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): January 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 January 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 January 21, 1998.
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Jan-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 2,274,301 0 0 0 0
2 0 0 10,465 0 0 0 0
3 2,612,573 0 0 0 0 0 0 0
4 0 0 0 0 0 0 0 0
5 13,140 0 0 0 0 0 0 0
6 0 0 0 0 0 0 0 0
7 -5,086 0 0 0 0 0 5,086 0
8 0 0 0 0 0 0 0 0
9 -13,140 0 0 -10,465 0 0 23,605 0
10 -2,090,481 0 0 0 0 2,090,481 0 0
11 0 0 0 0 0 0 0 0
12 -517,006 0 0 0 0 517,006 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 0 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 2,274,301 0 2,607,487 28,691 0
29 0 0 0 0 0 2,607,487 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 any 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
17Less: Withdrawals from 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 with 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
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Jan-98
Class A Certificate Factor
Current Class A Balance 58,433,866
Initial Class A Balance 66,891,200
Certificate Factor: 0.873565813
Aggregate Contract Principal Balance 64,213,039
Class A Balance 58,433,866
Less: Prefunding Account 0
Receivable backed Certificates 58,433,866
A Investor Percentage 91.00%
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Jan-98
Beginning of Transaction 07/21/97
Payment Date 01/21/98
Month of Transaction 6
Period Ended 12/31/97
Collection Account
Beginning Balance 0.00
Collections during the Collections Period 2,612,573.00
Retransfer Amt received in respect of any Retransferred Contracts 0.00
Any income & gain from investments of funds in the Collection Acct 13,139.84
Amts received from Transferor, Master Servicer or Subservicer 0.00
Late Payment Fees collected w/ respect to the Contracts on Deposit 5,086.29
Supplemental Servicing Fee 0.00
Amounts deposited with respect to Retransferred Accounts 0.00
Scheduled Principal 891,624.17
Prepayments 462,090.77
Recoveries 279,594.36
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 Proceed 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 2,274,300.80
Interest Income 10,465.34
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Jan-98
Number of loans currently owned by Trust 5,643
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 3,091,177 3,535,806 2,637,619 3,021,483
60+ Days Past Due 1,324,351 1,080,209 1,061,407 900,198
90+ Days Past Due 1,006,873 926,563 634,941 464,470
Delinquent (30+ days past due) 5,422,401 5,542,578 4,333,966 4,386,150
Current Month Repos 578,924 463,664 462,158 686,845
New over 90 Days 451,670 468,843 378,767 464,470
Defaults 1,030,594 932,507 840,925 1,151,315
Liquidated Contracts
Repos > 90 Days 203,698 16,061 3,531 0
Closed Repo's 533,067 465,183 209,828 120,888
Past Due > 120 Days 0 0 0 0
Chapter 13 Bankruptcy 0 0 0 0
Net Liquidated Accounts 736,766 481,244 213,359 120,888
Recoveries - net of expenses 279,594 275,617 142,981 87,673
Net Losses 457,171 205,627 70,378 33,215
ACPB 64,213,039 66,303,520 68,177,182 62,453,377
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
6,554,997
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Jan-98
Class A Interest Schedule
Opening Class A Principal Balance 60,336,203
Class A Interest Rate 6.35%
30/360*Class A Interest Rate 0.53%
Current Class A Interest Distribution 319,279
Prior Class A Interest Arrearage 0
Class A Interest Due 319,279
Current Class A Interest Arrearage 0
Class A Principal Schedule
Opening Class A Principal Balance 60,336,203
Scheduled Principal 891,624
Prepayments 462,091
Liquidated Contracts 736,766
Less: Principal write-up adjustment 0
2,090,481
Retransfers 0
2,090,481
Class A Share - 91% 1,902,337
Remaining Prefunding Account Balance 0
Principal due to Class A 1,902,337
Prepayment from Revolving Account 0
Prepayment From Pre-Funding Account 0
Prior Class A Arrearage 0
Class A Principal Due 1,902,337
Class A Principal Distribution 1,902,337
Current Class A Arrearage 0
Ending Class A Principal Balance after current Distribution 58,433,866
Servicing Fee Schedule
Beginning Collateral Balance 66,303,520
Annual Servicing Rate 2.00%
Prior Servicing Fee Arrearage 0
Current Servicer Fee 110,506
Servicer Fee Due 110,506
Servicer Fee Paid 110,506
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
Current Trustee Fee Arrearage 0
Certificate Insurer Schedule
Ending Class A Balance 58,433,866
Insurance Premium 0.350%
Insurance Premium Supplement 0.50%
Certificate Insurer Fee 17,043
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 2,274,301
Less Interest Earned (10,465)
Opening Spread Account Balance 2,274,301
Required Balance Spread Account 2,274,301
Required Deposit to Spread Account 0
Ending Spread Account Balance 2,274,301
Cap 2,274,301
Floor 58,433,866
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-Jan-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: 4,333,966 68,177,182 6.357%
1 Month Prior: 5,542,578 66,303,520 8.359%
Current: 5,422,401 64,213,039 8.444%
7.720%
Maximum Delinquency Ratio 8.25%
Monthly Annual
Gross Defaulted Contracts Default Default
Defaults ACPB Rate Rate
2 Months Prior: 840,925 65,315,280 1.29% 15.45%
1 Month Prior: 932,507 67,240,351 1.39% 16.64%
Current: 1,030,594 65,258,279 1.58% 18.95%
1.418% 17.014%
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: 70,378 65,315,280 0.11% 1.29%
1 Month Prior: 205,627 67,240,351 0.31% 3.67%
Current: 457,171 65,258,279 0.70% 8.41%
0.371% 4.456%
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-Jan-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: 4,333,966 68,177,182 6.36%
1 Month Prior: 5,542,578 66,303,520 8.36%
Current: 5,422,401 64,213,039 8.44%
7.72%
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: 840,925 65,315,280 1.29% 15.45%
1 Month Prior: 932,507 67,240,351 1.39% 16.64%
Current: 1,030,594 65,258,279 1.58% 18.95%
1.42% 17.01%
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-Jan-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: 70,378 65,315,280 0.108% 1.293%
1 Month Prior: 205,627 67,240,351 0.306% 3.670%
Current: 457,171 65,258,279 0.701% 8.407%
0.371% 4.456%
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-Jan-98
Cert
Account Payment
Available Amount 2,607,487 0
Payments on Payment Date
(i) Servicing Fee (110,506) 110,506
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 (319,279) 319,279
(iiib) Class A Principal (1,902,337) 1,902,337
(iv) Certificate Insurer (17,043) 17,043
Financial Security Assurance
Morgan Guaranty Trust
Acct #000-33-345 ABA 021-000-238
(v) Collateral Agent (Spread Account) (0) 0
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 (258,321) 258,321
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/ Keith B. Stein
Secretary
Dated: December 31, 1997
