GE CAPITAL MORTGAGE SERVICES, INC.
REMIC MULTI-CLASS PASS-THROUGH CERTIFICATES
SERIES 1998-21
TERMS AGREEMENT
(to Underwriting Agreement,
dated January 22, 1998,
between the Company and the Underwriter)
GE Capital Mortgage Services, Inc. New York, New York
Three Executive Campus November 20, 0000
Xxxxxx Xxxx, XX 00000
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated
(the "Underwriter") agrees, subject to the terms and provisions
herein and of the captioned Underwriting Agreement (the
"Underwriting Agreement"), to purchase the Classes of Series
1998-21 Certificates specified in Section 2(a) hereof (the
"Offered Certificates"). This Terms Agreement supplements and
modifies the Underwriting Agreement solely as it relates to the
purchase and sale of the Offered Certificates described below.
The Series 1998-2 Certificates are registered with the Securities
and Exchange Commission by means of an effective Registration
Statement (No. 333-51151). Capitalized terms used and not defined
herein have the meanings given them in the Underwriting
Agreement.
Section 1. The Mortgage Pool: The Series 1998-21
Certificates shall evidence the entire beneficial ownership
interest in a mortgage pool (the "Mortgage Pool") of
conventional, fixed-rate, first-lien, fully-amortizing, one- to
four-family residential mortgage loans (the "Mortgage Loans")
having the following characteristics as of November 1, 1998 (the
"Cut-off Date"):
(a) Aggregate Principal Amount of the Mortgage Pool:
$522,102,682 aggregate principal balance as of the Cut-off Date,
subject to a permitted variance such that the aggregate original
Certificate Principal Balance will be not less than $494,791,700
or greater than $546,875,000.
(b) Original Terms to Maturity: The original term to
maturity of substantially all of the Mortgage Loans included in
the Mortgage Pool shall be between 20 and 30 years.
Section 2. The Certificates: The Offered Certificates shall
be issued as follows:
(a) Classes: The Offered Certificates shall be issued with
the following Class designations, interest rates and principal
balances, subject in the aggregate to the variance referred to in
Section 1(a):
Class
Principal Interest Purchase Price
Class Balance Rate Percentage
----- ------- ---- ----------
Class A1 $334,182,000 6.25% 99.64060%
Class A2 854,000 6.25% 99.64060%
Class A3 50,066,432 6.25% 99.64060%
Class A4 1,500,000 6.50% 99.64060%
Class A5 5,729,387 6.50% 99.64060%
Class A6 1,583,333 (1) 99.64060%
Class A7 527,778 (1) 99.64060%
Class A8 4,854,400 6.00% 99.64060%
Class A9 263,889 0.00% 99.64060%
Class A10 11,630,769 6.50% 99.64060%
Class A11 465,231 0.00% 99.64060%
Class A12 76,250,000 6.25% 99.64060%
Class A13 12,757,000 6.25% 99.64060%
Class R 100 6.25% 99.64060%
----------------
(1) Interest will accrue on the Class A6 and Class A7
Certificates at the respective rates described in the
Prospectus.
(b) The Offered Certificates shall have such other
characteristics as described in the related Prospectus.
Section 3. Purchase Price: The Purchase Price for each
Class of the Offered Certificates shall be the Class Purchase
Price Percentage therefor (as set forth in Section 2(a) above) of
the initial Class Certificate Principal Balance thereof plus
accrued interest at the initial interest rate per annum from and
including the Cut-off Date up to, but not including, November 25,
1998 (the "Closing Date").
Section 4. Required Ratings: The Offered Certificates,
other than the Class A7, Class A9 and Class A11 Certificates,
shall have received Required Ratings of at least "AAA" from Fitch
IBCA, Inc. ("Fitch") and Standard & Poor's Rating Services, a
division of The XxXxxx-Xxxx Companies, Inc. ("S&P"),
respectively. The Class A7, Class A9 and Class A11 Certificates
shall have received Required Ratings of at least "AAA" by Fitch
and "AAAr" by S&P.
Section 5. Tax Treatment: One or more elections will be
made to treat the assets of the Trust Fund as a REMIC.
2
If the foregoing is in accordance with your
understanding of our agreement, please sign and return to the
undersigned a counterpart hereof, whereupon this letter and your
acceptance shall represent a binding agreement between the
Underwriter and the Company.
Very truly yours,
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX
INCORPORATED
By:___________________________________
Name:
Title:
The foregoing Agreement is
hereby confirmed and accepted
as of the date hereof.
GE CAPITAL MORTGAGE SERVICES, INC.
By:_______________________________
Name:
Title:
