EXHIBIT 1.1
XXXXXXX XXXXX MORTGAGE INVESTORS TRUST
MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2002-HE1
TERMS AGREEMENT
Dated: December 4, 2002
To: Xxxxxxx Xxxxx Mortgage Investors, Inc.
Re: Underwriting Agreement, by and between Xxxxxxx Lynch, Pierce, Xxxxxx &
Xxxxx Incorporated ("Xxxxxxx Xxxxx") and Xxxxxxx Xxxxx Mortgage
Investors, Inc., dated as of December 4, 2002 (the "Underwriting
Agreement")
Ladies and Gentlemen:
The undersigned, (the "Representative") acting on behalf of the
underwriters (including ourselves) named below (such underwriters being herein
called the "Underwriters"), understands that Xxxxxxx Xxxxx Mortgage Investors,
Inc., a New York corporation (the "Company"), proposes to issue and sell
approximately $779,254,150 original principal amount of Mortgage Loan
Asset-Backed Certificates, Series 2002-HE1 (the "Certificates") to be issued
under a Trust Agreement, dated as of November 1, 2002, among the Company, as
depositor, Xxxxx Fargo Bank Minnesota, N.A., as securities administrator and
HSBC Bank USA, as trustee (the "Trust Agreement"). The terms of the Certificates
are summarized below and are more fully described in the Company's Prospectus
Supplement and Prospectus (collectively, the "Prospectus") prepared with respect
to the Certificates.
All the provisions (including defined terms) contained in the
Underwriting Agreement are incorporated by reference herein in their entirety
and shall be deemed to be part of this Terms Agreement to the same extent as if
such provisions had been set forth in full herein. MLPFS agrees to be bound by
all of the terms and conditions of the Underwriting Agreement, as modified by
this Terms Agreement. Terms not otherwise defined herein shall have the meaning
set forth in the Prospectus.
The Closing Time referred to in Section 2 of the Underwriting Agreement
shall be 10:00 a.m., New York City time, on December 6, 2002. Subject to the
terms and conditions set forth or incorporated by reference herein, the Company
hereby agrees to sell and the Underwriters, severally and not jointly, agree to
purchase the original principal amounts of the Certificates set forth in the
table below under the title "Terms of the Certificates and Underwriting
Compensation" at the purchase prices set forth below.
The Underwriters will offer the Certificates for sale upon the terms
and conditions set forth in the Prospectus.
Subject to the terms and conditions set forth or incorporated by
reference herein, the Underwriters will pay for the Certificates at the time and
place and in the manner set forth in the Underwriting Agreement.
Series Designation: Mortgage Loan Asset-Backed Certificates, Series
2002-HE1
Underwriters: MLPFS, Bank of America Securities LLC ("Bank of
America") and Countrywide Securities Corporation
("Countrywide").
Terms of the Certificates and Underwriting Compensation:
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PRINCIPAL
PRINCIPAL AMOUNT TO BE
AMOUNT TO BE PURCHASED BY PRINCIPAL AMOUNT
PURCHASED BY BANK OF TO BE PURCHASED PASS-THROUGH UNDERWRITING
CLASSES XXXXXXX XXXXX(1) AMERICA(1) BY COUNTRYWIDE(1) RATE PRICE TO PUBLIC DISCOUNT
------------------------------------------------------------------------------------------------------------------------
A-1 $571,825,083 $15,048,029 $15,048,029 (2) 100.00000% 0.240%
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A-2 $ 90,345,057 $ 2,377,502 $ 2,377,502 (2) 100.00000% 0.240%
------------------------------------------------------------------------------------------------------------------------
M-1 $ 31,620,489 $ 832,118 $ 832,118 (2) 99.54619% 0.250%
------------------------------------------------------------------------------------------------------------------------
M-2 $ 26,040,403 $ 685,274 $ 685,274 (2) 100.00000% 0.355%
------------------------------------------------------------------------------------------------------------------------
B $ 20,460,316 $ 538,429 $ 538,429 (2) 100.00000% 0.440%
------------------------------------------------------------------------------------------------------------------------
R $ 100 0 0 (2) 100.00000% 0.000%
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Total $740,291,448 $19,481,351 $19,481,351
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(1) Approximate. Subject to permitted variance in each case of plus or minus
10%.
(2) Adjusts monthly, as described in the Prospectus Supplement.
Selling Concession and Reallowance Discount:
The Underwriters will initially offer the Certificates to certain
dealers at such price less a selling concession not to exceed the
percentage of the certificate denomination set forth below, and the
Underwriters may allow, and such dealers may reallow a reallowance
discount not to exceed the percentage of the certificate denomination
set forth below.
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CLASS SELLING CONCESSION REALLOWANCE DISCOUNT
-----------------------------------------------------------------------------------------------------
A-1 0.144% 0.072%
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A-2 0.144% 0.072%
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M-1 0.150% 0.075%
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M-2 0.213% 0.107%
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B 0.264% 0.132%
-----------------------------------------------------------------------------------------------------
R 0.000% 0.000%
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Certificate Rating: Aaa by Xxxxx'x Investors Service
("Moody's") and AAA by Standard &
Poor's, a division of The XxXxxx-Xxxx
Companies, Inc. ("S&P")
and Fitch, Inc. ("Fitch") on the Class
A Certificates and the Class R
Certificate.
Aa2 by Moody's and AA+ by S&P and Fitch
on the Class M-1 Certificates.
A2 by Moody's and AA- by S&P and Fitch
on the Class M-2 Certificates.
Baa2 by Moody's, A- by S&P and BBB by
Fitch on the Class B Certificates.
REMIC Election: Upper-tier REMIC and lower-tier REMIC.
Credit Enhancement: Primary Mortgage Insurance, Excess
Interest; Overcollateralization;
Subordination.
Cut-off Date: The Cut-off Date is November 1, 2002.
Distribution Date: The 25th day of each month (or, if such
25th day is not a business day, the
business day immediately following)
commencing December 2002.
Purchase Price: The Purchase Price for the Certificates
to be paid by the Underwriters will be
99.9806% of the aggregate principal
balance of the Certificates as of the
Closing Date less an underwriting
discount of 0.25%.
Return of Purchase Price: In the event that the Underwriters pay
the Purchase Price to the Company and
the Certificates are not issued to the
Underwriters on the same date, the
Company agrees to return the Purchase
Price to the Underwriters by 5:00 p.m.
on that day.
Underwriting Commission: Notwithstanding anything to the contrary
in the Underwriting Agreement, no
additional underwriting commission shall
be payable by the Company to the
Underwriters in connection with the
purchase of the Certificates.
Closing Date and Location: December 6, 2002 at the offices of
Xxxxxx, Xxxxx & Xxxxxxx LLP, New York,
New York.
Please confirm your agreement by having an authorized Officer sign a
copy of this Agreement in the space set forth below and returning a signed copy
to us.
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX
INCORPORATED, as Representative acting
on behalf of the Underwriters
By:____________________________________
Name: Xxxxxxx Xxxxxx
Title: Authorized Signatory
ACCEPTED:
XXXXXXX XXXXX MORTGAGE INVESTORS,
INC.
By:_______________________
Name: Xxxxxxx Xxxxxx
Title: President
