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 August 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
August 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: August 25, 1998
- 2 -<PAGE>
EXHIBIT INDEX
Exhibit
Number Exhibit Page
4
99(a) Monthly Servicing Report to Trustee dated August 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: 08/20/98
Investor Certificateholder Floating
Allocation Percentage 96.35%
Investor Certificateholder Fixed
Allocation Percentage 97.32%
Aggregate Amount of Collections 28,533,867.11
Aggregate Amount of Interest Collections 5,916,275.52
Aggregate Amount of Principal Collections 22,617,591.59
Class A Interest Collections 5,700,383.32
Class A Principal Collections 21,468,218.96
Seller Interest Collections 215,892.20
Seller Principal Collections 1,149,372.63
Weighted Average Loan Rate 13.65%
Net Loan Rate 12.65%
Weighted Average Maximum Loan Rate 18.74%
Class A-1 Certificate Rate 5.7963%
Maximum Investor Certificate Rate 12.6500%
Class A-1 Certificate Interest Distributed 2,566,701.37
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) 22,011,033.02
Alternative Principal Dist. Amount (APDA) 21,468,218.96
Rapid Amortization Period? (Y=1, N=0) 0.00
Scheduled Principal Distribution Amount (SPDA) 21,468,218.96
Principal allocable to Class A-1 21,468,218.96
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 0.00
Cumulative Investor Liquidation Loss Amount 0.00
Total Principal allocable to A-1 21,468,218.96
Beginning Class A-1 Certificate Principal Balance 514,243,771.47
Ending Class A-1 Certificate Principal Balance 492,775,552.51
Pool Factor (PF) 0.6347150
Servicer Certificate (Page 2 of 3)
Distribution Date: 08/20/98
Retransfer Deposit Amount (non 2.07 transfers) 0.00
Servicing Fees Distributed 431,854.31
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 0.00*
Investor Loss Reduction Amount 0.00
Beginning Pool Balance 537,852,061.52
Ending Pool Balance 516,746,407.57
Beginning Invested Amount 518,225,175.47
Ending Invested Amount 496,756,956.51
Beginning Seller Principal Balance 19,626,886.05
Ending Seller Principal Balance 19,989,451.06
Additional Balances 1,149,372.63
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 3.65%
Ending Seller's Interest 3.87%
Delinquency & REO Status
30 - 59 days (Del Stat 1)
No. of Accounts 1,204
Trust Balance 41,183,550.46
60 - 89 days (Del Stat 2)
No. of Accounts 310
Trust Balance 10,486,015.23
90+ (Del Stat 3+)
No. of Accounts 600
Trust Balance 19,632,523.34
REO
No. of Accounts 62
Trust Balance 2,657,499.29
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: 08/20/98
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 1,365,264.83
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 6.26%
Total Available Funds
Aggregate Amount of Collections 28,533,867.11
Deposit for principal not used to purchase
subsequent loans 0.00
Interest Earnings on the Funding Account 0.00
Total 28,533,867.11
Application of Available Funds
Servicing Fee 431,854.31
Prinicpal and Interest to Class A-1 24,034,920.33
Seller's portion of Principal and Interest 1,365,264.83
Funds deposited into Funding Account (Net) 0.00
Funds deposited into Spread Account 0.00
Excess funds released to Seller 2,701,827.64
Total 28,533,867.11
*As a result of the merger with Beneficial, Household
has adopted Beneficial's charge-off policy relating to
real estate secured receivables. This has resulted in
lower net realized losses this month.
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: 08/20/98
INVESTOR CERTIFICATES DISTRIBUTION SUMMARY (PER $1000)
Class A Certificateholder Floating
Allocation Percentage 96.3509%
Class A Certificateholder Fixed Allocation Percentage 97.3182%
Beginning Class A-1 Certificate Balance 514,243,771.47
Class A-1 Certificate Rate 5.796250%
Class A-1 Certificate Interest Distributed 3.306016
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 27.651939
Maximum Principal Distribution Amount 28.351106
Scheduled Principal Distribution Amount (SPDA) 27.651939
Accelerated Principal Distribution Amount 0.000000
Aggregate Investor Liquidation Loss Amount
Distributed 0.000000
Total Amount Distributed to Certificateholders 30.957955
Principal Collections deposited into Funding Account 0.00
Ending Funding Account Balance 0.00
Ending Class A-1 Certificate Balance 492,775,552.51
Class A-1 Factor 0.6347150
Pool Factor (PF) 0.6347150
Unreimbursed Liquidation Loss Amount $0
Accrued Interest on Unreimbursed Liquidation Loss Amount $0
Accrued & Unpaid Interest on Unreimbursed
Liquidation Loss Amount $0
Class A Servicing Fee 431,854.31
Beginning Invested Amount 518,225,175.47
Ending Invested Amount 496,756,956.51
Beginning Pool Balance 537,852,061.52
Ending Pool Balance 516,746,407.57
Spread Account Draw Amount 0.00
Credit Enhancement Draw Amount 0.00
Statement to Certificateholders (Page 2 of 2)
Distribution Date: 08/20/98
DELINQUENCY & REO STATUS
30 - 59 days (Del Stat 1)
No. of Accounts 1,204
Trust Balance 41,183,550.46
60 - 89 days (Del Stat 2)
No. of Accounts 310
Trust Balance 10,486,015.23
90+ (Del Stat 3+)
No. of Accounts 600
Trust Balance 19,632,523.34
REO
No. of Accounts 62
Trust Balance 2,657,499.29
Aggregate Liquidation Loss Amount for Liquidated Loans 0.00
Class A-1 Certificate Rate for Next
Distribution Date To be updated
Amount of any Draws on the Policy 0.00
Subsequent Mortgage Loans
No. of Accounts 0.00
Trust Balance 0.00
Cumulative No. of Accounts 4,332.00
Cumulative Trust Balance 135,722,113.20
Retransferred Mortgage Loans pursuant to 2.07
Number of Mortgage Loans Retransferred
pursuant to 2.07 0
Cumulative Number of Mortgage Loans
Retransferred pursuant to 2.07 0
Mortgage Loans Retransferred pursuant to 2.07 ($) 0.00
Cumulative Mortgage Loans Retransferred
pursuant to 2.07 ($) 0.00