EX-99 3 we716508-exh.txt COLLATERAL TERM SHEETS EXHIBIT 99 PRELIMINARY TERM SHEET WELLS FARGO MORTGAGE BACKED SECURITIES $ 378,110,000 (APPROXIMATE) WFMBS 2003-G MORTGAGE PASS-THROUGH CERTIFICATES WELLS FARGO ASSET SECURITIES CORPORATION SELLER WELLS FARGO HOME MORTGAGE, INC. SERVICER WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION MASTER SERVICER The following is a preliminary Term Sheet. All terms and statements are subject to change. [CITIGROUP LOGO] JUNE 11, 2003 The information herein is furnished to you solely by Citigroup Global Markets Inc. ("CGM") and not by the Issuer of the securities or any of its affiliates. GCM is acting as Underwriter and not acting as agent for the Issuer or its affiliates in connection with the securities. The information herein with respect to the mortgage loans is based upon information provided by the Issuer and its affiliates. Neither the Issuer nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein. The information herein is preliminary and supersedes any prior information and will be superseded by the prospectus supplement or Private Placement Memorandum and by any other information subsequently filed with the Securities and Exchange Commission (SEC). All assumptions and information in this report reflect CGM's judgment as of this date and are subject to change. All analyses are based on certain assumptions noted herein and different assumptions could yield substantially different results. You are cautioned that there is no universally accepted method for analyzing financial instruments. You should review the assumptions; there may be differences between these assumptions and your actual business practices. Further, CFM does not guarantee any results and there is no guarantee as to the liquidity of the instruments involved in this analysis. The decision to adopt any strategy remains your responsibility. CGM (or any of its affiliates) or their officers, directors, analysts or employees may have positions in securities, commodities or derivative instruments thereon referred to here, and may, as principal or agent, buy or sell such securities, commodities or derivative instruments. In addition, CGM may make a market in the securities referred to herein. Neither the information nor the assumptions reflected herein should be construed to be, or constitute, an offer to sell or buy or a solicitation of an offer to sell or buy any securities, commodities or derivative instruments mentioned herein. No sale of any securities, commodities or derivative instruments should be consummated without the purchaser first having received a prospectus and, if required prospectus supplement. Finally, CGM has not addressed the legal, accounting and tax implications of the analysis with respect to you, and CGM strongly urges you to seek advice from your counsel, accountant and tax advisor. A final Prospectus, Prospectus Supplement and Private Placement Memorandum may be obtained by contacting CGM's Mortgage Trading Desk at (212) 723-6217. WFMBS 2003-G $ 378,110,000 (APPROXIMATE) --------------------------------------------------------------------------------
STRUCTURE OVERVIEW - OFFERED CERTIFICATES ------------ --------------------- ------------------------ -------------- --------------- --------------------- ------------------- CERTIFICATE SIZE INTEREST ACCRUAL CLASS ($)(1) CERTIFICATE TYPE(2) LOAN TYPE INDEX BASIS RATINGS (3) ------------ --------------------- ------------------------ -------------- --------------- --------------------- ------------------- A-1(5) $368,657,000 Adjustable - Senior 10/1 Hybrid 1 Year CMT 30/360 Aaa/AAA A-IO (6) Adjustable - Senior 10/1 Hybrid 1 Year CMT 30/360 Aaa/AAA A-R $ 50 Adjustable - Senior 10/1 Hybrid 1 Year CMT 30/360 Aaa/AAA A-LR $ 50 Adjustable - Senior 10/1 Hybrid 1 Year CMT 30/360 Aaa/AAA B-1 $ 5,293,000 Adjustable - 10/1 Hybrid 1 Year CMT 30/360 AA Subordinate B-2 $ 1,702,000 Adjustable - 10/1 Hybrid 1 Year CMT 30/360 A Subordinate B-3 $ 945,000 Adjustable - 10/1 Hybrid 1 Year CMT 30/360 BBB Subordinate B-4 $ 567,000 Adjustable - 10/1 Hybrid 1 Year CMT 30/360 BB Subordinate B-5 $ 378,000 Adjustable - 10/1 Hybrid 1 Year CMT 30/360 B Subordinate B-6 $ 567,958 Adjustable - 10/1 Hybrid 1 Year CMT 30/360 NR Subordinate ============ ===================== ======================== ============== =============== ===================== =================== (TABLE CONTINUED) ------------ ---------------------- CLASS CREDIT ENHANCEMENT(4) ------------ ---------------------- A-1(5) 2.50% A-IO N/A A-R N/A A-LR N/A B-1 1.10% B-2 0.65% B-3 0.40% B-4 0.25% B-5 0.15% B-6 0.00% ============ ======================
(1) The Certificates (as described herein) are collateralized by 10/1 Hybrid 1 Year CMT adjustable rate, first-lien residential mortgage loans. Class sizes subject to a +/-5% variance. (2) The Class A-1 will bear interest at a fixed-rate of 4.10% for the first 119 Distribution Dates, afterwards the interest rate will be equal to the weighted average of net mortgage rate. The Class A-IO will receive the excess of net mortgage rate over 4.10% until the 119th Distribution Date. Afterwards, Class A-IO will be terminated. The Class A-R, A-LR, B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates will each bear interest at a variable-rate (the "Pass-Through Rate") equal to the weighted average of net mortgage rates of the mortgage loans. (3) The Class A Certificates will be rated by Moody's and S&P. The Class B Certificates will be rated by S&P only. (4) The credit enhancement levels are preliminary and are subject to change based upon the final pool as of the Cut-Off Date and additional rating agency analysis. (5) Subject to Net Weighted Average Coupon Cap ("Net WAC Cap") equal to the weighted average net mortgage rate of the Mortgage Loans. (6) Notional Amount equals to the Class A-1 balance of $368,657,000. -------------------------------------------------------------------------------- CITIGROUP GLOBAL MARKETS MORTGAGE FINANCE CONTACTS -------------------------------------------------------------------------------- NAME: TELEPHONE: E-MAIL: -------------------------------------------------------------------------------- James De Mare (212) 723-6217 james.p.demare@citigroup.com Managing Director Matthew Cherwin (212) 723-6217 matthew.cherwin@citigroup.com Vice President Pete Steinmetz (212) 723-6391 peter.d.steinmetz@citigroup.com Vice President Arkadiy Yakubov (212) 723-6932 arkadiy.yakubov@citigroup.com Analyst ================================================================================ -------------------------------------------------------------------------------- This Page Must be Accompanied by a Disclaimer. If You Did Not Receive Such a Disclaimer, Please Contact Your Citigroup Global Markets Inc. Financial Advisor Immediately. 2 WFMBS 2003-G $ 378,110,000 (APPROXIMATE) -------------------------------------------------------------------------------- TRANSACTION OVERVIEW OFFERED CERTIFICATES: Approximately $368,657,000 adjustable Class A-1, A-R, A-LR and Notional A-IO Certificates, and approximately $7,940,000 adjustable rate Class B-1, B-2 and B-3 Certificates. The Class B-4, B-5 and B-6 Certificates are not being offered publicly. The Certificates are backed by 10/1 Hybrid 1 Year CMT adjustable-rate first lien prime jumbo mortgage loans. EXPECTED PRICING DATE: TBD CUT-OFF DATE: June 1, 2003 SETTLEMENT DATE: On or about June 27, 2003 1ST DISTRIBUTION DATE: July 25, 2003 SELLER: Wells Fargo Asset Securities Corporation SERVICER: Wells Fargo Home Mortgage, Inc. MASTER SERVICER: Wells Fargo Bank Minnesota, National Association LEAD & SOLE UNDERWRITER: Citigroup Global Markets Inc. TRUSTEE: Wachovia Bank, National Association COLLATERAL: Comprised of adjustable-rate, first lien, relocation and non-relocation mortgage loans, totaling approximately $378,110,000. The mortgage loans are One Year CMT indexed with initial rate adjustments occurring ten years after the date of origination. ("10/1 Hybrid ARMs") STRUCTURE: Senior/Subordinate OFFERED CERTIFICATES: Class A-1, A-IO, A-R, A-LR, B-1, B-2 and B-3 Certificates will be offered. Class B-4, B-5 and B-6 Certificates will be offered privately. INTEREST PAYMENTS: The Class A-1 Certificates will bear interest at a fixed-rate of 4.10% (subject to Net WAC Cap) for the first 119 Distribution Dates, afterwards the interest rate will be equal to the weighted average of net mortgage rate; the Class A-IO will receive the excess of net mortgage rate over 4.10% until the 119th Distribution Date, or sooner in the event the Seller exercises the clean-up call. Afterwards, Class A-IO will be terminated. The Class A-R, Class A-LR, Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates will each bear interest at a variable-rate (the "Pass-Through Rate") equal to the weighted average of net mortgage rates of the mortgage loans. -------------------------------------------------------------------------------- This Page Must be Accompanied by a Disclaimer. If You Did Not Receive Such a Disclaimer, Please Contact Your Citigroup Global Markets Inc. Financial Advisor Immediately. 3 WFMBS 2003-G $ 378,110,000 (APPROXIMATE) -------------------------------------------------------------------------------- TRANSACTION OVERVIEW CREDIT ENHANCEMENT: Credit Enhancement for the Certificates will be provided by a senior/subordinate shifting interest structure. The Class B Certificates are subordinate to and provide credit enhancement for the Class A Certificates. * Subordination: CREDIT ENHANCEMENT CLASS RATINGS LEVELS ----- ------- ----------- Class A Aaa/AAA 2.50% Class B-1 AA 1.10% Class B-2 A 0.65% Class B-3 BBB 0.40% Class B-4 BB 0.25% Class B-5 B 0.15% Class B-6 NR 0.00% PAYMENT PRIORITY: Distributions on the Certificates will be made on the 25th day of each month (or next business day). The payments to the Certificates, to the extent of available funds, will be made according to the following priority: Available Funds: 1. Payment of interest to the holders of the Class A and Class A-IO Certificates in an amount equal to their respective Pass-Through Rates (as described on page 2 hereof); 2. Payment of principal to the holders of the Class A Certificates; and 3. Payment of interest and principal sequentially to the Class B Certificates in order of their numerical class designations, beginning with the Class B-1, so each Class B certificate shall receive (a) The weighted average net mortgage rate of the Mortgage Loans, and (b) Such class' allocable share of principal. ALLOCATION OF LOSSES: Realized Losses on the mortgage loans will be allocated to the Class B certificates in order of their reverse numerical class designations, until the principal balance of each Class B certificate has been reduced to zero. Thereafter, Realized Losses on the mortgage loans will be allocated to the Class A Certificates. -------------------------------------------------------------------------------- This Page Must be Accompanied by a Disclaimer. If You Did Not Receive Such a Disclaimer, Please Contact Your Citigroup Global Markets Inc. Financial Advisor Immediately. 4 WFMBS 2003-G $ 378,110,000 (APPROXIMATE) -------------------------------------------------------------------------------- TRANSACTION OVERVIEW SHIFTING INTEREST: The Senior Certificates will be entitled to receive 100% of the prepayments on the Mortgage Loans until and including June 2008. After such time and provided that (i) the principal balance of the Mortgage Loans 60 days or more delinquent, averaged over the last 6 months, as a percentage of the Current Principal Amount of the Class B Certificates does not exceed 50% and (ii) cumulative realized losses for the Mortgage Loans do not exceed 30%, 35%, 40%, 45% or 50% for each test date, the Class B Certificates will receive increasing portions of unscheduled principal prepayments from the mortgage loans. The prepayment percentages on the Class B Certificates are as follows:
July 2003 - June 2008 0% of their pro rata share July 2008 - June 2009 30% of their pro rata share July 2009 - June 2010 40% of their pro rata share July 2010 - June 2011 60% of their pro rata share July 2011 - June 2012 80% of their pro rata share July 2012 - and after 100% of their pro rata share
In addition, if (i) the Class B percentage increases to more than twice the Class B percentage as of the Cut-Off Date, (ii) the principal balance of the mortgage loans 60 days or more delinquent, averaged over the last 6 months, as a percentage of the current principal balance of the Class B certificates does not exceed 50% and (iii) (a) prior to 3 years, cumulative realized losses on the mortgage loans do not exceed 20% of the original Class B certificate balance, then the Class B certificates will receive 50% of their pro rata share of unscheduled principal prepayments from the mortgage loans or (b) after 3 years, cumulative realized losses on the mortgage loans do not exceed 30% of the original Class B certificate balance, then the Class B certificates will receive 100% of their pro rata share of unscheduled principal prepayments from the mortgage loans. CALL PROVISION: At its option, the Seller may purchase all of the mortgage loans (and properties acquired on behalf of the trust) when the mortgage loans remaining in the trust; as of the last day of the related collection period, have been reduced to less than 10% of the principal balance of the mortgage loans as of the Cut-Off Date. The Class A-1 and Class B Certificates will be redeemed at par plus accrued interest. The A-IO Certificates will not receive any payment, except interest accrued on that Distribution Date, in the event the Seller exercises the clean-up call. DISTRIBUTION DATE: Distribution of principal and interest on the certificates will be made on the 25th day of each month or, if such day is not a business day, on the first business day thereafter commencing in July 2003. -------------------------------------------------------------------------------- This Page Must be Accompanied by a Disclaimer. If You Did Not Receive Such a Disclaimer, Please Contact Your Citigroup Global Markets Inc. Financial Advisor Immediately. 5 WFMBS 2003-G $ 378,110,000 (APPROXIMATE) -------------------------------------------------------------------------------- TRANSACTION OVERVIEW P&I ADVANCES: The Servicer is required to advance delinquent payments of principal and interest on the mortgage loans to the extent such amounts are deemed recoverable. The Trustee will be required to advance to the extent that the Servicer fails in its obligation. The Servicer and/or Trustee are entitled to be reimbursed for these advances, and therefore these advances are not a form of credit enhancement. COMPENSATING INTEREST: The Master Servicer will be obligated to pay an amount generally equal to the lesser of (i) the aggregate Prepayment Interest Shortfall and (ii) the lesser of (x) the product of (a) 1/12th of 0.20% and (b) the aggregate Scheduled Principal Balance of the Mortgage Loans for such Distribution Date and (y) the Available Master Servicing Compensation for such Distribution Date. UNDERWRITING STANDARDS: The Mortgage Loans were underwritten to the guidelines of the originators as more fully described in the prospectus supplement. LEGAL STRUCTURE: Designated portions of the trust will be established as one or more REMICs for federal income tax purposes. ERISA CONSIDERATIONS: The Class A-1, Class A-IO, Class B-1, Class B-2 and Class B-3 Certificates are expected to be ERISA eligible as of the Closing Date. The Class A-R, B-4, Class B-5 and Class B-6 Certificates are NOT expected to be ERISA eligible. However, prospective investors should consult with their counsel with respect to the consequences under ERISA and the Internal Revenue Code of an ERISA Plan's acquisition and ownership of the Offered Certificates. SMMEA CONSIDERATIONS: The Class A-1, Class A-IO, Class A-R, Class A-LR and Class B-1 Certificates are expected to constitute "mortgage related securities" for purposes of the Secondary Mortgage Market Enhancement Act of 1984 (SMMEA)." The Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates will NOT be SMMEA eligible. FORM OF REGISTRATION: The Class A-1, A-IO, B-1, B-2 and B-3 Certificates will be issued in book-entry form through DTC. The Class A-R, B-4, B-5 and B-6 Certificates will be issued in fully registered, certificated form. MINIMUM DENOMINATIONS: The Class A-1 Certificate will be issued with a minimum denomination of $25,000 with incremental denominations of $1,000. The Class A-IO Certificate will be issued with a minimum denomination of at least $10,000,000 with incremental denomination of $1,000. The Class A-R Certificate will be issued in a denomination of $100. The Class B-1, B-2, and B-3 Certificates will be issued with a minimum denomination of $100,000 with incremental denominations of $1,000. The Class B-4, B-5, and B-6 Certificates will be issued with a minimum denomination of $250,000 with incremental denominations of $1,000. * if necessary, in order to aggregate the initial principal balance or notional amount of a class, one certificate of such class will be issued in an incremental denomination of less than shown above. -------------------------------------------------------------------------------- This Page Must be Accompanied by a Disclaimer. If You Did Not Receive Such a Disclaimer, Please Contact Your Citigroup Global Markets Inc. Financial Advisor Immediately. 6 WFMBS 2003-G $ 378,110,000 (APPROXIMATE) COLLATERAL SUMMARY WEIGHTED AVERAGE (IF APPLICABLE) TOLERANCE ----------------- --------- Aggregate Current Principal Balance: $378,110,058 (+/- 5.00%) Current Principal Balance: $ 538,618 (maximum + $25,000) Remaining Term (Stated Method): 359 Months (+/- 2 Months) Months to Next Roll: 120 Months (+/- 3 Months) Gross Margin: 2.750% (+/- 5 bps) Gross Coupon: 5.294% (+/- 10 bps) Pass-Through Rate: 4.909% (+/- 10 bps) Gross Life Cap: 10.294% (+/- 10 bps) Current LTV: 62.000% (maximum + 5%) California Percentage: 51.000% (maximum + 5%) Primary Residence Percentage: 96.000% (minimum - 5%) Cash-Out Refinance Percentage: 13.000% (maximum + 5%) Uninsured > 80% LTV Percentage: 0.000% (maximum + 3%) Interest Only Percentage: 0.000% (maximum + 5%) Borrower FICO: 737 (minimum - 10) ------------------------ * All Numbers are approximate and subject to change -------------------------------------------------------------------------------- This Page Must be Accompanied by a Disclaimer. If You Did Not Receive Such a Disclaimer, Please Contact Your Citigroup Global Markets Inc. Financial Advisor Immediately. 2