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): February
25, 1997
TRUST CREATED BY BLOCK MORTGAGE FINANCE, INC. (under a
Pooling and Servicing Agreement dated as of December 31,
1996, which Trust is the Issuer of Block Mortgage Finance
Asset Backed Certificates, Series 1997-1)
(Exact name of registrant as specified in its charter)
New York
(State or other jurisdiction of incorporation)
333-14041 Applied For
(Commission File Number) (IRS Employer Identification No.)
3 Park Plaza, Irvine, California
Attention: Block Mortgage Finance
Asset Backed Certificates, Series 1997-1 92614
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 714-253-7575
Not applicable
(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS.
Attached hereto is a copy of the Statement to Certificateholders
with respect to the February, 1997, distribution to Certificateholders,
as provided to the Certificateholders by the Trustee.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
<PAGE>
Exhibit 99.1 Statement to Certificateholders Relating to February, 1997,
Distributions to Holders of Block Mortgage Finance Asset
Backed Certificates, Series 1997-1
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
BLOCK FINANCIAL CORPORATION, not in its individual
capacity, but solely as duly authorized agent of the
Registrant pursuant to Section 8.17(C) of the Pooling and
Servicing Agreement, dated as of December 31, 1997
By: /s/ Bret G. Wilson
Name: Bret G. Wilson
Title: Vice President, Mortgage Operations
Date: March 12, 1997
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
99.1 Statement to Certificateholders
Relating to February, 1997,
Distributions to Holders of Block
Mortgage Finance Asset Backed
Certificates, Series 1997-1
<PAGE>
Block Financial
February Distribution
<TABLE>
<CAPTION>
Block Mortgage Finance Corporation
Asset - Backed Certificates
Series 1997-1
Statement To Certificateholders
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DISTRIBUTIONS IN DOLLARS
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 23,615,000.00 23,615,000.00 128,898.54 571,579.86 700,478.40 0.00 0.00 23,043,420.14
A-2 15,110,000.00 15,110,000.00 86,252.92 0.00 86,252.92 0.00 0.00 15,110,000.00
A-3 20,418,000.00 20,418,000.00 126,761.75 0.00 126,761.75 0.00 0.00 20,418,000.00
A-4 42,576,000.00 42,576,000.00 182,970.36 661,154.71 844,125.07 0.00 0.00 41,914,845.29
X-1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
X-2 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
R 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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TOTALS 101,719,000.00 101,719,000.00 524,883.57 1,232,734.57 1,757,618.14 0.00 0.00 100,486,265.43
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</TABLE>
<TABLE>
<CAPTION>
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FACTOR INFORMATION PER $1000 OF ORIGINAL FACE PASS-THROUGH
PRIOR CURRENT RATES
PRINCIPAL PRINCIPAL
CLASS CUSIP BALANCE INTEREST PRINCIPAL TOTAL BALANCE CURRENT NEXT
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 09367MAA7 1,000.000000 5.458333 24.204102 29.662435 975.795898 6.550000% 6.550000%
A-2 09367MAB5 1,000.000000 5.708334 0.000000 5.708334 1,000.000000 6.850000% 6.850000%
A-3 09367MAC3 1,000.000000 6.208333 0.000000 6.208333 1,000.000000 7.450000% 7.450000%
A-4 09367MAD1 1,000.000000 4.297500 15.528812 19.826312 984.471188 5.730000% 5.605000%
X-1 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000% 0.000000%
X-2 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000% 0.000000%
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DEPOSITOR: Block Mortgage Finance Corporation ADMINISTRATOR: Serena M. Gutierrez
SERVICERS: NF Investments Incorporated Bankers Trust Company
LEAD UNDERWRITER: Morgan Stanley Incorporated 3 Park Plaza
RECORD DATE: January 31, 1997 Irvine, CA 92714
DISTRIBUTION DATE: February 25, 1997 FACTOR INFORMATION: (800) 735-7777
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Page 1 of 4 (C) COPYRIGHT 1997 Bankers Trust Company
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Block Mortgage Finance Corporation
Asset - Backed Certificates
Series 1997-1
Statement To Certificateholders
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Distribution Date: February 25, 1997
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- -------------------------------------------------------------------------------------------------------------------------------
GROUP 1 GROUP 2 TOTALS
<S> <C> <C> <C>
SERVICER ADVANCES:
INTEREST 528,299.31 52,108.73 580,408.04
PRINCIPAL 0.00 0.00 0.00
ACCRUED SERVICING FEE FOR THE CURRENT PERIOD: 24,699.77 17,740.49 42,440.26
PLUS ADDITIONAL SERVICING COMPENSATION: 0.00 0.00 0.00
----- ----- ----
TOTAL SERVICING FEES DUE MASTER SERVICER: 24,699.77 17,740.49 42,440.26
LESS:~ AMOUNTS TO COVER INTEREST SHORTFALLS: 0.00 0.00 0.00
LESS:~ DELINQUENT SERVICE FEES: 22,209.37 2,857.11 25,066.48
---------- --------- ---------
COLLECTED SERVICING FEES FOR CURRENT PERIOD: 2,490.40 14,883.38 17,373.78
0.024483 0.146319 0.170802
BEGINNING NUMBER OF LOANS: 1,607 355 1,962
ENDING NUMBER OF LOANS: 1,602 353 1,955
BEGINNING PRINCIPAL BALANCE OF POOL: 59,278,916.96 42,576,994.55 101,855,911.51
ENDING PRINCIPAL BALANCE OF POOL: 58,948,278.08 42,057,652.38 101,005,930.46
GROUP FACTOR: 99.442232% 98.780228% 99.165506%
LARGEST LOAN BALANCE: 307,921.01 639,778.93
WEIGHTED AVERAGE TERM TO MATURITY: 0.00 0.00
CURRENT WEIGHTED AVERAGE MORTGAGE RATE: 12.363785% 9.718759% 11.258132%
NEXT WEIGHTED AVERAGE MORTGAGE RATE: 12.365300% 9.725350% 11.266056%
PRINCIPAL PREPAYMENTS:
NUMBER OF LOANS (IF PAID IN FULL): 5 2 7
PRINCIPAL BALANCE: 277,761.38 501,410.36 779,171.74
AMOUNT PER $1000 CERTIFICATE: 11.762074 33.184008 7.660041
PREPAYMENT INTEREST SHORTFALL AMOUNT INCLUDED IN DISTRIBUTION: 0.00 0.00 0.00
NONCOVERED PREPAYMENT INTEREST SHORTFALL FOR THIS DISTRIBUTION: 0.00 0.00 0.00
AVAILABLE FUNDS: 916,698.91 846,431.29 1,763,130.20
INSURED PAYMENT: 0.00 0.00 0.00
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Page 2 of 4 (C) COPYRIGHT 1997 Bankers Trust Company
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Block Mortgage Finance Corporation
Asset - Backed Certificates
Series 1997-1
Statement To Certificateholders
- -------------------------------------------------------------------------------------------------------------------------------
Distribution Date: February 25, 1997
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- -------------------------------------------------------------------------------------------------------------------------------
GROUP 1 GROUP 2 TOTALS
<S> <C> <C> <C>
CLASS A PRINCIPAL DISTRIBUTION BREAKDOWN:
SCHEDULED PRINCIPAL: 52,877.50 17,931.81 70,809.31
PRINCIPAL PREPAYMENTS: 204,521.21 503,670.13 708,191.34
CURTAILMENTS: 73,240.17 (2,259.77) 70,980.40
REPURCHASES: 0.00 0.00 0.00
LIQUIDATION PROCEEDS: 0.00 0.00 0.00
SUBORDINATION INCREASE AMOUNT: 240,940.98 141,812.54 382,753.52
----------------------------------------------
571,579.86 661,154.71 1,232,734.57
</TABLE>
<TABLE>
<CAPTION>
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DELINQUENT LOAN 0 TO 30 31 TO 60 61 TO 90 91+ LOANS IN
INFORMATION* DAYS DAYS DAYS DAYS BANKRUPTCY
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GROUP 1
PRINCIPAL BALANCE 1,329,441.95 152,944.71 87,146.88 1,555,979.75 0.00
NUMBER OF LOANS 34 3 2 31 0
2.26% 0.26% 0.15% 2.64% 0.00%
- -------------------------------------------------------------------------------------------------------------------------------
GROUP 2
PRINCIPAL BALANCE 740,337.12 0.00 0.00 79,215.42 0.00
NUMBER OF LOANS 3 0 0 1 0
1.76% 0.00% 0.00% 0.19% 0.00%
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL
PRINCIPAL BALANCE 2,069,779.07 152,944.71 87,146.88 1,635,195.17 0.00
NUMBER OF LOANS 37 3 2 32 0
2.05% 0.15% 0.09% 1.62% 0.00%
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*Delinquencies are exclusive of Foreclosures, Bankruptcies and REO Property
</TABLE>
<TABLE>
<CAPTION>
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FORECLOSURE AND
DELINQUENT LOAN 0 TO 30 31 TO 60 61 TO 90 91+
INFORMATION* DAYS DAYS DAYS DAYS
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GROUP 1
PRINCIPAL BALANCE 1,329,441.95 152,944.71 87,146.88 1,555,979.75
NUMBER OF LOANS 34 3 2 31
2.26% 0.26% 0.15% 2.64%
- ------------------------------------------------------- ----------------------------------------------------------
GROUP 2
PRINCIPAL BALANCE 740,337.12 0.00 0.00 79,215.42
NUMBER OF LOANS 3 0 0 1
1.76% 0.00% 0.00% 0.19%
- ------------------------------------------------------- ----------------------------------------------------------
TOTAL
PRINCIPAL BALANCE 2,069,779.07 152,944.71 87,146.88 1,635,195.17
NUMBER OF LOANS 37 3 2 32
2.05% 0.15% 0.09% 1.62%
- -------------------------------------------------------------------------------------------------------------------------------
*Delinquencies are exclusive of Bankruptcies and REO Property
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Page 3 of 4 (C) COPYRIGHT 1997 Bankers Trust Company
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Block Mortgage Finance Corporation
Asset - Backed Certificates
Series 1997-1
Statement To Certificateholders
- -------------------------------------------------------------------------------------------------------------------------------
Distribution Date: February 25, 1997
- -------------------------------------------------------------------------------------------------------------------------------
GROUP 1 GROUP 2 TOTALS
REO PROPERTY INFORMATION:
<S> <C> <C> <C>
BOOK VALUE OF REAL ESTATE ACQUIRED THROUGH FORECLOSURE: 0.00 0.00 0.00
AGGREGATE PRINCIPAL BALANCE OF REO LOANS: 0.00 0.00 0.00
NUMBER OF REO LOANS: 0 0 0
NEW REO PROPERTIES: TOTAL NUMBER: 0
SCH. PRIN.
GROUP LOAN NUMBER ACQUISITION DATE BOOK VALUE BALANCE
LIQUIDATED LOANS: TOTAL NUMBER: 0
GROUP LOAN NUMBER SALE DATE BALANCE
SUBORDINATION AMOUNTS:
SUBORDINATED AMOUNT after all payments and transfers: 376,857.94 142,807.09 519,665.03
REQUIRED SUBORDINATION AMOUNT: 2,667,551.26 1,596,637.30 4,264,188.56
EXCESS SUBORDINATION AMOUNT: 0.00 0.00 0.00
SUBORDINATION DEFICIT: 0.00 0.00 0.00
UNREIMBURSED MONTHLY ADVANCES: 0.00 0.00 0.00
CUMULATIVE LOSS PERCENTAGE: 0.000000% 0.000000%
90+ DELINQUENCY PERCENTAGE: 0.929135% 0.062783%
INSURER PREMIUM AMOUNT: 2,217.86 1,596.60 3,814.46
TRUSTEE FEE AMOUNT: 987.98 709.62 1,697.60
REALIZED LOSS INFORMATION:
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GROUP 1 GROUP 2 TOTAL
----------------------------------------------
PRIOR REALIZED LOSSES: 0.00 0.00 0.00
PLUS: CURRENT REALIZED LOSSES 0.00 0.00 0.00
----------------------------------------------
CUMULATIVE REALIZED LOSSES: 0.00 0.00 0.00
==============================================
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Page 4 of 4 (C) COPYRIGHT 1997 Bankers Trust Company
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