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) : October 25, 1996
Saxon Asset Securities Trust 1996-1
Mortgage Loan Asset Backed Certificates, Series 1996-1
(Exact name of registrant as specified in its charter)
Virginia 34-020552 52-1785164
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation or organization) Identification No.)
4880 Cox Road, Glen Allen, Virginia 23060
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code : (804) 967-7400
N/A
(Former name or former address, if changed since last report.)
Page 1 of 4 This report consists of 13 consecutively
numbered pages.
<PAGE>
Item 5. Other Events.
The First Amendment to the Trust Agreement dated October 1, 1996 has become
effective and is filed herewith as Exhibit 4.1
On October 25, 1996 distributions were made to the Certificateholders. Speci-
fic information with respect to the distributions is filed as Exhibit
99.1.
No other reportable transactions or matters have occurred during the
current reporting period.
Item 7. Financial Statements and Exhibits.
(c) The following exhibits are filed as part of this report:
First Amendment to the Trust Agreement dated October 1, 1996
filed as Exhibit 4.1 hereto.
Statement to Certificateholders on October 25, 1996 filed
as Exhibit 99.1 hereto.
<PAGE>
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.
SAXON ASSET SECURITIES TRUST 1996-1,
MORTGAGE LOAN ASSET BACKED CERTIFICATES
SERIES 1996-1
Date: November 5, 1996 By: /s/ Brad Adams
---------------
Brad Adams
Vice President
<PAGE>
INDEX TO EXHIBITS
Exhibit
Number Description of Exhibits Page
4.1 Fist Amendment to the Trust Agreement
dated October 1, 1996 5
99.1 Monthly Certificateholder Statement on
October 25, 1996. 10
<PAGE>
Exhibit 4.1
First Amendment to the Trust Agreementdated October 1, 1996
<PAGE>
First Amendment to Trust Agreement
THIS FIRST AMENDMENT dated as of October 1, 1996 (this "Amendment"), is
hereby executed by and among Saxon Asset Securities Company, a Virginia
corporation ("SASCO"), Texas Commerce Bank National Association, as Master
Servicer, Custodian, Certificate Registrar and Paying Agent (in such capacities,
the "Master Servicer", the "Custodian", the "Certificate Registrar" and the
"Paying Agent", respectively), and Citibank, N.A., a national banking
association, as Trustee (in such capacity, the "Trustee"), in each case under
the TRUST AGREEMENT dated as of August 1, 1996 (the "Agreement"), by and among
SASCO, the Master Servicer, the Custodian, the Certificate Registrar, the Paying
Agent and the Trustee, for the purpose of amending the Agreement. The Agreement
incorporates, unless otherwise specified therein, all the provisions of the
Standard Terms to Trust Agreement (August 1996 Edition) (the "Standard Terms"),
which are a part of the Agreement as if set forth therein in full (the Agreement
with the Standard Terms so incorporated, the "Trust Agreement").
Preliminary Statement
The Board of Directors of SASCO authorized the formation of a trust (the
"Trust") to issue a series of asset backed certificates with an aggregate
initial Certificate Principal Balance of $234,089,000 to be known as the Saxon
Asset Securities Trust 1996-1, Mortgage Loan Asset Backed Certificates, Series
1996-1 (the "Certificates").
The Trust Agreement may be amended or supplemented from time to time by
SASCO, the Master Servicer and the Trustee without the consent of any of the
Certificateholders, among other things, (i) to cure any ambiguity, (ii) to
correct or supplement any provisions therein which may be inconsistent with any
other provisions therein, or (iii) to make any other provisions with respect to
matters or questions arising under the Trust Agreement or matters arising with
respect to the Trust that are not covered by the Trust Agreement, provided that
such action shall not adversely affect in any material respect the interests of
any Certificateholder. Any such amendment or supplement shall be deemed not to
adversely affect in any material respect any Certificateholder if there is
delivered to the Trustee written notification from each Rating Agency to the
effect that such amendment or supplement will not cause such Rating Agency to
reduce the then current rating assigned to such Certificates.
Section 1.02 ofthe Agreement modifies the Standard Terms by,among other
things, providing that: unless a Certificate Insurer Default exists, the
Certificate Insurer's prior written consent is required prior to, among other
things, any amendment to the Trust Agreement pursuant to Section 11.01 of the
Standard Terms.
The Trust Agreement provides, among other things, that all Monthly Payments
on the Mortgage Loans due after July 17, 1996, were conveyed to the Trust
Estate. Nevertheless, it was the intention of SASCO that an amount equal to
the Retained Interest, representing interest on the Adjustable Rate Mortgage
Loans from July 1, 1996, to July 17, 1996, would be retained by SASCO from the
Monthly Payments thereon due on August 1, 1996. Because, however, it was not
clear that the Retained Interest should have been remitted to SASCO on the first
Payment Date, the Retained Interest was distributed to holders of the Class A-1
Certificates in reduction of the Certificate Principal Balance of the Class A-1
Certificates. In order to carry out the original intent of SASCO, the
Certificate Insurer has consented to the amendment of the Trust Agreement to
permit an amount equal to the Retained Interest to be distributed to SASCO from
Available Funds.
NOW, THEREFORE, in consideration of the mutual promises, covenants,
representations and warranties hereinafter set forth, SASCO, the Master Servicer
and the Trustee agree as follows:
Section 1. Capitalized terms used but not defined in this Amendment shall
have the respective meanings assigned to them in Section 1.01 of the Standard
Terms or in Section 1.03 of the Agreement. If a term defined in the Standard
Terms is also defined in the Agreement the definition in the Agreement shall
control. In addition, the following definitions are used herein:
"Retained Interest": $487,525.70.
"SASCO Distribution": As of any Distribution Date, the excess, if any, of
the Retained Interest over distributions theretofore made to SASCO pursuant to
Section 3.02(d)(v) of the Agreement on previous Distribution Dates.
Section 2. Section 3.02(d) of the Agreement is amended by:
(a) inserting therein, after existing clause (iv), a new clause (v) as
follows:
"(v) to SASCO the SASCO Distribution;"
(b) renumbering the clauses (v), (vi), (vii) and (viii) of Section 3.02(d)
as clauses (vi), (vii), (viii) and (ix), respectively.
Section 3. Effective Date. This amendment shall take effect when the
consent of the Certificate Insurer shall have been filed with the Master
Servicer and this amendment shall have been executed by the parties hereto.
<PAGE>
IN WITNESS WHEREOF, SASCO, the Master Servicer, Custodian, Certificate
Registrar and Paying Agent and the Trustee have caused this Agreement to be duly
executed by their respective officers thereunto duly authorized and their
respective signatures duly attested all as of the date first above written.
SAXON ASSET SECURITIES COMPANY
By: /s/ Brad Adams
--------------
Brad Adams
Vice President
TEXAS COMMERCE BANK NATIONAL
ASSOCIATION, as Master Servicer,
Custodian, Certificate Registrar,
and Paying Agent
By: /s/ Sue Needham
---------------
Sue Needham
Vice President & Trust Officer
CITIBANK, N.A.
not in its individual capacity but solely
as trustee under the Trust Agreement
By: /s/ Denise Banasvek
-------------------
Vice President
[Originals were notarized]
<PAGE>
CONSENT
MBIA Insurance Corporation
MBIA Insurance Corporation consents to the First Amendment to Trust
Agreement, in the form attached hereto as Exhibit A, to amend the Trust
Agreement dated as of August 1, 1996, by and among Saxon Asset Securities
Company, a Virginia corporation, Texas Commerce Bank National Association, as
Master Servicer, Custodian, Certificate Registrar and Paying Agent, and
Citibank, N.A., as Trustee.
Dated: October 21, 1996
MBIA INSURANCE CORPORATION
By: /s/ Robert Heller
-----------------
Robert Heller
<PAGE>
Exhibit 99.1
Monthly Certificateholder Statement on October 25, 1996
<PAGE>
<TABLE>
<CAPTION>
SAXON ASSET SECURITIES TRUST
SERIES 1996-1
DIST DATE: October 25, 1996 PAGE #1
RECORD DATE: September 30, 1996
<CAPTION>
Original . Beginning Ending Aggregate
Certificate Certificate Principal Interest Total Certificate Scheduled Principal
Class ....Cusip # Balance Balance Distribution Distribution Distribution Balance Balance
<S> <C> <C> <C> <C> <C> <C>
A-1 ......805559Aa9 43,000,000.00 42,792,139.48 232,537.11 263,171.66 495,708.77 42,559,602.37 52,373,225.40
A-2 ......805559Ab7 9,600,000.00 9,600,000.00 0.00 64,480.00 64,480.00 9,600,000.00
A-3 ..... 805559Ac5 181,489,000.00 172,459,196.39 5,090,675.78 848,283.67 5,938,959.45 167,368,520.61 168,210,085.20
R ....... N/a N/a N/a N/a N/a N/a
Totals 234,089,000.00 224,851,335.87 5,323,212.89 1,175,935.33 6,499,148.22 219,528,122.98 220,583,310.60
</TABLE>
LIBOR RATE 5.56250%
Factor Information Per $1,000 of the Original Balance
<TABLE>
<CAPTION>
Principal Interest End Prin Current
Class Cusip # Distribution Distribution Balance Pass Through Rate
<S> <C> <C> <C> <C> <C> <C>
A-1 805559AA9 5.40783977 6.12027116 989.75819465 7.380000%
A-2 805559AB7 0.00000000 6.71666667 1,000.00000000 8.060000%
A-3 805559AC5 28.04950041 4.67402250 922.19650012 5.902500%
</TABLE>
If there are any questions or comments, please contact the Relationship
Manager listed below
Mary Jo Davis
The Texas Commerce Bank, N.A.
600 Travis Street, 8th Floor
Houston, Texas 77002
(713) 216-4756
Texas Commerce Bank, N.A.
MASTER SERVICER
<PAGE>
SAXON ASSET SECURITIES TRUST
SERIES 1996-1
DIST DATE: October 25, 1996 PAGE #2
RECORD DATE: September 30, 1996
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Group I Group II
Sec. 3.04 (a) (ii) Prepayment Amount 114,612.26 4,969,028.75
Principal Recovery Amount 0.00 0.00
Subordination Increase Amount 80,673.17 0.00
Sec. 3.04 (a) (v) Insured Payment Amount
Group I Group II
Sec. 3.04 (a) (vii) Subordinated Amount or Subordination Deficit Amount 0.00 0.00
Sec. 3.04 (a) (ix) Total Substitution Shortfall Amount 0.00 0.00
Total Repurchase Amount 0.00 0.00
Group I Group II
Sec. 3.04 (a) (x) Weighted Average Net Rate of Mortgage Loans 9.85130% 8.12706%
Sec. 3.04 (a) (xii) The largest Mortgage Loan Balance 680,668.90 1,169,344.07
Sec. 3.04 (a) (xiii) Servicing Fees 12,289.35 57,101.49
Master Servicing Fees 2,731.30 9,011.64
Premium Amount 5,260.00 18,320.21
Sec. 3.04 (b) (ii) The Number and Aggregate Principal Balances of all Delinquent Mortgage Loans
as of such Remittance Date
Group I Group II
Category Number Percentage Principal Balance Number Percentage Principal Balance
30-59 Days 46 9.23710% 4,837,787.97 107 10.37580% 17,453,060.84
60-89 Days 4 0.67240% 352,160.23 11 1.19510% 2,010,219.97
90+ Days 0 0 0 6 0.65400% 1,099,999.32
Group I Group II
Sec. 3.04 (b) (iii) Number of Mortgage Loans in Foreclosure Proceedings 0 0
Dollar Amounts of all Mortgage Loans in Foreclosure Proceedings 0.00 0.00
Number of Mortgage Loans in Foreclosure in Prior Month 0 0
Dollar Amounts of all Mortgage Loans in Foreclosure in Prior Month 0.00 0.00
Group I Group II
Sec. 3.04 (b) (iv) Number of Mortgagors in Bankruptcy Proceedings 0 2
Scheduled Principal Balances of Mortgage Loans in Bankruptcy Proceedings 0.00 248,964.07
</TABLE>
TEXAS COMMERCE BANK, N.A.
MASTER SERVICER
<PAGE>
SAXON
ASSET SECURITIES TRUST SERIES
1996-1
DIST DATE: October 25, 1996 PAGE # 3
RECORD DATE: September 30, 1996
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Group I Group II
Sec. 3.04 (b) (v) Status of any REO Properties
Sec. 3.04 (b) (vi) Book Value Of any REO Properties 0.00 0.00
Group I Group II
Sec. 3.04 (b) (vii) Cumulative Loss Percentage 0.00 0.00
Amount of Cumulative Realized
Losses 0.00 0.00
Current Period Realized Losses 0.00 0.00
Annual Loss Percentage 0.00 0.00
Group I Group II
Sec. 3.04 (b) (viii 90+ Delinquency Percentage 0.00 0.00
Number of 90 Day Delinquent Loans 0 0
Amount by Principal Balance of
90 Day Delinquent Loans 0.00 0.00
</TABLE>
TEXAS COMMERCE BANK, N.A.
MASTER SERVICER
