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May-22-02 15:02 From-ECHO BAY MINES <br />The key economic asstsmptiona uud in dettstzsining the <br />. fair value of Ittor[gagc servicing rights and ocher rerained <br />iatcuas rclaud m residenrial taongagc loan senstisizasions <br />ar dtc dare of seeuririzadon resulting kom sccuti[ixarions <br />complered in 2001 and 2000 were as fogows: <br />30371d5995 <br />T-087 P.05/07 F-369 <br />inttresc is cakulaied i0dependently without tfuaging arty <br />ocher assumption, Tn realiry, changes in one factor shay resulr <br />is changes in ano[hcr (for cxamplc, changes is prcpayttsenc <br />spccd cstimat:a wind result in ehastges in [hc diswnn[ ro¢s), <br />which miss magnify or countcraa rht arnsitiviiics. <br />Mortgage 0[herretaineo <br />servicing rights irnnrcsn <br />Matgege ether (in millionq <br />servk6a rlahu tatakSfl~LateiSf <br />2007 7,000 2m1 20m <br />prepaymm[speed (annual GPfU OI t3,aN6 [7,e% t6w7% taz% <br />Welghi40 average Iife (in yearst 7.7 7.9 6.1 82 <br />DisWUnt rates nl 8.996 la6% e12% 120% <br />CPR-Gonstam arepaymmt me <br />(t) D"amun[ rota Md prepbymanl aPCWa fepreaMi wd9Med averages for <br />aA reWnad Intercsn resulgn9~m residertdal mortgage seculdaations <br />complemd in 200t and 2000. <br />At llcambu 31, 2001, key economic asstsmprioas cad <br />the sensitivity of the euremt fait value of mortgage servicing <br />rights, both purchased and retaised, and other repimd <br />inttruss relaud ro aaiderstial mortgage loan securisixationa <br />co ;t7smediate 10% and 25% adverse chassges in [hose <br />assumptions art presenrtd in tht table ro the right. <br />'t'here sensitivities arc hypothetical and should be used <br />with caution As the figures indieare, changes in fair value <br />based on a 30% variation in ass»mptioty generally cams <br />be extrapolstcd btcause the relationship of the chaagc in <br />the aasumptioa m the change in fair value may hoc be <br />linear Also, in [he above mble, the effect of a variation ;n <br />• a particular assumption oa dst law value of the retained <br />fair value OFrlnained intefeaK Sfi397 51,470 <br />rapecred weighted average rde (in years) Sb 53 <br />Prepaymem speed assumption lannual CPRI 16.5% e5.946 <br />Decease in fair value from <br />lo%adverse change 5333 586 <br />Decrease in h'v value from <br />2546 adverse eAange 772 799 <br />piscounf Rte assumption 7A1% 7.47% <br />Decease in fair value hart <br />t001xasis poimadverze change 5270 559 <br />Decrcaae in lac wlue from <br />200 basis point adverse change S04 108 <br />Noc iadudtd in the tsblc above arc mortgage servicing <br />rights, both purchased and retained, with a fair value of S74 <br />million and ocher retained intere:u with a fair villua of 5350 <br />million re3ated co commercial mortgage loan seeuriti7stiosu <br />and other rttaibcd intaaa of 5325 taillioa relared to securi- <br />tizarions of uudeat loans, auto receivables cad securities. <br />Note 20; Parent Company <br />Condensed financial iafocmatioa of dte Patens follows. Por <br />infortnadon rcgazding the Parrns's long-ttrm debt, sx Notc 9. <br />Contlensed Statement of Irtmnte <br />8n millions) yaar.r, dad Dece be 3t, <br /> 2007 2000 1999 <br />INWME <br />Divltlends fiom wbsldlarles: <br />Bank 51360 5378 52,378 <br />Nonbank 278 1,139 e53 <br />InrereS[inmme from subSldiades 566 701 616 <br />SeKrefees from subsidiaries 49 45 104 <br />Omer inmme ~~ _~ _gg <br />Total income 3373 ~SZ2 ~9a6 <br />IX9ENSE <br />Interest ore <br />Shen-term ttorrowings 305 464 350 <br />longterm tlebt 691 739 St4 <br />NonimeRSt expense ,1471 116 COQ <br />Total expense t.1r4 7379 1jgg <br />Income before Inmme tax beneth <br />antl un0istrifauted income of aubsidiadez 2,229 3,253 2t02 <br />Incometdx hene~i (expensel 730 174 (1617 <br />Equhy(n undistributed income ofsubzitliaries _~gg g59 7-07t <br />NET INCOME 3s23 402 otz <br />6a nrvgN4aL 5T4TEMENTS <br />