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 March 20, 1997
REVOLVING HOME EQUITY LOAN TRUST 1996-2
(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 0-21971 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
March 20, 1997 pursuant to Section 3.04(b) of
the Pooling and Servicing Agreement dated as
of November 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 1996-2.
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 1996-2 by the
undersigned hereunto duly authorized.
HOUSEHOLD FINANCE CORPORATION,
as Servicer of and on behalf of the
REVOLVING HOME EQUITY LOAN TRUST 1996-2
(Registrant)
By: /s/ J. W. Blenke
J. W. Blenke
Authorized Representative
Dated: March 25, 1997
- 2 -<PAGE>
EXHIBIT INDEX
Exhibit
Number Exhibit Page
4
99(a) Monthly Servicing Report to Trustee dated March 20, 1997
pursuant to Section 3.04(b) of the Pooling and Servicing
Agreement dated as of November 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 1996-2.
- 3 -
HE96-2.8k
Household Finance Corporation
Household Revolving Home Equity Loan Trust 1996-2
Revolving Home Equity Loan Asset Backed Certificates - Series 1996-2
P & S Agreement Date: November 1, 1996
Original Settlement Date: November 26, 1996
Series Number of Class A-1 Certificates: 441919AK3
Original Sale Balance: $776,373,000
Servicer Certificate (Page 1 of 3)
Distribution Date: 03/20/97
Investor Certificateholder Floating Allocation Percentage 97.50%
Investor Certificateholder Fixed Allocation Percentage 97.50%
Aggregate Amount of Collections 23,894,172.28
Aggregate Amount of Interest Collections 8,969,624.19
Aggregate Amount of Principal Collections 15,089,542.01
Class A Interest Collections 8,745,383.58
Class A Principal Collections 13,161,431.49
Seller Interest Collections 224,240.61
Seller Principal Collections 1,928,110.52
Weighted Average Loan Rate 13.65%
Net Loan Rate 12.65%
Weighted Average Maximum Loan Rate 18.55%
Class A-1 Certificate Rate 5.5150%
Maximum Investor Certificate Rate 12.6500%
Class A-1 Certificate Interest Distributed 3,313,113.92
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) 14,712,303.46
Alternative Principal Dist. Amount (APDA) 13,161,431.49
Rapid Amortization Period? (Y=1, N=0) 0.00
Scheduled Principal Distribution Amount (SPDA) 13,161,431.49
Principal allocable to Class A-1 0.00
SPDA deposited to Funding Account 13,161,431.49
Subsequent Funding Mortgage Loans Purchased in Period 0.00
Cumulative Subsequent Funding Mortgage Loans Purchased 0.00
Accelerated Principal Distribution Amount 0.00
APDA allocable to Class A-1 0.00
Reimbursement to Credit Enhancer 0.00
Spread Trigger hit? No
Loss Trigger hit? No
Reduction in Certificate Principal Balance due to Current Class A-1
Liquidation Loss Amount 34,700.59
Cumulative Investor Liquidation Loss Amount 34,700.59
Total Principal allocable to A-1 34,700.59
Beginning Class A-1 Certificate Principal Balance 772,387,652.13
Ending Class A-1 Certificate Principal Balance 772,352,951.54
Pool Factor (PF) 0.9948220
Retransfer Deposit Amount (non 2.07 transfers) 0.00
Servicing Fees Distributed 613,173.22
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 34,700.59
Investor Loss Reduction Amount 0.00
Beginning Pool Balance 755,714,720.17
Ending Pool Balance 742,516,559.27
Beginning Invested Amount 776,369,056.13
Ending Invested Amount 776,334,355.54
Servicer Certificate (Page 2 of 3)
Distribution Date: 03/20/97
Beginning Seller Principal Balance 19,906,856.87
Ending Seller Principal Balance 19,904,828.05
Additional Balances 1,928,110.52
Beginning Funding Account Balance 40,561,192.83
Ending Funding Account Balance 53,722,624.32
Ending Funding Account Balance % (before any purchase of Subsequent Loans or
release to Certs.) 6.75%
Ending Funding Account Balance % (after purchase of Subsequent Loans or
release to Certs.) 6.75%
Principal Balance of Subsequent Funding Loans Purchased in Period $0.00
Principal Collections to purchase Additional Balances and/or paid to Cert.
$0.00
Investment Earnings on Funding Account $164,993.92
Excess Funding Amount $0.00
Beginning Spread Account Balance 2,786,983.00
Ending Spread Account Balance 2,786,983.00
Beginning Seller Interest 2.63%
Ending Seller's Interest 2.68%
Delinquency & REO Status
30 - 59 days (Del Stat 1)
No. of Accounts
Trust Balance 1,255
60 - 89 days (Del Stat 2) 44,170,615.92
No. of Accounts 195
Trust Balance 7,443,409.27
90+ (Del Stat 3+)
No. of Accounts 214
Trust Balance 7,943,916.45
REO
No. of Accounts 1
Trust Balance 14,509.39
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-Funded Amount 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 2,152,351.13
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
Net Yield 7.40%
Servicer Certificate (Page 3 of 3)
Distribution Date: 03/20/97
Total Available Funds
Aggregate Amount of Collections 23,894,172.28
Deposit for principal not used to purchase subsequent loans 0.00
Interest Earnings on the Funding Account 164,993.92
Total 24,059,166.20
Application of Available Funds
Servicing Fee 613,173.22
Prinicpal and Interest to Class A-1 3,347,814.51
Seller's portion of Principal and Interest 2,152,351.13
Funds deposited into Funding Account (Net) 13,161,431.49
Funds deposited into Spread Account 0.00
Excess funds released to Seller 4,784,395.85
Total 24,059,166.20
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
Statement to Certificateholders (Page 1 of 1)
Distribution Date: 03/20/97
INVESTOR CERTIFICATES DISTRIBUTION SUMMARY (PER $1000)
Class A Certificateholder Floating Allocation Percentage 97.5000%
Class A Certificateholder Fixed Allocation Percentage 97.5000%
Beginning Class A-1 Certificate Balance 772,387,652.13
Class A-1 Certificate Rate 5.515000%
Class A-1 Certificate Interest Distributed 4.267425
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 0.044696
Maximum Principal Distribution Amount 18.950045
Scheduled Principal Distribution Amount (SPDA) 16.952459
Accelerated Principal Distribution Amount 0.000000
Aggregate Investor Liquidation Loss Amount Distributed 0.044696
Total Amount Distributed to Certificateholders 4.267425
Principal Collections deposited into Funding Account 13,161,431.49
Ending Funding Account Balance 53,722,624.32
Ending Class A-1 Certificate Balance 772,352,951.54
Class A-1 Factor 0.9948220
Pool Factor (PF) 0.9948220
Unreimbursed Liquidation Loss Amount $0
Accrued Interest on Unreimbursed Liquidation Loss Amount $0
Accrued & Unpaid Interest on Unreimbursed Liquidation Loss Amount $0
Class A Servicing Fee 613,173.22
Beginning Invested Amount 776,369,056.13
Ending Invested Amount 776,334,355.54
Beginning Pool Balance 755,714,720.17
Ending Pool Balance 742,516,559.27
Spread Account Draw Amount 0.00
Credit Enhancement Draw Amount 0.00
DELINQUENCY & REO STATUS
30 - 59 days (Del Stat 1)
No. of Accounts 1,255
Trust Balance 44,170,615.92
60 - 89 days (Del Stat 2)
No. of Accounts 195
Trust Balance 7,443,409.27
90+ (Del Stat 3+)
No. of Accounts 214
Trust Balance 7,943,916.45
REO
No. of Accounts 1
Trust Balance 14,509.39
Aggregate Liquidation Loss Amount for Liquidated Loans 39,635.35
Class A-1 Certificate Rate for Next Distribution Date To be updated
Amount of any Draws on the Policy 0.00
Subsequent Mortgage Loans
No. of Accounts 0.00
Trust Balance 0.00
Cumulative No. of Accounts 0.00
Cumulative Trust Balance 0.00
Retransferred Mortgage Loans pursuant to 2.07
Number of Mortgage Loans Retransferred pursuant to 2.07 0
Cumulative Number of Mortgage Loans Retransferred pursuant to 2.07 0
Mortgage Loans Retransferred pursuant to 2.07 ($) 0.00
Cumulative Mortgage Loans Retransferred pursuant to 2.07 ($) 0.00
