10-K 1 sasco02_10k2002.txt FISCAL YEAR ENDED 12/31/02 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K [X] Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the period from January 1, 2002 (Commencement of Operations) to December 31, 2002. [ ] Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to Commission File Number 333-63602-01 STRUCTURED ASSET SECURITIES CORPORATION (Exact name of registrant as specified in its charter) Delaware 74-2440850 (State or other jurisdiction of I.R.S. Employer incorporation or organization) Identification No.) 745 Seventh Avenue New York, NY 10019 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code : (212) 526-7000 Structured Asset Securities Corporation Mortgage Pass-Through Certificates Series 2002-2 (Title of each class of securities covered by this Form) Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X] Documents incorporated by reference: None Structured Asset Securities Corporation Mortgage Pass-Through Certificates Series 2002-2 -------------------------------------------------------- PART I Item 1. Business Omitted. Item 2. Properties Omitted. Item 3. Legal Proceedings The Registrant is not aware of any material legal proceeding with respect to, the Company, the Master Servicer or the Trustee, as related to the Trust. Item 4. Submission of Matters to a Vote of Security Holders No matter was submitted to a vote or consent of holders of each Class of Offered Certificates during the fiscal year covered by this report. PART II Item 5. Market for Registrant's Common Equity and Related Stockholder Matters The Trust does not issue stock. There is currently no established secondary market for the Certificates. As of December 31, 2002, the number of holders of each Class of Offered Certificates was 21. Item 6. Selected Financial Data Omitted. Item 7. Management's Discussion and Analysis of Financial condition and Results of Operations Omitted. Item 8. Financial Statements and Supplementary Data Omitted. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure There was no change of accountants or disagreement with accountants on any matter of accounting principles or practices or financial disclosure. -2- PART III Item 10. Directors and Executive Officers of the Registrant Omitted. Item 11. Executive Compensation Omitted. Item 12. Security Ownership of Certain Beneficial Owners and Management Omitted. Item 13. Certain Relationships and Related Transactions No reportable transactions have occurred. PART IV Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K (a) The following documents are filed as part of this report: (1) Financial Statements: Omitted. (2) Financial Statement Schedules: Omitted. (3) Exhibits: Annual Independent Accountant's Servicing Reports concerning servicing activities for the year ended December 31, 2002, filed as Exhibit 99.1 hereto. Report of Management as to Compliance with Minimum Servicing Standards for the year ended December 31, 2002, filed as Exhibit 99.2 herto. Annual Statement of Compliance under the Pooling and Servicing Agreement for the year ended December 31, 2002, filed as Exhibit 99.3 hereto. (b) Reports on Form 8-K: The following Current Reports on Form 8-K were filed by the Registrant during the last quarter of 2002. Current Reports on Form 8-K, dated October 25, 2002, November 26, 2002, and December 26, 2002, were filed for the purpose of filing the Monthly Statement sent to the Holders of the Offered Certificates for payments made on the same dates. The items reported in such Current Report were Item 5 (Other Events). (c) Exhibits to this report are listed in Item (14)(a)(3) above. -3- Structured Asset Securities Corporation Mortgage Pass-Through Certificates Series 2002-2 ----------------------------------------------------------------------------- SIGNATURE Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: March 31, 2003 By: Aurora Loan Services Inc., as Master Servicer /s/ E. Todd Whittemore -------------------------------------- Name: E. Todd Whittemore Title: Executive Vice President -4- Certification Structured Asset Securities Corporation Mortgage Pass-Through Certificates Series 2002-2 I, E. Todd Whittemore, Executive Vice President of Aurora Loan Services Inc., certify that: 1. I have reviewed this annual report on Form 10-K, and all reports on Form 8-K containing distribution or servicing reports filed in respect of periods included in the year covered by this annual report, of Structured Asset Securities Corporation, Mortgage Pass-Through Certificates Series 2002-2; 2. Based on my knowledge, the information in these reports, taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading as of the last day of the period covered by this annual report; 3. Based on my knowledge, the distribution or servicing information required to be provided to the trustee by the servicer under the pooling and servicing, or similar, agreement, for inclusion in these reports is included in these reports; 4. I am responsible for reviewing the activities performed by the servicer under the pooling and servicing, or similar, agreement and based upon my knowledge and the annual compliance review required under that agreement, and except as disclosed in the reports, the servicer has fulfilled its obligations under that agreement; and 5. The reports disclose all significant deficiencies relating to the servicer's compliance with the minimum servicing standards based upon the report provided by an independent public accountant, after conducting a review in compliance with the Uniform Single Attestation Program for Mortgage Bankers or similar procedure, as set forth in the pooling and servicing, or similar, agreement, that is included in these reports. In giving the certifications above, I have reasonably relied on information provided to me by the following unaffiliated parties: JPMorgan Chase Bank, as Trustee; Greenpoint Mortgage Funding, Inc., as Servicer; National City Mortgage Co., as Servicer; IndyMac Bank, F.S.B., as Servicer; Golden First Mortgage Corp., as Servicer, and Suntrust Mortgage, Inc., as Servicer. Date: March 31, 2003 /s/ E. Todd Whittemore ------------------------ Executive Vice President Aurora Loan Services Inc. -5- SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT TO SECTION 15(D) OF THE ACT BY REGISTRANTS WHICH HAVE NOT REGISTERED SECURITIES PURSUANT TO SECTION 12 OF THE ACT. The registrant has not sent an annual report or proxy material to its security holders. The registrant will not be sending an annual report or proxy material to its security holders subsequent to the filing of this form. -6- EXHIBIT INDEX Exhibit Description 99.1 Annual Independent Accountant's Servicing Report for the year ended December 31, 2002 a) Aurora Loan Services Inc., as Servicer b) Greenpoint Mortgage Funding, Inc., as Servicer * c) National City Mortgage Co., as Servicer d) IndyMac Bank, F.S.B., as Servicer * e) Golden First Mortgage Corp., as Servicer f) Suntrust Mortgage, Inc., as Servicer * 99.2 Report of Management as to compliance with minimum servicing standards for the year ended December 31, 2002. a) Aurora Loan Services Inc., as Servicer b) Greenpoint Mortgage Funding, Inc., as Servicer * c) National City Mortgage Co., as Servicer d) IndyMac Bank, F.S.B., as Servicer * e) Golden First Mortgage Corp., as Servicer f) Suntrust Mortgage, Inc., as Servicer * 99.3 Annual Statement of Compliance for the year ended December 31, 2002. a) Aurora Loan Services Inc., as Master Servicer * Such document (i) is not filed herewith since such document was not received by the reporting person at least three (3) business days prior to the due date covered by this report and (ii) will be included in an amendment to this report on Form 10-K/A to be filed within 30 days of the reporting person's receipt of such document. The reporting person does not have knowledge of the contents of any such report. -7- EXHIBIT 99.1 Annual Independent Accountant's Servicing Report for the year ended December 31, 2002 -8- Ernst & Young LLP Suite 3300 170 17th Street Denver, Colorado 80202-5663 Telephone: (720) 931-4000 Facsimile: (720) 931-4444 Report on Management's Assetion on Compliance with Minimum Servicing Standards Set Forth in the Uniform Single Attestation Program for Mortgage Bankers REPORT OF INDEPENDENT ACCOUNTANTS Board of Directors Aurora Loan Services Inc. We have examined management's assertion, included in the accompanying report titled Report of Management, that Aurora Loan Services Inc. (the Company) complied with the minimum servicing standards set forth in the Mortgage Bankers Association of America's Uniform Single Attestation Program for Mortgage Bankers (USAP) during the year ended November 30, 2002. Management is responsible for the Company's compliance with those requirements. Our responsibility is to express an opinion on management's assertion about the Company's compliance based on our examination. Our examination was made in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Company's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Company's compliance with specified requirements. In our opinion, management's assertion, that Aurora Loan Services Inc. complied with the aforementioned requirements during the year ended November 30, 2002, is fairly stated, in all material respects. The report is intended solely for the ifnormation and use of the board of directors, management, and the Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Government National Mortgage Association, and the Company's private investors and is not intended to be and should not be used by anyone other than these specified parties. By: /s/ Ernst & Young LLP --------------------------- March 14, 2003 -9- Ernst & Young LLP 1300 Huntington Building 925 Yuclid Avenue Cleveland, Ohio 44115-1405 Telephone: (216) 861-5000 www.ey.com Report on Management's Assertion on Compliance with Minimum Servicing Standards Set Forth in the Uniform Single Attestation Program for Mortgage Bankers REPORT OF INDEPENDENT ACCOUNTANTS Board of Directors National City Mortgage Co. We have examined management's assertion, included in the accompanying Report of Management, that National City Mortgage Co. (NCM) complied with the minimum servicing standards set forth in the Mortgage Bankers Association of America's Uniform Single Attestation Program for Mortgage Bankers (USAP) for the year ended December 31, 2002. Management is responsible for NCM's compliance with those requirements. Our responsibility is to express an opinion on management's assertions about NCM's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about NCM's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on NCM's compliance with specified requirements. In our opinion, management's assertion, that NCM complied with the aforementioned requirements for the year ended December 31, 2002, is fairly stated, in all material respects. This report is intended solely for the information and use of the audit committee, management, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Government National Mortgage Association, and NCM's private investors and is not intended to be and should not be used by anyone other than these specified parties. By: /s/ Ernst & Young LLP -------------------------- February 24, 2003 -10- Deloitte & Touche, LLP 150 College Land East 3rd Tower Princeton, New Jersey 08540 Telephone: (609) 514-1000 Facsimile: (609) 514-3603 www.deloitte.com INDEPENDENT ACCOUNTANTS' REPORT Golden First Mortgage Corp. Melville, New York We have examined management's assertion about Golden First Mortgage Corp's (the "Company") compliance with the minimum servicing standards identified in the Mortgage Bankers Association of America's Uniform Single Attestation Program for Mortgage Bankers (USAP) as of and for the year ended July 31, 2002, included in the accompanying management assertion. Management is responsible for the Company's compliance with those minimum servicing standards. Our responsibility is to express an opinion on management's assertion about the Company's compliance based on our examination. Our examination was made in accordance with standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Company's compliance with the minimum servicing standards and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Company's compliance with the minimum servicing standards. In our opinion, management's assertion that the Company complied with the aforementioned minimum servicing standards as of and for the year ended July 31, 2002, is fairly stated in all material respects. By: /s/ Deloitte & Touche, LLP -------------------------------- October 11, 2002 -11- EXHIBIT 99.2 Report of Management as to compliance with minimum servicing standards for the year ended December 31, 2002 -12- Aurora Loan Services Inc. Corporate Headquartes 2530 S. Parker Road, Suite 601 Aurora, CO 80014 Telephone: (303) 632-3000 (800) 880-0126 Facsimile: (303) 632-3001 Management's Assertion on Compliance with Minimum Servicing Standards Set Forth in the Uniform Single Attestation Program for Mortgage Bankers Report of Management We, as members of management of Aurora Loan Services Inc. (the "Company"), are responsible for complying with the minimum servicing standards as set forth in the Mortgage Bankers Association of America's Uniform Single Attestation Program for Mortgage Bankers (USAP). We are also responsible for establishing and maintaining effective internal control over compliance with these standards. We have performed an evaluation of the Company's compliance with the minimum servicing standards as set forth in the USAP as of November 30, 2002 and for the year then ended. Based on this evaluation, we assert that during the year ended November 30, 2002, the Company complied, in all material respects, with the minimum servicing standards set forth in the USAP. As of and for this same period, the Company had in effect a fidelity bond and errors and omissions policy in the amount of $30,000,000. By: /s/ Ralph A. Lenzi, III ---------------------------- Ralph A. Lenzi, III Chief Executive Officer By: /s/ Rick W. Skogg ---------------------------- Rick W. Skogg President By: /s/ Roy W. Browning, III ----------------------------- Chief Financial Officer By: /s/ Alexandra M. Delargy ----------------------------- Alexandra M. Delargy Senior Vice President and Controller March 14, 2003 -13- National City Mortgage Co. 3232 Newmark Drive Miamisburg, Ohio 45342 Mailing Address: P.O. Box 1820 Dayton, Ohio 45401-1820 Management's Assertion on Compliance with Minimum Servicing Stardards Set Forth in the Uniform Single Attestation Program for Mortgage Bankers Report of Management We, as members of management of National City Mortgage Co. (NCM), are responsible for complying with the minimum servicing standards as set forth in the Mortgage Bankers Association of America's Uniform Single Attestation Program for Mortgage Bankers (USAP). We are also responsible for establishing and maintaining effective internal control over compliance with these standards. We have performed an evaluation of NCM's compliance with the minimum servicing standards as set forth in the USAP as of December 31, 2002 and for the year then ended. Based on this evaluation, we assert that during the year ended December 31, 2002, NCM complied, in all material respects, with the minimum servicing standards set forth in the USAP. As of and for this same period, NCM had in effect a fidelity bond policy in the amount of $50 million and an errors and omissions policy in the amount of $40 million. By: /s/ Charles Abourezk -------------------------- Charles Abourezk Senior Vice President February 24, 2003 -14- Golden First Mortgage Corp. Licensed Mortgage Banker NYS Banking Department One Huntington Quadrangle Melville, New York 11747 Telephone: (631) 249-2100 Facsimile: (631) 249-2322 www.gnloans.com As of and for the year ended July 31, 2002, Golden First Mortgage Corp. has complied in all material respects with the minimum servicing standards set forth in the Mortgage Bankers Association of America's Uniform Single Attestation Program for Mortgage Bankers. As of and for this same period, Golden First Mortgage Corp. had in effect a fidelity bond and errors and omissions policy in the amount of $5 million and $5 million, respectively. By: /s/ David Movtady By: /s/ Barbara Bruce ---------------------- ---------------------- David Movtagy Barbara Bruce President Controller -15- EXHIBIT 99.3 Annual Statement of Compliance for the year ended December 31, 2002. Aurora Loan Services Inc. orporate Headquartes 2530 S. Parker Road, Suite 601 Aurora, CO 80014 Telephone: (303) 632-3000 (800) 880-0126 Facsimile: (303) 632-3001 Via UPS March 15, 2003 Nadezhka Thomas JPMorgan Chase Bank 4 New York Plaza, 6th floor New York, NY 10004 RE: SASCO Series 2002-2, 2002-4H, 2002-11A, 2002-14A, 2002-16A, 2002-18A Annual Officer's Certificate as to Compliance Dear Ms. Thomas: The undersigned Officer certifies the following for the period ending on December 31, 2002: 1. I have reviewed the activities and performance of the Master Servicer during the preceding calendar year under the terms of the Trust Agreements and to the best of this Officer's knowledge, the Master Servicer has fulfilled all of its duties, responsibilities or obligations under the Agreements; 2. Based on said review and to the best of this Officer's knowledge, the Master Servicer is not in default of its obligations under the terms of the Trust Agreements in any material respect, or, if there is a default in the fulfillment of its obligations, a description of each default or failure and the nature and status thereof has been reported to this Officer; 3. To the best of this Officer's knowledge, nothing has arose to lead this Officer to believe that its Servicer has failed to perform any of its duties, responsibilities and obligations under its Servicing Agreement during the preceding calendar year; 4. To the best of this Officer's knowledge, the Servicer is not in default of its obligations under the terms of its Servicing Agreement in any material respect, or, if there is a default in the fulfillment of its obligations, a description of each default or failure and the nature and status thereof has been reported to this Officer; 5. The Master Servicer has received from its Servicer such Servicer's annual certificate of compliance and a copy of such Servicer's annual audit report, in each case to the extent required under the applicable Servicing Agreement, or, if any such certificate or report has not been received by the Master Servicer, the Master Servicer is using its best reasonable efforts to obtain such certificate or report. Certified By: /s/ R. Peter Karr --------------------------- R. Peter Karr Senior Vice President Master Servicing Division -16-