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): March 21, 1998
NATIONAL FINANCIAL AUTO FUNDING TRUST
(Exact name of registrant as specified in its charter)
Delaware 33-28829 9999
(State or Other Jurisdiction (Commission (Primary Standard Industrial
Identification Number) File Number) Classification Code Number)
One Park Place
621 N.W. 53rd Street
Boca Raton, FL 33487
(800) 999-7535
(Address and telephone number of Principal Executive Offices)
Item 5. Other Events
Description of the Notes and the Receivables Pool
National Financial Auto Funding Trust (the "Funding Trust") will cause
to be filed with the Securities and Exchange Commission (the "Commission")
pursuant to the Commission's Rule 424 a Prospectus Supplement and the Prospectus
(together, the "Prospectus") filed as part of Registration Statement, File No.
33-28829, in connection with the Funding Trust's issuance of a series of Notes,
entitled National Auto Finance 1997-1 Trust Automobile Receivables-Backed Notes,
Series 1997-1 (the "Notes"), to be issued pursuant to an Indenture, dated as of
June 29, 1997, between (i) National Auto Finance 1997-1 Trust (the "Trust"), a
Delaware business trust formed pursuant to a Trust Agreement dated as of June
29, 1997 between Funding Trust, as depositor, and Wilmington Trust company, as
Owner Trustee, and (ii) Harris Trust and Savings Bank, as Trustee and Trust
Collateral Agent. The Notes designated as the Series 1997-1 Notes will be
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 will
consist of Receivables having an aggregate principal balance as of June 29, 1997
(the "Cut-off Date") of approximately $66,156,163.54 and certain additional
Receivables to the extent purchased by the Trust on or prior to October 30, 1997
with funds deposited in a Pre-Funding Account in the amount of approximately
$6,689,091.18.
Computational Materials
First Union Capital Markets Corp., as underwriter of the Notes (the
"Underwriter") has provided certain prospective purchasers of Notes with certain
computational materials (the "Computational Materials") in written form, which
Computational Materials are in the nature of data tables relating to the
structure and terms of the Notes and the hypothetical characteristics and
hypothetical performance of the Notes under certain assumptions and scenarios,
based on collateral information provided by National Auto Finance Company, Inc.
A. Monthly Report Information:
Aggregate distribution information for the current
distribution date March 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 March 21, 1998.
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Mar-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 2,620,877 0 0 0 0
2 0 0 9,504 0 0 0 0
3 2,612,825 0 0 0 0 0 0 0
4 0 0 0 0 0 0 0 0
5 12,890 0 0 0 0 0 0 0
6 0 0 0 0 0 0 0 0
7 -3,818 0 0 0 0 0 1,989 0
8 0 0 0 0 0 0 0 0
9 -12,890 0 0 -9,504 0 0 28,818 0
10 -2,275,449 0 0 0 0 2,275,449 0 0
11 0 0 0 0 0 0 0 0
12 -333,558 0 0 0 0 333,558 0 0
13 0 0 0 0 0 0 0 0
14 0 0 0 0 0 0 0 0
15 0 0 0 0 0 0 0 0
16 0 0 0 0 0 0 0 0
17 0 0 0 120,184 0 0 0 0
18 0 0 0 0 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 0 0 0 0 0
27 0 0 0 0 0 0 0 0
28 0 0 0 2,741,061 0 2,609,007 0 0
29 0 0 0 0 0 2,609,007 0 0
30 0 0 0 3,563,441 0 2,411,446 30,806 0
31 0 0 0 0 0 2,411,446 0 0
1Beginning Account Balances
2Interest Income
Collection Account
3Lockbox Collections during the Collections Period
4Add: Retransfer Amount received in respect of any Retransferred Contracts
5Add: Any income and gain from investments of funds in the Collection Account
6Add: Amounts received from Transferor, Master Servicer or Subservicer
7Less: Late Payment fees collected with respect to the Contracts on Deposit
8Less: Supplemental Servicing Fee
9Less: Any income and gain on investments of deposits in Collection Account
10Less: Scheduled, Prepay and Liquidated Contract Principal
11Less: Amounts deposited with respect to Retransferred Contracts
Certificate Account
12Add: Withdrawals from Collection Account
13Add: Amounts received from the Transferor
14Add: Amounts received from the Master Servicer or Subservicer
15Add: Withdrawals from Revolving Account
16Add: Withdrawals from the Pre-Funding Reserve Account
17Add: Deposits to the Spread Account
18Add: Proceeds of any Contracts or Property
19Add: Any income and gain on investments of funds in the Certificate Account
20Add: Amounts received from Certificate Insurer
21Add: Withdrawals from the Revolving Account or Pre-Funding Account
22Less: Expenses of an Opinion of Counsel
23Less: Expenses of Master Servicer or Transferor
24Less: Payments to the Master servicer of Insurance and Liquidation Proceeds
25Less: Pmts to Transferor w/ respect to Retransferred Contracts or property
Pre-Funding Reserve Account
26Less: Amount in excess of Required Deposit
27Less: Amounts Distributed
28Ending Account Balances
29Available Amount to Certificate Holders
30Ending Account Balances
31Available Amount to Certificate Holders
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Mar-98
Cert
Account Payment
Available Amount 2,609,007 0
Payments on Payment Date
(i) Servicing Fee (103,438) 103,438
NAFI Operating Depository Account
First Union National Bank, Charlotte, NC
Acct #2010000259454 - ABA 053000219
(ii) Trustee, Collateral Agent 0 0
and Custodial fees
Harris Trust and Savings Bank
(iiia) Class A Interest (298,858) 298,858
(iiib) Class A Principal (2,070,659) 2,070,659
(iv) Certificate Insurer (15,869) 15,869
Financial Security Assurance
Morgan Guaranty Trust
Acct #000-33-345 ABA 021-000-238
(v) Collateral Agent (Spread Account) (120,184) 120,184
Harris Trust and Savings Bank
(va) [Reserved] 0 0
(vi) Unreimbursed expenses to the Trustee 0 0
(vii) Unreimbursed expenses to the Master Servicer 0 0
(viii) Unreimbursed expenses to the Standby Servicer 0 0
(ix) Unreimbursed expenses to the Transferor 0 0
(x) Class B Certificate Holders 0 0
Pursuant to section 3.17 of the Pooling and Service Agreement dated as of
July 17,1997 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 28-Feb-98
NATIONAL AUTO FINANCE COMPANY, INC.
as Master Servicer
Melissa Grimm 24-Nov-98
Vice President, Controller
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Mar-98
1 Month 2 Months
(A) Portfolio Performance Tests: Current: Previous Previous
(yes/no) (yes/no) (yes/no)
Trigger Event (Yes/No) yes yes no
Monthly
Delinquencies Delinquency
Delinquencies ACPB Ratio
2 Months Prior: 5,422,401 64,213,039 8.444%
1 Month Prior: 5,612,278 62,062,832 9.043%
Current: 4,806,489 59,787,383 8.039%
8.509%
Maximum Delinquency Ratio 8.25%
Monthly Annual
Gross Defaulted Contracts Default Default
Defaults ACPB Rate Rate
2 Months Prior: 1,030,594 65,258,279 1.58% 18.95%
1 Month Prior: 1,242,268 63,137,936 1.97% 23.61%
Current: 910,689 60,925,108 1.49% 17.94%
1.681% 20.166%
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: 457,171 65,258,279 0.70% 8.41%
1 Month Prior: 383,271 63,137,936 0.61% 7.28%
Current: 528,739 60,925,108 0.87% 10.41%
0.725% 8.702%
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 1997-1 Trust
Monthly Servicer Certificate
21-Mar-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: 5,422,401 64,213,039 8.44%
1 Month Prior: 5,612,278 62,062,832 9.04%
Current: 4,806,489 59,787,383 8.04%
8.51%
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: 1,030,594 65,258,279 1.58% 18.95%
1 Month Prior: 1,242,268 63,137,936 1.97% 23.61%
Current: 910,689 60,925,108 1.49% 17.94%
1.68% 20.17%
Maximum Annualized Default Ratio
(i) Month 1 through 24 25.00%
(iii) Month 25 through the remainder of the transaction 17.00%
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Mar-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: 457,171 65,258,279 0.701% 8.407%
1 Month Prior: 383,271 63,137,936 0.607% 7.284%
Current: 528,739 60,925,108 0.868% 10.414%
0.725% 8.702%
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 1997-1 Trust
Monthly Servicer Certificate
21-Mar-98
Class A Interest Schedule
Opening Class A Principal Balance 56,477,177
Class A Interest Rate 6.35%
30/360*Class A Interest Rate 0.53%
Current Class A Interest Distribution 298,858
Prior Class A Interest Arrearage 0
Class A Interest Due 298,858
Current Class A Interest Arrearage 0
Class A Principal Schedule
Opening Class A Principal Balance 56,477,177
Scheduled Principal 879,454
Prepayments 481,862
Liquidated Contracts 914,133
Less: Amounts reinvested 0
2,275,449
Retransfers 0
2,275,449
Class A Share - 91% 2,070,659
Remaining Revolving Account Balance 0
Principal due to Class A 2,070,659
Prepayment from Revolving Account 0
Prepayment From Pre-Funding Account 0
Prior Class A Arrearage 0
Class A Principal Due 2,070,659
Class A Principal Distribution 2,070,659
Current Class A Arrearage 0
Ending Class A Principal Balance after current Distribution 54,406,519
Servicing Fee Schedule
Beginning Collateral Balance 62,062,832
Annual Servicing Rate 2.00%
Prior Servicing Fee Arrearage 0
Current Servicer Fee 103,438
Servicer Fee Due 103,438
Servicer Fee Paid 103,438
Current Servicing Fee Arrearage 0
National Auto Finance 1997-1 Trust
National Auto Finance Company, Inc.
Monthly Servicer Certificate
Trustee Fee Schedule
Annual Trustee Fee 0
Prior Trustee Fee Arrearage 0
Current Trustee Fee 0
Trustee Fee Due 0
Current Trustee Fee Arrearage 0
Certificate Insurer Schedule
Ending Class A Balance 54,406,519
Insurance Premium 0.350%
Insurance Premium Supplement 0.50%
Certificate Insurer Fee 15,869
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
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 0
Prepayment Associated w/ Release from Revolving Acct 0
Ending Balance
Spread Account
Initial Collateral Balance 66,891,200
Opening Spread Account Balance 2,620,877
Less Interest Earned (9,504)
Opening Spread Account Balance 2,620,877
Required Balance Spread Account 4,185,117
Required Deposit to Spread Account 1,564,240
Ending Spread Account Balance 2,741,061
Cap 4,185,116.82
Floor 54,406,518.68
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 1997-1 Trust
Monthly Servicer Certificate
21-Mar-98
Class A Certificate Factor
Current Class A Balance 54,406,519
Initial Class A Balance 66,891,200
Certificate Factor: 0.813358389
Aggregate Contract Principal Balance 59,787,383
Class A Balance 54,406,519
Less: Prefunding Account 0
Receivable backed Certificates 54,406,519
A Investor Percentage 91.00%
February 28, 1998
Weighted Average Coupon 19.18%
Weighted Average Maturity 44.79
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Mar-98
Beginning of Transaction 07/21/97
Payment Date 03/21/98
Month of Transaction 8
Period Ended 02/28/98
Collection Account
Beginning Balance 0.00
Collections during the Collections Period 2,612,825.21
Retransfer Amt received in respect of any Retransferred Contracts 0.00
Any income & gain from investments of funds in the Collection Acct 12,890.06
Amts received from Transferor, Master Servicer or Subservicer 0.00
Late Payment Fees collected w/ respect to the Contracts on Deposit 3,817.81
Supplemental Servicing Fee 0.00
Amounts deposited with respect to Retransferred Accounts 0.00
Scheduled Principal (During Revolving Period - Months 1 through 7) 879,454.07
Prepayments (During Revolving Period - Months 1 through 7) 481,861.52
Recoveries (During Revolving Period - Months 1 through 7) 385,393.91
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 & 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 the Master servicer of Insurance and Liquidation Proceeds 0.00
Pmts to the Transferor w/ respect to Retransferred Contracts or prop 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 the current month, No
or has there ever been a claim?
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 2,620,877.20
Interest Income 9,503.50
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Mar-98
Number of loans currently owned by Trust 5,393
Initial Collateral Balance 66,891,200
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 66,891,200
Prior Class A Principal Arrearage 0
1 Month 2 Months 3 Months
Current Prior Prior Prior
30+ Days Past Due 2,412,684 3,032,059 3,091,177 3,535,806
60+ Days Past Due 1,125,910 1,310,744 1,324,351 1,080,209
90+ Days Past Due 1,267,894 1,269,475 1,006,873 926,563
Delinquent (30+ days past due) 4,806,489 5,612,278 5,422,401 5,542,578
Current Month Repos 461,603 680,597 578,924 463,664
New over 90 Days 449,086 561,671 451,670 468,843
Defaults 910,689 1,242,268 1,030,594 932,507
Liquidated Contracts
Repos > 90 Days 221,478 240,290 203,698 16,061
Closed Repo's 692,656 489,254 533,067 465,183
Past Due > 120 Days 0 0 0 0
Chapter 13 Bankruptcy 0 0 0 0
Net Liquidated Accounts 914,133 729,544 736,766 481,244
Recoveries - net of expenses 385,394 346,273 279,594 275,617
Net Losses 528,739 383,271 457,171 205,627
ACPB 59,787,383 62,062,832 64,213,039 66,303,520
Principal Paid
08/21/97 1,032,777
09/21/97 1,133,973
10/21/97 1,202,786
11/21/97 1,480,428
12/21/97 1,705,033
01/21/98 1,902,337
02/21/98 1,956,688
10,414,023
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/Name: Keith B. Stein
Secretary
Dated: March 31, 1998
