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): January 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 January 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 January 21, 1998.
Pre-Funding
Collection Pre-Funding Reserve Spread RevolvingCertificateTrans Master
Account Account Account Account Account Account ferorServicer
1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2 0.00 0.00 0.00 0.00
3 16490982.64 154832.00 3745054.95
4 1158280.49
5 0.00
6 0.00
7 0.00 0.00
8 0.00 0.00
9 0.00 0.00
10 0.00 0.00 0.00
11-626636.50 0.00 626636.50
12 0.00
13-531643.99 531643.99
14 0.00 0.00
15
0.00
16 0.00 0.00
17 0.00 0.00 0.00
18 0.00 0.00
19 0.00
20 486521.25
21 0.00 0.00 0.00 0.00
22 0.00
23 0.00 0.00 0.00 0.00
24 0.00
25 0.00
26 0.00 0.00
27 0.00 0.00
28 0.00 0.00
29 0.00
30 0.00 16490982.64 154832.00 4231576.20 0.00 1158280.49 0.00 0.00
31 1158280.49
1 = Beginning Account Balances
2 = Interest Income
3 = Add: 1/20/98 cash proceeds from the closing of the 1998-1 Trust
Collection Account
4 = Lockbox Collections during the Collections Period
5 = Add: Retransfer Amount
6 = Add: Any income and gain from investments of funds in Collection Acct
7 = Add: Amounts received from Transferor, Master Servicer or Subservicer
8 = Less: Late Payment fees collected
9 = Less: Supplemental Servicing Fee
10 = Less: Any income and gain on investments of deposits in Collection Acct
11 = Less: Scheduled & Prepay Contract Principal
12 = Less: Amounts deposited from Retransferred Contracts
Certificate Account
13 = Add: Withdrawals from Collection Account
14 = Add: Amounts received from the Transferor
15 = Add: Amounts received from the Master Servicer or Subservicer
16 = Add: Withdrawals from Revolving Account
17 = Add: Withdrawals from the Pre-Funding Reserve Account
18 = Add: Withdrawals from the Spread Account
19 = Add: Proceeds of any Contracts or Property
20 = Add: Amounts deposited with respect to the spread requirements
21 = Add: Any income and gain on investments of funds in the Certificate Acct
22 = Add: Amounts received from Certificate Insurer
23 = Add: Withdrawals from the Revolving Acct or Pre-Funding Acct
24 = Less: Expenses of an Opinion of Counsel
25 = Less: Expenses of Master Servicer or Transferor
26 = Less: Payments to Master servicer of Insurance and Liquidation Proceeds
27 = Less: Payments to Transferor from Retransferred Contracts or property
Pre-Funding Reserve Account
28 = Less: Amount in excess of Required Deposit
29 = Less: Amounts Distributed
30 = Ending Account Balances
31 = Available Amount to Certificate Holders
Class A Certificate Factor
Current Class A Balance 84,629,761
Initial Class A Balance 85,200,000
Certificate Factor:0.9933070515
Aggregate Contract Principal Balance 74,877,778
Class A Balance 84,629,761
Less: Prefunding Account (16,490,983)
Receivable backed Certificates 68,138,778
A Investor Percentage 91.00%
Beginning of Transaction 12/16/97
Payment Date 01/21/98
Month of Transaction 1
Period Ended 12/31/97
Collection Account
Beginning Balance 0.00
Collections during the Collections Period 1158280.49
Retransfer Amount received 0.00
Any income and gain from investments in the Collection Account 0.00
Amounts received 0.00
Late Payment Fees collected 0.00
Supplemental Servicing Fee 0.00
Amounts deposited with respect to Retransferred Accounts 0.00
Scheduled Principal (During Revolving Period - Months 1 through 2) 410254.58
Prepayments (During Revolving Period - Months 1 through 2) 216381.92
Recoveries (During Revolving Period - Months 1 through 2) 0.00
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 in the Certificate Account 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
Payments to Master servicer of Insurance and Liquidation Proceeds 0.00
Payments to the Transferor 0.00
Pre-Funding Reserve Account
Beginning Balance 0.00
Amount in excess of Required Deposit 0.00
Interest Income 0.00
Certificate Insurer
Is there a claim, or has there ever been a claim? No
Revolving Account
Beginning Balance 0.00
Transfers 0.00
Over 3.0 Million Principal
Remaining balance due to Investors 0.00
Interest Income 0.00
Pre-Funding Account
Beginning Balance 0.00
Interest Income 0.00
Spread Account
Beginning Balance 0.00
Interest Income 0.00
Number of loans currently owned by Trust 6,350
Initial Collateral Balance 85200000.00 x
New Originations Transferred to Trust 75504414.69
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 Trustee 0.00
Unreimbursed expenses - Master Servicer 0.00
Unreimbursed expenses to Standby Servicer 0.00
Unreimbursed expenses to Transferor 0.00
Opening Class A Principal Balance 85200000.00 x
Prior Class A Principal Arrearage 0.00
Current 1 Mo. Prior 2 Mos. Prior3 Mos. Prior
30+ Days Past Due 2596912.72 0.00 0.00 0.00
60+ Days Past Due 7446.71 0.00 0.00 0.00
90+ Days Past Due 0.00 0.00 0.00 0.00
Delinquent 2604359.43 0.00 0.00 0.00
Current Month Repos 0.00 0.00 0.00 0.00
New over 90 Days 0.00 0.00 0.00 0.00
Defaults 0.00 0.00 0.00 0.00
Liquidated Contracts
Repos > 90 Days 0.00 0.00 0.00 0.00
Closed Repo's 0.00 0.00 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 0.00 0.00 0.00 0.00
Recoveries-net expenses 0.00 0.00 0.00 0.00
Net Losses 0.00 0.00 0.00 0.00
ACPB 74877778.19 75504414.69 0.00 0.00
Class A Interest Schedule
Opening Class A Principal Balance 85,200,000.00
Class A Interest Rate 5.88%
Class A Interest Rate for 1 Day 0.02%
Current Class A Interest Distribution 13,916.00
Prior Class A Interest Arrearage 0.00
Class A Interest Due 13,916.00
Current Class A Interest Arrearage 0.00
Class A Principal Schedule
Opening Class A Principal Balance 85,200,000.00
Scheduled Principal 410,254.58
Prepayments 216,381.92
Liquidated Contracts 0.00
(Less) Amounts reinvested 0.00
626,636.50
Retransfers 0.00
626,636.50
Class A Share - 91% 570,239.22
Remaining Revolving Account Balance 0.00
Principal due to Class A 570,239.22
Prepayment from Revolving Account 0.00
Prepayment From Pre-Funding Account 0.00
Prior Class A Arrearage 0.00
Class A Principal Due 570,239.22
Class A Principal Distribution 570,239.22
Current Class A Arrearage 0.00
Ending Class A Principal Balance after current Distribution 84,629,760.79
Servicing Fee Schedule
Beginning Collateral Balance 75,504,414.69
Annual Servicing Rate 2.00%
Prior Servicing Fee Arrearage 0
Current Servicer Fee 62,920.35
Servicer Fee Due 62,920.35
Servicer Fee Paid 62,920.35
Current Servicing Fee Arrearage 0.00
Trustee Fee Schedule
Annual Trustee Fee 0.00
Prior Trustee Fee Arrearage 0.00
Current Trustee Fee 0.00
Trustee Fee Due 0.00
Current Trustee Fee Arrearage 0.00
Certificate Insurer Schedule
Ending Class A Balance 84,629,760.79
Insurance Premium 0.350%
Insurance Premium Supplement 0.000%
Certificate Insurer Fee 24,683.68
Pre-Funding Account
Opening Balance 0.00
Deposit at closing 16,490,982.64
Withdrawal From Pre-Funding Account 0.00
Prepayment from end of Pre-Funding Period 0.00
Closing Balance 16,490,982.64
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
Prepayment from release from Revolving Acct 0.00
Ending Balance 0.00
Spread Account
Initial Collateral Balance 85,200,000.00
Spread Account Balance 3,745,054.95
Interest Earned 0.00
Opening Spread Account Balance 3,745,054.95
Required Balance Spread Account 4,681,318.68
Required Deposit to Spread Account 486,521.25
Ending Spread Account Balance 4,231,576.20
Cap 4,681,318.68
Floor 84,629,760.79
The Floor Amount at any time will be equal to
the greater of (i) the outstanding Class A
Certificate Balance, and (ii) $100,000
(A) Portfolio Performance Tests: Current: 1 Mo. Previous 2 Mos. Prev
(yes/no) (yes/no) (yes/no)
Trigger Event (Yes/No) no no no
Monthly
Delinquencies Delinquency
Delinquencies ACPB Ratio
2 Months Prior: 0.00 0.00 0.000%
1 Month Prior: 0.00 75,504,414.69 0.000%
Current: 2,604,359.43 74,877,778.19 3.478%
3.478%
Maximum Delinquency Ratio 8.25%
Monthly Annual
Gross Defaulted Contracts Default Default
Defaults ACPB Rate Rate
2 Months Prior: 0 0 0.000%
1 Month Prior: 0 75,504,415 0.000% 0.000%
Current: 0 75,191,096 0.000% 0.000%
0.000% 0.000%
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: 0 0 0.000%
1 Month Prior: 0 75,504,415 0.000% 0.000%
Current: 0 75,191,096 0.000% 0.000%
0.000% 0.000%
Maximum Annualized Net Loss Rate
(i) Month 1 through 24 8.00%
(iii) Month 25 through the remainder of the transaction 6.00%
(B) Insurance Agreement Event of Defaults 1 Mo. Previous 2 Mos. Prev
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
Delinquencies ACPB Ratio
2 Months Prior: 0 0
1 Month Prior: 0 75,504,415 0.000%
Current: 2,604,359 74,877,778 3.478%
3.478%
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 othe transaction;
Monthly Annual
Defaults Default Default
Defaults ACPB Rate Rate
2 Months Prior: 0 0 0.000%
1 Month Prior: 0 75,504,415 0.000% 0.000%
Current: 0 75,191,096 0.000% 0.000%
0.000% 0.000%
Maximum Annualized Default Ratio
(i) Month 1 through 24 25.00%
(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 ofthe transaction;
Monthly Annual
Losses Loss Loss
Losses ACPB Rate Rate
2 Months Prior: 0 0 0.000%
1 Month Prior: 0 75,504,415 0.000% 0.000%
Current: 0 75,191,096 0.000% 0.000%
0.000% 0.000%
Maximum Annualized Net Loss Rate
(i) Month 1 through 12 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 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 1,158,280.49
Payments on Payment Date
(i) Servicing Fee (62,920.35) 62,920.35
(ii) Trustee, Collateral Agent 0.00 0.00
and Custodian fees
(iiia)Class A Interest (13,916.00) 13,916.00
(iiib)Class A Principal (570,239.22) 570,239.22
(iv) Certificate Insurer (24,683.68) 24,683.68
(v) Collateral Agent (Spread Account) (486,521.25) 486,521.25
(vi) [Reserved]
(vii) Unreimbursed expenses to the Trustee 0.00 (0.00)
(viii)Unreimbursed expenses to the Master Servicer 0.00 0.00
(ix) Unreimbursed expenses to the Standby Servicer 0.00 0.00
(x) Unreimbursed expenses to the Transferor 0.00 0.00
(xi) Class B Certificate Holders 0.00 0.00
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: December 31, 1997
