UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1997, OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ___________________
TO __________________.
Commission file number 333-24599
---------
EQUITY ONE ABS, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 52-2029487
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
103 Springer Building, 3411 Silverside Road, Wilmington, Delaware 19803
- ----------------------------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (302) 478-6160
--------------
Securities registered pursuant to Section 12(b) of the Act: None
----
Securities registered pursuant to Section 12(g) of the Act: None
----
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ ]
Not applicable
State the aggregate market value of the voting and non-voting common equity held
by non-affiliates of the registrant. The aggregate market value shall be
computed by reference to the price at which the common equity was sold, or the
average bid and asked prices of such common equity, as of a specified date
within 60 days prior to the date of filing.
Not applicable
Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date.
Not applicable
<PAGE>
This Annual Report on Form 10-K is filed by Equity One ABS, Inc. (the "Reporting
Person") on behalf of Equity One ABS, Inc. Mortgage Pass-Through Certificates,
Series 1997-1 Trust (the "Trust") established pursuant to that certain Pooling
and Servicing Agreement (the "Pooling and Servicing Agreement") dated as of June
1, 1997 by and among the Reporting Person, as depositor, Equity One, Inc., as
servicer and a seller (the "Servicer"), The Chase Manhattan Bank, as trustee
(the "Trustee"), and the various other sellers signatory thereto, pursuant to
which the Equity One ABS, Inc. Mortgage Pass-Through Certificates, Series 1997-1
(the "Certificates"), were registered under the Securities Act of 1933.
PART I
ITEM 1. BUSINESS
Omitted pursuant to First Union Residential Securitization Transactions, Inc.,
SEC No-Action Letter (April 1, 1997) (the "No-Action Letter").
ITEM 2. PROPERTIES
Pursuant to the No-Action Letter, the following represents relevant information
regarding real estate owned by the Trust:
<TABLE>
<CAPTION>
Stated
Principal
Location Type of Property Loan Number Balance Acquisition Date
-------- ---------------- ----------- --------- ----------------
<S> <C> <C> <C> <C>
535 Grouse Drive Single Family 82358 $77,587.32 12/15/97
Winchester, Virginia Residence
</TABLE>
ITEM 3. LEGAL PROCEEDINGS
The registrant knows of no material pending legal proceedings involving the
Trust or the Trustee, the Servicer or the registrant with respect to the Trust,
other than routine litigation incidental to the duties of the respective parties
under the Pooling and Servicing Agreement.
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
-2-
<PAGE>
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
(a) No established public trading market for the Certificates exists.
(b) As of December 31, 1997, the number of holders of record of the publicly
offered Certificates was 18.
(c) Omitted pursuant to the No-Action Letter.
ITEM 6. SELECTED CONSOLIDATED FINANCIAL DATA
Omitted pursuant to the No-Action Letter.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Omitted pursuant to the No-Action Letter.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
Not Applicable.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Omitted pursuant to the No-Action Letter.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.
None.
-3-
<PAGE>
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
Omitted pursuant to the No-Action Letter.
ITEM 11. EXECUTIVE COMPENSATION
Omitted pursuant to the No-Action Letter.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
(a) None.
(b) Not applicable.
(c) Not applicable.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
(a) Not applicable.
(b) Not applicable.
(c) None.
(d) None.
-4-
<PAGE>
PART IV
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
(a) Exhibits
99.1 Annual Independent Accountants' Servicing Report concerning servicing
activities under the Pooling and Servicing Agreement for the
Servicer's fiscal year ended November 30, 1997, in accordance with the
No-Action Letter.
99.2 Annual Statement of Compliance under the Pooling and Servicing
Agreement for the Servicer's fiscal year ended November 30, 1997, in
accordance with the No-Action Letter.
99.3 Aggregate Statement of Principal and Interest Distributions to
Certificateholders.
(b) On or about October 7, 1997, October 29, 1997 and December 8, 1997, reports
on Form 8-K were filed in order to provide the Monthly Statements to
Certificateholders and quarterly financial statements for the period ended
September 30, 1997 for AMBAC Indemnity Corporation, the provider of credit
enhancement.
No other reports on Form 8-K have been filed during the last quarter of
the period covered by this report.
(c) Not applicable.
(d) Omitted pursuant to the No-Action Letter.
-5-
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
EQUITY ONE ABS, INC.
Date: March 18, 1998 By: /s/ Dennis Kildea
-----------------------------
Dennis Kildea, Vice President
SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT TO
SECTION 15(d) OF THE ACT BY REGISTRANTS WHICH HAVE NOT REGISTERED SECURITIES
PURSUANT TO SECTION 12 OF THE ACT
(a)(1) No annual report is provided to the Certificateholders other than with
respect to aggregate principal and interest distributions.
(a)(2) No proxy statement, form of proxy or other proxy soliciting material has
been sent to any Certificateholder with respect to any annual or other
meeting of Certificateholders.
-6-
<PAGE>
INDEX TO EXHIBITS
Exhibit
Number Description
- ------- -----------
99.1 Annual Independent Accountants' Servicing Report concerning servicing
activities under the Pooling and Servicing Agreement for the Servicer's
fiscal year ended November 30, 1997, in accordance with the No-Action
Letter.
99.2 Annual Statement of Compliance under the Pooling and Servicing Agreement
for the Servicer's fiscal year ended November 30, 1997, in accordance with
the No-Action Letter.
99.3 Aggregate Statement of Principal and Interest Distributions to
Certificateholders.
-7-
[PRICE WATERHOUSE LLP LETTERHEAD]
Independent Accountant's Report
January 30, 1998
To Equity One, Inc.:
We have examined management's assertion about Equity One, Inc. compliance with
the minimum servicing standards identified in the Mortgage Bankers Association
of America's Uniform Single Attestation Program for Mortgage Bankers (USAP)
-------------------------------------------------------
exclusive of standards I.4., III.2., III.3., III.4., V.3. and V.4., (the
"Applicable Standards") solely for the purpose of servicing fixed rate mortgage
loans underlying the Mortgage Pass-Through Certificates, Series 1997-1 (the
"Certificates") as of and for the period July 2, 1997 through November 30, 1997
included in the accompanying management assertion.
As the loans applicable to management's assertion are fixed rate mortgage loans
secured by first liens with no escrow amounts being collected, certain USAP
minimum servicing standards relating to escrow are not applicable. Therefore,
USAP minimum servicing standards I.4., III.2., III.3., III.4., V.3. and V.4
were not addressed during our examination. Further, management's assertion and
this report relate only to the servicing of fixed rate mortgage loans secured
by first liens underlying the Certificates and not to loans in the general
consumer loan servicing population.
Management is responsible for Equity One, Inc.'s compliance with the Applicable
Standards. Our responsibility is to express an opinion exclusively on
management's assertion about the entity's compliance with the Applicable
Standards based on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about Equity One, Inc.'s compliance
with the Applicable Standards and performing such other procedures as we
considered necessary in the circumstances. We believe that our examination
provides a reasonable basis for our opinion. Our examination does not provide
a legal determination on Equity One, Inc.'s compliance with the Applicable
Standards.
In our opinion, management's assertion that Equity One, Inc. complied with the
Applicable Standards solely for the purpose of servicing loans underlying
the Certificates as of and for the period July 2, 1997 through November 30,
1997, is fairly stated, in all material respects. We express no opinion on
compliance with the Applicable Standards for fixed rate mortgage loans
secured by first liens not related to the Certificates.
PRICE WATERHOUSE LLP
[EQUITY ONE LETTERHEAD]
March 11, 1998
The Chase Manhattan Bank AMBAC Indemnity Corp. Equity One ABS, Inc.
450 West 33rd Street One State Street Plaza 103 Springer Bldg.
15th Floor 18th Floor 3411 Silverside Road
New York, NY 10001 New York, NY 10004 Wilmington, DE 19810
Attn: Norma Catone, Attn: Warren Tong, VP
Account Officer
RE: Pooling and Servicing Agreement dated as of June 1, 1997
(the "Agreement") for Equity One ABS, Inc.
Mortgage Pass-Through Certificates, Series 1997-1
-------------------------------------------------
Ladies and Gentlemen:
Pursuant to the provisions of the Agreement, I, Joseph Corvaia, Vice
President of Equity One, Inc. (the "Servicer") do hereby certify as follows:
1. A review of the activities of the Servicer during the period from
June 1, 1997 through November 30, 1997 and of its performance under
the Agreement has been made under my supervision; and
2. To the best of my knowledge, based on such review, the Servicer has
fulfilled all of its obligations under the Agreement in all material
respects throughout such period.
IN WITNESS WHEREOF, I have hereunto set my hand this 11th day of
March 1998.
EQUITY ONE, INC.
/s/ Joseph Corvaia
----------------------------------
Joseph Corvaia
Vice President
JC/lv
cc: Stradley Ronon Stevens & Young, LLP
2600 One Commerce Square
Philadelphia, PA 19103-7098
Attn: David Joseph, Esquire
-- YOUR LOAN SOURCE --
523 Fellowship Road o Suite 230 o Mt. Laurel, NJ 08054
609-273-1119 o Fax: 609-273-1929
EXHIBIT 99.3
Date: 01/29/1998 J-14, Year-To-Date Payment Report Page: 1
YTDPAYMT
EQUITY ONE ABS 1997-1 (0326)
<TABLE>
<CAPTION>
Record Payable Investor
Date Date Pool No. Series Cusip No. Tax ID Principal Interest
- ------ ------- -------- ------ --------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
08/22/1997 08/25/1997 1997-1-A1 294751AA0 132555119-2 2,435,974.46 342,033.33
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
09/24/1997 09/25/1997 1997-1-A1 294751AA0 132555119-2 1,786,126.71 157,578.21
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
10/24/1997 10/27/1997 1997-1-A1 294751AA0 132555119-2 2,026,697.37 147,724.74
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
11/24/1997 11/25/1997 1997-1-A1 294751AA0 132555119-2 714,105.36 136,544.13
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
12/24/1997 12/26/1997 1997-1-A1 294751AA0 132555119-2 951,509.52 132,604.65
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
TOTALS FOR Pool No. 1997-1-A1 7,914,413.42 916,485.06
<CAPTION>
Record Interest Net Interest Total
Date Adjustment Distribution Other Distribution
- ------ ---------- ------------ ----- ------------
<S> <C> <C> <C> <C>
08/22/1997 0.00 342,033.33 0.00 2,778,007.79
09/24/1997 0.00 157,578.21 0.00 1,943,704.92
10/24/1997 0.00 147,724.74 0.00 2,174,422.11
11/24/1997 0.00 136,544.13 0.00 850,649.49
12/24/1997 0.00 132,604.65 0.00 1,084,114.17
0.00 916,485.06 0.00 8,830,898.48
</TABLE>
<PAGE>
Date: 01/29/1998 J-14, Year-To-Date Payment Report Page: 2
YTDPAYMT
EQUITY ONE ABS 1997-1 (0326)
<TABLE>
<CAPTION>
Record Payable Investor
Date Date Pool No. Series Cusip No. Tax ID Principal Interest
- ------ ------- -------- ------ --------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
08/22/1997 08/25/1997 1997-1-A2 294751AB8 132555119-2 0.00 282,736.67
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
09/24/1997 09/25/1997 1997-1-A2 294751AB8 132555119-2 0.00 141,368.33
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
10/24/1997 10/27/1997 1997-1-A2 294751AB8 132555119-2 0.00 141,368.33
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
11/24/1997 11/25/1997 1997-1-A2 294751AB8 132555119-2 0.00 141,368.33
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
12/24/1997 12/26/1997 1997-1-A2 294751AB8 132555119-2 0.00 141,368.33
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
TOTALS FOR Pool No. 1997-1-A2 0.00 848,209.99
<CAPTION>
Record Interest Net Interest Total
Date Adjustment Distribution Other Distribution
- ------ ---------- ------------ ----- ------------
<S> <C> <C> <C> <C>
08/22/1997 0.00 282,736.67 0.00 282,736.67
09/24/1997 0.00 141,368.33 0.00 141,368.33
10/24/1997 0.00 141,368.33 0.00 141,368.33
11/24/1997 0.00 141,368.33 0.00 141,368.33
12/24/1997 0.00 141,368.33 0.00 141,368.33
0.00 848,209.99 0.00 848,209.99
</TABLE>
<PAGE>
Date: 01/29/1998 J-14, Year-To-Date Payment Report Page: 3
YTDPAYMT
EQUITY ONE ABS 1997-1 (0326)
<TABLE>
<CAPTION>
Record Payable Investor
Date Date Pool No. Series Cusip No. Tax ID Principal Interest
- ------ ------- -------- ------ --------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
08/22/1997 08/25/1997 1997-1-A3 294751AC6 132555119-2 0.00 173,758.33
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
09/24/1997 09/25/1997 1997-1-A3 294751AC6 132555119-2 0.00 86,879.17
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
10/24/1997 10/27/1997 1997-1-A3 294751AC6 132555119-2 0.00 86,879.17
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
11/24/1997 11/25/1997 1997-1-A3 294751AC6 132555119-2 0.00 86,879.17
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
12/24/1997 12/26/1997 1997-1-A3 294751AC6 132555119-2 0.00 86,879.17
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
TOTALS FOR Pool No. 1997-1-A3 0.00 521,275.01
<CAPTION>
Record Interest Net Interest Total
Date Adjustment Distribution Other Distribution
- ------ ---------- ------------ ----- ------------
<S> <C> <C> <C> <C>
08/22/1997 0.00 173,758.33 0.00 173,758.33
09/24/1997 0.00 86,879.17 0.00 86,879.17
10/24/1997 0.00 86,879.17 0.00 86,879.17
11/24/1997 0.00 86,879.17 0.00 86,879.17
12/24/1997 0.00 86,879.17 0.00 86,879.17
0.00 521,275.01 0.00 521,275.01
</TABLE>
<PAGE>
Date: 01/29/1998 J-14, Year-To-Date Payment Report Page: 4
YTDPAYMT
EQUITY ONE ABS 1997-1 (0326)
<TABLE>
<CAPTION>
Record Payable Investor
Date Date Pool No. Series Cusip No. Tax ID Principal Interest
- ------ ------- -------- ------ --------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
08/22/1997 08/25/1997 1997-1-A4 294751AD4 132555119-2 0.00 147,600.00
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
09/24/1997 09/25/1997 1997-1-A4 294751AD4 132555119-2 0.00 73,800.00
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
10/24/1997 10/27/1997 1997-1-A4 294751AD4 132555119-2 0.00 73,800.00
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
11/24/1997 11/25/1997 1997-1-A4 294751AD4 132555119-2 0.00 73,800.00
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
12/24/1997 12/26/1997 1997-1-A4 294751AD4 132555119-2 0.00 73,800.00
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
TOTALS FOR Pool No. 1997-1-A4 0.00 442,800.00
<CAPTION>
Record Interest Net Interest Total
Date Adjustment Distribution Other Distribution
- ------ ---------- ------------ ----- ------------
<S> <C> <C> <C> <C>
08/22/1997 0.00 147,600.00 0.00 147,600.00
09/24/1997 0.00 73,800.00 0.00 73,800.00
10/24/1997 0.00 73,800.00 0.00 73,800.00
11/24/1997 0.00 73,800.00 0.00 73,800.00
12/24/1997 0.000 73,800.00 0.00 73,800.00
0.00 442,800.00 0.00 442,800.00
</TABLE>
<PAGE>
Date: 01/29/1998 J-14, Year-To-Date Payment Report Page: 5
YTDPAYMT
EQUITY ONE ABS 1997-1 (0326)
<TABLE>
<CAPTION>
Record Payable Investor
Date Date Pool No. Series Cusip No. Tax ID Principal Interest
- ------ ------- -------- ------ --------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
08/22/1997 08/25/1997 1997-1-A5 294751AE2 132555119-2 0.00 266,031.88
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
09/24/1997 09/25/1997 1997-1-A5 294751AE2 132555119-2 0.00 133,015.94
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
10/24/1997 10/27/1997 1997-1-A5 294751AE2 132555119-2 0.00 133,015.94
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
11/24/1997 11/25/1997 1997-1-A5 294751AE2 132555119-2 0.00 133,015.94
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
12/24/1997 12/26/1997 1997-1-A5 294751AE2 132555119-2 0.00 133,015.94
Registration: CEDE & CO
C/O THE DEPOSITORY TRUST COMPANY
P.O. BOX 20
BOWLING GREEN STATION
NEW YORK, NY 10004
TOTALS FOR Pool No. 1997-1-A5 0.00 798,095.64
<CAPTION>
Record Interest Net Interest Total
Date Adjustment Distribution Other Distribution
- ------ ---------- ------------ ----- ------------
<S> <C> <C> <C> <C>
08/22/1997 0.00 266,031.88 0.00 266,031.88
09/24/1997 0.00 133,015.94 0.00 133,015.94
10/24/1997 0.00 133,015.94 0.00 133,015.94
11/24/1997 0.00 133,015.94 0.00 133,015.94
12/24/1997 0.00 133,015.94 0.00 133,015.94
0.0 798,095.64 0.00 798,095.64
</TABLE>
