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): November 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 November 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 November 21, 1998.
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Nov-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 3,945,810 0 0 0 0
2 0 0 15,979 0 0 0 0
3 2,429,075 0 0 0 0 0 0 0
4 0 0 0 0 0 0 0 0
5 14,977 0 0 0 0 0 0 0
6 0 0 0 0 0 0 0 0
7 -777 0 0 0 0 0 777 0
8 0 0 0 0 0 0 0 0
9 -14,977 0 0 -15,979 0 0 30,957 0
10 -2,352,914 0 0 0 0 2,352,914 0 0
11 0 0 0 0 0 0 0 0
12 -75,384 0 0 0 0 75,384 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 -9,209 0 0 0 0
17 0 0 0 -19,875 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 0 0 0 0 0
29 0 0 0 0 0 0 0 0
30 0 0 0 3,916,726 0 2,428,298 31,733 0
31 0 0 0 0 0 2,428,298 0 0
1Beginning Account Balances
2Interest Income
Collection Account
3Lockbox Collections during the Collections Period
4Add: Retransfer Amt received in respect of any Retransferred Contracts
5Add: Any income and gain from investments of funds in the Collection Acct
6Add: Amounts received from Transferor, Master Servicer or Subservicer
7Less: Late Payment fees collected w/ respect to the Contracts on Deposit
8Less: Supplemental Servicing Fee
9Less: Any income and gain on investments of deposits in Collection Acct
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
16Less: Withdrawals from Spread Acct Mayer, Brown, Platt: Amendment expenses
17Less: Withdrawals from the Spread Account
18Add: Cross Collateralization from 95-1 Trust
19Add: Cross Collateralization from 98-1 Trust
20Add: Proceeds of any Contracts or Property
21Add: Any income & gain on investments of funds in the Certificate Acct
22Add: Amounts received from Certificate Insurer
23Add: Withdrawals from the Revolving Account or Pre-Funding Acct
24Less: Expenses of an Opinion of Counsel
25Less: Expenses of Master Servicer or Transferor
26Less: Payments to the Master servicer of Insurance & Liquidation Proceeds
27Less: Pmts to Transferor w/ respect to Retransferred Contracts or property
Pre-Funding Reserve Account
28Less: Amount in excess of Required Deposit
29Less: Amounts Distributed
30Ending Account Balances
31Available Amount to Certificate Holders
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Nov-98
Cert
Account Payment
Available Amount 2,428,298 0
Payments on Payment Date
(i) Servicing Fee (75,808) 75,808
NAFI Operating Depository Account
First Union National Bank, Charlotte, NC
Acct #2010000259454 - ABA 053000219
(ii) Trustee, Collateral Agent
Harris Trust and Savings Bank (735) 735
Trustee Fees
Monthly safekeeping and releases
(iiia) Class A Interest (219,028) 219,028
(iiib) Class A Principal (2,141,152) 2,141,152
(iv) Certificate Insurer (11,450) 11,450
Financial Security Assurance
Morgan Guaranty Trust
Acct #000-33-345 ABA 021-000-238
(v) Collateral Agent (Spread Account) 19,875 (19,875)
Harris Trust and Savings Bank
(vi) [Reserved] 0 0
(vii) Cross collateralization: Due to 95-1 0 0
Harris Trust and Savings Bank
1995-1 Certificate Account
(viii) Transfer to 98-1 Trust Certificate Acct 0 0
Harris Trust and Savings Bank
1998-1 Certificate Account
(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-Oct-98
NATIONAL AUTO FINANCE COMPANY, INC.
as Master Servicer
Thomas Costanza 03-Dec-98
Vice President, CFO
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Nov-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: 5,348,668 47,140,097 11.346%
1 Month Prior: 4,942,477 45,484,820 10.866%
Current: 3,535,016 43,131,906 8.196%
10.136%
Maximum Delinquency Ratio 8.25%
Monthly Annual
Gross Defaulted Contracts Default Default
Defaults ACPB Rate Rate
2 Months Prior: 854,360 47,971,014 1.781% 21.372%
1 Month Prior: 1,004,627 46,312,458 2.169% 26.031%
Current: 574,986 44,308,363 1.298% 15.572%
1.749% 20.992%
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: 387,201 47,971,014 0.807% 9.686%
1 Month Prior: 167,375 46,312,458 0.361% 4.337%
Current: 550,779 44,308,363 1.243% 14.917%
0.804% 9.646%
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-Nov-98
1 Month 2 Months
(B) Insurance Agreement Event of Defaults Previous Previous
Current: (yes/no) (yes/no)
Event of Default (Yes/No) no yes yes
(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: 5,348,668 47,140,097 11.346%
1 Month Prior: 4,942,477 45,484,820 10.866%
Current: 3,535,016 43,131,906 8.196%
10.136%
Maximum Delinquency Ratio 11.000%
(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: 854,360 47,971,014 1.781% 21.372%
1 Month Prior: 1,004,627 46,312,458 2.169% 26.031%
Current: 574,986 44,308,363 1.298% 15.572%
1.749% 20.992%
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-Nov-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: 387,201 47,971,014 0.807% 9.686%
1 Month Prior: 167,375 46,312,458 0.361% 4.337%
Current: 550,779 44,308,363 1.243% 14.917%
0.804% 9.646%
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-Nov-98
Class A Interest Schedule
Opening Class A Principal Balance 41,391,186
Class A Interest Rate 6.35%
30/360*Class A Interest Rate 0.53%
Current Class A Interest Distribution 219,028
Prior Class A Interest Arrearage 0
Class A Interest Due 219,028
Current Class A Interest Arrearage 0
Class A Principal Schedule
Opening Class A Principal Balance 41,391,186
Scheduled Principal 922,492
Prepayments 501,014
Liquidated Contracts 929,408
Less: Principal write-up adjustment 0
2,352,914
Retransfers 0
2,352,914
Class A Share - 91% 2,141,152
Remaining Revolving Account Balance 0
Principal due to Class A 2,141,152
Prepayment from Revolving Account 0
Prepayment From Pre-Funding Account 0
Prior Class A Arrearage 0
Class A Principal Due 2,141,152
Class A Principal Distribution 2,141,152
Current Class A Arrearage 0
Ending Class A Principal Balance after current Distribution 39,250,034
Servicing Fee Schedule
Beginning Collateral Balance 45,484,820
Annual Servicing Rate 2.00%
Prior Servicing Fee Arrearage 0
Current Servicer Fee 75,808
Servicer Fee Due 75,808
Servicer Fee Paid 75,808
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
Corporate Trust Fee-Legal Fees 0
Annual Administration Fee 735
Trustee Fee Due 735
Current Trustee Fee Arrearage 0
Certificate Insurer Schedule
Ending Class A Balance 39,250,034
Insurance Premium 0.350%
Insurance Premium Supplement 0.50%
Certificate Insurer Fee 11,448
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 with Release from Revolving Account 0
Ending Balance 0
Spread Account
Initial Collateral Balance 66,891,200
Opening Spread Account Balance 3,936,601
Less Interest Earned (15,979)
Opening Spread Account Balance 3,936,601
Required Balance Spread Account 0
Required Deposit to Spread Account (19,875)
Less: FSA Fee Arrearage (11,450)
Less: Class A Principal Arrearage (8,425)
Ending Spread Account Balance 3,916,726
Cap 0
Floor 39,250,034
The Floor Amount at any time will be equal to
the greater of (i) the outstanding Class A
Certificate Balance, and (ii) $100,000
If an insurance Agreement Event of Default has
occurred, there shall be no Spread Account Cap.
Insurance Agreement Events of Default
are not curable.
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Nov-98
Class A Certificate Factor
Current Class A Balance 39,250,034
Initial Class A Balance 66,891,200
Certificate Factor: 0.586774254
Aggregate Contract Principal Balance 43,131,906
Class A Balance 39,250,034
Less: Prefunding Account 0
Receivable backed Certificates 39,250,034
A Investor Percentage 91.00%
October 31, 1998
Weighted Average Coupon 19.09%
Weighted Average Maturity 38.14
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Nov-98
Beginning of Transaction 07/21/97
Payment Date 11/21/98
Month of Transaction 16
Period Ended 10/31/98
Collection Account
Beginning Balance 0.00
Collections during the Collections Period 2,429,074.81
Retransfer Amt received in respect of any Retransferred Contracts 0.00
Any income & gain from investments of funds in the Collection Acct 14,977.37
Amts received from Transferor, Master Servicer or Subservicer 0.00
Late Payment Fees collected w/ respect to the Contracts on Deposit 776.56
Supplemental Servicing Fee 0.00
Amounts deposited with respect to Retransferred Accounts 0.00
Scheduled Principal 922,492.23
Prepayments 501,014.34
Recoveries 378,628.88
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 3,936,601.14
Interest Income 15,979.37
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Nov-98
Number of loans currently owned by Trust 4,322
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 2,334,647 3,109,686 3,334,395 4,508,461
60+ Days Past Due 743,165 1,084,391 1,501,642 1,255,673
90+ Days Past Due 457,205 748,400 512,631 606,762
Delinquent (30+ days past due) 3,535,016 4,942,477 5,348,668 6,370,895
Current Month Repos 309,640 513,435 360,119 146,921
New over 90 Days 265,346 491,192 494,241 409,263
Defaults 574,986 1,004,627 854,360 556,184
Liquidated Contracts
Repos > 90 Days 72,561 204,354 324,508 130,498
Closed Repo's 534,895 252,473 191,076 257,896
Past Due > 120 Days 253,647 12,765 0 57,101
Chapter 13 Bankruptcy 68,305 0 0 334,063
Net Liquidated Accounts 929,408 469,593 515,584 779,558
Recoveries - net of expenses 378,629 302,218 128,382 146,722
Net Losses 550,779 167,375 387,201 632,836
ACPB 43,131,906 45,484,820 47,140,097 48,801,932
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
03/21/98 2,070,659
04/21/98 2,382,139
05/21/98 2,109,578
06/21/98 2,113,886
07/21/98 1,520,708
08/21/98 1,870,450
09/21/98 1,512,270
10/21/98 1,506,302
25,500,014
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: November 30, 1998
