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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
(Mark One)
[ x] Annual Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the fiscal year ended DECEMBER 31, 2002
or
[ ] Transition Report Pursuant to Section 13 or 15d of the Securities
Exchange Act of 1934
For the transition period from _____________ to ________
Commission file Number 333-51279
Structured Asset Mortgage Investments Inc.
(Exact name of registrant as specified in its charter)
Delaware 13-3633241
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
383 Madison Avenue
New York, NY 10179
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (212) 272-2000
Structured Asset Mortgage Investments Inc.
Mortgage Pass-Through Certificates Series 2002-AR1
(Title of each class of securities covered by this Form)
Securities registered pursuant to Section 12(b) of the Act: NONE
Securities registered pursuant to Section 12(g) of the Act: NONE
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
X - Yes No
PART I
Item 1. Business
Not applicable.
Item 2. Properties
Not applicable on reliance of Relief Letters
Item 3. Legal Proceedings
There were no legal proceedings.
Item 4. Submission of Matters to a Vote of Security Holders
There were no matters submitted to a vote of the Security Holders.
PART II
Item 5. Market for Registrant's Common Equity and Related Stockholder matters
There is no established public trading market for the notes.
There were less than 300 participants in the DTC system.
Structured Asset Mortgage Investments Inc.
Mortgage Pass-Through Certificates
Series 2002-AR1 Class I-A Cede & Co
Series 2002-AR1 Class II-A Cede & Co
Series 2002-AR1 Class III-A Cede & Co
Series 2002-AR1 Class IV-A Cede & Co
Series 2002-AR1 Class V-A Cede & Co
Series 2002-AR1 Class VI-A Cede & Co
Series 2002-AR1 Class M-1 Cede & Co
Series 2002-AR1 Class B-1 Cede & Co
Series 2002-AR1 Class B-2 Cede & Co
Series 2002-AR1 Class B-3 Cede & Co
Series 2002-AR1 Class B-4 1
Series 2002-AR1 Class B-5 1
Series 2002-AR1 Class B-6 1
Item 6. Selected Financial Data.
Not applicable.
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Not applicable.
Item 8. Financial Statements and Supplementary Data.
Not applicable.
Item 9. Changes in and Disagreements with Accountants on Accounting and
Not applicable.
PART III
Item 10. Directors and Executive Officers of the Registrant
Not applicable.
Item 11. Executive Compensation
Not applicable.
Item 12. Security Ownership of Certain Beneficial Owners and Management
Not applicable.
Item 13. Certain Relationships and Related Transactions.
Not applicable.
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
(a) 1. Not Applicable
2. Not Applicable
3. Exhibits
99.1 Annual Summary Statement
99.2 Annual Statement as to Compliance.
99.3 Annual Independent Public
Accountant's Servicing Report.
99.4 Annual Report of Management
(b) Reports on Form 8-K
The registrant has filed Current Reports on Form 8-K with the
Securities and Exchange Commission dated:
May 28, 2002; June 25, 2002; July 25, 2002;
August 26, 2002; September 25, 2002, October 25, 2002;
November 25, 2002; December 26, 2002
(c) See (a) 3 above
(d) Not Applicable
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.
Structured Asset Mortgage Investments Inc.
/s/ Jeffrey Mayer
Name: Jeffrey Mayer
Title: Vice President
Dated: March 28, 2003
Sarbanes-Oxley Certification
I, Jeffrey Mayer, certify that:
1. I have reviewed this annual report on Form 10-K, and all reports on Form 8-K
containing distribution or servicing reports filed in respect of periods
included in the year covered by this annual report, of
Structured Asset Mortgage Investments Inc.
Mortgage Pass-Through Certificates Series 2002-AR1
2. Based on my knowledge, the information in these reports, taken as a whole,
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading
as of the last day of the period covered by this annual report;
3. Based on my knowledge, the distribution or servicing information required
to be provided to the trustee by the servicer under the pooling and servicing,
or similar, agreement, for inclusion in these reports is included
in these reports;
4. Based on my knowledge and upon the annual compliance statement
included in the report and required to be delivered to the trustee in
accordance with the terms of the pooling and servicing, or similar, agreement,
and except as disclosed in the reports, the servicer has fulfilled its
obligations under the servicing agreement; and
5. The reports disclose all significant deficiencies relating to the servicer's
compliance with the minimum servicing standards based upon the report
provided by an independent public accountant, after conducting a review
in compliance with the Uniform Single Attestation Program for Mortgage
Bankers or similar procedure, as set forth in the pooling and servicing,
or similar, agreement, that is included in these reports.
In giving the certifications above, I have reasonably relied on information
provided to me by the following unaffiliated parties:
Bank One, National Association, as Trustee
Bank of America, NA, as Master Servicer
Date: March 31, 2003
Signature: /s/ Jeffrey Mayer
Name: Jeffrey Mayer
Company: Structured Asset Mortgage Investments, Inc.
Title: Vice President
EXHIBIT INDEX
Exhibit NumberDescription
99.1 Annual Summary Statement
99.2 Annual Statement of Compliance
99.3 Report of Independent Accountants
99.4 Report of Management
EXHIBIT 99.1 -- Summary of Aggregate Amounts or End of Year
Amounts for the period ending December 31, 2002
Structured Asset Mortgage Investments Inc.
Mortgage Pass-Through Certificates Series 2002-AR1
STATEMENT TO CERTIFICATEHOLDERS
Beginning Current
Principal Principal Pass-Through Accrued
Class Balance Distribution Rate Interest
I-A 193,544,100 83,464,620 5.70611% 6,856,046
II-A 152,705,900 20,783,970 4.09817% 4,340,631
III-A 21,782,700 5,436,698 6.43764% 880,068
IV-A 19,830,900 8,983,012 6.36154% 744,305
V-A 60,568,000 31,788,667 7.23047% 2,267,142
VI-A 34,850,300 12,822,269 7.19813% 1,398,962
M-1 7,650,800 79,750 5.55903% 302,356
B-1 7,141,100 74,437 5.55903% 282,213
B-2 4,335,400 45,191 5.55903% 171,333
B-3 3,060,200 31,899 5.55903% 120,938
B-4 1,530,200 15,950 5.55903% 60,473
B-5 1,530,300 15,951 5.55903% 60,477
B-6 1,530,435 15,953 5.55903% 60,482
R-I 50 50 4.09817% 0
R-II 50 50 4.09817% 0
Total: 510,060,435 163,558,466 17,545,426
Prepayment Ending
Realized Loss Deferred Interest Principal
Class of Principal Interest Shortfall Balance
I-A 0 0 0 110,079,480
II-A 0 0 0 131,921,930
III-A 0 0 0 16,346,002
IV-A 0 0 0 10,847,888
V-A 0 0 0 28,779,333
VI-A 0 0 0 22,028,031
M-1 0 0 0 7,571,050
B-1 0 0 0 7,066,663
B-2 0 0 0 4,290,209
B-3 0 0 0 3,028,301
B-4 0 0 0 1,514,250
B-5 0 0 0 1,514,349
B-6 0 0 0 1,514,482
R-I 0 0 0 0
R-II 0 0 0 0
Total: 0 0 0 346,501,969
AMOUNTS PER $1,000 UNIT
Beginning
Principal Principal
Class Cusip Balance Distribution
I-A 86358HMJ5 1000.00000000 431.24342029
II-A 86358HMM8 1000.00000000 136.10456570
III-A 86358HMN6 1000.00000000 249.58786652
IV-A 86358HMY2 1000.00000000 452.98055509
V-A 86358HMZ9 1000.00000000 524.84261293
VI-A 86358HNA3 1000.00000000 367.92419893
M-1 86358HNB1 1000.00000000 10.42368641
B-1 86358HMP1 1000.00000000 10.42368683
B-2 86358HMQ9 1000.00000000 10.42368409
B-3 86358HMR7 1000.00000000 10.42368473
B-4 86358HMS5 1000.00000000 10.42368318
B-5 86358HMU0 1000.00000000 10.42368817
B-6 86358HMW6 1000.00000000 10.42367911
R-I 86358HMK2 1000.00000000 1000.00000000
R-II 86358HML0 1000.00000000 1000.00000000
AMOUNTS PER $1,000 UNIT
Ending
Interest Principal
Class Distribution Balance
I-A 35.42368700 568.75657971
II-A 28.42477566 863.89543430
III-A 40.40213289 750.41213348
IV-A 37.53260719 547.01944491
V-A 37.43135732 475.15738707
VI-A 40.14204899 632.07580107
M-1 39.51951430 989.57631359
B-1 39.51951520 989.57631317
B-2 39.51951838 989.57631591
B-3 39.51951833 989.57631527
B-4 39.51951379 989.57631682
B-5 39.51951905 989.57631183
B-6 39.51950435 989.57632089
R-I 4.20000000 0.00000000
R-II 4.20000000 0.00000000
viii) Comp Interest Prin Adv Int Adv
Gp 1 Not Provided 13,621.42 50,044.48
Gp 2 Not Provided 17,231.81 31,061.51
Gp 3 Not Provided 3,973.13 18,544.77
Gp 4 Not Provided 1,952.21 10,607.54
Gp 5 Not Provided 6,969.10 39,239.14
Gp 6 Not Provided 3,152.39 21,205.95
Agg 46,900.06 170,703.39
Total Adv Outstanding Unreimbursed Advances
Gp 1 63,665.90 63,665.90
Gp 2 48,293.32 82,764.27
Gp 3 22,517.90 22,517.90
Gp 4 12,559.75 12,559.75
Gp 5 46,208.24 51,849.32
Gp 6 24,358.34 32,447.33
Agg 217,603.45 265,804.47
ix) Realized Losses:Current Cumulative
Gp 1 0.00 0.00
Gp 2 0.00 0.00
Gp 3 0.00 0.00
Gp 4 0.00 0.00
Gp 5 0.00 0.00
Gp 6 0.00 0.00
Agg 0.00 0.00
x) Current Realized Loss Loans:
Loan Cut-off Beginning Net Liq Realized
Number Balance Balance Proceeds Loss
xi, xii) Number and aggregate Stated Principal Balance of the Mortgage Loans
Num of Loans End Sched Prin
(Excl REO) Bal Prin Prepayment
Gp 1 205 120,705,567 1,562,538 82,000,103
Gp 2 285 140,261,412 2,180,704 18,725,247
Gp 3 29 17,543,141 178,396 5,268,131
Gp 4 13 11,938,768 136,351 8,854,636
Gp 5 56 32,110,032 380,005 31,434,039
Gp 6 45 23,943,049 261,415 12,576,901
Total 633 346,501,969 4,699,409 158,859,057
Net Liq Purchase Substitution
Proceeds Principal Principal
Gp 1 0.00 0.00 0.00
Gp 2 0.00 0.00 0.00
Gp 3 0.00 0.00 0.00
Gp 4 0.00 0.00 0.00
Gp 5 0.00 0.00 0.00
Gp 6 0.00 0.00 0.00
Total 0.00 0.00 0.00
xi) Number and aggregate Stated Principal Balance of Substitutions and Purchases
Substituted Substituted Purchase Purchase
Loan Count Loan Balance Count Balance
Gp 1 0 0 0 0
Gp 2 0 0 0 0
Gp 3 0 0 0 0
Gp 4 0 0 0 0
Gp 5 0 0 0 0
Gp 6 0 0 0 0
Cumulative Cumulative Cumulative Cumulative
Substituted Substituted Purchase Purchase
Loan Count Loan Balance Count Balance
Gp 1 0 0 0 0
Gp 2 0 0 0 0
Gp 3 0 0 0 0
Gp 4 0 0 0 0
Gp 5 0 0 0 0
Gp 6 0 0 0 0
xiii) Delinquency Information for all Mortgage Loans
(Includes Loans in Foreclosure, Bankruptcy, and REO)
Delinquent 30-59 Days Delinquent 60-89 Days
Count Sched Bal Count Sched Bal
Gp 1 0 0 0 0
Gp 2 0 0 0 0
Gp 3 0 0 0 0
Gp 4 0 0 0 0
Gp 5 0 0 0 0
Gp 6 0 0 1 384,874
Total 0 0 1 384,874
Delinquent 90+ Days
Count Sched Bal
Gp 1 0 0
Gp 2 1 1,393,790
Gp 3 0 0
Gp 4 0 0
Gp 5 0 0
Gp 6 0 0
Total 1 1,393,790
xiv) Mortgage Loans in Foreclosure Proceedings
Count Outstanding Balance
Gp 1 0 0
Gp 2 0 0
Gp 3 0 0
Gp 4 0 0
Gp 5 0 0
Gp 6 0 0
Total 0 0
xv, xvi) Mortgage Loans as to which the Mortgaged Property is an REO Property
Count Outstanding Bal Book Value
Gp 1 0 0 0
Gp 2 0 0 0
Gp 3 0 0 0
Gp 4 0 0 0
Gp 5 0 0 0
Gp 6 0 0 0
Total 0 0 0
xvii) Cumulative Realized Losses
Class
I-A 0.00
II-A 0.00
III-A 0.00
IV-A 0.00
V-A 0.00
VI-A 0.00
M-1 0.00
B-1 0.00
B-2 0.00
B-3 0.00
B-4 0.00
B-5 0.00
B-6 0.00
Total 0.00
xviii) Average Loss Severity Percentage 0.00%
xix) Group percentages
Senior Mezzanine
Senior Senior Prepay and Subordinate
Percentage Percentage Percentage
Gp 1 91.90376908% 100.00000000% 8.09623092%
Gp 2 94.09284653% 100.00000000% 5.90715347%
Gp 3 93.54738860% 100.00000000% 6.45261140%
Gp 4 92.21257596% 100.00000000% 7.78742404%
Gp 5 90.63434534% 100.00000000% 9.36565466%
Gp 6 92.41010310% 100.00000000% 7.58989690%
Senior Mezzanine and
Subordinate Prepayment
Percentage
Gp 1 0.00000000%
Gp 2 0.00000000%
Gp 3 0.00000000%
Gp 4 0.00000000%
Gp 5 0.00000000%
Gp 6 0.00000000%
EXHIBIT 99.2 -- Servicer's Annual Statement of Compliance
Bank of America
Officer's Certificate
Pursuant to the terms of the Servicing Agreement, the undersigned officer
certifies to the following:
1. All hazard (or mortgage impairment if applicable), flood, or other
casualty insurance and primary mortgage guaranty insurance
premiums, taxes, ground rents, assessments, and other charges have
been paid in connection with the Mortgaged Properties;
2. Each officer has reviewed the activities and performance of the
Seller/Servicer during the preceding calendar year and to the best of
each officer's knowledge, based on such review, the Seller/Servicer
has fulfilled all of its obligations under the Agreement throughout the
year.
Certified By: /s/ Donna Dzimian
Donna Dzimian
Officer
EXHIBIT 99.3 -- Report of Independent Auditors
Report of Independent Accountants
To the Board of Directors and Shareholder
of Bank of America, N.A.
We have examined management's assertion about compliance by BA Mortgage, LLC
and the Mortgage division of Bank of America, N.A. (collectively, the
"Company"), which together comprise an operating division of Bank of America,
N.A., with the minimum servicing standards (the "Standards") identified in
the Mortgage Bankers Association of America's Uniform Single Attestation
Program for Mortgage Bankers ("USAP") as of and for the year ended December
31, 2002 included in the accompanying management assertion (see Exhibit 1).
Management is responsible for the Company's compliance with the Standards.
Our responsibility is to express an opinion on management's assertion about
the Company's compliance based on our examination.
Our examination was made inaccordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about the Company's compliance with the
Standards and performing such other procedures as we considered necessary in
the circumstances. We believe that our examination provides a reasonable
basis for our opinion. Our examination does not provide a legal
determination on the Company's compliance with the Standards.
In our opinion, management's assertion that the Company complied with the
aforementioned Standards as of and for the year ended December 31, 2002 is
fairly stated, in all material respects.
/s/ PriceWaterhouseCoopers LLP
PriceWaterhouseCoopers LLP
March 7, 2003
EXHIBIT 99.4 -- Report of Management
Management's Assertion Concerning Compliance
with USAP Minimum Servicing Standards
March 7, 2003
As of and for the year ended December 31, 2002, BA Mortgage LLC, and the
Mortgage division of Bank of America, N.A. (collectively the "Company"),
which together comprise an operating division of Bank of America, N.A.,
has complied in all material respects with the minimum servicing standards
set forth in the Mortgage Bankers Association of America's Uniform Single
Attestation Program for Mortgage Bankers ("USAP").
As of and for this same period, the Company had in effect a fidelity bond
and errors and omissions policy in the amounts of $400,000,000 and
$475,000,000 respectively.
/s/ Kevin M. Shannon /s/ H. Randall Chestnut
Kevin M. Shannon H. Randall Chestnut
President Senior Vice President
Consumer Real Estate Bank of America, N.A.
Bank of America, N.A.
/s/ David H. Rupp /s/ Gary K. Bettin
David H. Rupp Gary K. Bettin
Senior Vice President Senior Vice President and
Bank of America, N.A. National Servicing Executive
Bank of America, N.A.
/s/ J. Mark Hanson
J. Mark Hanson
Senior Vice President
Bank of America, N.A.