SAXON ASSET SECURITIES COMPANY
MORTGAGE LOAN ASSET BACKED CERTIFICATES,
SERIES 2000-4
UNDERWRITING AGREEMENT
Dated: December 15, 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 2000-4, 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 PF-1, Class
AV-1, Class MV-1, Class MV-2, Class BV-1, 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 Class MF-1, Class MF-2, Class BF-1,
Class AV-1, Class MV-1, Class MV-2, Class BV-1 and Class A-IO
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 Credit Suisse First Boston Corporation, Banc of America
Securities LLC, Greenwich Capital Markets, Inc. and Chase Securities Inc.
(collectively, the "Underwriters"), and the Underwriters hereby agree to
purchase from the Company, on or about December 20, 2000, the Underwritten
Certificates at the purchase price and on the terms set forth below; provided,
HOWEVER, that the obligations of the Underwriters are subject to: (i) receipt by
the Company of (a) the ratings specified in the table below by ▇▇▇▇▇'▇ Investors
Service ("▇▇▇▇▇'▇"), and Fitch, Inc. ("Fitch" and together with ▇▇▇▇▇'▇, 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 December 1, 2000 by and between the
company and 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 December 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 with original terms to stated
maturity of not more than 30 years which have the characteristics described in
the Prospectus Supplement (the "Mortgage Loans").
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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,
HOWEVER, that there may be immaterial variances from the description of the
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 $324,880,800.57 (as of the Cut-off Date), including approximately
$138,782,102.68 of fixed-rate Mortgage Loans and approximately $186,098,697.89
of Variable Rate Mortgage Loans. In addition, approximately $135,119,199.43 will
be deposited into the Pre-Funding Account.
CUT-OFF DATE: As of the close of business December 1, 2000.
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TERMS OF THE CERTIFICATES:
Series 2000-4 Initial Pass-Through Proposed CUSIP Number Sale of the
Designation Principal Rate Ratings by Certificates
Amount Moody's and
Fitch
----------------------------------------------------------------------------------------------------------------
Class AF-1 $44,600,000 7.07% Aaa/AAA 805564 HC 8 (1)
----------------------------------------------------------------------------------------------------------------
Class AF-2 $37,000,000 6.72%(3) Aaa/AAA 805564 HD 6 (1)
----------------------------------------------------------------------------------------------------------------
Class AF-3 $16,600,000 6.78%(3) Aaa /AAA 805564 HE 4 (1)
----------------------------------------------------------------------------------------------------------------
Class AF-4 $28,800,000 7.03%(3) Aaa /AAA 805564 HF 1 (1)
----------------------------------------------------------------------------------------------------------------
Class AF-5 $14,350,000 7.34%(3) Aaa /AAA 805564 HG 9 (1)
----------------------------------------------------------------------------------------------------------------
Class AF-6 $15,700,000 6.92%(3) Aaa /AAA 805564 HH 7 (1)
----------------------------------------------------------------------------------------------------------------
Class MF-1 $10,800,000 7.63%(3) Aa2/AA 805564 HJ 3 (1)
----------------------------------------------------------------------------------------------------------------
Class MF-2 $7,650,000 8.08%(3) A2/A 805564 HK 0 (1)
----------------------------------------------------------------------------------------------------------------
Class BF-1 $4,500,000 8.61%(3) Baa2/BBB 805564 HL 8 (1)
----------------------------------------------------------------------------------------------------------------
Class AV-1 $233,100,000 (2)(4) Aaa/AAA 805564 HM 6 (1)
----------------------------------------------------------------------------------------------------------------
Class MV-1 $22,400,000 (2)(4) Aa2/AA 805564 HN 4 (1)
----------------------------------------------------------------------------------------------------------------
Class MV-2 $15,400,000 (2)(4) A2/A 805564 HR 5 (1)
----------------------------------------------------------------------------------------------------------------
Class BV-1 $9,100,000 (2)(4) Baa2/BBB 805564 HP 9 (1)
----------------------------------------------------------------------------------------------------------------
Class A-IO (7) 6.75% Aaa AAA 805564 HQ 7 (1)
----------------------------------------------------------------------------------------------------------------
Class PF-1 N/A N/A (5) N/A (6)
----------------------------------------------------------------------------------------------------------------
Class PV-1 N/A N/A (5) N/A (6)
----------------------------------------------------------------------------------------------------------------
Class C N/A N/A (5) N/A (6)
----------------------------------------------------------------------------------------------------------------
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 the maximum lifetime Mortgage
Interest Rates on the Mortgage Loans in the Variable Rate Group, less
the Servicing Fee Rate, the Master Servicing Fee Rate, the A-IO-II
Adjusted Rate (as defined in the Trust Agreement), as applicable; 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-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 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 is 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.
(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 each entitled to distributions of interest calculated
on the basis of a notional balance (as further described in the
Prospectus Supplement) initially equal to $76,700,000.
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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 January 2001.
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
PF-1, Class PV-1 and 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 Certificates 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 December 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
--------------
Class AF-1 99.885%
Class AF-2 99.819%
Class AF-3 99.789%
Class AF-4 99.737%
Class AF-5 99.622%
Class AF-6 99.639%
Class MF-1 99.541%
Class MF-2 99.376%
Class BF-1 99.169%
Class AV-1 99.810%
Class MV-1 99.550%
Class MV-2 99.400%
Class BV-1 99.200%
Class A-IO 11.668%
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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Greenwich
Series 2000-4 Credit Suisse First Banc of America Chase Capital
Designation Boston Securities LLC Securities Inc. Markets, Inc.
-----------------------------------------------------------------------------------------------------------
Class AF-1 $ 11,150,000 $ 11,150,000 $ 11,150,000 $ 11,150,000
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Class AF-2 $ 9,250,000 $ 9,250,000 $ 9,250,000 $ 9,250,000
-----------------------------------------------------------------------------------------------------------
Class AF-3 $ 4,150,000 $ 4,150,000 $ 4,150,000 $ 4,150,000
-----------------------------------------------------------------------------------------------------------
Class AF-4 $ 7,200,000 $ 7,200,000 $ 7,200,000 $ 7,200,000
-----------------------------------------------------------------------------------------------------------
Class AF-5 $ 3,587,500 $ 3,587,500 3,587,500 $ 3,587,500
-----------------------------------------------------------------------------------------------------------
Class AF-6 $ 3,925,000 $ 3,925,000 $ 3,925,000 $ 3,925,000
-----------------------------------------------------------------------------------------------------------
Class MF-1 $ 2,700,000 $ 2,700,000 $ 2,700,000 $ 2,700,000
-----------------------------------------------------------------------------------------------------------
Class MF-2 $ 1,912,500 $ 1,912,500 $ 1,912,500 $ 1,912,500
-----------------------------------------------------------------------------------------------------------
Class BF-1 $ 1,125,000 $ 1,125,000 1,125,000 $ 1,125,000
-----------------------------------------------------------------------------------------------------------
Class AV-1 $ 58,275,000 $ 58,275,000 $ 58,275,000 $ 58,275,000
-----------------------------------------------------------------------------------------------------------
Class MV-1 $ 5,600,000 $ 5,600,000 $ 5,600,000 $ 5,600,000
-----------------------------------------------------------------------------------------------------------
Class MV-2 $ 3,850,000 $ 3,850,000 $ 3,850,000 $ 3,850,000
-----------------------------------------------------------------------------------------------------------
Class BV-1 $ 2,275,000 $ 2,275,000 $ 2,275,000 $ 2,275,000
-----------------------------------------------------------------------------------------------------------
Class A-IO $ 76,700,000 -- -- --
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CLOSING DATE AND LOCATION: 10:00 a.m. Eastern Time on or about
December 20, 2000, at the offices of McGuireWoods LLP, One ▇▇▇▇▇ Center, ▇▇▇ ▇.
▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇. 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 PF-1, Class PV-1, Class C and
Class R Certificates in certificated, fully registered form on or about December
20, 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 as follows: (i) 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 and (ii) the phrase "upon
notice of the Underwriters" in the last paragraph of Section 6(i) thereof shall
be amended to read "upon notice to the Underwriters".
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.
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
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filed with the Commission within two business days of first use under the terms
of the response of the staff of the Commission to a No-Action request from the
Public Securities Association (made generally available March 9, 1995))
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 ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ 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, shall be mailed, delivered or telegraphed and confirmed to Credit
Suisse First Boston Corporation, Eleven ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇
▇▇▇▇▇-▇▇▇▇.
* * * * *
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The Underwriters agree, subject to the terms and provisions of
the Underwriting Agreement (June 1997 edition), 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.
CREDIT SUISSE FIRST BOSTON CORPORATION
on behalf of the Underwriters
By: /S/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
-----------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Director
Accepted and Acknowledged
As of the Date First Above
Written:
SAXON ASSET SECURITIES COMPANY
By: /S/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
-----------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Senior Vice President
SAXON MORTGAGE, INC.
By: /S/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
-----------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Senior Vice President
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