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 July 20, 1998
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
July 20, 1998 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: July 27, 1998
- 2 -<PAGE>
EXHIBIT INDEX
Exhibit
Number Exhibit Page
4
99(a) Monthly Servicing Report to Trustee dated July 20, 1998
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: 07/20/98
Investor Certificateholder Floating
Allocation Percentage 96.51%
Investor Certificateholder Fixed
Allocation Percentage 97.32%
Aggregate Amount of Collections 32,776,352.02
Aggregate Amount of Interest Collections 6,649,688.70
Aggregate Amount of Principal Collections 26,126,663.32
Class A Interest Collections 6,417,829.25
Class A Principal Collections 25,097,041.08
Seller Interest Collections 231,859.45
Seller Principal Collections 1,029,622.24
Weighted Average Loan Rate 13.66%
Net Loan Rate 12.66%
Weighted Average Maximum Loan Rate 18.52%
Class A-1 Certificate Rate 5.7963%
Maximum Investor Certificate Rate 12.6600%
Class A-1 Certificate Interest Distributed 2,435,595.81
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) 25,425,998.46
Alternative Principal Dist. Amount (APDA) 25,097,041.08
Rapid Amortization Period? (Y=1, N=0) 0.00
Scheduled Principal Distribution Amount (SPDA) 25,097,041.08
Principal allocable to Class A-1 25,097,041.08
SPDA deposited to Funding Account 0.00
Subsequent Funding Mortgage Loans Purchased in Period 0.00
Cumulative Subsequent Funding Mortgage
Loans Purchased 135,722,113.20
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 918,895.09
Cumulative Investor Liquidation Loss Amount 918,895.09
Total Principal allocable to A-1 26,015,936.17
Beginning Class A-1 Certificate Principal Balance 540,259,707.64
Ending Class A-1 Certificate Principal Balance 514,243,771.47
Pool Factor (PF) 0.6623669
Servicer Certificate (Page 2 of 3)
Distribution Date: 07/20/98
Retransfer Deposit Amount (non 2.07 transfers) 0.00
Servicing Fees Distributed 453,534.26
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 918,895.09
Investor Loss Reduction Amount 0.00
Beginning Pool Balance 563,903,125.35
Ending Pool Balance 537,852,061.52
Beginning Invested Amount 544,241,111.64
Ending Invested Amount 518,225,175.47
Beginning Seller Principal Balance 19,662,013.71
Ending Seller Principal Balance 19,626,886.05
Additional Balances 1,029,622.24
Beginning Funding Account Balance 0.00
Ending Funding Account Balance 0.00
Ending Funding Account Balance % (before any purchase of
Subsequent Loans or release to Certs.) 0.00%
Ending Funding Account Balance % (after purchase of Subsequent
Loans or release to Certs.) 0.00%
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 $0.00
Excess Funding Amount $0.00
Beginning Spread Account Balance 2,786,983.00
Ending Spread Account Balance 2,786,983.00
Beginning Seller Interest 3.49%
Ending Seller's Interest 3.65%
Delinquency & REO Status
30 - 59 days (Del Stat 1)
No. of Accounts 1,130
Trust Balance 38,587,126.38
60 - 89 days (Del Stat 2)
No. of Accounts 269
Trust Balance 10,008,046.01
90+ (Del Stat 3+)
No. of Accounts 601
Trust Balance 18,296,869.29
REO
No. of Accounts 61
Trust Balance 2,576,341.19
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 Amou No
Servicer Certificate (Page 3 of 3)
Distribution Date: 07/20/98
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 1,261,481.69
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 5.75%
Total Available Funds
Aggregate Amount of Collections 32,776,352.02
Deposit for principal not used to purchase
subsequent loans 0.00
Interest Earnings on the Funding Account 0.00
Total 32,776,352.02
Application of Available Funds
Servicing Fee 453,534.26
Prinicpal and Interest to Class A-1 28,451,531.98
Seller's portion of Principal and Interest 1,261,481.69
Funds deposited into Funding Account (Net) 0.00
Funds deposited into Spread Account 0.00
Excess funds released to Seller 2,609,804.09
Total 32,776,352.02
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 2)
Distribution Date: 07/20/98
INVESTOR CERTIFICATES DISTRIBUTION SUMMARY (PER $1000)
Class A Certificateholder Floating
Allocation Percentage 96.5132%
Class A Certificateholder Fixed Allocation Percentage 97.3182%
Beginning Class A-1 Certificate Balance 540,259,707.64
Class A-1 Certificate Rate 5.796250%
Class A-1 Certificate Interest Distributed 3.137146
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 33.509584
Maximum Principal Distribution Amount 32.749720
Scheduled Principal Distribution Amount (SPDA) 32.326010
Accelerated Principal Distribution Amount 0.000000
Aggregate Investor Liquidation Loss
Amount Distributed 1.183574
Total Amount Distributed to Certificateholders 35.463156
Principal Collections deposited into Funding Account 0.00
Ending Funding Account Balance 0.00
Ending Class A-1 Certificate Balance 514,243,771.47
Class A-1 Factor 0.6623669
Pool Factor (PF) 0.6623669
Unreimbursed Liquidation Loss Amount $0
Accrued Interest on Unreimbursed Liquidation Loss Amount $0
Accrued & Unpaid Interest on Unreimbursed
Liquidation Loss Amount $0
Class A Servicing Fee 453,534.26
Beginning Invested Amount 544,241,111.64
Ending Invested Amount 518,225,175.47
Beginning Pool Balance 563,903,125.35
Ending Pool Balance 537,852,061.52
Spread Account Draw Amount 0.00
Credit Enhancement Draw Amount 0.00
Statement to Certificateholders (Page 2 of 2)
Distribution Date: 07/20/98
DELINQUENCY & REO STATUS
30 - 59 days (Del Stat 1)
No. of Accounts 1,130
Trust Balance 38,587,126.38
60 - 89 days (Del Stat 2)
No. of Accounts 269
Trust Balance 10,008,046.01
90+ (Del Stat 3+)
No. of Accounts 601
Trust Balance 18,296,869.29
REO
No. of Accounts 61
Trust Balance 2,576,341.19
Aggregate Liquidation Loss Amount for
Liquidated Loans 620,195.38
Class A-1 Certificate Rate for Next
Distribution Date To be updated
Amount of any Draws on the Policy 0.00
Subsequent Mortgage Loans
No. of Accounts 0.00
Trust Balance 0.00
Cumulative No. of Accounts 4,332.00
Cumulative Trust Balance 135,722,113.20
Retransferred Mortgage Loans pursuant to 2.07
Number of Mortgage Loans Retransferred pursuant to 2.07 0
Cumulative Number of Mortgage Loans Retransferred
pursuant to 2.07 0
Mortgage Loans Retransferred pursuant to 2.07 ($) 0.00
Cumulative Mortgage Loans Retransferred
pursuant to 2.07 ($) 0.00
