[LOGO] Xxxxxxx Xxxxx COMPUTATIONAL MATERIALS
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Issuer: Green Tree Financial Corporation
Deal: Certificates for Home Improvement Loans.
Home Improvement Loan Trust 1996-A (Secured)
Size: $93,726,023 (Approximate)
Exp Pricing: March 7, 1996.
Exp Settlement: March 14, 1996
Cert. Legal Final February, 2026
Ratings WAL Exp. Final
Amount Xxxxx'x/S&P @ 15% CPR Maturity
To Call
A-1 $32,000,000 Aaa/AAA 1.02 4/98
A-2 $21,000,000 Aaa/AAA 3.05 6/00
A-3 $17,300,000 Aaa/AAA 5.78 11/03
M-1 $ 6,550,000 Aa2/AA 8.71 10/05
M-2 $ 5,625,000 A2/A 9.59 10/05
B-1 $ 5,625,000 Baa2/BBB 4.79 7/02
B-2 $ 5,626,023 Baa1/A- 8.46 10/05
No Call
M-1 $ 6,550,000 Aa2/AA 8.81 9/06
M-2 $ 5,625,000 A2/A 13.69 2/21
B-2 $ 5,626,023 Baa1/A- 9.82 2/21
Seller/Servicer: Green Tree Financial Corporation ("GTFC")
Trustee: First Trust National Association
Underwriter: Xxxxxxx Xxxxx & Co. (Sole)
ERISA: Class A-1, A-2, and A-3 are eligible if investor is
qualified (check with counsel), Class M-1, M-2, B-1, B-2 are
not eligible.(S-19)
SMMEA: Not Eligible.(S-19)
Interest/Principal: The 15th day of each month or, if such day is not a Business
Day, the next succeeding Business Day, commencing April 15,
1996.
Optional
Redemption: The Servicer will have the option to repurchase all of the
outstanding Contracts on any Payment Date on which the Pool
Scheduled Principal Balance is less than 10% of the Cut-off
Date Pool Principal Balance. (S-19)
Stated Delay: None
Cut-off Date: February 28, 1996
Tax Status: The Trust will be treated as a REMIC for federal income tax
purposes.(S-19)
Excess Spread: Approximately 543 b.p., including subordinated servicing of
75 b.p. as long as GTFC remains Servicer.
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Recipients must read the information contained in the attached statement. Do
not use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Xxxxxxx Xxxxx
account executive for another copy.
Credit Enhancement: Class A-1: 25% subordination (Class M-1, M-2, B-1, B-2)
plus excess spread.
Class A-2: 25% subordination (Class M-1, M-2, B-1, B-2) plus
excess spread.
Class A-3: 25% subordination (Class M-1, M-2, B-1, B-2) plus
excess spread.
Class M-1: 18% subordination (Class M-2, B-1, B-2) plus
excess spread.
Class M-2: 12% subordination (Class B-1 and B-2) plus excess
spread.
Class B-1: 6% subordination, (Class B-2) plus excess spread.
Class B-2: Green Tree Guaranty plus excess spread.
All Certificates benefit from FHA loans, which represent
11.33% of the loans in the pool by principal balance, which
are partially insured by FHA against obligor defaults
pursuant to Title I of the National Housing Act. (S-18)
Geography: Loans in 48 states and District of Columbia; highest
percentages are: CA 12.64%, NY 7.69%, FL 6.47%, NJ 6.30%, PA
6.19%, TX 5.24%; no other state greater than 5%.(S-21)
The 1996-A Series Contracts as of the Cut-Off Date (S-22)
Number of HILs in Pool: 6,400
Avg. Principal Balance: $14,644.69
Wgt. Avg. Contract Rate: 12.01%
Range of Rates: 5.99%-15.75%
Wgt. Avg. Orig. Maturity: 185 mos.
Range of Orig. Mat: 24 - 360 mos.
Wgt. Avg. Rem. Maturity: 185 mos.
Range of Rem. Mat: 22 - 359 mos.
Final Contract Payment Date: January, 2026
LIEN POSITION OF CONTRACTS
% of Contr. Aggr. Princ. % of Contr Pool
# of Contr. Pool by # of Bal. Outst. by Outst. Princ.
as of Contr. as of as of Bal. as of
Cut-off Date Cut-off Date Cut-off Date Cut-off Date
First 424 6.63% $ 5,690,538.87 6.07%
Second 4,954 77.40% 73,895,810.35 78.84%
Third 1,008 15.75% 13,998,875.32 14.94%
Fourth 14 0.22% 140,798.89 0.15%
----- ------ -------------- ------
Total 6,400 100.00% $93,726,023.43 100.00%
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Recipients must read the information contained in the attached statement. Do
not use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Xxxxxxx Xxxxx
account executive for another copy.
2
YEARS OF ORIGINATION OF CONTRACTS
Aggr. Princ. % of Contr Pool
# of Contr. Bal. Outst. by Outst. Princ.
as of as of Bal. as of
Year of Origination Cut-off Date Cut-off Date Cut-off Date
1994 3 $ 111,903.19 0.12%
1995 3,885 56,202,907.57 59.96%
1996 2,512 37,411,212.67 39.92%
----- -------------- ------
Total 6,400 $93,726,023.43 100.00%
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CONTRACT RATES
Aggr. Princ. % of Contr Pool
# of Contr. Bal. Outst. by Outst. Princ.
as of as of Bal. as of
Range of Rates Cut-off Date Cut-off Date Cut-off Date
0.00000% - 9.00000% 10 $ 238,969.46 0.25%
9.00001% - 10.00000% 248 3,400,925.01 3.63%
10.00001% - 11.00000% 1,057 22,381,657.55 23.88%
11.00001% - 12.00000% 1,859 27,746,123.85 29.60%
12.00001% - 13.00000% 2,656 34,063,473.57 36.35%
13.00001% - 14.00000% 447 5,214,577.29 5.56%
14.00001% - 15.00000% 114 606,399.86 0.65%
15.00001% - 16.00000% 9 73,896.84 0.08%
----- -------------- ------
Total 6,400 $93,726,023.43 100.00%
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DISTRIBUTION OF ORIGINAL CONTRACT AMOUNTS
Aggr. Princ. % of Contr Pool
# of Contr. Bal. Outst. by Outst. Princ.
as of as of Bal. as of
Original Contr. $ Cut-off Date Cut-off Date Cut-off Date
(LESS THAN) $10,000 2,279 $15,470,275.29 16.51%
$10,000 - $19,999 2,673 38,229,621.96 40.79%
$20,000 - $29,999 1,029 24,586,408.20 26.23%
$30,000 - $39,999 281 9,284,373.07 9.91%
$40,000 - $49,999 121 5,107,836.06 5.45%
$50,000 - $59,999 11 571,623.64 0.61%
$60,000 - $69,999 3 189,697.20 0.20%
$70,000 - $79,999 0 0.00 0.00%
$80,000 - $89,999 2 169,703.86 0.18%
$90,000 - $99,999 0 0.00 0.00%
$100,000 - $109,999 0 0.00 0.00%
(GREATER THAN) $110,000 1 116,484.15 0.12%
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Total 6,400 $93,726,023.43 100.00%
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Recipients must read the information contained in the attached statement. Do
not use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Xxxxxxx Xxxxx
account executive for another copy.
3
REMAINING MONTHS TO MATURITY
Aggr. Princ. % of Contr Pool
# of Contr. Bal. Outst. by Outst. Princ.
as of as of Bal. as of
Mos Rem. to Sch. Mat. Cut-off Date Cut-off Date Cut-off Date
(LESS THAN) 31 27 $ 114,842.25 0.12%
31 - 60 692 4,750,215.43 5.07%
61 - 90 372 2,860,176.54 3.05%
91 - 120 2,015 22,968,140.94 24.51%
121 - 150 96 1,239,114.79 1.32%
151 - 180 1,802 30,042,280.40 32.05%
181 - 210 8 140,430.18 0.15%
211 - 240 734 15,481,787.65 16.52%
241 - 270 1 8,708.30 0.01%
271 - 300 652 16,085,384.25 17.16%
301 - 330 0 0.00 0.00%
331 - 360 1 34,942.70 0.04%
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Total 6,400 $93,726,023.43 100.00%
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STRUCTURE:
Class A: The Class A Certificates are Senior Certificates. The
Class M-1, M-2, B-1 and B-2 Certificates are
Subordinated Certificates. The Senior Certificates will
receive interest concurrently at their respective
payment rates on the outstanding Class A-1, A-2, and
A-3 principal balances. The Class A Certificates will
accrue interest from the Settlement Date or from the
most recent Payment Date on which interest has been
paid to but excluding the following Payment Date. In
the event that, on a particular Payment Date, the
Amount Available in the Certificate Account is not
sufficient to make a full distribution of interest to
the holders of each Class of Class A Certificates, the
Amount Available will be distributed among the
outstanding Classes of Class A Certificates pro rata
based on the aggregate amount of interest due on each
such class, and the amount of the shortfall will be
carried forward. The Class A Certificateholders will
receive the Senior Percentage of the Formula Principal
Distribution Amount, to the extent of the Amount
Available after payment of interest on each class of
Class A Certificates, first to the Class A-1
Certificateholders until the Class A-1 Principal
Balance has been reduced to zero, then to the Class A-2
Certificateholders until the Class A-2 Principal
Balance has been reduced to zero, and then to the Class
A-3 Certificateholders until the Class A-3 Principal
Balance has been reduced to zero. The Formula Principal
Distribution Amount is equal to all principal due on
the contracts, plus any partial
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Recipients must read the information contained in the attached statement. Do
not use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Xxxxxxx Xxxxx
account executive for another copy.
4
or full prepayments and the scheduled balance of
Contracts that are liquidated or repurchased by Green
Tree.
The Senior Percentage of the Formula Principal
Distribution Amount will equal 100% if any of the
following exist:
i) it is prior to April 1999 (Month 36);
ii) the Class B Principal Balance represents less
than 24% of the Pool Scheduled Balance; and
iii) each Class B Principal Distribution Test (See
below) is not satisfied.
Otherwise, the Senior Percentage will equal a fraction,
the numerator of which is the sum of the Class A
Principal Balance and the Class M Principal Balance,
and the denominator of which is the Pool Scheduled
Principal Balance for the immediately preceding
remittance date. The Senior Percentage of the Formula
Principal Distribution Amount will be distributed
sequentially to the Class A-1, A-2 and A-3
Certificateholders.
Class M-1: Interest will be paid to the Class M-1
Certificateholders at the Class M-1 Pass-Through Rate,
after payment of all interest and all principal due to
the Class A Certificates. Interest will accrue from the
Settlement Date or from the most recent Payment Date on
which interest was paid, based on 360-day year of
twelve 30-day months. The Class M-1 Certificateholders
will receive the Senior Percentage of the Formula
Principal Distribution Amount, if the Class A Principal
Balance has been reduced to zero, after payment of all
interest payable to Class M-1 Certificateholders. On
each Payment Date on or after the Class B Cross-over
Date on which each Class B Principal Distribution Test
is satisfied, payments of principal will be made to
Class B-1 or Class B-2 Certificateholders, even if
Class M-1 Certificateholders are not yet entitled to
receive payments of principal because the Class A
Principal Balance has not been reduced to zero.
Class M-2: Interest will be paid to the Class M-2
Certificateholders at the Class M-2 Pass-Through Rate,
after payment of all interest and all principal due to
the Class A Certificateholders, and Class M-1
Certificateholders. Interest will accrue from the
Settlement Date or from the most recent Payment Date on
which interest was paid, based on 360-day year of
twelve 30-day months. The Class M-2 Certificateholders
will receive the Senior Percentage of the Formula
Principal Distribution Amount, if the
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Recipients must read the information contained in the attached statement. Do
not use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Xxxxxxx Xxxxx
account executive for another copy.
5
Class A and Class M-1 Principal Balances have been
reduced to zero, after payment of all interest payable
to Class M-2 Certificateholders. On each Payment Date
on or after the Class B Cross-over Date on which each
Class B Principal Distribution Test is satisfied,
payments of principal will be made to Class B-1 or
Class B-2 Certificateholders, even if Class M-2
Certificateholders are not yet entitled to receive
payments of principal because the Class A Principal
Balance and Class M-1 Principal Balance have not been
reduced to zero.
Class B-1: Interest will be paid to the Class B-1
Certificateholders at the Class B-1 Pass-Through Rate,
after payment of all interest and all principal due to
the Class A Certificates and Class M Certificates.
Interest will accrue from the Settlement Date or from
the most recent Payment Date on which interest was
paid.
The Class B-1 Certificateholders will not receive
principal payments until after the Class B Cross-over
date. The Class B Percentage will be equal to 100%
minus the Senior Percentage if on or after April 1999,
the Class B Principal Balance represents more than 24%
of the Pool Scheduled Balance, and each of the Class B
Principal Distribution Tests (See below) are satisfied.
The Class B Percentage after the Class A and Class M
Principal Balances have been reduced to zero will be
equal to 100%.
Class B-2: Interest will be paid to the Class B-2 Certificates at
the Class B-2 Pass-Through Rate after payment of all
interest and principal due on the Class A, Class M and
Class B-1 Certificates. Interest will accrue from the
Settlement Date or from the most recent Payment Date on
which interest was paid.
Except for payments of the Class B-2 Guaranty payment,
Class B-2 will not receive principal payments until (i)
the Class B-1 has been reduced to zero; (ii) on or
after April 1999; (iii) the Class B Principal Balance
represents more than 24% of the Pool Scheduled Balance;
and (iv) each Class B Principal Distribution Test (see
below) is satisfied. The Class B Percentage, after the
Class A and Class M Principal Balances have been
reduced to zero, will be equal to 100%.
The Class B-2 Certificateholders will have the benefit
of a limited guaranty (the "Limited Guaranty") of GTFC
to protect against losses that would otherwise be
absorbed by the Class B-2
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Recipients must read the information contained in the attached statement. Do
not use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Xxxxxxx Xxxxx
account executive for another copy.
6
Certificateholders. To the extent that funds in the
Certificate Account are insufficient to distribute to
the Class B-2 Certificateholders the Class B-2
Percentage of the Formula Principal Distribution
Amount, the Company will be obligated to pay the
Guaranty Payment (interest & liquidation losses).
THE CLASS B PRINCIPAL DISTRIBUTION TEST on each Payment
Date consists of the following:(i) the Average Sixty-
Day Delinquency Ratio as of such Payment Date must not
exceed 2.5%(S-28); (ii) the Average Thirty-Day
Delinquency Ratio as of such Payment Date must not
exceed 5%; (iii) the Cumulative Realized Losses as of
such Payment Date must not exceed a certain specified
percentage of the Cut-off Date Pool Principal Balance;
(iv)the Current Realized Loss Ratio as of such Payment
Date must not exceed 2.25%; and (v) the Class B
Principal Balance must be equal to or greater than 24%.
To the extent that losses on liquidated contracts
create principal shortfalls which exceed the protection
afforded to the Certificateholders by (i) the
subordination of the Monthly Servicing Fee payable to
the Servicer (so long as the Company or any wholly
owned subsidiary of the Company is the Servicer); (ii)
amounts otherwise distributable as excess spread to
Green Tree; and (iii) amounts paid under the Class B-2
Limited Guaranty, such principal shortfalls will be
allocated to the Class B-2 Certificateholders, then the
Class B-1 Certificateholders, then the Class M-2
Certificateholders and then the Class M-1
Certificateholders, and such shortfalls, if any, will
reduce the notional amount of principal used to
calculate the interest portion of the Distribution
Amount for such Class. Interest will accrue on the
related Class Principal Shortfall Amount at the related
Class Pass-Through Rate and will be payable on
succeeding Payment Dates to the extent remaining after
payment in full of Distribution Amounts, if any,
otherwise due to the Class A, Class M and Class B
Certificateholders.
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Recipients must read the information contained in the attached statement. Do
not use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Xxxxxxx Xxxxx
account executive for another copy.
7
HIL PREPAYMENT SENSITIVITIES(1)
11% CPR 13% CPR 15% CPR 17% CPR 19% CPR
WAL/Matur. WAL/Matur. WAL/Matur. WAL/Matur. WAL/Matur.
To Call
A-1 1.31/11/98 1.15/ 8/98 1.02/ 4/98 0.92/ 2/98 0.83/12/97
A-2 3.85/ 6/01 3.41/11/00 3.05/ 6/00 2.75/ 1/00 2.49/ 8/99
A-3 6.96/ 3/05 6.33/ 6/04 5.78/11/03 5.28/ 4/03 4.78/ 9/02
M-1 10.59/11/07 9.54/10/06 8.71/10/05 8.02/11/04 7.45/ 5/04
M-2 11.67/11/07 10.59/10/06 9.59/10/05 8.67/11/04 8.17/ 5/04
B-1 5.83/10/03 5.30/ 3/03 4.79/ 7/02 4.35/ 1/02 4.17/ 9/01
B-2 10.19/11/07 9.29/10/06 8.46/10/05 7.74/11/04 7.33/ 5/04
To Maturity
M-1 10.69/10/08 9.64/ 9/07 8.81/ 9/06 8.12/10/05 7.50/11/04
M-2 15.81/ 2/21 14.72/ 2/21 13.69/ 2/21 12.73/ 2/21 11.77/ 2/21
B-2 11.54/ 2/21 10.65/ 2/21 9.82/ 2/21 9.08/ 2/21 8.59/ 2/21
The attached tables and other statistical analyses (the "Computational
Material") are privileged and confidential and are intended for use by the
addressee only. These Computational Materials are furnished to you solely by
Xxxxxxx Xxxxx, Xxxxxx, Xxxxxx & Xxxxx Incorporated ("Xxxxxxx Xxxxx") and not by
the issuer of the securities or any of its affiliates. The issuer of these
securities has not prepared or taken part in the preparation of these materials.
Neither Xxxxxxx Xxxxx, the issuer of the securities nor any of its affiliates
makes any representation as to the accuracy or completeness of the information
herein. The information herein is preliminary, and will be subsequently filed
with the Securities and Exchange Commission. They may not be provided to any
third party other than the addressee's legal, tax, financial and/or accounting
advisors for the purposes of evaluating said material.
Numerous assumptions were used in preparing the Computational Material
which may or may not be stated therein. As such, no assurance can be given as to
the accuracy, appropriateness or completeness of the Computational Materials in
any particular context; or as to whether the Computational Materials and/or the
assumptions upon which they are based reflect present market conditions or
future market performance. These Computational Materials should not be construed
as either projections or predictions or as legal, tax, financial or accounting
advice.
Any yields or weighted average lives shown in the Computational Materials
are based on prepayment assumptions and actual prepayment experience may
dramatically affect such yields or weighted average lives. In addition, it is
possible that prepayments on the underlying assets will occur at rates slower or
faster than the rates assumed in the attached Computational Materials.
Furthermore, unless otherwise provided, the Computational Materials assume no
losses on the underlying assets and no interest shortfall. The specific
characteristics of the securities may differ from those shown in the
Computational Materials due to differences between the
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Recipients must read the information contained in the attached statement. Do not
use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Xxxxxxx Xxxxx
account executive for another copy.
8
actual underlying assets and the hypothetical assets used in preparing the
Computational Materials. The principal amount and designation of any security
described in the Computational Materials are subject to change prior to
issuance.
Although a registration statement (including the prospectus) relating to
the securities discussed in this communication has been filed with the
Securities and Exchange Commission and is effective, the final prospectus
supplement relating to the securities discussed in this communication has not
been filed with the Securities and Exchange Commission. This communication shall
not constitute an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of the securities discussed in this communication in any state
in which such offer, solicitations or sale would be unlawful prior to
registration or qualification under the securities laws of any such state.
Prospective purchasers are referred to the final prospectus and prospectus
supplement relating to the securities discussed in this communication for
definitive Computational Materials on any matter discussed in this
communication. A final prospectus and prospectus supplement may be obtained by
contacting the Xxxxxxx Xxxxx Trading Desk and (000) 000-0000.
Please be advised that asset-backed securities may not be appropriate for
all investors. Potential investors must be willing to assume, among other
things, market price volatility, prepayments, yield curve and interest rate
risk. Investors should fully consider the risk of an investment in these
securities.
If you have received this communication in error, please notify the sending
party immediately by telephone and return the original to such party by mail.
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Recipients must read the information contained in the attached statement. Do not
use or rely on this information if you have not received and reviewed the
statement. If you have not received the statement, call your Xxxxxxx Xxxxx
account executive for another copy.
9
