<PAGE>
FREE WRITING PROSPECTUS FOR
(MERRILL LYNCH LOGO)
OWNIT, SERIES 2005-5
--------------------------------------------------------------------------------
ABS NEW TRANSACTION
FREE WRITING PROSPECTUS
$[440,897,000] (APPROXIMATE)
OWNIT
MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
SERIES 2005-5
MERRILL LYNCH MORTGAGE LENDING, INC.
SELLER
MERRILL LYNCH MORTGAGE INVESTORS, INC.
DEPOSITOR
OWNIT MORTGAGE SOLUTIONS INC.
ORIGINATOR
LITTON LOAN SERVICING LP
SERVICER
WELLS FARGO BANK, N.A.
MASTER SERVICER AND SECURITIES ADMINISTRATOR
HSBC BANK USA, N.A.
TRUSTEE
DECEMBER 15, 2005
-------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
1
<PAGE>
FREE WRITING PROSPECTUS FOR
(MERRILL LYNCH LOGO)
OWNIT, SERIES 2005-5
--------------------------------------------------------------------------------
IMPORTANT NOTICES
The depositor has filed a registration
statement (including a prospectus) with
the SEC (File no. 333-127233) for the
offering to which this free writing
prospectus relates. Before you invest, you
should read the prospectus in that
registration statement and other documents
the issuer has filed with the SEC for
more complete information about the issuer
and this offering. You may get these
documents for free by visiting EDGAR on the
SEC Web site at www.sec.gov.
Alternatively, the issuer, any underwriter
or any dealer participating in the
offering will arrange to send you the
prospectus when it is available if you
request it by calling the toll-free number
at 1-800-248-3580.
This free writing prospectus is not
required to contain all information that is
required to be included in the base
prospectus and the prospectus supplement.
The information in this free writing
prospectus is preliminary and is subject to
completion or change.
The information in this free writing
prospectus, if conveyed prior to the time
of your commitment to purchase, supersedes
any inconsistent information
contained in any prior similar free writing
prospectus relating to these
securities.
Numerous assumptions were used in preparing
the Free Writing Prospectus which
may or may not be stated therein. The Free
Writing Prospectus should not be
construed as either projections or
predictions or as legal, tax, financial or
accounting advice.
Any yields or weighted average lives shown
in the Free Writing Prospectus are
based on prepayment assumptions and actual
prepayment experience may
dramatically affect such yields or weighted
average lives. In addition, it is
possible that prepayments on the underlying
assets will occur at rates slower or
faster than the rates assumed in the Free
Writing Prospectus. Furthermore,
unless otherwise provided, the Free Writing
Prospectus assumes no losses on the
underlying assets and no interest
shortfall. The specific characteristics of the
securities may differ from those shown in
the Free Writing Prospectus due to
differences between the actual underlying
assets and the hypothetical assets
used in preparing the Free Writing
Prospectus.
This communication shall not constitute an
offer to sell or the solicitation of
any offer to buy nor shall there be any
sale of the securities discussed in this
Free Writing Prospectus in any state in
which such offer, solicitation or sale
would be unlawful prior to registration or
qualification under the securities
laws of any such state.
Please be advised that asset-backed
securities may not be appropriate for all
investors. Potential investors must be
willing to assume, among other things,
market price volatility, prepayments, yield
curve and interest rate risk.
Investors should fully consider the risk of
an investment in these securities.
-------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE
COVER PAGE OF THIS FREE WRITING PROSPECTUS.
2
<PAGE>
FREE WRITING PROSPECTUS FOR
(MERRILL LYNCH LOGO)
OWNIT, SERIES 2005-5
--------------------------------------------------------------------------------
TERM SHEET
DECEMBER 15, 2005
OWNIT,
MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
SERIES 2005-5
$[440,897,000] (APPROXIMATE)
SUBJECT TO REVISION
<TABLE>
<CAPTION>
WAL (YRS)
PAYMENT WINDOW
CLASS
APPROX
INITIAL
(CALL(4)/
(CALL(4)/
PAYMENT
INTEREST
SIZE ($) C/E (%)(7)
COUPON
MATURITY)
MATURITY)
DELAY ACCRUAL
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
CLASS A-1 205,391,000
23.15%
LIBOR + [ ]
1.98 / 2.20
1 - 71 / 1 - 170
0
Actual/360
(1), (2)
CLASS A-2A 88,759,000
23.15% LIBOR + [
] 1.00 / 1.00
1 - 21 / 1 - 21
0
Actual/360
(1), (2)
CLASS A-2B 63,455,000
23.15% LIBOR + [
] 3.13 / 3.40
21 - 71 / 21 -
144 0
Actual/360
(1), (2)
CLASS M-1 64,680,000
9.25% LIBOR + [
] 4.53 / 4.97
41 - 71 / 41 -
143 0
Actual/360
(1), (3)
CLASS M-2 14,425,000
6.15% LIBOR + [
] 4.23 / 4.58
39 - 71 / 39 -
112 0
Actual/360
(1), (3)
CLASS M-3 4,187,000
5.25% LIBOR + [
] 4.20 / 4.50
39 - 71 / 39 - 99
0
Actual/360
(1), (3)
CLASS M-4(6) 7,445,000
3.65%
Information Not Provided Hereby
CLASS M-5(6) 4,187,000
2.75%
Information Not Provided Hereby
CLASS M-6(6) 3,257,000
2.05%
Information Not Provided Hereby
CLASS B-1(6) 2,559,000
1.50%
Information Not Provided Hereby
CLASS B-2(6) 2,326,000
1.00%
Information Not Provided Hereby
CLASS B-3(6) 2,325,000
0.50%
Information Not Provided Hereby
-----------
TOTAL:
462,996,000
===========
</TABLE>
<TABLE>
<CAPTION>
EXPECTED STATED
FINAL
FINAL
CLASS
MATURITY
MATURITY EXPECTED RATINGS
(4)
(5)
(S&P / MOODY'S)
<S>
<C>
<C>
<C>
CLASS A-1 Nov-2011
Oct-2036 [AAA] /
[Aaa]
CLASS A-2A Sep-2007 Oct-2036
[AAA]/[Aaa]
CLASS A-2B Nov-2011 Oct-2036
[AAA]/[Aaa]
CLASS M-1 Nov-2011
Oct-2036
[AA+] / NR
CLASS M-2 Nov-2011
Oct-2036 [AA] / NR
CLASS M-3 Nov-2011
Oct-2036
[AA-] / NR
CLASS M-4(6)
[A+] / NR
CLASS M-5(6)
[A] / NR
CLASS M-6(6)
[A-] / NR
CLASS B-1(6)
[BBB+] / NR
CLASS B-2(6)
[BBB] / NR
CLASS B-3(6)
[BBB-] / NR
TOTAL:
</TABLE>
1) Subject to the related
Available Funds Cap
2) If the 10% optional
termination is not exercised on the first Distribution
Date on which it
is exercisable, the margin on each of the Class A-1, Class
A-2A and Class
A-2B Certificates will increase to 2x its respective margin.
3) If the 10% optional
termination is not exercised on the first Distribution
Date on which it
is exercisable, the margin on each of the Class M-1, Class
M-2, Class M-3,
Class M-4, Class M-5, Class M-6, Class B-1, Class B-2 and
Class B-3
Certificates will increase to 1.5x its respective margin.
4) The Certificates will be
priced at 20% HEP for the fixed rate mortgage
loans and at
100% PPC (2% CPR in month 1, building linearly (rounded to the
nearest
hundredth) to 30% CPR in month 12, remaining at 30% CPR until
month
22, 50% CPR,
from month 23 to month 27, and 35% CPR in month 28 and
thereafter) for
the adjustable rate mortgage loans. Assumes 10% optional
termination
occurs.
5) Latest maturity date for any
mortgage loan plus one year.
6) The Class M-4, Class M-5,
Class M-6, Class B-1, Class B-2 and Class B-3
Certificates
will be privately placed. All information presented herein
with respect to
the Class M-4, Class M-5, Class M-6, Class B-1, Class B-2
and Class B-3
Certificates is solely to assist your understanding of the
Offered
Certificates.
7) Initial Credit Enhancement
includes over-collateralization of approximately
0.50%
-------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
3
<PAGE>
FREE WRITING PROSPECTUS FOR
(MERRILL LYNCH LOGO)
OWNIT, SERIES 2005-5
--------------------------------------------------------------------------------
CONTACTS
<TABLE>
<S>
<C>
<C>
MBS/ABS TRADING/SYNDICATE
Scott Soltas
212-449-3659
scott_soltas@ml.com
Vince Mora
212-449-1437
vince_morajr@ml.com
Charles Sorrentino
212-449-3659
charles_sorrentino@ml.com
Colin Sheen
212-449-3659
colin_sheen@ml.com
GLOBAL ASSET BACKED FINANCE
Matt Whalen
212-449-0752
matthew_whalen@ml.com
Paul Park
212-449-6380
paul_park@ml.com
Tim Loughlin
212-449-1646
timothy_loughlin@ml.com
Tom Saywell
212-449-2122
tom_saywell@ml.com
Alan Chan
212-449-8140
alan_chan@ml.com
Fred Hubert
212-449-5071
fred_hubert@ml.com
Alice Chu
212-449-1701
alice_chu@ml.com
Sonia Lee
212-449-5067
sonia_lee@ml.com
Keith Singletary
212-449-9431
keith_singletary@ml.com
Calvin Look
212-449-5029
calvin_look@ml.com
Yimin Ge
212-449-9401
yimin_ge@ml.com
Hoi Yee Leung
212-449-1901
hoiyee_leung@ml.com
MOODY'S
Kruti Muni
201-915-8733
kruti.muni@moodys.com
STANDARD & POOR'S
Rasool Alizaden
212-438-7334
rasool_alizaden@standardandpoors.com
</TABLE>
-------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
4
<PAGE>
FREE WRITING PROSPECTUS FOR
(MERRILL LYNCH LOGO)
OWNIT, SERIES 2005-5
--------------------------------------------------------------------------------
<TABLE>
<S>
<C>
TITLE OF CERTIFICATES
Ownit Mortgage Loan Asset-Backed Certificates Series 2005-5,
consisting of:
Class A-1 Certificates,
Class A-2A and Class A-2B Certificates (collectively, the "Class
A-2 Certificates", together with
the Class A-1 Certificates, the "Class A Certificates"),
Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 and Class M-6
Certificates (collectively, the
"Class M Certificates"), and
Class B-1, Class B-2 and Class B-3 Certificates (collectively, the
"Class B Certificates")
The Class A Certificates, Class M Certificates (excluding the Class
M-4, Class M-5 and Class M-6
Certificates), are
collectively known as the "Offered Certificates". The Class M and Class B
Certificates are collectively known as the "Subordinate
Certificates".
UNDERWRITER
Merrill Lynch, Pierce, Fenner & Smith Incorporated
DEPOSITOR
Merrill Lynch Mortgage Investors, Inc.
SELLER
Merrill Lynch Mortgage Lending, Inc.
ORIGINATOR
OwnIt Mortgage Solutions Inc.
SERVICER
Litton Loan Servicing LP
MASTER SERVICER AND
Wells Fargo Bank, N.A.
SECURITIES ADMINISTRATOR
TRUSTEE
HSBC Bank USA, N.A.
CUT-OFF DATE
December 1, 2005
PRICING DATE
On or about December [16], 2005
CLOSING DATE
On or about December [28], 2005
DISTRIBUTION DATES
Distribution of principal and interest on the Certificates will be
made on the 25th day of each
month or, if such day is not a business day, on the first business
day thereafter, commencing in
January 2006.
ERISA CONSIDERATIONS
The Offered Certificates will be ERISA eligible as of the Closing
Date. However, investors should
consult with their counsel with respect to the consequences under
ERISA and the Internal Revenue
Code of an ERISA Plan's acquisition and ownership of such Offered
Certificates.
LEGAL INVESTMENT
The Offered Certificates will not constitute "mortgage-related
securities" for the purposes of
SMMEA.
TAX STATUS
For federal income tax purposes, the Trust Fund will include two or
more segregated asset pools,
with respect to which elections will be made to treat each as a
"real estate mortgage investment
conduit" ("REMIC").
</TABLE>
-------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
5
<PAGE>
FREE WRITING PROSPECTUS FOR
(MERRILL LYNCH LOGO)
OWNIT, SERIES 2005-5
--------------------------------------------------------------------------------
<TABLE>
<S>
<C>
OPTIONAL TERMINATION
The Trustee will be required to effect an auction of the assets of
the Trust Fund when the aggregate
stated principal balance of the Mortgage Loans is less than or
equal to 10% of the aggregate stated
principal balance of the Mortgage Loans as of the Cut-Off Date. The
auction will be effected via a
solicitation of bids from at least three bidders. Any such auction will result in
the termination
of the Trust Fund only if the highest bid received is at least
equal to the sum of (i) the aggregate
outstanding principal balance of the Mortgage Loans, plus accrued
interest on the Mortgage Loans,
(ii) any unreimbursed out-of-pocket costs and expenses and the
principal portion of Advances, in
each case previously incurred by the Servicer in the performance of
its servicing obligations, (iii)
certain amounts described in the Prospectus Supplement, and (iv)
the costs incurred by the Trustee
in connection with such auction.
MORTGAGE LOANS
Fixed rate and adjustable rate, first lien, sub-prime Mortgage
Loans having an aggregate stated
principal balance as of the Cut-Off Date of approximately
$465,328,742 originated by OwnIt Mortgage
Solutions Inc. See the attached collateral descriptions for
additional information on the Mortgage
Loans.
The mortgage pool will be divided into two groups referred to as
Group I and Group II. Group I will
consist of fixed rate and adjustable rate mortgage loans that had a
principal balance at origination
of no more than $359,650 if a single-unit property (or $539,475 if
the property is located in Hawaii
or Alaska), $460,400 if a two-unit property (or $690,600 if the
property is located in Hawaii or
Alaska), $556,500 if a three-unit property (or $834,750 if the
property is located in Hawaii or
Alaska), or $691,600 if a four-unit property (or $1,037,400 if the
property is located in Hawaii or
Alaska) and second lien fixed rate mortgage loans that had a
principal balance at origination of no
more than $179,825 (or $269,725 if the property is located in
Hawaii or Alaska). Group II will
consist of fixed rate and adjustable rate mortgage loans that had
principal balances at origination
that may or may not conform to the criteria specified above for
mortgage loans included in Group I.
TOTAL DEAL SIZE
Approximately [$440,897,000]
ADMINISTRATIVE FEES
Fees aggregating 108 bps per annum (payable monthly) on the stated
principal balance of the Mortgage
Loans will be paid to
the Servicer, the Master Servicer, the Mortgage Insurer and the
Trustee.
CREDIT ENHANCEMENTS
1.
Mortgage Insurance
2.
Excess interest
3.
Over-Collateralization
4.
Subordination
MORTGAGE INSURANCE
As of the cut-off date, approximately 25% of the mortgage loans
will be covered by a mortgage
insurance policy issued by PMI Group, Inc. Each Policy will only
cover losses pursuant to formulas
described in such policy, down to 60% of the value of the related
mortgaged property.
EXCESS INTEREST
Excess interest cashflow will be available as credit
enhancement.
</TABLE>
-------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
6
<PAGE>
FREE WRITING PROSPECTUS FOR
(MERRILL LYNCH LOGO)
OWNIT, SERIES
2005-5
--------------------------------------------------------------------------------
<TABLE>
<S>
<C>
OVER-COLLATERALIZATION
The over-collateralization ("O/C") amount is equal to the excess of
the aggregate principal balance
of the Mortgage Loans over the aggregate principal balance of the
Certificates. On the Closing Date,
the over-collateralization amount will equal approximately 0.50% of
the aggregate principal balance
of the Mortgage Loans as of the Cut-Off Date. To the extent the
over-collateralization amount is
reduced below the over-collateralization target amount (i.e., 0.50%
of the aggregate principal
balance of the Mortgage Loans as of the Cut-Off Date), excess
cashflow will be directed to build O/C
until the over-collateralization target amount is restored.
Initial: Approximately 0.50% of the aggregate principal balance of
the Mortgage Loans as of the
Cut-Off Date
Target: 0.50% of the aggregate principal balance of the Mortgage
Loans as of the Cut-Off Date before
stepdown, 1.00% of the current balance of the Mortgage Loans after
stepdown
Floor: 0.50% of the aggregate principal balance as of the Cut-Off
Date
(PRELIMINARY AND SUBJECT TO REVISION)
</TABLE>
<TABLE>
<CAPTION>
SUBORDINATION (1):
CLASSES
RATING (S/M)
SUBORDINATION
-------
------------
-------------
<S>
<C>
<C>
<C>
Class A
[AAA/Aaa]
23.15%
Class M-1
[AA+/NR]
9.25%
Class M-2
[AA/NR]
6.15%
Class M-3
[AA-/NR]
5.25%
Class M-4
[A+/NR]
3.65%
Class M-5
[A/NR]
2.75%
Class M-6
[A-/NR]
2.05%
Class B-1
[BBB+/NR]
1.50%
Class B-2
[BBB/NR]
1.00%
Class B-3
[BBB-/NR]
0.50%
</TABLE>
<TABLE>
<CAPTION>
CLASS SIZES:
CLASSES
RATING (S/M)
CLASS SIZES
-------
------------
-----------
<S>
<C>
<C>
<C>
Class A-1
[AAA/Aaa]
76.85%
Class M-1
[AA+/NR]
13.90%
Class M-2
[AA/NR]
3.10%
Class M-3
[AA-/NR]
0.90%
Class M-4
[A+/NR]
1.60%
Class M-5
[A/NR]
0.90%
Class M-6
[A-/NR]
0.70%
Class B-1
[BBB+/NR]
0.55%
Class B-2
[BBB/NR]
0.50%
Class B-3
[BBB-/NR]
0.50%
</TABLE>
<TABLE>
<S>
<C>
INTEREST ACCRUAL
Interest will initially accrue from the Closing Date to (but
excluding) the first Distribution Date,
and thereafter, from the prior Distribution Date to (but excluding)
the current Distribution Date.
</TABLE>
(1) The subordination includes the
initial over-collateralization level of
approximately
0.50%.
-------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
7
<PAGE>
FREE WRITING PROSPECTUS FOR
(MERRILL LYNCH LOGO)
OWNIT, SERIES 2005-5
--------------------------------------------------------------------------------
<TABLE>
<S>
<C>
COUPON STEP UP
If the 10% optional termination does not occur on the first
distribution date on which it is
possible, (i) the margin on each of the Class A Certificates will
increase to 2x its respective
margin, and (ii) the margin on each of the Subordinate Certificates
will increase to 1.5x its
respective margin.
AVAILABLE FUNDS CAPS
Class A-1 Certificates: The per annum rate equal to (A) 12 times
the quotient of (x) the total
scheduled interest based on the Group I Net Mortgage Rates in
effect on the related due date,
divided by (y) the aggregate principal balance of the Group I
Mortgage Loans as of the first day of
the applicable accrual period, multiplied by 30 and divided by the
actual number of days in the
related accrual period.
Class A-2 Certificates: The per annum rate equal to (A) 12 times
the quotient of (x) the total
scheduled interest based on the Group II Net Mortgage Rates in
effect on the related due date,
divided by (y) the aggregate principal balance of the Group II
Mortgage Loans as of the first day of
the applicable accrual period, multiplied by 30 and divided by the
actual number of days in the
related accrual period.
Subordinate Certificates: The per annum rate equal to the weighted
average (weighted in proportion
to the results of subtracting from the aggregate principal balance
of each Loan Group the current
principal balance of the related Class A Certificates) of the Class
A-1 Available Funds Cap and the
Class A-2 Available Funds Cap.
"Net Mortgage Rate" means, with respect to any mortgage loan the
mortgage rate on such mortgage loan
less the administrative fees.
CAP CONTRACTS
The Certificates will each have the benefit of one of the three cap
contracts as specified below:
</TABLE>
<TABLE>
<CAPTION>
BEGINNING DISTRIBUTION 1ML STRIKE, UPPER
CLASS
NUMBER OF MONTHS
DATE
COLLAR
-----
----------------
----
------
<S>
<C>
<C>
<C>
Class A-1 Certificates
38
January 2006
[9.76 %]
Class A-2 Certificates
38
January 2006
[9.76 %]
Subordinate Certificates
38
January 2006
[9.18 %]
</TABLE>
<TABLE>
<S>
<C>
Payments received on the related cap contract will be available to
pay amounts to the holders of the
Certificates, in respect of shortfalls arising as a result of the
applicable Available Funds Cap, as
described herein (except to the extent attributable to the fact
that Realized Losses are not
allocated to the Class A Certificates after the Subordinate
Certificates have been written down to
zero).
MAXIMUM RATE CAPS
The pass-through rates of each of the Offered Certificates will
also be subject to a related
"Maximum Rate Cap", which will be calculated in the same manner as
the related Available Funds Cap,
but based on the net maximum mortgage rate rather than the net
mortgage rate. Any interest shortfall
due to the
Maximum Rate Caps will not be reimbursed.
SHORTFALL REIMBURSEMENT
If on any Distribution Date the pass-through rate for any class of
Certificates is limited by the
related Available Funds Cap, the amount of such interest that would
have been distributed if the
pass-through rate had not been so limited by the related Available
Funds Cap, up to but not
exceeding the greater of (i) the related Maximum Rate Cap and (ii)
the lesser of (A) One Month LIBOR
and (B) the applicable rate for the related class or classes of
certificates shown under the
heading, "1ML Strike, Upper Collar", under the heading, "Cap
Contracts" shown above), and the
aggregate of such shortfalls from previous Distribution Dates
together with accrued interest at the
pass-through rate will be carried over to the next Distribution
Date until paid (herein referred to
as "Carryover"). Such reimbursement will be paid only on a
subordinated basis. No such Carryover
with respect to a Class will be paid to such Class once the
Certificate principal balance thereof
has been reduced to zero.
</TABLE>
-------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
8
<PAGE>
FREE WRITING
PROSPECTUS FOR
(MERRILL LYNCH LOGO)
OWNIT, SERIES 2005-5
--------------------------------------------------------------------------------
<TABLE>
<S>
<C>
CASHFLOW PRIORITY
1. Administrative Fees.
2. Available interest funds, as follows: monthly interest,
including any unpaid monthly interest
from prior months, concurrently, to the Class A Certificates; then
monthly interest, including
any unpaid monthly interest from prior months, to the Class M-1
Certificates, then to the Class
M-2 Certificates, then to the Class M-3 Certificates, then to the
Class M-4 Certificates, then to
the Class M-5 Certificates, and then to the Class M-6 Certificates,
then to the Class B-1
Certificates, then to the Class B-2 Certificates, and then to the
Class B-3 Certificates.
3. Available principal funds, as follows: monthly principal to the
Class A Certificates as described
under "PRINCIPAL PAYDOWN", then monthly principal to the Class M-1
Certificates, then monthly
principal to the Class M-2 Certificates, then monthly principal to
the Class M-3 Certificates,
then monthly principal to the Class M-4 Certificates, then monthly
principal to the Class M-5
Certificates, then monthly principal to the Class M-6 Certificates,
then monthly principal to the
Class B-1 Certificates, then monthly principal to the Class B-2
Certificates, and then monthly
principal to the Class B-3 Certificates, in each case as described
under "PRINCIPAL PAYDOWN."
4. Excess interest in the order as described under "PRINCIPAL
PAYDOWN" if necessary to restore O/C
to the required level.
5. Excess interest to pay subordinate principal shortfalls.
6. Excess interest to pay Carryover resulting from imposition of
the related Available Funds Cap.
7. Any remaining amount will be paid in accordance with the Pooling
and Servicing Agreement and will
not be available for payment to holders of the Offered
Certificates.
Payments received on the Cap Contracts will be available to the
related Certificates to pay amounts
in respect of
Carryovers other than any Carryovers resulting from the fact that
realized losses are
not allocated to the Class A Certificates after the Class M and
Class B Certificates have been
written
down to zero. Any excess of amounts received on the related Cap
Contracts over amounts
needed to pay such Carryovers on the related Certificates will be
distributed in respect of other
classes of certificates not described herein.
</TABLE>
-------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
9
<PAGE>
FREE WRITING PROSPECTUS FOR
(MERRILL LYNCH LOGO)
OWNIT, SERIES 2005-5
--------------------------------------------------------------------------------
PRINCIPAL PAYDOWN
IF THE SUBORDINATE CLASS PRINCIPAL
DISTRIBUTION TEST IS NOT MET:
1) The Group I Principal
Distribution Percentage of (i) scheduled and
unscheduled principal received from the Mortgage Loans and (ii)
excess
spread to the extent distributable as principal to replenish O/C
to
the required level will be paid to the Class A-1 Certificates.
2) The Group II Principal
Distribution Percentage of (i) scheduled and
unscheduled principal received from the Mortgage Loans and (ii)
excess
spread to the extent distributable as principal to replenish O/C
to
the required level will be paid to the Class A-2 Certificates.
Group I
Principal Distribution Percentage means with respect to any
Distribution
Date, the fraction expressed as a percentage, the numerator of
which is the
amount of scheduled and unscheduled principal received with
respect to Group
I Mortgage Loans and distributable on such Distribution
Date, and the
denominator of which is the amount of scheduled and
unscheduled
principal received from all of the Mortgage Loans and
distributable on such
Distribution Date.
Group II
Principal Distribution Percentage means with respect to any
Distribution
Date, the fraction expressed as a percentage, the numerator of
which is the
amount of scheduled and unscheduled principal received with
respect to Group
II Mortgage Loans and distributable on such Distribution
Date, and the
denominator of which is the amount of scheduled and
unscheduled
principal received from all of the Mortgage Loans and
distributable on
such Distribution Date.
Principal
distributions allocated to the Class A-2 Certificates will be
distributed pro
rata between the Class A-2A and Class A-2B Certificates;
provided
however, that on and after the Distribution Date on which the
aggregate
Certificate Principal Balance of Subordinate Certificates and
the
Class C
Certificates have been reduced to zero, any principal
distributions
will first be
distributed to the Class A-2A Certificates until the
Certificate
principal balance thereof has been reduced to zero, and then to
the Class A-2B
Certificates until the Certificate principal balance thereof
has been reduced
to zero.
After the
Certificate principal balance of either the Class A-1 or Class
A-2 Certificates
has been reduced to zero, the amounts remaining referred
to in (1) or (2)
above, as applicable, will be distributed to the Class A-1
or Class A-2
Certificates (i.e., whichever such class or classes remain
outstanding), as
the case may be. After the aggregate Certificate principal
balance of each
of the Class A-1 and Class A-2 Certificates has been
reduced to zero,
the amounts remaining referred to in (1) and (2) above
will be
distributed sequentially to the Class M-1, Class M-2, Class
M-3,
Class M-4, Class
M-5, Class M-6, Class B-1, Class B-2 and Class B-3
Certificates in
each case, until reduced to zero.
-------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
10
<PAGE>
FREE WRITING PROSPECTUS FOR
(MERRILL LYNCH LOGO)
OWNIT, SERIES 2005-5
--------------------------------------------------------------------------------
IF THE SUBORDINATE CLASS PRINCIPAL
DISTRIBUTION TEST IS MET:
All Certificates
will be entitled to receive payments of principal, in the
following order
of priority: first to the Class A Certificates, second to
the Class M-1
Certificates, third to the Class M-2 Certificates, fourth to
the Class M-3
Certificates, fifth to the Class M-4 Certificates, sixth to
the Class M-5
Certificates, seventh to the Class M-6 Certificates, eighth
to the Class B-1
Certificates, ninth to the Class B-2 Certificates, and
tenth to the
Class B-3 Certificates, in each case up to amounts necessary
to maintain the
subordination for each class at its required level. Such
required levels
of subordination are approximately as follows:
<TABLE>
<S>
<C>
CLASS A
46.30%*
CLASS M-1
18.50%*
CLASS M-2
12.30%*
CLASS M-3
10.50%*
CLASS M-4
7.30%*
CLASS M-5
5.50%*
CLASS M-6
4.10%*
CLASS B-1
3.00%*
CLASS B-2
2.00%*
CLASS B-3
1.00%*
</TABLE>
* includes
overcollateralization of 0.50%
-------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
11
<PAGE>
FREE WRITING PROSPECTUS FOR
(MERRILL LYNCH LOGO)
OWNIT, SERIES 2005-5
--------------------------------------------------------------------------------
THE SUBORDINATE CLASS PRINCIPAL
DISTRIBUTION TEST IS MET IF:
i) The Distribution Date is on
or after the January 2009 Distribution Date;
ii) The applicable Subordinate Class
Principal Distribution Date has occurred
(as described
below); and
iii) A Stepdown Loss Trigger Event does not
exist.
<TABLE>
<S>
<C>
SUBORDINATE CLASS PRINCIPAL The first
Distribution Date on which the senior specified enhancement
percentage (i.e., the sum of
DISTRIBUTION DATE
the outstanding principal balance of the Subordinate Certificates
and the O/C amount divided by the
aggregate stated principal balance of the Mortgage Loans, as of the
end of the related due period)
is greater than or equal to the Senior Specified Enhancement
Percentage (including O/C), which is
equal to two times the initial Class A subordination
percentage.
SENIOR SPECIFIED ENHANCEMENT PERCENTAGE:
46.30%
or
(22.65%+0.50%)*2
STEPDOWN LOSS TRIGGER EVENT The
situation that exists with respect to any Distribution Date after
the Stepdown Date, if (a) the
<PRELIMINARY AND SUBJECT
quotient of (1) the aggregate Stated Principal Balance of all
Mortgage Loans 60 or more days
TO REVISION>
delinquent, measured on a rolling three month basis (including
Mortgage Loans in foreclosure and
REO Properties) and (2) the Stated Principal Balance of all the
Mortgage Loans as of the preceding
Servicer Remittance Date, equals or exceeds the product of (i) [TBD
%] and (ii) the senior
specified enhancement percentage or (b) the quotient (expressed as
a percentage)of (1) the
aggregate Realized Losses incurred from the Cut-off Date through
the last day of the calendar month
preceding such Distribution Date and (2) the aggregate principal
balance of the Mortgage Loans as
of the Cut-off Date exceeds the Required Loss Percentage shown
below.
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTION DATE OCCURRING
REQUIRED LOSS PERCENTAGE
---------------------------
------------------------
<S>
<C>
January 2009 - December 2009
[TBD %] with respect to January 2009, plus an additional 1/12th
of [TBD %] for each month thereafter
January 2010 - December 2010
[TBD %] with respect to January 2010, plus an additional 1/12th
of [TBD %] for each month thereafter
January 2011 - December 2011
[TBD %] with respect to January 2011, plus an additional 1/12th
of [TBD %] for each month thereafter
January 2012 and thereafter
[TBD %]
</TABLE>
<TABLE>
<S>
<C>
<PRELIMINARY AND SUBJECT TO REVISION>
PROSPECTUS
The Offered Certificates will be offered pursuant to a Prospectus
which includes a Prospectus
Supplement (together, the "Prospectus"). Complete information with
respect to the Offered
Certificates and the Mortgage Loans is contained in the Prospectus.
The foregoing is qualified in
its entirety by the information appearing in the Prospectus. To the
extent that the foregoing is
inconsistent with the Prospectus, the Prospectus shall govern in
all respects. Sales of the Offered
Certificates may not be consummated unless the purchaser has
received the Prospectus.
MORTGAGE LOAN TABLES
The following tables describe the mortgage loans and the related
mortgaged properties as of the
close of business on the Cut-off Date. The sum of the columns below
may not equal the total
indicated due to rounding.
</TABLE>
-------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
12
<PAGE>
FREE WRITING PROSPECTUS FOR
OWNIT, SERIES 2005-5
(MERRILL LYNCH LOGO)
TOTAL COLLATERAL SUMMARY
--------------------------------------------------------------------------------
<TABLE>
<S>
<C>
Aggregate Outstanding Principal Balance
$465,328,742
Aggregate Original Principal Balance
$465,670,769
Number of Mortgage Loans
2,866
</TABLE>
<TABLE>
<CAPTION>
MINIMUM
MAXIMUM
AVERAGE (1)
-------
-------
-----------
<S>
<C>
<C>
<C>
Original Principal Balance
$16,000
$995,000
$162,481
Outstanding Principal Balance
$15,980
$995,000
$162,362
</TABLE>
<TABLE>
<CAPTION>
MINIMUM
MAXIMUM
WEIGHTED AVERAGE (2)
-------
-------
--------------------
<S>
<C>
<C>
<C>
Original Term (mos)
180
360
358
Stated remaining Term (mos)
175
358
355
Loan Age (mos)
2
8
3
Current Interest Rate
4.875%
11.750%
7.189%
Initial Interest Rate Cap(4)
3.000%
3.000%
3.000%
Periodic Rate Cap(4)
1.000%
1.000%
1.000%
Gross Margin(4)
3.875%
8.999%
6.077%
Maximum Mortgage Rate(4)
10.875%
15.999%
13.060%
Minimum Mortgage Rate(4)
4.875%
9.999%
7.060%
Months to Roll(4)
16
58
24
Original Loan-to-Value
14.48%
100.00%
82.93%
Credit Score (3)
503
802
646
</TABLE>
<TABLE>
<CAPTION>
EARLIEST
LATEST
--------
------
<S>
<C>
<C>
Maturity Date
07/01/2020
10/01/2035
</TABLE>
<TABLE>
<CAPTION>
LIEN POSITION
PERCENT OF MORTGAGE POOL
-------------
------------------------
<S>
<C>
1st Lien
96.88%
2nd Lien
3.12%
</TABLE>
<TABLE>
<CAPTION>
OCCUPANCY
PERCENT OF MORTGAGE POOL
-------------
------------------------
<S>
<C>
Primary
91.85%
Second Home
1.17%
Investment
6.99%
</TABLE>
<TABLE>
<CAPTION>
LOAN TYPE
PERCENT OF MORTGAGE POOL
-------------
------------------------
<S>
<C>
Fixed Rate
8.58%
ARM
91.42%
</TABLE>
<TABLE>
<CAPTION>
AMORTIZATION TYPE
PERCENT OF MORTGAGE POOL
-------------
------------------------
<S>
<C>
Fully Amortizing
34.53%
Interest Only
64.72%
Balloon
0.75%
</TABLE>
<TABLE>
<CAPTION>
YEAR OF ORIGINATION
PERCENT OF MORTGAGE POOL
-------------
------------------------
<S>
<C>
2005
100.00%
</TABLE>
<TABLE>
<CAPTION>
LOAN PURPOSE
PERCENT OF MORTGAGE POOL
-------------
------------------------
<S>
<C>
Purchase
65.48%
Refinance - Rate/Term
4.32%
Refinance - Cashout
30.20%
</TABLE>
<TABLE>
<CAPTION>
PROPERTY TYPE
PERCENT OF MORTGAGE POOL
-------------
------------------------
<S>
<C>
Single Family
73.88%
Planned Unit
Development
16.20%
Condominium
6.50%
Two- to Four-Family
3.42%
</TABLE>
(1) Sum of Principal Balance divided
by total number of loans.
(2) Weighted by Outstanding Principal
Balance.
(3) Minimum and Weighting only for
loans with scores.
(4) ARM Loans only
-------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
13
<PAGE>
FREE WRITING PROSPECTUS FOR
OWNIT, SERIES 2005-5
(MERRILL LYNCH LOGO)
TOTAL COLLATERAL SUMMARY
--------------------------------------------------------------------------------
MORTGAGE RATES
<TABLE>
<CAPTION>
NUMBER AGGREGATE
WEIGHTED AVERAGE
WEIGHTED
OF
PRINCIPAL PERCENT OF
WEIGHTED
AVERAGE
PRINCIPAL
AVERAGE
PERCENT
RANGE OF
MORTGAGE BALANCE
MORTGAGE AVERAGE
CREDIT BALANCE
ORIGINAL
FULL
PERCENT
MORTGAGE RATES
LOANS
OUTSTANDING POOL
COUPON SCORE
OUTSTANDING LTV
DOC
IO
--------------
-----
----------- ----
------ -----
----------- ---
---
--
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
5.500% or less
45
$14,229,051
3.06% 5.295%
706
$316,201
78.18% 100.00%
88.34%
5.501% to 6.000%
62 13,944,244
3.00
5.866 678
224,907
80.51
95.73 75.71
6.001% to 6.500% 266
59,593,318
12.81
6.359 666
224,035
79.65
79.20 81.50
6.501% to 7.000% 807
161,948,941
34.80
6.857 660
200,680
81.39
68.66 72.04
7.001% to 7.500% 637
107,584,374
23.12
7.320 629
168,892
82.41
77.26 63.26
7.501% to 8.000% 365
54,783,771
11.77
7.783 622
150,093
84.66
78.14 53.18
8.001% to 8.500% 170
20,459,591
4.40
8.306 618
120,351
88.65
80.54 39.98
8.501% to 9.000% 130
14,981,109
3.22
8.777 611
115,239
91.09
76.40 42.52
9.001% to 9.500%
44
4,153,723
0.89
9.278 606
94,403
93.60
80.81 23.64
9.501% to 10.000% 81
3,723,710
0.80
9.893 632
45,972
98.68
85.80
2.09
10.001% to 10.500% 36
1,516,477
0.33 10.382
643
42,124
99.50
67.64
0.00
10.501% to 11.000% 166
6,271,676
1.35 10.891
620
37,781
99.77
92.10
0.00
11.001% to 11.500% 50
1,905,496
0.41
11.305
606
38,110
99.87
92.77
0.00
11.501% to 12.000% 7
233,261
0.05 11.737
590
33,323 100.00
89.70
0.00
-----
------------
------ ------
---
-------- ------
----- -----
TOTAL:
2,866
$465,328,742
100.00% 7.189%
646
$162,362
82.93% 76.32%
64.72%
=====
============
====== ======
===
======== ======
===== =====
</TABLE>
As of the Cut-off Date, Mortgage Rates
borne by the Mortgage Loans ranged from
4.875% per annum to 11.750% per annum and
the weighted average Mortgage Rate of
the Mortgage Loans was approximately 7.189%
per annum.
REMAINING MONTHS TO STATED MATURITY
<TABLE>
<CAPTION>
NUMBER
AGGREGATE
WEIGHTED AVERAGE
WEIGHTED
OF
PRINCIPAL PERCENT OF
WEIGHTED
AVERAGE
PRINCIPAL
AVERAGE
PERCENT
RANGE OF
MORTGAGE BALANCE
MORTGAGE AVERAGE
CREDIT BALANCE
ORIGINAL
FULL
PERCENT
REMAINING TERMS (MONTHS) LOANS OUTSTANDING
POOL
COUPON SCORE
OUTSTANDING LTV
DOC
IO
------------------------ ----- -----------
----
------ -----
----------- ---
---
--
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
169 to 180
105
$4,722,278
1.01% 9.647%
630
$44,974
91.86%
90.49% 0.00%
229 to 240
1
107,327 0.02
7.875
656 107,327
93.65
100.00
0.00
349 to 360
2,760
460,499,137 98.96
7.164
646 166,848
82.84 76.17
65.40
-----
------------ ------
-----
---
-------- -----
-----
-----
TOTAL:
2,866
$465,328,742 100.00%
7.189%
646
$162,362 82.93%
76.32% 64.72%
=====
============ ======
=====
===
======== =====
=====
=====
</TABLE>
As of the Cut-off Date, the remaining term
to stated maturity of the Mortgage
Loans ranged from 175 months to 358 months
and the weighted average term to
stated maturity of the Mortgage Loans was
approximately 355 months.
-------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
14
<PAGE>
FREE WRITING PROSPECTUS FOR
OWNIT, SERIES 2005-5
(MERRILL LYNCH LOGO)
TOTAL COLLATERAL SUMMARY
--------------------------------------------------------------------------------
ORIGINAL MORTGAGE LOAN PRINCIPAL
BALANCES
<TABLE>
<CAPTION>
NUMBER AGGREGATE
WEIGHTED AVERAGE
WEIGHTED
OF
PRINCIPAL
PERCENT OF
WEIGHTED AVERAGE
PRINCIPAL
AVERAGE
PERCENT
RANGE OF ORIGINAL MORTGAGE MORTGAGE BALANCE
MORTGAGE AVERAGE
CREDIT
BALANCE
ORIGINAL
FULL
PERCENT
LOAN PRINCIPAL BALANCES LOANS
OUTSTANDING POOL
COUPON SCORE
OUTSTANDING
LTV
DOC
IO
----------------------- -----
----------- ----
------ -----
----------- ---
---
--
<S>
<C> <C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
$50,000 or less
322
$11,260,030
2.42% 10.419%
631
$34,969
98.90%
88.42% 0.84%
$50,001 to $100,000
656 51,589,228
11.09
7.783 630
78,642
86.95
91.40 26.22
$100,001 to $150,000
675 84,364,323
18.13
7.246 636
124,984
83.10
87.60 50.87
$150,001 to $200,000
455 79,671,486
17.12
7.138 639
175,102
82.54
79.82 59.38
$200,001 to $250,000
252 56,295,654
12.10
6.986 642
223,395
81.52
78.89 70.47
$250,001 to $300,000
171 46,599,717
10.01
6.979 645
272,513
80.72
67.23 80.11
$300,001 to $350,000
110 35,712,781
7.67
6.930 660
324,662
82.61
66.14 83.73
$350,001 to $400,000
88 32,896,783
7.07
6.968 666
373,827
81.11
59.14 86.36
$400,001 to $450,000
62 26,345,089
5.66
6.861 659
424,921
81.12
45.11 93.58
$450,001 to $500,000
33 15,663,504
3.37
6.778 675
474,652
80.34
51.43 93.90
$500,001 to $550,000
16
8,356,222 1.80
6.831 672
522,264
82.33
69.13 94.00
$550,001 to $600,000
11
6,229,356 1.34
6.327 679
566,305
85.71
91.16 81.73
$600,001 to $650,000
8
5,053,670 1.09
6.630 660
631,709
79.24
100.00 87.17
$650,001 to $700,000
3
1,975,200 0.42
5.956 687
658,400
80.00
100.00 100.00
$700,001 to $750,000
2
1,444,700 0.31
6.935 630
722,350
80.07
100.00 100.00
$850,001 to $900,000
1
876,000 0.19
6.990 733
876,000
80.00
100.00 100.00
$950,001 to $1,000,000
1
995,000 0.21
6.625 702
995,000
75.09
100.00 100.00
-----
------------ ------
----- ---
--------
-----
----- -----
TOTAL:
2,866
$465,328,742 100.00%
7.189%
646
$162,362
82.93%
76.32% 64.72%
=====
============ ======
===== ===
========
=====
===== =====
</TABLE>
As of the Cut-off Date, the outstanding
principal balances of the Mortgage Loans
ranged from approximately $15,980 to
approximately $995,000 and the average
outstanding principal balance of the
Mortgage Loans was approximately $162,362.
PRODUCT TYPES
<TABLE>
<CAPTION>
NUMBER AGGREGATE
WEIGHTED AVERAGE
WEIGHTED
OF
PRINCIPAL PERCENT OF
WEIGHTED
AVERAGE
PRINCIPAL
AVERAGE PERCENT
MORTGAGE BALANCE
MORTGAGE AVERAGE
CREDIT BALANCE
ORIGINAL
FULL
PERCENT
PRODUCT TYPES
LOANS
OUTSTANDING POOL
COUPON SCORE
OUTSTANDING LTV
DOC
IO
-------------
-----
----------- ----
------ -----
----------- ---
---
--
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
15 Year Fixed Loans
10
$1,234,597
0.27% 6.692%
632
$123,460
69.32% 100.00%
0.00%
20 Year Fixed Loans
1
107,327 0.02
7.875
656 107,327
93.65
100.00
0.00
30 Year Fixed Loans
439
35,112,624 7.55
8.416
635
79,983
86.39 91.22
11.33
2/28 LIBOR Loans
1,918
354,184,127 76.11
7.106
644 184,663
82.31 72.60
70.28
3/27 LIBOR Loans
259
42,455,090 9.12
6.915
655 163,919
84.26 83.64
63.17
4/26 LIBOR Loans
30
4,038,365 0.87
7.252
657 134,612
90.68 97.88
50.85
5/25 LIBOR Loans
114
24,708,932 5.31
6.634
670 216,745
81.73 89.66
78.57
Balloon Loans
95
3,487,681 0.75
10.693
629
36,712
99.84 87.13
0.00
-----
------------ ------
-----
--- --------
-----
----- -----
TOTAL:
2,866
$465,328,742 100.00%
7.189%
646
$162,362
82.93%
76.32%
64.72%
=====
============ ======
=====
=== ========
=====
===== =====
</TABLE>
-------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
15
<PAGE>
FREE WRITING PROSPECTUS FOR
OWNIT, SERIES 2005-5
(MERRILL LYNCH LOGO)
TOTAL COLLATERAL SUMMARY
--------------------------------------------------------------------------------
AMORTIZATION TYPE
<TABLE>
<CAPTION>
NUMBER AGGREGATE
WEIGHTED AVERAGE
WEIGHTED
OF
PRINCIPAL PERCENT OF
WEIGHTED
AVERAGE
PRINCIPAL
AVERAGE
PERCENT
MORTGAGE BALANCE
MORTGAGE AVERAGE
CREDIT BALANCE
ORIGINAL
FULL
PERCENT
AMORTIZATION TYPE
LOANS
OUTSTANDING POOL
COUPON SCORE
OUTSTANDING LTV
DOC
IO
-----------------
-----
----------- ----
------ -----
----------- ---
---
--
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
Fully Amortizing
1,386
$160,672,720
34.53% 7.549%
635
$115,925
84.90%
81.82% 0.00%
Balloon
95
3,487,681
0.75 10.693
629
36,712
99.84 87.13
0.00
60 Month Interest-Only 1,367 297,191,553
63.87
6.952 652
217,404
81.72 73.03
100.00
120 Month Interest-Only 18
3,976,789
0.85
7.326 645
220,933
79.25 91.15
100.00
-----
------------
------
----- ---
--------
----- -----
-----
TOTAL:
2,866
$465,328,742
100.00% 7.189%
646
$162,362
82.93%
76.32% 64.72%
=====
============
======
===== ===
========
===== =====
=====
</TABLE>
ADJUSTMENT TYPE
<TABLE>
<CAPTION>
NUMBER AGGREGATE
WEIGHTED AVERAGE
WEIGHTED
OF
PRINCIPAL PERCENT OF
WEIGHTED
AVERAGE
PRINCIPAL
AVERAGE
PERCENT
MORTGAGE BALANCE
MORTGAGE AVERAGE
CREDIT BALANCE
ORIGINAL
FULL
PERCENT
ADJUSTMENT TYPE
LOANS
OUTSTANDING POOL
COUPON SCORE
OUTSTANDING LTV
DOC
IO
---------------
-----
----------- ----
------ -----
----------- ---
---
--
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
ARM
2,321
$425,386,513
91.42% 7.061%
647
$183,277 82.55%
74.93%
69.86%
Fixed Rate
545 39,942,229
8.58
8.560 635
73,288 87.06
91.16
9.96
-----
------------
------
----- ---
-------- -----
----- -----
TOTAL:
2,866
$465,328,742
100.00% 7.189%
646
$162,362 82.93%
76.32%
64.72%
=====
============
======
===== ===
======== =====
===== =====
</TABLE>
------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
16
<PAGE>
FREE
WRITING PROSPECTUS FOR
OWNIT, SERIES 2005-5
(MERRILL LYNCH LOGO)
TOTAL COLLATERAL SUMMARY
--------------------------------------------------------------------------------
STATE DISTRIBUTIONS OF MORTGAGED
PROPERTIES
<TABLE>
<CAPTION>
NUMBER AGGREGATE
WEIGHTED AVERAGE
WEIGHTED
OF
PRINCIPAL PERCENT OF
WEIGHTED
AVERAGE
PRINCIPAL
AVERAGE
PERCENT
GEOGRAPHIC
MORTGAGE BALANCE
MORTGAGE AVERAGE
CREDIT BALANCE
ORIGINAL
FULL
PERCENT
DISTRIBUTION
LOANS
OUTSTANDING POOL
COUPON SCORE
OUTSTANDING LTV
DOC
IO
------------
-----
----------- ----
------ -----
----------- ---
---
--
<S>
<C>
<C>
<C>
<C>
<C> <C>
<C>
<C>
<C>
Arizona
146
$23,470,714
5.04% 7.196%
637 $160,758
81.65%
82.42% 71.98%
California
600
174,355,188 37.47
6.893
660
290,592
80.02 60.55
86.02
Colorado
198
26,944,624
5.79
7.091
639
136,084
83.82 90.82
67.59
Florida
118
16,280,726 3.50
7.345
636
137,972
81.31 71.85
52.81
Georgia
153
20,204,893 4.34
7.351
629
132,058
83.18 86.02
54.44
Idaho
106
11,871,314 2.55
7.209
636
111,994
82.32 84.33
49.51
Illinois
3
378,657 0.08
6.838
633
126,219
87.53
100.00
0.00
Indiana
26
2,815,889 0.61
8.140
626
108,303
94.23
100.00
7.81
Iowa
19
1,702,225 0.37
7.811
630
89,591
91.23 94.70
9.16
Kansas
77
7,610,016 1.64
7.462
634
98,831
89.22
99.04
20.52
Kentucky
70
7,118,833 1.53
7.826
630
101,698
90.27 94.38
41.68
Maryland
2
527,693 0.11
7.375
553
263,846
74.12
100.00
0.00
Michigan
76
7,847,582 1.69
7.662
630
103,258
86.03 82.88
33.14
Minnesota
56
8,555,376 1.84
7.143
648
152,775
83.65 88.81
71.18
Mississippi
5
654,729 0.14
7.429
641
130,946
85.33
100.00 73.37
Missouri
83
8,528,006 1.83
7.530
639
102,747
88.25 95.00
41.24
Montana
1
179,554 0.04
6.990
644
179,554 100.00
100.00
0.00
Nebraska
26
2,667,982 0.57
7.487
622
102,615
86.90 93.26
20.08
Nevada
23
5,439,934 1.17
7.134
647
236,519
82.04 83.14
95.10
North Carolina
41
4,876,601 1.05
7.452
630
118,941
80.63 77.11
52.89
Ohio
391
40,599,538 8.72
7.660
631
103,835
89.59 90.95
33.75
Oregon
140
22,607,598 4.86
7.167
652
161,483
83.68 85.72
61.95
South Carolina
23
2,838,031 0.61
7.562
634
123,393
85.34 84.95
30.08
Tennessee
95
10,285,219 2.21
7.364
624
108,265
80.97 96.87
47.02
Utah
73
8,767,711 1.88
7.308
641
120,106
84.69 83.24
60.46
Washington
231
39,116,101 8.41
7.225
648
169,334
83.08
76.88
62.03
Wisconsin
84
9,084,008 1.95
7.834
641
108,143
86.41 79.68
19.46
-----
------------ ------
-----
--- --------
----- -----
-----
TOTAL:
2,866
$465,328,742 100.00%
7.189%
646 $162,362
82.93%
76.32% 64.72%
=====
============ ======
=====
=== ========
===== =====
=====
</TABLE>
No more than approximately 0.93% of the
Mortgage Loans will be secured by
mortgaged properties located in any one zip
code.
------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
16
<PAGE>
FREE WRITING PROSPECTUS FOR
OWNIT, SERIES 2005-5
(MERRILL LYNCH LOGO)
TOTAL COLLATERAL SUMMARY
--------------------------------------------------------------------------------
ORIGINAL LOAN-TO-VALUE RATIOS
<TABLE>
<CAPTION>
NUMBER AGGREGATE
WEIGHTED AVERAGE
WEIGHTED
OF
PRINCIPAL PERCENT OF
WEIGHTED
AVERAGE
PRINCIPAL AVERAGE
PERCENT
RANGE OF ORIGINAL
MORTGAGE BALANCE
MORTGAGE AVERAGE
CREDIT BALANCE
ORIGINAL FULL
PERCENT
LOAN-TO-VALUE RATIOS LOANS
OUTSTANDING
POOL
COUPON SCORE
OUTSTANDING LTV
DOC
IO
-------------------- -----
-----------
----
------ -----
-----------
---
---
--
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
50.00% or less
25 $3,341,929
0.72% 7.237%
598
$133,677 40.75%
59.90%
37.97%
50.01% to 55.00%
12
1,914,587
0.41 7.164
598
159,549 53.38
71.93
58.18
55.01% to 60.00%
19
3,799,691
0.82 6.936
585
199,984 57.71
89.01
50.25
60.01% to 65.00%
29
5,094,879
1.09 7.146
613
175,685 62.69
77.30
61.66
65.01% to 70.00%
57 13,135,952
2.82 6.998
614
230,455 69.09
76.43
62.55
70.01% to 75.00%
97 20,433,216
4.39 7.052
634
210,652 74.11
61.72
70.99
75.01% to 80.00%
1,392 261,309,100
56.16 6.864
654
187,722 79.89
67.88
73.45
80.01% to 85.00%
108 22,628,390
4.86 7.428
617
209,522 84.43
90.07
63.99
85.01% to 90.00%
323 60,251,185
12.95 7.428
650
186,536 89.75
89.50
63.77
90.01% to 95.00%
130 24,682,750
5.30 7.195
641
189,867 94.44
96.05
61.28
95.01% to 100.00%
674 48,737,063
10.47
8.658
641
72,310 99.91
95.21
22.68
-----
------------
------ -----
---
-------- -----
-----
-----
TOTAL:
2,866
$465,328,742
100.00% 7.189%
646
$162,362 82.93%
76.32%
64.72%
=====
============
====== =====
===
======== =====
=====
=====
</TABLE>
As of the Cut-off Date, the Original
Loan-to-Value Ratios of the Mortgage Loans
ranged from 14.48% to 100.00%. With respect
to the Mortgage Loans which are in a
second lien position, this table was
calculated using the Combined Loan-to-Value
Ratio for such Mortgage Loans.
Approximately 3.12% of the Mortgage Loans are in
a second lien position and the weighted
average Combined Loan-to-Value Ratio for
such Mortgage Loans was approximately
99.70%. The weighted average Second Lien
ratio for the Mortgage Loans which are in a
second lien position was
approximately 19.82%.
LOAN PURPOSE
<TABLE>
<CAPTION>
NUMBER AGGREGATE
WEIGHTED AVERAGE
WEIGHTED
OF
PRINCIPAL PERCENT OF
WEIGHTED
AVERAGE PRINCIPAL
AVERAGE
PERCENT
MORTGAGE BALANCE
MORTGAGE AVERAGE
CREDIT BALANCE
ORIGINAL
FULL
PERCENT
LOAN PURPOSE
LOANS OUTSTANDING
POOL
COUPON SCORE
OUTSTANDING LTV
DOC
IO
------------
----- -----------
----
------ -----
----------- ---
---
--
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
Purchase
1,979
$304,705,724
65.48% 7.202%
657
$153,970 83.48%
71.12%
67.00%
Refinance - Cashout
769
140,506,987
30.20 7.146
625
182,714 81.78
86.55
60.13
Refinance - Rate Term 118
20,116,031
4.32 7.303
627
170,475 82.78
83.74 62.32
-----
------------
------ -----
---
-------- -----
-----
-----
TOTAL:
2,866
$465,328,742
100.00% 7.189%
646
$162,362 82.93%
76.32%
64.72%
=====
============
====== =====
===
======== =====
=====
=====
</TABLE>
PROPERTY TYPE
<TABLE>
<CAPTION>
NUMBER AGGREGATE
WEIGHTED AVERAGE
WEIGHTED
OF
PRINCIPAL PERCENT OF
WEIGHTED
AVERAGE
PRINCIPAL AVERAGE
PERCENT
MORTGAGE BALANCE
MORTGAGE AVERAGE
CREDIT BALANCE
ORIGINAL FULL
PERCENT
PROPERTY TYPE
LOANS OUTSTANDING
POOL
COUPON SCORE
OUTSTANDING LTV
DOC
IO
-------------
----- -----------
----
------ -----
----------- ---
---
--
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
Single Family
2,190
$343,802,031
73.88% 7.222%
643
$156,987 83.21%
77.06%
61.77%
Planned Unit Development 412 75,360,303
16.20 7.092
646
182,913 82.53
81.12
70.87
Condominium
185 30,235,241
6.50 7.163
662
163,434 81.74
62.17
79.05
Two- to Four-Family
79 15,931,167
3.42 7.008
672
201,660 81.10
64.62
72.04
-----
------------
------ -----
---
-------- -----
-----
-----
TOTAL:
2,866
$465,328,742
100.00% 7.189%
646
$162,362 82.93%
76.32%
64.72%
</TABLE>
------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
18
<PAGE>
FREE WRITING PROSPECTUS FOR
OWNIT, SERIES 2005-5
(MERRILL LYNCH LOGO)
TOTAL COLLATERAL SUMMARY
--------------------------------------------------------------------------------
DOCUMENTATION
<TABLE>
<CAPTION>
NUMBER AGGREGATE
WEIGHTED
AVERAGE WEIGHTED
OF
PRINCIPAL PERCENT OF
WEIGHTED
AVERAGE PRINCIPAL AVERAGE
PERCENT
MORTGAGE BALANCE
MORTGAGE AVERAGE
CREDIT BALANCE
ORIGINAL FULL
PERCENT
DOCUMENTATION
LOANS OUTSTANDING
POOL
COUPON SCORE OUTSTANDING
LTV
DOC
IO
-------------
----- -----------
----
------ -----
----------- ---
---
--
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
Full Documentation
2,063
$292,188,764
62.79% 7.196%
633
$141,633 84.19%
100.00%
60.22%
No Income Verification 419
94,823,130
20.38 7.225
692
226,308 78.79
0.00
73.33
Full Documentation -
Bank Statements
301 62,969,090
13.53 7.110
634
209,200 82.97
100.00 70.99
Limited Income
Verification
83 15,347,759
3.30 7.174
661
184,913 84.51
0.00
71.55
-----
------------
------ -----
---
-------- -----
-----
-----
TOTAL:
2,866
$465,328,742
100.00% 7.189%
646
$162,362 82.93%
76.32%
64.72%
=====
============
====== =====
===
======== =====
====== =====
</TABLE>
OCCUPANCY
<TABLE>
<CAPTION>
NUMBER AGGREGATE
WEIGHTED AVERAGE
WEIGHTED
OF
PRINCIPAL PERCENT OF
WEIGHTED
AVERAGE
PRINCIPAL AVERAGE
PERCENT
MORTGAGE BALANCE
MORTGAGE AVERAGE
CREDIT BALANCE
ORIGINAL FULL
PERCENT
OCCUPANCY
LOANS OUTSTANDING
POOL
COUPON SCORE
OUTSTANDING LTV
DOC
IO
---------
----- -----------
----
------ -----
----------- ---
---
--
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
Primary
2,673
$427,391,414
91.85% 7.185%
642
$159,892 82.72%
76.39%
63.95%
Investment
167 32,511,891
6.99 7.264
692
194,682 85.15
76.90
72.10
Second Home
26
5,425,437
1.17 7.078
703
208,671 86.62
68.05
81.23
-----
------------
------ -----
---
-------- -----
-----
-----
TOTAL:
2,866
$465,328,742
100.00% 7.189%
646
$162,362 82.93%
76.32%
64.72%
=====
============
====== =====
===
======== =====
====== =====
</TABLE>
The information set forth above with
respect to occupancy is based upon
representations of the related mortgagors
at the time of origination.
MORTGAGE LOANS AGE SUMMARY
<TABLE>
<CAPTION>
NUMBER AGGREGATE
WEIGHTED AVERAGE
WEIGHTED
OF
PRINCIPAL PERCENT OF
WEIGHTED
AVERAGE
PRINCIPAL AVERAGE
PERCENT
MORTGAGE LOANS AGE MORTGAGE BALANCE
MORTGAGE AVERAGE
CREDIT BALANCE
ORIGINAL FULL
PERCENT
(MONTHS)
LOANS OUTSTANDING
POOL
COUPON SCORE
OUTSTANDING LTV
DOC
IO
--------
----- -----------
----
------ -----
----------- ---
---
--
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
2
44 $6,301,850
1.35% 7.370%
638
$143,224 83.98%
80.56%
55.52%
3
1,612 260,464,976
55.97 7.362
642
161,579 83.56
75.21
61.36
4
1,178 190,975,255
41.04 7.006
649
162,118 82.16
76.84
68.77
5
27
6,632,774
1.43 5.647
689
245,658 79.77
97.96
86.45
6
3
775,387
0.17 6.393
664
258,462 79.90
100.00 77.66
8
2
178,500
0.04 6.774
676
89,250 88.17
100.00
100.00
-----
------------
------ -----
---
-------- -----
------ -----
TOTAL:
2,866
$465,328,742
100.00% 7.189%
646
$162,362 82.93%
76.32%
64.72%
=====
============
====== =====
===
======== =====
====== =====
</TABLE>
As of the Cut-off Date, the weighted
average age of the Mortgage Loans was
approximately 3 months.
------------------------------------------------------------------------------
RECIPIENTS SHOULD READ
THE INFORMATION CONTAINED IN THE IMPORTANT NOTICES
SECTION FOLLOWING THE COVER PAGE OF THIS FREE WRITING
PROSPECTUS.
19
<PAGE>
FREE WRITING PROSPECTUS FOR
OWNIT, SERIES 2005-5
(MERRILL LYNCH LOGO)
TOTAL COLLATERAL SUMMARY
--------------------------------------------------------------------------------
ORIGINAL PREPAYMENT PENALTY TERM
<TABLE>
<CAPTION>
NUMBER AGGREGATE
WEIGHTED AVERAGE
WEIGHTED
OF
PRINCIPAL PERCENT OF
WEIGHTED
AVERAGE
PRINCIPAL AVERAGE
PERCENT
ORIGINAL PREPAYMENT MORTGAGE BALANCE
MORTGAGE AVERAGE
CREDIT BALANCE
ORIGINAL FULL
PERCENT
PENALTY TERM
LOANS OUTSTANDING
POOL
COUPON SCORE
OUTSTANDING LTV
DOC
IO
------------
----- -----------
----
------ -----
----------- ---
---
--
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
None
532
$62,769,805
13.49% 7.763%
645 $117,988
84.90%
75.39%
45.24%
6 Months
63
6,801,481
1.46 7.300
635
107,960 89.16
98.92
22.96
12 Months
137 33,895,242
7.28 7.012
655
247,411 81.18
66.48
79.82
24 Months
1,433 249,933,044
53.71 7.115
643
174,412 82.17
74.73
71.26
36 Months
701
111,929,170
24.05 7.081
650
159,671 83.69 82.02
59.02
-----
------------
------
-----
--- --------
-----
-----
-----
TOTAL:
2,866
$465,328,742
100.00% 7.189%
646 $162,362
82.93%
76.32%
64.72%
=====
============
======
=====
=== ========
=====
=====
=====
</TABLE>
The weighted average prepayment penalty
term at origination with respect to the
Mortgage Loans having prepayment penalties
is approximately 26 months.
CREDIT SCORES
<TABLE>
<CAPTION>
NUMBER AGGREGATE
WEIGHTED AVERAGE
WEIGHTED
OF
PRINCIPAL PERCENT OF
WEIGHTED
AVERAGE
PRINCIPAL AVERAGE
PERCENT
RANGE OF
MORTGAGE BALANCE
MORTGAGE AVERAGE
CREDIT BALANCE
ORIGINAL FULL
PERCENT
CREDIT SCORES
LOANS OUTSTANDING
POOL
COUPON SCORE
OUTSTANDING LTV
DOC
IO
-------------
----- -----------
----
------ -----
----------- ---
---
--
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
503 to 525
6 $1,333,846
0.29% 8.083%
509
$222,308 58.37%
62.36%
49.47%
526 to 550
38
7,479,650
1.61 7.575
545
196,833 73.41
100.00 69.90
551 to 575
140
24,600,744
5.29 7.817
563
175,720 79.83
97.24
64.80
576 to 600
442 66,153,829
14.22 7.595
589
149,669 81.97
96.06
55.36
601 to 625
683 90,074,813
19.36 7.342
612
131,881 83.97
92.54
57.67
626 to 650
553 78,784,075
16.93 7.244
639
142,467 84.85
84.72
55.62
651 to 675
395 66,225,210
14.23 7.074
662
167,659 83.89
67.38
70.16
676 to 700
245 47,809,239
10.27 6.825
687
195,140 82.91
56.31
72.70
701 to 725
168 35,658,292
7.66 6.708
712
212,252 81.05
41.49
78.46
726 to 750
121 28,254,107
6.07 6.791
736
233,505 83.10
49.49
81.96
751 to 775
53 13,847,312
2.98 6.599
764
261,270 82.10
40.21
77.32
776 to 800
21
4,943,626
1.06 6.635
785
235,411 85.52
68.64
75.34
801 to 802
1
164,000
0.04 7.500
802
164,000 80.00
0.00
100.00
-----
------------
------ -----
---
-------- -----
-----
-----
TOTAL:
2,866
$465,328,742
100.00% 7.189%
646
$162,362 82.93%
76.32%
64.72%
=====
============
====== =====
===
======== =====
=====
=====
</TABLE>
![FREE WRITING PROSPECTUS FOR (MERRILL LYNCH LOGO) OWNIT, SERIES 2005-5 -------------------------------------------------------------------------------- ABS NEW TRANSACTION FREE WRITING PROSPECTUS $[440,897,000] (APPROXIMATE) OWNIT MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2005-5 MERRILL | Document Parties: MERRILL LYNCH MORTGAGE INVESTORS INC](/images/dev/header/icon-document.gif){kind=icon}
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