EX-99.1 2 d276141_ex99-1.txt CHARACTERISTICS OF THE MORTGAGE POOL EXHIBIT 99.1 The mortgage loans delivered to the Trust on the Closing Date (the "Initial Mortgage Loans") consist of conventional, one-to four- family, adjustable-rate and fixed-rate mortgage loans. The Depositor will purchase the Initial Mortgage Loans from the Seller pursuant to the Mortgage Loan Purchase Agreement, dated October 4, 2004, between the Seller and the Depositor. Pursuant to the Pooling and Servicing Agreement, dated October 1, 2004 (the "Pooling and Servicing Agreement"), among the Depositor, the Master Servicer and the Trustee, the Depositor caused the Initial Mortgage Loans to be assigned to the Trustee for the benefit of the certificateholders. The Initial Mortgage Loans included in loan group I and loan group II are expected to have an aggregate principal balance as of the Cut-off Date of $1,040,115,541.14 and $259,884,162.09, respectively. Subsequent Group I Mortgage Loans (the "Subsequent Group I Mortgage Loans") and subsequent Group II Mortgage Loans (the "Subsequent Group II Mortgage Loans"; together with the Subsequent Group I Mortgage Loans, the "Subsequent Mortgage Loans" and together with the Initial Mortgage Loans, the "Mortgage Loans") are intended to be purchased by the Trust from the Depositor from time to time on or before the 90th day following the Closing Date from funds on deposit in the Pre-Funding Accounts. The Subsequent Mortgage Loans, if available, will be purchased by the Depositor and sold by the Depositor to the Trust for deposit in the mortgage pool. The Mortgage Loans will be secured by mortgages or deeds of trust or other similar security instruments creating first liens on residential properties (the "Mortgaged Properties") consisting of attached, detached or semi-detached one-to four-family dwelling units, individual condominium units or individual units in planned unit developments and manufactured housing. The Mortgage Loans will have original terms to maturity of not greater than 30 years from the date on which the first payment was due on each Mortgage Loan. Each adjustable-rate Mortgage Loan will accrue interest at the adjustable-rate calculated as specified under the terms of the related mortgage note and each fixed-rate Mortgage Loan will have a Mortgage Rate that is fixed for the life of such Mortgage (each such rate, a "Mortgage Rate"). Approximately 93.876% of the Initial Mortgage Loans were originated by Ameriquest and approximately 6.124% of the Initial Mortgage Loans were originated by the Seller's affiliate Town & Country Credit Corporation (together with Ameriquest, the "Originators"), in each case, by aggregate scheduled principal balance of the Initial Mortgage Loans as of the Closing Date. Each adjustable-rate Mortgage Loan will accrue interest at a Mortgage Rate that is adjustable. The adjustable-rate Mortgage Loans will provide for semi-annual adjustment to the Mortgage Rate thereon and for corresponding adjustments to the monthly payment amount due thereon, in each case on each adjustment date applicable thereto (each such date, an "Adjustment Date"). The first adjustment will occur after an initial period of two years after origination. On each Adjustment Date for each adjustable-rate Mortgage Loan, the Mortgage Rate thereon will be adjusted (subject to rounding) to equal the sum of the applicable Index and a fixed percentage amount (the "Gross Margin"). The Mortgage Rate on each adjustable-rate Mortgage Loan will not decrease on the first related Adjustment Date, will not increase by more than 2.000% per annum on the first related Adjustment Date (the "Initial Periodic Rate Cap") and will not increase or decrease by more than 1.000% per annum on any Adjustment Date thereafter (the "Periodic Rate Cap"). Each Mortgage Rate on each adjustable-rate Mortgage Loan will not exceed a specified maximum Mortgage Rate over the life of such Mortgage Loan (the "Maximum Mortgage Rate") or be less than a specified minimum Mortgage Rate over the life of such Mortgage Loan (the "Minimum Mortgage Rate"). Effective with the first monthly payment due on each adjustable-rate Mortgage Loan after each related Adjustment Date, the monthly payment amount will be adjusted to an amount that will amortize fully the outstanding principal balance of the related Mortgage Loan over its remaining term, and pay interest at the Mortgage Rate as so adjusted. Due to the application of the Periodic Rate Caps and the Maximum Mortgage Rates, the Mortgage Rate on each such adjustable-rate Mortgage Loan, as adjusted on any related Adjustment Date, may be less than the sum of the Index and the related Gross Margin, rounded as described herein. None of the adjustable-rate Mortgage Loans permits the related mortgagor to convert the adjustable Mortgage Rate thereon to a fixed Mortgage Rate. The Mortgage Loans will have scheduled monthly payments due on the first day of the month (with respect to each Mortgage Loan, a "Due Date"). Each Mortgage Loan will contain a customary "due-on-sale" clause which provides that (subject to state and federal restrictions) the Mortgage Loan must be repaid at the time of sale of the related mortgaged property or with the consent of the holder of the mortgage note assumed by a creditworthy purchaser of the related mortgaged property. None of the Mortgage Loans will be buydown mortgage loans. Approximately 60.34% of the Group I Initial Mortgage Loans and approximately 69.04% of the Group II Initial Loans, in each case by aggregate scheduled principal balances of the related loan group as of the Cut-off Date, provide for payment by the mortgagor of a prepayment charge on certain principal prepayments, subject to certain limitations in the related mortgage note and limitations upon collection in the Pooling and Servicing Agreement. Generally, each such Mortgage Loan provides for payment of a prepayment charge on certain prepayments made within a defined period set forth in the related Mortgage Note (generally within the first three years but possibly as short as one year from the date of origination of such Mortgage Loan). The amount of the prepayment charge is as provided in the related Mortgage Note. The holders of the Class P Certificates will be entitled to all prepayment charges received on the Mortgage Loans in each loan group, and such amounts will not be available for distribution on the other classes of Certificates. Under certain instances, as described under the terms of the Pooling and Servicing Agreement, the Master Servicer may waive the payment of any otherwise applicable prepayment charge. Investors should conduct their own analysis of the effect, if any, that the prepayment charges, and decisions by the Master Servicer with respect to the waiver thereof, may have on the prepayment performance of the Mortgage Loans. The Depositor makes no representation as to the effect that the prepayment charges, and decisions by the Master Servicer with respect to the waiver thereof, may have on the prepayment performance of the Mortgage Loans.

* Based on the original balances of the Mortgage Loans.

* Based on mortgagor representation at origination.

** Cash proceeds to the borrower inclusive of debt consolidation payments exceed 2% or $2,000 of the original principal balance of the related loan. Also includes all home equity loans originated in Texas with any cash proceeds. ***Cash proceeds to the borrower inclusive of debt consolidation payments do not exceed 2% or $2,000 of the original principal balance of the related loan. Excludes home equity loans originated in Texas with any cash proceeds.

GROUP I MORTGAGE LOAN STATISTICS The Initial Group I Mortgage Loans consist of 7,158 adjustable-rate and fixed-rate Mortgage Loans having an aggregate principal balance as of the Cut-off Date of approximately $1,040,115,541, after application of scheduled payments due on or before the Cut-off Date whether or not received and application of all unscheduled payments of principal received prior to the Cut-off Date, and subject to a permitted variance of plus or minus 5%. None of the Initial Group I Mortgage Loans had a first Due Date prior to March 1, 2004 or after November 1, 2004, or will have a remaining term to stated maturity of less than 116 months or greater than 360 months as of the Cut-off Date. The latest maturity date of any Initial Group I Mortgage Loan is October 1, 2034.

*Based on the original balances of the Mortgage Loans.

*Based on mortgagor representation at origination.

** Cash proceeds to the borrower inclusive of debt consolidation payments exceed 2% or $2000 of the original principal balance of the related loan. Also includes all home equity loans originated in Texas with any cash proceeds. *** Cash proceeds to the borrower inclusive of debt consolidation payments do not exceed 2% or $2000 of the original principal balance of the related loan. Excludes home equity loans originated in Texas with any cash proceeds.

GROUP II MORTGAGE LOAN STATISTICS The Initial Group II Mortgage Loans consist of 757 adjustable-rate and fixed-rate Mortgage Loans having an aggregate principal balance as of the Cut-off Date of approximately $259,884,162, after application of scheduled payments due on or before the Cut-off Date whether or not received and application of all unscheduled payments of principal received prior to the Cut-off Date. None of the Initial Group II Mortgage Loans had a first Due Date prior to April 1, 2004 or after November 1, 2004, or will have a remaining term to stated maturity of less than 119 months or greater than 360 months as of the Cut-off Date. The latest maturity date of any Initial Group II Mortgage Loan is October 1, 2034.

*Based on the original balances of the Initial Mortgage Loans.

*Based on mortgagor representation at origination.

AMERIQUEST MORTGAGE SECURITIES INC. ASSET-BACKED PASS-THROUGH CERTIFICATES SERIES 2004-R10 8-K