EXECUTION
GE CAPITAL MORTGAGE SERVICES, INC.
REMIC MULTI-CLASS PASS-THROUGH CERTIFICATES
SERIES 1996-16
TERMS AGREEMENT
(to Underwriting Agreement
dated May 22, 1996,
between the Company and the Underwriter)
GE Capital Mortgage Services, Inc. New York, New York
Three Executive Campus November 21, ▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
▇▇▇▇▇▇ Brothers Inc. (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 1996-16 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 1996-16 Certificates are
registered with the Securities and Exchange Commission by means
of an effective Registration Statement (No. 333-3038).
Capitalized terms used and not defined herein have the meanings
given them in the Underwriting Agreement.
Section 1. The Mortgage Pool: The Series 1996-16
Certificates shall evidence the entire beneficial ownership
interest in a mortgage pool (the "Mortgage Pool") of
conventional, fixed rate, fully amortizing one- to four-family
residential mortgage loans (the "Mortgage Loans") having the
following characteristics as of November 1, 1996 (the "Cut-off
Date"):
(a) Aggregate Principal Amount of the Mortgage Pool:
$201,459,310 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 $195,000,000 or greater than $205,000,000.
(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
Purchase
Class Principal Interest Price
Balance Rate Percentage
Class A1 $27,430,000.00 6.875O% 99.609400%
Class A2 38,884,000.00 7.1250% 99.609400
Class A3 6,188,000.00 9.0000% 99.609400
Class A4 33,710,000.00 7.3750% 99.609400
Class A6 15,035,000.00 (1) 99.609400
Class A7 2,425,000.00 (1) 99.609400
Class A8 7,004,800.00 7.7500% 99.609400
Class M 3,525,000.00 7.7500% 100.000000
Class B1 2,519,000.00 7.7500% 96.593750
Class B2 2,518,000.00 7.7500% 93.984380
Class R 100.00 7.7500% 99.609400
Class RL 100.00 7.7500% 99.609400
Class PO 204,611.76 0.0000% 62.500000
(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 27,
1996 (the "Closing Date").
Section 4. Required Ratings: The Offered Certificates,
other than the Class A7, Class PO, Class M, Class B1 and Class B2
Certificates, shall have received Required Ratings of "AAA" from
Fitch Investors Service, L.P. ("Fitch") and Standard & Poor's
Rating Services, a division of The ▇▇▇▇▇▇-▇▇▇▇ Companies, Inc.
("S&P"). The Class PO and Class A7 Certificates shall have
received Required Ratings of at least "AAA" from Fitch and "AAAr"
from S&P. The Class M, Class B1 and Class B2
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Certificates shall have received Required Ratings of at least
"AA", "A" and "BBB", respectively, from Fitch.
Section 5. Tax Treatment: One or more elections will
be made to treat the assets of the Trust Fund as a REMIC.
3
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,
▇▇▇▇▇▇ BROTHERS INC.
By:____________________________
Name:
Title:
The foregoing Agreement is hereby confirmed and accepted as of
the date hereof.
GE CAPITAL MORTGAGE SERVICES, INC.
By:____________________________
Name:
Title: