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): May 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 May 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 May 21, 1998.
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-May-98
Pre-Fund
Collect Pre-Fund Reserve Spread Revolv Cert Trans- Master
Acct Acct Acct Acct Acct Acct feror Serv
1 0 0 0 4681319 0 0 0 0
2 2602 446 20927 0
3
4 3236570
5 0
6 13820
7 0 0
8 -11867 11867
9 0 0
10 -13820 -20927 34748
11 -1875498 0 1875498
12 0
13
14 -1349205 1349205
15 0 0
16 0 0
17 0 0
18 0
19 0 0 0
20 0 0
21 0
22 -2602 -446 0 3048
23 0
24 0 0 0 0
25 0 0
26 0
27 0 0
28 0 0
29
30 0
31 0
32 0 0 0 4681319 0 3227751 46615 0
33 3227751
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 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: 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: 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
1
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-May-98
Class A Certificate Factor
Current Class A Balance 78,458,170
Initial Class A Balance 85,200,000
Certificate Factor: 0.9208705375
Aggregate Contract Principal Balance 86,217,769
Class A Balance 78,458,170
Less: Prefunding Account
Receivable backed Certificates 78,458,170
A Investor Percentage 91.00%
Weighted Average Coupon 19.13%
Weighted Average Maturity 49.04
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-May-98
Beginning of Transaction 12/16/97
Payment Date 05/21/98
Month of Transaction 5
Period Ended 04/30/98
Collection Account
Beginning Balance 0
Collections during the Collections Period 3236570 x
Retransfer Amount received in respect of any Retransferred Contracts 0
Any income and gain from investments of funds in the Collect Acct 13820 x
Amts received from the Transferor, Master Servicer or Subservicer 0
Late Payment Fees collected with respect to the Contracts on Deposit 11867
Supplemental Servicing Fee 0
Amounts deposited with respect to Retransferred Accounts 0
Scheduled Principal (During Revolving Period - Months 1 through 5) 1199049
Prepayments (During Revolving Period - Months 1 through 5) 454634
Recoveries (During Revolving Period - Months 1 through 5) 221815
Certificate Account
Amounts received from the Transferor 0
Amounts received from the Master Servicer or Subservicer 0
Withdrawals from the Pre-Funding Reserve Account 0
Withdrawals from the Spread Account 0
Proceeds of any Contracts or Property 0
Any income and gain on investments of funds in the Cert Acct 0
Amounts received from Certificate Insurer (Claims to FSA) 0
Expenses of an Opinion of Counsel 0
Expenses of Master Servicer or Transferor 0
Payments to the Master servicer of Insurance and Liquidation Proceeds 0
Payments to the Transferor with respect to Retransferred Contracts or 0
property/c
Pre-Funding Reserve Account
Beginning Balance 0 x
Amount in excess of Required Deposit 0
Interest Income 446 x
Certificate Insurer
Is there a claim on the policy in the current month, No
or has there ever been a claim?/c
Revolving Account
Beginning Balance 0 x
Transfers 0
Over 3.0 Million Principal
Remaining balance due to Investors 0 x
Interest Income 0 x
Pre-Funding Account
Beginning Balance 0 x
Interest Income 2602 x
Remaining balance due to Investors 0
Spread Account
Beginning Balance 4681319 x
Interest Income 20927 x
9
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-May-98
Number of loans currently owned by Trust 7437 x
Initial Collateral Balance 85200000 x
New Originations Transferred to Trust 0
Initial Certificate Account Balance 0
Previous Servicing Fee Arrearage 0
Previous Trustee, Collateral Agent, 0
Lockbox and Custodian fees - Arrearage
Previous Class A Interest Arrearage 0
Unreimbursed expenses to the Trustee 0
Unreimbursed expenses to the Master Servicer 0
Unreimbursed expenses to the Standby Servicer 0
Unreimbursed expenses to the Transferor 0
Opening Class A Principal Balance 85200000 x
Prior Class A Principal Arrearage 0
1 Month 2 Months 3 Months
Current Prior Prior Prior
30+ Days Past Due 3936766 3521474 2731441 2898921
60+ Days Past Due 1157762 677082 940391 600983
90+ Days Past Due 362574 342323 195109 12107
Delinquent (30+ days past due) 5457101 4540878 3866942 3512011
Current Month Repos 474957 633007 260050 123547
New over 90 Days 220662 276285 195109 12107
Defaults 695619 909293 455159 135653
Liquidated Contracts
Repos > 90 Days 12537 2196 0 0
Closed Repo's 404302 144709 24373 0
Past Due > 120 Days 0 0 0 0
Chapter 13 Bankruptcy 0 0 0 0
Net Liquidated Accounts 416839 146905 24373 0
Recoveries - net of expenses 221815 92860 25443 8795
Net Losses 195024 54045 -1070 -8795
ACPB 86217769 88288291 72087831 73573053
Principal Paid
01/21/98 570239
02/21/98 1187300
03/21/98 1351552
04/21/98 1748564
4857655
10
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-May-98
Amount
World Omni to World Omni ( Servicer) Reconciliation
Opening Principal Balance per World Omni
3/31/98 - Trailer Summary Report 69589069
Add: New Accounts Transferred 18000619
Less: Scheduled Principal Received -1199049
Prepaid Accounts -454634
Repossessed Accounts -620229
Total principal reductions -2273912
Subtotal 85315777
Closing Principal Balance per WO - Trailer Summary 4/30/98 85315777
Difference 0
ACPB to World Omni Reconciliation
Closing Principal Balance
per World Omni 4/30/98 85315777
Add: Non Liquidated Repo Inventory
deducted from World Omni balance but
not passed through to investors 1167922
Adjusted World Omni Principal Balance 86483698
ACPB Prior to ACPB Current Reconciliation
Prior Month ACPB 88288291
Add: New Accounts Transferred 0
Less: Scheduled Principal Received -1199049
Prepaid Accounts -454634
Less: Liquidated Accounts -416839
Current Month ACPB 86217769
Adjusted World Omni Principal Balance 86483698
Current Month ACPB 86217769
Difference 265929
Repo
Repo/Liquidated Accounts Repo Principal LiquidatedInventory
12/31/97 2196 2196 0
01/31/98 121350 121350 0
02/28/98 260050 197825 62225
03/31/98 752214 266746 485468
04/30/98 620229 620229
1756039 588118 1167922
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-May-98
Class A Interest Schedule
Opening Class A Principal Balance 80342345
Class A Interest Rate 5.88%
30/360*Class A Interest Rate 0.49%
Current Class A Interest Distribution 393677
Prior Class A Interest Arrearage 0
Class A Interest Due 393677
Current Class A Interest Arrearage 0
Class A Principal Schedule
Opening Class A Principal Balance 80342345
Scheduled Principal 1199049
Prepayments 454634
Liquidated Contracts 416839
(Less) Amounts reinvested 0
2070522
Retransfers 0
2070522
Class A Share - 91% 1884175
Remaining Prefunding Account Balance 0
Principal due to Class A 1884175
Prepayment from Revolving Account 0
Prepayment From Pre-Funding Account 0
Prior Class A Arrearage 0
Class A Principal Due 1884175
Class A Principal Distribution 1884175
Current Class A Arrearage 0
End Class A Prin Bal after current Distribution 78458170
Servicing Fee Schedule
Beginning Collateral Balance 88288291
Annual Servicing Rate 2.00%
Prior Servicing Fee Arrearage 0
Current Servicer Fee 147147
Servicer Fee Due 147147
Servicer Fee Paid 147147
Current Servicing Fee Arrearage 0
6
National Auto Finance 1998-1 Trust
National Auto Finance Company, Inc.
Monthly Servicer Certificate
SEC Reporting and Trustee Fee Schedule
Sec Reporting Fee 0
Closing Expenses 0
Prior Trustee Fee Arrearage 0
Current SEC and Trustee Fee 0
Trustee Fee Due 0
Current Trustee Fee Arrearage 0
Certificate Insurer Schedule
Ending Class A Balance 78458170
Insurance Premium 0.350%
Insurance Premium Supplement 0.00%
Certificate Insurer Fee 22884
Pre-Funding Account
Opening Balance 0
Monthly Originations X 91% 0
Withdrawal From Pre-Funding Account 0
Prepayment associated /w end of Pre-Funding Period 0
Due to Class A Investors 0
Closing Balance 0
Revolving Account Schedule
Opening Balance 0
Amount Transferred from Collection Account 0
First Interim Balance 0
Withdrawal From Revolving Account 0
Second Interim Balance 0
Amount Transferred to Certificate Account
Prepayment Associated /w Release from Revolv Acct 0
Ending Balance 0
Spread Account
Initial Collateral Balance 85200000
Opening Spread Account Balance 4681319
Less Interest Earned -20927
Opening Spread Account Balance 4681319
Required Balance Spread Account 4681319
Required Deposit to Spread Account 0
Ending Spread Account Balance 5239643
Required Cross Collateralization 97-1 558324
Available Contribution 98-1 April 558324
Remaining Deposit Required 0
Cap 4681319
Floor 78458170
The Floor Amount at any time will be equal to
the greater of (i) the outstanding Class A
Certificate Balance, and (ii) $100,000
7
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-May-98
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
Delinquencies ACPB Ratio
2 Months Prior: 3866942 72087831 5.364%
1 Month Prior: 4540878 88288291 5.143%
Current: 5457101 86217769 6.329%
5.612%
Maximum Delinquency Ratio 8.25%
Monthly Annual
Gross Defaulted Contracts Default Default
Defaults ACPB Rate Rate
2 Months Prior: 455159 72830442 0.625% 7.499%
1 Month Prior: 909293 80188061 1.134% 13.607%
Current: 695619 87253030 0.797% 9.567%
0.852% 10.225%
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: -1070 72830442 -0.001% -0.018%
1 Month Prior: 54045 80188061 0.067% 0.809%
Current: 195024 87253030 0.224% 2.682%
0.096% 1.158%
Maximum Annualized Net Loss Rate
(i) Month 1 through 24 8.00%
(iii) Month 25 through the remainder of the transaction 6.00%
3
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-May-98
1 Month 2 Month
(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: 3866942 72087831 5.364%
1 Month Prior: 4540878 88288291 5.143%
Current: 5457101 86217769 6.329%
5.612%
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 the transaction;
Monthly Annual
Defaults Default Default
Defaults ACPB Rate Rate
2 Months Prior: 455159 72830442 0.625% 7.499%
1 Month Prior: 909293 80188061 1.134% 13.607%
Current: 695619 87253030 0.797% 9.567%
0.852% 10.225%
Maximum Annualized Default Ratio
(i) Month 1 through 24 25.00%
(iii) Month 25 through the remainder of the transaction 17.00%
4
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-May-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 othe transaction;
Monthly Annual
Losses Loss Loss
Losses ACPB Rate Rate
2 Months Prior: -1070 72830442 -0.001% -0.018%
1 Month Prior: 54045 80188061 0.067% 0.809%
Current: 195024 87253030 0.224% 2.682%
0.096% 1.158%
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
5
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-May-98
Certificate
Account Payment
Available Amount 3227751
Payments on Payment Date
(i) Servicing Fee -147147 147147
NAFI Operating Depository Account
First Union National Bank, Charlotte, NC
Acct #2010000259454 - ABA 053000219
(ii) Trustee, Collateral Agent 0.00 0.00
and Custodian fees
Harris Bank-Closing Travel Expenses
Invoice# 40-109088
(iiia)Class A Interest -393677 393677
(iiib)Class A Principal -1884175 1884175
(iv) Certificate Insurer -22884 22884
Financial Security Assurance
Morgan Guaranty Trust
Acct #000-33-345 ABA 021-000-238
(v) Collateral Agent (Spread Account)-To 97-1 -558324 558324
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 -221543 221543
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 04/30/98
NATIONAL AUTO FINANCE COMPANY, INC.
as Master Servicer
Melissa Grimm 06/04/98
Vice President, Controller
2
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: April 30, 1998
