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): November 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 November 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 November 21, 1998.
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-Nov-98
Pre-
Pre- Funding Revol-
Collect Funding Reserve Spread ving Cert Trans- Master
Acct Acct Acct Acct Acct Acct feror Servicer
1 0 0 0 5971234 0 0 0 0
2 0 0 24238 0 0 0 0
3
4 3530163 0 0 0 0 0 0 0
5 0 0 0 0 0 0 0 0
6 17308 0 0 0 0 0 0 0
7 0 0 0 0 0 0 0 0
8 -2102 0 0 0 0 0 2102 0
9 0 0 0 0 0 0 0 0
10 -17308 0 0 -24238 0 0 41545 0
11 -2464476 0 0 0 0 2464476 0 0
12 0 0 0 0 0 0 0 0
13
14 -1063585 0 0 0 0 1063585 0 0
15 0 0 0 0 0 0 0 0
16 0 0 0 0 0 0 0 0
17 0 0 0 0 0 0 0 0
18 0 0 0 487687 0 0 0 0
19 0 0 0 0 0 0 0 0
20 0 0 0 0 0 0 0 0
21 0 0 0 0 0 0 0 0
22 0 0 0 0 0 0 0 0
23 0 0 0 0 0 0 0 0
24 0 0 0 0 0 0 0 0
25 0 0 0 0 0 0 0 0
26 0 0 0 -9209 0 0 0 0
27 0 0 0 0 0 0 0 0
28 0 0 0 0 0 0 0 0
29 0 0 0 0 0 0 0 0
30 0 0 0 0 0 0 0 0
31 0 0 0 0 0 0 0 0
32 -0 0 0 6449712 0 3528062 43647 0
33 0 0 0 0 0 3528062 0 0
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: Amounts received from the Transferor, Master Servicer or 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: Payback from 96-1 Trust
16 Add: Payback from 97-1 Trust
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 Cert Acct
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: Amendment Expense FSA
27 Less: Payments to the Master servicer of Insurance and Liquidation Proceeds
28 Less: Payments to the Transferor with 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
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-Nov-98
Cert
Account Payment
Available Amount 3,528,062 0
Payments on Payment Date
(i) Servicing Fee (125,435) 125,435
NAFI Operating Depository Account
First Union National Bank, Charlotte, NC
Acct #2010000259454 - ABA 053000219
(ii) Trustee, Collateral Agent (2,302) 2,302
and Custodial fees
Harris Trust and Savings Bank
(Invoice #40-109088,40-111859)
(iiia)Class A Interest (335,588) 335,588
(iiib)Class A Principal (2,557,821) 2,557,821
(iv) Certificate Insurer (19,229) 19,229
Financial Security Assurance
Morgan Guaranty Trust
Acct #000-33-345 ABA 021-000-238
(v) Collateral Agent (Spread Account) (487,687) 487,687
Harris Trust and Savings Bank
(va) Cross Collateralization To 96-1 0.00 0.00
(vi) [Reserved] 0 0
(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
National Auto Finance Company, Inc.
First Union National Bank
Acct #2010000259454 - ABA 053000219
Pursuant to section 3.17 of the Pooling and Service 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-Oct-98
NATIONAL AUTO FINANCE COMPANY, INC.
as Master Servicer
Thomas Costanza 03-Dec-98
Vice President, CFO
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-Nov-98
2 Months 1 Month
(A) Portfolio Performance Tests: Current: Previous Previous
(yes/no) (yes/no) (yes/no)
Trigger Event (Yes/No) yes yes yes
Monthly
Delinquencies Delinquency
Delinquencies ACPB Ratio
2 Months Prior: 7,327,948 77,828,478 9.416%
1 Month Prior: 7,143,784 75,260,784 9.492%
Current: 5,461,979 72,449,992 7.539%
8.816%
Maximum Delinquency Ratio 8.25%
Monthly Annual
Gross Defaulted Contracts Default Default
Defaults ACPB Rate Rate
2 Months Prior: 1,191,408 78,824,058 1.511% 18.138%
1 Month Prior: 1,234,041 76,544,631 1.612% 19.346%
Current: 1,008,362 73,855,388 1.365% 16.384%
1.496% 17.956%
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: 367,680 78,824,058 0.466% 5.597%
1 Month Prior: 332,875 76,544,631 0.435% 5.219%
Current: 346,316 73,855,388 0.469% 5.627%
0.457% 5.481%
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-Nov-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
Delinquencies ACPB Ratio
2 Months Prior: 7,327,948 77,828,478 9.416%
1 Month Prior: 7,143,784 75,260,784 9.492%
Current: 5,461,979 72,449,992 7.539%
8.816%
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: 1,191,408 78,824,058 1.511% 18.138%
1 Month Prior: 1,234,041 76,544,631 1.612% 19.346%
Current: 1,008,362 73,855,388 1.365% 16.384%
1.496% 17.956%
Maximum Annualized Default Ratio 25.00%
(i) Month 1 through 24 17.00%
(iii) Month 25 through the remainder of the transaction
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-Nov-98
(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: 367,680 78,824,058 0.466% 5.597%
1 Month Prior: 332,875 76,544,631 0.435% 5.219%
Current: 346,316 73,855,388 0.469% 5.627%
0.457% 5.481%
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
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-Nov-98
Class A Interest Schedule
Opening Class A Principal Balance 68,487,313.28
Class A Interest Rate 5.88%
30/360*Class A Interest Rate 0.49%
Current Class A Interest Distribution 335,587.84
Prior Class A Interest Arrearage 0.00
Class A Interest Due 335,587.84
Current Class A Interest Arrearage 0.00
Class A Principal Schedule
Opening Class A Principal Balance 68,487,313.28
Scheduled Principal 1,251,067.11
Prepayments 685,497.71
Liquidated Contracts 874,227.19
Less: Principal write-up adjustment
2,810,792.01
Retransfers 0.00
2,810,792.01
Class A Share - 91% 2,557,820.73
Remaining Prefunding Account Balance 0.00
Principal due to Class A 2,557,820.73
Prepayment from Revolving Account 0.00
Prepayment From Pre-Funding Account 0.00
Prior Class A Arrearage 0.00
Class A Principal Due 2,557,820.73
Class A Principal Distribution 2,557,820.73
Current Class A Arrearage 0.00
Ending Class A Principal Balance after current Distribution 65,929,492.55
Servicing Fee Schedule
Beginning Collateral Balance 75,260,783.84
Annual Servicing Rate 2.00%
Prior Servicing Fee Arrearage 0
Current Servicer Fee 125,434.64
Servicer Fee Due 125,434.64
Servicer Fee Paid 125,434.64
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
Legal Fees 2,302.37
Prior Trustee Fee Arrearage 0.00
Current SEC and Trustee Fee 0.00
Trustee Fee Due 2,302.37
Current Trustee Fee Arrearage 2,302.37
Certificate Insurer Schedule
Ending Class A Balance 65,929,492.55
Insurance Premium 0.350%
Insurance Premium Supplement 0.00%
Certificate Insurer Fee 19,229.44
Pre-Funding Account
Opening Balance 0.00
Monthly Originations X 91% 0.00
Withdrawal From Pre-Funding Account 0.00
Prepayment associated with end of Pre-Funding Period 0.00
Due to Class A Investors 0.00
Closing Balance 0.00
Revolving Account Schedule
Opening Balance 0.00
Amt 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 Associated w/ Release from Revolving Acct 0.00
Ending Balance 0.00
Spread Account
Initial Collateral Balance 85,200,000.00
Opening Spread Account Balance 5,971,234.26
Less Interest Earned (24,237.76)
Opening Spread Account Balance 5,971,234.26
Required Balance Spread Account 6,520,499.26
Required Deposit to Spread Account (9,208.73)
Ending Spread Account Balance 549,265.00
Remaining Deposit Required 6,449,712.06
Cap 6,520,499.26
Floor 65,929,492.55
The Floor Amount at any time will be equal to
the greater of (i) the outstanding Class A
Certificate Balance, and (ii) $100,000
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-Nov-98
Class A Certificate Factor
Current Class A Balance 65,929,493
Initial Class A Balance 85,200,000
Certificate Factor: 0.7738203351
Aggregate Contract Principal Balance 72,449,992
Class A Balance 65,929,493
Less: Prefunding Account 0
Receivable backed Certificates 65,929,493
A Investor Percentage 91.00%
Weighted Average Coupon 19.10%
Weighted Average Maturity 43.90
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-Nov-98
Beginning of Transaction 12/16/97
Payment Date 11/21/98
Month of Transaction 11
Period Ended 10/31/98
Collection Account
Beginning Balance 0.00
Collections during the Collections Period 3,530,163
Retransfer Amt received in respect of any Retransferred Contracts 0.00
Any income & gain from investments of funds in the Collection Acct 17,307.67
Amts received from the Transferor, Master Servicer or Subservicer 0.00
Late Payment Fees collected w/ respect to the Contracts on Deposit 2,101.92
Supplemental Servicing Fee 0.00
Amounts deposited with respect to Retransferred Accounts 0.00
Scheduled Principal 1,251,067
Prepayments 685,497.71
Recoveries 527,911.49
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 Certificate 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
Payments to Master servicer of Insurance and Liquidation Proceeds 0.00
Pmts to Transferor w/ respect to Retransferred Contracts or property 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 on the policy in current month,
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
Remaining balance due to Investors 0.00
Spread Account
Beginning Balance 5,971,234
Interest Income 24,237.76
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-Nov-98
Number of loans currently owned by Trust 6,467
Initial Collateral Balance 85,200,000
New Originations Transferred to Trust 0.00
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 Servicer 0.00
Unreimbursed expenses to the Standby Servicer 0.00
Unreimbursed expenses to the Transferor 0.00
Opening Class A Principal Balance 85,200,000
Prior Class A Principal Arrearage 0.00
Current 1 Month 2 Months 3 Months
Prior Prior Prior
30+ Days Past Due 3,665,562 4,558,373 4,882,612 5,875,719
60+ Days Past Due 1,124,681 1,596,490 1,843,153 1,737,253
90+ Days Past Due 671,736 988,920 602,182 823,675
Delinquent (30+ days past due) 5,461,979 7,143,784 7,327,948 8,436,646
Current Month Repos 508,477 605,414 596,800 259,555
New over 90 Days 499,885 628,626 594,608 546,501
Defaults 1,008,362 1,234,041 1,191,408 806,056
Liquidated Contracts
Repos > 90 Days 18,089 290,047 399,611 203,006
Closed Repo's 619,187 613,944 203,555 479,268
Past Due > 120 Days 201,459 0 0 84,571
Chapter 13 Bankruptcy 35,493 0 0 102,365
Net Liquidated Accounts 874,227 903,991 603,166 869,210
Recoveries - net of expenses 527,911 571,116 235,486 310,819
Net Losses 346,316 332,875 367,680 558,390
ACPB 72,449,992 75,260,784 77,828,478 79,819,637
6520499.26
Principal Paid
01/21/98 570,239
02/21/98 1,187,300
03/21/98 1,351,552
04/21/98 1,748,564
05/21/98 1,884,175
06/21/98 1,969,574
07/21/98 1,484,618
08/21/98 2,368,108
09/21/98 1,811,954
10/21/98 2,336,602
16,712,687
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: October 31, 1998
