Document:

<PAGE>   1

                                                                   Exhibit 10.38

                             STOCK OPTION AGREEMENT
                                       FOR
                              NONEMPLOYEE DIRECTORS

         AGREEMENT dated this 10th day of May, 2000, between Oriole Homes Corp.,
a Florida corporation (hereinafter called the "Company"), and George R. Richards
(hereinafter called the "Eligible Director").

                              W I T N E S S E T H:

         WHEREAS, the Company's shareholders approved (on May 9, 1994) the
adoption of the 1994 Stock Option Plan for Nonemployee Directors (the "Plan")
pursuant to which each Eligible Director is entitled to receive a grant to
purchase 1,200 Shares per year, up to a maximum of 6,000 Shares:

         WHEREAS, the Company's Board of Directors approved (on May 12, 1999)
the adjustment of the maximum Shares pursuant to Article 7 of the 1994 Stock
Option Plan for Nonemployee Directors (the "Plan") each Eligible Director is now
entitled to a maximun of 12,000 Shares:

         WHEREAS, the Executive Committee of the Board of Directors of the
Company (the "Committee") has this day granted to each Eligible Director an
option to purchase 1,200 shares of Class B Common Stock, par value $.10 per
share, (the "Shares") of the Company, and at the option price, all as
hereinafter stated, such option to be exercisable not more than ten (10) years
after the date hereof; and

         WHEREAS, the Eligible Director is willing to accept said option and to
be bound by the terms and conditions thereof; and

         WHEREAS, the execution and delivery of this Agreement has been duly
authorized by the Board of Directors of the Company;

         NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants herein contained and other good and valuable considerations, the
receipt whereof is hereby acknowledged, the parties hereto, including to be
legally bound hereby, agree as follows:

                           GRANT OF OPTION: ADJUSTMENT
                           OF SHARES COVERED BY OPTION

         1.1 The Company hereby grants to the Eligible Director an option to
purchase from the Company, upon the terms and conditions hereinafter set forth,
1,200 shares of Class B Common Stock, par value $.10 per share (the "Shares"),
for a cash consideration of $1.813 per share.

         1.2 The number of Shares above stated, and the purchase price thereof,
may be subject to adjustment from time to time as provided herein.

                                     VESTING

         2.1 This option shall vest and become nonforfeitable on the day of the
Annual Meeting following the date hereof if the Eligible Director continues to
serve as a Director.

                               PAYMENTS FOR SHARES

         3.1 The option price of the shares to be purchased pursuant to each
exercise of the within option shall be paid to the Company by the Eligible
Director in full in cash or by bank certified, cashier's or personal check at
the time of exercise of the option.

<PAGE>   2

                               EXERCISE OF OPTION

         4.1 The within option may be exercised according to the following
schedule:

                  4.1.1 Fifty (50%) percent of the options granted become
exercisable on the date of the first Annual Meeting after the date hereof.

                  4.1.2 The remaining fifty (50%) percent of the options granted
become exercisable on the date of the second Annual Meeting after the date
hereof.

                                 TERM OF OPTION

         5.1 The options granted shall expire ten years from the date hereof,
but are subject to earlier termination as follows:

                  5.1.1 In the event of the termination of the optionee's
service as a Director, other than by reason of retirement, total and permanent
disability, or death, the options granted herein that have not been exercised
shall automatically expire on the effective date of termination.

                  5.1.2 In the event of termination of the optionee by reason of
retirement or total and permanent disability, all vested options shall become
exercisable to the full extent of the number of Shares remaining then
outstanding, regardless of whether such options were previously exercisable and
each such option shall expire four years after the date of such termination or
on the stated grant expiration date whichever is earlier.

                  5.1.3 In the event of the death of the optionee while he is
still a Director, vested options as per Section 2.1 hereof shall become
exercisable, to the full extent of Shares remaining covered by such options,
regardless of whether such options were previously exercisable and each such
option shall expire four years after the date of death of such optionee or on
the stated grant expiration, whichever is earlier.

                       RESTRICTIONS ON EXERCISE OF OPTION
                     AND SALE OF STOCK BY ELIGIBLE DIRECTOR

         6.1 The within option shall not be exercisable if:

                  (a) The exercise thereof will involve a violation of any
applicable federal or state securities law; or

                  (b) The exercise thereof will require registration under the
Securities Act of 1933, as amended, of the shares of stock or other securities
of the Company to be purchased by the Eligible Director pursuant to such
exercise.

         6.2 The Company hereby agrees to make such reasonable efforts to comply
with any applicable state securities law as the Committee of the Company shall
determine are reasonably necessary but such efforts shall not subject the
Company to unreasonable expense or hardship.

         6.3 At the time of any exercise of the within option, the Eligible
Director shall represent to and agree with the Company in writing that he is
acquiring the shares in respect of which the option is being exercised for the
purpose of investment and not with a view of distribution.

         6.4 The Eligible Director agrees that he will not sell or otherwise
dispose of any shares of stock or other securities of the Company purchased by
him pursuant to the exercise of all or any portion of the within option at any
time unless there is an effective Registration Statement in respect of such
shares or other securities under the provisions of the Securities Act

                                                                               2
<PAGE>   3

of 1933, as amended, or counsel for the Company is reasonably satisfied that an
exemption from such registration provisions is available to the Company and the
Eligible Director.

                                  MISCELLANEOUS

         7.1 This Agreement shall be binding upon and inure to the benefit of
the Company and its successors and the Eligible Director and his executors,
administrators or personal representatives provided that the within option shall
be non-transferable by the Eligible Director otherwise than by will or by the
laws of descent and distribution, and during the lifetime of the Eligible
Director the option shall be exercisable only by him.

         7.2 In the event there are any changes in the capitalization of the
Company through merger, consolidation, recapitalization, stock dividend or other
change in the corporate or capital structure of the Company, appropriate
adjustments, as may seem equitable to the Committee shall be made in the number
of shares and the exercise price per share of the options to prevent dilution of
the rights granted hereunder.

         7.3 This Agreement shall be deemed to be made under and shall be
construed in accordance with the laws of the State of Florida.

         7.4 This Agreement shall become effective as of the date hereof and,
unless sooner terminated, shall remain in effect for a period of ten (10) years
from the date hereof. This Agreement may be terminated at any time by mutual
consent of the parties hereto, but no modification or amendment of this
Agreement shall become effective until such modification or amendment shall have
been approved by the Committee.

         IN WITNESS WHEREOF, the Company has caused this Stock Option Agreement
to be executed by its President or Vice President and the Eligible Director has
executed this Agreement, the day and year first above written.

                                               ORIOLE HOMES CORP.

                                               /s/ Richard D. Levy
                                               ----------------------------
                                               Richard D. Levy
                                               Chief Executive Officer

                                               /s/ George R. Richards
                                               ----------------------------
                                               George R. Richards, Director

                                                                               3<PAGE>   1
<TABLE>
<S>                                                    <C>
American Residential Eagle Certificate Trust           Contact:       Customer Service - CTSLink
Mortgage Pass-Through Certificates                                    Wells Fargo Bank Minnesota, N.A.
Record Date:                      30-Jun-2000                         Securities Administration Services
Distribution Date:                25-Jul-2000                         7485 New Horizon Way
                                                                      Frederick, MD 21703
                                                                      Telephone:     (301) 815-6600
                                                                      Fax:           (301) 846-8152
</TABLE>

                                ARE Series 1999-2

                     Certificateholder Distribution Summary

<TABLE>
<CAPTION>
                         Certificate   Certificate    Beginning
                            Class     Pass-Through   Certificate
Class           CUSIP    Description     Rate          Balance
------------------------------------------------------------------------
<S>           <C>        <C>          <C>          <C>
   A-1        02926NAB2      SEQ        6.99125%   288,654,159.86
   A-2        02926NAC0      SEQ        7.09000%    54,596,804.74
INV_CERT      AMINV1992      SEQ        0.00000%     9,915,042.09
                                                   --------------
Totals                                             353,166,006.69
                                                   ==============
</TABLE>

<TABLE>
<CAPTION>
                                                Current       Ending                         Cumulative
               Interest         Principal      Realized     Certificate           Total       Realized
Class        Distribution     Distribution       Loss         Balance         Distribution     Losses
-------------------------------------------------------------------------------------------------------
<S>          <C>              <C>              <C>         <C>                <C>            <C>
   A-1       1,625,654.12      7,005,481.53      0.00      281,648,678.33      8,631,135.65      0.00
   A-2         322,576.12        551,471.94      0.00       54,045,332.80        874,048.06      0.00
INV_CERT             0.00              0.00      0.00       10,443,382.06              0.00      0.00
             ------------      ------------      ----      --------------      ------------      ----
Totals       1,948,230.24      7,556,953.47      0.00      346,137,393.19      9,505,183.71      0.00
             ============      ============      ====      ==============      ============      ====
</TABLE>

------------------
All distributions required by the Pooling and Servicing Agreement have been
calculated by the Certificate Administrator on behalf of the Trustee.

                                     Page 1

<PAGE>   2
<TABLE>
<S>                                                    <C>
American Residential Eagle Certificate Trust           Contact:       Customer Service - CTSLink
Mortgage Pass-Through Certificates                                    Wells Fargo Bank Minnesota, N.A.
Record Date:                      30-Jun-2000                         Securities Administration Services
Distribution Date:                25-Jul-2000                         7485 New Horizon Way
                                                                      Frederick, MD 21703
                                                                      Telephone:     (301) 815-6600
                                                                      Fax:           (301) 846-8152
</TABLE>

                                ARE Series 1999-2

                        Principal Distribution Statement

<TABLE>
<CAPTION>
                 Original           Beginning             Scheduled        Unscheduled
                   Face            Certificate            Principal          Principal
Class             Amount             Balance             Distribution       Distribution
-------------------------------------------------------------------------------------------
<S>           <C>                 <C>                    <C>               <C>
A-1           332,350,000.00      288,654,159.86          172,959.71        6,832,521.82
A-2            61,750,000.00       54,596,804.74           54,337.41          497,134.53
INV_CERT       10,223,416.68        9,915,042.09                0.00                0.00
              --------------      --------------          ----------        ------------
Totals        404,323,416.68      353,166,006.69          227,297.12        7,329,656.35
              --------------      --------------          ----------        ------------
</TABLE>

<TABLE>
<CAPTION>
                                              Total            Ending                Ending               Total
                           Realized         Principal        Certificate           Certificate          Principal
Class          Accretion    Loss(1)         Reduction          Balance              Percentage        Distribution
------------------------------------------------------------------------------------------------------------------
<S>            <C>         <C>            <C>               <C>                    <C>                <C>
A-1               0.00        0.00        7,005,481.53      281,648,678.33          0.84744600        7,005,481.53
A-2               0.00        0.00          551,471.94       54,045,332.80          0.87522806          551,471.94
INV_CERT          0.00        0.00                0.00       10,443,382.06          1.02151584                0.00
                  ----        ----        ------------      --------------          ----------        ------------
Totals            0.00        0.00        7,556,953.47      346,137,393.19          0.85609039        7,556,953.47
                  ----        ----        ------------      --------------          ----------        ------------
</TABLE>

(1)     Amount Does Not Include Excess Special Hazard, Bankruptcy, or Fraud
        Losses Unless Otherwise Disclosed. Please Refer to the Prospectus
        Supplement for a Full Descript

                                     Page 2

<PAGE>   3
<TABLE>
<S>                                                    <C>
American Residential Eagle Certificate Trust           Contact:       Customer Service - CTSLink
Mortgage Pass-Through Certificates                                    Wells Fargo Bank Minnesota, N.A.
Record Date:                      30-Jun-2000                         Securities Administration Services
Distribution Date:                25-Jul-2000                         7485 New Horizon Way
                                                                      Frederick, MD 21703
                                                                      Telephone:     (301) 815-6600
                                                                      Fax:           (301) 846-8152
</TABLE>

                                ARE Series 1999-2

                    Principal Distribution Factors Statement

<TABLE>
<CAPTION>
                  Original            Beginning           Scheduled         Unscheduled
                   Face              Certificate          Principal           Principal
Class (2)         Amount               Balance           Distribution       Distribution          Accretion
------------------------------------------------------------------------------------------------------------
<S>           <C>                   <C>                  <C>                <C>                   <C>
A-1           332,350,000.00        868.52462723          0.52041435         20.55821219          0.00000000
A-2            61,750,000.00        884.15878121          0.87995806          8.05076162          0.00000000
INV_CERT       10,223,416.68          0.00000000          0.00000000          0.00000000          0.00000000
</TABLE>

<TABLE>
<CAPTION>
                                    Total              Ending              Ending              Total
               Realized           Principal          Certificate         Certificate          Principal
Class (2)       Loss (3)          Reduction            Balance            Percentage        Distribution
--------------------------------------------------------------------------------------------------------
<S>           <C>                <C>                <C>                  <C>                <C>
A-1           0.00000000         21.07862654        847.44600069          0.84744600         21.07862654
A-2           0.00000000          8.93071968        875.22806154          0.87522806          8.93071968
INV_CERT      0.00000000          0.00000000          0.00000000          1.02151584          0.00000000
</TABLE>

All Denominations are Per 1000

(3)     Amount Does Not Include Excess Special Hazard, Bankruptcy, or Fraud
        Losses Unless Otherwise Disclosed. Please Refer to the Prospectus
        Supplement for a Full Descript

                                     Page 3

<PAGE>   4
<TABLE>
<S>                                                    <C>
American Residential Eagle Certificate Trust           Contact:       Customer Service - CTSLink
Mortgage Pass-Through Certificates                                    Wells Fargo Bank Minnesota, N.A.
Record Date:                      30-Jun-2000                         Securities Administration Services
Distribution Date:                25-Jul-2000                         7485 New Horizon Way
                                                                      Frederick, MD 21703
                                                                      Telephone:     (301) 815-6600
                                                                      Fax:           (301) 846-8152
</TABLE>

                                ARE Series 1999-2

                        Interest Distribution Statement

<TABLE>
<CAPTION>
                                                     Beginning
                   Original        Current          Certificate/          Current         Payment of
                     Face        Certificate          Notional            Accrued           Unpaid
Class               Amount           Rate             Balance            Interest          Interest
-----------------------------------------------------------------------------------------------------
<S>              <C>             <C>               <C>                 <C>               <C>
A-1              332,350,000.00   6.99125%         288,654,159.86      1,625,654.12              0.00
A-2               61,750,000.00   7.09000%          54,596,804.74        322,576.12              0.00
INV_CERT          10,223,416.68   0.00000%           9,915,042.09              0.00              0.00
Totals           404,323,416.68                                        1,948,230.24              0.00
</TABLE>

<TABLE>
<CAPTION>
                                                                           Remaining           Ending
                Current      Non-Supported                 Total            Unpaid           Certificate/
                Interest        Interest    Realized      Interest         Interest           Notional
Class           Shortfall       Shortfall    Loss(4)    Distribution       Shortfall           Balance
----------------------------------------------------------------------------------------------------------
<S>             <C>          <C>            <C>         <C>               <C>               <C>
A-1               0.00              0.00      0.00      1,625,654.12              0.00      281,648,678.33
A-2               0.00              0.00      0.00        322,576.12              0.00       54,045,332.80
INV_CERT          0.00              0.00      0.00              0.00              0.00       10,443,382.06
Totals            0.00              0.00      0.00      1,948,230.24              0.00
</TABLE>

(4)     Amount Does Not Include Excess Special Hazard, Bankruptcy, or Fraud
        Losses Unless Otherwise Disclosed. Please Refer to the Prospectus
        Supplement for a Full Description.

                                     Page 4

<PAGE>   5
<TABLE>
<S>                                                    <C>
American Residential Eagle Certificate Trust           Contact:       Customer Service - CTSLink
Mortgage Pass-Through Certificates                                    Wells Fargo Bank Minnesota, N.A.
Record Date:                      30-Jun-2000                         Securities Administration Services
Distribution Date:                25-Jul-2000                         7485 New Horizon Way
                                                                      Frederick, MD 21703
                                                                      Telephone:     (301) 815-6600
                                                                      Fax:           (301) 846-8152
</TABLE>

                                ARE Series 1999-2

                    Interest Distribution Factors Statement

<TABLE>
<CAPTION>
                                                         Beginning                               Payment of
                 Original              Current          Certificate/            Current            Unpaid
                   Face              Certificate          Notional              Accrued            Interest
Class(5)          Amount                 Rate              Balance             Interest           Shortfall
------------------------------------------------------------------------------------------------------------
<S>           <C>                    <C>                <C>                   <C>                <C>
A-1           332,350,000.00           6.99125 %        868.52462723          4.89139197          0.00000000
A-2            61,750,000.00           7.09000 %        884.15878121          5.22390478          0.00000000
INV_CERT       10,223,416.68           0.00000 %          0.00000000          0.00000000          0.00000000
</TABLE>

<TABLE>
<CAPTION>
                                                                                             Remaining             Ending
               Current         Non-Supported                                Total             Unpaid            Certificate/
               Interest           Interest             Realized           Interest           Interest             Notional
Class(5)      Shortfall          Shortfall              Loss(6)         Distribution         Shortfall            Balance
---------------------------------------------------------------------------------------------------------------------------
<S>           <C>             <C>                    <C>                 <C>                 <C>               <C>
A-1           .00000000          0.00000000          0.00000000          4.89139197          0.00000000        847.44600069
A-2           .00000000          0.00000000          0.00000000          5.22390478          0.00000000        875.22806154
INV_CERT      .00000000          0.00000000          0.00000000          0.00000000          0.00000000          0.00000000
</TABLE>

All Denominations are Per 1000

(6)     Amount Does Not Include Excess Special Hazard, Bankruptcy, or Fraud
        Losses Unless Otherwise Disclosed. Please Refer to the Prospectus
        Supplement for a Full Description.

                                     Page 5

<PAGE>   6
<TABLE>
<S>                                                    <C>
American Residential Eagle Certificate Trust           Contact:       Customer Service - CTSLink
Mortgage Pass-Through Certificates                                    Wells Fargo Bank Minnesota, N.A.
Record Date:                      30-Jun-2000                         Securities Administration Services
Distribution Date:                25-Jul-2000                         7485 New Horizon Way
                                                                      Frederick, MD 21703
                                                                      Telephone:     (301) 815-6600
                                                                      Fax:           (301) 846-8152
</TABLE>

                                ARE Series 1999-2

                     Certificateholder Component Statement

<TABLE>
<CAPTION>
             Component      Beginning       Ending       Beginning         Ending           Ending
            Pass-Through    Notional       Notional      Component       Component        Component
Class           Rate         Balance        Balance       Balance         Balance         Percentage
------------------------------------------------------------------------------------------------------
<S>        <C>             <C>             <C>           <C>             <C>             <C>
FEE        1,200.00000 %    58,704.00      57,395.32       0.00            0.00          85.12626485 %
</TABLE>

                                     Page 6

<PAGE>   7
<TABLE>
<S>                                                    <C>
American Residential Eagle Certificate Trust           Contact:       Customer Service - CTSLink
Mortgage Pass-Through Certificates                                    Wells Fargo Bank Minnesota, N.A.
Record Date:                      30-Jun-2000                         Securities Administration Services
Distribution Date:                25-Jul-2000                         7485 New Horizon Way
                                                                      Frederick, MD 21703
                                                                      Telephone:     (301) 815-6600
                                                                      Fax:           (301) 846-8152
</TABLE>

                                ARE Series 1999-2

                      Certificateholder Account Statement

<TABLE>
<S>                                                         <C>
                               CERTIFICATE ACCOUNT

Beginning Balance                                                   0.00

Deposits
     Payments of Interest and Principal                     9,820,672.08
     Liquidations, Insurance Proceeds, Reserve Funds                0.00
     Proceeds from Repurchased Loans                                0.00
     Other Amounts (Servicer Advances)                              0.00
     Realized Losses                                          (11,447.20)
                                                            ------------
Total Deposits                                              9,809,224.88

Withdrawals
     Reimbursement for Servicer Advances                            0.00
     Payment of Service Fee                                   304,041.17
     Payment of Interest and Principal                      9,505,183.71
                                                            ------------
Total Withdrawals (Pool Distribution Amount)                9,809,224.88

Ending Balance                                                      0.00
                                                            ============

                   PREPAYMENT/CURTAILMENT INTEREST SHORTFALL

Total Prepayment/Curtailment Interest Shortfall                     0.00
Servicing Fee Support                                               0.00
                                                            ------------

Non-Supported Prepayment/Curtailment Interest Shortfall             0.00
                                                            ============

                                 SERVICING FEES

Gross Servicing Fee                                           147,152.52
Management Fee                                                  1,000.00
FSA Group 1 Premium                                            50,514.48
FSA Group 2 Premium                                             8,189.52
PMI Group 1 Fee                                                85,749.11
PMI Group 2 Fee                                                11,435.54
Supported Prepayment/Curtailment Interest Shortfall                 0.00
                                                            ------------

Net Servicing Fee                                             304,041.17
                                                            ============
</TABLE>

                                 OTHER ACCOUNTS

<TABLE>
<CAPTION>
                                      Beginning         Current         Current        Ending
Account Type                           Balance         Withdrawals      Deposits       Balance
----------------------------------------------------------------------------------------------
<S>                                   <C>              <C>              <C>            <C>
Financial Guaranty                       0.00              0.00           0.00          0.00
Financial Guaranty                       0.00              0.00           0.00          0.00
</TABLE>

                                     Page 7

<PAGE>   8
<TABLE>
<S>                                                    <C>
American Residential Eagle Certificate Trust           Contact:       Customer Service - CTSLink
Mortgage Pass-Through Certificates                                    Wells Fargo Bank Minnesota, N.A.
Record Date:                      30-Jun-2000                         Securities Administration Services
Distribution Date:                25-Jul-2000                         7485 New Horizon Way
                                                                      Frederick, MD 21703
                                                                      Telephone:     (301) 815-6600
                                                                      Fax:           (301) 846-8152
</TABLE>

                                ARE SERIES 1999-2

           Certificateholder Delinquency/Credit Enhancement Statement

                                   DELINQUENT

<TABLE>
<CAPTION>
                  No. of         Principal
                  Loans            Balance
<S>           <C>               <C>
30 Days                 66      5,897,787.74
60 Days                  7        526,838.80
90 Days                  2        177,025.03
120 Days                 0              0.00
150 Days                 0              0.00
180 Days                 0              0.00
              ------------      ------------
                        75      6,601,651.57
</TABLE>

<TABLE>
<CAPTION>
                No. of       Principal
                Loans         Balance
<S>           <C>            <C>
30 Days       1.978417%      1.702603%
60 Days       0.209832%      0.152091%
90 Days       0.059952%      0.051104%
120 Days      0.000000%      0.000000%
150 Days      0.000000%      0.000000%
180 Days      0.000000%      0.000000%
              --------       --------
              2.248201%      1.905798%
</TABLE>

                                   BANKRUPTCY

<TABLE>
<CAPTION>
                 No. of           Principal
                  Loans            Balance
<S>           <C>               <C>
30 Days                  1        242,722.51
60 Days                  2         80,647.18
90 Days                  4        324,917.37
120 Days                 1         77,396.48
150 Days                 2        175,105.12
180 Days                24      1,993,301.29
              ------------      ------------
                        34      2,894,089.95
</TABLE>

<TABLE>
<CAPTION>
                No. of       Principal
                Loans         Balance
<S>           <C>            <C>
30 Days       0.029976%      0.070070%
60 Days       0.059952%      0.023282%
90 Days       0.119904%      0.093799%
120 Days      0.029976%      0.022343%
150 Days      0.059952%      0.050550%
180 Days      0.719424%      0.575436%
              --------       --------
              1.019185%      0.835481%
</TABLE>

                                   FORECLOSURE

<TABLE>
<CAPTION>
                      No. of            Principal
                       Loans             Balance
<S>                <C>                <C>
30 Days                        2         103,972.62
60 Days                       19       1,521,959.33
90 Days                       19       2,217,019.87
120 Days                      16       1,738,891.00
150 Days                       7         803,484.58
180 Days                      56       3,979,945.59
                   -------------      -------------
                             119      10,365,272.99
</TABLE>

<TABLE>
<CAPTION>

                    No. of         Principal
                     Loans          Balance
<S>                <C>            <C>
30 Days            0.059952%      0.030015%
60 Days            0.569544%      0.439367%
90 Days            0.569544%      0.640021%
120 Days           0.479616%      0.501992%
150 Days           0.209832%      0.231954%
180 Days           1.678657%      1.148951%
                   --------       --------
                   3.567146%      2.992300%
</TABLE>

                                       REO

<TABLE>
<CAPTION>
                 No. of        Principal
                 Loans          Balance
<S>           <C>             <C>
30 Days                0            0.00
60 Days                0            0.00
90 Days                0            0.00
120 Days               0            0.00
150 Days               1       99,598.79
180 Days               6      418,226.31
              ----------      ----------
                       7      517,825.10
</TABLE>

<TABLE>
<CAPTION>
               No. of       Principal
               Loans       Balance
<S>           <C>            <C>
30 Days       0.000000%      0.000000%
60 Days       0.000000%      0.000000%
90 Days       0.000000%      0.000000%
120 Days      0.000000%      0.000000%
150 Days      0.029976%      0.028753%
180 Days      0.179856%      0.120736%
--------      --------       --------
              0.209832%      0.149488%
</TABLE>

<TABLE>
<CAPTION>
                                                  TOTAL
                  No. of           Principal
                  Loans             Balance
<S>           <C>                <C>
30 Days                  69       6,244,482.87
60 Days                  28       2,129,445.31
90 Days                  25       2,718,962.27
120 Days                 17       1,816,287.48
150 Days                 10       1,078,188.49
180 Days                 86       6,391,473.19
              -------------      -------------
                        235      20,378,839.61
</TABLE>

<TABLE>
<CAPTION>
               No. of        Principal
                Loans         Balance
<S>           <C>            <C>
30 Days       2.068345%      1.802689%
60 Days       0.839329%      0.614739%
90 Days       0.749400%      0.784924%
120 Days      0.509592%      0.524335%
150 Days      0.299760%      0.311257%
180 Days      2.577938%      1.845123%
              --------       --------
              7.044365%      5.883067%
</TABLE>

Delinquencies are stratified according to the information the Servicer has
provided.

<TABLE>
<S>                                                             <C>
Current Period Realized Loss - Includes Interest Shortfall           0.00
Cumulative Realized Losses - Includes Interest Shortfall        99,587.94
Current Period Class A Insufficient Funds                            0.00
Principal Balance of Contaminated Properties                         0.00
Periodic Advance                                                     0.00
</TABLE>

                                     Page 8

<PAGE>   9
<TABLE>
<S>                                                    <C>
American Residential Eagle Certificate Trust           Contact:       Customer Service - CTSLink
Mortgage Pass-Through Certificates                                    Wells Fargo Bank Minnesota, N.A.
Record Date:                      30-Jun-2000                         Securities Administration Services
Distribution Date:                25-Jul-2000                         7485 New Horizon Way
                                                                      Frederick, MD 21703
                                                                      Telephone:     (301) 815-6600
                                                                      Fax:           (301) 846-8152
</TABLE>

                                ARE SERIES 1999-2

                          Delinquency Status By Group

Group 1

                                   DELINQUENT

<TABLE>
<CAPTION>
                  No. of         Principal
                  Loans           Balance
<S>           <C>               <C>
30 Days                 49      4,626,197.79
60 Days                  4        342,529.02
90 Days                  2        177,025.03
120 Days                 0              0.00
150 Days                 0              0.00
180 Days                 0              0.00
              ------------      ------------
                        55      5,145,751.84
</TABLE>

<TABLE>
<CAPTION>
                No. of        Principal
                Loans         Balance
<S>           <C>            <C>
30 Days       1.860995%      1.589609%
60 Days       0.151918%      0.117697%
90 Days       0.075959%      0.060828%
120 Days      0.000000%      0.000000%
150 Days      0.000000%      0.000000%
180 Days      0.000000%      0.000000%
              --------       --------
              2.088872%      1.768133%
</TABLE>

                                   BANKRUPTCY

<TABLE>
<CAPTION>
                  No. of          Principal
                  Loans           Balance
<S>           <C>               <C>
30 Days                  1        242,722.51
60 Days                  0              0.00
90 Days                  4        324,917.37
120 Days                 1         77,396.48
150 Days                 2        175,105.12
180 Days                19      1,652,342.94
              ------------      ------------
                        27      2,472,484.42
</TABLE>

<TABLE>
<CAPTION>
                No. of       Principal
                Loans         Balance
<S>           <C>            <C>
30 Days       0.037979%      0.083402%
60 Days       0.000000%      0.000000%
90 Days       0.151918%      0.111645%
120 Days      0.037979%      0.026594%
150 Days      0.075959%      0.060168%
180 Days      0.721610%      0.567762%
              --------       --------
              1.025446%      0.849571%
</TABLE>

                                   FORECLOSURE

<TABLE>
<CAPTION>
                  No. of          Principal
                  Loans           Balance
<S>           <C>               <C>
30 Days                  2        103,972.62
60 Days                 15      1,125,641.73
90 Days                 16      1,633,579.87
120 Days                13      1,546,209.39
150 Days                 5        575,814.41
180 Days                40      3,098,359.45
              ------------      ------------
                        91      8,083,577.47
</TABLE>

<TABLE>
<CAPTION>
                No. of        Principal
                Loans         Balance
<S>           <C>            <C>
30 Days       0.075959%      0.035726%
60 Days       0.569692%      0.386782%
90 Days       0.607672%      0.561315%
120 Days      0.493733%      0.531294%
150 Days      0.189897%      0.197856%
180 Days      1.519180%      1.064628%
              --------       --------
              3.456134%      2.777601%
</TABLE>

                                       REO

<TABLE>
<CAPTION>
                 No. of        Principal
                 Loans         Balance
<S>           <C>             <C>
30 Days                0            0.00
60 Days                0            0.00
90 Days                0            0.00
120 Days               0            0.00
150 Days               1       99,598.79
180 Days               5      386,762.22
              ----------      ----------
                       6      486,361.01
</TABLE>

<TABLE>
<CAPTION>
               No. of         Principal
               Loans          Balance
<S>           <C>            <C>
30 Days       0.000000%      0.000000%
60 Days       0.000000%      0.000000%
90 Days       0.000000%      0.000000%
120 Days      0.000000%      0.000000%
150 Days      0.037979%      0.034223%
180 Days      0.189897%      0.132895%
              --------       --------
              0.227877%      0.167119%
</TABLE>

<TABLE>
<CAPTION>
                                                TOTAL
                  No. of            Principal
                  Loans             Balance
<S>           <C>                <C>
30 Days                  52       4,972,892.92
60 Days                  19       1,468,170.75
90 Days                  22       2,135,522.27
120 Days                 14       1,623,605.87
150 Days                  8         850,518.32
180 Days                 64       5,137,464.61
              -------------      -------------
                        179      16,188,174.74
</TABLE>

<TABLE>
<CAPTION>
                 No. of      Principal
                 Loans       Balance
<S>            <C>          <C>
30 Days        1.974934%    1.708737%
60 Days        0.721610%    0.504479%
90 Days        0.835549%    0.733788%
120 Days       0.531713%    0.557888%
150 Days       0.303836%    0.292247%
180 Days       2.430687%    1.765286%
               --------     --------
               6.798329%    5.562424%
</TABLE>

Group 2

                                   DELINQUENT

<TABLE>
<CAPTION>
                 No. of           Principal
                 Loans            Balance
<S>           <C>               <C>
30 Days                 17      1,271,589.95
60 Days                  3        184,309.78
90 Days                  0              0.00
120 Days                 0              0.00
150 Days                 0              0.00
180 Days                 0              0.00
              ------------      ------------
                        20      1,455,899.73
</TABLE>

<TABLE>
<CAPTION>
                No. of         Principal
                Loans         Balance
<S>           <C>            <C>
30 Days       2.418208%      2.296496%
60 Days       0.426743%      0.332864%
90 Days       0.000000%      0.000000%
120 Days      0.000000%      0.000000%
150 Days      0.000000%      0.000000%
180 Days      0.000000%      0.000000%
              --------       --------
              2.844950%      2.629360%
</TABLE>

                                   BANKRUPTCY

<TABLE>
<CAPTION>
                 No. of        Principal
                 Loans         Balance
<S>           <C>             <C>
30 Days                0            0.00
60 Days                2       80,647.18
90 Days                0            0.00
120 Days               0            0.00
150 Days               0            0.00
180 Days               5      340,958.35
--------      ----------      ----------
                       7      421,605.53
</TABLE>

<TABLE>
<CAPTION>
                No. of        Principal
                Loans         Balance
<S>           <C>            <C>
30 Days       0.000000%      0.000000%
60 Days       0.284495%      0.145649%
90 Days       0.000000%      0.000000%
120 Days      0.000000%      0.000000%
150 Days      0.000000%      0.000000%
180 Days      0.711238%      0.615772%
              --------       --------
              0.995733%      0.761421%
</TABLE>

                                   FORECLOSURE

<TABLE>
<CAPTION>
                  No. of          Principal
                  Loans           Balance
<S>           <C>               <C>
30 Days                  0              0.00
60 Days                  4        396,317.60
90 Days                  3        583,440.00
120 Days                 3        192,681.61
150 Days                 2        227,670.17
180 Days                16        881,586.14
              ------------      ------------
                        28      2,281,695.52
</TABLE>

<TABLE>
<CAPTION>
                No. of        Principal
                Loans         Balance
<S>           <C>            <C>
30 Days       0.000000%      0.000000%
60 Days       0.568990%      0.715751%
90 Days       0.426743%      1.053695%
120 Days      0.426743%      0.347984%
150 Days      0.284495%      0.411173%
180 Days      2.275960%      1.592148%
              --------       --------
              3.982930%      4.120750%
</TABLE>

                                       REO

<TABLE>
<CAPTION>
                 No. of       Principal
                 Loans        Balance
<S>           <C>            <C>
30 Days               0           0.00
60 Days               0           0.00
90 Days               0           0.00
120 Days              0           0.00
150 Days              0           0.00
180 Days              1      31,464.09
              ---------      ---------
                      1      31,464.09
</TABLE>

<TABLE>
<CAPTION>
                No. of         Principal
                Loans          Balance
<S>           <C>            <C>
30 Days       0.000000%      0.000000%
60 Days       0.000000%      0.000000%
90 Days       0.000000%      0.000000%
120 Days      0.000000%      0.000000%
150 Days      0.000000%      0.000000%
180 Days      0.142248%      0.056824%
              --------       --------
              0.142248%      0.056824%
</TABLE>

<TABLE>
<CAPTION>
                                               TOTAL
                  No. of          Principal
                  Loans           Balance
<S>           <C>               <C>
30 Days                 17      1,271,589.95
60 Days                  9        661,274.56
90 Days                  3        583,440.00
120 Days                 3        192,681.61
150 Days                 2        227,670.17
180 Days                22      1,254,008.58
              ------------      ------------
                        56      4,190,664.87
</TABLE>

<TABLE>
<CAPTION>
               No. of         Principal
               Loans          Balance
<S>           <C>            <C>
30 Days       2.418208%      2.296496%
60 Days       1.280228%      1.194264%
90 Days       0.426743%      1.053695%
120 Days      0.426743%      0.347984%
150 Days      0.284495%      0.411173%
180 Days      3.129445%      2.264744%
              --------       --------
              7.965861%      7.568356%
</TABLE>

                                     Page 9

<PAGE>   10
<TABLE>
<S>                                                    <C>
American Residential Eagle Certificate Trust           Contact:       Customer Service - CTSLink
Mortgage Pass-Through Certificates                                    Wells Fargo Bank Minnesota, N.A.
Record Date:                      30-Jun-2000                         Securities Administration Services
Distribution Date:                25-Jul-2000                         7485 New Horizon Way
                                                                      Frederick, MD 21703
                                                                      Telephone:     (301) 815-6600
                                                                      Fax:           (301) 846-8152
</TABLE>

                               ARE Series 1999-2

<TABLE>
<CAPTION>
                      Original $           Original%      Current $            Current%
<S>                 <C>                   <C>           <C>                   <C>
Bankruptcy             100,000.00         0.02473268%      100,000.00         0.02889026%
Fraud               12,129,702.50         3.00000000%   12,129,702.50         3.50430283%
Special Hazard       4,043,234.17         1.00000000%    4,043,234.17         1.16810094%
</TABLE>

Limit of Subordinate's Exposure to Certain Types of Losses

                                    Page 10

<PAGE>   11
<TABLE>
<S>                                                    <C>
American Residential Eagle Certificate Trust           Contact:       Customer Service - CTSLink
Mortgage Pass-Through Certificates                                    Wells Fargo Bank Minnesota, N.A.
Record Date:                      30-Jun-2000                         Securities Administration Services
Distribution Date:                25-Jul-2000                         7485 New Horizon Way
                                                                      Frederick, MD 21703
                                                                      Telephone:     (301) 815-6600
                                                                      Fax:           (301) 846-8152
</TABLE>

                               ARE Series 1999-2

                              COLLATERAL STATEMENT

<TABLE>
<CAPTION>
Collateral Description                               Fixed & Mixed ARM
<S>                                                  <C>
Weighted Average Gross Coupon                                9.491174%

Weighted Average Net  Coupon                                 8.991174%

Weighted Average Pass-Through Rate                           8.991174%

Weighted Average Maturity (Stepdown Calculation)                  336

Beginning Scheduled Collateral Loan Count                       3,400

Number of Loans Paid in Full                                       64

Ending Scheduled Collateral Loan Count                          3,336

Beginning Scheduled Collateral Balance                 353,166,007.04

Ending Scheduled Collateral Balance                    346,137,394.11

Ending Actual Collateral Balance at 30-Jun-2000        346,398,211.99

Monthly P&I Constant                                     3,019,356.26

Ending Scheduled Balance for Premium Loans             346,137,394.11
</TABLE>

                                    Page 11

<PAGE>   12
<TABLE>
<S>                                                    <C>
American Residential Eagle Certificate Trust           Contact:       Customer Service - CTSLink
Mortgage Pass-Through Certificates                                    Wells Fargo Bank Minnesota, N.A.
Record Date:                      30-Jun-2000                         Securities Administration Services
Distribution Date:                25-Jul-2000                         7485 New Horizon Way
                                                                      Frederick, MD 21703
                                                                      Telephone:     (301) 815-6600
                                                                      Fax:           (301) 846-8152
</TABLE>

                               ARE Series 1999-2

<TABLE>
<CAPTION>
Group                                                1                   2                 Total

Collateral  Description                         Mixed ARM           Mixed Fixed
<S>                                         <C>                    <C>                <C>
Weighted Average Coupon Rate                       9.462453             9.617385
Weighted Average Net Rate                          8.616352             8.871712
Weighted Average Maturity                            346.00               282.00
Record Date                                        06/30/00             06/30/00
Principal And  Interest Constant               2,517,349.97           502,006.29         3,019,356.26
Beginning Loan Count                                  2,689                  711                3,400
Loans Paid In Full                                       56                    8                   64
Ending Loan Count                                     2,633                  703                3,336
Beginning Scheduled Balance                  297,308,551.06        55,857,455.98       353,166,007.04
Ending Scheduled Balance                     290,831,410.07        55,305,984.04       346,137,394.11
Scheduled Principal                              172,959.71            54,337.41           227,297.12
Unscheduled Principal                          6,304,181.28           497,134.53         6,801,315.81
Scheduled Interest                             2,344,390.26           447,668.88         2,792,059.14
Servicing Fee                                    123,878.58            23,273.94           147,152.52
Master Servicing Fee                                   0.00                 0.00                 0.00
Trustee Fee                                            0.00                 0.00                 0.00
FRY Amount                                             0.00                 0.00                 0.00
Special Hazard Fee                                     0.00                 0.00                 0.00
Other Fee                                         85,749.11            11,435.54            97,184.65
Pool Insurance Fee                                     0.00                 0.00                 0.00
Spread 1                                               0.00                 0.00                 0.00
Spread 2                                               0.00                 0.00                 0.00
Spread 3                                               0.00                 0.00                 0.00
Net Interest                                   2,134,762.57           412,959.40         2,547,721.97
Realized Loss Amount                              11,447.20                 0.00            11,447.20
Cumulative Realized Loss                          99,002.07               585.87            99,587.94
Percentage of Cumulative Losses                        0.00                 0.00                 0.00
</TABLE>

<TABLE>
<CAPTION>
                                                    1                    2                  Total
<S>                                           <C>                   <C>                 <C>
Required Overcollateralization Amount         11,377,930.92         1,260,651.24        12,638,582.16
Overcollateralization Increase Amount                  0.00                 0.00                 0.00
Overcollateralization Reduction Amount                 0.00                 0.00                 0.00
Specified Overcollateralization Amount        11,377,930.92         1,260,651.24        12,638,582.16
Overcollateralization Amount                   9,182,730.82         1,260,651.24        10,443,382.06
Overcollateralization Deficiency Amount        2,195,200.10                 0.00         2,195,200.10
Base Overcollateralization Amount              7,679,044.23         1,260,651.24         8,939,695.47
Extra Principal Distribution Amount              539,787.76                 0.00           539,787.76
Excess Cash  Amount                              457,753.04            82,034.70           539,787.74
</TABLE>

                                    Page 12

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