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 May 20, 1998
REVOLVING HOME EQUITY LOAN TRUST 1996-1
(Exact name of registrant as specified in Department of the
Treasury, Internal Revenue Service Form SS-4)
HOUSEHOLD FINANCE CORPORATION
(Servicer of the Trust)
(Exact name as specified in Servicer's charter)
Delaware 0-20909 Not Applicable
(State or other juris- (Commission File Number (IRS Employer
diction of incorporation of Registrant) Identification
of Master Servicer) Number of
Registrant)
2700 Sanders Road, Prospect Heights, Illinois 60070
(Address of principal executive offices of (Zip Code)
Master Servicer)
Servicer's telephone number, including area code 847/564-5000
Exhibit Index appears on page 3 <PAGE>
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99(a) Monthly Servicing Report to Trustee dated May
20, 1998 pursuant to Section 3.04(b) of the
Pooling and Servicing Agreement dated as of
May 1, 1996 (the "Pooling and Servicing
Agreement") among HFC Revolving Corporation,
as Seller, Household Finance Corporation, as
Servicer, and First National Bank of Chicago,
as Trustee, with respect to the Class A
Certificates, Series 1996-1.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Servicer has duly caused this report to be signed on
behalf of the Revolving Home Equity Loan Trust 1996-1 by the
undersigned hereunto duly authorized.
HOUSEHOLD FINANCE CORPORATION,
as Servicer of and on behalf of the
REVOLVING HOME EQUITY LOAN TRUST 1996-1
(Registrant)
By: /s/ J. W. Blenke
J. W. Blenke
Authorized Representative
Dated: May 26, 1998
- 2 -<PAGE>
EXHIBIT INDEX
Exhibit
Number Exhibit Page
4
99(a) Monthly Servicing Report to Trustee dated May 20, 1998
pursuant to Section 3.04(b) of the Pooling and Servicing
Agreement dated as of May 1, 1996 (the "Pooling and
Servicing Agreement") among HFC Revolving Corporation, as
Seller, Household Finance Corporation, as Servicer, and
First National Bank of Chicago, as Trustee, with respect to
the Class A Certificates, Series 1996-1.
- 3 -
HE96-1.8k
******************************************************************************
Household Finance Corporation
Household Revolving Home Equity Loan
Revolving Home Equity Loan Asset Backed Certificates - Series 1996-1
P & S Agreement Date: May 1, 1996
Original Settlement Date: May 23, 1996
Series Number of Class A-1 Certificates: 441919AJ6
Series Number of Class A-2 Certificates: N/A
Original Sale Balance: $819,278,000
******************************************************************************
Servicer Certificate (Page 1 of 3)
Distribution Date: 05/20/98
Investor Certificateholder Floating Allocation Percentage 96.08%
Investor Certificateholder Fixed Allocation Percentage 97.37%
Aggregate Amount of Collections 26,473,702.45
Aggregate Amount of Interest Collections 6,214,025.21
Aggregate Amount of Principal Collections 20,259,677.24
Class A Interest Collections 5,970,430.34
Class A Principal Collections 19,450,530.99
Seller Interest Collections 243,594.87
Seller Principal Collections 809,146.25
Weighted Average Loan Rate 13.52%
Net Loan Rate 12.52%
Weighted Average Maximum Loan Rate 18.59%
Class A-1 Certificate Rate 5.8563%
Maximum Investor Certificate Rate 12.5200%
Class A-1 Certificate Interest Distributed 2,442,781.67
Class A-1 Investor Certificate Interest Shortfall before Draw 0.00
Unpaid Class A-1 Certificate Interest Shortfall Received 0.00
Unpaid Class A-1 Certificate Interest Shortfall Remaining 0.00
Unpaid Class A-1 Carryover Interest Amount 0.00
Maximum Principal Dist. Amount (MPDA) 19,725,855.00
Alternative Principal Dist. Amount (APDA) 19,450,530.99
Rapid Amortization Period? (Y=1, N=0) 0.00
Scheduled Principal Distribution Amount (SPDA) 19,450,530.99
Principal allocable to Class A-1 19,450,530.99
SPDA deposited to Funding Account 0.00
Subsequent Funding Mortgage Loans Purchased in Period 0.00
Cumulative Subsequent Funding Mortgage Loans Purchased 100,781,997.58
Accelerated Principal Distribution Amount 0.00
APDA allocable to Class A-1 0.00
Reimbursement to Credit Enhancer 0.00
Spread Trigger hit? No
Reduction in Certificate Principal Balance due to Current Class A-1
Liquidation Loss Amount 692,518.94
Cumulative Investor Liquidation Loss Amount 692,518.94
Total Principal allocable to A-1 20,143,049.93
Beginning Class A-1 Certificate Principal Balance 500,548,645.63
Ending Class A-1 Certificate Principal Balance 480,405,595.70
Pool Factor (PF) 0.5863768
Retransfer Deposit Amount (non 2.07 transfers) 0.00
Servicing Fees Distributed 420,625.06
Beg. Accrued and Unpaid Inv. Servicing Fees 0.00
Accrued and Unpaid Inv. Servicing Fees Recv'd 0.00
End. Accrued and Unpaid Inv. Servicing Fees 0.00
Number of Mortgage Loans Retransferred pursuant to 2.07 0
Cumulative Number of Mortgage Loans Retransferred pursuant to 2.07 0
Mortgage Loans Retransferred pursuant to 2.07 ($) 0.00
Cumulative Mortgage Loans Retransferred pursuant to 2.07 ($) 0.00
Aggregate Investor Liquidation Loss Amount 692,518.94
Investor Loss Reduction Amount 0.00
Beginning Pool Balance 525,343,986.43
Ending Pool Balance 505,170,997.48
Beginning Invested Amount 504,750,072.63
Servicer Certificate (Page 2 of 3)
Distribution Date: 05/20/98
Ending Invested Amount 484,607,022.70
Beginning Seller Principal Balance 20,593,913.80
Ending Seller Principal Balance 20,563,974.78
Additional Balances 809,146.25
Beginning Funding Account Balance 0.00
Ending Funding Account Balance 0.00
Ending Funding Account Balance % (before any purchase of Subsequent Loans or
release to Cert 0.00%
Ending Funding Account Balance % (after purchase of Subsequent Loans or
release to Certs.) 0.00%
Principal Balance of Subsequent Funding Loans Purchased in Period $0.00
Principal Collections to purchase Additional Balances and/or paid to Cert$0.00
Excess Funding Amount $0.00
Beginning Spread Account Balance 2,100,714.00
Ending Spread Account Balance 2,100,714.00
Beginning Seller Interest 3.92%
Ending Seller's Interest 4.07%
Delinquency & REO Status
30 - 59 days (Del Stat 1)
No. of Accounts 1,045
Trust Balance 36,189,057.26
60 - 89 days (Del Stat 2)
No. of Accounts 254
Trust Balance 8,088,121.78
90+ (Del Stat 3+)
No. of Accounts 629
Trust Balance 19,767,079.70
270+ (Del Stat 9+)
No. of Accounts 279
Trust Balance 9,676,099.72
REO
No. of Accounts 70
Trust Balance 2,812,157.25
Rapid Amortization Event ? No
Failure to make payment within 5 Business Days of Required Date ? No
Failure to perform covenant relating to Trust's Security Interest ? No
Failure to perform other covenants as described in the Agreement ? No
Breach of Representation or Warranty ? No
Bankruptcy, Insolvency or Receivership relating to Seller ? No
Subject to Investment Company Act of 1940 Regulation ? No
Servicing Termination ? No
Aggregate of Credit Enhancement Draw Amounts exceed 1% of the Cut-off
Balance and Pre-Fun No
Event of Default ? No
Failure by Servicer to make payment within 5 Bus Days of Required Date? No
Failure by Servicer to perform covenant relating to Trust's Security
Interest ? No
Failure by Servicer to perform other covenants as described in the
Agreement? No
Bankruptcy, Insolvency or Receivership relating to Master Servicer ? No
Trigger Event ? No
Policy Fee Distributed to Credit Enhancer (Paid directly from HFC) N/A
Premium Distributed to Credit Enhancer 0.00
Amount Distributed to Seller 1,052,741.12
Master Servicer Credit Facility Amount 0.00
Guaranteed Principal Distribution Amount 0.00
Credit Enhancement Draw Amount 0.00
Spread Account Draw Amount 0.00
Capitalized Interest Account Draw 0.00
Amount re-imbursed to Credit Enhancer (5.01(a)(vi)) 0.00
Amount paid to Trustee 0.00
Cumulative Draw under Policy 0.00
Servicer Certificate (Page 3 of 3)
Distribution Date: 05/20/98
Net Yield 5.74%
Total Available Funds
Aggregate Amount of Collections 26,473,702.45
Deposit for principal not used to purchase subsequent loans 0.00
Interest Earnings on the Pre-Funding Account 0.00
Deposit from Capitalized Interest Account 0.00
Total 26,473,702.45
Application of Available Funds
Servicing Fee 420,625.06
Prinicpal and Interest to Class A-1 22,585,831.60
Seller's portion of Principal and Interest 1,052,741.12
Funds deposited into Funding Account (Net) 0.00
Funds deposited into Spread Account 0.00
Excess funds released to Seller 2,414,504.67
Total 26,473,702.45
OFFICERS'S CERTIFICATE
All computations reflected in this Servicer Certificate were
made in conformity with the Pooling and Servicing Agreement.
The attached Servicing Certificate is true and correct in all
material respects.
A Servicing Officer
<PAGE>
Statement to Certificateholders (Page 1 of 1)
Distribution Date: 05/20/98
INVESTOR CERTIFICATES DISTRIBUTION SUMMARY (PER $1000)
Class A Certificateholder Floating Allocation Percentage 96.0799%
Class A Certificateholder Fixed Allocation Percentage 97.3651%
Beginning Class A-1 Certificate Balance 500,548,645.63
Class A-1 Certificate Rate 5.856250%
Class A-1 Certificate Interest Distributed 2.981627
Class A-1 Certificate Interest Shortfall Distributed 0.000000
Remaining Unpaid Class A-1 Certificate Interest Shortfall 0.000000
Rapid Amortization Event ? No
Class A-1 Certificate Principal Distributed 24.586343
Maximum Principal Distribution Amount 24.077120
Scheduled Principal Distribution Amount (SPDA) 23.741063
Accelerated Principal Distribution Amount 0.000000
Aggregate Investor Liquidation Loss Amount Distributed 0.845280
Total Amount Distributed to Certificateholders 26.722691
Principal Collections deposited into Funding Account 0.00
Ending Funding Account Balance 0.00
Ending Class A-1 Certificate Balance 480,405,595.70
Class A-1 Factor 0.5863768
Pool Factor (PF) 0.5863768
Unreimbursed Liquidation Loss Amount $0
Accrued Interest on Unreimbursed Liquidation Loss Amount $0
Accrued & Unpaid Interest on Unreimbursed Liquidation Loss Amount $0
Class A Servicing Fee 420,625.06
Beginning Invested Amount 504,750,072.63
Ending Invested Amount 484,607,022.70
Beginning Pool Balance 525,343,986.43
Ending Pool Balance 505,170,997.48
Spread Account Draw Amount 0.00
Credit Enhancement Draw Amount 0.00
DELINQUENCY & REO STATUS
30 - 59 days (Del Stat 1)
No. of Accounts 1,045
Trust Balance 36,189,057.26
60 - 89 days (Del Stat 2)
No. of Accounts 254
Trust Balance 8,088,121.78
90+ (Del Stat 3+)
No. of Accounts 629
Trust Balance 19,767,079.70
REO
No. of Accounts 70
Trust Balance 2,812,157.25
Aggregate Liquidation Loss Amount for Liquidated Loans 560,261.86
Class A-1 Certificate Rate for Next Distribution Date To be updated
Amount of any Draws on the Policy 0.00
Subsequent Mortgage Loans
No. of Accounts 0.00
Trust Balance 0.00
Cumulative No. of Accounts 3,249
Cumulative Trust Balance 100,781,997.58
Retransferred Mortgage Loans pursuant to 2.07
Number of Mortgage Loans Retransferred pursuant to 2.07 0
Cumulative Number of Mortgage Loans Retransferred pursuant to 2.07 0
Mortgage Loans Retransferred pursuant to 2.07 ($) 0.00
Cumulative Mortgage Loans Retransferred pursuant to 2.07 ($) 0.00
