SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): April 21, 1998
NATIONAL FINANCIAL AUTO FUNDING TRUST
(Exact name of registrant as specified in its charter)
333-44159
Delaware 333-28829 not applicable
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
One Park Place
621 N.W. 53rd Street
Boca Raton, FL 33487
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (800) 999-7535
Item 5. Other Events
On January 20, 1998 (the Closing Date), National Auto Finance 1998-1 Trust, a
Delaware business trust formed by National Financial Auto Funding Trust (the
Registrant) issued $85,200,000 aggregate principal amount of Notes designated
the National Auto Finance 1998-1 Trust 5.88% Automobile Receivables-Backed
Notes, Series 1998-1 (the Notes), pursuant to an Indenture, dated as of
December 15, 1997, between the 98-1 Trust and Harris Trust and Savings Bank,
as Trustee and Trust Collateral Agent. The Notes are secured by trust property
consisting primarily of a segregated pool (the Receivables Pool) of non-prime
motor vehicle retail installment sale contracts (the Receivables), all of which
are secured by new or used automobiles, light-duty trucks, vans, or minivans
financed thereby. The Receivables Pool consisted as of the Closing Date of
Receivables having an aggregate principal balance as of December 15, 1997 (the
Cut-off Date) of approximately $75,504,414.69. The 98-1 Trust may acquire
certain additional Receivables on or prior to April 30, 1998 with funds
deposited in a Pre-Funding Account in the amount of approximately
$16,490,982.64, which additional Receivables will also secure the Notes. As
of the Cut-off Date, the Receivables had the characteristics described in the
Prospectus dated January 15, 1998 filed with the Commission pursuant to Rule
424(b)(2) of the Securities Act of 1933, as amended. This Current Report
on Form 8-K is being filed to satisfy certain reporting requirements.
A. Monthly Report Information:
Aggregate distribution information for the current
distribution date April 21, 1998.
Principal Interest Ending Balance
See Exhibit 1.
B. No delinquency in payment under the Certificate Guaranty
Insurance Policy has occurred.
C. Have any deficiencies occurred? NO.
Date:
Amount:
D. Were any amounts paid or are any amounts payable under
the Certificate Guaranty Insurance Policy? NO
Amount:
E. Are there any developments with respect to the Certificate
Insurance Guaranty Policy? NONE.
F. Item 1: Legal Proceedings: NONE
G. Item 2: Changes in Securities: NONE
H Item 4: Submission of Matters to a Vote of
Certificatholders: NONE
I. Item 5: Other Information - Form 10-Q, Part II - Items
1,2,4,5 if applicable: NOT APPLICABLE
Item 7. Monthly Statements and Exhibits
Exhibit No.
1. Monthly Servicer Certificate dated April 21, 1998.
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-Apr-98
Pre-
Pre- Funding Cert-
Collection Funding Reserve Spread Rev. ificate Trans- Master
Account Account Account Account Acct Account feror Serv
1 0 16490983 154832 4681319 0 0 0 0
2 73929 694 20982 0
3
4 3107724
5 0
6 13139
7 0 0
8 -9843 9843
9 0 0
10 -13139 -20982 34121
11 -1864063 0 1864063
12 0
13
14 -1233818 1233818
15 0 0
16 0 0
17 0 0
18 0
19 0 0 0
20 0 0
21 0
22 -73929 -694 0 74623
23 0
24 -16487897 0 0 16487897
25 -3086 3086
26 0
27 0 0
28 0 0
29
30 -154832 154832
31 -16487897
32 -0 -0 0 4681319 0 3175590 198796 0
33 3175590
1 Beginning Account Balances
2 Interest Income
3 Collection Account
4 Lockbox Collections during the Collections Period
5 Add: Retransfer Amount received in respect of any Retransferred Contracts
6 Add: Any income and gain from investments of funds in the Collection
Account
7 Add: Amts received from the Transferor, the Master Serv. or any Subservicer
8 Less: Late Payment fees collected with respect to the Contracts on Deposit
9 Less: Supplemental Servicing Fee
10 Less: Any income and gain on investments of deposits in Collection Account
11 Less: Scheduled & Prepay Contract Principal
12 Less: Amounts deposited with respect to Retransferred Contracts
13 Certificate Account
14 Add: Withdrawals from Collection Account
15 Add: Amounts received from the Transferor
16 Add: Amounts received from the Master Servicer or Subservicer
17 Add: Withdrawals from Revolving Account
18 Add: Amounts deposited with respect to the spread requirements
19 Add: Withdrawals from the Pre-Funding Reserve Account
20 Add: Withdrawals from the Spread Account
21 Add: Proceeds of any Contracts or Property
22 Add: Any income and gain on investments of funds in the Certificate Account
23 Add: Amounts received from Certificate Insurer
24 Add: Withdrawals from the Revolving Account or Pre-Funding Account
25 Add: Amount Due to Class A Investors
26 Less: Expenses of Master Servicer or Transferor
27 Less: Pmts to the Master servicer of Insurance and Liquidation Proceeds
28 Less: Paymts to the Trans. w/respect to Retransferred Contracts or property
29 Pre-Funding Reserve Account
30 Less: Amount in excess of Required Deposit
31 Less: Amounts Distributed
32 Ending Account Balances
33 Available Amount to Certificate Holders
CLass A Certificate Factor
Current Class A Balance 80,342,345
Initial Class A Balance 85,200,000
Certificate Factor: 0.9429852688
Aggregate Contract Principal Balance 88,288,291
Class A Balance 80,342,345
Less: Prefunding Account 0
Receivable backed Certificates 80,342,345
A Investor Percentage 91.00%
Weighted Average Coupon 19.44%
Weighted Average Maturity 49.89
Beginning of Transaction 12/16/97
Payment Date 4/21/98
Month of Transaction 4
Period Ended 03/31/98
Collection Account
Beginning Balance 0.00
Collections during the Collections Period 3107724.18 x
Retransfer Amnt received in respect of any Retransferred Contracts 0.00
Any income and gain from investments of funds in the Collect. Acct 13139.02 x
Amts received from the Transferor, the Master Serv. or any Subserv 0.00
Late Pmt Fees collected w/ respect to the Contracts on Deposit 9842.98 x
Supplemental Servicing Fee 0.00
Amounts deposited with respect to Retransferred Accounts 0.00
Sched. Prin. (During Revolving Period - Months 1 through 2) 1209147.40 x
Prepayments (During Revolving Period - Months 1 through 2) 562055.10 x
Recoveries (During Revolving Period - Months 1 through 2) 92860.27 x
Certificate Account
Amounts received from the Transferor 0.00
Amounts received from the Master Servicer or Subservicer 0.00
Withdrawals from the Pre-Funding Reserve Account 0.00
Withdrawals from the Spread Account 0.00
Proceeds of any Contracts or Property 0.00
Any income and gain on investments of funds in the Cert. Acct 0.00
Amounts received from Certificate Insurer (Claims to FSA) 0.00
Expenses of an Opinion of Counsel 0.00
Expenses of Master Servicer or Transferor 0.00
Pmts to the Master servicer of Insurance and Liquid. Proceeds 0.00
Pmts to Trans. w/ respect to Retransferred Contracts or property 0.00
Pre-Funding Reserve Account
Beginning Balance 154832.00
Amount in excess of Required Deposit 0.00
Interest Income 694.10
Certificate Insurer
Is there a claim on the policy in the current month,
or has there ever been a claim? No
Revolving Account
Beginning Balance 0.00 x
Transfers 0.00
Over 3.0 Million Principal
Remaining balance due to Investors 0.00 x
Interest Income 0.00 x
Pre-Funding Account
Beginning Balance 16490982.64
Interest Income 73928.53
Remaining balance due to Investors 3086.01
Spread Account
Beginning Balance 4681318.68 x
Interest Income 20981.88 x
Number of loans currently owned by Trust 6109.00
Initial Collateral Balance 85200000.00 x
New Originations Transferred to Trust 18118567.73
Initial Certificate Account Balance 0.00
Previous Servicing Fee Arrearage 0.00
Previous Trustee, Collateral Agent, 0.00
Lockbox and Custodian fees - Arrearage
Previous Class A Interest Arrearage 0.00
Unreimbursed expenses to the Trustee 0.00
Unreimbursed expenses to the Master Serv 0.00
Unreimbursed expenses to the Standby Serv 0.00
Unreimbursed expenses to the Transferor 0.00
Opening Class A Principal Balance 85200000.00 x
Prior Class A Principal Arrearage 0.00
1 Month 2 Months 3 Months
Current Prior Prior Prior
30+ Days Past Due 3521473.88 2731440.99 2898921.13 2596912.72
60+ Days Past Due 677081.94 940391.14 600983.36 7446.71
90+ Days Past Due 342322.67 195109.49 12106.97 0.00
Delin.(30+ days past due) 4540878.49 3866941.62 3512011.46 2604359.43
Current Month Repos 633007.36 260049.92 123546.50 0.00
New over 90 Days 276285.30 195109.49 12106.97 0.00
Defaults 909292.66 455159.41 135653.47 0.00
Liquidated Contracts
Repos > 90 Days 2196.45 0.00 0.00 0.00
Closed Repo's 144708.71 24373.00 0.00 0.00
Past Due > 120 Days 0.00 0.00 0.00 0.00
Chapter 13 Bankruptcy 0.00 0.00 0.00 0.00
Net Liquidated Accounts 146905.16 24373.00 0.00 0.00
Recoveries-net of expenses 92860.27 25442.68 8794.66 0.00
Net Losses 54044.89 -1069.68 -8794.66 0.00
ACPB 88288291.12 72087831.05 73573052.65 74877778.19
Principal Paid
01/21/98 570239.22
02/21/98 1187300.24
03/21/98 1351551.66
3109091.12
Amount
World Omni to World Omni ( Servicer) Reconciliation
Opening Principal Balance
per World Omni (prior Month) - Trailer Summary Report 72003645.92
Add: New Accounts Transferred 18118567.73
Less: Scheduled Principal Received -1209147.40
Prepaid Accounts -562055.10
Repossessed Accounts -752213.65
-2523416.15
Less: Non cash Transactions 0.00
Subtotal 87598797.50
Closing Principal Balance per World Omni - Trailer Summary 87707636.98
Difference -108839.48
ACPB to World Omni Reconciliation
Closing Principal Balance
per World Omni 87707636.98
Less: World Omni to World Omni Difference -108839.48
Add: Non Liquidated Repo Inventory
deducted from World Omni balance but
not passed through to investors 964531.91
Adjusted World Omni Principal Balance 88563329.41
ACPB Prior to ACPB Current Reconciliation
Prior Month ACPB 72087831.05
Add: New Accounts Transferred 18118567.73
Less: Scheduled Principal Received -1209147.40
Prepaid Accounts -562055.10
Less: Liquidated Accounts -146905.16
Current Month ACPB 88288291.12
Adjusted World Omni Principal Balance 88563329.41
Current Month ACPB 88288291.12
Difference 275038.29
Repo/Liquid Accts Repo Prin. Liquid Prin. Repo Inven.
12/31/97 2196.45 2196.45 0.00
01/31/98 121350.05 61149.68 60200.37
02/28/98 260049.92 100181.86 159868.06
03/31/98 752213.65 7750.17 744463.48
04/30/98 0.00
1135810.07 171278.16 964531.91
Class A Interest Schedule
Opening Class A Principal Balance 82090908.88
Class A Interest Rate 5.88%
30/360*Class A Interest Rate 0.49%
Current Class A Interest Distribution 402245.45
Prior Class A Interest Arrearage 0.00
Class A Interest Due 402245.45
Current Class A Interest Arrearage 0.00
Class A Principal Schedule
Opening Class A Principal Balance 82090908.88
Scheduled Principal 1209147.40
Prepayments 562055.10
Liquidated Contracts 146905.16
(Less) Amounts reinvested 0.00
1918107.66
Retransfers 0.00
1918107.66
Class A Share - 91% 1745477.97
Remaining Prefunding Account Balance 3086.01
Principal due to Class A 1748563.98
Prepayment from Revolving Account 0.00
Prepayment From Pre-Funding Account 0.00
Prior Class A Arrearage 0.00
Class A Principal Due 1748563.98
Class A Principal Distribution 1748563.98
Current Class A Arrearage 0.00
Ending Class A Principal Balance after current Distribution 80342344.90
Servicing Fee Schedule
Beginning Collateral Balance 72087831.05
Annual Servicing Rate 2.00%
Prior Servicing Fee Arrearage 0.00
Current Servicer Fee 120146.39
Servicer Fee Due 120146.39
Servicer Fee Paid 120146.39
Current Servicing Fee Arrearage 0.00
National Auto Finance 1998-1 Trust
National Auto Finance Company, Inc.
Monthly Servicer Certificate
SEC Reporting and Trustee Fee Schedule
Sec Reporting Fee 0.00
Closing Expenses 1296.68
Prior Trustee Fee Arrearage 0.00
Current SEC and Trustee Fee 0.00
Trustee Fee Due 0.00
Current Trustee Fee Arrearage 0.00
Certificate Insurer Schedule
Ending Class A Balance 80342344.90
Insurance Premium 0.350%
Insurance Premium Supplement 0.00%
Certificate Insurer Fee 23433.18
Pre-Funding Account
Opening Balance 16490982.64
Monthly Originations X 91% 0.00
Withdrawal From Pre-Funding Account -16487896.63
Prepmnt associated w/ end of Pre-Funding Period 16487896.63
Due to Class A Investors -3086.01
Closing Balance -0.00
Revolving Account Schedule
Opening Balance 0.00
Amount Transferred from Collection Account 0.00
First Interim Balance 0.00
Withdrawal From Revolving Account 0.00
Second Interim Balance 0.00
Amount Transferred to Certificate Account
Prepmnt Associated w/ Release from Revolv. Acct 0.00
Ending Balance 0.00
Spread Account
Initial Collateral Balance 85200000.00
Opening Spread Account Balance 4681318.68
Less Interest Earned -20981.88
Opening Spread Account Balance 4681318.68
Required Balance Spread Account 4681318.68
Required Deposit to Spread Account 0.00
Ending Spread Account Balance 5561222.84
Required Cross Collateralization 95-1,96-1,97-1 2718196.61
Available Contribution 98-1 March 879904.16
Remaining Deposit Required 1838292.45
Cap 4681318.68
Floor 80342344.90
The Floor Amount at any time will be equal to
the greater of (i) the outstanding Class A
Certificate Balance, and (ii) $100,000
1 Month 2 Months
(A) Portfolio Performance Tests: Current: Previous Previous
(yes/no) (yes/no) (yes/no)
Trigger Event (Yes/No) no no no
Monthly
Delinquencies Delinquency
Delinquent ACPB Ratio
2 Months Prior: 3512011 73573053 4.774%
1 Month Prior: 3866942 72087831 5.364%
Current: 4540878 88288291 5.143%
5.094%
Maximum Delinquency Ratio 8.25%
Monthly Annual
Gross Defaulted Contracts Default Default
Defaults ACPB Rate Rate
2 Months Prior: 135653 74225415 0.183% 2.193%
1 Month Prior: 455159 72830442 0.625% 7.499%
Current: 909293 80188061 1.134% 13.607%
0.647% 7.767%
Maximum Annualized Default Ratio
(i) Month 1 through 24 18.00%
(iii)Month 25 through the remainder of the transaction 14.00%
Monthly Annual
Losses Loss Loss
Losses ACPB Rate Rate
2 Months Prior: -8795 74225415 -0.012% -0.142%
1 Month Prior: -1070 72830442 -0.001% -0.018%
Current: 54045 80188061 0.067% 0.809%
0.018% 0.216%
Maximum Annualized Net Loss Rate
(i) Month 1 through 24 8.00%
(iii)Month 25 through the remainder of the transaction 6.00%
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-Apr-98
1 Month 2 Months
(B) Insurance Agreement Event of Defaults Previous Previous
Current: (yes/no) (yes/no)
Event of Default (Yes/No) no no no
(1) Bankruptcy or insolvency of the Company, or the Seller;
(2) A default or a breach of a representation, warranty, or
covenant by the Company or the Seller under any of the
transaction documents which has not been cured
within the applicable grace period;
(3) Any claim for payment under the Certificate Policy;
(4) Delinquency Ratio is 11% or higher averaged
over the 3 previous Monthly Periods:
Monthly
Delinquencies Delinquency
Delinquent ACPB Ratio
2 Months Prior: 3512011 73573053 4.774%
1 Month Prior: 3866942 72087831 5.364%
Current: 4540878 88288291 5.143%
5.094%
Maximum Delinquency Ratio 11.00%
(5) The Default Rate average over the 3 previous Monthly
Periods exceeds 25% for month 1 through 24,
and 17% for the remainder of the transaction;
Monthly Annual
Defaults Default Default
Defaults ACPB Rate Rate
2 Months Prior: 135653 74225415 0.183% 2.193%
1 Month Prior: 455159 72830442 0.625% 7.499%
Current: 909293 80188061 1.134% 13.607%
0.647% 7.767%
Maximum Annualized Default Ratio
0 (i) Month 1 through 24 25.00%
0 (iii)Month 25 through the remainder of the transaction 17.00%
(B) Insurance Agreement Event of defaults (Cont.)
(6) The Net Loss Rate averaged over the 3 previous Monthly
Periods exceeds 11% for month 1 through 24,
and 8% for the remainder of the transaction;
Monthly Annual
Losses Loss Loss
Losses ACPB Rate Rate
2 Months Prior: -8795 74225415 -0.012% -0.142%
1 Month Prior: -1070 72830442 -0.001% -0.018%
Current: 54045 80188061 0.067% 0.809%
0.018% 0.216%
Maximum Annualized Net Loss Rate
(i) Month 1 through 24 11.00%
(iii) Month 25 through the remainder of the transaction 8.00%
(7) The Servicer Termination Events listed below:
(i) Failure to deposit funds as required under the no
Pooling and Servicing Agreement
(ii) Failure to deliver the Servicer's Certificate no
(iii)Breach of Servicer covenants no
(iv) Bankruptcy or insolvency of the Servicer no
(v) Material breach of representations and warranties no
(vi) Certificate Insurer has not delivered a no
Servicer Extension Notice
(vii)Insurance Agreement Event of Default on no
this or other transactions
(viii)Claim under the policy no
Certificate
Account Payment
Available Amount 3175590
Payments on Payment Date
(i) Servicing Fee -120146 120146
NAFI Operating Depository Account
First Union National Bank, Charlotte, NC
Acct #2010000259454 - ABA 053000219
(ii) Trustee, Collateral Agent -1297 1297
and Custodian fees
Harris Bank-Closing Travel Expenses
Invoice# 40-109088
(iiia) Class A Interest -402245 402245
(iiib) Class A Principal -1748564 1748564
(iv) Certificate Insurer -23433 23433
Financial Security Assurance
Morgan Guaranty Trust
Acct #000-33-345 ABA 021-000-238
(v) Collateral Agent (Spread Account) -879904 879904
Harris Trust and Savings Bank
(vi) [Reserved]
(vii) Unreimbursed expenses to the Trustee 0 0
(viii) Unreimbursed expenses to the Master Servicer 0 0
(ix) Unreimbursed expenses to the Standby Servicer 0 0
(x) Unreimbursed expenses to the Transferor 0 0
(xi) Class B Certificate Holders 0 0
National Auto Finance Company, Inc.
First Union National Bank
Acct #2010000259454 - ABA 053000219
Pursuant to section 3.17 of the Pooling and Servicing Agreement dated
as of January 15, 1998 among National Financial
Auto Funding Trust, National Auto Finance Company, Inc. and Harris
Trust and Savings Bank, the undersigned, as the Master Servicer, is
providing the attached Monthly Statement for the Collection Period
31-Mar-98
NATIONAL AUTO FINANCE COMPANY, INC.
as Master Servicer
30-Apr-98
Melissa Grimm
Vice President, Controller
SIGNATURES
Pursuant to the requirements 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.
FINANCIAL ASSET SECURITIES CORPORATION
/s/ Kevin Adams
VP/CFO
Dated: March 31, 1997
