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)
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 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.
Pre-Funding Revolv
Collection Pre-Funding Reserve Spread ing Certificate Trans Master
Account Account Account Account Acct Account feror Serv
1 0.00 16490982.64 154832.00 4681318.68 0.00 0.00 0.00 0.00
2 66581.46 625.13 17476.11 0.00
3
4 2297686.86
5 0.00
6 7884.08
7 0.00 0.00
8 -8056.41 8056.41
9 0.00 0.00
10 -7884.08 -17476.11 25360.19
11-1486291.28 0.00 1486291.28
12 0.00
13
14 -803339.17 803339.17
15 0.00 0.00
16 0.00 0.00
17 0.00 0.00
18 0.00
19 0.00 0.00 0.00
20 0.00 0.00
21 0.00
22 -66581.46 -625.13 0.00 67206.59
23 0.00
24 0.00 0.00 0.00 0.00
25 0.00
26 0.00
27 0.00 0.00
28 0.00 0.00
29
30 0.00 0.00
31 0.00
32 0.00 16490982.64 154832.00 4681318.68 0.00 2356837.04 33416.60 0.00
33 2356837.04
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 Transferor, Master Servicer 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 Less: Expenses of an Opinion of Counsel
26 Less: Expenses of Master Servicer or Transferor
27 Less: Payments to the Master servicer of Insurance and Liquidation Proceeds
28 Less: Payments to Transferor on 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 82,090,909
Initial Class A Balance 85,200,000
Certificate Factor: 0.9635083202
Aggregate Contract Principal Balance 72,087,831
Class A Balance 82,090,909
Less: Prefunding Account (16,490,983)
Receivable backed Certificates 65,599,926
A Investor Percentage 91.00%
Weighted Average Coupon 19.15%
Weighted Average Maturity 49.77
Beginning of Transaction 12/16/97
Payment Date 03/21/98
Month of Transaction 3
Period Ended 02/28/98
Collection Account
Beginning Balance 0.00
Collections during the Collections Period 2297686.86
Retransfer Amount on any Retransferred Contracts 0.00
Income and gain from investments of funds in Collection Acct 7884.08
Amounts received from Transferor, Master Servicer or any Subservicer 0.00
Late Payment Fees collected with respect to the Contracts on Deposit 8056.41
Supplemental Servicing Fee 0.00
Amounts deposited with respect to Retransferred Accounts 0.00
Scheduled Principal (During Revolving Period - Months 1 through 2)
1206106.61
Prepayments (During Revolving Period - Months 1 through 2) 254741.99
Recoveries (During Revolving Period - Months 1 through 2) 25442.68
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
Income and gain on investments of funds in 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
Payments to Transferor on Retransferred Contracts or property 0.00
Pre-Funding Reserve Account
Beginning Balance 154832.00
Amount in excess of Required Deposit 0.00
Interest Income 625.13
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
Transfers 0.00
Over 3.0 Million Principal
Remaining balance due to Investors 0.00
Interest Income 0.00
Pre-Funding Account
Beginning Balance 16490982.64
Interest Income 66581.46
Spread Account
Beginning Balance 4681318.68
Interest Income 17476.11
Number of loans currently owned by Trust 6,234
Initial Collateral Balance 85200000.00
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 Standby Servicer 0.00
Unreimbursed expenses to the Transferor 0.00
Opening Class A Principal Balance 85200000.00 x
Prior Class A Principal Arrearage 0.00
Current 1 Mo Prior 2 Mos Prior 3 Mos Prior
30+ Days Past Due 2731440.99 2898921.13 2596912.72 0.00
60+ Days Past Due 940391.14 600983.36 7446.71 0.00
90+ Days Past Due 195109.49 12106.97 0.00 0.00
Delinquent (30+ days past due) 3866941.62 3512011.46 2604359.43 0.00
Current Month Repos 260049.92 123546.50 0.00 0.00
New over 90 Days 195109.49 12106.97 0.00 0.00
Defaults 455159.41 135653.47 0.00 0.00
Liquidated Contracts
Repos > 90 Days 0.00 0.00 0.00 0.00
Closed Repo's 24373.00 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 24373.00 0.00 0.00 0.00
Recoveries - net of expenses 25442.68 8794.66 0.00 0.00
Net Losses -1069.68 -8794.66 0.00 0.00
ACPB 72087831.05 73573052.65 74877778.19 75504414.69
Principal Paid
01/21/98 570239.22
02/21/98 1187300.24
1757539.46
Amount
World Omni to World Omni ( Servicer) Reconciliation
Opening Principal Balance
(prior Month) - Trailer Summary Report 73453673.22
Add: New Accounts Transferred 0.00
Less: Scheduled Principal Received -1206106.61
Prepaid Accounts -254741.99
Repossessed Accounts -260049.92
-1720898.52
Less: Non cash Transactions 0.00
Subtotal 71732774.70
Closing Principal Balance - Trailer Summary 72003645.92
Difference -270871.22
ACPB to World Omni Reconciliation
Closing Principal Balance
per World Omni 72003645.92
Less: World Omni to World Omni Difference -270871.22
Add: Non Liquidated Repo Inventory
deducted from World Omni balance but
not passed through to investors 357026.97
Adjusted World Omni Principal Balance 72089801.67
ACPB Prior to ACPB Current Reconciliation
Prior Month ACPB 73573052.65
Add: New Accounts Transferred 0.00
Less: Scheduled Principal Received -1206106.61
Prepaid Accounts -254741.99
Less: Liquidated Accounts -24373.00
Current Month ACPB 72087831.05
Adjusted World Omni Principal Balance 72089801.67
Current Month ACPB 72087831.05
Difference 1970.62
Liquidated Repo
Repo/Liquidated Accounts Repo PrincipalPrincipal Inventory
12/31/97 0.00 0.00 0.00
01/31/98 121350.05 24373.00 96977.05
02/28/98 260049.92 260049.92
03/31/98 0.00
04/30/98 0.00
381399.97 24373.00 357026.97
A Difference as follows:
-2057.99
87.37
-1970.62
Class A Interest Schedule
Opening Class A Principal Balance 83442460.54
Class A Interest Rate 5.88%
30/360*Class A Interest Rate 0.49%
Current Class A Interest Distribution 408868.06
Prior Class A Interest Arrearage 0.00
Class A Interest Due 408868.06
Current Class A Interest Arrearage 0.00
Class A Principal Schedule
Opening Class A Principal Balance 83442460.54
Scheduled Principal 1206106.61
Prepayments 254741.99
Liquidated Contracts 24373.00
(Less) Amounts reinvested 0.00
1485221.60
Retransfers 0.00
1485221.60
Class A Share - 91% 1351551.66
Remaining Revolving Account Balance 0.00
Principal due to Class A 1351551.66
Prepayment from Revolving Account 0.00
Prepayment From Pre-Funding Account 0.00
Prior Class A Arrearage 0.00
Class A Principal Due 1351551.66
Class A Principal Distribution 1351551.66
Current Class A Arrearage 0.00
Ending Class A Principal Balance after current Distribution 82090908.88
Servicing Fee Schedule
Beginning Collateral Balance 73573052.65
Annual Servicing Rate 2.00%
Prior Servicing Fee Arrearage 0.00
Current Servicer Fee 122621.75
Servicer Fee Due 122621.75
Servicer Fee Paid 122621.75
Current Servicing Fee Arrearage 0.00
SEC Reporting and Trustee Fee Schedule
Sec Reporting Fee 1500.00
Annual Trustee Fee 0.00
Prior Trustee Fee Arrearage 0.00
Current SEC and Trustee Fee 1500.00
Trustee Fee Due 1500.00
Current Trustee Fee Arrearage 0.00
Certificate Insurer Schedule
Ending Class A Balance 82090908.88
Insurance Premium 0.350%
Insurance Premium Supplement 0.00%
Certificate Insurer Fee 23,943.18
Pre-Funding Account
Opening Balance 16490982.64
Monthly Originations X 91% 0.00
Withdrawal From Pre-Funding Account 0.00
Prepayment associated with end of Pre-Funding Period 0.00
Closing Balance 16490982.64
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 Associated with Release from Revolving Acct 0.00
Ending Balance 0.00
Spread Account
Initial Collateral Balance 85200000.00
Opening Spread Account Balance 4681318.68
Less Interest Earned -17476.11
Opening Spread Account Balance 4681318.68
Required Balance Spread Account 4681318.68
Required Deposit to Spread Account 0.00
Ending Spread Account Balance 4681318.68
Cap 4681318.68
Floor 82090908.88
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 Previous2 Mos Previous
(yes/no) (yes/no) (yes/no)
Trigger Event (Yes/No) no no no
Monthly
Delinquencies Delinquency
Delinquencies ACPB Ratio
2 Months Prior: 2604359.43 74877778.19 3.478%
1 Month Prior: 3512011.46 73573052.65 4.774%
Current: 3866941.62 72087831.05 5.364%
4.539%
Maximum Delinquency Ratio 8.25%
Monthly Annual
Gross Defaulted Contracts Default Default
Defaults ACPB Rate Rate
2 Months Prior: 0.00 75191096.44 0.000% 0.000%
1 Month Prior: 135653.47 74225415.42 0.183% 2.193%
Current: 455159.41 72830441.85 0.625% 7.499%
0.269% 3.231%
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: 0.00 75,191,096 0.000% 0.000%
1 Month Prior: -8794.66 74,225,415 -0.012% -0.142%
Current: -1069.68 72,830,442 -0.001% -0.018%
-0.004% -0.053%
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 Previous2 Mos
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: 2604359.43 74877778.19 3.478%
1 Month Prior: 3512011.46 73573052.65 4.774%
Current: 3866941.62 72087831.05 5.364%
4.539%
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: 0.00 75191096.44 0.000% 0.000%
1 Month Prior: 135653.47 74225415.42 0.183% 2.193%
Current: 455159.41 72830441.85 0.625% 7.499%
0.269% 3.231%
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 of the transaction;
Monthly Annual
Losses Loss Loss
Losses ACPB Rate Rate
2 Months Prior: 0.00 75191096.44 0.000% 0.000%
1 Month Prior: -8794.66 74225415.42 -0.012% -0.142%
Current: -1069.68 72830441.85 -0.001% -0.018%
-0.004% -0.053%
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 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 2,356,837.04
Payments on Payment Date
(i) Servicing Fee (122,621.75) 122,621.75
(ii) Trustee, Collateral Agent (1,500.00) 1,500.00
and Custodian fees
(iiia) Class A Interest (408,868.06) 408,868.06
(iiib) Class A Principal (1,351,551.66)1,351,551.66
(iv) Certificate Insurer (23,943.18) 23,943.18
(v) Collateral Agent (Spread Account) 0.00 0.00
(vi) [Reserved]
(vii) Unreimbursed expenses to the Trustee 0.00 0.00
(viii) Unreimbursed expenses to Master Servicer 0.00 0.00
(ix) Unreimbursed expenses to Standby Servicer 0.00 0.00
(x) Unreimbursed expenses to the Transferor 0.00 0.00
(xi) Class B Certificate Holders (448,352.39) 448,352.39
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: February 28, 1997
