<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
450 Fifth Street, NW
Washington, D.C. 20549
FORM 10-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________ to __________
Commission File No. 33-79544-07
CORESTATES HOME EQUITY LOAN 19965-1
(Exact name of Registrant as specified in its Charter)
<TABLE>
<S> <C>
New York 36-7148609
- ---------------------------- ------------------------------
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or Number of Registrant)
Organization of Registrant)
CoreStates Bank, N.A.
1339 Chestnut Street
Philadelphia, PA 19l07
Attention: Barbara M. Rothenberg, Counsel
- --------------------------------------------------------------------------------
(Address of principal executive offices of (Zip Code)
Registrant)
</TABLE>
Registrant's telephone number, including area code 215 973-3801
-------------
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of cash exchange on which
registered
None.
Securities registered pursuant to Section 12(g) of the Act:
None.
Total Number of
Sequentially
Numbered Pages 13
Exhibit Index
Appears on Page 7
<PAGE> 2
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- -----
Indicate by check mark if disclosure of delinquent filers pursuant to item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of the Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K [] Not applicable.
State the aggregate market value of the voting stock held by non-affiliates of
the Registrant. The aggregate market value shall be computed by reference to
the price at which the stock was sold, or the average bid and asked prices of
such stock, as of a specified date withi 60 days prior to the date of filing.
Not applicable.
Documents incorporated by reference.
None.
2
<PAGE> 3
INTRODUCTORY NOTE
The Registrant, CoreStates Home Equity Loan Trust 1996-1 (the "Trust"),
is a trust formed pursuant to a Pooling and Servicing Agreement dated as of May
1, 1996 (the "Pooling and Servicing Agreement"), by and among New Jersey
National Bank and CoreStates Bank, N.A., as seller (the "Sellers"), CoreStates
Bank, N.A., as master servicer (the "Master Servicer"), and The First National
Bank of Chicago, as trustee (the "Trustee"). The Trust, which is the issuer of
Home Equity Loan Certificates became subject to the reporting requirements
under Section 13 of the Securities Exchange Act of 1934 (the "Exchange Act")
when the Registration Statement (No. 33-79544-07) on Form S-3 (the "Registration
Statement"), filed by the Sellers on behalf of the Trust, became effective.
Each Certificate evidences a fractional undivided ownership interests in
the Trust. The property of the Trust consists of a pool of fixed-rate,
closed-end, simple interest, home equity mortgage loans (the "Home Equity
Mortgage Loans") originated or acquired by the Sellers which are secured by
mortgages, deeds of trust or other instruments creating a first or more junior
lien on one- to four-family dwellings and certain moneys received thereunder on
and after May 1, 1996, a Collection Account, a Reserve Account and a Yield
Supplement Account and certain other assets. The Seller transferred Home Equity
Mortgage Loans with an aggregate principal balance of $171,326,953.09 to the
Trust on May 30, 1996.
The Certificates consist of four classes of senior certificates
(together, the "Class A Certificates") and one class of subordinated
certificates (the "Class R Certificates"). The Class A Certificates, in an
aggregate principal amount of $171,326,000 were offered to the public pursuant
to a prospectus, dated May 22, 1996 (the "Prospectus").
The Trust filed an Application for an Exemptive Order (the
"Application") with the Securities and Exchange Commission (the "Commission")
which was approved on February 25, 1994. It permits the Trust to satisfy its
reporting requirements under Section 13 of the Exchange Act by filing each
monthly servicing report, as described in Section 5.02 of the Pooling and
Servicing Agreement, as an exhibit to a Current Report on Form 8-K. The Trust
is filing this Current Report on Form 8-K pursuant to such approved application.
3
<PAGE> 4
Part I
Item 1. Business.
Not Applicable.
Item 2. Properties.
Not Applicable.
Item 3. Legal Proceedings.
The Master Servicer is not aware of any material pending legal
proceedings involving either the Registrant, the Trustee, the
Sellers or the Master Servicer with respect to the
Certificates or the Registrant's property.
Item 4. Submission of Matters to a Vote of Security Holders.
No vote or consent of the holders of the Certificates (the
"Certificateholders") was solicited for any purpose during the
year ended December 31, 1996.
Part II
Item 5. Market for Registrant's Common Equity and Related Stockholder Matters.
To the best knowledge of the Master Servicer, there is no
established public trading market for the Certificates. As of
the date hereof, Cede & Co., the nominee of The Depository
Trust Company ("DTC"), was the only holder of record of the
Class A Certificates, Class A-1 Certificates, Class A-2
Certificates, Class A-3 Certificates and Class A-4
Certificates. DTC holds the Certificates for the accounts of
others.
Item 6. Selected Financial Data.
Not Applicable.
Item 7. Management's Discussion and Analysis of Financial Condition and Results
of Operation.
Not Applicable.
Item 8. Financial Statements and Supplementary Data.
Not Applicable.
Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.
None.
4
<PAGE> 5
Part III
Item 10. Directors and Executive Officers of the Registrant.
Not Applicable.
Item 11. Executive Compensation.
Not Applicable.
Item 12. Security Ownership of Certain Beneficial Owners and
Management.
The Master Servicer is not aware of any Schedule 13D or 13G
filed with the Securities and Exchange Commission in respect
of the Certificates.
Item 13. Certain Relationships and Related Transactions.
None or Not Applicable.
Part IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form
8-K.
(a) The following documents are filed as part of the
report
(1) Financial Statements
Not Applicable.
(2) Financial Statement Schedules
Not Applicable.
(b) Current Reports on Form 8-K containing the Monthly
Servicing Reports for the periods ending October 31,
1996, November 31, 1996 were filed by the Registrant
during the quarter ended December 31, 1996.
(c) Exhibits.
25 Power of Attorney of The First National Bank
of Chicago.*
28.1 Annual Statement to Certificateholders for
the period ended December 31, 1996.
28.2 Independent Public Accountant's Report
- --------------------------
*Previously filed as an exhibit to Registrant's Current Report on Form 8-K
dated June 20, 1996 and incorporated herein by reference.
5
<PAGE> 6
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
CORESTATES HOME EQUITY TRUST
(Registrant)
Date: October 25, 1997 By: /s/ Barbara M. Rothenberg
--------------------------------
Barbara M. Rothenberg
Attorney-in-Fact
6
<PAGE> 7
EXHIBIT INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C>
(25) Power of Attorney of The First
National Bank of Chicago*
(28.1) Annual Statement to Certificateholders
for the period ended December 31, 1996.
(28.2) Independent Public Accountant's
Report.
</TABLE>
- --------------------------
*Previously filed as an exhibit to Registrant's Current Report on Form 8-K
dated June 20, 1996 and incorporated herein by reference.
7
<PAGE> 1
EXHIBIT 28.1
CORESTATES FINANCIAL CORP Page 1
YEAR END SERVICING REPORT - HOME EQUITY TRUST 1996-1
Due Period: January 1, 1996 through December 31, 1996
<TABLE>
<CAPTION>
A. ORIGINAL DEAL PARAMETER INPUTS
- --------------------------------------------------------------
<S> <C>
(A) Original Total Portfolio $171,326,953.09
(B) Original Total Class A Certificate Balance $171,326,000.00
(C) Original Class A-1 Certificate Balance $ 90,000,000.00
(D) Class A-1 Certificate Rate 6.20%
(E) Original Class A-2 Certificate Balance $ 27,600,000.00
(F) Class A-2 Certificate Rate 6.75%
(G) Original Class A-3 Certificate Balance $ 41,000,000.00
(H) Class A-3 Certificate Rate 7.00%
(I) Original Class A-4 Certificate Balance $ 12,726,000.00
(J) Class A-4 Certificate Rate 7.00%
(K) Servicing Fee Rate 0.75%
(L) Original Weighted Average Coupon (WAC) 8.36%
(M) Original Weighted Average Remaining Maturity (WAM) 152.99 months
(N) Number of Contracts 3,970
(O) Original Yield Supplement Account Amount $ 77,567.54
(P) Reserve Account
(i) Initial Reserve Account Deposit Amount Percentage 8.75%
(ii) Initial Reserve Account Deposit Amount $ 14,991,108.40
(iii) Initial Reserve Account Required Amount Percentage 8.75%
(iv) Initial Reserve Account Required Amount $ 14,991,108.40
B. INPUTS FROM BEGINNING YEAR SERVICER REPORT
- ------------------------------------------------------------------------------
(A) Total Portfolio Outstanding $171,326,953.09
(B) Total Portfolio Pool Factor 1.0000000
(C) Total Class A Certificate Balance (after reserve account releases) $171,326,000.00
(D) Total Class A Certificate Factor (after reserve account releases) 1.0000000
(E) Class A-1 Certificate Balance (after reserve account releases) $ 90,000,000.00
(F) Class A-1 Principal Factor (after reserve account releases) 1.0000000
(G) Class A-2 Certificate Balance (after reserve account releases) $ 27,600,000.00
(H) Class A-2 Principal Factor (after reserve acount releases) 1.0000000
(I) Class A-3 Certificate Balance (after reserve account releases) $ 41,000,000.00
(J) Class A-3 Principal Factor (after reserve acount releases) 1.0000000
(K) Class A-4 Certificate Balance (after reserve account releases) $ 12,726,000.00
(L) Class A-4 Principal Factor (after reserve acount releases) 1.0000000
(M) Reserve Account Balance $ 14,991,108.40
(N) Yield Supplement Account Balance $ 77,567.54
(O) Cumulative Net Losses for All Prior Periods $ 0.00
(P) Weighted Average Coupon of Remaining Portfolio (WAC) 8.36%
(Q) Weighted Average Remaining Maturity of Remaining Portfolio (WAM) 152.99 months
(R) Number of Contracts 3,970
C. INPUTS FROM THE MAINFRAME
- ----------------------------------------------------
(A) Ending Total Portfolio Outstanding $151,532,905.46
(B) Ending Total Portfolio Pool Factor 0.8844662
(C) Ending Total Class A Certificate Balance (prior to reserve account releases) $142,237,465.14
(D) Ending Total Class A Certificate Balance (after reserve account releases) $140,909,681.25
(E) Ending Total Class A Certificate Factor (after reserve account releases) 0.8224652
(F) Ending Class A-1 Certificate Balance (prior to reserve account releases) $ 60,911,465.14
(G) Ending Class A-1 Certificate Balance (after reserve account releases) $ 59,583,681.25
(H) Ending Class A-1 Principal Factor (after reserve account releases) 0.6620409
(I) Ending Class A-2 Certificate Balance (prior to reserve account releases) $ 27,600,000.00
(J) Ending Class A-2 Certificate Balance (after reserve account releases) $ 27,600,000.00
(K) Ending Class A-2 Principal Factor (after reserve account releases) 1.0000000
(L) Ending Class A-3 Certificate Balance (prior to reserve account releases) $ 41,000,000.00
(M) Ending Class A-3 Certificate Balance (after reserve account releases) $ 41,000,000.00
(N) Ending Class A-3 Principal Factor (after reserve account releases) 1.0000000
(O) Ending Class A-4 Certificate Balance (prior to reserve account releases) $ 12,726,000.00
(P) Ending Class A-4 Certificate Balance (after reserve account releases) $ 12,726,000.00
(Q) Ending Class A-4 Principal Factor (after reserve account releases) 1.0000000
(R) Simple Interest Mortgage Loans
(i) Principal Reduction of Mortgage Loans $ 19,794,047.63
(a) Principal Payments Received $ 19,769,993.37
(ii) Interest Payments Received $ 9,119,173.70
(iii) Repurchased Mortgage Loans Principal $ 0.00
(iv) Repurchased Mortgage Loans Interest $ 0.00
(S) Weighted Average Coupon of Remaining Portfolio (WAC) 8.34%
(T) Weighted Average Remaining Maturity of Remaining Portfolio (WAM) 145.42 months
(U) Remaining Number of Mortgage Loans 3,623
(V) Number of Repurchased Mortgage Loans 0
</TABLE>
<PAGE> 2
CORESTATES FINANCIAL CORP Page 2
YEAR END SERVICING REPORT - HOME EQUITY TRUST 1996-1
Due Period: January 1, 1996 through December 31, 1996
<TABLE>
<CAPTION>
C. INPUTS FROM THE MAINFRAME (cont.)
- ----------------------------------------------------
Contracts Amount
(T) Delinquent Mortgage Loans # % $ %
----------------------------------------------------
<S> <C> <C> <C> <C>
(i) 30-59 Days Delinquent 12 0.33% $500,586.78 0.33%
(ii) 60-89 Days Delinquent 8 0.22% $257,902.85 0.17%
(iii) 90 Days or More Delinquent 1 0.03% $107,838.69 0.07%
(iv) Real Estate Owned 0 0.00% $0.00 0.00%
D. INPUTS DERIVED FROM OTHER SOURCES
- ----------------------------------------------------
(A) Collection Account Investment Income $26,976.95
(B) Reserve Account Investment Income $305,929.56
(C) Liquidated Mortgage Loans
(i) Beginning Gross Principal of Charged-Off Mortgage Loans $0.00
(ii) Liquidation Proceeds & Recoveries Received during the Due Period $0.00
(iii) Liquidation Expenses $0.00
(iv) Net Liquidation Proceeds and Recoveries on Liquidated Mortgage Loans $0.00
(v) Ending Gross Principal of Charged-Off Mortgage Loans $24,054.26
(D) Principal Balance of Newly Charged-Off Loans during Due Period $24,054.26
(E) Number of Mortgage Loans Charged-Off during Due Period 1
I. COLLECTIONS
- -------------------------
(A) Principal Payments Received $19,769,993.37
(B) Interest Payments Received $9,119,173.70
(C) Aggregate Net Liquidation Proceeds Received $0.00
(D) Aggregate Insurance Proceeds Received $0.00
(E) Aggregate Purchase Price of Home Equity Loans Repurchased from Trust $0.00
(F) Interest on Repurchased Home Equity Loans $0.00
---------------
(G) Total Collections $28,889,167.07
(H) Total Principal Collections $19,769,993.37
(I) Available Payment Amount $28,074,804.49
(J) Reserve Account Draw for Class A Formula Amount $0.00
(K) Total Amount Distibuted to Class A Certificateholders $28,074,804.49
(L) Yield Supplement Deposit Amount $7,928.83
---------------
(M) Total Collection Account Amount Less Servicing Fee $28,082,733.32
II. DISTRIBUTIONS
- ----------------------------
(A) Servicing Fee $814,362.58
(B) Class A-1 Monthly Interest Payment (including Amount from Yield
Supplement Withdrawals) $2,945,963.91
(C) Monthly Principal to Class A-1 $19,794,047.63
(D) Class A-2 Monthly Interest Payment (including Amount from Yield
Supplement Withdrawals) $1,164,375.00
(E) Monthly Principal to Class A-2 $0.00
(F) Class A-3 Monthly Interest Payment (including Amount from Yield
Supplement Withdrawals) $1,793,750.02
(G) Monthly Principal to Class A-3 $0.00
(H) Class A-4 Monthly Interest Payment (including Amount from Yield
Supplement Withdrawals) $556,762.50
(I) Monthly Principal to Class A-4 $0.00
(J) Deposit to Reserve Account to Maintain Required Amount $0.00
---------------
(K) Amount Distributed from Collection Account $26,254,899.06
(L) Excess Collections -- Amount Distributed to Class R Certificateholders $1,819,905.43
(M) Additional Monthly Class A Principal Amount Paid from Reserve Account $10,622,271.12
(N) Release of Reserve Account Amount to Class R Certificatholders $0.00
(O) Yield Supplement Withdrawal Amount Included in the Distribution to Class A
Certificateholders $0.00
(P) Yield Supplement Deposit Amount Paid to Seller $7,928.83
(Q) Class A-1 Pass-Through Rate 6.2000000%
(R) Class A-2 Pass-Through Rate 6.7500000%
(S) Class A-3 Pass-Through Rate 7.0000000%
(T) Class A-4 Pass-Through Rate 7.0000000%
</TABLE>
<PAGE> 3
CORESTATES FINANCIAL CORP Page 3
YEAR END SERVICING REPORT - HOME EQUITY TRUST 1996-1
Due Period: January 1, 1996 through December 31, 1996
<TABLE>
<CAPTION>
<S> <C>
III. POOL BALANCES AND PORTFOLIO INFORMATION
- --------------------------------------------------------------------------------
(A) Beginning Balances and Principal Factors
(i) Total Pool Balance $171,326,953.09
(ii) Total Pool Factor 1.0000000
(iii) Total Class A Certificate Balance $171,326,000.00
(iv) Total Class A Pool Factor 1.0000000
(v) Class A-1 Certificate Balance $90,000,000.00
(vi) Class A-1 Principal Factor 1.0000000
(vii) Class A-2 Certificate Balance $27,600,000.00
(viii) Class A-2 Principal Factor 1.0000000
(ix) Class A-3 Certificate Balance $41,000,000.00
(x) Class A-3 Principal Factor 1.0000000
(xi) Class A-4 Certificate Balance $12,726,000.00
(xii) Class A-4 Principal Factor 1.0000000
(B) Ending Balances and Principal Factors
(i) Total Pool Balance $151,532,905.46
(ii) Total Pool Factor 0.8844662
(iii) Total Class A Certificate Balance $140,909,681.25
(iv) Total Class A Pool Factor 0.8224652
(v) Class A-1 Certificate Balance $59,583,681.25
(vi) Class A-1 Principal Factor 0.6620409
(vii) Class A-2 Certificate Balance $27,600,000.00
(viii) Class A-2 Principal Factor 1.0000000
(ix) Class A-3 Certificate Balance $41,000,000.00
(x) Class A-3 Principal Factor 1.0000000
(xi) Class A-4 Certificate Balance $12,726,000.00
(xii) Class A-4 Principal Factor 1.0000000
(C) Beginning of Period Portfolio Information
(i) Weighted Average Coupon (WAC) 8.36%
(ii) Weighted Average Remaining Maturity (WAM) 152.99 months
(iii) Remaining Number of Contracts 3,970
(D) End of Period Portfolio Information
(i) Weighted Average Coupon (WAC) 8.34%
(ii) Weighted Average Remaining Maturity (WAM) 145.42 months
(iii) Remaining Number of Contracts 3,623
IV. RECONCILIATION OF RESERVE ACCOUNT
- --------------------------------------------------------------------
(A) Beginning Reserve Account Balance $14,991,108.40
(B) Reserve Account Draw for Class A Formula Amount $0.00
------------------
(C) Reserve Account Balance Prior to Release or Deposits $14,991,108.40
(D) Reserve Account Required Amount (See Reduction Tests in VII) $4,368,837.28
(E) Amount Necessary to Reach Reserve Account Required Amount ($10,622,271.12)
(F) Deposit or (Release) to Reserve Account to Maintain Required Amount ($10,622,271.12)
(G) Excess Collections over Reserve Account Required Amount $10,622,271.12
(H) Release of Reserve Account Amount to Class A Principal Amount $10,622,271.12
(I) Release of Reserve Account Amount to Class R Certificateholders $0.00
(J) Ending Reserve Account Balance $4,368,837.28
V. RECONCILIATION OF YIELD SUPPLEMENT ACCOUNT
- ------------------------------------------------------------------------------
(A) Beginning Yield Supplement Account Balance $77,567.54
(B) Required Monthly Interest Added to YSA Balance $1,226.33
(C) YSA Balance Including Required Monthly Interest $78,793.87
(D) Yield Supplement Deposit Amount $7,928.83
(E) Yield Supplement Account Balance after Deposit to Collection Account $70,865.04
(F) Releases from Yield Supplement Account Paid to the Seller $2,409.00
(G) Ending Yield Supplement Account Balance $68,456.04
(H) Yield Supplement Deposit Amount $7,928.83
(I) Yield Supplement Withdrawal Amount Paid to Class A Certificateholders $0.00
(J) Yield Supplement Deposit Amount Paid to Seller $7,928.83
</TABLE>
<PAGE> 4
CORESTATES FINANCIAL CORP Page 4
YEAR END SERVICING REPORT - HOME EQUITY TRUST 1996-1
Due Period: January 1, 1996 through December 31, 1996
<TABLE>
<CAPTION>
VI. NET LOSS AND DELINQUENCY ACCOUNT ACTIVITY
- ---------------------------------------------------------------------------------
<S> <C>
(A) Aggregate Net Losses for Due Period $24,054.26
(B) Liquidated Mortgage Loans
(i) Gross Principal of Charged-Off Mortgage Loans $0.00
(ii) Net Liquidation Proceeds and Recoveries on Liquidated Mortgage Loans $0.00
(C) Cumulative Net Losses for all Periods $24,054.26
<CAPTION>
(D) Delinquent Mortgage Loans Contracts Amount
# % $ %
--------------------------------------------------------------
<S> <C> <C> <C> <C>
(i) 30-59 Days Delinquent 12 0.33% $500,586.78 0.33%
(ii) 60-89 Days Delinquent 8 0.22% $257,902.85 0.17%
(iii) 90 Days or More Delinquent 1 0.03% $107,838.69 0.07%
(iv) Real Estate Owned 0 0.00% $0.00 0.00%
VII. TESTS FOR RESERVE ACCOUNT REQUIRED AMOUNT and RELEASES
- -------------------------------------------------------------
(A) Reserve Account Required Amount $4,368,837.28
Lesser of -----
(i) the Class A Certificate Balance $142,237,465.14
AND
(ii) Greater of --- a.) specified reserve requirement $4,368,837.28
b.) if Reserve Account Balance + OC Amount
less than 8.75% of Orig. Bal, then
Initial Reserve Amount - OC, else $0 $0.00
c.) 1.0% x original pool principal balance $1,713,269.53
(B) 60-Day Delinquency Percentage
(i) Collection Period 3 Months Preceding the Payment Date 0.15%
(ii) Collection Period 2 Months Preceding the Payment Date 0.14%
(iii) Collection Period Preceding the Payment Date 0.24%
(iv) Three Month Average (Avg(i,ii,iii)) NOT to Exceed 2.00% 0.17%
(C) Percentage of Net Losses from Cut-Off Date to Original Pool Balance NOT
to equal or exceed 2.925% 0.01%
</TABLE>
<TABLE>
<CAPTION>
VIII. INFORMATION PER SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT
- --------------------------------------------------------------------------------------
Total Amount Per $1000
-------------------------------
<S> <C> <C>
(A) Principal Payments to Class A Certificateholders for Current Payment Date.
(i) Class A-1 Monthly Principal Remittance Amount $19,794,047.63 $219.93
a.) Basic Principal Amount $19,794,047.63 $219.93
b.) Class A-1 Carry-Forward Amount
i.) Interest and Principal Due from Previous Payment Dates $0.00 $0.00
ii.) Interest Payable on the Interest Portion
of Class A-1 Carry-Forward Amount $0.00 $0.00
(ii) Additional Class A-1 Principal Amount $10,622,271.12 $118.03
(iii) Class A-2 Monthly Principal Remittance Amount $0.00 $0.00
a.) Basic Principal Amount $0.00 $0.00
b.) Class A-2 Carry-Forward Amount
i.) Interest and Principal Due from Previous Payment Dates $0.00 $0.00
ii.) Interest Payable on the Interest Portion
of Class A-2 Carry-Forward Amount $0.00 $0.00
(iv) Additional Class A-2 Principal Amount $0.00 $0.00
(v) Class A-3 Monthly Principal Remittance Amount $0.00 $0.00
a.) Basic Principal Amount $0.00 $0.00
b.) Class A-3 Carry-Forward Amount
i.) Interest and Principal Due from Previous Payment Dates $0.00 $0.00
ii.) Interest Payable on the Interest Portion
of Class A-3 Carry-Forward Amount $0.00 $0.00
(vi) Additional Class A-3 Principal Amount $0.00 $0.00
(vii) Class A-4 Monthly Principal Remittance Amount $0.00 $0.00
a.) Basic Principal Amount $0.00 $0.00
b.) Class A-4 Carry-Forward Amount
i.) Interest and Principal Due from Previous Payment Dates $0.00 $0.00
ii.) Interest Payable on the Interest Portion
of Class A-4 Carry-Forward Amount $0.00 $0.00
(viii) Additional Class A-4 Principal Amount $0.00 $0.00
(B) Interest Payments to Class A Certificateholders for Current Payment Date.
(i) Class A Monthly Interest Remittance Amount $6,460,851.43 $37.71
(a) Class A-1 Monthly Interest Remittance Amount $2,945,963.91 $32.73
(b) Class A-2 Monthly Interest Remittance Amount $1,164,375.00 $42.19
(c) Class A-3 Monthly Interest Remittance Amount $1,793,750.02 $43.75
(d) Class A-4 Monthly Interest Remittance Amount $556,762.50 $43.75
(ii) Yield Supplement Deposit Amount $7,928.83 $0.05
(iii) Yield Supplement Withdrawal Amount $0.00 $0.00
(a) Yield Supplement Withdrawal Amount Included in the Distribution to Class A-1
Certificateholders $0.00 $0.00
(b) Yield Supplement Withdrawal Amount Included in the Distribution to Class A-2
Certificateholders $0.00 $0.00
(c) Yield Supplement Withdrawal Amount Included in the Distribution to Class A-3
Certificateholders $0.00 $0.00
(d) Yield Supplement Withdrawal Amount Included in the Distribution to Class A-4
Certificateholders $0.00 $0.00
</TABLE>
<PAGE> 5
CORESTATES FINANCIAL CORP Page 5
YEAR END SERVICING REPORT - HOME EQUITY TRUST 1996-1
Due Period: January 1, 1996 through December 31, 1996
<TABLE>
<CAPTION>
VIII. INFORMATION PER SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT (cont.)
- ----------------------------------------------------------------------------------------------------------------------------------
(C) Class A Certificate Balance and Class A Principal Factor after Distribution
of Principal.
(i) Class A-1 Certificate Balance $59,583,681.25 $662.04
(ii) Class A-1 Principal Factor 0.6620409
(iii) Class A-2 Certificate Balance $27,600,000.00 $1,000.00
(iv) Class A-2 Principal Factor 1.0000000
(v) Class A-3 Certificate Balance $41,000,000.00 $1,000.00
(vi) Class A-3 Principal Factor 1.0000000
(vii) Class A-4 Certificate Balance $12,726,000.00 $1,000.00
(viii) Class A-4 Principal Factor 1.0000000
(D) Beginning Total Pool Balance and Total Pool Factor for the Next Due Period.
(i) Beginning Total Portfolio Pool Balance $151,532,905.46
(ii) Beginning Total Portfolio Pool Factor 0.8844662
<CAPTION>
(E) Number and Aggregate Principal Balance of Home Equity Loans which are delinquent
30 Days or More at the End of the Current Due Period. Contracts Amount
# % $ %
------------------------------------------------
<S> <C> <C> <C> <C>
(i) 30-59 Days Delinquent 12 0.33% $500,586.78 0.33%
(ii) 60-89 Days Delinquent 8 0.22% $257,902.85 0.17%
(iii) 90 Days or More Delinquent 1 0.03% $107,838.69 0.07%
(iv) Real Estate Owned 0 0.00% $0.00 0.00%
(F) Number and Aggregate Principal Balances of Home Equity Loans in
Foreclosure and the Book Value of any Real Estate Acquired through
Foreclosure or a Deed in Lieu of Foreclosure.
(i) Number of Home Equity Loans in Foreclosure 1
(ii) Aggregate Principal Balance of Loans in Foreclosure $24,054.26
(iii) Book Value of any Real Estate Acquired or Deed in Lieu of Foreclosure $0.00
(G) Number and Aggregate Principal Balances of Home Equity Loans Including
the Home Equity Loans as to which the Trust has Acquired by Foreclosure
or Deed in Lieu of Foreclosure.
(i) Number of Home Equity Loans 3,624
(ii) Aggregate Principal Balance of Home Equity Loans $151,556,959.72
(H) Number and Aggregate Principal Balances of Home Equity Loans Repurchased
by any Seller or the Master Servicer during the Current Due Period.
(i) Number of Home Equity Loans Repurchased 0
(ii) Aggregate Principal Balance of Home Equity Loans Repurchased $0.00
(I) Amount of Monthly Servicing Fee Paid to the Master Servicer and the
Amount Reimbursed to the Master Servicer in Respect of Liquidation
Expenses during the Current Due Period.
(i) Amount of Monthly Servicing Fee Paid $814,362.58
(ii) Amount Reimbursed $0.00
(J) Amount of Withdrawal from the Reserve Account Distributed to the Class A
Certificateholders, the Amount in the Reserve Account After Giving
Effect to Distribution, the Reserve Account Required Amount, Reserve
Account Excess, and Amounts Transferred to Maintain Reserve Required.
(i) Amount of Withdrawal from the Reserve Account $0.00
(ii) Amount in the Reserve Account after such Withdrawal $14,991,108.40
(iii) Reserve Account Required Amount on Payment Date $4,368,837.28
(iv) Reserve Account Excess Amount on Payment Date $10,622,271.12
(v) Amount Transferred to Reserve Account to Maintain Required Reserve Amount $0.00
(K) Amount of Withdrawal from the Yield Supplement Account included in the
Amounts Distributed to the Class A-1, Class A-2 , Class A-3 or Class
A-4 Certificateholders, the Amount of Release paid to the Seller and
the Amount in the Yield Supplement Account After Giving Effect to Any
Withdrawal or Release
(i) Yield Supplement Deposit Amount Paid to Seller $7,928.83
(ii) Release from the Yield Supplement Account Paid to the Seller $2,409.00
(iii) Ending Yield Supplement Account Balance $68,456.04
</TABLE>
OFFICER'S CERTIFICATE
- --------------------------------------
All computations reflected in this Year End Servicing Report were made in
conformity with the Pooling and Servicing Agreement.
/s/ ROBERT W. FURNESS
- -----------------------------------------------------------------
Robert W. Furness
Servicing Officer
<PAGE> 1
EXHIBIT 28.2
[ERNST & YOUNG LLP LETTERHEAD]
Independent Accountants' Report
CoreStates Bank, N.A.
The First National Bank of Chicago
Moody's Investor Service
Standard & Poor's Corporation
Fitch Investor Services, L.P.
We have examined management's assertion included in the accompanying report
titled Report of Management that, during the year ended December 31, 1996,
CoreStates Bank, N.A. ("CoreStates") complied with the minimum servicing
standards set forth in the Mortgage Bankers Association of America's Uniform
Single Attestation Program for Mortgage Bankers (USAP) that are applicable to
home equity loans serviced by CoreStates pursuant to the respective Pooling and
Servicing Agreements for the CoreStates Home Equity Trust Series 1993-1, 1993-2,
1994-1, 1994-2, 1995-1, and 1996-1. Management has represented to us that the
minimum servicing standards related to mortgagor escrow accounts and adjustable
rate mortgages, including: I.4., III.3., III.4., V.2., V.3., V.4. are not
applicable to home equity loans. Management is responsible for the company's
compliance with those requirements. Our responsibility is to express an opinion
on management's assertion about CoreStates' compliance based on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about CoreStates' compliance with those
requirements and performing such other procedures as we considered necessary in
the circumstances. We believe that our examination provides a reasonable basis
for our opinion. Our examination does not provide a legal determination on
CoreStates' compliance with specified requirements.
In our opinion, management's assertion that CoreStates complied with the
aforementioned requirements during the year ended December 31, 1996 is fairly
stated, in all material respects.
ERNST & YOUNG LLP
January 22, 1997
