revolving Corporation
Depositor
Household Finance Corporation
Master Servicer
July 13, 2004
Deutsche Bank, HSBC, and Xxxxxx Xxxxxxx
Lead Managers
Barclays and Citigroup
Co-Managers
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
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Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
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Disclaimer
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The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. Any such
offer to buy or sell any security or instrument or to engage in a transaction
would be made only after a prospective participant had completed its own
independent investigation of the transaction and received all information it
required to make its own investment decision, including, where applicable, a
review of any offering circular, memorandum or prospectus describing such
security or instrument which would contain material information not contained
herein and to which prospective participants are referred. In the event of any
such offering, this information shall be deemed superseded and replaced in its
entirety by such offering circular, memorandum or prospectus. By accepting
this information, the recipient agrees that it will not distribute or provide
such information to any other person. No representation or warranty can be
given with respect to the accuracy or completeness of the information herein,
or that any future offer of securities or transactions would conform to the
terms hereof. Xxxxxx Xxxxxxx and its affiliates disclaim any and all liability
relating to this information.
The following information may contain general, summary discussions of certain
tax, regulatory, accounting and/or legal issues relevant to the proposed
transaction. Any such discussion is necessarily generic and may not be
applicable to or complete for any particular recipient's specific facts and
circumstances. Xxxxxx Xxxxxxx is not offering and does not purport to offer
tax, regulatory, accounting or legal advice and this information should not
and cannot be relied upon as such. Prior to entering into any proposed
transaction, recipients should determine, in consultation with their own
legal, tax, regulatory and accounting advisors, the economic risks and merits,
as well as the legal, tax, regulatory and accounting characteristics and
consequences, of the transaction.
The projections or other estimates in these materials (if any), including
estimates of returns or performance, are forward-looking statements based upon
certain assumptions and are preliminary in nature. Actual results are
difficult to predict and may depend upon events outside the issuer's or
counterparty's control. Actual events may differ from those assumed and
changes to any assumptions may have a material impact on any projections or
estimates. Other events which were not taken into account may occur and may
significantly affect the analysis. Certain assumptions may have been made for
modeling purposes only to simplify the presentation and/or calculation of any
projections or estimates, and Xxxxxx Xxxxxxx does not purport that any such
assumptions will reflect actual future events. Accordingly, there can be no
assurance that estimated returns or projections will be realized or that
actual returns or performance results will not be materially different than
those estimated herein. Any such estimated returns and projections should be
viewed as hypothetical. Recipients should conduct their own analysis, using
such assumptions as they deem appropriate, and should fully consider other
available information in making a decision regarding these transactions. Past
performance is not necessarily indicative of future results. Price and
availability are subject to change without notice.
Notwithstanding any other express or implied agreement, arrangement, or
understanding to the contrary, Xxxxxx Xxxxxxx and each recipient hereof are
deemed to agree that both Xxxxxx Xxxxxxx and such recipient (and their
respective employees, representatives, and other agents) may disclose to any
and all persons, without limitation of any kind from the commencement of
discussions, the U.S. federal income tax treatment of the transaction ("tax
treatment") and any fact that may be relevant to understanding the tax
treatment of the transaction described herein ("tax structure") and all
materials of any kind (including opinions or other tax analyses) that are
provided to such person relating to such tax treatment and tax structure,
except where confidentiality is reasonably necessary to comply with securities
laws (including, where applicable, confidentiality regarding the identity of
an issuer of securities or its affiliates, agents and advisors).
The offer or sale of securities or transactions may be restricted by law.
Additionally, transfers of any such securities or instruments may be limited
by law or the terms thereof. Unless noted herein, neither Xxxxxx Xxxxxxx or
any issuer of securities has taken or will take any action in any jurisdiction
that would permit a public offering of Notes, or possession or distribution of
any offering material in relation thereto, in any country or jurisdiction
where action for such purpose is required. Recipients are required to inform
themselves of and comply with any legal or contractual restrictions on their
purchase, holding, sale, exercise of rights or performance of obligations
under any transaction. Xxxxxx Xxxxxxx does not undertake or have any
responsibility to notify you of any changes to the attached information.
Xxxxxx Xxxxxxx & Co. Incorporated, its affiliates and others associated with
it may have positions in, and may effect transactions in, securities and
instruments of issuers mentioned herein and may also perform or seek to
perform investment banking services for the issuers of such securities and
instruments. Additional information is available upon request.
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The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
2
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Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
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Forward Looking Statements
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Some of the statements contained herein consist of forward-looking statements,
within the meaning of Section 27A of the Securities Act, relating to future
economic performance or projections and other financial items. These
statements can be identified by the use of forward-looking words such as
"may," "will," "should," "expects," "believes," "anticipates," "estimates," or
other comparable words. Forward-looking statements are subject to a variety of
risks and uncertainties that could cause actual results to differ from the
projected results. Those risks and uncertainties include, among others,
general economic and business conditions, regulatory initiatives and
compliance with governmental regulations, customer preferences and various
other matters, many of which are beyond our control. Because we cannot predict
the future, what actually happens may be very different from what we predict
in our forward-looking statements.
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The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
3
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Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
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Household Home Equity Loan Trust Asset-Backed Notes, Series 2004-1
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Notes
Expected
Principal
Expected Expected Window Modified
Approximate Interest Principal WAL (yrs) (mos) Duration
Notes Size (1) Type Type Call/Mat Call/Mat Call/Mat Expected Ratings
(1)(2)(3)(4)
---------------- ----------------- --------- ----------- ------------ ------------ ------------ ----------- ---------- --------
Xxxxx'x S&P Fitch
---------------- ----------------- --------- ----------- ------------ ------------ ------------ ----------- ---------- --------
A 702,644,000 Floating Senior 2.25/2.43 65/97 2.16/2.32 Aaa AAA AAA
---------------- ----------------- --------- ----------- ------------ ------------ ------------ ----------- ---------- --------
M 175,045,000 Floating Mezz 2.25/2.43 65/97 2.15/2.31 Aa2 AA AA
---------------- ----------------- --------- ----------- ------------ ------------ ------------ ----------- ---------- --------
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Notes:
(1) The Approximate Size is subject to a permitted variance in the aggregate
of plus or minus 5%.
(2) The Notes are priced to a 15% optional clean-up call (as a percentage of
the aggregate initial principal amount of the Notes). If the Optional
Termination is not exercised, an auction process will begin in the third
following month. Starting with the month after the first failed auction,
all payments that would normally go to the ownership interest in the
Trust will be used to pay down the Notes.
(3) It is expected that the Notes will be subject to an Available Funds Cap.
(4) Based on the prepayment Pricing Speed as described below.
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Pricing Speed:
100% PPC:
100% PPC assumes on a seasoning adjusted basis that prepayments start at 0%
CPR in month one, increase by approximately 1.3158% each month to 25% CPR in
month twenty, and remain at 25% CPR thereafter.
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The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
4
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Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
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CONTACTS
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Xxxxxx Xxxxxxx
SPG Capital Markets
Xxx Xxxxxx Tel: 000-000-0000
Vice President Fax: 000-000-0000
xxx.xxxxxx@xxxxxxxxxxxxx.xxx
Xxxx Xxxxx Tel: 000-000-0000
Vice President Fax: 000-000-0000
xxxxxxx.xxxxx@xxxxxxxxxxxxx.xxx
Rating Agencies
Xxxxxx Xxxxxxxx- Xxxxx'x (000) 000-0000
Xxx Xxxxxxxx - Xxxxx (000) 000-0000
Xxxxx Xxxxx - S&P (000) 000-0000
Xxxxx Xxx - S&P (000) 000-0000
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The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
5
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Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
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SUMMARY OF TERMS
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Issuer: Household Home Equity Loan Trust 2004-1 (the "Trust")
Sellers: Wholly owned subsidiaries of Household Finance Corporation, including subsidiaries of
Beneficial Corporation
Offered Notes: Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1 (the "Notes")
Depositor: HFC Revolving Corporation
Master Servicer: Household Finance Corporation
Indenture Trustee: U.S. Bank National Association
Paying Agent: HSBC Bank USA, N.A.
Owner Trustee: The Bank of New York
Co-Lead Managers: Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., and Xxxxxx Xxxxxxx & Co.
Incorporated
(HSBC Securities (USA) Inc. is an affiliate of Household Finance Corporation, the Sellers
and HFC Revolving Corporation)
Co-Managers: Barclays Capital Inc.
Citigroup Global Markets Inc.
Expected Pricing Date: On or about July 15, 2004
Expected Closing Date: On or about July 22, 2004
Tax Status: Subject to the considerations in the Prospectus, the Notes will be debt for federal income
tax purposes.
ERISA Eligibility: The Notes are expected to be ERISA eligible.
SMMEA Eligibility: The Notes will NOT constitute "mortgage related securities"
for purposes of SMMEA.
Servicing Fee: 0.50% per annum of the outstanding principal balance of each home equity loan as of the
first day of the related Collection Period.
Statistical Cut-Off Date: The close of business on July 1, 2004
Cut-Off Date: The close of business on July 11, 2004
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The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
6
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Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
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SUMMARY OF TERMS (Continued)
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Home Equity Loans: There will be 9,819 closed-end, fixed or declining rate, fully amortizing home equity loans
with an aggregate principal balance of approximately $1,036,067,394 as of the Statistical
Cut-Off Date. As of the Cut-Off Date, there were 9,416 loans in the pool with an aggregate
principal balance of approximately $986,167,789. The home equity loans are secured by first
or second liens on one-to-four family residential properties. All of the home equity loans
are simple interest home equity loans, which require that each monthly payment consist of an
installment of interest which is calculated according to the simple interest method on the
basis of the outstanding principal balance of that home equity loan multiplied by the
applicable monthly interest rate for the number of days in the period elapsed since the
preceding payment of interest was made.
For collateral statistics please see the "Description of the Statistical Cut-off Date
Collateral" below.
Payment Dates: The 20th of each month, or if such day is not a business day, the next succeeding business
day, beginning in August 2004.
Accrued Interest: The price to be paid by investors for the Notes will not include accrued interest (i.e.
settle flat, 0 delay days).
Collection Period: The calendar month preceding the month in which such Payment Date occurs, except that with
respect to the initial Payment Date, the Collection Period is the period from the Cut-Off
Date and ending on July 31, 2004.
Interest Accrual Period: The interest accrual period for the Notes with respect to any Payment Date will be the period
beginning with the previous Payment Date (or, in the case of the first Payment Date, the
Closing Date) and ending on the day prior to such Payment Date (on an actual/360 day count
basis).
Payment Delay: 0 days
Form of Notes: Book entry form, same day funds (through DTC, and if applicable, Euroclear and Clearstream)
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The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
7
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Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
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SUMMARY OF TERMS (Continued)
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Substitution Ability: The Master Servicer will have the right to substitute up to 2% of the aggregate pool balance
of the home equity loans as of the Cut-Off Date, subject to required eligibility criteria.
Optional On the Payment Date immediately following the first Payment Date on which the aggregate
Termination/Maturity principal balance of the Notes is less than 15% of the aggregate principal balance of the
Date: Notes on the Closing Date, the Master Servicer will have the option to purchase the remaining
home equity loans from the trust. To the extent that the Master Servicer does not exercise
its optional termination right within three months of the Payment Date on which the purchase
option could first be exercised, on the following Payment Date the Indenture Trustee will
begin an auction process to sell the remaining home equity loans in the trust. In addition,
if the principal and interest due on the Notes is not paid in full by the Payment Date in
July 2014, the Indenture Trustee immediately will begin an auction process for the sale of
the remaining home equity loans. On each Payment Date subsequent to the earlier of (i) the
date on which the first auction conducted in connection with the 15% optional termination
outlined above is not successful and (ii) the July 2014 Payment Date, all payments that would
normally be distributed to the ownership interest in the trust will be used to pay down the
Notes. Generally, at the time the home equity loans are sold, the outstanding principal
balance of the Class A and Class M Notes will be paid in full with accrued interest and any
Class A and Class M Supplemental Interest Amount. However, in certain limited circumstances
(with consent of 66 2/3% of the outstanding principal balance of all of the Notes in the
aggregate), the home equity loans remaining in the trust after the Payment Date in July 2014
may be sold for less than the full outstanding principal balance of, and accrued interest and
any Supplemental Interest Amount on, the Class A and Class M Notes.
Monthly Master The Master Servicer will not make advances relating to delinquent payments of principal and
Servicer Advances: interest with respect to any home equity loan included in the home equity pool.
Prospectus: The Notes are being offered pursuant to a prospectus supplemented by a prospectus supplement
(together, the "Prospectus"). Complete information with respect to the Notes and the
collateral securing them is contained in the Prospectus. The information herein is qualified
in its entirety by the information appearing in the Prospectus. To the extent that the
information herein is inconsistent with the Prospectus, the Prospectus shall govern in all
respects. Sales of the Notes may not be consummated unless the purchaser has received the
Prospectus.
PLEASE SEE "RISK FACTORS" IN THE PROSPECTUS FOR A DESCRIPTION OF INFORMATION THAT SHOULD BE
CONSIDERED IN CONNECTION WITH AN INVESTMENT IN THE NOTES. ALSO, PLEASE CAREFULLY CONSIDER
"RECENT DEVELOPMENTS" IN THE PROSPECTUS IN CONNECTION WITH AN INVESTMENT IN THE NOTES.
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The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
8
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Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
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CREDIT ENHANCEMENT
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Credit Enhancement: 1) Excess Interest: Because more interest is expected to be paid by the borrowers than is
necessary to pay interest on the Notes and other expenses of the Trust each month, there
is expected to be excess interest which may be used to make additional payments of
principal on the Notes.
2) Overcollateralization: The excess of the principal balance of the home equity loans over
the outstanding principal balance of the Class A and Class M Notes represents
overcollateralization which will be applied to absorb some losses on the home equity
loans to the extent not covered by Excess Interest. The overcollateralization will be
represented by the equity certificate of the trust, which will initially be held by the
Depositor. The Excess Interest described above will be distributed to the Class A and
Class M Notes as principal if the Overcollateralization Amount is below the required
level. This will reduce the principal balance of the Class A and Class M Notes faster
than the principal balance of the home equity loans until the Targeted
Overcollateralization Amount is reached.
3) Subordination: If the funds available to pay scheduled interest on the Notes are
insufficient to fully pay all interest then due, payments of interest on the Class A
Notes will be paid before payments of interest on the Class M Notes. Similarly, if the
funds available to pay scheduled payments of principal on the Notes are insufficient to
fully pay all principal then due, payments of principal on the Class A Notes will be paid
before payments of principal on the Class M Notes.
Stepdown Date: The later to occur of (x) the Payment Date in August 2007 and (y) the first Payment Date on
which the aggregate pool balance of the home equity loans has been reduced to 50.00% of the
aggregate pool balance of the home equity loans as of the Cut-Off Date.
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The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
9
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Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
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CREDIT ENHANCEMENT (Continued)
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Initial On the Closing Date, the Overcollateralization Amount will be equal to approximately 11.00%
Overcollateralization of the aggregate principal balance of the home equity loans as of the Cut-Off Date.
Amount:
Targeted With respect to any Payment Date (x) prior to the Stepdown Date, an amount equal to 17.00% of
Overcollateralization the aggregate principal balance of the home equity loans as of the Cut-Off Date, and (y) on
Amount: and after the Stepdown Date and on which a Trigger Event is not in effect, the greater of (i)
34.00% of the aggregate principal balance of the home equity loans as of the last day of the
related Collection Period and (ii) 1.00% of the aggregate principal balance of the home
equity loans as of the Cut-Off Date. If a Trigger Event is in effect on any Payment Date on
or after the Stepdown Date, the Targeted Overcollateralization Amount for such Payment Date
shall be equal to the Targeted Overcollateralization Amount for the immediately preceding
Payment Date.
In the event that the Targeted Overcollateralization Amount is permitted to decrease, or
"step down" on a Payment Date in the future, a portion of the principal collections to be
distributed on that Payment Date will be paid to the holder of the ownership interest in the
Trust. This has the effect of decelerating the amortization of the Notes relative to the
amortization of the home equity loans, and of reducing the Overcollateralization Amount.
Interim With respect to any Payment Date, the excess, if any, of the aggregate principal balance of
Overcollateralization the home equity loans as of the last day of the related Collection Period over (i) the
Amount: aggregate principal balance of the Notes on such Payment Date (before taking into account any
payments of principal on that Payment Date) less (ii) the sum of (a) the principal
collections received during such Collection Period (b) the Additional Principal Reduction
Amount for such Payment Date and (c) the Principal Carry Forward Amount for each class of
Notes for such Payment Date.
Interim With respect to any Payment Date, the excess, if any, of the Targeted Overcollateralization
Overcollateralization Amount over the Interim Overcollateralization Amount.
Deficiency:
Overcollateralization With respect to any Payment Date, the excess, if any, of (x) the aggregate principal balance
Amount: of the home equity loans as of the last day of the related Collection Period over (y) the
principal amount of the Class A and Class M Notes (after taking into account any payments of
principal on such Payment Date).
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The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
10
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Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
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CREDIT ENHANCEMENT (Continued)
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Overcollateralization With respect to any Payment Date, the amount (but not in excess of the principal collections
Release received during the related Collection Period) equal to the excess, if any, of (i) the
Amount: Interim Overcollateralization Amount for such Payment Date over (ii) the Targeted
Overcollateralization Amount for such Payment Date.
Trigger Event: Will be in effect on any Payment Date on or after the Stepdown Date on which either (i) the
three month rolling average of the Two Payment Plus Delinquency Percentage for such Payment
Date equals or exceeds 10.00%, or (ii) the Cumulative Loss Percentage for such Payment Date
exceeds the percentage for such Payment Date as described below.
Two Payment Plus With respect to any Collection Period, a fraction, expressed as a percentage, the numerator
Delinquency of which is equal to the aggregate of the principal balances of all home equity loans that
Percentage: are two or more payments contractually delinquent, in bankruptcy or in foreclosure or REO
home equity loans, and the denominator of which is the aggregate principal balance of the
home equity loans as of the end of such Collection Period.
Cumulative Loss With respect to any Payment Date on or after the Stepdown Date, a Trigger Event will be in
Percentage: effect if the Cumulative Loss Percentage exceeds the values defined below:
Payment Dates Cumulative Loss Percentage
------------- --------------------------
August 2007 - July 2008 10.50%
August 2008 - July 2009 15.00%
August 2009 and thereafter 19.00%
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The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
11
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Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
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PASS THROUGH RATES
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Note Rate: Each class of Notes will accrue interest during each Interest Accrual Period at a variable
rate per annum equal to the lesser of (i) the Formula Rate for such class and Interest
Accrual Period and (ii) the Available Funds Cap for the related Payment Date.
Formula Rate: With respect to each class of Notes and any Interest Accrual Period, a per annum rate equal
to the sum of (a) One-Month LIBOR for such Interest Accrual Period and (b) the applicable
note margin for such class and Interest Accrual Period.
Available Funds Cap: With respect to any Payment Date a per annum rate equal to the product of (x) the weighted
average of the net loan rates of each home equity loan, in each case outstanding as of the
first day of the related Collection Period, and (y) a fraction the numerator of which is 30
and the denominator of which is the number of days in the related Interest Accrual Period.
Current Interest: With respect to any Payment Date and each class of Notes, an amount equal to interest accrued
during the related Interest Accrual Period on the principal amount of such class of Notes
immediately prior to the Payment Date at the applicable Note Rate.
Supplemental Interest With respect to any Payment Date and each class of Notes, the sum of (i) the excess, if any,
Amount: of interest accrued on such class of Notes during the related Interest Accrual Period at the
applicable Formula Rate over interest due on such class of Notes at the applicable Note Rate;
(ii) any Supplemental Interest Amount for such class remaining unpaid from prior Payment
Dates; and (iii) interest on the amount in clause (ii) at the applicable Formula Rate.
Interest Carry Forward As to each class of Notes and any Payment Date, the sum of (x) the amount, if any, by which
Amount: (i) the sum of the Current Interest and the Interest Carry Forward Amount for such class of
Notes as of the immediately preceding Payment Date exceeded (ii) the amount of the actual
payments in respect of such amounts made to such class of Notes on such preceding Payment
Date plus (y) interest on such amount calculated for the related Interest Accrual Period at
the related Note Rate.
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The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
12
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Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
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ADDITIONAL DEFINITIONS
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Available Payment The sum of (a) principal and net interest collections received on the home equity loans
Amount: during the related Collection Period only and (b) any amounts required to be paid in
connection with the termination of the Trust.
Principal Payment As to any Payment Date, (a) the principal collections received on the home equity loans
Amount: during the related Collection Period for such Payment Date minus (b) for Payment Dates
occurring on and after the Stepdown Date and for which a Trigger Event is not in effect, the
Overcollateralization Release Amount, if any.
Additional Principal As to any Payment Date, the aggregate outstanding principal balance of the home equity loans
Reduction Amount: as of the first day of the related Collection Period less the sum of (x) the aggregate
principal balance of the home equity loans as of the last day of the related Collection
Period and (y) the principal collections received on the home equity loans during the related
Collection Period.
Principal Carry As to each class of Notes and any Payment Date, the amount, if any, by which (i) the
Forward Amount: Principal Carry Forward Amount, Principal Payment Amount and Additional Principal Reduction
Amount payable to such class of Notes, as of the preceding Payment Date, exceeded (ii) the
amount of principal actually paid to the holders of such class in respect of such amounts on
such prior Payment Date.
Extra Principal The lesser of (i) the Monthly Excess Cashflow and (ii) the Interim Overcollateralization
Payment Deficiency.
Amount:
Monthly Excess Cashflow: With respect to any Payment Date, the excess, if any, of (i) net interest collections
received during the related Collection Period over (ii) the sum of (x) the Current Interest
plus the Interest Carry Forward Amount for each class of Notes for such Payment Date, (y) the
Additional Principal Reduction Amount for such Payment Date and (z) the Principal Carry
Forward Amount for each class of Notes for such Payment Date.
-------------------------------------------------------------------------------
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
13
-------------------------------------------------------------------------------
Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
PRINCIPAL AND INTEREST DISTRIBUTIONS
-------------------------------------------------------------------------------
On each Payment Date, the Paying Agent shall pay amounts on deposit in the
collection account, to the extent of the Available Payment Amount, in the
following amounts and order of priority:
(i) To the holders of the Class A Notes, the Current Interest and any
Interest Carry Forward Amount for such class and Payment Date;
(ii) To the holders of the Class M Notes, the Current Interest and any
Interest Carry Forward Amount for such class and Payment Date;
(iii) To the Class A Notes until the principal balance of such Class A Notes
has been reduced to zero, approximately 80.05614745% of the Principal
Payment Amount for such Payment Date;
(iv) To the Class A Notes, the Principal Carry Forward Amount with respect to
the Class A Notes for such Payment Date;
(v) To the Class A Notes until the principal balance of such Class A Notes
has been reduced to zero, approximately 80.05614745% of the Additional
Principal Reduction Amount for such Payment Date;
(vi) To the Class M Notes until the principal balance of such Class M Notes
has been reduced to zero, approximately 19.94385255% of the Principal
Payment Amount for such Payment Date;
(vii) To the Class M Notes, the Principal Carry Forward Amount with respect to
the Class M Notes for such Payment Date;
(viii) To the Class M Notes until the principal balance of such Class M Notes
has been reduced to zero, approximately 19.94385255% of the Additional
Principal Reduction Amount for such Payment Date;
(ix) Concurrently, to each class of the Notes until the principal balance of
each class of Notes has been reduced to zero, approximately 80.05614745%
of the Extra Principal Payment Amount for such Payment Date to the Class
A Notes and approximately 19.94385255% of the Extra Principal Payment
Amount for such Payment Date to the Class M Notes;
(x) To each class of Notes, pro rata based on unpaid Supplemental Interest
Amounts, the outstanding Class A Supplemental Interest Amount and Class
M Supplemental Interest Amount for such Payment Date;
(xi) to the Owner Trustee on behalf of the Trust, an amount sufficient to pay
any judgment or settlement affecting the Trust; and
(xii) to the holder of the ownership interest in the Trust, any remaining
Available Payment Amount, subject to certain limitations.
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
14
-------------------------------------------------------------------------------
Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Delinquency and Loss Experience of the Master Servicer's Closed
End Home Equity Portfolio
-------------------------------------------------------------------------------
The information presented below summarizes the delinquency and loss experience
for all closed-end home equity loans originated by the United States consumer
lending business of HFC, including loans purchased with servicing performed by
HFC and its subsidiaries that were originated through a sourcing relationship,
real estate acquired through foreclosures, and the retail operations of
Beneficial Corporation, a subsidiary of HFC. The policies and practices
described below are those of HFC's consumer lending business with respect to
home equity loans.
HFC determines the delinquency status of a home equity loan on the basis of
contractual delinquency, which is a method of determining delinquency status
based on the status of payments due under the home equity loan. The
delinquency status of a home equity loan may be affected by HFC's account
management policies and practices for the collection of home equity loans in
its consumer lending portfolio as described below. Under these policies and
practices, HFC may treat a home equity loan as current based upon indicia or
criteria that in its judgment evidence a probability of continued payment.
These policies and procedures are designed to maintain and improve borrower
relationships, to maximize collections and to avoid foreclosure if reasonably
possible.
HFC's primary account management practice that resets the delinquency status
of a home equity loan to contractually current is referred to as a
restructure. Restructuring is used in situations where a delinquent borrower
is in a position to resume making payments but may not have sufficient funds
to pay all past due amounts. A restructure does not change the maturity date
of the home equity loan but does require the borrower to pay all amounts due
on or before the maturity date. "Hardship restructures" or "workout
restructures" are situations in which the payment and/or interest rate may be
modified on a temporary or permanent basis.
The fact that restructure criteria may be met for a particular home equity
loan does not require HFC to restructure that loan, and the extent to which
HFC restructures home equity loans that are eligible under the criteria will
vary depending upon its view of prevailing economic conditions and other
factors that may change from time to time. The application of this practice is
subject to complexities, variations and changes from time to time. These
policies and practices are continually under review and assessment to assure
that they meet the goals outlined above, and consequently, HFC will modify or
permit exceptions to these general policies and practices from time to time.
In addition, exceptions to these policies and practices may be made in
specific situations in response to legal or regulatory agreements or orders.
When comparing delinquency and loss experience in different periods, the fact
that HFC's restructure policies and practices will change over time and that
exceptions are made to those policies and practices, should be taken into
account.
-------------------------------------------------------------------------------
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
15
-------------------------------------------------------------------------------
Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Delinquency and Loss Experience of the Master Servicer's Closed
End Home Equity Portfolio (Continued)
-------------------------------------------------------------------------------
In the third quarter of 2003, HFC implemented certain changes to its
restructure policies and practices that generally apply to loans originated
after January 1, 2003. These policies and practices to be effective for loans
originated after January 1, 2003 are:
o home equity loans may be restructured upon receipt of two qualifying
payments within the 60 days preceding the restructure;
o home equity loans will be limited to four restructures in a rolling 60
month period;
o home equity loans will generally not be eligible for restructure until
nine months after origination;
o home equity loans whose borrowers have filed for Chapter 7 bankruptcy
protection may be restructured upon receipt of a signed reaffirmation
agreement;
o home equity loans whose borrowers are subject to a Chapter 13 plan filed
with a bankruptcy court generally may be restructured upon receipt of one
qualifying payment;
o except for bankruptcy reaffirmation and filed Chapter 13 plans, a home
equity loan will generally not be restructured more than once in a 12
month period;
o borrowers who have been affected by a disaster may be allowed to skip a
payment; and
o home equity loans whose borrowers agree to make payments by automatic
withdrawal may generally be restructured upon receipt of one qualifying
payment.
Home equity loans originated prior to January 1, 2003 will generally be
subject to restructure policies and practices that differ from those
summarized above. The policies and practices applicable to those loans are
summarized below:
o home equity loans may be restructured upon receipt of two qualifying
payments within 60 days; however, home equity loans whose borrowers are
in workout, disaster or strike situations may be restructured upon
receipt of one payment or no payments;
o home equity loans whose borrowers have filed for Chapter 7 bankruptcy
protection may be restructured upon receipt of a signed reaffirmation
agreement;
o home equity loans whose borrowers are subject to a Chapter 13 plan filed
with a bankruptcy court generally may be restructured upon receipt of one
qualifying payment;
o except for bankruptcy reaffirmation and filed Chapter 13 plans, agreed
automatic withdrawal or workout/disaster/strike situations, home equity
loans are generally limited to one restructure every 12 months;
o home equity loans generally are not eligible for restructure until six
months after origination; and
o home equity loans whose borrowers agree to make payments by automatic
withdrawal may generally be restructured with one qualifying payment.
-------------------------------------------------------------------------------
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
16
-------------------------------------------------------------------------------
Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Delinquency and Loss Experience of the Master Servicer's Closed
End Home Equity Portfolio (Continued)
-------------------------------------------------------------------------------
In addition to restructuring home equity loans, in limited situations HFC may
enter into a rewrite with a borrower. HFC enters into rewrites to manage
borrower relationships, maximize collections and avoid foreclosure if
reasonably possible. In a rewrite, a new home equity loan is written for a
borrower whose home equity loan is delinquent, and the proceeds of the new
home equity loan are applied to prepay the delinquent home equity loan in
full. The new home equity loan will be treated as contractually current and
will not be reflected in delinquency statistics, and will not be substituted
or otherwise added to the trust.
Delinquency and loss experience of home equity loans purchased from other
lenders, including through correspondent and wholesale operations, are not
included in the following tables. The tables also exclude information for
HFC's revolving home equity loans. With respect to home equity loans, HFC's
general policy is to initiate foreclosure on the mortgaged property only after
the home equity loan is more than two months delinquent, any notices required
by law have been sent to the borrower and the foreclosure is authorized by
management. Foreclosure proceedings may be terminated if the delinquency is
cured. However, under certain circumstances, HFC may elect not to commence
foreclosure if (1) the borrower's default is due to special circumstances
which are temporary and are not expected to last beyond a specified period
(see related discussion above) or (2) there is no economic benefit from the
pursuit of foreclosure taking into account the expected costs of foreclosure
and property restoration and management. HFC's policy with respect to
charged-off amounts is generally to recognize losses on past due accounts when
HFC takes title to the property in foreclosure proceedings or a settlement
with the borrower is reached. The data presented in the following tables are
for illustrative purposes only, and there is no assurance that the delinquency
and loss experience of the home equity loans will be similar to that described
on the following page.
-------------------------------------------------------------------------------
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
17
-------------------------------------------------------------------------------
Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Delinquency and Loss Experience of the Master Servicer's Closed
End Home Equity Portfolio (Continued)
-------------------------------------------------------------------------------
Beneficial and HFC Closed-End Home Equity Loan Delinquency Experience
At March 31, At December 31,
-------------------------------------------------------------------------------------------------
2004 2003 2002 2001 2000 1999
-------------------------------------------------------------------------------------------------
Number of home equity loans 283,958 281,297 285,654 255,118 207,828 151,564
managed
Aggregate principal balance of $25,962,879,574 $25,128,592,340 $23,095,352,687 $19,327,020,694 $13,520,396,079 $9,030,156,919
home equity loans managed
Contractually delinquent
principal balances
of the home equity loans
managed
One payment past due $649,944,259 $723,798,204 $751,973,652 $551,652,745 $422,286,344 $425,152,949
Two payments past due $147,536,849 $151,709,503 $168,040,461 $86,227,538 $50,625,989 $40,666,317
Three or more payments past due $899,346,173 $940,458,464 $666,674,276 $433,046,224 $294,647,865 $219,412,482
Principal balance of home equity
loans managed three or more
payments past due as a percentage
of the aggregate principal balance
of the home equity loans managed 3.46% 3.74% 2.89% 2.24% 2.18% 2.43%
In the foregoing table, "home equity loans managed" includes home equity loans owned and serviced with limited recourse and
"contractually delinquent principal balances of the home equity loans managed" includes REO Home Equity loans.
Beneficial and HFC Closed-End Home Equity Loan Loss Experience
At or for the
period ended At or for the period ended December 31,
March 31,
-------------------------------------------------------------------------------------------------
2004 2003 2002 2001 2000 1999
-------------------------------------------------------------------------------------------------
Number of home equity loans 283,958 281,297 285,654 255,118 207,828 151,564
managed
Average principal balance of
home equity loans managed $25,618,407,134 $24,187,891,026 $21,906,970,326 $16,299,225,561 $11,227,917,100 $7,308,311,310
Gross charge-offs $71,042,197 $257,590,393 $164,485,887 $81,677,475 $67,740,620 $49,140,624
REO expense $25,996,431 $78,496,211 $49,507,984 $39,026,156 $32,757,512 $27,322,858
Ratio of gross charge-offs to
average balance 1.11%* 1.06% 0.75% 0.50% 0.60% 0.67%
Ratio of gross charge-offs and
REO expense to average balance 1.52%* 1.39% 0.98% 0.74% 0.90% 1.05%
In the foregoing table, "home equity loans managed" includes home equity loans owned and serviced with limited recourse and
"average principal balance of the home equity loans managed" is the average of the monthly average principal balances. "Gross
charge-offs" is the loss recognized (a) upon settlement with the borrower for less than the entire amount due, and (b) upon
writedown to the net realizable value of a property when HFC or a subsidiary acquires title to the property. Expenses incurred in
foreclosing upon, maintaining or selling the property, additional losses taken upon decline of the property's net value or any
loss on sale of the underlying property are reflected separately above as "REO expense."
* Loan Loss Experience percentages shown for March 31, 2004 have been annualized
-------------------------------------------------------------------------------
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
18
-------------------------------------------------------------------------------
Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
-------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
DESCRIPTION OF THE STATISTICAL CUT-OFF DATE COLLATERAL
----------------------------------------------------------------------------------------------------------------------------------
Summary Minimum Maximum
------- -------
----------------------------------------------------------------------------------------------------------------------------------
Statistical Cut-Off Date Loan Principal Balance $1,036,067,394.39
Aggregate Number of Loans 9,819
Average Original Loan Principal Balance $109,314.71 $10,500.50 $602,523.67
Average Statistical Cut-Off Date Loan Principal Balance $105,516.59 $5,102.38 $591,014.49
Weighted Average Original Combined LTV 100.17% 6.09% 115.00%
Weighted Average Interest Rate 9.467% 7.000% 16.033%
Weighted Average Remaining Term to Maturity (months) 301 12 350
Weighted Average FICO Credit Score 615 483 806
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
Percent of Statistical
Cut-Off Date
Principal Balance
-----------------
Product Type Fixed Rate 100.00%
Fully Amortizing Mortgage Loans 100.00%
Lien Priority First 93.25%
Second 6.75%
Occupancy Type Primary Residence 99.77%
Investor Property 0.23%
Geographical Distribution (Top 5) California 9.79%
New York 9.68%
Ohio 8.45%
Florida 7.87%
Pennsylvania 7.16%
Number of States 42
Loans with Prepayment Penalties 82.75%
----------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
19
-------------------------------------------------------------------------------
Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
-------------------------------------------------------------------------------
Original Principal Balances
----------------------------------------------------------------------------------------------------------------------------------
Principal Balance % of Aggregate
Outstanding as of Principal Balance
Range of Number the Statistical Outstanding as of the
Original Principal Balances ($) of Loans Cut-Off Date Statistical Cut-Off Date
----------------------------------------------------------------------------------------------------------------------------------
Up to 50,000.00 1,714 $53,992,125.28 5.21%
----------------------------------------------------------------------------------------------------------------------------------
50,000.01 - 100,000.00 3,555 257,075,631.97 24.81
----------------------------------------------------------------------------------------------------------------------------------
100,000.01 - 150,000.00 2,437 290,426,688.58 28.03
----------------------------------------------------------------------------------------------------------------------------------
150,000.01 - 200,000.00 1,223 204,797,109.47 19.77
----------------------------------------------------------------------------------------------------------------------------------
200,000.01 - 250,000.00 477 103,544,160.76 9.99
----------------------------------------------------------------------------------------------------------------------------------
250,000.01 - 300,000.00 221 58,489,804.47 5.65
----------------------------------------------------------------------------------------------------------------------------------
300,000.01 and Greater 192 67,741,873.86 6.54
----------------------------------------------------------------------------------------------------------------------------------
Total: 9,819 $1,036,067,394.39 100.00%
==================================================================================================================================
Average Original Principal Balance: $109,314.71
Minimum Original Principal Balance: $10,500.50
Maximum Original Principal Balance: $602,523.67
Current Principal Balances
----------------------------------------------------------------------------------------------------------------------------------
Principal Balance % of Aggregate
Outstanding as of Principal Balance
Range of Number the Statistical Outstanding as of the
Current Principal Balances ($) of Loans Cut-Off Date Statistical Cut-Off Date
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
Up to 50,000.00 1,926 $63,500,102.61 6.13%
----------------------------------------------------------------------------------------------------------------------------------
50,000.01 - 100,000.00 3,562 267,958,170.96 25.86
----------------------------------------------------------------------------------------------------------------------------------
100,000.01 - 150,000.00 2,355 289,652,936.79 27.96
----------------------------------------------------------------------------------------------------------------------------------
150,000.01 - 200,000.00 1,139 195,258,867.54 18.85
----------------------------------------------------------------------------------------------------------------------------------
200,000.01 - 250,000.00 460 102,081,198.24 9.85
----------------------------------------------------------------------------------------------------------------------------------
250,000.01 - 300,000.00 197 53,166,214.27 5.13
----------------------------------------------------------------------------------------------------------------------------------
300,000.01 and Greater 180 64,449,903.98 6.22
----------------------------------------------------------------------------------------------------------------------------------
Total: 9,819 $1,036,067,394.39 100.00%
==================================================================================================================================
Average Current Principal Balance: $105,516.59
Minimum Current Principal Balance: $5,102.38
Maximum Current Principal Balance: $591,014.49
-------------------------------------------------------------------------------
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
20
-------------------------------------------------------------------------------
Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
-------------------------------------------------------------------------------
Current Interest Rates
----------------------------------------------------------------------------------------------------------------------------------
Principal Balance % of Aggregate
Outstanding as of Principal Balance
Range of Number of the Statistical Outstanding as of the
Current Interest Rates (%) Loans Cut-Off Date Statistical Cut-Off Date
----------------------------------------------------------------------------------------------------------------------------------
7.000 - 7.999 1,871 $296,546,061.44 28.62%
----------------------------------------------------------------------------------------------------------------------------------
8.000 - 8.999 1,211 160,763,281.33 15.52
----------------------------------------------------------------------------------------------------------------------------------
9.000 - 9.999 1,763 201,624,994.92 19.46
----------------------------------------------------------------------------------------------------------------------------------
10.000 - 10.999 2,391 229,085,956.31 22.11
----------------------------------------------------------------------------------------------------------------------------------
11.000 - 11.999 1,171 83,430,853.83 8.05
----------------------------------------------------------------------------------------------------------------------------------
12.000 - 12.999 687 36,911,301.64 3.56
----------------------------------------------------------------------------------------------------------------------------------
13.000 - 13.999 453 17,939,918.80 1.73
----------------------------------------------------------------------------------------------------------------------------------
14.000 - 14.999 254 9,158,910.57 0.88
----------------------------------------------------------------------------------------------------------------------------------
15.000 - 15.999 17 579,229.42 0.06
----------------------------------------------------------------------------------------------------------------------------------
16.000 - 16.999 1 26,886.13 0.00
----------------------------------------------------------------------------------------------------------------------------------
Total: 9,819 $1,036,067,394.39 100.00%
==================================================================================================================================
Weighted Average Interest Rate: 9.467%
Minimum Interest Rate: 7.000%
Maximum Interest Rate: 16.033%
-------------------------------------------------------------------------------
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
21
-------------------------------------------------------------------------------
Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
-------------------------------------------------------------------------------
Combined Original Loan-to-Value Ratio
----------------------------------------------------------------------------------------------------------------------------------
Principal Balance % of Aggregate
Outstanding as of Principal Balance
Range of Number of the Statistical Outstanding as of the
Combined Original Loan-to-Value Ratio (%) Loans Cut-Off Date Statistical Cut-Off Date
----------------------------------------------------------------------------------------------------------------------------------
Up to 30.00 53 $2,255,970.21 0.22%
----------------------------------------------------------------------------------------------------------------------------------
30.01 - 40.00 61 2,995,466.56 0.29
----------------------------------------------------------------------------------------------------------------------------------
40.01 - 50.00 91 5,061,362.71 0.49
----------------------------------------------------------------------------------------------------------------------------------
50.01 - 60.00 147 9,275,198.46 0.90
----------------------------------------------------------------------------------------------------------------------------------
60.01 - 70.00 240 19,670,252.37 1.90
----------------------------------------------------------------------------------------------------------------------------------
70.01 - 80.00 367 30,331,393.86 2.93
----------------------------------------------------------------------------------------------------------------------------------
80.01 - 90.00 729 67,841,937.93 6.55
----------------------------------------------------------------------------------------------------------------------------------
90.01 - 100.00 1,668 179,155,737.24 17.29
----------------------------------------------------------------------------------------------------------------------------------
100.01 - 110.00 5,682 639,071,509.27 61.68
----------------------------------------------------------------------------------------------------------------------------------
110.01 - 115.00 781 80,408,565.78 7.76
----------------------------------------------------------------------------------------------------------------------------------
Total: 9,819 $1,036,067,394.39 100.00%
==================================================================================================================================
Weighted Average Combined Original Loan-to-Value Ratio: 100.17%
Minimum Combined Original Loan-to-Value Ratio: 6.09%
Maximum Combined Original Loan-to-Value Ratio: 115.00%
-------------------------------------------------------------------------------
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
22
-------------------------------------------------------------------------------
Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
-------------------------------------------------------------------------------
Geographic Distribution
----------------------------------------------------------------------------------------------------------------------------------
Principal Balance % of Aggregate
Outstanding as of Principal Balance
Number the Statistical Outstanding as of the
State of Loans Cut-Off Date Statistical Cut-Off Date
----------------------------------------------------------------------------------------------------------------------------------
Alabama 139 $11,053,047.52 1.07%
----------------------------------------------------------------------------------------------------------------------------------
Arizona 157 17,811,865.18 1.72
----------------------------------------------------------------------------------------------------------------------------------
California 724 101,400,283.77 9.79
----------------------------------------------------------------------------------------------------------------------------------
Colorado 131 19,292,690.13 1.86
----------------------------------------------------------------------------------------------------------------------------------
Connecticut 130 13,419,932.03 1.30
----------------------------------------------------------------------------------------------------------------------------------
Delaware 67 7,688,042.72 0.74
----------------------------------------------------------------------------------------------------------------------------------
Florida 781 81,567,931.60 7.87
----------------------------------------------------------------------------------------------------------------------------------
Georgia 228 22,993,095.61 2.22
----------------------------------------------------------------------------------------------------------------------------------
Hawaii 50 8,086,945.92 0.78
----------------------------------------------------------------------------------------------------------------------------------
Idaho 113 9,906,749.56 0.96
----------------------------------------------------------------------------------------------------------------------------------
Indiana 242 21,885,108.79 2.11
----------------------------------------------------------------------------------------------------------------------------------
Iowa 61 3,892,624.81 0.38
----------------------------------------------------------------------------------------------------------------------------------
Kentucky 111 9,064,525.73 0.87
----------------------------------------------------------------------------------------------------------------------------------
Louisiana 111 10,856,468.93 1.05
----------------------------------------------------------------------------------------------------------------------------------
Maine 40 4,405,810.73 0.43
----------------------------------------------------------------------------------------------------------------------------------
Maryland 375 48,598,850.38 4.69
----------------------------------------------------------------------------------------------------------------------------------
Massachusetts 118 15,935,277.60 1.54
----------------------------------------------------------------------------------------------------------------------------------
Michigan 387 41,381,837.15 3.99
----------------------------------------------------------------------------------------------------------------------------------
Minnesota 103 13,252,243.33 1.28
----------------------------------------------------------------------------------------------------------------------------------
Missouri 435 39,311,236.21 3.79
----------------------------------------------------------------------------------------------------------------------------------
Montana 48 4,819,041.46 0.47
----------------------------------------------------------------------------------------------------------------------------------
Nebraska 73 6,086,702.69 0.59
----------------------------------------------------------------------------------------------------------------------------------
Nevada 75 10,462,242.48 1.01
----------------------------------------------------------------------------------------------------------------------------------
New Hampshire 44 5,763,257.25 0.56
----------------------------------------------------------------------------------------------------------------------------------
New Jersey 255 37,157,370.44 3.59
----------------------------------------------------------------------------------------------------------------------------------
New Mexico 84 7,636,769.56 0.74
----------------------------------------------------------------------------------------------------------------------------------
New York 1,121 100,268,713.74 9.68
----------------------------------------------------------------------------------------------------------------------------------
Ohio 904 87,566,187.07 8.45
----------------------------------------------------------------------------------------------------------------------------------
Oklahoma 251 19,677,578.11 1.90
----------------------------------------------------------------------------------------------------------------------------------
Oregon 129 15,695,659.57 1.51
----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania 779 74,132,376.00 7.16
----------------------------------------------------------------------------------------------------------------------------------
Rhode Island 22 3,302,668.66 0.32
----------------------------------------------------------------------------------------------------------------------------------
South Carolina 207 18,322,999.47 1.77
----------------------------------------------------------------------------------------------------------------------------------
South Dakota 23 2,374,895.68 0.23
----------------------------------------------------------------------------------------------------------------------------------
Tennessee 183 17,614,366.19 1.70
----------------------------------------------------------------------------------------------------------------------------------
Utah 107 12,425,487.05 1.20
----------------------------------------------------------------------------------------------------------------------------------
Vermont 7 664,269.32 0.06
----------------------------------------------------------------------------------------------------------------------------------
Virginia 526 56,102,039.61 5.41
----------------------------------------------------------------------------------------------------------------------------------
Washington 245 31,734,438.34 3.06
----------------------------------------------------------------------------------------------------------------------------------
West Virginia 62 4,122,645.47 0.40
----------------------------------------------------------------------------------------------------------------------------------
Wisconsin 150 16,406,343.82 1.58
----------------------------------------------------------------------------------------------------------------------------------
Wyoming 21 1,926,774.71 0.19
----------------------------------------------------------------------------------------------------------------------------------
Total: 9,819 $1,036,067,394.39 100.00%
----------------------------------------------------------------------------------------------------------------------------------
Number of States Represented: 42
-------------------------------------------------------------------------------
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
23
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Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
-------------------------------------------------------------------------------
Occupancy Type
----------------------------------------------------------------------------------------------------------------------------------
Principal Balance % of Aggregate
Outstanding as of Principal Balance
Number the Statistical Outstanding as of the
Occupancy Type of Loans Cut-Off Date Statistical Cut-Off Date
----------------------------------------------------------------------------------------------------------------------------------
Primary Residence 9,790 $1,033,714,674.11 99.77%
----------------------------------------------------------------------------------------------------------------------------------
Investor Property 29 2,352,720.28 0.23
----------------------------------------------------------------------------------------------------------------------------------
Total: 9,819 $1,036,067,394.39 100.00%
==================================================================================================================================
Lien Position
----------------------------------------------------------------------------------------------------------------------------------
Principal Balance % of Aggregate
Outstanding as of Principal Balance
Number the Statistical Outstanding as of the
Lien Position of Loans Cut-Off Date Statistical Cut-Off Date
----------------------------------------------------------------------------------------------------------------------------------
First Lien 8,243 $966,095,920.68 93.25%
----------------------------------------------------------------------------------------------------------------------------------
Second Lien 1,576 69,971,473.71 6.75
----------------------------------------------------------------------------------------------------------------------------------
Total: 9,819 $1,036,067,394.39 100.00%
==================================================================================================================================
-------------------------------------------------------------------------------
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
24
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Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
-------------------------------------------------------------------------------
Remaining Term to Stated Maturity
----------------------------------------------------------------------------------------------------------------------------------
Principal Balance % of Aggregate
Outstanding as of Principal Balance
Remaining Term to Stated Maturity Number the Statistical Outstanding as of the
(Months) of Loans Cut-Off Date Statistical Cut-Off Date
----------------------------------------------------------------------------------------------------------------------------------
1 - 60 38 $962,018.74 0.09%
----------------------------------------------------------------------------------------------------------------------------------
61 - 120 331 17,121,615.41 1.65
----------------------------------------------------------------------------------------------------------------------------------
121 - 180 1,298 77,955,809.89 7.52
----------------------------------------------------------------------------------------------------------------------------------
181 - 240 1,764 144,047,926.41 13.90
----------------------------------------------------------------------------------------------------------------------------------
241 - 300 474 54,687,131.60 5.28
----------------------------------------------------------------------------------------------------------------------------------
301 - 360 5,914 741,292,892.34 71.55
----------------------------------------------------------------------------------------------------------------------------------
Total: 9,819 $1,036,067,394.39 100.00%
==================================================================================================================================
Weighted Average Remaining Term: 301 Months
Minimum Remaining Term: 12 months
Maximum Remaining Term: 350 months
-------------------------------------------------------------------------------
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
25
-------------------------------------------------------------------------------
Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
-------------------------------------------------------------------------------
Year of Origination
----------------------------------------------------------------------------------------------------------------------------------
Principal Balance % of Aggregate
Outstanding as of Principal Balance
Number the Statistical Outstanding as of the
Year of Origination Date of Loans Cut-Off Date Statistical Cut-Off Date
----------------------------------------------------------------------------------------------------------------------------------
2000 640 $42,479,758.76 4.10%
----------------------------------------------------------------------------------------------------------------------------------
2001 1,946 177,040,501.19 17.09
----------------------------------------------------------------------------------------------------------------------------------
2002 3,093 305,373,970.83 29.47
----------------------------------------------------------------------------------------------------------------------------------
2003 4,140 511,173,163.61 49.34
----------------------------------------------------------------------------------------------------------------------------------
Total: 9,819 $1,036,067,394.39 100.00%
==================================================================================================================================
FICO Credit Scores(1)
----------------------------------------------------------------------------------------------------------------------------------
Principal Balance % of Aggregate
Outstanding as of Principal Balance
Number the Statistical Outstanding as of the
Range of FICO Credit Scores of Loans Cut-Off Date Statistical Cut-Off Date
----------------------------------------------------------------------------------------------------------------------------------
Not Available 232 $24,058,514.11 2.32%
----------------------------------------------------------------------------------------------------------------------------------
483 - 500 2 130,718.34 0.01
----------------------------------------------------------------------------------------------------------------------------------
501 - 540 813 87,175,772.06 8.41
----------------------------------------------------------------------------------------------------------------------------------
541 - 580 1,778 187,040,425.28 18.05
----------------------------------------------------------------------------------------------------------------------------------
581 - 620 2,430 262,103,946.20 25.30
----------------------------------------------------------------------------------------------------------------------------------
621 - 660 2,665 280,647,137.51 27.09
----------------------------------------------------------------------------------------------------------------------------------
661 - 700 1,343 139,757,607.18 13.49
----------------------------------------------------------------------------------------------------------------------------------
701 - 806 556 55,153,273.71 5.32
----------------------------------------------------------------------------------------------------------------------------------
Total: 9,819 $1,036,067,394.39 100.00%
==================================================================================================================================
Non-Zero Weighted Average FICO Credit Score: 615(2)
Non-Zero Minimum FICO Credit Score: 483
Maximum FICO Credit Score: 806
(1) The FICO Credit Scores presented represent the scores entered
into the first borrower's field in HFC's or its subsidiary's
electronic records at the time of application. These scores may
be the higher or the lower of the FICO Credit Scores for
co-borrowers of a home equity loan and may not be the score
assigned to the primary obligor on the loan. Household does not
use FICO Credit Scores as a primary basis of its credit decision
but evaluates credit-worthiness based upon a proprietary internal
credit-scoring model.
(2) Weighted Average FICO Credit Score and minimum excluding loans
without a FICO Credit score.
-------------------------------------------------------------------------------
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
26
-------------------------------------------------------------------------------
Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
-------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
BOND SUMMARY (To Call)
---------------------------------------------------------------------------------------------------------------------------------
Class A
PPC 0% 50% 75% 100% 125% 150% 200%
Average Life (Years) 8.34 4.30 3.00 2.25 1.72 1.28 0.92
Modified Duration (at par) 7.63 4.02 2.86 2.16 1.66 1.25 0.90
First Principal Payment Date 08/20/04 08/20/04 08/20/04 08/20/04 08/20/04 08/20/04 08/20/04
Last Principal Payment Date 07/20/14 07/20/14 09/20/11 12/20/09 10/20/08 03/20/07 06/20/06
Principal Payment Window (Months) 120 120 86 65 51 32 23
Class M
PPC 0% 50% 75% 100% 125% 150% 200%
Average Life (Years) 8.34 4.30 3.00 2.25 1.72 1.28 0.92
Modified Duration (at par) 7.54 3.98 2.84 2.15 1.66 1.24 0.90
First Principal Payment Date 08/20/04 08/20/04 08/20/04 08/20/04 08/20/04 08/20/04 08/20/04
Last Principal Payment Date 07/20/14 07/20/14 09/20/11 12/20/09 10/20/08 03/20/07 06/20/06
Principal Payment Window (Months) 120 120 86 65 51 32 23
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
BOND SUMMARY (To Maturity)
---------------------------------------------------------------------------------------------------------------------------------
Class A
PPC 0% 50% 75% 100% 125% 150% 200%
Average Life (Years) 10.78 4.54 3.22 2.43 1.87 1.34 0.96
Modified Duration (at par) 9.58 4.22 3.04 2.32 1.80 1.30 0.94
First Principal Payment Date 08/20/04 08/20/04 08/20/04 08/20/04 08/20/04 08/20/04 08/20/04
Last Principal Payment Date 07/20/21 12/20/17 10/20/14 08/20/12 01/20/11 02/20/08 02/20/07
Principal Payment Window (Months) 204 161 123 97 78 43 31
Class M
PPC 0% 50% 75% 100% 125% 150% 200%
Average Life (Years) 10.78 4.54 3.22 2.43 1.87 1.34 0.96
Modified Duration (at par) 9.44 4.18 3.02 2.31 1.79 1.30 0.94
First Principal Payment Date 08/20/04 08/20/04 08/20/04 08/20/04 08/20/04 08/20/04 08/20/04
Last Principal Payment Date 07/20/21 12/20/17 10/20/14 08/20/12 01/20/11 02/20/08 02/20/07
Principal Payment Window (Months) 204 161 123 97 78 43 31
---------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
27
-------------------------------------------------------------------------------
Household Home Equity Loan Trust 2004-1
Closed-End Home Equity Loan Asset-Backed Notes, Series 2004-1
$877,689,000 (approximate) HOUSEHOLD
-------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
AVAILABLE FUNDS CAP (1)
----------------------------------------------------------------------------------------------------------------------------
============================================================================================================================
Payment Available Class A Cap Class M Payment Available Class A Class M
Period Date Funds Cap (2) Cap (2) Period Date Funds Cap Cap (2) Cap (2)
============================================================================================================================
1 8/20/2004 9.276 9.276 9.276 35 6/20/2007 8.648 8.648 8.648
2 9/20/2004 8.673 8.673 8.673 36 7/20/2007 8.936 8.936 8.936
3 10/20/2004 8.958 8.958 8.958 37 8/20/2007 8.648 47.936 48.858
4 11/20/2004 8.666 8.666 8.666 38 9/20/2007 8.647 28.074 28.533
5 12/20/2004 8.952 8.952 8.952 39 10/20/2007 8.935 29.017 29.495
6 1/20/2005 8.660 8.660 8.660 40 11/20/2007 8.647 28.089 28.554
7 2/20/2005 8.658 8.658 8.658 41 12/20/2007 8.934 29.033 29.516
8 3/20/2005 9.585 9.585 9.585 42 1/20/2008 8.646 28.104 28.575
9 4/20/2005 8.656 8.656 8.656 43 2/20/2008 8.645 28.112 28.586
10 5/20/2005 8.945 8.945 8.945 44 3/20/2008 9.241 30.058 30.568
11 6/20/2005 8.656 8.656 8.656 45 4/20/2008 8.645 28.127 28.607
12 7/20/2005 8.944 8.944 8.944 46 5/20/2008 8.932 29.073 29.572
13 8/20/2005 8.655 8.655 8.655 47 6/20/2008 8.644 28.143 28.629
14 9/20/2005 8.655 8.655 8.655 48 7/20/2008 8.931 29.090 29.595
15 10/20/2005 8.943 8.943 8.943 49 8/20/2008 8.643 28.159 28.652
16 11/20/2005 8.654 8.654 8.654 50 9/20/2008 8.642 28.168 28.664
17 12/20/2005 8.943 8.943 8.943 51 10/20/2008 8.930 29.116 29.631
18 1/20/2006 8.654 8.654 8.654 52 11/20/2008 8.642 28.185 28.687
19 2/20/2006 8.654 8.654 8.654 53 12/20/2008 8.929 29.134 29.656
20 3/20/2006 9.580 9.580 9.580 54 1/20/2009 8.641 28.203 28.711
21 4/20/2006 8.653 8.653 8.653 55 2/20/2009 8.640 28.211 28.723
22 5/20/2006 8.941 8.941 8.941 56 3/20/2009 9.565 31.244 31.814
23 6/20/2006 8.652 8.652 8.652 57 4/20/2009 8.639 28.230 28.748
24 7/20/2006 8.941 8.941 8.941 58 5/20/2009 8.927 29.180 29.719
25 8/20/2006 8.652 8.652 8.652 59 6/20/2009 8.638 28.248 28.773
26 9/20/2006 8.651 8.651 8.651 60 7/20/2009 8.926 29.200 29.746
27 10/20/2006 8.940 8.940 8.940 61 8/20/2009 8.637 28.267 28.799
28 11/20/2006 8.651 8.651 8.651 62 9/20/2009 8.637 28.277 28.812
29 12/20/2006 8.939 8.939 8.939 63 10/20/2009 8.924 29.230 29.786
30 1/20/2007 8.650 8.650 8.650 64 11/20/2009 8.636 28.297 28.839
31 2/20/2007 8.650 8.650 8.650 65 12/20/2009 8.923 29.250 29.814
32 3/20/2007 9.576 9.576 9.576
33 4/20/2007 8.649 8.649 8.649
34 5/20/2007 8.937 8.937 8.937
============================================================================================================================
1) Assumes that 1-month LIBOR instantaneously increases to 20.00% and run at
the pricing speed.
2) Includes Supplemental Interest Amounts.
-------------------------------------------------------------------------------
The information herein has been prepared solely for informational purposes and
is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. No
representation or warranty can be given with respect to the accuracy or
completeness of the information herein, or that any future offer of
securities, instruments or transactions will conform to the terms hereof.
Please refer to the important information and qualifications on the second
page hereof when reviewing this information.
28
