STRUCTURED ASSET MORTGAGE INVESTMENTS II
INC.
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2005-AR7, GROUP 1
COMPUTATIONAL MATERIALS: PRELIMINARY TERM
SHEET
--------------------------------------------------------------------------------
NEW ISSUE MARKETING MATERIALS
$383,030,000 (Approximate)
STRUCTURED ASSET MORTGAGE INVESTMENTS,
INC.
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2005-AR7, GROUP 1
STRUCTURED ASSET MORTGAGE INVESTMENTS II
INC.
Depositor
WELLS FARGO BANK MINNESOTA, NA
Master Servicer
JP MORGAN CHASE BANK
Trustee
BEAR, STEARNS & CO. INC.
Sole and Lead Underwriter
All statistical Information is preliminary
and based upon Information as of
November 1, 2005.
November 30, 2005
BEAR, STEARNS & CO. INC. ARM DESK (212)
272-4976
NOVEMBER 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Prospectus
Supplement.
Page 1
<PAGE>
STRUCTURED ASSET MORTGAGE INVESTMENTS II
INC.
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2005-AR7, GROUP 1
COMPUTATIONAL MATERIALS: PRELIMINARY TERM
SHEET
--------------------------------------------------------------------------------
$383,030,000 (approx)
STRUCTURED ASSET MORTGAGE INVESTMENTS II INC.
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2005-AR7, GROUP 1
<TABLE>
<CAPTION>
Expected Credit
Interest
Certificate Ratings
Enhanc.
Rate
Class
Size (1) (2)
%age(3) Type
Collateral Type
Certificate Type
------------------------------------------------------------------------------------------------------------------------------------
Offered Certificates
--------------------
<S>
<C>
<C>
<C> <C>
<C>
<C>
1-A-1
$305,838,000 AAA/Aaa
21.75% WAC
(4)
LIBOR Annual Monthly Avg. Super Senior PT
1-A-2
$56,673,000 AAA/Aaa
7.25% Floater (5)
LIBOR
Annual Monthly Avg. Senior Support
PT
1-X-1
Notional (6) AAA/Aaa
7.25% WAC (6)
LIBOR Annual Monthly Avg. Senior Interest
Only
1-M-X
Notional (7) AAﰆ
5.40% WAC (7)
LIBOR Annual Monthly Avg. Crossed Sub.
LIBOR Floater
1-B-1
$7,231,000 AAﰆ
5.40% Floater (8)
LIBOR
Annual Monthly Avg. Crossed Sub.
LIBOR Floater
1-B-2
$5,081,000 AA/Aa2
4.10% Floater (8)
LIBOR
Annual Monthly Avg. Crossed Sub.
LIBOR Floater
1-B-3
$4,299,000 A/A1
3.00% Floater (8)
LIBOR
Annual Monthly Avg. Crossed Sub.
LIBOR Floater
1-B-4
$3,908,000 BBB/Baa1
2.00%
Floater (8) LIBOR Annual Monthly
Avg.
Crossed Sub. LIBOR Floater
Non-Offered Certificates
------------------------
1-B-5
$3,322,000 BB/Ba2
1.15% Floater (8)
LIBOR
Annual Monthly Avg. Crossed Sub.
LIBOR Floater
1-B-6
$2,541,000 B/NR
0.50% Floater (8)
LIBOR
Annual Monthly Avg. Crossed Sub.
LIBOR Floater
1-B-7
$2,954,575 NR/NR
0.00% Floater (8)
LIBOR
Annual Monthly Avg. Crossed Sub.
LIBOR Floater
</TABLE>
(1) The Certificate Sizes are
approximate and subject to a 10% variance.
(2) The Offered Certificates will be
rated by Standard & Poor's ("S&P") and
Moody's
Investors Service ("Moody's").
(3) The Credit Enhancement percentages
are preliminary and are subject to
change based
upon the final pool as of the Cut-off Date and additional
rating agency
analysis.
(4) The Class 1-A-1 Certificates will
bear interest bear interest at a variable
rate (the
Pass-Through Rate) equal to the weighted average net rate of
the
Group 1 mortgage
loans. The Pass-Through Rate with respect to the first
Interest Accrual
Period is expected to be approximately 4.266%. The Class
1-A-1
Certificates will settle with accrued interest on a 30/360 basis
(24
day delay). The
certificate balances of the Class 1-A-1 Certificates are
subject to
increases due to the negative amortization feature of the
mortgage loans
in Group 1 as described herein.
(5) The Pass-Through Rate for the
Class 1-A-2 Certificates (together with the
Class 1-A-1
Certificates, the "Class 1-A Certificates") will be a floating
rate based on
One-Month LIBOR plus 0.380% subject to the lesser of (i) Net
Rate Cap (equal
to the weighted average Net Rate of the Group 1 Mortgage
Loans) and (ii)
10.50%. On the first distribution date after the Clean-Up
Call Date, such
class's margin will be multiplied by 2.0 times the original
certificate
margin. The Class 1-A-2 Certificates will settle flat and
accrue interest
on an Actual/360 basis. The Class 1-A-2 Certificates are
subject to
increases in their certificate principal balances as a result
of
the negative
amortization feature of the mortgage loans.
(6) The Class 1-X-1 Certificates will
bear interest at a variable pass-through
rate equal to
the greater of (i) zero and (ii) the excess of (x) the
weighted average
of the net rates of the Group 1 Mortgage Loans over (y)
the weighted
average pass-through rate on the Class 1-A-2 Certificates
based on the
notional amount equal to aggregate current principal amount of
the Class 1-A-2
Certificates. The Class 1-X-1 will settle with accrued
interest and
accrue interest on a 30/360 basis (24 day delay).
(7) The Class 1-M-X Certificates will
bear interest at a variable pass-through
rate equal to
the greater of (i) zero and (ii) the excess of (x) the
weighted average
of the net rates of the Group 1 Mortgage Loans over (y)
the weighted
average pass-through rate on the Class 1-B Certificates based
on the notional
amount equal to current principal amount of the Class 1-B
Certificates. .
The Class M-X will settle with accrued interest and accrue
interest on a
30/360 basis (24 day delay).
(8) The Pass-Through Rate for the
Class 1-B-1, Class 1-B-2, Class 1-B-3, Class
1-B-4 , Class
1-B-5, Class 1-B-6 and Class 1-B-7 Certificates
(collectively,
the "Class 1-B Certificates") will be a floating rate based
on One-Month
LIBOR plus 0.650%, 0.700%, 1.250%, 1.500%, 1.500%, 1.500% and
1.500%,
respectively, subject to the lesser of (i) Net Rate Cap (equal
to
the weighted
average Net Rate of the Group 1 Mortgage Loans) and (ii)
10.50%. On the
first distribution date after the Clean-Up Call Date, each
such class'
margin will be multiplied by 1.5 times the original certificate
margin. The
Class 1-B Certificates will settle flat and accrue interest on
an Actual/360
basis. The Class 1-B Certificates are subject to increases in
their
certificate principal balances as a result of the negative
amortization
feature of the mortgage loans.
BEAR, STEARNS & CO. INC. ARM DESK (212)
272-4976
NOVEMBER 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Prospectus
Supplement.
Page 2
<PAGE>
STRUCTURED ASSET MORTGAGE INVESTMENTS II
INC.
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2005-AR7, GROUP 1
COMPUTATIONAL MATERIALS: PRELIMINARY TERM
SHEET
--------------------------------------------------------------------------------
DEPOSITOR/SELLER:
Structured Assets Mortgage Investments II,
Inc. ("SAMI II")
ORIGINATORS:
All of the Group 1 Mortgage Loans were
originated by Bank of America.
UNDERLYING SERVICERS:
All of the Group 1 Mortgage Loans are
serviced by Bank of America
MASTER SERVICER:
Wells Fargo Bank Minnesota, NA TRUSTEE: JP
Morgan Chase Bank
CUT-OFF DATE:
November 1, 2005
CLOSING DATE:
November
30, 2005
RATING AGENCIES:
The Offered Certificates will be rated
Standard & Poor's ("S&P") and Moody's
Investors Service ("Moody's").
LEGAL STRUCTURE:
REMIC
OPTIONAL CALL:
10% cleanup call
DISTRIBUTION DATE:
25th of each month, or next business day,
commencing December 26, 2005.
REMITTANCE TYPE:
Scheduled/Scheduled
FORM OF REGISTRATION:
The investment grade Certificates will be issued
in book-entry form through DTC.
ERISA:
The Offered Certificates are expected to be
ERISA eligible. Prospective investors should
review with the legal advisors as to whether
the purchase and holding of the Certificates
could give rise to a transaction prohibited
or not otherwise permissible under ERISA, the
Code or other similar laws.
SMMEA:
The Offered Certificates (other than the
Class 1-B-3 and Class 1-B-4 Certificates) are
expected to constitute "mortgage related
securities" for purposes of SMMEA.
ADVANCING OBLIGATION:
The Underlying Servicers are obligated to
advance delinquent mortgagor payments through
the date of liquidation of an REO property to
the extent they are deemed recoverable.
BEAR, STEARNS & CO. INC. ARM DESK (212)
272-4976
NOVEMBER 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Prospectus
Supplement.
Page 3
<PAGE>
STRUCTURED ASSET MORTGAGE INVESTMENTS II
INC.
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2005-AR7, GROUP 1
COMPUTATIONAL MATERIALS: PRELIMINARY TERM
SHEET
--------------------------------------------------------------------------------
COMPENSATING INTEREST:
On each distribution date, the Underlying
Servicers are required to pay Compensating
Interest up to the amount of its Servicing
Fee to cover prepayment interest shortfalls
("Prepayment Interest Shortfalls") due to
partial and/or full prepayments on the
Mortgage Loans that occurred during the
Prepayment Period. The Prepayment Period with
respect to any Distribution Date is the
period commencing on the 16th day of the
month prior to the month in which the related
Distribution Date occurs and ending on the
15th day of the month in which such
Distribution Date occurs.
COLLATERAL DESCRIPTION:
On November 1, 2005, the aggregate principal
balance of the Group 1 Mortgage Loans
described herein is expected to be
approximately $390.8 million.
The Group 1 Mortgage Loans are indexed to the
LIBOR Annual Monthly Average ("LAMA") which
equates to the 12-month average of 1-month
LIBOR. ( In order to view historical LAMA
type LAMAINDX on Bloomberg.) The Group 1
Mortgage Loans have monthly coupon
adjustments that allow for negative
amortization whereby interest payments may be
deferred and added to the principal balance
thereof. For these loans, the monthly payment
amount is subject to adjustment annually on a
date specified in the mortgage note, subject
to the conditions that (i) the amount of the
monthly payment will not increase or decrease
by an amount that is more than 7.50% of the
monthly payment prior to the adjustment, (ii)
as of the fifth anniversary of the first due
date and on every fifth year thereafter, the
monthly payment will be recast without regard
to the limitation in clause (i) above and
(iii) if the unpaid principal balance exceeds
a percentage of 110% or 115% of the original
principal balance due to deferred interest,
the monthly payment will be recast without
regard to the limitation in clause (i) to
amortize fully the then unpaid principal
balance of the mortgage loan over its
remaining term to maturity.
BEAR, STEARNS & CO. INC. ARM DESK (212)
272-4976
NOVEMBER 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Prospectus
Supplement.
Page 4
<PAGE>
STRUCTURED ASSET MORTGAGE INVESTMENTS II
INC.
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2005-AR7, GROUP 1
COMPUTATIONAL MATERIALS: PRELIMINARY TERM
SHEET
--------------------------------------------------------------------------------
% of
Gross Net WAM Gross Net Max
Group
Pool WAC
WAC
(mos.) Margin
Margin Rate
-----------------------------------------------------------------------------
Group 1 - LAMA 100.00% 4.641% 4.266% 358 2.670% 2.295% 9.957%
None of the Group 1 Mortgage Loans require
the mortgagor to pay a penalty if the
mortgagor prepays the mortgage loan during
periods ranging from one year to five years
after the mortgage loan was originated.
PREPAYMENT PENALTY TABLE
No
Hard
Soft*
Group PrePay
------------------------------------------------
Group 1
100.00% 0.00%
0.00%
*The Prepayment Penalties that are soft,
borrowers will not be required to pay the
penalty if property is sold.
See the attached collateral descriptions for
more information. NOTE: the information
related to the mortgage loans described
herein reflects information as of the
November 1, 2005. It is expected that on or
prior to the Closing Date, scheduled and
unscheduled principal payments will reduce
the principal balance of the mortgage loans
as of the Cut-off Date and may cause a
decrease in the aggregate principal balance
of the mortgage loans, as reflected herein,
of up to 10%. CONSEQUENTLY, THE INITIAL
PRINCIPAL BALANCE OF ANY OF THE OFFERED
CERTIFICATES BY THE CLOSING DATE IS SUBJECT
TO AN INCREASE OR DECREASE OF UP TO 10% FROM
AMOUNTS SHOWN ON THE FRONT COVER HEREOF.
UNDERWRITING STANDARDS:
The Group 1 Mortgage Loans were underwritten
to the guidelines of the Originator as more
fully described in the prospectus supplement.
CREDIT ENHANCEMENT:
Credit Enhancement for the Certificates will
be provided by a senior/subordinate shifting
interest structure. The Subordinate
Certificates provide credit enhancement for
the Senior Certificates.
CARRYOVER SHORTFALL AMOUNT: If on any
Distribution Date, the Certificate
Interest Rate of any of the Class 1-A-2 or
Class 1-B Certificates is subject to their
respective Net Rate Cap, such Certificates
become entitled to payment of an amount equal
to the excess of the (i) interest accrued at
their respective Pass-Through Rate (without
giving effect to the Net Rate Cap) over (ii)
the amount of interest received on such
Certificates based on the Net Rate Cap,
BEAR, STEARNS & CO. INC. ARM DESK (212)
272-4976
NOVEMBER 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Prospectus
Supplement.
Page 5
<PAGE>
STRUCTURED ASSET MORTGAGE INVESTMENTS II
INC.
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2005-AR7, GROUP 1
COMPUTATIONAL MATERIALS: PRELIMINARY TERM
SHEET
together with the unpaid portion of any
excess from previous Distribution Dates (and
any interest thereon at the then applicable
Certificate Interest Rate without giving
effect to the Net Rate Cap). On any
Distribution Date, the Carryover Shortfall
Amount will be paid to the to the Class 1-A-2
from its related Carryover Reserve Fund and
to the Class 1-B Certificates, sequentially,
from their related Carryover Reserve Fund,
after all of the Offered Certificates have
received their required amounts (see
Cash-Flow Description below).
CASH-FLOW DESCRIPTION:
Distributions on the Certificates will be
made on the 25th day of each month (or next
business day). The payments to the
Certificates, to the extent of available
funds, will be made according to the
following priority:
AVAILABLE FUNDS:
1. Payment of
interest to the holders of
the Class 1-A Certificates and 1-X-1
Certificates (net of Carryover Shortfall
Amounts) in an amount equal to their
respective Pass-Through Rates (as
described on the cover page);
2. Payment of
principal to the holders of
the Class 1-A Certificates in an amount
equal to its Senior Optimal Principal
Amount;
3. Payment of
interest to the Class M-X
Certificates (net of Carryforward
Shortfall Amount).
4. Payment of
interest and principal
sequentially to the Class 1-B
Certificates so each such Class shall
receive (a) interest at each class'
respective Pass-Through Rate, and (b)
such class' Allocable Share of the
Subordinate Optimal Principal
Distribution Amount.
5. Payment of
any Carryover Shortfall
Amounts to the Class IA-2 and Class 1- B
Certificates.
NEGATIVE AMORTIZATION:
Since the mortgage loans are subject to
negative amortization, the Class 1-A
Certificates and the Subordinate Certificates
are subject to increases in their principal
balances. HOWEVER, THE AMOUNT OF NEGATIVE
AMORTIZATION THAT OCCURS IN EACH INTEREST
ACCRUAL PERIOD WITH RESPECT TO EACH MORTGAGE
LOAN SUBGROUP WILL BE OFFSET BY PRINCIPAL
COLLECTIONS FOR SUCH PERIOD ON SUCH RELATED
MORTGAGE LOAN SUBGROUP. Any negative
amortization for a related loan subgroup that
is not offset by principal collections will
be accreted pro rata to each class of
Certificates.
BEAR, STEARNS & CO. INC. ARM DESK (212)
272-4976
NOVEMBER 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Prospectus
Supplement.
Page 6
<PAGE>
STRUCTURED ASSET MORTGAGE INVESTMENTS II
INC.
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2005-AR7, GROUP 1
COMPUTATIONAL MATERIALS: PRELIMINARY TERM
SHEET
--------------------------------------------------------------------------------
SHIFTING INTEREST:
The Senior Certificates (except for the
Interest Only Certificates) will be entitled
to receive 100% of the prepayments on the
mortgage loans up to and including November
2015. The Senior Prepayment Percentage can be
reduced to the related Senior Percentage plus
70%, 60%, 40%, 20% and 0% of the related
Subordinate Percentage over the next five
years provided that (i) the principal balance
of the mortgage loans 60 days or more
delinquent, averaged over the last 6 months,
as a percentage of the Current Principal
Amount of the related Subordinate
Certificates does not exceed 50% and (ii)
cumulative realized losses for the mortgage
loans do not exceed
30%, 35%, 40%, 45% or 50%
for each test date.
Notwithstanding the foregoing, if after 3
years the current Subordinate Percentage is
equal to two times the initial Subordinate
Percentage and (i) the principal balance of
the related mortgage loans 60 days or more
delinquent, averaged over the last 6 months,
as a percentage of the Current Principal
Amount of the related Subordinate
Certificates does not exceed 50% and (ii)
cumulative realized losses for the related
mortgage loans do not exceed a) on or prior
to November 2008, 20% or b) after November
2008, 30%, then prepayments will be allocated
on a pro rata basis.
If doubling occurs prior to the third
anniversary and the above delinquency and
loss tests are met, then 50% of the related
subordinate prepayment percentage can be
allocated to the related subordinate classes.
ALLOCATION OF LOSSES:
Realized Losses on the mortgage loans will be
allocated to the most junior class of
Certificates outstanding beginning with the
Class 1-B-6 Certificates, until the
Certificate Principal Balance of each
Subordinate Class has been reduced to zero.
Thereafter, Realized Losses on the Group 1
Mortgage Loans will be allocated first to the
Class 1-A-2 Certificates until zero and then
to the Class 1-A-1 Certificates.
CORRIDOR CAP CONTRACT:
The issuer will benefit from a series of
interest rate cap payments from the Yield
Maintenance Provider pursuant to two corridor
cap agreements (the "Corridor Cap Agreement")
purchased
with respect to the Class 1-A-2 and
Class 1-B Certificates. The Corridor Cap
Agreement is intended to partially mitigate
the interest rate risk that could result from
the difference between the Note Interest Rate
on the Class 1-A-2 and Class 1-B Certificates
and the Net Rate Cap with respect to the
mortgage loans.
BEAR, STEARNS & CO. INC. ARM DESK (212)
272-4976
NOVEMBER 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Prospectus
Supplement.
Page 7
<PAGE>
STRUCTURED ASSET MORTGAGE INVESTMENTS II
INC.
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2005-AR7, GROUP 1
COMPUTATIONAL MATERIALS: PRELIMINARY TERM
SHEET
--------------------------------------------------------------------------------
On each Distribution Date, payments under the
Corridor Cap Agreement will be an amount
equal to the product of (i) the excess of the
minimum of (1) the then current 1-Month LIBOR
and (2) 10.50% for such Distribution Date
over the strike rate, (ii) the lesser of (a)
the related Principal Balance of the
respective class(es) for such Distribution
Date and (b) the notional balance based on a
certain prepayment speed for such loans on
such Distribution Date as set forth in
Exhibit I,
and (iii) the actual number of
days in the corresponding accrual period
divided by 360.
YIELD MAINTENANCE PROVIDER: Bear Stearns
Financial Products Inc.
BEAR, STEARNS & CO. INC. ARM DESK (212)
272-4976
NOVEMBER 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Prospectus
Supplement.
Page 8
<PAGE>
STRUCTURED ASSET MORTGAGE INVESTMENTS II
INC.
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2005-AR7, GROUP 1
COMPUTATIONAL MATERIALS: PRELIMINARY TERM
SHEET
--------------------------------------------------------------------------------
EXHIBIT 1 - CORRIDOR CAP TERMS
------------------------------
DISTRIBUTION
CLASS I-A-2
CLASS 1-A-2 CLASS 1-B
CLASS 1-B
DATE
NOTIONAL
STRIKE RATE NOTIONAL
STRIKE RATE
----
--------
----------- --------
-----------
25-Dec-05
56,673,000.00 100
28,336,575.00
100
25-Jan-06
55,251,170.98 8.44
28,330,405.39
8.44
25-Feb-06
54,079,026.16 8.96
28,324,231.26
8.96
25-Mar-06
52,955,782.27 10.27
28,321,932.15
10.27
25-Apr-06
51,869,538.43 9.27
28,321,932.15
9.27
25-May-06
50,804,769.39 9.58
28,321,932.15
9.58
25-Jun-06
49,761,032.78 9.27
28,321,932.15
9.27
25-Jul-06
48,737,895.70 9.58
28,321,932.15
9.58
25-Aug-06
47,734,934.47 9.27
28,321,932.15
9.27
25-Sep-06
46,751,734.46 9.27
28,321,932.15
9.27
25-Oct-06
45,787,889.86 9.58
28,321,932.15
9.58
25-Nov-06
44,832,360.66 9.27
28,321,932.15
9.27
25-Dec-06
43,894,871.56 9.58
28,321,932.15
9.58
25-Jan-07
42,975,491.10 9.27
28,321,932.15
9.27
25-Feb-07
42,074,377.39 9.27
28,321,932.15
9.27
25-Mar-07
41,191,152.46 10.27
28,321,932.15
10.27
25-Apr-07
40,325,446.44 9.27
28,321,932.15
9.27
25-May-07
39,476,897.39 9.58
28,321,932.15
9.58
25-Jun-07
38,645,151.11 9.27
28,321,932.15
9.27
25-Jul-07
37,829,860.97 9.58
28,321,932.15
9.58
25-Aug-07
37,030,687.76 9.27
28,321,932.15
9.27
25-Sep-07
36,247,044.83 9.27
28,321,915.87
9.27
25-Oct-07
35,478,872.02 9.58
28,321,899.53
9.58
25-Nov-07
34,717,270.30 9.27
28,321,883.13
9.27
25-Dec-07
33,970,093.52 9.58
28,321,866.67
9.58
25-Jan-08
33,237,387.04 9.27
28,321,850.14
9.27
25-Feb-08
32,518,884.11 9.27
28,321,799.07
9.27
25-Mar-08
31,814,693.74 9.91
28,321,747.81
9.91
25-Apr-08
31,124,519.10
9.27
28,321,696.37
9.27
25-May-08
30,448,069.73 9.58
28,321,644.73
9.58
25-Jun-08
29,622,247.63 9.27
28,306,816.54
9.27
25-Jul-08
28,816,092.30 9.58
28,291,872.30
9.58
25-Aug-08
28,029,137.92 9.27
28,276,811.14
9.27
25-Sep-08
27,260,929.74 9.27
28,261,632.23
9.27
25-Oct-08
26,511,023.79 9.58
28,246,334.69
9.58
25-Nov-08
25,768,556.50 9.27
28,229,715.70
9.27
25-Dec-08
25,090,374.11 9.58
27,878,141.36
9.58
25-Jan-09
24,480,770.14 9.27
27,200,804.87
9.27
25-Feb-09
23,885,844.46 9.27
26,539,777.57
9.27
25-Mar-09
23,305,245.68 10.27
25,894,669.00
10.27
25-Apr-09
22,738,630.76 9.27
25,265,098.04
9.27
25-May-09
22,185,664.86 9.58
24,650,692.62
9.58
BEAR, STEARNS & CO. INC. ARM DESK (212)
272-4976 NOVEMBER 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Page 9
Prospectus Supplement.
Page 9
<PAGE>
STRUCTURED ASSET MORTGAGE INVESTMENTS II
INC.
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2005-AR7, GROUP 1
COMPUTATIONAL MATERIALS: PRELIMINARY TERM
SHEET
--------------------------------------------------------------------------------
25-Jun-09
21,646,021.11 9.27
24,051,089.57 9.27
25-Jul-09
21,119,380.46 9.58
23,465,934.37 9.58
25-Aug-09
20,605,431.45 9.27
22,894,880.98 9.27
25-Sep-09
20,103,870.08 9.27
22,337,591.60 9.27
25-Oct-09
19,614,399.57 9.58
21,793,736.49 9.58
25-Nov-09
19,136,730.25 9.27
21,262,993.78 9.27
25-Dec-09
18,670,579.34 9.58
20,745,049.28 9.58
25-Jan-10
18,215,670.83 9.27
20,239,596.32 9.27
25-Feb-10
17,771,735.28 9.27
19,746,335.51 9.27
25-Mar-10
17,338,509.69
10.27
19,264,974.64 10.27
25-Apr-10
16,915,737.34 9.27
18,795,228.46 9.27
25-May-10
16,503,167.64 9.58
18,336,818.52 9.58
25-Jun-10
16,100,555.96 9.27
17,889,473.05 9.27
25-Jul-10
15,707,663.55 9.58
17,452,926.73 9.58
25-Aug-10
15,324,257.32 9.27
17,026,920.60 9.27
25-Sep-10
14,950,109.78 9.27
16,611,201.88 9.27
25-Oct-10
14,584,998.84 9.58
16,205,523.81 9.58
25-Nov-10
14,228,707.74 9.27
15,809,645.55 9.27
25-Dec-10
13,881,024.89 9.58
15,423,331.99 9.58
25-Jan-11
13,541,743.75 9.27
15,046,353.64 9.27
25-Feb-11
13,210,662.71 9.27
14,678,486.50 9.27
25-Mar-11
12,887,584.99
10.27
14,319,511.92 10.27
25-Apr-11
12,572,318.49 9.27
13,969,216.46 9.27
25-May-11
12,264,675.71 9.58
13,627,391.79 9.58
25-Jun-11
11,964,473.65 9.27
13,293,834.55 9.27
25-Jul-11
11,671,533.65 9.58
12,968,346.26 9.58
25-Aug-11
11,385,681.33 9.27
12,650,733.17 9.27
25-Sep-11
11,106,746.49 9.27
12,340,806.14 9.27
25-Oct-11
10,834,562.98 9.58
12,038,380.58 9.58
25-Nov-11
10,568,968.64 9.27
11,743,276.31 9.27
25-Dec-11
10,309,805.17 9.58
11,455,317.43 9.58
25-Jan-12
10,056,918.06 9.27
11,174,332.28
9.27
25-Feb-12
9,810,156.50
9.27
10,900,153.27 9.27
25-Mar-12
9,569,373.28
9.91
10,632,616.85 9.91
25-Apr-12
9,334,424.70
9.27
10,371,563.36 9.27
25-May-12
9,105,170.52
9.58
10,116,836.97 9.58
25-Jun-12
8,881,473.83
9.27
9,868,285.55 9.27
25-Jul-12
8,663,201.01
9.58
9,625,760.65 9.58
25-Aug-12
8,450,221.63
9.27
9,389,117.33 9.27
25-Sep-12
8,242,408.39
9.27
9,158,214.15 9.27
25-Oct-12
8,039,637.01
9.58
8,932,913.04 9.58
25-Nov-12
7,841,786.20
9.27
8,713,079.22
9.27
25-Dec-12
7,648,737.59
9.58
8,498,581.16 9.58
25-Jan-13
7,460,375.61
9.27
8,289,290.46 9.27
25-Feb-13
7,276,587.48
9.27
8,085,081.80 9.27
BEAR, STEARNS & CO. INC. ARM DESK (212)
272-4976
NOVEMBER 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Page 10
Prospectus Supplement.
Page 10
<PAGE>
STRUCTURED ASSET MORTGAGE INVESTMENTS II
INC.
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2005-AR7, GROUP 1
COMPUTATIONAL MATERIALS: PRELIMINARY TERM
SHEET
--------------------------------------------------------------------------------
25-Mar-13
7,097,263.10
10.27
7,885,832.86 10.27
25-Apr-13
6,922,295.02 9.27
7,691,424.24 9.27
25-May-13
6,751,578.35 9.58
7,501,739.40 9.58
25-Jun-13
6,585,010.73 9.27
7,316,664.61 9.27
25-Jul-13
6,422,492.22 9.58
7,136,088.83 9.58
25-Aug-13
6,263,925.31 9.27
6,959,903.70 9.27
25-Sep-13
6,109,214.80 9.27
6,788,003.45 9.27
25-Oct-13
5,958,267.77 9.58
6,620,284.84 9.58
25-Nov-13
5,810,993.53
9.27
6,456,647.10 9.27
25-Dec-13
5,667,303.58 9.58
6,296,991.90 9.58
25-Jan-14
5,527,111.51 9.27
6,141,223.22 9.27
25-Feb-14
5,390,333.00 9.27
5,989,247.38 9.27
25-Mar-14
5,256,885.74
10.27
5,840,972.92 10.27
25-Apr-14
5,126,689.40 9.27
5,696,310.59 9.27
BEAR, STEARNS & CO. INC. ARM DESK (212)
272-4976 NOVEMBER 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Page 11
Prospectus Supplement.
Page 11
<PAGE>
STRUCTURED ASSET MORTGAGE INVESTMENTS II
INC.
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2005-AR7, GROUP 1
COMPUTATIONAL MATERIALS: PRELIMINARY TERM
SHEET
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXHIBIT II - YIELD TABLES TO CALL
---------------------------------
<S> <C> <C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
Class 1-B-1 to Call
Price: 100-00 10.00% CPR
15.00% CPR
20.00% CPR
25.00% CPR
30.00% CPR
35.00% CPR
45.00% CPR
55.00% CPR
Avg. Life
12.49 8.93
6.74 5.49
4.66
4.01
3.09
2.35
Prin. Start Date 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005
Prin. End Date 12/25/2023
1/25/2019
11/25/2015
11/25/2013
5/25/2012 5/25/2011 11/25/2009 11/25/2008
Prin. Window Len 217
158
120
96
78
66
48
36
Yield
4.84
4.99
4.99
4.99
4.99
4.99
4.99
4.99
Class 1-B-2 to Call
Price: 100-00 10.00% CPR
15.00% CPR
20.00% CPR
25.00% CPR
30.00% CPR
35.00% CPR
45.00% CPR
55.00% CPR
Avg. Life
12.49 8.93
6.74
5.49
4.66
4.01
3.09
2.35
Prin. Start Date 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005
Prin. End Date 12/25/2023
1/25/2019
11/25/2015
11/25/2013
5/25/2012 5/25/2011 11/25/2009 11/25/2008
Prin. Window Len 217
158
120
96
78
66
48
36
Yield
4.89
5.04
5.04 5.04
5.04
5.04
5.04
5.04
Class 1-B-3 to Call
Price: 100-00 10.00% CPR
15.00% CPR
20.00% CPR
25.00% CPR
30.00% CPR
35.00% CPR
45.00% CPR
55.00% CPR
Avg. Life
12.49 8.93
6.74
5.49
4.66 4.01
3.09
2.35
Prin. Start Date 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005
Prin. End Date 12/25/2023
1/25/2019
11/25/2015
11/25/2013
5/25/2012 5/25/2011 11/25/2009 11/25/2008
Prin. Window Len 217
158
120
96
78
66
48
36
Yield
5.46
5.61
5.61 5.61
5.61
5.61
5.61
5.61
Class 1-B-4 to Call
Price: 100-00 10.00% CPR
15.00% CPR
20.00% CPR
25.00% CPR
30.00% CPR
35.00% CPR
45.00% CPR
55.00% CPR
Avg. Life
12.49
8.93
6.74
5.49
4.66
4.01
3.09
2.35
Prin. Start Date 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005
Prin. End Date 12/25/2023
1/25/2019
11/25/2015
11/25/2013
5/25/2012 5/25/2011 11/25/2009 11/25/2008
Prin. Window Len 217
158
120
96
78
66
48
36
Yield
5.72
5.83
5.83 5.82
5.81
5.81
5.78
5.75
BEAR, STEARNS & CO. INC. ARM DESK (212)
272-4976
NOVEMBER 30, 2005
-------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Prospectus
Supplement.
Page 12
<PAGE>
STRUCTURED ASSET MORTGAGE INVESTMENTS II
INC.
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2005-AR7, GROUP 1
COMPUTATIONAL MATERIALS: PRELIMINARY TERM
SHEET
--------------------------------------------------------------------------------
EXHIBIT III - YIELD TABLES TO MATURITY
--------------------------------------
Class 1-B-1 to Maturity
Price: 100-00 10.00% CPR
15.00% CPR
20.00% CPR
25.00% CPR
30.00% CPR
35.00% CPR
45.00% CPR
55.00% CPR
Avg. Life
13.38
9.82
7.52
6.16
5.29
4.59
3.65
2.93
Prin. Start Date 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005
Prin. End Date 11/25/2035
11/25/2035
11/25/2035
11/25/2035
10/25/2035
9/25/2035 7/25/2034 2/25/2029
Prin. Window Len 360
360
360
360
359
358
344
279
Yield
4.85
5.01
5.01
5.01
5.02 5.02
5.03
5.04
Class 1-B-2 to Maturity
Price: 100-00 10.00% CPR
15.00% CPR
20.00% CPR
25.00% CPR
30.00% CPR
35.00% CPR
45.00% CPR
55.00% CPR
Avg. Life
13.38
9.82
7.52
6.16
5.29
4.59
3.65
2.93
Prin. Start Date 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005
Prin. End Date 11/25/2035
11/25/2035
11/25/2035
11/25/2035
10/25/2035
9/25/2035 2/25/2034 2/25/2029
Prin. Window Len 360
360 360
360
359
358
339
279
Yield
4.90
5.06
5.06
5.06
5.06 5.06
5.07
5.09
Class 1-B-3 to Maturity
Price: 100-00 10.00% CPR
15.00% CPR
20.00% CPR
25.00% CPR
30.00% CPR
35.00% CPR
45.00% CPR
55.00% CPR
Avg. Life
13.38
9.82
7.52
6.16
5.29
4.59
3.65
2.93
Prin. Start Date 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005
Prin. End Date 11/25/2035
11/25/2035
11/25/2035
11/25/2035
10/25/2035
9/25/2035 2/25/2034 2/25/2029
Prin. Window Len 360
360
360
360
359
358
339
279
Yield
5.46
5.60
5.59
5.59
5.58 5.58
5.57
5.56
Class 1-B-4 to Maturity
Price: 100-00 10.00% CPR
15.00% CPR
20.00% CPR
25.00% CPR
30.00% CPR
35.00% CPR
45.00% CPR
55.00% CPR
Avg. Life
13.38
9.82
7.52
6.16
5.29
4.59
3.65
2.93
Prin. Start Date 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005 12/25/2005
Prin. End Date 11/25/2035
11/25/2035
11/25/2035
11/25/2035
10/25/2035
9/25/2035 2/25/2034 2/25/2029
Prin. Window Len 360
360
360
360
359
358
339
279
Yield
5.71
5.81
5.79
5.78
5.77
5.76
5.72
5.67
</TABLE>
BEAR, STEARNS & CO. INC. ARM DESK (212)
272-4976
NOVEMBER 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Prospectus
Supplement.
Page 13
<PAGE>
STATEMENT REGARDING ASSUMPTIONS
-------------------------------
AS TO SECURITIES, PRICING ESTIMATES AND OTHER INFORMATION
---------------------------------------------------------
The information contained in the attached
materials (the "Information") may
include various forms of performance
analysis, security characteristics and
securities pricing estimates for the
securities addressed. Please read and
understand this entire statement before
utilizing the Information. The
Information is provided solely by Bear
Stearns, not as agent for any issuer, and
although it may be based on data supplied
to it by the issuer, the issuer has
not participated in its preparation and
makes no representations regarding its
accuracy or completeness. Should you
receive Information that refers to the
"Statement Regarding Assumptions and Other
Information", please refer to this
statement instead.
The Information is illustrative and is not
intended to predict actual results,
which may differ substantially from those,
reflected in the Information.
Performance analysis is based on certain
assumptions with respect to significant
factors that may prove not to be assumed.
You should understand the assumptions
and evaluate whether they are appropriate
for your purposes. Performance results
are based on mathematical models that use
inputs to calculate results. As with
all models, results may vary significantly
depending upon the value of the
inputs given. Inputs to these models
include but are not limited to: prepayment
expectations (econometric prepayment
models, single expected lifetime
prepayments or a vector of periodic
prepayments), interest rate assumptions
(parallel and nonparallel changes for
different maturity instruments),
collateral assumptions (actual pool level
data, aggregated pool level data,
reported factors or imputed factors),
volatility assumptions (historically
observed or implied current) and reported
information (paydown factors, rate
resets and trustee statements). Models used
in any analysis may be proprietary
making the results difficult for any third
party to reproduce. Contact your
registered representative for detailed
explanations of any modeling techniques
employed in the Information.
The Information addresses only certain
aspects of the applicable security's
characteristics and thus does not provide a
complete assessment. As such, the
Information may not reflect the impact of
all structural characteristics of the
security, including call events and cash
flow priorities at all prepayment
speeds and/or interest rates. You should
consider whether the behavior of these
securities should be tested at assumptions
different from those included in the
Information. The assumptions underlying the
Information, including structure and
collateral, may be modified from time to
time to reflect changed circumstances.
Any investment decision should be based
only on the data in the prospectus and
the prospectus supplement or private
placement memorandum (Offering Documents)
and the then current version of the
Information. Offering Documents contain data
that is current as of their publication
dates and after publication may no
longer be complete or current. Contact your
registered representative for
Offering Documents, current Information or
additional materials, including other
models or performance analysis, which are
likely to produce different results,
and any other further explanation regarding
the Information.
Any pricing estimates Bear Stearns has
supplied at your request (a) represent
our view, at the time determined, of the
investment value of the securities
between the estimated bid and offer levels,
the spread between which may be
significant due to market volatility or
liquidity, (b) do not constitute a bid
by any person for any security, (c ) may
not constitute prices at which the
securities could have been purchased or
sold in any market, (d) have not been
confirmed by actual trades, may vary from
the value Bear Stearns assigns any
such security while in its inventory, and
may not take into account the size of
a position you have in the security, and
(e) may have been derived from matrix
pricing that uses data relating to other
securities whose prices are more
readily ascertainable to produce a
hypothetical price based on the estimated
yield spread relationship between the
securities.
General Information: The data underlying
the Information has been obtained from
sources that we believe are reliable, but
we do not guarantee the accuracy of
the underlying data or computations based
thereon. Bear Stearns and/or
individuals thereof may have positions in
these securities while the Information
is circulating or during such period may
engage in transactions with the issuer
or its affiliates. We act as principal in
transactions with you, and
accordingly, you must determine the
appropriateness for you of such transactions
and address any legal, tax or accounting
considerations applicable to you. Bear
Stearns shall not be a fiduciary or advisor
unless we have agreed in writing to
receive compensation specifically to act in
such capacities. If you are subject
to ERISA, the Information is being
furnished on the condition that it will not
form a primary basis for any investment
decision. The Information is not a
solicitation of any transaction in
securities which may be made only by
prospectus when required by law, in which
event you may obtain such prospectus
from Bear Stearns.
Page 14
<PAGE>
Structured Asset Mortgage Investments II
Inc.
Mortgage Pass-Through Certificates, Series
2005-AR7, Group 1
Computational Materials: Preliminary Term
Sheet
--------------------------------------------------------------------------------
New Issue Marketing Materials
$383,030,000 (Approximate)
Structured Asset Mortgage Investments,
Inc.
Mortgage Pass-Through Certificates, Series
2005-AR7, Group 1
Structured Asset Mortgage Investments II
Inc.
Depositor
Wells Fargo Bank Minnesota, NA
Master Servicer
JP Morgan Chase Bank
Trustee
Bear, Stearns & Co. Inc.
Sole and Lead Underwriter
All statistical Information is preliminary
and based upon Information as of
November 1, 2005.
November 30, 2005
Bear, Stearns & Co. Inc. ARM Desk (212)
272-4976
November 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after
reading the Bear Stearns' Statement
Regarding Assumptions as to Securities,
Pricing Estimates and Other Information
(the "Statement"), which should be
attached. Do not use or rely on this
information if you have not received and
reviewed this Statement. You may obtain a
copy of the Statement from your sales
representative. The collateral information
contained on the following pages is
furnished as background information for
your use in reviewing the computational
materials which are attached hereto and are
a part hereof. This collateral
information will be superseded by the
description of the collateral contained in
the Prospectus Supplement.
Page 1
<PAGE>
Structured Asset Mortgage Investments II
Inc.
Mortgage Pass-Through Certificates, Series
2005-AR7, Group 1
Computational Materials: Preliminary Term
Sheet
--------------------------------------------------------------------------------
$383,030,000 (approx)
Structured Asset Mortgage Investments II Inc.
Mortgage Pass-Through Certificates, Series 2005-AR7, Group 1
<TABLE>
<CAPTION>
Certificate Expected
Credit
Interest
Size
Ratings
Enchance.
Rate
Class
(1)
(2)
%age (3)
Type
Collateral Type
Certificate Type
Offered Certificates
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
1-A-1
$305,838,000 AAA/Aaa
21.75% WAC
(4)
LIBOR Annual Monthly Avg. Super Senior
PT
1-A-2
$56,673,000 AAA/Aaa
7.25% Floater (5)
LIBOR
Annual Monthly Avg. Senior Support
PT
1-X-1
Notional (6) AAA/Aaa
7.25% WAC (6)
LIBOR Annual Monthly Avg. Senior Interest
Only
1-M-X
Notional (7) AAﰆ
5.40% WAC (7)
LIBOR Annual Monthly Avg. Crossed Sub.
LIBOR Floater
1-B-1
$7,231,000 AAﰆ
5.40% Floater (8)
LIBOR
Annual Monthly Avg. Crossed Sub.
LIBOR Floater
1-B-2
$5,081,000 AA/Aa2
4.10% Floater (8)
LIBOR
Annual Monthly Avg. Crossed Sub.
LIBOR Floater
1-B-3
$4,299,000 A/A1
3.00% Floater (8)
LIBOR
Annual Monthly Avg. Crossed Sub.
LIBOR Floater
1-B-4
$3,908,000 BBB/Baa1
2.00%
Floater (8) LIBOR Annual Monthly
Avg.
Crossed Sub. LIBOR Floater
Non-Offered Certificates
1-B-5
$3,322,000 BB/Ba2
1.15% Floater (8)
LIBOR
Annual Monthly Avg. Crossed Sub.
LIBOR Floater
1-B-6
$2,541,000 B/NR
0.50% Floater (8)
LIBOR
Annual Monthly Avg. Crossed Sub.
LIBOR Floater
1-B-7
$2,954,575 NR/NR
0.00% Floater (8)
LIBOR
Annual Monthly Avg. Crossed Sub.
LIBOR Floater
</TABLE>
(1) The Certificate Sizes are approximate
and subject to a 10% variance.
(2) The Offered Certificates will be rated
by Standard & Poor's ("S&P") and
Moody's Investors
Service ("Moody's").
(3) The Credit Enhancement percentages are
preliminary and are subject to change
based upon the final
pool as of the Cut-off Date and additional rating
agency analysis.
(4) The Class 1-A-1 Certificates will bear
interest bear interest at a variable
rate (the Pass-Through
Rate) equal to the weighted average net rate of the
Group 1 mortgage
loans. The Pass-Through Rate with respect to the first
Interest Accrual
Period is expected to be approximately 4.266%. The Class
1-A-1 Certificates
will settle with accrued interest on a 30/360 basis (24
day delay). The
certificate balances of the Class 1-A-1 Certificates are
subject to increases
due to the negative amortization feature of the
mortgage loans in
Group 1 as described herein.
(5) The Pass-Through Rate for the Class
1-A-2 Certificates (together with the
Class 1-A-1
Certificates, the "Class 1-A Certificates") will be a floating
rate based on
One-Month LIBOR plus 0.380% subject to the lesser of (i) Net
Rate Cap (equal to the
weighted average Net Rate of the Group 1 Mortgage
Loans) and (ii)
10.50%. On the first distribution date after the Clean-Up
Call Date, such
class's margin will be multiplied by 2.0 times the original
certificate margin.
The Class 1-A-2 Certificates will settle flat and accrue
interest on an
Actual/360 basis. The Class 1-A-2 Certificates are subject to
increases in their
certificate principal balances as a result of the
negative amortization
feature of the mortgage loans.
(6) The Class 1-X-1 Certificates will bear
interest at a variable pass-through
rate equal to the
greater of (i) zero and (ii) the excess of (x) the
weighted average of
the net rates of the Group 1 Mortgage Loans over (y) the
weighted average
pass-through rate on the Class 1-A-2 Certificates based on
the notional amount
equal to aggregate current principal amount of the Class
1-A-2 Certificates.
The Class 1-X-1 will settle with accrued interest and
accrue interest on a
30/360 basis (24 day delay).
(7) The Class 1-M-X Certificates will bear
interest at a variable pass-through
rate equal to the
greater of (i) zero and (ii) the excess of (x) the
weighted average of
the net rates of the Group 1 Mortgage Loans over (y) the
weighted average
pass-through rate on the Class 1-B Certificates based on
the notional amount
equal to current principal amount of the Class 1-B
Certificates. . The
Class M-X will settle with accrued interest and accrue
interest on a 30/360
basis (24 day delay).
(8) The Pass-Through Rate for the Class
1-B-1, Class 1-B-2, Class 1-B-3, Class
1-B-4 , Class 1-B-5,
Class 1-B-6 and Class 1-B-7 Certificates (collectively,
the "Class 1-B
Certificates") will be a floating rate based on One-Month
LIBOR plus 0.650%,
0.700%, 1.250%, 1.500%, 1.500%, 1.500% and 1.500%,
respectively, subject
to the lesser of (i) Net Rate Cap (equal to the
weighted average Net
Rate of the Group 1 Mortgage Loans) and (ii) 10.50%. On
the first distribution
date after the Clean-Up Call Date, each such class'
margin will be
multiplied by 1.5 times the original certificate margin. The
Class 1-B Certificates
will settle flat and accrue interest on an Actual/360
basis. The Class 1-B
Certificates are subject to increases in their
certificate principal
balances as a result of the negative amortization
feature of the
mortgage loans.
Bear, Stearns & Co. Inc. ARM
Desk (212) 272-4976
November 30, 2005
--------------------------------------------------------------------------------
This information should be
considered only after reading the Bear Stearns'
Statement Regarding Assumptions as
to Securities, Pricing Estimates and Other
Information (the "Statement"),
which should be attached. Do not use or rely on
this information if you have not
received and reviewed this Statement. You may
obtain a copy of the Statement
from your sales representative. The collateral
information contained on the
following pages is furnished as background
information for your use in
reviewing the computational materials which are
attached hereto and are a part
hereof. This collateral information will be
superseded by the description of
the collateral contained in the Prospectus
Supplement.
Page 2
<PAGE>
Structured Asset Mortgage Investments II
Inc.
Mortgage Pass-Through Certificates, Series
2005-AR7, Group 1
Computational Materials: Preliminary Term
Sheet
--------------------------------------------------------------------------------
Depositor/Seller:
Structured Assets Mortgage Investments II, Inc. ("SAMI
II")
Originators:
All of the Group 1 Mortgage Loans were originated by
Bank of America.
Underlying Servicers: All of the Group 1
Mortgage Loans are serviced by Bank
of America
Master Servicer:
Wells Fargo Bank Minnesota, NA
Trustee:
JP Morgan Chase Bank
Cut-off Date:
November 1, 2005
Closing Date:
November 30, 2005
Rating Agencies:
The Offered Certificates will be rated Standard &
Poor's ("S&P") and Moody's Investors Service
("Moody's").
Legal Structure:
REMIC
Optional Call:
10% cleanup call
Distribution Date: 25th
of each month, or next business day, commencing
December 26, 2005.
Remittance Type:
Scheduled/Scheduled
Form of Registration: The investment grade
Certificates will be issued in
book-entry form through DTC.
ERISA:
The Offered Certificates are expected to be ERISA
eligible. Prospective investors should review with the
legal advisors as to whether the purchase and holding
of the Certificates could give rise to a transaction
prohibited or not otherwise permissible under ERISA,
the Code or other similar laws.
SMMEA:
The Offered Certificates (other than the Class 1-B-3
and Class 1-B-4 Certificates) are expected to
constitute "mortgage related securities" for purposes
of SMMEA.
Advancing Obligation: The Underlying
Servicers are obligated to advance
delinquent mortgagor payments through the date of
liquidation of an REO property to the extent they are
deemed recoverable.
Bear, Stearns & Co. Inc. ARM Desk (212)
272-4976
November 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Prospectus
Supplement.
Page 3
<PAGE>
Structured Asset Mortgage Investments II
Inc.
Mortgage Pass-Through Certificates, Series
2005-AR7, Group 1
Computational Materials: Preliminary Term
Sheet
--------------------------------------------------------------------------------
Compensating Interest: On each distribution date,
the Underlying Servicers are
required to pay Compensating Interest up to the amount
of its Servicing Fee to cover prepayment interest
shortfalls ("Prepayment Interest Shortfalls") due to
partial and/or full prepayments on the Mortgage Loans
that occurred during the Prepayment Period. The
Prepayment Period with respect to any Distribution Date
is the period commencing on the 16th day of the month
prior to the month in which the related Distribution
Date occurs and ending on the 15th day of the month in
which such Distribution Date occurs.
Collateral Description: On November 1, 2005, the aggregate
principal balance of
the Group 1 Mortgage Loans described herein is expected
to be approximately $390.8 million.
The Group 1 Mortgage Loans are indexed to the LIBOR
Annual Monthly Average ("LAMA") which equates to the
12-month average of 1-month LIBOR. (In order to view
historical LAMA type LAMAINDX (Index)(Go) on
Bloomberg.) The Group 1 Mortgage Loans have monthly
coupon adjustments that allow for negative amortization
whereby interest
payments may be deferred and added to
the principal balance thereof. For these loans, the
monthly payment amount is subject to adjustment
annually on a date specified in the mortgage note,
subject to the conditions that (i) the amount of the
monthly payment will not increase or decrease by an
amount that is more than 7.50% of the monthly payment
prior to the adjustment, (ii) as of the fifth
anniversary of the first due date and on every fifth
year thereafter, the monthly payment will be recast
without regard to the limitation in clause (i) above
and (iii) if the unpaid principal balance exceeds a
percentage of 110% or 115% of the original principal
balance due to deferred interest, the monthly payment
will be recast without regard to the limitation in
clause (i) to amortize fully the then unpaid principal
balance of the mortgage loan over its remaining term to
maturity.
Bear, Stearns & Co. Inc. ARM Desk (212)
272-4976
November 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Prospectus
Supplement.
Page 4
<PAGE>
Structured Asset Mortgage Investments II
Inc.
Mortgage Pass-Through Certificates, Series
2005-AR7, Group 1
Computational Materials: Preliminary Term
Sheet
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Group
% of
Gross Net
WAM
Gross
Net
Net
Pool
WAC
WAC
(mos.) Margin
Margin
Rate
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C>
Group 1 - LAMA 100.00%
4.641%
4.266%
358
2.670%
2.295%
9.957%
</TABLE>
None of the Group 1 Mortgage Loans require the
mortgagor to pay a penalty if the mortgagor prepays the
mortgage loan during periods ranging from one year to
five years after the mortgage loan was originated.
Prepayment Penalty
Table
No
Group PrePay
Hard
Soft
Group 1
100.00% 0.00%
0.00%
*The Prepayment Penalties that are soft, borrowers will
not be required to pay the penalty if property is sold.
See the attached collateral descriptions for more
information. NOTE: the information related to the
mortgage loans described herein reflects information as
of the November 1, 2005. It is expected that on or
prior to the Closing Date, scheduled and unscheduled
principal
payments will reduce the principal balance of
the mortgage loans as of the Cut-off Date and may cause
a decrease in the aggregate principal balance of the
mortgage loans, as reflected herein, of up to 10%.
CONSEQUENTLY, THE INITIAL PRINCIPAL BALANCE OF ANY OF
THE OFFERED CERTIFICATES BY THE CLOSING DATE IS SUBJECT
TO AN INCREASE OR DECREASE OF UP TO 10% FROM AMOUNTS
SHOWN ON THE FRONT COVER HEREOF.
Underwriting Standards: The Group 1 Mortgage Loans were
underwritten to the
guidelines of the Originator as more fully described in
the
prospectus supplement.
Credit Enhancement: Credit
Enhancement for the Certificates will be
provided by a senior/subordinate shifting interest
structure. The Subordinate Certificates provide credit
enhancement for the Senior Certificates.
Carryover Shortfall
Amount:
If on any Distribution Date, the Certificate Interest
Rate of any of the Class 1-A-2 or Class 1-B
Certificates is subject to their respective Net Rate
Cap, such Certificates become entitled to payment of an
amount equal to the excess of the (i) interest accrued
at their respective Pass-Through Rate (without giving
effect to the Net Rate Cap) over (ii) the amount of
interest received on such Certificates based on the Net
Rate Cap,
Bear, Stearns & Co. Inc. ARM Desk (212)
272-4976
November 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Prospectus
Supplement.
Page 5
<PAGE>
Structured Asset Mortgage Investments II
Inc.
Mortgage Pass-Through Certificates, Series
2005-AR7, Group 1
Computational Materials: Preliminary Term
Sheet
--------------------------------------------------------------------------------
together with the unpaid portion of any excess from
previous Distribution Dates (and any interest thereon
at the then applicable Certificate Interest Rate
without giving effect to the Net Rate Cap). On any
Distribution Date, the Carryover Shortfall Amount will
be paid to the to the Class 1-A-2 from its related
Carryover Reserve Fund and to the Class 1-B
Certificates, sequentially, from their related
Carryover Reserve Fund, after all of the Offered
Certificates have received their required amounts (see
Cash-Flow Description below).
Cash-Flow Description: Distributions on the
Certificates will be made on the
25th day of each month (or next business day). The
payments to the Certificates, to the extent of
available funds, will be made according to the
following priority:
Available Funds:
1. Payment of
interest to the holders of the Class
1-A Certificates and 1-X-1 Certificates (net of
Carryover Shortfall Amounts) in an amount equal to
their respective Pass-Through Rates (as described
on the cover page);
2. Payment of
principal to the holders of the
Class 1-A Certificates in an amount equal to its
Senior Optimal Principal Amount;
3. Payment of
interest to the Class M-X Certificates
(net of Carryforward Shortfall Amount).
4. Payment of
interest and principal sequentially to
the Class 1-B Certificates so each such Class
shall receive (a) interest at each class'
respective Pass-Through Rate, and (b) such class'
Allocable Share of the Subordinate Optimal
Principal Distribution Amount.
5. Payment of
any Carryover Shortfall Amounts to the
Class IA-2 and Class 1- B Certificates.
Negative Amortization: Since the mortgage loans are
subject to negative
amortization, the Class 1-A Certificates and the
Subordinate Certificates are subject to increases in
their principal balances. HOWEVER, THE AMOUNT OF
NEGATIVE AMORTIZATION THAT OCCURS IN EACH INTEREST
ACCRUAL PERIOD WITH RESPECT TO EACH MORTGAGE LOAN
SUBGROUP WILL BE OFFSET BY PRINCIPAL COLLECTIONS FOR
SUCH PERIOD ON SUCH RELATED MORTGAGE LOAN SUBGROUP. Any
negative amortization for a related loan subgroup that
is not offset by principal collections will be accreted
pro rata to each class of Certificates.
Bear, Stearns & Co. Inc. ARM Desk (212)
272-4976
November 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Prospectus
Supplement.
Page 6
<PAGE>
Structured Asset Mortgage Investments II
Inc.
Mortgage Pass-Through Certificates, Series
2005-AR7, Group 1
Computational Materials: Preliminary Term
Sheet
--------------------------------------------------------------------------------
Shifting Interest: The
Senior Certificates (except for the Interest Only
Certificates) will be entitled to receive 100% of the
prepayments on the mortgage loans up to and including
November 2015. The Senior Prepayment Percentage can be
reduced to the related Senior Percentage plus 70%, 60%,
40%, 20% and 0% of the related Subordinate Percentage
over the next five years provided that (i) the
principal balance of the mortgage loans 60 days or more
delinquent, averaged over the last 6 months, as a
percentage of the Current Principal Amount of the
related Subordinate Certificates does not exceed 50%
and (ii) cumulative realized losses for the mortgage
loans do not exceed 30%, 35%, 40%, 45% or 50% for each
test date.
Notwithstanding the foregoing, if after 3 years the
current Subordinate Percentage is equal to two times
the initial Subordinate Percentage and (i) the
principal balance of the related mortgage loans 60 days
or more delinquent, averaged over the last 6 months, as
a percentage of the Current Principal Amount of the
related Subordinate Certificates does not exceed 50%
and (ii) cumulative realized losses for the related
mortgage loans do not exceed a) on or prior to November
2008, 20% or b) after November 2008, 30%, then
prepayments will be allocated on a pro rata basis.
If doubling occurs prior to the third anniversary and
the above delinquency and loss tests are met, then 50%
of the related subordinate prepayment percentage can be
allocated to the related subordinate classes.
Allocation of Losses: Realized Losses on the
mortgage loans will be allocated
to the most junior class of Certificates outstanding
beginning with the Class 1-B-6 Certificates, until the
Certificate Principal Balance of each Subordinate Class
has been reduced to zero. Thereafter, Realized Losses
on the Group 1 Mortgage Loans will be allocated first
to the Class 1-A-2 Certificates until zero and then to
the Class 1-A-1 Certificates.
Corridor Cap Contract: The issuer will benefit from
a series of interest rate
cap payments from the Yield Maintenance Provider
pursuant to two corridor cap agreements (the "Corridor
Cap Agreement") purchased with respect to the Class
1-A-2 and Class 1-B Certificates. The Corridor Cap
Agreement is intended to partially mitigate the
interest rate risk that could result from the
difference between the Note Interest Rate on the Class
1-A-2 and Class 1-B Certificates and the Net Rate Cap
with respect to the mortgage loans.
Bear, Stearns & Co. Inc. ARM Desk (212)
272-4976
November 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Prospectus
Supplement.
Page 7
<PAGE>
Structured Asset Mortgage Investments II
Inc.
Mortgage Pass-Through Certificates, Series
2005-AR7, Group 1
Computational Materials: Preliminary Term
Sheet
--------------------------------------------------------------------------------
On each Distribution Date, payments under the Corridor
Cap Agreement will be an amount equal to the product of
(i) the excess of the minimum of (1) the then current
1-Month LIBOR and (2) 10.50% for such Distribution Date
over the strike rate, (ii) the lesser of (a) the
related Principal Balance of the respective class(es)
for such Distribution Date and (b) the notional balance
based on a certain prepayment speed for such loans on
such Distribution Date as set forth in Exhibit I, and
(iii) the actual number of days in the corresponding
accrual period divided by 360.
Yield Maintenance
Provider:
Bear Stearns Financial Products Inc.
Bear, Stearns & Co. Inc. ARM Desk (212)
272-4976
November 30, 2005
--------------------------------------------------------------------------------
This information should be considered only
after reading the Bear Stearns'
Statement Regarding Assumptions as to
Securities, Pricing Estimates and Other
Information (the "Statement"), which should
be attached. Do not use or rely on
this information if you have not received
and reviewed this Statement. You may
obtain a copy of the Statement from your
sales representative. The collateral
information contained on the following
pages is furnished as background
information for your use in reviewing the
computational materials which are
attached hereto and are a part hereof. This
collateral information will be
superseded by the description of the
collateral contained in the Prospectus
Supplement.
Page 8
<PAGE>
Structured Asset Mortgage Investments II
Inc.
Mortgage Pass-Through Certificates, Series
2005-AR7, Group 1
Computational Materials: Preliminary Term
Sheet
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Exhibit 1 - Corridor Cap Terms
Distribution
Class I-A-2
Class 1-A-2
Class 1-B
Class 1-B
Date
Notional
Strike Rate
Notional
Strike Rate
<S>
<C>
<C>
<C>
<C>
25-Dec-05
56,673,000.00
100
28,336,575.00
100
25-Jan-06
55,251,170.98
8.44
28,330,405.39
8.44
25-Feb-06
54,079,026.16
8.96
28,324,231.26
8.96
25-Mar-06
52,955,782.27
10.27
28,321,932.15
10.27
25-Apr-06
51,869,538.43
9.27
28,321,932.15
9.27
25-May-06
50,804,769.39
9.58
28,321,932.15
9.58
25-Jun-06
49,761,032.78
9.27
28,321,932.15
9.27
25-Jul-06
48,737,895.70
9.58
28,321,932.15
9.58
25-Aug-06
47,734,934.47
9.27
28,321,932.15
9.27
25-Sep-06
46,751,734.46
9.27
28,321,932.15
9.27
25-Oct-06
45,787,889.86
9.58
28,321,932.15
9.58
25-Nov-06
44,832,360.66
9.27
28,321,932.15
9.27
25-Dec-06
43,894,871.56
9.58
28,321,932.15
9.58
25-Jan-07
42,975,491.10
9.27
28,321,932.15
9.27
25-Feb-07
42,074,377.39
9.27
28,321,932.15
9.27
25-Mar-07
41,191,152.46
10.27
28,321,932.15
10.27
25-Apr-07
40,325,446.44
9.27
28,321,932.15
9.27
25-May-07
39,476,897.39
9.58
28,321,932.15
9.58
25-Jun-07
38,645,151.11
9.27
28,321,932.15
9.27
25-Jul-07
37,829,860.97
9.58
28,321,932.15
9.58
25-Aug-07
37,030,687.76
9.27
28,321,932.15
9.27
25-Sep-07
36,247,044.83
9.27
28,321,915.87
9.27
25-Oc
