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): December 26, 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)
333-14041-01 33-0745168
(Commission File Number) (IRS Employer Identification No.)
3 Park Plaza, Irvine, California 92614
Attention: Block Mortgage Finance
Asset Backed Certificates, Series 1997-1
(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 December, 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 December, 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,
1996
By: /s/ Bret G. Wilson
-----------------------
Bret G. Wilson
Title: Vice President,
Mortgage Operations
Date: January 6, 1998
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
99.1 Statement to Certificateholders
Relating to December, 1997,
Distributions to Holders
of Block Mortgage
Finance Asset Backed
Certificates, Series 1997-1
<TABLE>
<CAPTION>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1997-1
Statement To Certificateholders
Master REMIC
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DISTRIBUTIONS IN DOLLARS
PRIOR CURRENT
ORIGINAL PRINCIPAL REALIZED DEFERRED PRINCIPAL
CLASS FACE VALUE BALANCE INTEREST PRINCIPAL TOTAL LOSSES INTEREST BALANCE
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 23,615,000.00 12,288,233.64 67,073.28 1,196,549.40 1,263,622.68 0.00 0.00 11,091,684.24
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 31,486,724.75 160,444.54 3,892,187.46 4,052,632.00 0.00 0.00 27,594,537.29
X-1 0.00 0.00 543.62 0.00 543.62 0.00 0.00 0.00
X-2 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
MR 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 79,302,958.39 441,076.11 5,088,736.86 5,529,812.97 0.00 0.00 74,214,221.53
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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
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 09367MAA7 520.357131 2.840283 50.669041 53.509324 469.688090 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 739.541637 3.768427 91.417406 95.185832 648.124232 5.917500% 6.198750%
X-1 0.000000 0.005344 0.000000 0.005344 0.000000 5.311427% #N/A
X-2 0.000000 0.000000 0.000000 0.000000 0.000000 4.292560% #N/A
MR 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000% 0.000000%
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SELLER: Block Financial Corporation ADMINISTRATOR: Vince Valdes
SERVICER: Block Financial Corporation Bankers Trust Company
LEAD UNDERWRITER: Morgan Stanley & Co. 3 Park Plaza
RECORD DATE: November 28, 1997 Irvine, CA 92714
DISTRIBUTION DATE: December 26, 1997 FACTOR INFORMATION: (800) 735-7777
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Page 1 of 5 (C) COPYRIGHT 1997 Bankers Trust Company
</TABLE>
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<TABLE>
<CAPTION>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1997-1
Statement To Certificateholders
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Distribution Date: December 26, 1997
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<S> <C> <C> <C> <C> <C>
DELINQUENT LOAN INFORMATION: 1 - 30 31 - 60 60 - 90 91+
(Statistics Do Not Include Foreclosures, Bankruptcies & REOs) DAYS DAYS DAYS DAYS TOTAL
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- -----------------
GROUP I
- -----------------
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PRINCIPAL BALANCE 2,120,782.42 247,502.87 54,999.95 135,884.24 2,559,169.48
PERCENTAGE OF POOL BALANCE 4.3065% 0.5026% 0.1117% 0.2759% 5.1967%
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NUMBER OF LOANS 42 7 1 3 53
PERCENTAGE OF LOANS IN POOL 3.0792% 0.5132% 0.0733% 0.2199% 3.8856%
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- -----------------
GROUP II
- -----------------
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PRINCIPAL BALANCE 1,732,131.72 524,938.53 0.00 0.00 2,257,070.25
PERCENTAGE OF POOL BALANCE 5.9552% 1.8048% 0.0000% 0.0000% 7.7599%
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NUMBER OF LOANS 14 5 0 0 19
PERCENTAGE OF LOANS IN POOL 5.5118% 1.9685% 0.0000% 0.0000% 7.4803%
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FORECLOSURE LOAN INFORMATION:
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- -----------------
GROUP I
- -----------------
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PRINCIPAL BALANCE 11,910.00 211,105.50 213,012.78 1,087,648.01 1,523,676.29
PERCENTAGE OF POOL BALANCE 0.0242% 0.4287% 0.4326% 2.2086% 3.0940%
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NUMBER OF LOANS 1 3 4 23 31
PERCENTAGE OF LOANS IN POOL 0.0733% 0.2199% 0.2933% 1.6862% 2.2727%
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- -----------------
GROUP II
- -----------------
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PRINCIPAL BALANCE 0.00 301,370.55 0.00 96,276.40 397,646.95
PERCENTAGE OF POOL BALANCE 0.0000% 1.0361% 0.0000% 0.3310% 1.3671%
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NUMBER OF LOANS 0 2 0 1 3
PERCENTAGE OF LOANS IN POOL 0.0000% 0.7874% 0.0000% 0.3937% 1.1811%
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BANKRUPTCY LOAN INFORMATION:
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- -----------------
GROUP I
- -----------------
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PRINCIPAL BALANCE 484,086.70 82,020.82 211,506.31 527,903.21 1,305,517.04
PERCENTAGE OF POOL BALANCE 0.9830% 0.1666% 0.4295% 1.0720% 2.6510%
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NUMBER OF LOANS 17 2 3 9 31
PERCENTAGE OF LOANS IN POOL 1.2463% 0.1466% 0.2199% 0.6598% 2.2727%
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- -----------------
GROUP II
- -----------------
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PRINCIPAL BALANCE 124,670.13 0.00 41,039.74 159,892.62 325,602.49
PERCENTAGE OF POOL BALANCE 0.4286% 0.0000% 0.1411% 0.5497% 1.1194%
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NUMBER OF LOANS 2 0 1 2 5
PERCENTAGE OF LOANS IN POOL 0.7874% 0.0000% 0.3937% 0.7874% 1.9685%
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REO LOAN INFORMATION:
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- -----------------
GROUP I
- -----------------
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PRINCIPAL BALANCE 0.00 0.00 0.00 141,166.58 141,166.58
PERCENTAGE OF POOL BALANCE 0.0000% 0.0000% 0.0000% 0.2867% 0.2867%
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NUMBER OF LOANS 0 0 0 3 3
PERCENTAGE OF LOANS IN POOL 0.0000% 0.0000% 0.0000% 0.2199% 0.2199%
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- -----------------
GROUP II
- -----------------
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PRINCIPAL BALANCE 0.00 0.00 0.00 341,078.33 341,078.33
PERCENTAGE OF POOL BALANCE 0.0000% 0.0000% 0.0000% 1.1726% 1.1726%
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NUMBER OF LOANS 0 0 0 1 1
PERCENTAGE OF LOANS IN POOL 0.0000% 0.0000% 0.0000% 0.3937% 0.3937%
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Page 2 of 5 (C) COPYRIGHT 1997 Bankers Trust Company
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<PAGE>
<TABLE>
<CAPTION>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1997-1
Statement To Certificateholders
- -----------------------------------------------------------------------------------------------------------------------------------
Distribution Date: December 26, 1997
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<S> <C> <C>
SERVICER ADVANCES INCLUDED IN THIS DISTRIBUTION: 141,100.49
SERVICER ADVANCES OUTSTANDING: 0.00
ACCRUED SERVCING FEE THE THE CURRENT PERIOD : 34,602.61
PLUS ANY ADDITIONAL SERVICING FEES : 0.00
-------------------
34,602.61
LESS PERMITTED REDUCTIONS TO SERVICING FEES : (4,879.70)
------------------
TOTAL SERVICING FEES DUE MASTER SERVICER : 29,722.91
ACCRUED SERVICING FEES COLLECTED FOR CURRENT PERIOD : 28,431.61
COMPENSATING INTEREST: 4,879.70
-------------------
TOTAL SERVICING FEES COLLECTED MASTER SERVICER: 23,551.91
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GROUP I MONTHLY ADVANCE AMOUNT: 107,160.95
GROUP II MONTHLY ADVANCE AMOUNT: 33,939.54
TOTAL TRUSTEE FEES DUE : 1,384.10
TOTAL INSURANCE AMOUNT DUE : 12,456.94
PRINCIPAL REMITTANCE AMOUNTS:
SCHEDULED PRINCIPAL 81,544.24
CURTAILMENTS 36,573.35
PREPAYMENTS IN FULL 4,596,240.06
NET LIQUIDATION PROCEEDS 0.00
INSURANCE PRINCIPAL PROCEEDS 0.00
RELEASED MORTGAGED PROPERTY PROCEEDS 0.00
REPURCHASED PRINCIPAL AMOUNTS 0.00
SUBSTITUTION ADJUSTMENTS 0.00
-------------------
TOTAL PRINCIPAL DISTRIBUTED: 4,714,357.65
TOTAL AMOUNT OF LIQUIDATION LOAN LOSSES AS OF THE CURRENT DISTRIBUTION DATE: 0.00
AGGREGATE AMOUNT OF LIQUIDATION LOAN LOSSES AS OF THE CURRENT DISTRIBUTION DATE: 0.00
BOOK VALUE OF REO PROPERTY: 0.00
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Page 3 of 5 (C) COPYRIGHT 1997 Bankers Trust Company
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1997-1
Statement To Certificateholders
- -----------------------------------------------------------------------------------------------------------------------------------
Distribution Date: December 26,1997
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN THE POOL AS OF THE PRIOR DISTRIBUTION PERIOD: 1,664
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN THE POOL AS OF THE CURRENT DISTRIBUTION PERIOD: 1,618
AGGREGATE PRINCIPAL BALANCE OF LOANS IN THE POOL AS OF THE PRIOR DISTRIBUTION PERIOD: 83,046,257.12
AGGREGATE PRINCIPAL BALANCE OF LOANS IN THE POOL AS OF THE CURRENT DISTRIBUTION PERIOD: 78,331,899.47
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP I AS OF THE PRIOR DISTRIBUTION PERIOD: 1,385
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP I AS OF THE CURRENT DISTRIBUTION PERIOD: 1,364
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP I AS OF THE PRIOR DISTRIBUTION PERIOD: 50,227,838.44
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP I AS OF THE CURRENT DISTRIBUTION PERIOD: 49,245,692.14
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP II AS OF THE PRIOR DISTRIBUTION PERIOD: 279
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP II AS OF THE CURRENT DISTRIBUTION PERIOD: 254
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP II AS OF THE PRIOR DISTRIBUTION PERIOD: 32,818,418.68
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP II AS OF THE CURRENT DISTRIBUTION PERIOD: 29,086,207.33
GROUP I SUBORDINATION INCREASE AMOUNT: 211,920.68
GROUP II SUBORDINATION INCREASE AMOUNT: 157,019.27
GROUP I SUBORDINATION DEFICIT AMOUNT: 0.00
GROUP II SUBORDINATION DEFICIT AMOUNT: 0.00
GROUP I PRINCIPAL REMITTANCE AMOUNT: 1,196,549.40
GROUP II PRINCIPAL REMITTANCE AMOUNT: 3,892,187.46
GROUP I WEIGHTED AVERAGE COUPON AS OF THE CURRENT DISTRIBUTION DATE: 12.3405%
GROUP II WEIGHTED AVERAGE COUPON AS OF THE CURRENT DISTRIBUTION DATE: 10.8100%
GROUP I SUBSTITUTION ADJUSTMENT AMOUNT 0.00
GROUP II SUBSTITUTION ADJUSTMENT AMOUNT 0.00
GROUP I LOAN REPURCHASE AMOUNT 0.00
GROUP II LOAN REPURCHASE AMOUNT 0.00
GROUP I LARGEST LOAN BALANCE 307,128.41
GROUP II LARGEST LOAN BALANCE 631,796.07
TOTAL AMOUNT OF INSURED PAYMENTS INCLUDED IN THE DISTRIBUTION AMOUNT
CLASS A-1 0.00
CLASS A-2 0.00
CLASS A-3 0.00
CLASS A-4 0.00
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Page 4 of 5 (C) COPYRIGHT 1997 Bankers Trust Company
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1997-1
Statement To Certificateholders
- -----------------------------------------------------------------------------------------------------------------------------------
Distribution Date: December 26, 1997
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
TOTAL AMOUNT OF CARRY FORWARD AMOUNT INCLUDED IN DISTRIBUTION AMOUNT :
CLASS A-1 0.00
CLASS A-2 0.00
CLASS A-3 0.00
CLASS A-4 0.00
CLASS X-1 2,403,171.64
CLASS X-2 1,097,799.31
BASIS RISK CARRYOVER AMOUNT INCLUDED IN DISTRIBUTION AMOUNT : 0.00
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Page 5 of 5 (C) COPYRIGHT 1997 Bankers Trust Company
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