SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
[X] ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) of
THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
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 [NO FEE REQUIRED]
For the transition period from________________to_______________.
Commission file number 33-99510
ADVANTA Home Equity Loan Trust 1997-1
New York 33-0756430
(State of other jurisdictio (IRS Employer
incorporation or organizat Identification No.)
c/o Bankers Trust Company
4 Albany Street
New York, NY 10015
Registrant's telephone number, including area code: (212) 250-2500
Securities registered pursuant to Section 12(b) of the Act.
Title of each class Name of each exchange on
which registered:
None None
Securities registered pursuant to Section 12(g) of the Act:
None
(Title of class)
Indicated 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 ($ 229.405 of this chapter) 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. [X]
State the aggregate market value of the voting stock held by non-affiliates
of registrant. The aggregate market value shall be computed by reference to
the price at which the stock was sold, or the average bid and asked prices
of such stock, as of specified date within 60 days prior to the date of filing:
$424,363,475.47
Documents Incorporated by Reference: Not Applicable
PART 1
ITEM 1 - BUSINESS
The ADVANTA Home Equity Loan Trust 1997-1, (the "Trust" or "Issuer") is
a New York common law trust established as of March 1, 1997,
pursuant to a Pooling and Servicing Agreement (the "Pooling and Servicing
Agreement") between ADVANTA Mortgage Conduit Services, Inc. as
sponsors (the "Sponsor") and ADVANTA Mortgage Corp. USA as Master
Servicer (the "Master Servicer") (together, the "Companies") and Bankers
Trust Company, acting thereunder not in its individual capacity but solely as
trustee (the "Trustee"). The Issuer's only purpose is the issuance of
$550,000,000.00 principal amount of ADVANTA Home Equity Loan Pass-
Through Certificates, Series 1997-1, Class A-1, Class A-2, Class A-3,
Class A-4, Class A-5, Class A-6, Class M-1F, Class M-1A, Class M-2F,
Class M-2A, Class B-1F and Class B-1A (the "Certificates")
and the subordinated residual certificates pursuant to the
Pooling and Servicing Agreement. On March 31, 1997, the Sponsor sold
$550,000,000.00 aggregate principal amount of mortgage loans (the "Mort-
gage Loans"), to the Issuer in exchange for the Certificates, and sold the
Certificates pursuant to a public offering, the underwriting of which was
co-managed by Morgan Stanley & Company, Lehman Brothers, Salomon
Brothers, Inc., and Prudential Securities Incorporated.
The Mortgage Loans and the distributions thereon, along with certain
insurance proceeds, certain proceeds obtained on foreclosure and any
investment income earned thereon, are the only significant assets of the
Issuer. The Certificates represent obligations solely of the Issuer. The
Certificates were registered under a Registration Statement
(file no. 33-99510) on Form S-3 declared effective on September 6, 1996.
ITEM 2 - PROPERTIES
The Issuer neither owns nor leases any physical properties.
ITEM 3 - LEGAL PROCEEDINGS
The Master Servicer is not aware of any material pending legal proceedings
involving either the Issuer, the Trustee, the Sponsor or the Master Servicer
with respect to the Certificates or the Issuer's property.
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matter has been submitted to a vote of the holders of beneficial interests
in the Issuer through the solicitation of proxies or otherwise.
PART II
ITEM 5 - MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED
STOCKHOLDER MATTERS
The Trust is not an issuer of common stock in a corporation, although the
Certificates represent equity interest that has voting rights. The equity of
the Trust consists of the beneficial or ownership interest therein for which,
to the best knowledge of the Master Servicer, there is no established
public trading market.
As of March 4, 1998, there were approximately 3 holders of the Class A-1
Certificates, 17 holders of the Class A-2 Certificates, 1 holder of the Class
A-3 Certificates, 16 holders of the Class A-4 Certificates, 14 holders of the
Class A-5 Certificates, 5 holders of the Class A-6 Certificates, 2 holders of
the Class M-1F Certificates, 1 holder of the Class M-1A Certificates, 2
holders of the Class M-2F Certificates, 1 holder of the Class M-2A, 6 holders
of the Class B-1F Certificates, and 2 holders of the Class B-1A
Certificates. The number of holders includes individual
participants in security position listings. As of December 26, 1997,
9 monthly distributions had been made to the holders of the Certificates.
ITEM 6 - SELECTED FINANCIAL DATA
Not applicable.
ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATION
On March 31, 1997, the Issuer issued $141,000,000.00 aggregate
principal amount of Class A-1 Certificates having pass-through rate of 6.85%
per annum, $82,000,000.00 aggregate principal amount of Class A-2
Certificates having pass-through rate of 7.10% per annum, $11,500,000.00
aggregate principal amount of Class A-3 Certificates having pass-through rate
of 7.40% per annum, $34,015,000.00 aggregate principal amount of Class
A-4 Certificates having pass-through rate of 7.65% per annum,
$29,835,000.00 aggregate principal amount of Class A-5 having pass-through
rate of 7.35% per annum, $168,000,000.00 aggregate principal amount of
Class A-6 Certificates having a variable monthly rate, $10,200,000.00
aggregate principal amount of Class M-1F Certificates having pass-through
rate of 7.65% per annum, $22,100,000.00 aggregate principal amount of
Class M-2F Certificates having pass-through rate of 7.80% per annum,
$9,350,000.00 aggregate principal amount of Class B-1F Certificates having
pass-through rate of 8.15% per annum, $12,600,000.00 aggregate principal
amount of Class M-1A Certificates having a variable monthly rate,
$10,500,000.00 aggregate principal amount of Class M-2A Certificates having
a variable monthly rate, $18,900,000 aggregate principal amount of Class
B-1A Certificates having a variable monthly rate, which are collateralized by
Mortgage Loans. The sale of the Mortgage Loans to the Issuer, the issuance
of the Certificates and the simultaneous delivery of the Certificates to the
Companies for sale pursuant to a public offering, the underwriting of which
was co-managed by Morgan Stanley & Company, Lehman Brothers, Inc.,
Prudential Securites Incorporated and Salomon Brothers, Inc., has been
accounted for as a sale of the Certificates. The value of the Certificates
issued by the Issuer equaled the value of the Mortgage Loans conveyed to
the Issuer by the Companies, plus funds held in the Prefunding Account
(if any) and subsequently used to acquire additional mortgage loans.
Accordingly, there was no income, expense, gain or loss resulting from
the aforementioned transaction.
CAPITAL RESOURCES AND LIQUIDITY
The Issuer's primary sources of funds with respect to the Certificates will be
receipts of interest on and principal of the Mortgage Loans, along with certain
insurance proceeds, certain proceeds obtained on foreclosure and any
investment income earned thereon. The respective management's of the
Companies believe that the Issuer will have sufficient liquidity and capital
resources to pay all amounts on the Certificates as they become due and
all other anticipated expenses of the Issuer. The Issuer does not have, nor
will it have in the future, any significant source of capital for payment of the
Certificates and its operating expenses other than the receipt of interest on
and principal of the mortgage loans, certain insurance proceeds and certain
proceeds obtained on foreclosure and any payments made by the Certificate
Insurer. The Issuer is a limited purpose trust. The Certificates represent
obligations solely of the Issuer.
ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Not applicable.
ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
There were no changes of accountants or disagreements on accounting or
financial disclosures between the Issuer and its accountants.
PART III
ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The Issuer does not have any directors or officers.
ITEM 11 - EXECUTIVE COMPENSATION
Not applicable.See "Item 10-Directors and Executive Officers of the Registrant".
ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
The following table sets forth (i) the name and address of each entity owning
more than 5% of the outstanding principal amount of the ADVANTA Home
Equity Loan Certificates, Series 1997-1, Class A-1 ("Class A-1 Certificates"),
the name and address of each entity owning more than 5% of the outstanding
principal amount of the ADVANTA Home Equity Loan Certificates, Series
1997-1, Class A-2 ("Class A-2 Certificates"), the name and address of each
entity owning more than 5% of the outstanding amount of the ADVANTA Home
Equity Loan Certificates, Series 1997-1, Class A-3 ("Class A-3 Certificates"),
the name and address of each entity owning more than 5% of the outstanding
principal amount of the ADVANTA Home Equity Loan Certificates, Series
1997-1, Class A-4 ("Class A-4 Certificates"), the name and address of each
entity owning more than 5% of the outstanding amount of the ADVANTA Home
Equity Loan Certificates, Series 1997-1, Class A-5 ("Class A-5 Certificates"),
the name and address of each entity owning more than 5% of the outstanding
principal amount of the ADVANTA Home Equity Loan Certificates, Series
1997-1, Class A-6 ("Class A-6 Certificates"), the name and address of each
entity owning more than 5% of the outstanding amount of the ADVANTA Home
Equity Loan Certificates, Series 1997-1, Class M-1F ("Class M-1F Certificates"),
the name and address of each entity owning more than 5% of the outstanding
principal amount of the ADVANTA Home Equity Loan Certificates, Series
1997-1, Class M-2F ("Class M-2F Certificates"), the name and address of each
entity owning more than 5% of the outstanding amount of the ADVANTA Home
Equity Loan Certificates, Series 1997-1, Class B-1F ("Class B-1F Certificates"),
the name and address of each entity owning more than 5% of the outstanding
principal amount of the ADVANTA Home Equity Loan Certificates, Series
1997-1, Class M-1A ("Class M-1A Certificates"), the name and address of each
entity owning more than 5% of the outstanding amount of the ADVANTA Home
Equity Loan Certificates, Series 1997-1, Class M-2A ("Class M-2A Certificates"),
the name and address of each entity owning more than 5% of the outstanding
principal amount of the ADVANTA Home Equity Loan Certificates, Series
1997-1, ClassB-1A ("Class B-1A Certificates"); (ii) the principal amount of the
Class A-1 Certificates or Class A-2 Certificates or Class A-3 Certificates or
Class A-4 Certificates or Class A-5 Certificates or Class A-6 Certificates or
Class M-1F Certificates Class M-2F Certificates or Class B-1F Certificates or
Class M-1A Certificates or Class M-2A Certificates or Class B-1A Certificates
and (iii) the percent that the principal amount of Class A-1 Certificates, Class
A-2 Certificates, Class A-3 Certificates, Class A-4 Certificates, Class A-5
Certificates, Class A-6 Certificates, Class M-1F, Class M-2F Certificates,
Class B-1F Certificates, Class M-1A Certificates, Class M-2A Certificates,
and Class B-1A Certificates owned represents of the outstanding principal
amount of the Class A-1 Certificates or Class A-2 Certificates or Class A-3
Certificates or Class A-4 Certificates or Class A-5 Certificates or Class A-6
Certificates or Class M-1F Certificates or Class M-2F Certificates or Class
B-1F Certificates or Class M-1A Certificates or Class M-2A Certificates or
Class B-1A Certificates, respectively. The information set forth in the table
is based upon information obtained by the Issuer from Depository
Trust Company. The Master Servicer is not aware of any Schedules 13D or
13G filed with the Securities and Exchange Commission in respect of the
Certificates.
Amount Owned
(All Dollar Amounts are in Thousands)
Name and Address Principal Percent
Class A-1 Certificates
Chase Manhattan Bank / Chemical
4 New York Plaza
Proxy Department 13th Floor
New York, NY 10004 19.86%
DAIWA Securities America Inc.
Financial Square
32 Old Slip, 14th Floor
New York, NY 10005 17.37%
Merrill Lynch, Pierce, Fenner & Smith Inc.
4 Corporate Place
Corporate Park 287
Piscataway, NJ 08855 62.77%
Class A-2 Certificates
Bank of New York
925 Patterson Plank Rd.
Secausus, NJ 07094 21.31%
Bankers Trust Company
c/o BT Services Tennessee Inc.
648 Grassmere Park Drive
Nashville, TN 37211 32.80%
The Bank of New York/Barclays
De Zwete Wedd Securities
One Wall Street, 4th Floor
New York, NY 10286 6.54%
Chase Manhattan Bank / Chemical
4 New York Plaza
Proxy Department 13th Floor
New York, NY 10004 7.69%
SSB - Custodian
Global Corp Action Dept JAB5W
P. P. Box 1631
Boston, MA 02105-1631 16.00%
Union Bank of California, N.A
Safekeeping Department
475 Sansome Street, 11th Floor
San Francisco, CA 94145 8.46%
Class A-3 Certificates
Chase Manhattan Bank / Chemical
4 New York Plaza
Proxy Department 13th Floor
New York, NY 10004 100.00%
Class A-4 Certificates
Bank of New York
925 Patterson Plank Rd.
Secausus, NJ 07094 13.09%
Commerce Bank of Kansas City, N.A.
Investment Management Group
922 Walnut
Kansas City, MO 64106 17.35%
SSB - Custodian
Global Corp Action Dept JAB5W
P. P. Box 1631
Boston, MA 02105-1631 54.58%
Class A-5 Certificates
Bankers Trust Company
c/o BT Services Tennessee Inc.
648 Grassmere Park Drive
Nashville, TN 37211 11.57%
Boston Safe Deposit and Trust Company
c/o Mellon Bank N.A.
Three Mellon Bank Center, Room 153-3015
Pittsburgh, PA 15259 12.41%
Comerica Bank
Cap. Chg. / Proxy 7CBB/MC 3530
Detroit, MI 48275-3530 17.60%
Northern Trust Company
801 S. Canal C-IN
Chicago, IL 60607 42.66%
Class A-6 Certificates
Bankers Trust Company
c/o BT Services Tennessee Inc.
648 Grassmere Park Drive
Nashville, TN 37211 31.55%
Chase Manhattan Bank
4 New York Plaza
13th Floor
New York, NY 10004 5.96%
Citibank, N.A.
P. O. Box 30576
Tampa, FL 33630-3576 13.68%
Republic National Bank of New York Inv. Acct.
One Hanson Place, Lower Level
Brooklyn, NY 11243 26.78%
SSB - Custodian
Global Corp Action Dept JAB5W
P. P. Box 1631
Boston, MA 02105-1631 22.03%
Class M-1F Certificates
Bankers Trust Compnay
c/o BT Services Tennessee Inc.
648 Grassmere Park Drive
Nashville, TN 37211 62.75%
Citibank, N.A.
P. O. Box 30576
Tampa, FL 33630-3576 37.25%
Class M-2F Certificates
Boston Safe Deposit and Trust Company
c/o Mellon Bank N.A.
Three Mellon Bank Center, Room 153-3015
Pittsburgh, PA 15259 50.00%
Citibank, N.A.
P. O. Box 30576
Tampa, FL 33630-3576 50.00%
Class B-1F Certificates
Bank of New York
925 Patterson Plank Rd.
Secausus, NJ 07094 33.43%
Bankers Trust Company
c/o BT Services Tennessee Inc.
648 Grassmere Park Drive
Nashville, TN 37211 7.49%
Investors Bank & Trust / M.F. Custody
200 Clarendon Street
15th Fl Hancock Tower
Boston, MA 02116 5.89%
SSB - Custodian
Global Corp Action Dept JAB5W
P. P. Box 1631
Boston, MA 02105-1631 49.74%
Class M-1A Certificates
Bankers Trust Compnay
c/o BT Services Tennessee Inc.
648 Grassmere Park Drive
Nashville, TN 37211 100.00%
Class M-2A Certificates
Bankers Trust Company
c/o BT Services Tennessee Inc.
648 Grassmere Park Drive
Nashville, TN 37211 100.00%
Class B-1A Certificates
Bank of New York
925 Patterson Plank Rd.
Secausus, NJ 07094 52.91%
Chase Manhattan Bank
4 New York Plaza
13th Floor
New York, NY 10004 47.09%
ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
None
PART IV
ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS
ON FORM 8-K
(a) The following documents are filed as part of this report:
1. Financial Statements: Not applicable.
2. Financial Statement Schedules: Not applicable.
3. Exhibits: As the Issuer was established as of March 1,
1997, the Master Servicer was obligated to prepare an Annual Statement to
Certificateholders as to Compliance for the year ended December 31, 1997,
and mail such statement to the Certificateholders on or before the last day
of March, 1998 and Independent Certified Public Accountants were required
to prepare an annual report pertaining to the compliance of the Master Servicer
with its servicing obligations pursuant to the Pooling and Servicing Agreement
on or before the last day of March, 1998. The Annual Statement to Certificate-
holders as to Compliance is included herewith as Exhibit 28.1 and the Annual
Independent Certified Public Accountants' Report is included herewith as
Exhibit 28.2. The Statement to Certificateholders on December 26, 1997, is
included herewith as Exhibit 28.3.
Exhibit No. Description
*3.1 Certificates of Incorporation of the
Companies
*3.2 By-laws of the Companies
*4 Pooling and Servicing Agreement
28.1 Annual Statement to Certificateholders
as to Compliance for the year ended
December 31, 1997.
28.2 Annual Independent Certified Public
Accountants' Report.
28.3 Statement to Certificateholders on
December 26, 1997.
* Incorporated by reference to the Exhibit of the same designation filed with
the Issuer's Form S-3 registration statement declared effective September
6, 1996.
(b) Reports on Form 8-K.
Nine reports on Form 8-K have been filed by the Issuer during the
period covered by this report.
Items Reported/Financial
Date of Reports on Form 8-K Statements Filed
April 30, 1997 Monthly Report for the March 1997 Monthly
Period relating to the ADVANTA Home Equity
Loan Pass-through Certificates 1997-1, Class
A-1, Class A-2, Class A-3, Class A-4, Class
A-5, Class A-6, Class M-1F, Class M-1A,
Class M-2F, Class M-2A, Class B-1F,
Class B-1A issued by the Advanta Home
Equity Loan Trust 1997-1.
June 2, 1997 Monthly Report for the April 1997 Monthly
Period relating to the ADVANTA Home Equity
Loan Pass-through Certificates 1997-1, Class
A-1, Class A-2, Class A-3, Class A-4, Class
A-5, Class A-6, Class M-1F, Class M-1A,
Class M-2F, Class M-2A, Class B-1F,
Class B-1A issued by the Advanta Home
Equity Loan Trust 1997-1.
June 26, 1997 Monthly Report for the May 1997 Monthly
Period relating to the ADVANTA Home Equity
Loan Pass-through Certificates 1997-1, Class
A-1, Class A-2, Class A-3, Class A-4, Class
A-5, Class A-6, Class M-1F, Class M-1A,
Class M-2F, Class M-2A, Class B-1F,
Class B-1A issued by the Advanta Home
Equity Loan Trust 1997-1.
July 31, 1997 Monthly Report for the June 1997 Monthly
Period relating to the ADVANTA Home Equity
Loan Pass-through Certificates 1997-1, Class
A-1, Class A-2, Class A-3, Class A-4, Class
A-5, Class A-6, Class M-1F, Class M-1A,
Class M-2F, Class M-2A, Class B-1F,
Class B-1A issued by the Advanta Home
Equity Loan Trust 1997-1.
August 29, 1997 Monthly Report for the July 1997 Monthly
Period relating to the ADVANTA Home Equity
Loan Pass-through Certificates 1997-1, Class
A-1, Class A-2, Class A-3, Class A-4, Class
A-5, Class A-6, Class M-1F, Class M-1A,
Class M-2F, Class M-2A, Class B-1F,
Class B-1A issued by the Advanta Home
Equity Loan Trust 1997-1.
October 3, 1997 Monthly Report for the August 1997 Monthly
Period relating to the ADVANTA Home Equity
Loan Pass-through Certificates 1997-1, Class
A-1, Class A-2, Class A-3, Class A-4, Class
A-5, Class A-6, Class M-1F, Class M-1A,
Class M-2F, Class M-2A, Class B-1F,
Class B-1A issued by the Advanta Home
Equity Loan Trust 1997-1.
October 30, 1997Monthly Report for the September 1997 Monthly
Period relating to the ADVANTA Home Equity
Loan Pass-through Certificates 1997-1, Class
A-1, Class A-2, Class A-3, Class A-4, Class
A-5, Class A-6, Class M-1F, Class M-1A,
Class M-2F, Class M-2A, Class B-1F,
Class B-1A issued by the Advanta Home
Equity Loan Trust 1997-1.
December 1, 1997Monthly Report for the October 1997 Monthly
Period relating to the ADVANTA Home Equity
Loan Pass-through Certificates 1997-1, Class
A-1, Class A-2, Class A-3, Class A-4, Class
A-5, Class A-6, Class M-1F, Class M-1A,
Class M-2F, Class M-2A, Class B-1F,
Class B-1A issued by the Advanta Home
Equity Loan Trust 1997-1.
December 29, 199Monthly Report for the November 1997 Monthly
Period relating to the ADVANTA Home Equity
Loan Pass-through Certificates 1997-1, Class
A-1, Class A-2, Class A-3, Class A-4, Class
A-5, Class A-6, Class M-1F, Class M-1A,
Class M-2F, Class M-2A, Class B-1F,
Class B-1A issued by the Advanta Home
Equity Loan Trust 1997-1.
(c) See "Item 14(a) (3)-Exhibits".
(d) Not applicable.
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.
ADVANTA Mortgage Corp., USA,
as Master Servicer and on behalf of
ADVANTA Home Equity Loan Trust 1997-1
Registrant
BY; /s/ William P. Garland
William P. Garland
Senior Vice President
Loan Service Administration
March 31, 1998
INDEX TO EXHIBITS (Item 14(c))
Exhibit # Description
*3.1 Certificates of Incorporation of the Companies
*3.2 By-laws of the Companies.
*4 Pooling and Servicing Agreement
28.1 Annual Statement to Certificateholders as to
Compliance for the year ended December 31,
1997.
28.2 Annual Independent Certified Public Account-
ants' Report.
28.3 Statement to Certificateholders on December 26,
1997.
* Incorporated by reference to the Exhibit of the same designation filed with
the Issuer's Form S-3 registration statement declared effective September 6,
1996
<TABLE>
EXHIBIT 28.1
<S>
March 31, 1998
Bankers Trust Company(293)
Attention: Erin Deegan
3 Park Plaza -- 16th Floor
Irvine, CA 92714
RE: Annual Statement as to Compliance
Pursuant to that certain Loan Servicing Agreement ("Agreement") dated as of
March 1, 1997, relating to ADVANTA Home Equity Loan Trust 1997-1, I,
William P. Garland, hereby certify that (I) a review of the activities of the Servicer
during the preceding year and the performance under this Agreement has
been made under my supervision, and (II) to the best of my knowledge, based
on such review, the Servicer has fulfilled all its obligations under this Agreement
for such year.
Sincerely,
BY; /s/ William P. Garland
William P. Garland
Senior Vice President
Loan Service Administration
WPG/cg
cc: Mr. James L. Shreero
Annette Aguirre, Esq.
Mr. Mark Casale
<S>
</TABLE>
<TABLE>
EXHIBIT 28.2
<S>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To ADVANTA Mortgage Corp. USA:
We have examined management's assertion about Advanta Mortgage Corp. USA's compliance
with the minimum servicing standards identified in the Mortgage Bankers Association of
America's Uniform Single Attestation Program for Mortgage Bankers (USAP) and that
Advanta Mortgage Corp. USA had in effect fidelity bond coverage in the amount of $15 million
and mortgage contingent liability protection coverage in the amount of $2 million as of and for
the year ended December 31, 1997 included in the accompanying management assertion.
Management is responsible for Advanta Mortgage Corp. USA's compliance with those
minimum servicing standards and for maintaining fidelity bond and mortgage contingent
liability protection coverage policies. Our responsibility is to express an opinion on
management's assertion about the entity's compliance with the minimum servicing standards
and maintenance of fidelity bond and mortgage contingent liability protection coverage policies
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 Advanta Mortgage Corp. USA's compliance with the minimum servicing 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 Advanta Mortgage Corp. USA's compliance with the
minimum servicing standards.
In our opinion, management's assertion that Advanta Mortgage Corp. USA complied with the
aforementioned minimum servicing standards and that Advanta Mortgage Corp. USA had in
effect fidelity bond coverage in the amount of $15 million and mortgage contingent liability
protection coverage in the amount of $2 million as of and for the year ended December 31, 1997
is fairly stated, in all material respects.
BY; /s/ Arthur Andersen LLP
Philadelphia, PA
March 20, 1998
<S>
</TABLE>
<TABLE>
EXHIBIT 28.3
ADVANTA Mortgage Loan Trust 1997-1
Statement to Certificateholders
<CAPTION>
Original Prior
Face Principal
Class Value Balance Interest Principal Total
<S> <C> <C> <C> <C> <C>
A-1 141,000,000. 90,878,126 518,7 7,144,182 7,662,945.17
A-2 82,000,000 82,000,000 485,1 485,166.67
A-3 11,500,000 11,500,000 70,9 70,916.67
A-4 34,015,000 34,015,000 216,8 216,845.63
A-5 29,835,000 29,835,000 182,7 182,739.38
A-6 168,000,000. 135,696,895. 695,2 6,873,644 7,568,902.94
M-1F 10,200,000 10,200,000 65,0 65,025.00
M-1A 12,600,000 12,600,000 66,2 66,293.50
M-2F 22,100,000 22,100,000 143,6 143,650.00
M-2A 10,500,000 10,500,000 56,7 56,781.67
B-1F 9,350,00 9,350,00 63,5 63,502.08
B-1A 18,900,000 18,900,000 109,0 109,042.50
R -
Totals 550,000,000. 467,575,022. 2,673,98 14,017,827. 16,691,811.21
</TABLE>
<TABLE>
<CAPTION>
Current Pass-Through
Realized Deferred Principal Rates
Class Losses Interest Balance Current Next
<S> <C> <C> <C> <C> <C>
A-1 83,733,944 6.850000% 6.850000%
A-2 82,000,000 7.100000% 7.100000%
A-3 11,500,000 7.400000% 7.400000%
A-4 34,015,000 7.650000% 7.650000%
A-5 29,835,000 7.350000% 7.350000%
A-6 128,823,250. 5.950000% 6.325000%
M-1F 10,200,000 7.650000% 7.650000%
M-1A 12,600,000 6.110000% 6.485000%
M-2F 22,100,000 7.800000% 7.800000%
M-2A 10,500,000 6.280000% 6.655000%
B-1F 9,350,00 8.150000% 8.150000%
B-1A 18,900,000 6.700000% 7.075000%
R 0.000000% 0.000000%
Totals 453,557,194.93
</TABLE>
<TABLE>
<CAPTION>
Prior Current
Principal Principal
Class CUSIP Balance Interest Principal Total Balance
<S> <C> <C> <C> <C> <C> <C>
A-1 00755WCR5 644.525723 3.679168 50.667961 54.347129 593.857762
A-2 00755WCS3 1000 5.916667 0 5.916667 1000
A-3 00755WCT1 1000 6.166667 0 6.166667 1000
A-4 00755WCU8 1000 6.375 0 6.375 1000
A-5 00755WCV6 1000 6.125 0 6.125 1000
A-6 00755WCZ7 807.719615 4.138441 40.914553 45.052994 766.805063
M-1F 00755WCW4 1000 6.375 0 6.375 1000
M-1A 00755WDA1 1000 5.261389 0 5.261389 1000
M-2F 00755WCX2 1000 6.5 0 6.5 1000
M-2A 00755WDB9 1000 5.407778 0 5.407778 1000
B-1F 00755WCY0 1000 6.791666 0 6.791666 1000
B-1A 00755WDC7 1000 5.769444 0 5.769444 1000
R AM9701112 0 0 0 0 0
</TABLE>
<TABLE>
Delinquent and Foreclosure Loan Information:
<CAPTION>
90+ Days Loans Loans
30-59 60-89 excldg f/c,REO in in
Days Days & Bkrptcy REO Foreclosure
<S> <C> <C> <C> <C> <C>
Group 1 Principal Balanc 9,605,30 3,073,81 1,016,090 579,6 6,557,610
% of Pool Balanc 3.30280% 1.05694% 0.34938% 0.19930% 2.25484%
Number of Loans 167 57 21 2 112
% of Loans 3.39776% 1.15972% 0.42726% 0.04069% 2.27874%
Group 2 Principal Balanc 6,986,18 2,124,51 1,115,356 239,3 10,857,642.
% of Pool Balanc 3.91341% 1.19007% 0.62478% 0.13409% 6.08205%
Number of Loans 69 21 14 3 98
% of Loans 3.98614% 1.21317% 0.80878% 0.17331% 5.66147%
Loans in Bankruptcy: Group 1 2,789,510.52
Group 2 3,027,136.69
Total 5,816,647.21
</TABLE>
<TABLE>
General Mortgage Loan Information:
<CAPTION>
Group I Group II Total
<S> <C> <C> <C>
Beginning Aggregate Mortgage Loan Balance 297,113,869. 184,726,358. 481,840,227.
Principal Reduction 6,290,736 6,206,89 12,497,636.
Ending Aggregate Mortgage Loan Balance 290,823,132. 178,519,458. 469,342,591.
Beginning Aggregate Mortgage Loan Count
Ending Aggregate Mortgage Loan Count
Current Weighted Average Coupon Rate 10.928854% 10.944389% 10.934810%
Next Weighted Average Coupon Rate 10.920343% 11.002600% 10.951630%
</TABLE>
<TABLE>
Mortgage Loan Principal Reduction Information:
<CAPTION>
Group I Group II Total
<S> <C> <C> <C>
Scheduled Principal 355,01 88,6 443,71
Curtailments
Prepayments 5,693,335 6,014,29 11,707,630.
Repurchases/Substitutions 242,38 242,38
Liquidation Proceeds 103,9 103,90
Other Principal
Less: Realized Losses (11,0 17,9 6,8
Less: Delinquent Principal not Advanced by Servicer
Total Principal Reduction 6,301,818 6,188,97 12,490,790.
</TABLE>
<TABLE>
Servicer Information:
<CAPTION>
Group I Group II Total
<S> <C> <C> <C>
Accrued Servicing Fee for the Current Period 90,3 53,1 143,47
Less: Amounts to Cover Interest Shortfalls 3,1 3,8
Less: Delinquent Service Fees 33,4 23,8 57,2
Collected Servicing Fees for Current Period 53,6 28,6 82,3
Advanced Principal 36,8 7, 44,6
Advanced Interest 737,26 530,9 1,268,264
</TABLE>
<TABLE>
<CAPTION>
Other Subordination
Prepayment Unscheduled Increase Applied Realized Loss Unpaid
Principal Principal Principal Realized Loss Amortization Realized Loss
Class Distributed Distributed Distributed Amount Amount Amount
<S> <C> <C> <C> <C> <C> <C>
A-1 5,693,35 242,3 842,3
A-2
A-3
A-4
A-5
A-6 6,014,29 103,9 684,6
M-1F
M-1A
M-2F
M-2A
B-1F
B-1A
R
Total 11,707,648 346,2 1,527,03
</TABLE>
<TABLE>
<CAPTION>
Prior Current Target
Has a Senior Overcolla- Extra Overcolla- Overcolla-
Trigger Ever Enhancement Teralization Principal Teralization Teralization
Class Occurred Percentage Amount Distributed Amount Amount
<S> <C> <C> <C> <C> <C> <C>
Group I No 14.321419% 7,235,74 842,36 8,089,18 9,010,000
Group II No 24.569610% 7,029,46 684,67 7,696,20 8,400,000
Total 14,265,205 1,527,037 15,785,396 17,410,000.
</TABLE>
<TABLE>
TOTAL AVAILABLE FUNDS:
<CAPTION>
<S> <S> <C> <C> <C>
Current Interest Collected: 3,064,076.88
Principal Collected: 12,106,672.52
Insurance Proceeds Received: -
Net Liquidation Proceeds: 98,116.30
Delinquency Advances on Mortgage Interest: 1,268,264.02
Delinquency Advances on Mortgage Principal: 44,673.05
Substitution Amounts: 242,385.16
Trust Termination Proceeds: -
Investment Earnings on Certificate Account: 14,608.41
Capitalized Interest Requirement: -
Pre-Funding Account: N/A
Sum of the Above Amounts: 16,838,796.34
LESS:
Servicing Fees (including PPIS): 143,471.71
Dealer Reserve: -
Trustee Fees: 3,513.42
Insurance Premiums: N/A
Reimbursement of Delinquency Advances: -
Reimbursements of Servicing Advances: -
Total Reductions to Available Funds Amount: 146,985.13
Total Available Funds: 16,691,811.
</TABLE>
