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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
(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, 2003
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number: 333-83986-16
Morgan Stanley Dean Witter Capital I Inc.
Mortgage Pass-Through Certificates
Series 2003-HY1
(Exact name of registrant as specified in its charter)
New York 54-2102382
54-2102381
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, MD 21045
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (410) 884-2000
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 Exchange
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.
Yes X No ___
Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K ( 229.405 of this chapter) is not contained
herein, and will not be contained, to the best of registrant's knowledge,
in definitive proxy or information statements incorporated by reference
in Part III of this Form 10-K or any amendment to this Form 10-K.
Not applicable.
Indicate by check mark whether the registrant is an accelerated filer
(as defined in Exchange Act Rule 12b-2).
Yes___ No X
State the aggregate market value of the voting and non-voting common
equity held by non-affiliates computed by reference to the price at which
the common equity was last sold, or the average bid and asked price of
such common equity, as of the last business day of the registrant's most
recently completed second fiscal quarter.
Not applicable.
Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date.
Not applicable.
List hereunder the following documents if incorporated by reference and
the Part of the Form 10-K (e.g. Part I, Part II, etc.) into which the
document is incorporated: (1)Any annual report to security holders; (2)
Any proxy or information statement; and (3)Any prospectus filed pursuant
to Rule 424(b) or (c) under the Securities Act of 1933. The listed
documents should be clearly described for identification purposes (e.g.
annual report to security holders for fiscal year ended December 24, 1980).
Not applicable.
PART I
Item 1. Business.
Omitted.
Item 2. Properties.
See Item 15(a), Exhibits 99.1, 99.2, and 99.3, for information
provided in lieu of information required by Item 102 of
Regulation S-K.
Item 3. Legal Proceedings.
The registrant knows of no material pending legal proceedings
involving the trust created under the Pooling and Servicing
Agreement (the Trust), the Trustee, the Servicer or the
registrant with respect to the Trust other than routine
litigation incidental to the duties of the respective parties.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
PART II
Item 5. Market for Registrant's Common Equity and Related Stockholder
Matters.
No established public trading market for the Certificates exists.
Records provided to the Trust by the DTC and the Trustee
indicate that as of December 31, 2003, the number of holders of
record for each class of Certificate were as follows:
Class A-1 3
Class A-2 5
Class A-3 5
Class A-4 3
Class A-R 1
Class A-X 3
Class B-1 3
Class B-2 4
Class B-3 3
Class B-4 1
Class B-5 1
Class B-6 1
Total: 33
Item 6. Selected Financial Data.
Omitted.
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operation.
Omitted.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk.
Not applicable.
Item 8. Financial Statements and Supplementary Data.
See Item 15(a), Exhibits 99.1, 99.2, 99.3, for information
provided in lieu of information required by Item 302 of
Regulation S-K.
Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.
None.
Item 9A. Controls and Procedures.
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.
Item 14. Principal Accounting Fees and Services.
Not applicable.
PART IV
Item 15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.
(a) Exhibits
(31.1) Rule 13a-14(a)/15d-14(a) Certification
(99.1) Annual Independent Accountants' Servicing Reports concerning
servicing activities for the year ended December 31, 2003.
a) Morgan Stanley Dean Witter, as Servicer
(99.2) Report of Management as to Compliance with Minimum Servicing
Standards for the year ended December 31, 2003.
a) Morgan Stanley Dean Witter, as Servicer
(99.3) Annual Statements of Compliance under the Pooling and Servicing
Agreements for the year ended December 31, 2003.
a) Morgan Stanley Dean Witter, as Servicer
(99.4) Aggregate Statement of Principal and Interest Distributions to
Certificate Holders.
(b) On November 10, 2003, December 8, 2003, and January 9, 2004 reports on
Form 8-K were filed by the Company in order to provide the statements
for the monthly distributions to holders of the Certificates. No other
reports on Form 8-K have been filed during the last quarter of the
period covered by this report.
On November 11, 2003 a Form 8K-A was filed for the March 2003
distribution.
(c) Not applicable.
(d) Omitted.
Filed herewith.
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:
Morgan Stanley Dean Witter Capital I Inc.
Mortgage Pass-Through Certificates
Series 2003-HY1
(Registrant)
Signed: Morgan Stanley Dean Witter Credit Corp. as Servicer
By: David L. Bianucci as Vice President and Treasurer
By: /s/ David L. Bianucci
Dated: March 29, 2004
SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT TO
SECTION 15(d) OF THE ACT BY REGISTRANTS WHICH HAVE NOT REGISTERED
SECURITIES PURSUANT TO SECTION 12 OF THE ACT.
(a)(i) No annual report is provided to the Certificateholders other than
with respect to aggregate principal and interest distributions.
(a)(ii) No proxy statement, form of proxy or other proxy soliciting
material has been sent to any Certificateholder with respect to any
annual or other meeting of Certificateholders.
Exhibit Index
Exhibit No.
Ex-31.1 Rule 13a-14(a)/15d-14(a) Certification
Re: The Pooling and Servicing Agreement dated as of February 1, 2003,
among Morgan Stanley Dean Witter Capital I Inc., as Depositor, Morgan
Stanley Dean Witter Credit Corporation, as Servicer and Mortgage Loan
Seller, and Wells Fargo Bank Minnesota, National Association, as Trustee
I, David L. Bianucci, certify that:
1. I have reviewed this annual report on Form 10-K, and all reports on
Form 8-K containing distribution date reports filed in respect of
periods included in the year covered by this annual report, of the
Trust;
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 servicing information required to be
provided to the trustee by the servicer under the pooling and
servicing agreement for inclusion in these reports is included in
these reports;
4. I am responsible for reviewing the activities performed by the
Servicer under the pooling and servicing, or similar, agreement
and based upon my knowledge and the annual compliance review required
under that agreement, and except as disclosed in the reports, each Servicer
has fulfilled its obligations under that 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 that is included in these reports.
Date: March 29, 2004
/s/ David L. Bianucci
Signature
Vice President and Treasurer
Title
Ex-99.1 (a)
Deloitte (logo)
Deloitee & Touche LLP
Two Prudential Plaza
180 North Sterson Avenue
Chicago, IL 60601-6710
USA
Tel: +1 312 946 3000
Fax: +1 312 949 2600
www.deloitte.com
INDEPENDENT ACCOUNTANTS' REPORT
Morgan Stanley Dean Witter Credit Corporation
Riverwoods, Illinois
We have examined management's assertion that Morgan Stanley Dean Witter
Corporation's (the Company) has complied as of and for the year ended December
31, 2003, with its established minimum servicing standards for the Morgan
Stanley Mortgage Pass Through Certificates, Series 2003-HYB1 described in the
accompanying management's assertion dated February 23, 2004. Management is
responsible for the Company's compliance with those minimum servicing standards.
Our responsibility is to express an opinion on management's assertion about the
Company's compliance based on our examination.
Our examination was conducted in accordance with attestation 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 its minimum servicing 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 its minimum
servicing standards.
In our opinion, management's assertion that the Company complied with the
aforementioned minimum servicing standards as of and for the year ended December
31, 2003, is fairly stated, in all material respects based on the criteria set
forth in Appendix I.
/s/ Deloitte & Touche LLP
February 23, 2004
Member of
Deloitee Touche Tohmatsu
Ex-99.2(a)
MORGAN STANLEY DEAN WITTER
CREDIT CORPORATION
February 23, 2004
MANAGEMENT'S ASSERTION
As of and for the year ended December 31,2003, Morgan Stanley Dean Witter Credit
Corporation (the "Company") has complied, in all material respects, with the
Company's established minimum servicing standards for Morgan Stanley Mortgage
Pass Through Certificates, Series 2003-HYB1 as set forth in Appendix I (the
"Standards"). The Standards are based on the Mortgage Banker's Association of
America's Uniform Single Attestation Program for Mortgage Bankers. As of and for
this same period, Morgan Stanley Dean Witter & Co. had in effect a fidelity bond
in the amount of $20 million and errors and omissions policy in the amount of $5
million under which the Company was covered.
/s/ Thomas F. White
Thomas F. White
President and Chief Executive Officer
& Director os Mortgage Lending
/s/ Martin W. Slusarz
Martin W. Slusarz
SVP, Controller
2500 Lake Cook Road, Riverwoods, Illinois 60015
MORGAN STANLEY DEAN WITTER
CREDIT CORPORATION
APPENDIX I
MINIMUM SERVICING STANDARDS AS SET FORTH IN THE MORTGAGE BANKERS
ASSOCIATION OF AMERICA'S UNIFORM SINGLE ATTESTATION PROGRAM FOR
MORTGAGE BANKERS
I. CUSTODIAL BANK ACCOUNTS
1. Reconciliations shall be prepared on a monthly basis for all custodial bank
accounts and related bank clearing accounts. These reconciliations shall:
* be mathematically accurate;
* be prepared within forty-five (45) calendar days after the cutoff date;
* be reviewed and approved by someone other than the person who prepared
the reconciliation; and
* document explanations for reconciling items. These reconciling items shall
be resolved within ninety (90) calendar days of their original
identification.
2. Funds of the servicing entity shall be advanced in cases where there is an
overdraft in an investor's or a mortgagor's account.
3. Each custodial account shall be maintained at a federally insured depository
institution in trust for the applicable investor.
4. Escrow funds held in trust for a mortgagor shall be returned to the mortgagor
within thirty (30) calendar days of payoff of the mortgage loan. (Not
Applicable)
II. MORTGAGE PAYMENTS
1. Mortgage payments shall be deposited into the custodial bank accounts and
related bank clearing accounts within two business days of receipt.
2. Mortgage payments made in accordance with the mortgagor's loan documents
shall be posted to the applicable mortgagor records within two business days
of receipt.
3. Mortgage payments shall be allocated to principal, interest, insurance,
taxes or other escrow items in accordance with the mortgagor's loan
documents.
4. Mortgage payments identified as loan payoffs shall be allocated in accordance
with the mortgagor's loan documents.
III. DISBURSEMENTS
1. Disbursements made via wire transfer on behalf of a mortgagor or investor
shall be made only by authorized personnel.
2. Disbursements made on behalf of a mortgagor or investor shall be posted
within two business days to the mortgagor's or investor's records maintained
by the servicing entity.
3. Tax and insurance payments shall be made on or before the penalty or
insurance policy expiration dates, as indicated on tax bills and insurance
premium notices, respectively, provided that such support has been received
by the servicing entity at least thirty (30) calendar days prior to these
dates. (Not Applicable)
4. Any late payment penalties paid in conjunction with the payment of any tax
bill or insurance premium notice shall be paid from the servicing entity's
funds and not charged to the mortgagor, unless the late payment was due to
the mortgagor's error or omission. (Not Applicable)
5. Amounts remitted to investors per the servicer's investor reports shall
agree with cancelled checks, or other form of payment, or custodial bank
statements.
6. Unused checks shall be safeguarded so as to prevent unauthorized access.
IV. INVESTOR ACCOUNTING AND REPORTING
1. The servicing entity's investor reports shall agree with, or reconcile to,
investors' records on a monthly basis as to the total unpaid principal
balance and number of loans serviced by the servicing entity.
V. MORTGAGOR LOAN ACCOUNTING
1. The servicing entity's mortgage loan records shall agree with, or reconcile
to, the records of mortgagors with respect to the unpaid principal balance on
a monthly basis.
2. Adjustments on ARM loans shall be computed based on the related mortgage note
and any ARM rider.
3. Escrow accounts shall be analyzed, in accordance with the mortgagor's loan
documents, on at least an annual basis. (Not Applicable)
4. Interest on escrow accounts shall be paid, or credited, to mortgagors in
accordance with the applicable state laws. (Not Applicable)
VI. DELINQUENCIES
1. Records documenting collection efforts shall be maintained during the period
a loan is in default and shall be updated at least monthly. Such records
shall describe the entity's activities in monitoring delinquent loans
including, for example, phone calls, letters and mortgage payment
rescheduling plans in cases where the delinquency is deemed temporary (e.g.,
illness or unemployment).
VII. INSURANCE POLICIES
1. A fidelity bond and errors and omissions policy shall be in effect on the
servicing entity throughout the reporting period in the amount of coverage
represented to investors in management's assertion.
2500 Lake COok Road, Riverwoods, Illinois 60015
Ex-99.3(a)
MORGAN STANLEY DEAN WITTER
CREDIT CORPORATION
Michael J. Gillespie
Accounting Director
Officer's Certificate
Mortgage Pass-Through Certificates Series 2003-HYB1
Pursuant to the Pooling & Servicing Agreement dated as of February 1, 2003 among
Morgan Stanley Dean Witter Credit Corporation, formerly known as NOVUS Financial
Corporation, as seller and servicer (referred to herein in such capacity as the
"Servicer"), and Wells Fargo Bank Minnesota, N.A., as Indenture Trustee, the
undersigned, hereby states that:
(1) A review of the activities of the Servicer and of its performance under the
Servicing Agreement during the fiscal year ended December 31, 2003, has been
made under my supervision; and
(2) To the best of my knowledge, based on such review, the Servicer has
fulfilled all its obligations under the Agreement throughout such period.
MORGAN STANLEY DEAN WITTER
CREDIT CORPORATION
By /s/ Douglas J. Bush
Douglas J. Bush
Title Director
Dated as of December 31, 2003
By /s/ David Bianucci
David Bianucci
Title Vice President
Dated as of December 31, 2003
2500 Lake Cook Road, 1 East, Riverwoods, Illinois 60015 Tel (224) 405-1903
Ex-99.4
Schedule of Year-To-Date Principal and Interest Distributions to
Certificateholders
Class Interest Principal Losses Ending Balance
A-1 1,160,224.08 7,534,590.50 0.00 32,587,076.50
A-2 6,934,399.44 38,748,946.66 0.00 167,589,053.34
A-3 1,258,308.29 6,572,774.43 0.00 28,427,225.56
A-4 328,254.34 1,877,935.56 0.00 8,122,064.44
A-R 9,666.57 100.00 0.00 0.00
A-X 166,457.37 0.00 0.00 0.00
B-1 117,122.90 0.00 0.00 3,307,000.00
B-2 85,177.10 0.00 0.00 2,405,000.00
B-3 58,543.75 0.00 0.00 1,653,000.00
B-4 21,285.40 0.00 0.00 601,000.00
B-5 10,660.40 0.00 0.00 301,000.00
B-6 31,964.40 0.00 0.00 902,524.55