SAXON ASSET SECURITIES COMPANY
MORTGAGE LOAN ASSET BACKED CERTIFICATES,
SERIES 2001-1
UNDERWRITING AGREEMENT
Dated: March 23, 2001
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 2001-1, 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 Banc of America Securities LLC, Credit Suisse First Boston
Corporation, Greenwich Capital Markets, Inc. and ▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ &
▇▇▇▇▇ Incorporated. (collectively, the "Underwriters"), and the Underwriters
hereby agree to purchase from the Company, on or about March 29, 2001, 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 March 23, 2001 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 March 1, 2001 (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").
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 $390,234,844.73 (as of the Cut-off Date), including approximately
$226,606,949.70 of fixed-rate Mortgage Loans and approximately $163,627,895 of
Variable Rate Mortgage Loans. In addition, approximately $99,765,155.27 will be
deposited into the Pre-Funding Account.
CUT-OFF DATE: As of the close of business March 1, 2001.
2
TERMS OF THE CERTIFICATES:
----------------------------------------------------------------------------------------------------------------
Series 2001-1 Initial Pass-Through Proposed CUSIP Number Sale of the
Designation Principal Rate Ratings by Certificates
Amount ▇▇▇▇▇'▇ and
Fitch
----------------------------------------------------------------------------------------------------------------
Class AF-1 $ 79,000,000 5.448%(2) Aaa/AAA 805564 HS 3 (5)
----------------------------------------------------------------------------------------------------------------
Class AF-2 $ 41,500,000 5.417%(2) Aaa/AAA 805564 HT 1 (5)
----------------------------------------------------------------------------------------------------------------
Class AF-3 $ 39,000,000 5.752%(2) Aaa/AAA 805564 HU 8 (5)
----------------------------------------------------------------------------------------------------------------
Class AF-4 $ 36,400,000 6.310%(2) Aaa/AAA 805564 HV 6 (5)
----------------------------------------------------------------------------------------------------------------
Class AF-5 $ 22,900,000 6.853%(2) Aaa/AAA 805564 HW 4 (5)
----------------------------------------------------------------------------------------------------------------
Class AF-6 $ 28,000,000 6.270%(2) Aaa/AAA 805564 HX 2 (5)
----------------------------------------------------------------------------------------------------------------
Class MF-1 $ 16,800,000 6.926%(2) Aa2/AA 805564 HY 0 (5)
----------------------------------------------------------------------------------------------------------------
Class MF-2 $ 11,900,000 7.371%(2) A2/A 805564 HZ 7 (5)
----------------------------------------------------------------------------------------------------------------
Class BF-1 $ 6,300,000 7.815%(2) Baa2/BBB 805564 JA 0 (5)
----------------------------------------------------------------------------------------------------------------
Class AV-1 $176,400,000 (3) Aaa/AAA 805564 JB 8 (5)
----------------------------------------------------------------------------------------------------------------
Class MV-1 $ 16,275,000 (3) Aa2/AA 805564 JC 6 (5)
----------------------------------------------------------------------------------------------------------------
Class MV-2 $ 11,550,000 (3) A2/A 805564 JD 4 (5)
----------------------------------------------------------------------------------------------------------------
Class BV-1 $ 5,775,000 (3) Baa2/BBB 805564 JE 2 (5)
----------------------------------------------------------------------------------------------------------------
Class A-IO (1) 6.00% Aaa AAA 805564 JF 9 (5)
----------------------------------------------------------------------------------------------------------------
Class PF-1 N/A N/A (4) N/A (6)
----------------------------------------------------------------------------------------------------------------
Class PV-1 N/A N/A (4) N/A (6)
----------------------------------------------------------------------------------------------------------------
Class C N/A N/A (4) N/A (6)
----------------------------------------------------------------------------------------------------------------
Class R N/A N/A (4) N/A (6)
----------------------------------------------------------------------------------------------------------------
-------------------------
(1) 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 $107,040,000.
(2) 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).
(3) 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
(subject, in the case of the AV-1, MV-1 and MV-2 certificates, to an
increase for any Distribution Date after the initial Optional Redemption
Date, as set forth in the Trust Agreement); (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).
(4) No ratings have been requested by the Underwriters for the Class PF-1,
Class PV-1, Class C and Class R Certificates.
(5) 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.
(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.
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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 April 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 March 1, 2001 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 99.87940%
Class AF-2 99.83900%
Class AF-3 99.80900%
Class AF-4 99.75770%
Class AF-5 99.65510%
Class AF-6 99.67990%
Class MF-1 99.54680%
Class MF-2 99.39860%
Class BF-1 99.19870%
Class AV-1 99.80000%
Class MV-1 99.55000%
Class MV-2 99.40000%
Class BV-1 99.20000%
Class A-IO 11.31915%
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:
4
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Greenwich ▇▇▇▇▇▇▇ ▇▇▇▇▇,
Series ▇▇▇▇-▇ ▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇ Credit Suisse Capital ▇▇▇▇▇▇, ▇▇▇▇▇▇ &
Designation Securities LLC First Boston Markets, Inc. ▇▇▇▇▇ Incorporated
--------------------------------------------------------------------------------------------------------
Class AF-1 22,375,000 18,875,000 18,875,000 18,875,000
--------------------------------------------------------------------------------------------------------
Class AF-2 11,725,000 9,925,000 9,925,000 9,925,000
--------------------------------------------------------------------------------------------------------
Class AF-3 11,100,000 9,300,000 9,300,000 9,300,000
--------------------------------------------------------------------------------------------------------
Class AF-4 9,775,000 8,275,000 8,275,000 8,275,000
--------------------------------------------------------------------------------------------------------
Class AF-5 6,532,000 5,456,000 5,456,000 5,456,000
--------------------------------------------------------------------------------------------------------
Class AF-6 7,750,000 6,750,000 6,750,000 6,750,000
--------------------------------------------------------------------------------------------------------
Class MF-1 4,749,000 4,017,000 4,017,000 4,017,000
--------------------------------------------------------------------------------------------------------
Class MF-2 3,363,500 2,845,500 2,845,500 2,845,500
--------------------------------------------------------------------------------------------------------
Class BF-1 1,780,500 1,506,500 1,506,500 1,506,500
--------------------------------------------------------------------------------------------------------
Class AV-1 49,014,750 42,461,750 42,461,750 42,461,750
--------------------------------------------------------------------------------------------------------
Class MV-1 4,521,750 3,917,750 3,917,750 3,917,750
--------------------------------------------------------------------------------------------------------
Class MV-2 3,209,250 2,780,250 2,780,250 2,780,250
--------------------------------------------------------------------------------------------------------
Class BV-1 1,604,250 1,390,250 1,390,250 1,390,250
--------------------------------------------------------------------------------------------------------
Class A-IO 111,680,000 -- -- --
--------------------------------------------------------------------------------------------------------
CLOSING DATE AND LOCATION: 10:00 a.m. Eastern Time on or about
March 29, 2001, 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 March
29, 2001.
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 filed with the
5
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 Banc of
America Securities LLC; ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇; ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇
▇▇▇▇▇▇▇▇ ▇▇▇▇▇.
* * * * *
6
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.
BANC OF AMERICA SECURITIES LLC
on behalf of the Underwriters
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
-------------------------
Name: ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Title:
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
7
SAXON ASSET SECURITIES TRUST 2001-1
MORTGAGE LOAN ASSET BACKED CERTIFICATES
SERIES 2001-1
TRUST AGREEMENT
dated as of March 1, 2001
among
SAXON ASSET SECURITIES COMPANY,
as Depositor
SAXON MORTGAGE, INC.,
as Master Servicer
and
BANKERS TRUST COMPANY,
as Trustee
TABLE OF CONTENTS
Article I Definitions...................................................... 8
Section 1.01. Standard Terms; Section References....................... 8
Section 1.02. Defined Terms............................................ 9
Article II Formation of Trust; Conveyance of Mortgage Loans................ 38
Section 2.01. Conveyance of Mortgage Loans............................. 38
Section 2.02. Purchase of Subsequent Mortgage Loans.................... 38
Section 2.03. Pre-Funding Account and Capitalized Interest Account..... 41
Article III Remitting to Certificateholders................................ 41
Section 3.01. (Reserved)............................................... 41
Section 3.02. (Reserved)............................................... 41
Section 3.03. Certificate Distributions................................ 41
Section 3.04. Reports to the Depositor and the Trustee:................ 46
Section 3.05. Reports by or on Behalf of the Master Servicer........... 47
Section 3.06. Advance Facility......................................... 48
Article IV The Certificates................................................ 49
Section 4.01. The Certificates......................................... 49
Section 4.02. Denominations............................................ 50
Article V Miscellaneous Provisions......................................... 50
Section 5.01. Request for Opinions..................................... 50
Section 5.02. Form of Certificates; Schedules and Exhibits;
Governing Law............................................ 50
Section 5.03. Optional Termination..................................... 51
Section 5.04. Master Servicer; Certificate Registrar, Paying Agent
and Calculation Agent.................................... 51
i
Schedule I: The Mortgage Loans: A. Group I Mortgage Loans
B. Group II Mortgage Loans
Schedule II: Sales Agreement
Schedule III: Servicing Agreement
Schedule IV: Form of Subsequent Sales Agreement
Exhibit AF: 1: Form of Class AF-1 Certificate
2: Form of Class AF-2 Certificate
3: Form of Class AF-3 Certificate
4: Form of Class AF-4 Certificate
5: Form of Class AF-5 Certificate
6: Form of Class AF-6 Certificate
Exhibit MF: 1: Form of Class MF-1 Certificate
2: Form of Class MF-2 Certificate
Exhibit BF: 1: Form of Class BF-1 Certificate
Exhibit AV: 1: Form of Class AV-1 Certificate
Exhibit MV: 1: Form of Class MV-1 Certificate
2: Form of Class MV-2 Certificate
Exhibit BV: 1: Form of Class BV-1 Certificate
Exhibit A-IO: 1: Form of Class A-IO Certificate
Exhibit P: 1: Form of Class P-1 Certificate
2: Form of Class P-2 Certificate
Exhibit C: Form of Class C Certificate
Exhibit R: Form of Class R Certificate
Exhibit I: Reportable Exceptions
Exhibit J: Form of Remittance Agency Agreement
Exhibit K: Form of Security Release Certification
ii
