<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 21, 1997
-----------------
First Alliance Mortgage Company
on behalf of
First Alliance Mortgage Loan Trust 1996-2
------------------------------------------------------
(Exact name of registrant as specified in its charter)
New York 33-91148 Applied For
- ---------------------------- ------------ -------------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
c/o First Alliance Mortgage Company
Attention: Mark K. Mason
Executive Vice President and Chief Financial Officer
17305 Von Karman Avenue
Irvine, CA 92714
Address of Servicer
----------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: (714)224-8500
Not Applicable
--------------------------------------------------------------
(Former name or former address, if changed since last report.)
<PAGE>
Item 5. Other Events.
Information relating to the distributions to Certificateholders for the
November 1996 Monthly Period of the Trust in respect of the First Alliance
Mortgage Loan Asset Backed Certificates, Series 1996-2, Class A (the
"Certificates") issued by the Registrant and the performance of the Trust
(including distributions of principal and interest, delinquent balances of
Mortgage Loans, and the subordinated amount remaining), together with certain
other information relating to the certificates, is contained in the Monthly
Report for the Monthly Period provided to certificateholders pursuant to the
Pooling and Servicing Agreement (the "Agreement") dated as of June 1, 1996
between First Alliance Mortgage Company as Servicer, and Bankers Trust Company,
as trustee.
Item 7. Exhibit.
Monthly Report for the November 1996 Monthly Period relating to the
First Alliance Mortgage Loan Asset Backed Certificates Series 1996-2, Class A
issued by the First Alliance Mortgage Loan Trust 1996-2.
<PAGE>
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf hereunto
duly authorized.
First Alliance Mortgage Loan Trust 1996-2
-----------------------------------------
(Registrant)
By: First Alliance Mortgage Company
-----------------------------------------
(Servicer)
Date: January 27, 1997 By: /s/ MARK K. MASON
---------------- -----------------------------------------
Name: Mark K. Mason
-----------------------------------------
Executive Vice President and
Title: Chief Financial Officer
-----------------------------------------
<PAGE>
FIRST ALLIANCE
MORTGAGE LOAN TRUST
SERIES 1996-2
STATEMENT TO CERTIFICATEHOLDERS
DISTRIBUTIONS IN DOLLARS
<TABLE>
<CAPTION>
PRIOR CURRENT
ORIGINAL PRINCIPAL REALIZED DEFERRED PRINCIPAL
CLASS FACE VALUE BALANCE INTEREST PRINCIPAL TOTAL LOSSES INTEREST BALANCE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 29,614,000.00 25,566,202.99 153,929.85 963,634.50 1,117,564.35 0.00 0.00 24,602,568.49
A-2 10,000,000.00 10,000,000.00 64,375.00 0.00 64,375.00 0.00 0.00 10,000,000.00
A-3 10,386,000.00 10,386,000.00 71,187.38 0.00 71,187.38 0.00 0.00 10,386,000.00
A-4 25,000,000.00 22,991,101.57 124,662.86 1,387,453.15 1,512,116.01 0.00 0.00 21,603,648.42
R 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
TOTALS 75,000,000.00 68,943,304.56 414,155.08 2,351,087.65 2,765,242.74 0.00 0.00 66,592,216.91
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FACTOR INFORMATION PER $1000 OF ORIGINAL FACE PASS-THROUGH RATES
PRIOR CURRENT
PRINCIPAL PRINCIPAL
CLASS CUSIP BALANCE INTEREST PRINCIPAL TOTAL BALANCE CURRENT NEXT
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 31846LBA3 863.314749 5.197874 32.539829 37.737703 830.774920 7.225000% 7.225000%
A-2 31846LBB1 1,000.000000 6.437500 0.000000 6.437500 1,000.000000 7.725000% 7.725000%
A-3 31846LBC9 1,000.000000 6.854167 0.000000 6.854167 1,000.000000 8.225000% 8.225000%
A-4 31846LBD7 919.644063 4.986514 55.498126 60.484640 864.145937 6.100000% 5.850000%
R 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000% 0.000000%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
SELLER: First Alliance Mortgage Company ADMINISTRATOR: Erin Deegan
SERVICER: First Alliance Mortgage Company Bankers Trust Company
LEAD UNDERWRITER: Prudential Securities Incorporated 3 Park Plaza
RECORD DATE: December 31, 1996 Irvine, CA 92714
DISTRIBUTION DATE: January 21, 1997 FACTOR INFORMATION: (800) 735-7777
</TABLE>
Page 1 of 4
<PAGE>
FIRST ALLIANCE
MORTGAGE LOAN TRUST
SERIES 1996-2
STATEMENT TO CERTIFICATEHOLDERS
Distribution Date: January 21, 1997
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
DELINQUENCY ADVANCES MADE: 40,353.39
ACCRUED SERVICING FEE FOR THE CURRENT PERIOD: 29,128.97
PLUS: ADDITIONAL SERVICING FEES: 0.00
---------
29,128.97
LESS: PERMITTED REDUCTIONS TO SERVICING FEES: 0.00
---------
29,128.97
LESS: UNCOLLECTED SERVICING FEES ACCRUED ON DELINQUENT LOANS: (1,835.47)
---------
ACTUAL COLLECTED SERVICING FEES FOR CURRENT PERIOD: 27,293.50
</TABLE>
<TABLE>
<CAPTION>
DELINQUENT* AND LOANS LOANS
FORECLOSURE LOAN 30 60 90 IN IN
INFORMATION DAYS DAYS DAYS TOTAL REO FORECLOSURE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GROUP 1 | PRINCIPAL BALANCE 268,077.39 386,981.92 708,048.41 1,363,107.72 0.00 1,274,497.80
PERCENTAGE OF POOL BALANCE 0.5862% 0.8462% 1.5483% 2.9808% 0.0000% 2.7870%
- -----------------------------------------------------------------------------------------------------------------------------
NUMBER OF LOANS 4 3 8 15 0 13
PERCENTAGE OF LOANS 0.7168% 0.5376% 1.4337% 2.6882% 0.0000% 2.3297%
- -----------------------------------------------------------------------------------------------------------------------------
GROUP 2 | PRINCIPAL BALANCE 241,776.54 155,367.74 764,518.73 1,161,663.01 0.00 1,046,367.12
PERCENTAGE OF POOL BALANCE 1.1019% 0.7081% 3.4844% 5.2945% 0.0000% 4.7690%
- -----------------------------------------------------------------------------------------------------------------------------
NUMBER OF LOANS 4 2 9 15 0 13
PERCENTAGE OF LOANS 1.5625% 0.7813% 3.5156% 5.8594% 0.0000% 5.0781%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Note: Loans in foreclosure are included in the respective delinquency
categories.
<TABLE>
<S> <C> <C>
---------------------------
BOOK VALUE OF REO PROPERTY: GROUP 1 0.00
GROUP 2 0.00
---------------------------
---------------------------
SUBSTITUTION PRINCIPAL AMOUNT: GROUP 1 0.00
GROUP 2 0.00
---------------------------
---------------------------
SCHEDULED PRINCIPAL BALANCE OF MORTGAGE LOANS GROUP 1 46,630,765.46
AS OF THE PRIOR DISTRIBUTION DATE: GROUP 2 23,278,743.32
---------------------------
---------------------------
SCHEDULED PRINCIPAL BALANCE OF MORTGAGE LOANS GROUP 1 45,730,167.03
AS OF THE CURRENT DISTRIBUTION DATE: GROUP 2 21,940,982.86
---------------------------
---------------------------
CARRY-FORWARD AMOUNT: GROUP 1 0.00
GROUP 2 0.00
---------------------------
---------------------------
PROJECTED NET MONTHLY EXCESS CASH FLOW: GROUP 1 64,639.22
GROUP 2 57,450.89
---------------------------
</TABLE>
Page 2 of 4
<PAGE>
FIRST ALLIANCE
MORTGAGE LOAN TRUST
SERIES 1996-2
STATEMENT TO CERTIFICATEHOLDERS
- --------------------------------------------------------------------------------
Distribution Date: January 21, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
-------------------------
NUMBER OF LOANS AS OF THE BEGINNING OF THE REMITTANCE PERIOD: GROUP 1 566
GROUP 2 276
-------------------------
-------------------------
NUMBER OF LOANS AS OF THE END OF THE REMITTANCE PERIOD: GROUP 1 558
GROUP 2 256
-------------------------
-------------------------
WEIGHTED AVERAGE COUPON AS OF THE CURRENT DISTRIBUTION DATE: GROUP 1 9.739810%
GROUP 2 9.656032%
-------------------------
-------------------------
WEIGHTED AVERAGE COUPON AS OF THE NEXT DISTRIBUTION DATE: GROUP 1 9.743880%
GROUP 2 9.788102%
-------------------------
-------------------------
CURTAILMENTS INCLUDED IN CURRENT DISTRIBUTION: GROUP 1 10,440.91
GROUP 2 14,102.13
-------------------------
-------------------------
PREPAYMENTS IN FULL/UNSCHEDULED RECOVERIES OF PRINCIPAL GROUP 1 854,804.37
INCLUDED IN CURRENT DISTRIBUTION: GROUP 2 1,307,507.92
-------------------------
-------------------------
AMOUNT OF EXCESS SPREAD SUPPORT TO THIS GROUP: GROUP 1 0.00
(FROM OTHER GROUP) GROUP 2 0.00
-------------------------
-------------------------
TRUST TERMINATION PROCEEDS: GROUP 1 0.00
GROUP 2 0.00
-------------------------
-------------------------
INSURED PAYMENTS: GROUP 1 0.00
GROUP 2 0.00
-------------------------
-------------------------
CERTIFICATE INSURER PREMIUM PAYMENT: GROUP 1 5,744.03
GROUP 2 2,873.89
-------------------------
TOTAL: 8,617.91
=========================
-------------------------
PREFUNDING ACCOUNT EARNINGS: GROUP 1 0.00
GROUP 2 0.00
-------------------------
TOTAL: 0.00
=========================
</TABLE>
- --------------------------------------------------------------------------------
Page 3 of 4
<PAGE>
FIRST ALLIANCE
MORTGAGE LOAN TRUST
SERIES 1996-2
STATEMENT TO CERTIFICATEHOLDERS
Distribution Date: January 21, 1997
- -------------------------------------------------------------------------------
SUBORDINATION TRACKING:
<TABLE>
<CAPTION>
PRIOR SUBORDINATION SUBORDINATION REALIZED CURRENT SPECIFIED
SUBORDINATED INCREASE REDUCTION LOSSES SUBORDINATED SUBORDINATED
AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GROUP 1 678,562.47 63,036.07 0.00 0.00 741,598.54 1,382,500.74
GROUP 2 287,641.75 49,692.69 0.00 0.00 337,334.44 562,500.00
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL 966,204.22 112,728.76 0.00 0.00 1,078,932.98 1,945,000.74
============================================================================================================================
</TABLE>
INTEREST ALLOCATION TRACKING:
<TABLE>
<CAPTION>
GROUP 1 GROUP II TOTAL
------------- --------------- --------------
<S> <C> <C> <C>
Mortgage Loan Scheduled Interest 378,478.99 187,316.90 565,795.89
LESS: Non-Recoverable Advances 0.00 0.00 0.00
dLESS: Prepayment Interest Shortfall not covered by Servicing Fees 0.00 0.00 0.00
LESS: Accrued Servicing Fees (19,429.49) (9,699.48) (29,128.97)
LESS: Insurance Premium Due Certificate Insurer (5,744.03) (2,873.89) (8,617.91)
LESS: Trustee Fee (777.18) (387.98) (1,165.16)
LESS: Current Accrued Interest Due Certificateholders (289,492.22) (124,662.86) (414,155.08)
- --------------------------------------------------------------------------------------------------------------------------
Monthly Excess Spread Amounts 63,036.07 49,692.69 112,728.77
==========================================================================================================================
</TABLE>
REALIZED LOSS TRACKING:
<TABLE>
<CAPTION>
GROUP 1 GROUP II
-------------------------------------------------------------------------------------------------------------------
REALIZED RECOVERED RECOVERED TOTAL REALIZED RECOVERED RECOVERED TOTAL
LOSSES DELINQUENCY SERVICING LOSSES DELINQUENCY SERVICING
ADVANCES ADVANCES ADVANCES ADVANCES
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Prior: 24,184.80 0.00 0.00 24,184.80 0.00 0.00 0.00 0.00
Current: 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
-------------------------------------------------------------------------------------------------------------------
Cummulative: 24,184.80 0.00 0.00 24,184.80 0.00 0.00 0.00 0.00
===================================================================================================================
</TABLE>
SPECIAL LOAN TRACKING:
<TABLE>
<CAPTION>
BANKRUPTCY PROCEEDINGS
-----------------------------------------------------------
NUMBER PRINCIPAL
OF LOANS BALANCE
-----------------------------------------------------------
GROUP I GROUP II GROUP I GROUP II
<S> <C> <C> <C> <C>
Current: 0 0 0.00 0.00
Delinquent: 0 0 0.00 0.00
-----------------------------------------------------------
TOTAL: 0 0 0.00 0.00
===========================================================
</TABLE>
Page 4 of 4
<PAGE>
FIRST ALLIANCE
MORTGAGE LOAN TRUST
SERIES 1996-2
STATEMENT TO CERTIFICATEHOLDERS
Distribution Date: January 21, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE SUM OF: GROUP 1 GROUP 2 TOTAL
------------- ------------- -------------
<S> <C> <C> <C>
SCHEDULED INTEREST: 378,478.99 187,316.90 565,795.89
LIQUIDATED INTEREST 0.00 0.00 O.00
INSURANCE INTEREST: 0.00 0.00 0.00
REPURCHASE INTEREST: 0.00 0.00 0.00
LESS: DELINQUENT INTEREST: (17,532.58) (22,135.83) (39,668.41)
PLUS: DELINQUENCY ADVANCES ON MORTGAGE INTEREST: 16,746.58 21,086,37 37,832.95
LESS: ADVANCES DEEMED NON-RECOVERABLE BY SERVICER 0.00 0.00 0.00
PLUS: INVESTMENT EARNINGS ON CERTIFICATE ACCOUNT 0.00 0.00 0.00
---------------------------------------------
PLUS: TOTAL INTEREST 377,692.99 186,267.44 563,960.43
PRINCIPAL COLLECTED: 900,598.43 1,337,760.46 2,238,358.89
INSURANCE PRINCIPAL PROCEEDS RECEIVED: 0.00 0.00 0.00
NET LIQUIDATION PROCEEDS: 0.00 0.00 0.00
LOAN PURCHASE PRICE AMOUNTS (Per P&S, Section 7.8 (vii)): 0.00 0.00 0.00
SUBSTITUTION AMOUNTS (Per P&S, Section 7.8 (vii)): 0.00 0.00 0.00
TRUST TERMINATION PROCEEDS: 0.00 0.00 0.00
---------------------------------------------
PLUS: TOTAL PRINCIPAL 900,598.43 1,337,760.46 2,238,358.89
SERVICING FEES (Net of Compensating Interest) 18,643.48 8,650.02 27,293.50
PREPAYMENT INTEREST SHORTFALL 0.00 0.00 0.00
TRUSTEE FEES: 777.18 387.98 1,165.16
INSURANCE PREMIUMS: 5,744.03 2,873.89 8,617.91
REIMBURSEMENT OF DELINQUENCY ADVANCES: 0.00 0.00 0.00
REIMBURSEMENTS OF SERVICING ADVANCES: 0.00 0.00 0.00
---------------------------------------------
LESS: TOTAL 25,164.69 11,911.89 37,076.57
---------------------------------------------
TOTAL AVAILABLE FUNDS: 1,253,126.73 1,512,116.01 2,765,242.75
==============================================
</TABLE>
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