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SEC Filings

DITECH HOLDING CORP filed this Form 424B1 on 09/16/1997
Entire Document
<PAGE>   45
All but $664,000 in principal amount of the loans had been sold by July 31,
1997. The annualized return before asset management fees on those Single-Family
Mortgage Loans was 68.47%. HCP was paid asset management fees totaling
$2,095,000 for the period. See "Prior Performance Table" below.
     HCP will wind down and terminate its management arrangement with BT Realty
Resources, Inc. as part of the Formation Transactions. See "Structure and
Formation Transactions."
     An affiliate of HCP also acted as the subadvisor to the Midwest Income
Trust Adjustable Rate Government Securities Fund, a mortgage-backed securities
fund that was rated AAAf by Standard & Poor's. As subadvisor, the affiliate had
discretion over the portfolio of agency adjustable rate mortgage securities. For
the twelve month period ending October 31, 1996, the fund was ranked 16th of 53
by Lipper Analytical Servicer. Effective February 1, 1997, the affiliate no
longer acts as a subadvisor for this Fund as result of a merger at the Fund
     Prior Performance Table.  The following table sets forth information
regarding the amounts of Single-Family Mortgage Loans purchased by HCP on behalf
of Alpine/Hanover LLC, ABH-I LLC and BT Realty Resources, Inc., the amounts of
asset management fees paid to HCP with respect to those Single-Family Mortgage
Loans and the annualized returns (before HCP's incentive profit distributions or
management fees) generated by purchasing those Single-Family Mortgage Loans,
correcting their deficiencies and then selling the same. The annualized returns
were generated by HCP's management efforts in selecting the Single-Family
Mortgage Loans to be purchased, purchasing the Single-Family Mortgage Loans,
correcting the deficiencies with respect to the Single-Family Mortgage Loans and
then selling the Single-Family Mortgage Loans.

                                  ALPINE/                                BT REALTY
                                HANOVER LLC        ABH-I LLC          RESOURCES, INC.            TOTAL
                                -----------        ----------         ---------------         -----------
<S>                             <C>                <C>                <C>                     <C>
Date program commenced(A).....     5/25/95           11/8/95                11/4/95
Date program substantially
  completed(B)................    10/31/95           7/31/97                7/31/97
Number of pools purchased.....           5                 7                      4                    16
Dollar amount raised and
  invested for purchases......   5,690,000         17,096,000            18,036,000            40,822,000
Dollar amount financed........  17,803,000         64,808,000            49,901,000           132,512,000
Dollar amount of purchases....  23,493,000         81,904,000            67,937,000           173,334,000
Principal amount of Mortgage
  Loans purchased.............  23,999,000         85,185,000            78,105,000           187,289,000
Remaining principal amount....           0         1,240,000                664,000             1,904,000
Asset management fee paid.....           0 (C)     1,149,000              2,095,000             3,244,000
Annualized return
  percentage..................       14.26% (D)        53.30% (E)(F)          68.47%(E)(F)          53.55%(E)(F)

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(A) HCP entered into participation agreements with the respective investors
    which provide for concurrent funding of approved investments. Accordingly,
    the dates of program commencement represent the initial investment funding
    date for each program.
(B) The dates indicated as the date program substantially completed represent
    the approximate date on which the program investments had been substantially
(C) No incentive profit distribution/asset management fee was paid during this
    period because the annualized return did not exceed 15%.
(D) The annualized return percentage reflects returns generated from the
    purchasing, holding and selling of Single-Family Mortgage Loans and the
    balances of other operating activities before incentive distributions or
    management fees to HCP.
(E) The annualized return percentage reflects returns generated from the
    purchasing, holding and selling of Single-Family Mortgage Loans before
    incentive distributions or management fees to HCP.
(F) HCP's management fees increase by formula as program returns increase. The
    annualized return percentages were estimated by HCP based on unaudited
    information prepared and provided to it by other participants in the
    programs. There can be no assurances as to the accuracy of the information
    prepared by those other participants.