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): February 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 February 21, 1998.
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 February 21, 1998.
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Feb-98
Pre-
Pre- Funding
Collect Funding Reserve Spread Revolvi Cert Master
Acct Acct Acct Acct Acct Acct Transfero Servicer
1 0 0 0 2,274,301 0 0 0 0
2 0 0 10,397 0 0 0 0
3 2,743,742 0 0 0 0 0 0 0
4 0 0 0 0 0 0 0 0
5 13,021 0 0 0 0 0 0 0
6 0 0 0 0 0 0 0 0
7 (7,770) 0 0 0 0 0 7,770 0
8 0 0 0 0 0 0 0 0
9 (13,021) 0 0 (10,397) 0 0 23,419 0
10 (2,150,207) 0 0 0 0 2,150,207 0 0
11 0 0 0 0 0 0 0 0
12 (585,765) 0 0 0 0 585,765 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 0 346,576 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 2,620,877 0 2,735,972 31,189 0
29 0 0 0 0 0 2,735,972 0 0
1 Beginning Account Balances
2 Interest Income
Collection Account
3 Lockbox Collections during the Collections Period
4 Add: Retransfer Amount received in respect of any Retransferred Contracts
5 Add: Any income and gain from investments of funds in the Collection Acct
6 Add: Amts received from Transferor, Master Servicer or Subservicer
7 Less: Late Payment fees collected with respect to the Contracts on Deposit
8 Less: Supplemental Servicing Fee
9 Less: Any income and gain on investments of deposits in Collection Account
10 Less: Scheduled, Prepay and Liquidated Contract Principal
11 Less: Amounts deposited with respect to Retransferred Contracts
Certificate Account
12 Add: Withdrawals from Collection Account
13 Add: Amounts received from the Transferor
14 Add: Amounts received from the Master Servicer or Subservicer
15 Add: Withdrawals from Revolving Account
16 Add: Withdrawals from the Pre-Funding Reserve Account
17 Add: Deposits to the Spread Account
18 Add: Proceeds of any Contracts or Property
19 Add: Any income and gain on investments of funds in the Certificate Acct
20 Add: Amounts received from Certificate Insurer
21 Add: Withdrawals from the revolving Account or Pre-Funding Account
22 Less: Expenses of an Opinion of Counsel
23 Less: Expenses of Master Servicer or Transferor
24 Less: Payments to the Master servicer of Insurance and Liquidation Proceeds
25 Less: Pmts to Transferor w/ respect to Retransferred Contracts or property
Pre-Funding Reserve Account
26 Less: Amount in excess of Required Deposit
27 Less: Amounts Distributed
28 Ending Account Balances
29 Available Amount to Certificate Holders
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Feb-98
Cert
Account Payment
Available Amount 2,735,972 0
Payments on Payment Date
(i) Servicing Fee (107,022) 107,022
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 (309,213) 309,213
(iiib) Class A Principal (1,956,688) 1,956,688
(iv) Certificate Insurer (16,473) 16,473
Financial Security Assurance
Morgan Guaranty Trust
Acct #000-33-345 ABA 021-000-238
(v) Collateral Agent (Spread Account) (346,576) 346,576
Harris Trust and Savings Bank
(vi) [Reserved] 0 0
(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 0 0
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
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 31-Jan-98
NATIONAL AUTO FINANCE COMPANY, INC.
as Master Servicer
Melissa Grimm
Vice President, Controller 24-Nov-98
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Feb-98
1 Month 2 Months
(A) Portfolio Performance Tests: Current: Previous Previous
(yes/no) (yes/no) (yes/no)
Trigger Event (Yes/No) yes no no
Monthly
Delinquencies Delinquency
Delinquencies ACPB Ratio
2 Months Prior: 5,542,578 66,303,520 8.359%
1 Month Prior: 5,422,401 64,213,039 8.444%
Current: 5,612,278 62,062,832 9.043%
8.616%
Maximum Delinquency Ratio 8.25%
Monthly Annual
Gross Defaulted Contracts Default Default
Defaults ACPB Rate Rate
2 Months Prior: 932,507 67,240,351 1.387% 16.642%
1 Month Prior: 1,030,594 65,258,279 1.579% 18.951%
Current: 1,242,268 63,137,936 1.968% 23.611%
1.645% 19.735%
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: 205,627 67,240,351 0.306% 3.670%
1 Month Prior: 457,171 65,258,279 0.701% 8.407%
Current: 383,271 63,137,936 0.607% 7.284%
0.538% 6.454%
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-Feb-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: 5,542,578 66,303,520 8.359%
1 Month Prior: 5,422,401 64,213,039 8.444%
Current: 5,612,278 62,062,832 9.043%
8.616%
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: 932,507 67,240,351 1.387% 16.642%
1 Month Prior: 1,030,594 65,258,279 1.579% 18.951%
Current: 1,242,268 63,137,936 1.968% 23.611%
1.645% 19.735%
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-Feb-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: 205,627 67,240,351 0.306% 3.670%
1 Month Prior: 457,171 65,258,279 0.701% 8.407%
Current: 383,271 63,137,936 0.607% 7.284%
0.538% 6.454%
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-Feb-98
Class A Interest Schedule
Opening Class A Principal Balance 58,433,866
Class A Interest Rate 6.35%
30/360*Class A Interest Rate 0.53%
Current Class A Interest Distribution 309,213
Prior Class A Interest Arrearage 0.00
Class A Interest Due 309,213
Current Class A Interest Arrearage 0.00
Class A Principal Schedule
Opening Class A Principal Balance 58,433,866
Scheduled Principal 911,136
Prepayments 509,527
Liquidated Contracts 729,544
Less: Amounts reinvested 0
2,150,207
Retransfers 0
2,150,207
Class A Share - 91% 1,956,688
Remaining Revolving Account Balance 0
Principal due to Class A 1,956,688
Prepayment from Revolving Account 0
Prepayment From Pre-Funding Account 0
Prior Class A Arrearage 0
Class A Principal Due 1,956,688
Class A Principal Distribution 1,956,688
Current Class A Arrearage 0
Ending Class A Principal Balance after current Distribution 56,477,177
Servicing Fee Schedule
Beginning Collateral Balance 64,213,039
Annual Servicing Rate 2.00%
Prior Servicing Fee Arrearage 0
Current Servicer Fee 107,022
Servicer Fee Due 107,022
Servicer Fee Paid 107,022
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 56,477,177
Insurance Premium 0.350%
Insurance Premium Supplement 0.50%
Certificate Insurer Fee 16,473
Pre-Funding Account
Opening Balance 0
Monthly Originations X 91% 0
Withdrawal From Pre-Funding Account 0
Prepayment associated with 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 with Release from Revolving Account 0
Ending Balance
Spread Account
Initial Collateral Balance 66,891,200
Opening Spread Account Balance 2,274,301
Less Interest Earned (10,397)
Opening Spread Account Balance 2,274,301
Required Balance Spread Account 4,344,398
Required Deposit to Spread Account 2,070,097
Ending Spread Account Balance 2,620,877
Cap 4,344,398
Floor 56,477,177
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-Feb-98
Class A Certificate Factor
Current Class A Balance 56,477,177
Initial Class A Balance 66,891,200
Certificate Factor: 0.8443140082
Aggregate Contract Principal Balance 62,062,832
Class A Balance 56,477,177
Less: Prefunding Account 0
Receivable backed Certificates 56,477,177
A Investor Percentage 91.00%
January 31, 1998
Weighted Average Coupon 19.20%
Weighted Average Maturity 45.60
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Feb-98
Beginning of Transaction 07/21/97
Payment Date 02/21/98
Month of Transaction 7
Period Ended 01/31/98
Collection Account
Beginning Balance 0
Collections during the Collections Period 2,743,742
Retransfer Amt received in respect of any Retransferred Contracts 0
Any income & gain from investments of funds in the Collection Acct 13,021
Amts received from Transferor, Master Servicer, or Subservicer 0
Late Pmt Fees collected with respect to the Contracts on Deposit 7,770
Supplemental Servicing Fee 0
Amounts deposited with respect to Retransferred Accounts 0
Scheduled Principal (During Revolving Period - Months 1 through 7) 911,136
Prepayments (During Revolving Period - Months 1 through 7) 509,527
Recoveries (During Revolving Period - Months 1 through 7) 346,273
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 & gain on investments of funds in the Certificate 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 & Liquidation Proceeds 0
Pmts to Transferor w/ respect to Retransferred Contracts or property 0
Pre-Funding Reserve Account
Beginning Balance 0
Amount in excess of Required Deposit 0
Interest Income 0
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
Transfers 0
Over 3.0 Million Principal
Remaining balance due to Investors 0
Interest Income 0
Pre-Funding Account
Beginning Balance 0
Interest Income 0
Spread Account
Beginning Balance 2,274,301
Interest Income 10,397
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Feb-98
Number of loans currently owned by Trust 5,511
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
Current 1 Month 2 Months 3 Months
Prior Prior Prior
30+ Days Past Due 3,032,059 3,091,177 3,535,806 2,637,619
60+ Days Past Due 1,310,744 1,324,351 1,080,209 1,061,407
90+ Days Past Due 1,269,475 1,006,873 926,563 634,941
Delinquent (30+ days past due) 5,612,278 5,422,401 5,542,578 4,333,966
Current Month Repos 680,597 578,924 463,664 462,158
New over 90 Days 561,671 451,670 468,843 378,767
Defaults 1,242,268 1,030,594 932,507 840,925
Liquidated Contracts
Repos > 90 Days 240,290 203,698 16,061 3,531
Closed Repo's 489,254 533,067 465,183 209,828
Past Due > 120 Days 0 0 0 0
Chapter 13 Bankruptcy 0 0 0 0
Net Liquidated Accounts 729,544 736,766 481,244 213,359
Recoveries - net of expenses 346,273 279,594 275,617 142,981
Net Losses 383,271 457,171 205,627 70,378
ACPB 62,062,832 64,213,039 66,303,520 68,177,182
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
8,457,334
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: February 28, 1998
