SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) September 23, 1999
GE CAPITAL MORTGAGE FUNDING CORPORATION
(as Seller under the Pooling and Servicing Agreement,
dated as of September 1, 1999,
providing for the issuance of REMIC Home Equity Loan
Pass-Through Certificates, Series 1999-HE3)
GE Capital Mortgage Funding Corporation
(Exact name of registrant as specified in its charter)
Delaware 33-5042 52-2134173
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
Three Executive Campus
Suite W602
Cherry Hill, New Jersey 08002
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code (609) 661-5881
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
General.
On September 23, 1999, GE Capital Mortgage Funding Corporation offered to
investors certain classes of its REMIC Home Equity Loan Pass-Through
Certificates, Series 1999-HE3 (the "Certificates") evidencing beneficial
ownership interests in a trust fund (the "Trust Fund"). The assets of the Trust
Fund consist primarily of a pool (the "Mortgage Pool") of closed-end,
fixed-rate, home equity loans (the "Mortgage Loans") secured by first or second
liens on one- to four-family residential properties (the "Mortgaged
Properties"). Capitalized terms used herein and not otherwise defined shall have
the meanings assigned to them in the Prospectus dated September 21, 1999 as
supplemented by the Prospectus Supplement dated September 21, 1999.
The original principal balance of each class of the Certificates is as follows:
Class A1 $137,500,000.00
Class A2 $44,000,000.00
Class A3 $83,000,000.00
Class A4 $52,000,000.00
Class A5 $23,441,000.00
Class A6 $37,771,000.00
Class R1 $500.00
Class R2 $500.00
Class M $13,025,000.00
Class B1 $11,939,000.00
Class B2 $10,420,000.00
------------------------
Total $413,097,000.00
------------------------
(1) The Class S has an original Notional Principal Balance equal to
$434,153,613.29
The initial Junior Percentage and Senior Percentage of the Certificates are
approximately 13.00% and 87.00% respectively. The Bankruptcy Loss Amount, the
Fraud Loss Amount and the Special Hazard Loss Amount, as of the initial issuance
of the Certificates, are approximately $75,000, $4,341,536 and $2,170,768
respectively, representing approximately 0.02%, 1.00% and .50%, respectively, of
the aggregate Principal Balances of the Mortgage Loans as of September 1, 1999
(the "Cut-off Date").
The Mortgage Loans accrue interest on a simple interest basis (the "Simple
Interest Mortgage Loans") or a self-amortizing basis (the "Self-Amortizing
Mortgage Loans"). Approximately 72.66% of the Mortgage Loans are Self-Amortizing
Mortgage Loans, and approximately 27.34% of the Mortgage Loans are Simple
Interest Mortgage Loans, in each case by Principal Balance as of the Cut-off
Date.
The Mortgage Rates borne by the Mortgage Loans range from approximately
6.85% to 15.44% per annum, and the weighted average of the Mortgage Rates as of
the Cut-off Date for the Mortgage Loans is approximately 9.69% per annum. The
original principal balances of the Mortgage Loans range from approximately
$2,663.00 to $497,000.00 and, as of the Cut-off Date, the average Principal
Balance of the Mortgage Loans is approximately $68,478.49 after application of
payments made before the Cut-off Date. The month and year of the earliest
origination date of any Mortgage Loan is March 1991, and the month and year of
the latest scheduled maturity date of any such Mortgage Loan is September 2029.
All of the Mortgage Loans have original terms to maturity of approximately 5
years to 30 years. The remaining months to stated maturity for the Mortgage
Loans as of the Cut-off Date range from approximately 29 months to 360 months
and the weighted average remaining months to stated maturity of the Mortgage
Loans as of the Cut-off Date is approximately 192 months. Approximately 46.66%
of the Mortgage Loans are Balloon Loans. The weighted average remaining term to
stated maturity of the Balloon Loans is approximately 147 months. The Home
Equity Loan-to-Value Ratios of the Mortgage Loans at origination range from
approximately 2.04% to 95.38%, and the weighted average of the Home Equity
Loan-to-Value Ratios of the Mortgage Loans at origination is approximately
68.22%. The Second-Lien Combined Loan-to-Value Ratio of the second-lien Mortgage
Loans at origination range from approximately 18.59% to 102.31%, and the
weighted average of the Second-Lien Combined Loan-to-Value Ratios of such
Mortgage Loans at origination is approximately 86.93%. No more than
approximately 0.50% (by Principal Balance as of the Cut-off Date) of the
Mortgage Loans will be secured by Mortgaged Properties located in any one postal
zip code area.
No more than approximately 4.00% (by Principal Balance as of the Cut-off
Date) of the Mortgage Loans have been originated under GE Capital Mortgage
Services, Inc.'s no income verification programs.
Set forth below is a description of certain additional characteristics of
the Mortgage Pool and the Mortgage Loans included therein (the sum of the
balances may not equal 100% due to rounding) :
Cut-off Date Principal Balances
- -----------------------------------------------------------------------------------------------------------
Range of Cut-off Date Number of Cut-off Date Percentage of Cut-off Date
Principal Balances Mortgage Loans Principal Balance Aggregate Principal Balance
- -----------------------------------------------------------------------------------------------------------
$ 00.00 - 10,000.00 62 $505,918.22 0.12%
10,000.01 - 20,000.00 480 $7,654,390.76 1.76%
20,000.01 - 30,000.00 682 $17,442,399.93 4.02%
30,000.01 - 40,000.00 736 $25,992,788.81 5.99%
40,000.01 - 50,000.00 728 $32,997,220.15 7.60%
50,000.01 - 60,000.00 662 $36,449,243.61 8.40%
60,000.01 - 75,000.00 846 $57,124,898.17 13.16%
75,000.01 - 100,000.00 996 $86,768,608.55 19.99%
100,000.01 - 150,000.00 800 $96,156,651.74 22.15%
150,000.01 - 200,000.00 215 $36,878,707.50 8.49%
200,000.01 - 250,000.00 68 $15,093,078.06 3.48%
250,000.01 - 300,000.00 33 $9,124,043.16 2.10%
300,000.01 - 350,000.00 11 $3,604,688.22 0.83%
350,000.01 - 400,000.00 17 $6,560,804.92 1.51%
400,000.01 and Above 4 $1,800,171.49 0.41%
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Total 6,340 $434,153,613.29 100.00%
==========================================================================
Mortgage Rates
- ------------------------------ -------------------------- --------------------------- -----------------------------------
Number of Cut-off Date Percentage of Cut-off Date
Range of Mortgage Rates Mortgage Loans Principal Balance Aggregate Principal Balance
- ------------------------------ -------------------------- --------------------------- -----------------------------------
0.000 - 7.500% 61 $4,264,834.85 0.98%
7.501 - 8.000 481 $31,227,298.25 7.19%
8.001 - 8.500 751 $55,892,678.17 12.87%
8.501 - 9.000 1,075 $77,439,114.98 17.84%
9.001 - 9.500 821 $58,098,351.91 13.38%
9.501 - 10.000 886 $64,837,408.23 14.93%
10.001 - 10.500 453 $32,238,431.81 7.43%
10.501 - 11.000 578 $40,250,321.72 9.27%
11.001 - 11.500 401 $25,536,355.63 5.88%
11.501 - 12.000 401 $21,391,391.42 4.93%
12.001 - 12.500 186 $10,029,443.87 2.31%
12.501 - 13.000 131 $6,758,075.97 1.56%
13.001 - 13.500 32 $1,973,629.80 0.45%
13.501 - 14.000 34 $2,131,521.97 0.49%
14.001 - 14.500 15 $449,983.75 0.10%
14.501 - 15.000 22 $1,232,671.58 0.28%
14.001 - 14.500 12 $402,099.38 0.09%
-------------------------- --------------------------- -----------------------------------
Total 6,340 $434,153,613.29 100.00%
========================== =========================== ===================================
Geographic Distribution of Mortgaged Properties
- ---------------------------- --------------------- ---------------------- ------------------------------------
Number of Cut-off Date Percentage of Cut-off Date Aggregate
State Mortgage Loans Principal Balance Principal Balance
- ---------------------------- --------------------- ---------------------- ------------------------------------
Alabama 92 $5,133,515.04 1.18%
Arizona 23 $1,141,314.31 0.26%
Arkansas 11 $671,165.39 0.15%
California 356 $32,532,621.47 7.49%
Colorado 72 $5,327,237.67 1.23%
Connecticut 259 $20,726,326.94 4.77%
Delaware 56 $4,116,606.66 0.95%
District of Columbia 84 $6,690,025.67 1.54%
Florida 994 $52,174,874.95 12.02%
Georgia 164 $11,209,493.76 2.58%
Hawaii 2 $79,903.07 0.02%
Idaho 6 $362,036.98 0.08%
Illinois 410 $29,618,176.84 6.82%
Indiana 121 $5,966,522.93 1.37%
Iowa 5 $203,998.94 0.05%
Kansas 6 $396,432.76 0.09%
Kentucky 30 $1,928,871.80 0.44%
Louisiana 22 $1,433,808.78 0.33%
Maine 7 $594,031.33 0.14%
Maryland 362 $26,589,908.88 6.12%
Massachusetts 347 $27,352,396.64 6.30%
Michigan 125 $7,918,551.30 1.82%
Minnesota 20 $1,277,968.59 0.29%
Mississippi 19 $833,344.22 0.19%
Missouri 106 $5,371,057.79 1.24%
Montana 1 $15,992.28 0.01%
Nebraska 21 $1,333,173.33 0.31%
Nevada 13 $467,134.69 0.11%
New Hampshire 35 $2,566,382.43 0.59%
New Jersey 345 $28,075,938.51 6.47%
New Mexico 31 $1,880,484.41 0.43%
New York 585 $46,082,090.20 10.61%
North Carolina 233 $13,198,719.61 3.04%
North Dakota 1 $94,951.67 0.02%
Ohio 155 $10,063,837.13 2.32%
Oklahoma 15 $775,918.10 0.18%
Oregon 61 $4,616,029.60 1.06%
Pennsylvania 338 $20,815,939.83 4.79%
Rhode Island 175 $12,889,926.16 2.97%
South Carolina 226 $12,228,316.34 2.82%
Tennessee 112 $7,662,167.41 1.76%
Texas 28 $2,626,222.82 0.60%
Utah 22 $1,631,843.59 0.38%
Vermont 5 $314,448.46 0.07%
Virginia 132 $8,399,658.98 1.93%
Washington 80 $7,100,854.47 1.64%
West Virginia 8 $491,921.46 0.11%
Wisconsin 15 $951,322.31 0.22%
Wyoming 4 $220,146.79 0.05%
--------------------- ---------------------- ------------------------------------
Total 6340 $434,153,613.29 100.00%
===================== ====================== ====================================
Priority of Mortgage Loans
- ------------------------------------ -------------------------- --------------------------- ------------------------------------
Number of Cut-off Date Percentage of Cut-off Date
Priority Mortgage Loans Principal Balance Aggregate Principal Balance
- ------------------------------------ -------------------------- --------------------------- ------------------------------------
First-priority 4,845 $376,289,699.45 86.67%
Second-priority 1,495 $57,863,913.84 13.33%
-------------------------- --------------------------- ------------------------------------
Total 6,340 $434,153,613.29 100.00%
========================== =========================== ====================================
Year of Origination
- ------------------------------------ -------------------------- --------------------------- ------------------------------------
Number of Cut-off Date Percentage of Cut-off Date
Year of Origination Mortgage Loans Principal Balance Aggregate Principal Balance
- ------------------------------------ -------------------------- --------------------------- ------------------------------------
1991 14 $1,323,486.78 0.30%
1992 295 $21,821,649.62 5.03%
1993 1,296 $84,336,601.10 19.43%
1994 973 $61,263,747.76 14.11%
1997 3 $330,110.03 0.08%
1998 61 $4,501,491.11 1.04%
1999 3,698 $260,576,526.89 60.02%
-------------------------- --------------------------- ------------------------------------
Total 6,340 $434,153,613.29 100.00%
========================== =========================== ====================================
Months Remaining to Stated Maturity as of the Cut-off Date
- ------------------------------------------------------------------------------------------------------
Number of Months
Remaining to Stated Number of Cut-off Date Percentage of Cut-off Date
Maturity Mortgage Loans Principal Balance Aggregate Principal Balance
- ------------------------------------------------------------------------------------------------------
25 - 36 1 $16,668.84 0.00%
49 - 60 51 $1,159,395.59 0.27%
61 - 72 11 $413,534.56 0.10%
73 - 84 48 $2,132,790.47 0.49%
85 - 96 139 $10,820,680.67 2.49%
97 - 108 726 $46,857,188.34 10.79%
109 - 120 1,334 $81,926,668.94 18.87%
121 - 132 61 $3,804,848.57 0.88%
133 - 144 2 $66,374.65 0.02%
145 - 156 13 $940,636.60 0.22%
157 - 168 144 $8,954,484.38 2.06%
169 - 180 2,211 $157,442,648.43 36.26%
181 - 192 13 $700,966.21 0.16%
229 - 240 776 $41,616,231.29 9.59%
277 - 288 1 $94,349.66 0.02%
289 - 300 24 $1,875,866.19 0.43%
337 - 348 2 $118,640.00 0.03%
349 - 361 783 $75,211,639.90 17.32%
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Total 6,340 $434,153,613.29 100.00%
===========================================================================
Types of Mortgaged Properties (1)
- ------------------------------------ -------------------------- --------------------------- ------------------------------------
Number of Cut-off Date Percentage of Cut-off Date
Property Type Mortgage Loans Principal Balance Aggregate Principal Balance
- ------------------------------------ -------------------------- --------------------------- ------------------------------------
Single-family detached 5,287 $367,726,891.18 84.70%
Single-family attached 364 $20,916,347.00 4.82%
2 - 4 family 399 $29,259,293.81 6.74%
Condominiums 125 $6,910,804.49 1.59%
Cooperative 4 $514,480.38 0.12%
Manufactured housing 161 $8,825,796.43 2.03%
-------------------------- --------------------------- ------------------------------------
Total 6,340 $434,153,613.29 100.00%
========================== =========================== ====================================
Use of Mortgaged Properties (1)(2)
- ------------------------------------ -------------------------- --------------------------- ------------------------------------
Number of Cut-off Date Percentage of Cut-off Date
Use Mortgage Loans Principal Balance Aggregate Principal Balance
- ------------------------------------ -------------------------- --------------------------- ------------------------------------
Primary residence 5,994 $414,739,076.00 95.53%
Non-primary residence(2) 346 $19,414,537.29 4.47%
-------------------------- --------------------------- ------------------------------------
Total 6,340 $434,153,613.29 100.00%
========================== =========================== ====================================
(1) Based on information supplied by the Mortgagor in the loan application.
(2) The Company believes that the majority of the non-primary residences are
investment properties.
Second-Lien
Combined Loan-to-Value Ratio (1) (2)
(for Second-Lien Mortgage Loans)
- ------------------------------------ -------------------------- --------------------------- ------------------------------------
Range of Combined Number of Mortgage Loans Cut-off Date Percentage of Cut-off Date
Loan-to-Value Ratios in a Second-Lien Position Principal Balance Aggregate Principal Balance in a
Second-Lien Position
- ------------------------------------ -------------------------- --------------------------- ------------------------------------
10.01 - 20.00 2 $19,744.91 0.03%
20.01 - 30.00 5 $100,201.25 0.17%
30.01 - 40.00 4 $101,374.58 0.18%
40.01 - 50.00 17 $737,470.77 1.27%
50.01 - 60.00 35 $1,477,049.43 2.55%
60.01 - 70.00 72 $3,918,973.97 6.77%
70.01 - 75.00 88 $3,727,202.79 6.44%
75.01 - 80.00 188 $7,239,993.26 12.51%
80.01 - 85.00 157 $7,751,868.65 13.40%
85.01 - 90.00 160 $6,343,913.08 10.96%
90.01 - 95.00 142 $5,203,033.36 8.99%
95.01 - 102.31 625 $21,243,087.79 36.71%
-------------------------- --------------------------- ------------------------------------
Total 1,495 $57,863,913.84 100.00%
========================== =========================== ====================================
(1) The "Second-Lien Combined Loan-to-Value Ratio" of a second-lien Mortgage
Loan is the ratio (expressed as a percentage) that the sum of the original
principal balance of such Mortgage Loan and the then current principal
balance of the related first-lien mortgage loan, bears to the appraised
value of the related Mortgaged Property at the time such Mortgage Loan was
originated (or if the proceeds of such Mortgage Loan were used to refinance
an existing mortgage, the appraised value based on a recent appraisal).
(2) The weighted average of the Second-Lien Combined Loan-to-Value Ratio for
second-lien Mortgage Loans is approximately 86.93%.
Home Equity Loan-to-Value Ratio (1) (2)
- ------------------------------------ -------------------------- --------------------------- ------------------------------------
Range of Home Equity Number of Mortgage Loans Cut-off Date Percentage of Cut-off Date
Loan-to-Value Ratios Principal Balance Aggregate Principal Balance
- ------------------------------------ -------------------------- --------------------------- ------------------------------------
0.00 - 10.00% 155 $3,372,302.40 0.78%
10.01 - 20.00 843 $29,382,144.95 6.77%
20.01 - 30.00 430 $17,763,706.40 4.09%
30.01 - 40.00 224 $11,594,748.57 2.67%
40.01 - 50.00 242 $13,557,235.49 3.12%
50.01 - 60.00 367 $23,298,260.60 5.37%
60.01 - 70.00 807 $57,023,424.23 13.13%
70.01 - 75.00 642 $50,976,954.06 11.74%
75.01 - 80.00 1,539 $125,172,669.80 28.83%
80.01 - 85.00 669 $57,779,449.36 13.31%
85.00 - 90.00 421 $44,066,120.19 10.15%
90.01 - 95.38 1 $166,597.24 0.04%
-------------------------- --------------------------- ------------------------------------
Total 6,340 $434,153,613.29 100.00%
========================== =========================== ====================================
(1) The "Home Equity Loan-to-Value Ratio" of a Mortgage Loan is the ratio
(expressed as a percentage) that the original principal balance of such
Mortgage Loan bears to the appraised value (or, with respect to
approximately 61.18% of the Mortgage Loans, the lesser of (i) the appraised
value or (ii) the selling price) of the related Mortgaged Property at the
time such Mortgage Loan was originated (or if the proceeds of such Mortgage
Loan were used to refinance an existing mortgage, the appraised value based
on a recent appraisal).
(2) The weighted average of the Home Equity Loan-to-Value Ratios for the
Mortgage Loans is approximately 68.22%. The weighted average of the Home
Equity Loan-to-Value Ratios for the first-lien Mortgage Loans and the
second-lien Mortgage Loans is approximately 75.28% and 22.30%,
respectively.
Home Equity Loan Ratio (1) (2)
(for second-lien Mortgage Loans)
- ------------------------------------ -------------------------- --------------------------- ------------------------------------
Percentage of Cut-off Date
Number of Aggregate Principal Balance of
Range of Home Mortgage Loans in a Cut-off Date Mortgage Loans in a Second-Lien
Equity Loan Ratios Second-Lien Position Principal Balance Position
- ------------------------------------ -------------------------- --------------------------- ------------------------------------
0 - 10.00% 57 $980,969.65 1.70%
10.01 - 20.00 729 $22,151,516.20 38.28%
20.01 - 30.00 440 $18,806,490.73 32.50%
30.01 - 40.00 160 $9,014,515.26 15.58%
40.01 - 50.00 63 $4,586,546.57 7.93%
50.01 - 60.00 19 $923,355.35 1.60%
60.01 - 70.00 14 $874,303.56 1.51%
70.01 - 75.00 3 $82,218.80 0.14%
75.01 - 80.00 4 $200,285.37 0.35%
80.01 - 85.01 4 $186,648.86 0.32%
85.01 - 90.00 1 $29,689.47 0.05%
90.01 - 92.28 1 $27,374.02 0.05%
========================== =========================== ====================================
Total: 1495 $57,863,913.84 100.00%
========================== =========================== ====================================
(1) The "Home Equity Loan Ratio" of a second-lien Mortgage Loan is the ratio
(expressed as a percentage) that the original principal balance of such
Mortgage Loan bears to the total of the original principal balance of such
Mortgage Loan plus the outstanding amount of the related first-lien
Mortgage Loan at the time such Mortgage Loan was originated.
(2) The weighted average of the Home Equity Loan Ratios of the second-lien
Mortgage Loans is approximately 26.00%.
Loan Type
- ------------------------------------ -------------------------- --------------------------- ------------------------------------
Number of Cut-off Date Percentage of Cut-off Date
Type Mortgage Loans Principal Balance Aggregate Principal Balance
- ------------------------------------ -------------------------- --------------------------- ------------------------------------
Fully amortizing 4,044 $231,576,859.20 53.34%
Balloon 2,296 $202,576,754.09 46.66%
-------------------------- --------------------------- ------------------------------------
Total 6,340 $434,153,613.29 100.00%
========================== =========================== ====================================
Months Remaining to Stated Maturity as of the Cut-off Date
(for Balloon Loans)
- ------------------------------ -------------------------- --------------------------- ------------------------------------
Number of Months
Remaining to Number of Percentage of Cut-off Date
Stated Maturity Balloon Mortgage Cut-off Date Aggregate Principal Balance of
as of Cut-off Date Loans Principal Balance Balloon Loans
- ------------------------------ -------------------------- --------------------------- ------------------------------------
24 - 36 1 $16,668.84 0.01%
48 - 60 5 $180,961.54 0.09%
61 - 72 6 $303,988.84 0.15%
73 - 84 31 $1,772,190.49 0.87%
85 - 96 85 $8,264,444.90 4.08%
97 - 108 324 $28,066,368.82 13.85%
109 - 120 586 $48,626,451.19 24.00%
121 - 132 31 $2,444,135.42 1.21%
133 - 180 1,227 $112,901,544.05 55.73%
-------------------------- --------------------------- ------------------------------------
Total 2,296 $202,576,754.09 100.00%
========================== =========================== ====================================
ITEM 7 FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS AND EXHIBITS
1.1 The Underwriting Agreement for the Series 1999-HE3 Certificates dated
September 21, 1999, as modified and supplemented by the related terms
agreement dated September 21, 1999, among GE Capital Mortgage Funding
Corporation, Prudential Securities Incorporated and Greenwich Capital
Markets, Inc.
4.1 The Pooling and Servicing Agreement for the Series 1999-HE3
Certificates dated as of September 1, 1999 among GE Capital Mortgage
Funding Corporation, as seller, GE Capital Mortgage Services, Inc., as
servicer, and Bank One, National Association, as trustee.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
GE Capital Mortgage Funding Corporation
By: /s/ Syed W. Ali
---------------
Name: Syed W. Ali
Title: Vice President
Dated as of September 23, 1999