10-K 1 msdw02nc1_10k.txt MSDW 02-NC1, DEC 31, 2002, 10K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (Mark One) [ x] Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended DECEMBER 31, 2002 or [ ] Transition Report Pursuant to Section 13 or 15d of the Securities Exchange Act of 1934 For the transition period from _____________ to ________ Commission file Number 333-59060-09 Morgan Stanley Dean Witter Capital I Inc (Exact name of registrant as specified in its charter) Delaware 13-3291626 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 1585 Broadway New York, NY 10036 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: 212-296-7000 Morgan Stanley Dean Witter Capital I Inc Mortgage Pass-Through Certificates Series 2002-NC1 (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 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. X - Yes No PART I Item 1. Business Not applicable. Item 2. Properties Not applicable on reliance of Relief Letters Item 3. Legal Proceedings There were no legal proceedings. Item 4. Submission of Matters to a Vote of Security Holders There were no matters submitted to a vote of the Security Holders. PART II Item 5. Market for Registrant's Common Equity and Related Stockholder matters There is no established public trading market for the notes. Below are the number of Noteholders or Certificateholders of record as of the end of the reporting year. Morgan Stanley Dean Witter Capital I Inc Mortgage Pass-Through Certificates Series 2002-NC1 Class A1 1 Series 2002-NC1 Class A2 5 Series 2002-NC1 Class M1 1 Series 2002-NC1 Class M2 1 Series 2002-NC1 Class B1 6 Series 2002-NC1 Class X 1 Series 2002-NC1 Class P 1 Item 6. Selected Financial Data. Not applicable. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. Not applicable. Item 8. Financial Statements and Supplementary Data. Not applicable. Item 9. Changes in and Disagreements with Accountants on Accounting and Not applicable. PART III Item 10. Directors and Executive Officers of the Registrant Not applicable. Item 11. Executive Compensation Not applicable. Item 12. Security Ownership of Certain Beneficial Owners and Management Not applicable. Item 13. Certain Relationships and Related Transactions. Not applicable. PART IV Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K (a) 1. Not Applicable 2. Not Applicable 3. Exhibits 99.1 Annual Summary Statement 99.2 Annual Statement as to Compliance. 99.3 Annual Independent Public Accountant's Servicing Report. 99.4 Annual Report of Management (b) Reports on Form 8-K The registrant has filed Current Reports on Form 8-K with the Securities and Exchange Commission dated: April 25,2002; May 28, 2002; June 25, 2002; July 25, 2002; August 26, 2002; September 25, 2002, October 25, 2002; November 25, 2002; December 26, 2002 (c) See (a) 3 above (d) Not Applicable SIGNATURES 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. Morgan Stanley Dean Witter Capital I Inc Mortgage Pass-Through Certificates Series 2002-NC1 /s/ Craig Phillips Name: Craig Phillips Title: President Date: March 31, 2003 Sarbanes-Oxley Certification CERTIFICATION Re: Morgan Stanley Dean Witter Capital I Inc. Trust 2002-NC1 ("the Trust"), Mortgage Pass-Through Certificates, Series 2002-NC1, issued pursuant to the Pooling and Servicing Agreement, dated as of March 1, 2002 (the "Pooling and Servicing Agreement"), among Morgan Stanley Dean Witter Capital I Inc., as depositor, U.S. Bank, National Association, as trustee ("the Trustee"), and The Provident Bank, as servicer ("the Servicer") I, Craig Phillips, certify that: 1. I have reviewed this annual report on Form 10-K ("Annual Report"), and all reports on Form 8-K containing distribution reports (collectively with this Annual Report, the "Reports") filed in respect of periods included in the year covered by this Annual Report, of the Trust; 2. Based on my knowledge, the information in the 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 Agreement, for inclusion in the Reports is included in these Reports; 4. Based on my knowledge and upon the annual compliance statement included in this Annual Report and required to be delivered to the Trustee in accordance with the terms of the Pooling and Servicing Agreement, and except as disclosed in the Reports, the Servicer has fulfilled its obligations under the Pooling and Servicing 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 Agreement, that is included in the Reports. In giving the certifications above, I have reasonably relied on information provided to me by the following unaffiliated parties: the Trustee and the Servicer Date: 3-25-03 Signature: /s/ Craig Phillips Title: President EXHIBIT INDEX Exhibit NumberDescription 99.1 Annual Summary Statement 99.2 Annual Statement of Compliance 99.3 Report of Independent Accountants 99.4 Report of Management EXHIBIT 99.1 -- Summary of Aggregate Amounts or End of Year Amounts for the period ending December 31, 2002 Morgan Stanley Dean Witter Capital I Inc Mortgage Pass-Through Certificates Series 2002-NC1 STATEMENT TO CERTIFICATEHOLDERS Class Cusip A-1 61746WNA4 A-2 61746WMR8 M-1 61746WMY3 M-2 61746WMZ0 B-1 61746WMS6 X N/A P N/A UT-R N/A Beginning Certificate Class Bal(1) A-1 286,626,000 A-2 198,696,000 M-1 35,552,000 M-2 32,589,000 B-1 28,145,000 X 10,370,214 P 0 UT-R 0 Total 591,978,214 Class Prin A-1 46,775,423 A-2 31,025,608 M-1 0 M-2 0 B-1 0 X 10,595 P 0 UT-R 0 Total 77,811,626 Class Int Total A-1 4,557,284 51,332,706 A-2 3,037,567 34,063,174 M-1 698,040 698,040 M-2 788,143 788,143 B-1 872,758 872,758 X 25,311,161 25,321,757 P 1,816,093 1,816,093 UT-R 0 0 Total 37,081,045 114,892,670 Class Losses A-1 0 A-2 0 M-1 0 M-2 0 B-1 0 X 0 P 0 UT-R 0 Total 0 Ending Certificate Class Bal A-1 239,850,577 A-2 167,670,392 M-1 35,552,000 M-2 32,589,000 B-1 28,145,000 X 10,359,619 P 0 UT-R 0 Total 514,166,588 AMOUNTS PER $1,000 UNIT Class Prin A-1 163.193230 A-2 156.146111 M-1 0.000000 M-2 0.000000 B-1 0.000000 X 1.021700 Class Int A-1 15.899757 A-2 15.287507 M-1 19.634327 M-2 24.184328 B-1 31.009328 X 2440.755939 Class Total A-1 179.09299 A-2 171.43362 M-1 19.63433 M-2 24.18433 B-1 31.00933 X 2441.77764 Ending Certificate Class Bal A-1 836.806770 A-2 843.853889 M-1 1000.000000 M-2 1000.000000 B-1 1000.000000 X 998.978300 Class Losses A-1 0.000000 A-2 0.000000 M-1 0.000000 M-2 0.000000 B-1 0.000000 X 0.000000 Current Pass-Through Class Int Rate A-1 1.80500% A-2 1.73000% M-1 2.18000% M-2 2.78000% B-1 3.68000% X 6.38557% Section 4.02 (i.) PRINCIPAL DISTRIBUTIONS Curtails 698,881 Payments in Full 73,703,957 Liq Proceeds 67,339 74,470,178 Section 4.02 (ii)(iii) INTEREST DISTRIBUTIONS Int Unpaid Int Unpaid Int Class Distrib Amt Amt Included Amt Remaining A-1 4,557,284 $0 $0 A-2 3,037,567 $0 $0 M-1 698,040 $0 $0 M-2 788,143 $0 $0 B-1 872,758 $0 $0 X 25,311,161 NA NA TOTAL 35,264,952 $0 $0 Basis Risk Carry Forward Class Amt Covered A-1 $0 A-2 $0 M-1 $0 M-2 $0 B-1 $0 X NA TOTAL $0 Reduction from the Allocation of: Basis Risk Carry Forward Realized Class Amount Losses RAIS A-1 $0 $0 $0 A-2 $0 $0 $0 M-1 $0 $0 $0 M-2 $0 $0 $0 B-1 $0 $0 $0 X $0 $0 $0 TOTAL $0 $0 $0 Section 4.02 (v.) BALANCES AS OF: 26-Dec-02 Stated Prin Bal of Mort Loans 514,166,588 Section 4.02 (vi.) MAS SERV COMP 2,738,958 Section 4.02 (viii.) P&I ADVANCES Current Period Advances 1,957,990 Outstanding Advances 2,747,635 Section 4.02 (ix.) DELINQ INFO Number *1-29 days delinquent 694 *30-59 days delinquent 99 *60-89 days delinquent 14 *90 or more days delinquent 15 Foreclosures 108 Bankruptcies 47 Section 4.02 (ix.) Unpaid Prin DELINQ INFO Balance *1-29 days delinquent 96,130,867 *30-59 days delinquent 13,432,239 *60-89 days delinquent 1,883,729 *90 or more days delinquent 1,920,928 Foreclosures 13,859,244 Bankruptcies 6,533,650 Section 4.02 (ix.) Stated Prin DELINQ INFO Balance *1-29 days delinquent 96,013,016 *30-59 days delinquent 13,409,781 *60-89 days delinquent 1,879,393 *90 or more days delinquent 1,941,126 Foreclosures 13,815,391 Bankruptcies 6,515,658 *Note: In accordance with the Master Servicer, the Delinquency Information relates to the Prepayment Period. Section 4.02 (x.) SCHEDULED PAYMENTS Payments Due Delinq >= 60 Days November-02 4,226,310 191,842 October-02 4,330,152 158,578 September-02 4,407,412 134,995 August-02 4,551,580 92,249 July-02 4,588,767 89,187 June-02 4,631,452 67,118 May-02 4,672,162 43,901 April-02 4,719,357 24,211 March-02 4,740,221 0 Section 4.02 (xi.) REO INFORMATION Loans that became REO properties in the preceding calendar month: Unpd Prin Std Prin Loan #Bal Bal Section 4.02 (xii.) REO INFORMATION Number of REO Loans 0 Stated Principal Balance of REO Properties 0 Tot Bk Val of REO Props: 0 Section 4.02 (xiii.) Stepdown Date Occurrence NO Trigger Event Occurrence NO Aggregate Balance of loans 60+ days delinquent 24,151,567 Section 4.02 (xiv.) Amount on Deposit in Excess Reserve Fund 0 Section 4.02 (xv.) REALIZED LOSSES Real Losses incurred during related Prepay Period Tot Real Losses 10,387 Cum Real Losses 10,387 Section 4.02 (xvi.) Net Monthly Excess Cash Flow 25,321,757 Allocation to Applied Realized Losses 0 Allocation to Unpaid Interest Amounts 0 Section 4.02 (xvii.) Subordination Amount 10,359,619 Required Subordinated Amount 10,359,619 Section 4.02 (xviii.) Prepay Charges 1,816,093 EXHIBIT 99.2 -- Servicer's Annual Statement of Compliance FEBRUARY 24, 2003 MORGAN STANLEY DEAN WITTER CAPITAL I, Inc. MORGAN PASS-THROUGH CERTIFICATES, SERIES 2002-NC1 SERVICER ANNUAL OFFICER'S CERTIFICATE FEBRUARY 24, 2003 Pursuant to the provisions of the Pooling and Servicing Agreement dated as of March 1, 2002 by and between MORGAN STANLEY DEAN WITTER CAPITAL I, INC. and PCFS MORTGAGE RESOURCES, a division of The Provident Bank, I, David M. Friedman as President of Servicing of the servicer, hereby certifies as follows: (a) a review of the activites of the Servicer during the preceding calender year and of the performance under the Pooling and Servicing Agreement has been made under my direction and supervision; and (b) to the best of my individual knowledge based on such review, the Servicer has fulfilled all of its obligations under the Pooling and Servicing Agreement for such year in accordance with the requirements set forth in said Pooling and Servicing Agreement. PCFS MORTGAGE RESOURCES By: /s/ David M. Friedman President of Servicing EXHIBIT 99.3 -- Report of Independent Auditors Report of Independent Accountants Board of Directors The Provident Bank We have examined management's assertion, included in the accompanying report titled Report of Management, that the Provident Bank (the Bank) 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 December 31, 2002. Management is responsible for the Bank's compliance with those requirements. Our responsibility is to express an opinion on management's assertions about the Bank'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 Bank'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 Bank's compliance with specified requirements. In our opinion, management's assertion, that the Bank complied with the aforementioned requirements during 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 board of directors, management, Federal Home Loan Mortgage Corporations, and the Bank's private investors and is not intended to be and should not be used by anyone other than these specified parties. /s/ Ernst & Young LLP February 24, 2003 EXHIBIT 99.4 -- Report of Management Report of Management We, as members of management of PCFS Mortgage Resources' (based in Atlanta)(PCFS), a division of The Provident Bank (the Bank), 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 PCFS'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, the PCFS complied, in all material respects, with the minimum servicing standards set forth in the USAP. As of and for this same period, PFGI had in effect a fidelity bond and errors and omissions policy in the amount of $25,000,000 and $20,000,000, respectively. /s/ Richard Gravino /s/ David Friedman Richard Gravino David Friedman Executive Vice President Senior Vice President Consumer Finance National Servicing Operations February 24, 2003