Saxon Asset Securities Company
Mortgage Loan Asset Backed Certificates,
Series 2000-2
UNDERWRITING AGREEMENT
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Dated: June 1, 2000
To: Saxon Asset Securities Company (the "Company")
Saxon Mortgage Inc. ("SMI")
Re: Standard Terms to Underwriting Agreement (June 1997 Edition)
Series
Designation: Mortgage Loan Asset Backed Certificates, Series 2000-2, Class AF-
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1, Class AF-2, Class AF-3, Class AF-4, Class AF-5, Class AF-6,
Class MF-1, Class MF-2, Class BF-1, Class BF-2, Class PF-1, Class
AV-1, Class MV-1, Class MV-2, Class BV-1, Class BV-2, Class PV-1,
Class A-IO, Class C and Class R (collectively the "Certificates").
The Class AF-1, Class AF-2, Class AF-3, Class AF-4, Class AF-5,
Class AF-6, Class MF-1, Class MF-2, Class BF-1, Class AV-1, Class
MV-1, Class MV-2, Class BV-1 Certificates are referred to herein
as the "Underwritten Certificates."
Underwriting Agreement: Subject to the terms and conditions
set forth and incorporated by reference herein, the Company hereby agrees to
issue and sell to Banc of America Securities LLC, Greenwich Capital Markets,
Inc., Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated, Prudential Securities
Incorporated, and Banc One Capital Markets, Inc., (collectively, the
"Underwriters"), and the Underwriters hereby agree to purchase from the Company,
on or about June 14, 2000, the Underwritten Certificates at the purchase price
and on the terms set forth below; provided, however, that the obligations of the
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Underwriters are subject to: (i) receipt by the Company of (a) the ratings
specified in the table below by Standard & Poor's Ratings Services, a division
of The XxXxxx-Xxxx Companies, Inc. ("S&P"), and Fitch IBCA, Inc. ("Fitch" and
together with S&P, the "Rating Agencies") with respect to each Class of
Certificates; (ii) receipt of a Prospectus Supplement in form and substance
satisfactory to the Underwriters; and (iii) the Sales Agreement dated as of June
1, 2000 by and between the Company and Saxon Mortgage, Inc. ("SMI") and the
Trust Agreement (as defined below) each being in form and substance satisfactory
to the Underwriters.
The Certificates will be issued pursuant to a Trust Agreement,
dated as of June 1, 2000 (the "Trust Agreement"), by and among the Company, SMI,
as Master Servicer (the "Master Servicer"), and Bankers Trust Company as Trustee
(the "Trustee"). The Certificates will represent in the aggregate the entire
beneficial ownership interest in the assets of the Trust created under the Trust
Agreement (the "Trust"), which will consist primarily of two pools of
conventional, one- to four-family, mortgage loans (the "Mortgage Loans") with
original terms to stated maturity of not more than 30 years which have the
characteristics described in the Prospectus Supplement.
The Company and SMI specifically covenant to make available on the
Closing Date for sale, transfer and assignment to the Trust, Mortgage Loans
having the characteristics described in the Prospectus Supplement; provided,
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however, that there may be immaterial variances from the description of the
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Mortgage Loans in the Prospectus Supplement and the actual Mortgage Loans
delivered on the Closing Date. Upon delivery of the Mortgage Loans to the
Company, the Company will deliver such Mortgage Loans to the Trust.
Registration Statement: References in the Agreement (as defined
below) to the Registration Statement shall be deemed to include registration
statement no. 333-35370.
Aggregate Scheduled Principal Balance of Mortgage Loans:
Approximately $740,000,000 (as of the Cut-off Date), including approximately
$374,857,362 of fixed-rate Mortgage Loans and approximately $189,227,908 of
Variable Rate Mortgage Loans. In addition, approximately $ 175,914,731 will be
deposited into the Pre-Funding Account.
Cut-Off Date: As of the close of business June 1, 2000.
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Terms of the Certificates:
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Initial Proposed
Series 2000-2 Principal Pass-Through Ratings by CUSIP Number Sale of the
Designation Amount Rate S&P and Fitch Certificates
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Class AF-1 124,170,000 %(2) AAA/AAA 805564 FT 3 (1)
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Class AF-2 63,243,000 7.965% AAA/AAA 805564 FU 0 (1)
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Class AF-3 74,120,000 8.051% AAA/AAA 805564 FV 8 (1)
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Class AF-4 64,425,000 8.234% AAA/AAA 805564 FW 6 (1)
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Class AF-5 52,732,000 8.483% AAA/AAA 805564 FX 4 (1)
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Class AF-6 48,998,000 7.971% AAA/AAA 805564 FY2 (1)
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Class MF-1 26,949,000 8.370% AA/AA 805564 FZ 9 (1)
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Class MF-2 13,964,000 8.664% A/A 805564 GA 3 (1)
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Class BF-1 12,005,000 8.700% BBB/BBB 805564 GB 1 (1)
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Class BF-2 9,554,202 8.700% BB/BB 805564 GC 9 (1)
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Class AV-1 209,767,000 %(2) AAA/AAA 805564 GD 7 (1)
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Class MV-1 16,251,000 %(2) AA/AA 805564 GE 5 (1)
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Class MV-2 12,000,000 %(2) A/A 805564 GF 2 (1)
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Class BV-1 6,126,000 %(2) BBB/BBB 805564 GG 0 (1)
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Class BV-2 5,875,798 %(2) BB/BB 805564 GH 8 (1)
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Class A-IO (7) 6.000% AAAr/AAA 805564 GJ 4 (1)
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Class PF-1 N/A N/A (5) N/A (6)
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Class PV-1 N/A N/A (5) N/A (6)
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Class C N/A N/A (5) N/A (6)
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Class R N/A N/A (5) N/A (6)
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(1) The Underwritten Certificates will be purchased by the Underwriters from
the Company and will be offered by the Underwriters to the public from time
to time in negotiated transactions or otherwise at varying prices to be
determined at the time of sale.
(2) On each Distribution Date, the Variable Rate Pass-Through Rates per annum
will equal the least of: (i) One Month LIBOR plus the related spread; (ii)
the weighted Average of (A) in the case of the Class AF-1 Certificates, the
maximum lifetime Mortgage Interest on the Mortgage Loans in the Fixed Rate
Group and, (B) in the case of the Class AV-1, MV-1 and BV-1 Certificates,
the maximum lifetime Mortgage Interest Rates on the Mortgage Loans in the
Variable Rate Group, in each case less the Servicing Fee Rate, the Master
Servicing Fee Rate, the A-IO-I or A-IO-II Adjusted Rate (in each case as
defined in the Trust Agreement), as applicable, and, with respect to each
PMI Mortgage Loan, the PMI Premium Rate (as defined in the Trust
Agreement); and (iii) the applicable Available Funds Cap (as further
described in the Prospectus Supplement).
(3) On any Distribution Date, the Pass-Through Rates for the Class AF-2, Class
AF-3, Class AF-4, Class AF-5, Class AF-6, Class MF-1, Class MF-2, and Class
BF-1 will equal the lesser of (i) the Pass-Through Rate set forth above
(subject, in the case of the AF-5, MF-1 and MF-2 Certificates, to a 0.50%
increase for any Distribution Date after the Initial Optional Redemption
Date) and (ii) the Group I Net Rate (as defined in the Trust Agreement).
(4) The Applicable Spread for these Classes are subject to adjustment on or
after the Step-Up Date, as further described in the Prospectus Supplement.
(5) No ratings have been requested by the Underwriters for the Class PF-1,
Class PV-1, Class C and Class R Certificates.
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(6) The Class PF-1, Class PV-1, Class C and Class R Certificates will be sold
to the Company in a privately negotiated transaction.
(7) The Class A-IO Certificates are not entitled to distributions of principal
but are entitled to distributions of interest calculated on the basis of a
notional balance (as further described in the Prospectus Supplement)
initially equal to $120,000,000.
Underwritten Certificates Ratings: It is agreed that as a further
condition of the Underwriters' obligation to purchase the Underwritten
Certificates, the ratings indicated above by the Rating Agencies on the
Underwritten Certificates shall not have been rescinded and there shall not have
occurred any downgrading, or public notification of a possible downgrading or
public notice of a possible change, without indication of direction, in the
ratings accorded the Underwritten Certificates.
Mortgage Loans: Mortgage Loans having the approximate characteristics
described in the Prospectus Supplement with the final schedule attached as
Schedule I to the Trust Agreement.
Principal and Interest Distribution Dates: Each Distribution Date
shall be the 25th day of each month, or if such day is not a business day, the
next succeeding business day, commencing in July 2000.
REMIC Election: One or more elections will be made to treat the
Mortgage Loans and related assets of the Trust as a real estate mortgage
investment conduit (the "REMIC"). The Underwritten Certificates and the Class C
Certificates will be designated as "regular interests" in the REMIC. The Class
R Certificates will be designated as the "residual interest" in the REMIC.
Purchase Price: The Underwriters hereby agree to purchase each Class
of Underwritten Securities from the Company at the applicable purchase price set
forth below, plus, in the case of the Class AF-1, Class AF-2, Class AF-3, Class
AF-4, Class AF-5, Class AF-6, Class MF-1, Class MF-2, and Class BF-1
Certificates, accrued interest at the applicable Pass-Through Rate from the
close of business on June 1 through the Closing Date. Each such purchase price
is expressed as a percentage of the initial principal amount of the related
Mortgage Loan pool.
Purchase Price
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Class AF-1 99.85000%
Class AF-2 99.79980%
Class AF-3 99.76790%
Class AF-4 99.72380%
Class AF-5 99.64870%
Class AF-6 99.72120%
Class MF-1 99.64970%
Class MF-2 99.54600%
Class BF-1 94.80000%
Class AV-1 99.80000%
Class MV-1 99.65000%
Class MV-2 99.55000%
Class BV-1 99.40000%
Class A-IO 9.12620%
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Each of the Underwriters agrees, severally and not jointly, subject to the
terms and conditions contained herein and in the Standard Terms to Underwriting
Agreement (June 1997 Edition), to purchase the principal balances of the Classes
of Certificates specified opposite its name below:
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Xxxxxxx Xxxxx,
Greenwich Xxxxxx, Prudential
Series 2000-2 Banc of America Capital Xxxxxx & Xxxxx Securities Banc One Capital
Designation Securities LLC Markets, Inc Incorporated Incorporated Markets, Inc.
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Class AF-1 27,938,250 27,938,250 24,834,000 24,834,000 18,625,500
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Class AF-2 14,229,675 14,229,675 12,648,600 12,648,600 9,486,450
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Class AF-3 16,677,000 16,677,000 14,824,000 14,824,000 11,118,000
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Class AF-4 14,455,125 14,455,125 12,849,000 12,849,000 9,636,750
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Class AF-5 11,864,700 11,864,700 10,546,400 10,546,400 7,909,800
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Class AF-6 11,024,550 11,024,550 9,799,600 9,799,600 7,349,700
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Class MF-1 6,063,525 6,063,525 5,389,800 5,389,800 4,042,350
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Class MF-2 3,141,900 3,141,900 2,792,800 2,792,800 2,094,600
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Class BF-1 2,701,125 2,701,125 2,401,000 2,401,000 1,800,750
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Class AV-1 47,197,575 47,197,575 41,953,400 41,953,400 31,465,050
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Class MV-1 3,656,475 3,656,475 3,250,200 3,250,200 2,437,650
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Class MV-2 2,700,000 2,700,000 2,400,000 2,400,000 1,800,000
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Class BV-1 1,378,350 1,378,350 1,225,200 1,225,200 918,900
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Class A-IO 120,000,000 N/A N/A N/A N/A
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Closing Date and Location: 10:00 a.m. Eastern Time on or June 14,
2000, at the offices of McGuire, Woods, Battle & Xxxxxx LLP, One Xxxxx Center,
000 X. Xxxx Xxxxxx, Xxxxxxxx, XX 00000. The Company will deliver the
Underwritten Certificates in book-entry form only through the same day funds
settlement system of the relevant Depositories, and the Class C and Class R
Certificates in certificated, fully registered form on or about June 14, 2000.
Due Diligence: At any time prior to the Closing Date, the
Underwriters have the right to inspect the Mortgage Loan files, the related
mortgaged properties and the loan origination procedures to ensure conformity
with the Prospectus and the Prospectus Supplement.
Controlling Agreement: This Underwriting Agreement, together with the
Standard Terms to Underwriting Agreement (June 1997 Edition) (together, the
"Agreement"), completely sets forth the agreements between the Company and SMI
and the Underwriters and fully supersedes all prior agreements, both written and
oral, relating to the issuance of the Underwritten Certificates and all matters
set forth herein. Capitalized terms used herein and not otherwise defined
herein shall have the meanings assigned to such terms in the Agreement.
Notwithstanding the foregoing, the Standard Terms are hereby amended for
purposes of the Agreement such that there shall be added to the final sentence
of Section 1(ii) thereof the words", the Trustee, DTC," immediately following
the phrase "any Credit Enhancer" therein.
Information Provided by the Underwriters: It is understood and agreed
that the information set forth under the heading "Underwriting" in the
Prospectus Supplement and the sentence regarding the Underwriters's intention to
establish a market in the Underwritten Certificates on the inside front Cover
Page of the Prospectus Supplement is the only information furnished by the
Underwriters to the Company for inclusion in the Registration Statement and the
Final Prospectus.
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Collateral Term Sheets, Structural Term Sheets and Computational
Materials: The Underwriters hereby represent and warrant that (i) a hard copy
of the information provided by the Underwriters to the Company in electronic
form and attached hereto as Exhibit A, if any, constitutes all "Collateral Term
Sheets" or "Structural Term Sheets" (that are required to be filed with the
Commission within two business days of first use under the terms of the Public
Securities Association letter) disseminated by the Underwriters to investors in
connection with the Underwritten Certificates and (ii) a hard copy of the
information provided by the Underwriters to the Company and attached hereto as
Exhibit B, if any, constitutes all "Computational Materials" disseminated by the
Underwriters in connection with the Underwritten Certificates.
Trustee: Bankers Trust Company will act as Trustee of the Trust.
Blue Sky Qualifications: The Underwriters specify, and the parties
intend to qualify the Underwritten Certificates in, no jurisdictions pursuant to
the Agreement.
State Law Tax Opinion: At Closing, the Underwriters shall have
received from Xxxxx Xxxxxxxxxx, LLP, an opinion dated the Closing Date and
satisfactory in form and substance to the Underwriters, as to the tax treatment
of the Certificates under California law.
Applicable Law: THE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAWS.
Notices: All communications hereunder, if sent to the Underwriters,
will be mailed, delivered or telegraphed and confirmed to Banc of America
Securities LLC; 000 Xxxxx Xxxxx Xxxxxx, 00/xx/ Xxxxx; Xxxxxxxxx, Xxxxx Xxxxxxxx
00000.
* * * * *
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The Underwriters agree, subject to the terms and provisions of the
Agreement, a copy of which is attached, and which is incorporated by reference
herein in its entirety and made a part hereof to the same extent as if such
provisions had been set forth in full herein, to purchase the Underwritten
Certificates.
BANC OF AMERICA SECURITIES LLC
on behalf of the Underwriters
By: /s/ Xxxxxxx Xxxxxx
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Name: Xxxxxxx Xxxxxx
Title: Principal
Accepted and Acknowledged
As of the Date First Above
Written:
SAXON ASSET SECURITIES COMPANY
By: /s/ Xxxxxxx X. Xxxxx
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Name: Xxxxxxx X. Xxxxx
Title: Senior Vice President
SAXON MORTGAGE, INC.
By: /s/ Xxxxxxx X. Xxxxx
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Name: Xxxxxxx X. Xxxxx
Title: Senior Vice President
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