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): December 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 December 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 December 21, 1998.
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-Dec-98
Pre-
Pre- Funding
Collect FundingReserve Spread Revolvi Cert Master
Acct Acct Acct Acct Acct Acct Transferor Servicer
1 0 0 0 6,449,712 0 0 0 0
2 0 0 24,378 0 0 0 0
3
4 3,036,668 0 0 0 0 0 0 0
5 0 0 0 0 0 0 0 0
6 17,144 0 0 0 0 0 0 0
7 0 0 0 0 0 0 0 0
8 (468) 0 0 0 0 0 468 0
9 0 0 0 0 0 0 0 0
10 (17,144) 0 0 (24,378) 0 0 41,523 0
11 (2,149,663) 0 0 0 0 2,149,663 0 0
12 0 0 0 0 0 0 0 0
13
14 (886,537) 0 0 0 0 886,537 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 79,371 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 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 6,529,084 0 3,036,200 41,991 0
32 0 0 0 0 0 3,036,200 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: Amts 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: 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 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: Amendment Expense FSA
27 Less: Payments to the Master servicer of Insurance and Liquidation Proceeds
28 Less: Pmts to Transferor with respect to Retransferred Contracts or property
Pre-Funding Reserve Account
29 Less: Amount in excess of Required Deposit
30 Less: Amounts Distributed
31 Ending Account Balances
32 Available Amount to Certificate Holders
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-Dec-98
Cert
Account Payment
Available Amount 3,036,200 0
Payments on Payment Date
(i) Servicing Fee (120,750) 120,750
NAFI Operating Depository Account
First Union National Bank, Charlotte, NC
Acct #2010000259454 - ABA 053000219
(ii) Trustee, Collateral Agent (1,402) 1,402
and Custodial fees
Harris Trust and Savings Bank
(Legal Fees payable to Seward and Kissel)
(iiia)Class A Interest (323,055) 323,055
(iiib)Class A Principal (2,493,120) 2,493,120
(iv) Certificate Insurer (18,502) 18,502
Financial Security Assurance
Morgan Guaranty Trust
Acct #000-33-345 ABA 021-000-238
(v) Collateral Agent (Spread Account) (79,371) 79,371
Harris Trust and Savings Bank
(va) Cross Collateralization To 96-1 0 0
(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
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 30-Nov-98
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-Dec-98
1 Month 2 Months
(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: 7,143,784 75,260,784 9.492%
1 Month Prior: 5,461,979 72,449,992 7.539%
Current: 5,056,963 69,710,300 7.254%
8.095%
Maximum Delinquency Ratio 8.25%
Monthly Annual
Gross Defaulted Contracts Default Default
Defaults ACPB Rate Rate
2 Months Prior: 1,234,041 76,544,631 1.612% 19.346%
1 Month Prior: 1,008,362 73,855,388 1.365% 16.384%
Current: 1,263,660 71,080,146 1.778% 21.334%
1.585% 19.021%
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: 332,875 76,544,631 0.435% 5.219%
1 Month Prior: 346,316 73,855,388 0.469% 5.627%
Current: 590,029 71,080,146 0.830% 9.961%
0.578% 6.936%
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-Dec-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: 7,143,784 75,260,784 9.492%
1 Month Prior: 5,461,979 72,449,992 7.539%
Current: 5,056,963 69,710,300 7.254%
8.095%
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: 1,234,041 76,544,631 1.612% 19.346%
1 Month Prior: 1,008,362 73,855,388 1.365% 16.384%
Current: 1,263,660 71,080,146 1.778% 21.334%
1.585% 19.021%
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 1998-1 Trust
Monthly Servicer Certificate
21-Dec-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: 332,875 76,544,631 0.435% 5.219%
1 Month Prior: 346,316 73,855,388 0.469% 5.627%
Current: 590,029 71,080,146 0.830% 9.961%
0.578% 6.936%
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-Dec-98
Class A Interest Schedule
Opening Class A Principal Balance 65,929,493
Class A Interest Rate 5.88%
30/360*Class A Interest Rate 0.49%
Current Class A Interest Distribution 323,055
Prior Class A Interest Arrearage 0.00
Class A Interest Due 323,055
Current Class A Interest Arrearage 0.00
Opening Class A Principal Balance 65,929,493
Scheduled Principal 1,168,222
Prepayments 573,161
Liquidated Contracts 998,309
Less: Principal write-up adjustment
2,739,692
Retransfers 0
2,739,692
Class A Share - 91% 2,493,120
Remaining Prefunding Account Balance 0
Principal due to Class A 2,493,120
Prepayment from Revolving Account 0
Prepayment From Pre-Funding Account 0
Prior Class A Arrearage 0
Class A Principal Due 2,493,120
Class A Principal Distribution 2,493,120
Current Class A Arrearage 0
Ending Class A Principal Balance after current Distribution 63,436,373
Servicing Fee Schedule
Beginning Collateral Balance 72,449,992
Annual Servicing Rate 2.00%
Prior Servicing Fee Arrearage 0
Current Servicer Fee 120,750
Servicer Fee Due 120,750
Servicer Fee Paid 120,750
Current Servicing Fee Arrearage 0
National Auto Finance 1998-1 Trust
National Auto Finance Company, Inc.
Monthly Servicer Certificate
SEC Reporting and Trustee Fee Schedule
Sec Reporting Fee 408.59
Legal Fees 993.23
Prior Trustee Fee Arrearage 0.00
Current SEC and Trustee Fee 0.00
Trustee Fee Due 1,401.82
Current Trustee Fee Arrearage 0.00
Certificate Insurer Schedule
Ending Class A Balance 63,436,373
Insurance Premium 0.350%
Insurance Premium Supplement 0.00%
Certificate Insurer Fee 18,502.28
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
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 85,200,000
Opening Spread Account Balance 6,449,712
Less Interest Earned (24,378)
Opening Spread Account Balance 6,449,712
Required Balance Spread Account 6,272,326
Required Deposit to Spread Account 0
Ending Spread Account Balance 79,371
Remaining Deposit Required 6,529,084
Cap 6,273,927
Floor 63,436,373
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-Dec-98
Class A Certificate Factor
Current Class A Balance 63,436,373
Initial Class A Balance 85,200,000
Certificate Factor: 0.7445583665
Aggregate Contract Principal Balance 69,710,300
Class A Balance 63,436,373
Less: Prefunding Account 0
Receivable backed Certificates 63,436,373
A Investor Percentage 91.00%
Weighted Average Coupon 19.05%
Weighted Average Maturity 43.01
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-Dec-98
Beginning of Transaction 12/16/97
Payment Date 12/21/98
Month of Transaction 12
Period Ended 11/30/98
Collection Account
Beginning Balance 0
Collections during the Collections Period 3,036,668
Retransfer Amt received in respect of any Retransferred Contracts 0
Any income & gain from investments of funds in Collection Acct 17,144
Amts received from Transferor, Master Servicer or any Subservicer 0
Late Pmt Fees collected with respect to Contracts on Deposit 468
Supplemental Servicing Fee 0
Amounts deposited with respect to Retransferred Accounts 0
Scheduled Principal 1,168,222
Prepayments 573,161
Recoveries 408,280
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 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
Pmts to Master servicer of Insurance and 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
Remaining balance due to Investors 0
Spread Account
Beginning Balance 6,449,712
Interest Income 24,378
National Auto Finance 1998-1 Trust
Monthly Servicer Certificate
21-Dec-98
Number of loans currently owned by Trust 6,309
Initial Collateral Balance 85,200,000
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 85,200,000
Prior Class A Principal Arrearage 0
Current 1 Month 2 Months 3 Months
Prior Prior Prior
30+ Days Past Due 3,395,493 3,665,562 4,558,373 4,882,612
60+ Days Past Due 1,065,250 1,124,681 1,596,490 1,843,153
90+ Days Past Due 596,220 671,736 988,920 602,182
Delinquent (30+ days past due) 5,056,963 5,461,979 7,143,784 7,327,948
Current Month Repos 855,730 508,477 605,414 596,800
New over 90 Days 407,930 499,885 628,626 594,608
Defaults 1,263,660 1,008,362 1,234,041 1,191,408
Liquidated Contracts
Repos > 90 Days 251,007 18,089 290,047 399,611
Closed Repo's 612,017 619,187 613,944 203,555
Past Due > 120 Days 65,684 201,459 0 0
Chapter 13 Bankruptcy 69,601 35,493 0 0
Net Liquidated Accounts 998,309 874,227 903,991 603,166
Recoveries - net of expenses 408,280 527,911 571,116 235,486
Net Losses 590,029 346,316 332,875 367,680
ACPB 69,710,300 72,449,992 75,260,784 77,828,478
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
11/21/98 2,557,821
19,270,507
NATIONAL AUTO FINANCE COMPANY, INC.
as Master Servicer
Thomas Costanza 25-Feb-99
Vice President, CFO
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: November 30, 1998
