<PAGE>
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) May 13, 1996
Advanta Mortgage Loan Trust 1996-2
(Exact name of registrant as specified in its charter)
New York 33-95006 Application Pending
(State or Other Jurisdiction (Commission File (I.R.S. Employer
of Incorporation) Number) Identification No.)
c/o Advanta Mortgage Conduit 92127
Services, Inc.
Attention: Milton Riseman (Zip Code)
16875 West Bernardo Drive
San Diego, California
(Address of Principal Executive Offices)
Registrant's telephone number, including area code (619) 674-1800
500 Office Center Drive, Suite 400, Ft. Washington, Pennsylvania 19043
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
In connection with the offering of Advanta Mortgage Loan Trust
1996-2 Mortgage Loan Asset-Backed Certificates, Series 1996-2, described in a
Prospectus Supplement dated as of May 13, 1996, certain "Computational
Materials" within the meanings of the May 20, 1994 Kidder, Peabody No-Action
Letter and the February 17, 1995 Public Securities Association No-Action Letter
were furnished to certain prospective investors (the "Related Computational
Materials").
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(a) Not applicable
(b) Not applicable
(c) Exhibit 99.1. Related Computational Materials (as defined
in Item 5 above).
<PAGE>
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 hereunto duly authorized.
ADVANTA MORTGAGE LOAN TRUST 1996-2
By: Advanta Mortgage Conduit Services,
Inc., as Sponsor
By: S/ Mark Casale
Name: Mark Casale
Title: Vice-President
Dated: May 13, 1996
<PAGE>
EXHIBIT INDEX
Exhibit No. Description Page No.
99.1 Related Computational Materials (as 5
defined in Item 5 above).
EXHIBIT 99.1
Preliminary Information for Advanta Mortgage Loan Trust 1996-2
- Advanta Mortgage Conduit Services
Sponsor
- Advanta Mortgage Corp. USA
Master Servicer
- Advanta Mortgage Loan Trust 1996-2
Class A-1 Certificates $92,819,000 6.740%
Class A-2 Certificates $56,572,000 7.030%
Class A-3 Certificates $36,642,000 7.440%
Class A-4 Certificates $19,406,000 7.750%
Class A-5 Certificates $29,561,000 8.080%
Class A-6 Certificates $64,625,000 1m LIBOR+.34%
The analysis in this report is accurate to the best of PSI's knowledge and is
based on information provided by the Sponsor. PSI makes no representations as to
the accuracy of such information provided to it by the Sponsor. All assumptions
and information in this report reflect PSI's judgment as of this date and are
subject to change. All analyses are based on certain assumptions noted herein
and different assumptions could yield substantially different results. You are
cautioned that there is no universally accepted method for analyzing financial
instruments. You should review the assumptions; there may be differences between
these assumptions and your actual business practices. Further, PSI does not
guarantee any results and there is no guarantee as to the liquidity of the
instruments involved in this analysis. The decision to adopt any strategy
remains your responsibility. PSI (or any of its affiliates) or their officers,
directors, analysts or employees may have positions in securities, commodities
or derivative instruments thereon referred to here, and may, as principal or
agent, buy or sell such securities, commodities or derivative instruments. In
addition, PSI may make a market in the securities referred to herein. Neither
the information nor the assumptions reflected herein shall be construed to be,
or constitute, an offer to sell or buy or a solicitation of an offer to sell or
buy any securities, commodities or derivative instruments mentioned herein. No
sale of any securities, commodities or derivative instruments should be
consumated without the purchaser first having received a prospectus and, if
required, prospectus supplement. Finally, PSI has not addressed the legal,
accounting and tax implications of the analysis with respect to you, and PSI
strongly urges you to seek advice from your counsel, accountant and tax advisor.
Advanta Mortgage Loan Trust 1996-2
<PAGE>
Title of Securities: Advanta Mortgage Loan Trust 1996-2. Classes A-1
through A-6 (collectively, the "Certificates").
Description of
Transaction: This approximately $300,000,000 FGIC-wrapped transaction is
supported by two collateral types. The Class A-1 through A-5 Certificates are
sequentially tranched and are backed by fixed-rate home equity mortgage
loans. Certificate Class A-6 is a floating-rate class backed by
adjustable-rate home equity mortgage loans. The Class A-6 Certificates will
feature an interest shortfall reimbursement, in which any interest shortfall
due to the movement in the one-month LIBOR rate will be carried forward, with
accrued interest at the coupon rate, and paid from excess cash flow from the
adjustable-rate collateral in a later period. Excess spread from each
collateral pool will be available to credit-enhance the Certificates
supported by the other pool through overcollateralization, The FGIC insurance
policy does not cover payment of the interest shortfall reimbursement.
For additional information concerning pricing and relative value, please call
Greg Richter or Rob Karr on the asset backed desk at 212-778-2741. Additional
structural and collateral information can be provided through Jacqueline
Galdieri (212-778-2612) of the Structured Finance Group, or Brendan Keane
(212-778-4231) of the Asset-Backed Finance Group.
CERTIFICATE CLASSES A-1 THROUGH A-5
(SUPPORTED BY FIXED-RATE HOME EQUITY MORTGAGE LOANS)
Settlement Date: May 29, 1996
Dated Date: May 1, 1996
Prepayment Assumption: 100% of "Advanta Ramp" (3.0% CPR in month 1 of loan
origination with monthly incremental increases of approximately 1.55% CPR
until the speed reaches 20% CPR in month 12).--Actual prepayments may vary.
<TABLE>
<CAPTION>
Class A-1 Class A-2 Class A-3 Class A-4 Class A-5
<S> <C> <C> <C> <C> <C>
Approximate Size $92,819,000 $56,572,000 $36,642,000 $19,406,000 $29,561,000
Avg. Life to Maturity: (app.) 1.08 years 3.08 years 5.20 years 7.30 years 11.37 years
Avg. Life to Call: (app.) 1.08 years 3.08 years 5.20 years 7.30 years 9.39 years
Coupon 6.740% 7.030% 7.440% 7.750% 8.080%*
</TABLE>
* The coupon on the Class A-5 Certificates will equal the lesser of 8.080% and
the Pool 1 net funds cap rate. The Pool 1 net funds cap rate will equal the
weighted average mortgage rates of the Pool 1 loans less servicing fees,
insurer premiums, and trust expenses.
Expected Maturity 2.16 yrs 4.16 years 6.41 years 8.32 years 18.24 years
Stated Maturity 4/25/09 3/25/11 11/25/17 12/25/21 11/25/25
Expected Call Date NA NA NA NA 12/25/05
CERTIFICATE CLASS A-6 (SUPPORTED BY ADJUSTABLE-RATE HOME EQUITY MORTGAGE LOANS)
Settlement Date: May 29, 1996
Dated Date: May 29, 1996
Prepayment Assumption: 100% Advanta Ramp--Actual prepayments may vary.
Class A-6
Approximate Size: $64,625,000
Avg. Life to Maturity (app.) 4.32 years
Avg. Life to Call (app.) 3.93 years
Coupon *: 1M LIBOR + 0.34%, subject to an available funds cap *
Coupon Day Count: Actual/360
Life Cap: N/A
Expected Maturity: 2/25/18
Stated Maturity: 4/25/26
Expected Call Date: 12/25/05
* Coupon will step up by twice its stated margin if the clean up call is not
exercised.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
Advanta Mortgage Loan Trust 1996-2
<PAGE>
Cleanup Call: The Master Servicer may repurchase the collateral and, as a
result, cause the Certificates to be called at (All Certificate par plus accrued
interest after the remaining balance of the Certificates is less than 10% of the
Classes) original collateral balance. If the Class A-6 Certificates are not
called at this point, the coupon on these Certificates will step up by twice
its respective margin.
Collateral Pool 1: Fixed-rate home equity mortgage loans secured by one-to-four
family residences.
(Supports Certificate
Classes A-1 through A-5,
app. $235,000,000)
Collateral Pool 2: Adjustable-rate home equity mortgage loans secured by
one-to-four family residences.
(Supports Certificate
Class A-6,
app. $65,000,000)
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
Advanta Mortgage Loan Trust 1996-2
Cross-Collateralization: Excess spread from one collateral pool will be
available to credit enhance all Certificates supported by the other pool,
pro-rata, based on their needs.
Form of Certificates: Book entry form, same day funds (through DTC,
CEDEL or Euroclear).
Master Servicer: Advanta Mortgage Corp. USA
Servicing Fee: 50 basis points per annum.
Trustee: Bankers Trust Company of California N.A.
Payment Date: The 25th day of each month or, if such day is not a business
day, the next succeeding business day, beginning on June 25, 1996.
Payment Delay: 24 days for Certificate Classes A-1 through A-5 and no delay
for Certificate Class A-6.
Interest Accrual
Period: Interest will accrue from the 1st day of the preceeding month until the
30th day of the preceding month for Certificate Classes A-1 through A-5
based on a 30/360 day count. For Certificate Class A-6, interest will accrue
from the 25th date of the preceding month until the 24th day of the current
month based on an actual/360 day count. The Class A-6 Certificates will
start accruing interest from May 29, 1996.
Certificate Ratings: The Certificates will be rated AAA/Aaa by Standard &
Poor's and Moody's, respectively. These ratings will not address the interest
shortfall reimbursement.
Certificate Insurer: Financial Guaranty Insurance Company ("FGIC"). FGIC's
claims-paying ability is rated AAA/Aaa by Standard and Poor's and Moody's.
Certificate Insurance: Timely interest and eventual principal payments on the
Certificates will be 100% guaranteed by FGIC. The insurance policy does not
include the interest shortfall reimbursement.
Prefunding Account: None of the collateral is expected to be prefunded.
Overcollateralization: The subordination provisions of the Trust are intended to
provide for limited acceleration of the Certificates relative to the
amortization of the related collateral, generally in the early months of the
transaction. The accelerated amortization is achieved by applying certain excess
interest collected on the collateral to the payment of principal on the
Certificates. This acceleration feature is intended to create, with respect to
each Collateral Pool, an amount ("Overcollateralization") resulting from, and
equal to, the excess of the aggregate principal balances of the Collateral Pool
over the principal balance of the related Certificates. Once the required
Overcollateralization level is reached, the acceleration feature will cease,
unless necessary to maintain the required level of Overcollateralization.
CERTIFICATE CLASSES A-1 THROUGH A-5 (supported by fixed-rate home equity
mortgage loans) Excess spread will be used to build the Spread Amount to an
initial target of 2.90% of the original principal balance. Upon the earlier
of month 30 or 50% of Pool 1 paying down, the Spread Amount requirement will
be changed to the lesser of 2.90% of original principal balance or 5.80% of
current principal balance, subject to a floor of 0.50% of original principal
balance.
CERTIFICATE CLASS A-6 (supported by adjustable-rate home equity mortgage
loans) Excess spread will be used to build the Spread Amount to an initial
target of 4.00% of the original principal balance. Upon the earlier of month
30 or 50% of Pool 2 paying down, the Spread Amount requirement will be
changed to the lesser of 4.00% of original principal balance or 8.00% of
<PAGE>
current principal balance, subject to a floor of 0.50% of original principal
balance. Initial overcollateralization of approximately $375,000 will
support Class A-6.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
Advanta Mortgage Loan Trust 1996-2
Cashflow Structure: Interest Payments are applied as follows:
CERTIFICATE CLASSES A-1 THROUGH A-5 (supported by fixed-rate home equity
mortgage loans) 1) Repayment of any unreimbursed Servicer advances with
respect to defaulted loans; 2) Ongoing Trust Fees; 3) Accrued monthly
interest; 4) Paydown of Certificates to the required level of
Overcollateralization; 5) Any excess cash flow reverts to the holder of the
residual interest.
CERTIFICATE CLASS A-6 (supported by adjustable-rate home equity mortgage
loans) 1) Repayment of any unreimbursed Servicer advances with respect to
defaulted loans; 2) Ongoing Trust Fees; 3) Accrued monthly interest, subject
to the available funds cap; 4) Paydown of Certificates to the required level
of Overcollateralization; 5) Any excess cash flow reverts to the holder of
the residual interest.
Principal payments are applied as follows:
CERTIFICATE CLASSES A-1 THROUGH A-5 (supported by fixed-rate home equity
mortgage loans)
1) 100% to Class A-1 until Class A-1 is retired;
2) 100% to Class A-2 until Class A-2 is retired;
3) 100% to Class A-3 until Class A-3 is retired;
4) 100% to Class A-4 until Class A-4 is retired;
5) 100% to Class A-5 until Class A-5 is retired;
CERTIFICATE CLASS A-6 (supported by adjustable-rate home equity mortgage
loans)
1) 100% to Class A-6 until Class A-6 is retired;
Credit Enhancement: 1) 100% wrap from FGIC guarantees timely payment of
interest and eventual principal (excluding interest shortfall reimbursement).
2) Overcollateralization.
3) Cross-Collateralization.
4) Excess spread.
Pricing Date: May 13, 1996
Settlement Date: May 29, 1996
ERISA
Considerations: All of the Certificates will be ERISA eligible.
Taxation: REMIC.
Legal Investment: The Certificates will not be SMMEA eligible.
Prospectus: The Certificates are being offered pursuant to a Prospectus which
includes a Prospectus Supplement (together, the "Prospectus"). Complete
information with respect to the Certificates and the Collateral is contained
in the Prospectus. The foregoing is qualified in its entirety by the
information appearing in the Prospectus. To the extent that the foregoing is
inconsistent with the Prospectus, the Prospectus shall govern in all
respects. Sales of the Certificates may not be consumated unless the
purchaser has received the Prospectus.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
Available Funds information on Certificate A-6 Floating Rate Tranche:
Class A-6 Certificates are subject to an available funds cap;
Available Funds = (Pool 2 Collateral Interest - Servicing Fee - Trustee Fee -
Insurer's Premium - FGIC cushion (0% until month 37; 0.50% on Pool 2 balance
thereafter))/(Bond Balance of Class A-6)
Available
Funds
Period Cap
- - ------------------------
06/25/96 9.0439
07/25/96 9.2068
<PAGE>
08/25/96 9.2969
09/25/96 9.3533
10/25/96 9.4545
11/25/96 9.5315
12/25/96 9.6172
01/25/97 9.6981
02/25/97 9.7849
03/25/97 9.8282
04/25/97 9.9241
05/25/97 10.1069
06/25/97 10.1366
07/25/97 10.2110
08/25/97 10.2192
09/25/97 10.2193
10/25/97 10.2546
11/25/97 10.2770
12/25/97 10.2770
01/25/98 10.2780
02/25/98 10.2781
03/25/98 10.2782
04/25/98 10.2782
05/25/98 10.2913
06/25/98 10.2914
07/25/98 10.2914
08/25/98 10.2915
09/25/98 10.3215
10/25/98 10.3216
11/25/98 10.3216
12/25/98 10.3217
01/25/99 10.3217
02/25/99 10.3123
03/25/99 10.3124
04/25/99 10.3753
05/25/99 10.4342
06/25/99 9.9342
07/25/99 9.9494
08/25/99 9.9494
09/25/99 9.9494
10/25/99 9.9495
11/25/99 9.9495
12/25/99 9.9496
01/25/00 9.9496
02/25/00 9.9496
03/25/00 9.9497
04/25/00 9.9497
05/25/00 9.9498
06/25/00 9.9498
07/25/00 9.9499
08/25/00 9.9499
09/25/00 9.9659
10/25/00 9.9659
11/25/00 9.9660
12/25/00 9.9660
01/25/01 9.9661
02/25/01 9.9661
03/25/01 9.9662
04/25/01 10.0097
05/25/01 10.0282
06/25/01 10.0282
07/25/01 10.0340
08/25/01 10.0341
09/25/01 10.0341
10/25/01 10.0342
11/25/01 10.0342
12/25/01 10.0343
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
Available
Funds
Period Cap
- - ------------------------
01/25/02 10.0343
02/25/02 10.0344
03/25/02 10.0344
04/25/02 10.0345
05/25/02 10.0345
06/25/02 10.0346
07/25/02 10.0346
08/25/02 10.0347
09/25/02 10.0347
10/25/02 10.0348
11/25/02 10.0348
12/25/02 10.0349
01/25/03 10.0349
02/25/03 10.0350
03/25/03 10.0350
<PAGE>
04/25/03 10.0351
05/25/03 10.0352
06/25/03 10.0352
07/25/03 10.0353
08/25/03 10.0353
09/25/03 10.0354
10/25/03 10.0354
11/25/03 10.0355
12/25/03 10.0355
01/25/04 10.0356
02/25/04 10.0357
03/25/04 10.0357
04/25/04 10.0358
05/25/04 10.0358
06/25/04 10.0359
07/25/04 10.0360
08/25/04 10.0360
09/25/04 10.0361
10/25/04 10.0361
11/25/04 10.0362
12/25/04 10.0363
01/25/05 10.0363
02/25/05 10.0364
03/25/05 10.0365
04/25/05 10.0365
05/25/05 10.0366
06/25/05 10.0367
07/25/05 10.0367
08/25/05 10.0368
09/25/05 10.0369
10/25/05 10.0369
11/25/05 10.0370
12/25/05 10.0371
01/25/06 10.0371
02/25/06 10.0372
03/25/06 10.0373
04/25/06 10.0373
05/25/06 10.0374
06/25/06 10.0375
07/25/06 10.0375
08/25/06 10.0376
09/25/06 10.0377
10/25/06 10.0378
11/25/06 10.0378
12/25/06 10.0379
01/25/07 10.0380
02/25/07 10.0381
03/25/07 10.0381
04/25/07 10.0382
05/25/07 10.0383
06/25/07 10.0384
07/25/07 10.0385
08/25/07 10.0385
09/25/07 10.0386
10/25/07 10.0387
11/25/07 10.0388
12/25/07 10.0389
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
Available
Funds
Period Cap
- - ------------------------
01/25/08 10.0389
02/25/08 10.0390
03/25/08 10.0391
04/25/08 10.0392
05/25/08 10.0393
06/25/08 10.0394
07/25/08 10.0395
08/25/08 10.0395
09/25/08 10.0396
10/25/08 10.0397
11/25/08 10.0398
12/25/08 10.0399
01/25/09 10.0400
02/25/09 10.0401
03/25/09 10.0402
04/25/09 10.0403
05/25/09 10.0404
06/25/09 10.0405
07/25/09 10.0405
08/25/09 10.0406
09/25/09 10.0407
10/25/09 10.0408
11/25/09 10.0409
<PAGE>
12/25/09 10.0410
01/25/10 10.0411
02/25/10 10.0412
03/25/10 10.0413
04/25/10 10.0414
05/25/10 10.0415
06/25/10 10.0417
07/25/10 10.0418
08/25/10 10.0419
09/25/10 10.0420
10/25/10 10.0421
11/25/10 10.0422
12/25/10 10.0423
01/25/11 10.0424
02/25/11 10.0425
03/25/11 10.0426
04/25/11 10.0428
05/25/11 10.0429
06/25/11 10.0430
07/25/11 10.0431
08/25/11 10.0432
09/25/11 10.0433
10/25/11 10.0435
11/25/11 10.0436
12/25/11 10.0437
01/25/12 10.0438
02/25/12 10.0440
03/25/12 10.0441
04/25/12 10.0442
05/25/12 10.0443
06/25/12 10.0445
07/25/12 10.0446
08/25/12 10.0447
09/25/12 10.0449
10/25/12 10.0450
11/25/12 10.0451
12/25/12 10.0453
01/25/13 10.0454
02/25/13 10.0456
03/25/13 10.0457
04/25/13 10.0459
05/25/13 10.0460
06/25/13 10.0461
07/25/13 10.0463
08/25/13 10.0464
09/25/13 10.0466
10/25/13 10.0467
11/25/13 10.0469
12/25/13 10.0471.........
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
