SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) of THE SECURITIES EXCHANGE ACT
OF 1934
For the fiscal year ended December 31, 1997
Commission File Number 333-14041-02
TRUST CREATED BY BLOCK MORTGAGE FINANCE, INC.
(under a Pooling and Servicing Agreement dated
as of July 1, 1997, which Trust is the issuer
of Block Mortgage Finance Asset Backed
Certificates, Series 1997-2)
---------------------
(Exact name of Registrant as specified in its Charter)
New York 33-0770716
State or other jurisdiction of (I.R.S. Employer of
incorporation or organization Identification No.)
Bankers Trust Company of California, N.A.
3 Park Plaza, 16th Floor
Irvine, California
Attention: Block Mortgage Finance Asset Backed
Certificates, Series 1997-2 92614
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (714) 253-7575
Securities registered pursuant to Section 12(b) of the Act: Not applicable.
Securities registered pursuant to Section 12(q) of the Act: Not applicable.
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 (section 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]
Aggregate market value of the voting stock held by non-affiliates of the
registrant as of December 31, 1997: Not applicable.
Number of shares of common stock as of December 31, 1997: Not applicable.
DOCUMENTS INCORPORATED BY REFERENCE
NONE
<PAGE>
PART I
ITEM 1. BUSINESS.
The Registrant issued Asset Backed Certificates, Series 1997-2 (the
"Securities") pursuant to a Pooling and Servicing Agreement dated as of July 1,
1997 (the "Cut-off Date") among Block Mortgage Finance, Inc., as Depositor,
Block Financial Corporation, as Master Servicer, Companion Mortgage Corporation,
as Seller, and Bankers Trust Company of California, N.A., as Trustee. The assets
of the Trust consist primarily of a pool of fixed rate and adjustable rate
mortgage loans (the "Mortgage Loans") having an aggregate principal balance as
of the Cut-off Date of approximately $215,000,031.77. The Mortgage Loans are
secured by one- to four-family residential properties (each, a "Mortgaged
Property"). Certificateholders receive monthly Statements to Certificateholders
regarding distributions.
Further information with respect to the performance of the Trust is
summarized in the monthly Statements to Certificateholders, which are filed on
Form 8-K.
ITEM 2. PROPERTIES.
Information regarding the Mortgaged Properties securing the Mortgage Loans
is set forth in the Prospectus Supplement and the monthly Statements to
Certificateholders, which are filed on Form 8-K. The Trust will acquire title to
real estate only upon default of the mortgagors under the Mortgage Loans. As of
February 25, 1998, the Trust did not hold title to any real estate.
ITEM 3. LEGAL PROCEEDINGS.
There are no material pending legal proceedings involving the Trust or,
with respect to the Trust or the Mortgage Loans, the Trustee, the Master
Servicer or the Depositor, other than ordinary routine litigation incidental to
the Trustee's, the Servicer's or the Depositor's duties under the Pooling and
Servicing Agreement.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
No matters were submitted to a vote of Certificateholders during the
fiscal year covered by this report.
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS.
The Registrant's Asset Backed Certificates, Series 1997-2 represent
non-recourse obligations of the Trust, such Trust having assets which consist of
the Mortgage Loans. Strictly speaking, Registrant has no "common equity," but
for purposes of this Item only, Registrant's Asset Backed Certificates, Series
1997-2 Securities are treated as "common equity."
(a) Market Information. There is no established public trading
market for Registrant's Securities.
(b) Certificateholders. The approximate number of registered holders of
each class of Certificates as of January 31, 1998 is set forth below:
Class Certificateholders
----- ------------------
A-1 5
A-2 12
A-3 1
A-4 2
A-5 1
A-6 6
R 1
<PAGE>
(c) Dividends. Not applicable. The information regarding dividends
required by sub-paragraph (c) of Item 201 of Regulation S-K is
inapplicable because the Trust does not pay dividends. However,
information as to distributions to Certificateholders is provided in
the monthly Statements to Certificateholders for each month of the
fiscal year in which a distribution to Certificateholders was made.
ITEM 6. SELECTED FINANCIAL DATA.
Not Applicable. Because of the limited activities of the Trust,
information with respect to the performance of the Trust is summarized in the
monthly Statements to Certificateholders, which are filed on a monthly basis on
Form 8-K. However, certain selected aggregate information with respect to the
Trust for 1997 is filed as an exhibit to this report.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
Not Applicable. The information required by Item 303 of Regulation S-K is
not meaningful in light of the nature of the Trust. Information concerning the
Mortgage Loans and distributions to the Certificateholders is contained in the
monthly Statements to Certificateholders which are filed on Form 8-K.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.
Not applicable. The Trust does not engage in the types of transactions
required to be disclosed under this Item.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
Not Applicable. Information with respect to the Trust is contained in
the monthly Statements to Certificateholders filed on a monthly basis on
Form 8-K.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.
None.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT.
Not Applicable. The Trust does not have officers or directors.
ITEM 11. EXECUTIVE COMPENSATION.
Not Applicable. The Trust does not have officers or directors to whom
compensation needs to be paid.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
(a) Security ownership of certain beneficial owners. Not Applicable.
Under the Pooling and Servicing Agreement governing the Trust, the
holders of the Certificates generally do not have the right to vote
and are prohibited from taking part in management of the Trust.
(b) Security ownership of management. Not Applicable. The Trust does not
have any officers or directors.
(c) Changes in control. Not Applicable. Because Certificateholders
do not possess, directly or indirectly, the power to direct or
cause the direction of the management and policies of the Trust,
other than with respect to certain required consents to
amendments to the Pooling and Servicing Agreement and the ability
to act as a group in the event of the occurrence of certain
events which if continuing would constitute events of
<PAGE>
default under the Pooling and Servicing Agreement, the information requested
with respect to Item 403(c) of Regulation S-K is inapplicable.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
Not Applicable. The Trust does not have officers or directors and under
the Pooling and Servicing Agreement governing the Trust. In addition, the
Registrant does not have knowledge of any transaction required to be disclosed
by Items 404(a)(3) or (a)(4) of Regulation S-K.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.
(a) The following is a list of documents filed as part of this report:
EXHIBITS
4.1 Pooling and Servicing Agreement dated as of July 1, 1997 (hereby
incorporated herein by reference as Exhibit 4 to Depositor's Current
Report on Form 8-K dated July 29, 1997).
99.1 Master Servicer Annual Officer's Certificate dated March 31, 1998.
99.2 Report of Independent Accountants pertaining to NF Investments, Inc.,
dated February 16, 1998.
99.3 Report of Independent Accountants pertaining to Companion Servicing
Company, L.L.C., dated February 13, 1998.
99.4 Independent Accountant's Report pertaining to Option One Mortgage
Corporation, dated October 7, 1997.
99.5 Aggregate Information from Statements to Certificateholders Relating
to 1997 Distributions to Holders of Block Mortgage Finance Asset
Backed Certificates, Series 1997-2.
99.6 Consolidated financial statements of MBIA Insurance Corporation and
its subsidiaries as of December 31, 1997 and 1996 and for the three
years ended December 31, 1997 (hereby incorporated hereto by
reference to the Annual Report on Form 10-K of MBIA Inc.for the year
ended December 31, 1997 under Commission file number 001-09583).
(b) Reports on Form 8-K
Current Report on Form 8-K dated October 27, 1997 (filing monthly
Statement to Certificateholders)
Current Report on Form 8-K dated November 25, 1997 (filing monthly
Statement to Certificateholders)
Current Report on Form 8-K dated December 26, 1997 (filing monthly
Statement to Certificateholders)
(c) The exhibits required to be filed by Registrant pursuant to Item 601
of Regulation S-K are listed above and in the Exhibit Index that
immediately follows the signature page hereof.
(d) Not Applicable. The Trust does not have any subsidiaries or
affiliates. Therefore, no financial statements are filed with respect
to subsidiaries or affiliates.
SUPPLEMENTAL INFORMATION TO BE FURNISHED
WITH REPORTS FILED PURSUANT TO SECTION 15(D)
BY REGISTRANTS WHICH HAVE NOT REGISTERED
SECURITIES PURSUANT TO SECTION 12 OF THE ACT
No Annual report, proxy statement, form of proxy or other soliciting
material has been sent to Security Holders, and the Registrant does not
contemplate sending any such materials subsequent to the filing of this report.
<PAGE>
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
Block Financial Corporation, not in its individual capacity but
solely as a duly authorized agent of the Registrant pursuant to
Section 8.17 of the Pooling and Servicing Agreement dated as of July
1, 1997.
By: /S/ Frank L. Salizzoni
--------------------------------
Name: Frank L. Salizzoni
-----------------------------
Title: President
-----------------------------
Date: March 31, 1998
<PAGE>
EXHIBIT INDEX
EXHIBIT DOCUMENT
4.1 Pooling and Servicing Agreement dated as of July 1, 1997 (hereby
incorporated herein by reference as Exhibit 4 to Depositor's
Current Report on Form 8-K dated July 29, 1997).
99.1 Master Servicer Annual Officer's Certificate dated March 31, 1998.
99.2 Report of Independent Accountants pertaining to NF Investments, Inc.,
dated February 16, 1998.
99.3 Report of Independent Accountants pertaining to Companion Servicing
Company, L.L.C., dated February 13, 1998.
99.4 Independent Accountant's Report pertaining to Option One Mortgage
Corporation, dated October 7, 1997.
99.5 Aggregate Information from Statements to Certificateholders Relating
to 1997 Distributions to Holders of Block Mortgage Finance Asset
Backed Certificates, Series 1997-2.
99.6 Consolidated financial statements of MBIA Insurance Corporation and
its subsidiaries as of December 31, 1997 and 1996 and for the three
years ended December 31, 1997 (hereby incorporated hereto by
reference to the Annual Report on Form 10-K of MBIA Inc.for the year
ended December 31, 1997 under Commission file number 001-09583).
BLOCK MORTGAGE FINANCE, INC.
ASSET BACKED CERTIFICATES, SERIES 1997-2
MASTER SERVICER ANNUAL OFFICER'S CERTIFICATE
March 31, 1998
Pursuant to the provisions of Section 8.16 of that certain agreement dated
as of July 1, 1997, by and between BLOCK MORTGAGE FINANCE, INC., as Depositor,
BLOCK FINANCIAL CORPORATION, as Master Servicer, COMPANION MORTGAGE CORPORATION,
as Seller, and BANKERS TRUST COMPANY OF CALIFORNIA, N.A., as Trustee (the
"PSA"), I, Bret G. Wilson, Vice President of the Master Servicer, hereby certify
as follows:
(i) a review of the activities of the Master Servicer during the preceding
calendar year and of performance under the PSA has been made under my
supervision;
(ii) to the best of my individual knowledge based on such review, the
Master Servicer has fulfilled all of its obligations under the PSA for such
year; and
(iii)the Master Servicer's short-term commercial paper rating is A1 (S&P)
and P-1 (Moody's).
Capitalized terms used herein and not otherwise defined shall have the meanings
set forth in the PSA.
MASTER SERVICER
BLOCK FINANCIAL CORPORATION
/s/ Bret G. Wilson
- ------------------------
By: Bret G. Wilson
Vice President
Report of Independent Accountants on Management's Assertion on
Compliance with Minimum Servicing Standards Set Forth in the
Uniform Single Attestation Program for Mortgage Bankers
Board of Directors
NF Investments, Inc.
We have examined management's assertion, included in the accompanying report
titled Report of Management that NF Investments, Inc. (NFI) complied with the
minimum servicing standards set forth in the Mortgage Bankers Association of
America's Uniform Single Attestation Program for Mortgage Bankers (USAP) during
the year ended December 31, 1997. Management is responsible for NFI's compliance
with those requirements. Our responsibility is to express an opinion on
management's assertion about NFI's compliance 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 NFI's compliance with those
requirements 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 NFI's
compliance with specified requirements.
In our opinion, management's assertion that NFI complied with the aforementioned
requirements during the year ended December 31, 1997 is fairly stated, in all
material respects.
/s/ Ernst & Young LLP
---------------------
February 16, 1998
Report of Independent Accountants on Management's Assertion on
Compliance with Minimum Servicing Standards Set Forth in the
Uniform Single Attestation Program for Mortgage Bankers
To the Members
Companion Servicing Company, L.L.C.
We have examined management's assertion included in the accompanying report
titled Report of Management that Companion Servicing Company, L.L.C. (CSC)
complied with the minimum servicing standards set forth in the Mortgage Bankers
Association of America's Uniform Single Attestation Program for Mortgage Bankers
(USAP) during the year ended December 31, 1997. Management is responsible for
CSC's compliance with those requirements. Our responsibility is to express an
opinion on management's assertion about CSC's compliance 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 CSC's compliance with those
requirements 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 CSC's
compliance with specified requirements.
In our opinion, management's assertion that CSC complied with the aforementioned
requirements during the year ended December 31, 1997, is fairly stated, in all
material respects.
/s/ Ernst & Young LLP
---------------------
February 13, 1998
INDEPENDENT ACCOUNTANTS' REPORT
The Board of Directors
Option One Mortgage Corporation
Santa Ana, California
We have examined management's assertion about Option One Mortgage Corporation's
(the Company) compliance with the minimum servicing standards identified in the
Mortgage Bankers Association of America's Uniform Single Attestation Program for
Mortgage Bankers (USAP) as of June 17, 1997 and for the period from January 1,
1997 through June 17, 1997. Management is responsible for the Company's
compliance with those minimum servicing standards. Our responsibility is to
express an opinion on management's assertion about the Company's compliance
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 the Company'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 of the company's compliance with the minimum servicing
standards.
In our opinion, management's assertion that Option One Mortgage Corporation
complied with the aforementioned minimum servicing standards as of June 17, 1997
and for the period from January 1, 1997 through June 17, 1997 is fairly stated,
in all material respects.
/s/ Deloitte & Touche LLP
- -------------------------
October 7, 1997
<TABLE>
<CAPTION>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1997-2
Statement to Certificateholders
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------- --------------- -------------- ----------------------------------------- ------------ --------------- ----------------
DISTRIBUTIONS IN DOLLARS
PRIOR CURRENT
ORIGINAL FACE PRINCIPAL REALIZED DEFERRED PRINCIPAL
CLASS VALUE BALANCE INTEREST PRINCIPAL TOTAL LOSSES INTEREST BALANCE
- ------------- --------------- -------------- ----------------------------------------- ------------ --------------- ----------------
- ------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
A-1 45,336,000.00 45,336,000.00 1,159,543.55 7,180,915.89 8,340,459.44 0.00 0.00 38,155,084.11
- ------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
- ------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
A-2 24,279,000.00 24,279,000.00 669,695.75 669,695.75 0.00 0.00 0.00 24,279,000.00
0.00
- ------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
- ------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
A-3 12,505,000.00 12,505,000.00 356,392.50 0.00 356,392.50 0.00 0.00 12,505,000.00
- ------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
- ------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
A-4 16,951,000.00 16,951,000.00 500,760.80 0.00 500,760.80 0.00 0.00 16,951,000.00
- ------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
- ------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
A-5 11,007,000.00 11,007,000.00 309,571.90 0.00 309,571.90 0.00 0.00 11,007,000.00
- ------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
- ------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
A-6 104,922,000.00 104,922,000.00 2,499,375.98 6,400,181.29 8,899,557.27 0.00 0.00 95,521,818.71
- ------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
- ------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
R 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
- ------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
- ------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
TOTALS 215,000,000.00 215,000,000.00 5,495,340.48 13,581,097.18 19,076,437.66 0.00 0.00 201,418,920.92
- ------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
</TABLE>
<TABLE>
- ------------------------------------------------------------------------ -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FACTOR INFORMATION PER $1000 ORIGINAL FACE
------------- -------------- ------------------------------
PRIOR CURRENT PASS-THROUGH
PRINCIPAL PRINCIPAL RATES
CLASS CUSIP BALANCE INTEREST PRINCIPAL TOTAL BALANCE CURRENT NEXT
- ------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------------------------
- ------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
A-1 09367MAE9 1,000.0000000 5.1153324 31.6786478 36.7939802 841.6067609 6.510000% 6.510000%
- ------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
- ------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
A-2 09367MAF6 1,000.0000000 5.5166667 0.0000000 5.5166667 1,000.0000000 6.620000% 6.620000%
- ------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
- ------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
A-3 09367MAG4 1,000.0000000 5.7000000 0.0000000 5.7000000 1,000.0000000 6.840000% 6.840000%
- ------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
- ------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
A-4 09367MAH2 1,000.0000000 5.9083334 0.0000000 5.9083334 1,000.0000000 7.090000% 7.090000%
- ------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
- ------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
A-5 09367MAJ8 1,000.0000000 5.6250005 0.0000000 5.6250005 1,000.0000000 6.750000% 6.750000%
- ------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
- ------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
A-6 09367MAK5 1,000.0000000 4.7642553 12.1998843 16.9641396 939.0005786 5.897500% 5.897500%
- ------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
- ------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
R BL9702101 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000 0.0000000% 0.000000%
- ------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
- ----------------------------- ------------------------------------------ ---------------------------- ------------------------------
SELLER: Block Financial corporation ADMINISTRATOR: Vince Valdes
SERVICER: Block Financial Corporation Bankers Trust Company
LEAD UNDERWRITER: Morgan Stanley & Co. 3 Park Plaza
Irvine, CA 92714
RECORD DATE: Calendar Year 1997
(800) 735-7777
DISTRIBUTION DATE: Calendar Year 1997 FACTOR INFORMATION
- ----------------------------- ------------------------------------------ ---------------------------- ------------------------------
</TABLE>
<PAGE>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1997-2
Statement to Certificateholders
- --------------------------------------------------------------------------------
Distribution Date: Calendar Year 1997
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SERVICER ADVANCES INCLUDED IN THIS DISTRIBUTION: 2,133,410.93
SERVICER ADVANCES OUTSTANDING: 0.00
ACCRUED SERVICING FEE THE CURRENT PERIOD: 439,701.00
PLUS ANY ADDITIONAL SERVICING FEES: 0.00
----------
439,701.00
LESS PERMITTED REDUCTIONS TO SERVICING FEES: (8,830.03)
-----------
TOTAL SERVICING FEES DUE MASTER SERVICER: 430,870.97
ACCRUED SERVICING FEES COLLECTED FOR CURRENT PERIOD: 335,869.03
COMPENSATING INTEREST: 8,830.03
----------
TOTAL SERVICING FEES COLLECTED MASTER SERVICER: 327,039.00
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GROUP I MONTHLY ADVANCE AMOUNT: 826,056.13
GROUP II MONTHLY ADVANCE AMOUNT: 1,307,354.80
TOTAL TRUSTEE FEES DUE: 13,248.46
TOTAL INSURANCE AMOUNT DUE: 30,228.26
PRINCIPAL REMITTANCE AMOUNTS:
SCHEDULED PRINCIPAL 1,316,783.63
CURTAILMENTS (704,357.27)
PREPAYMENTS IN FULL 9,337,818.18
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: 9,950,244.54
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
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1997-2
Statement to Certificateholders
<S> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Distribution Date: Calendar year 1997
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN THE POOL AS OF THE PRIOR DISTRIBUTION PERIOD: 3,369
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN THE POOL AS OF THE CURRENT DISTRIBUTION PERIOD: 3,209
AGGREGATE PRINCIPAL BALANCE OF LOANS IN THE POOL AS OF THE PRIOR DISTRIBUTION PERIOD: 215,000,031.77
AGGREGATE PRINCIPAL BALANCE OF LOANS IN THE POOL AS OF THE CURRENT DISTRIBUTION PERIOD: 204,981,925.71
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP I AS OF THE PRIOR DISTRIBUTION PERIOD: 2,353
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP I AS OF THE PRIOR DISTRIBUTION PERIOD: 2,234
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP I AS OF THE PRIOR DISTRIBUTION PERIOD: 110,078,870.91
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP I AS OF THE CURRENT DISTRIBUTION PERIOD: 104,812,211.41
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP II AS OF THE PRIOR DISTRIBUTION PERIOD: 1,016
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP II AS OF THE CURRENT DISTRIBUTION PERIOD: 975
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP II AS OF THE PRIOR DISTRIBUTION PERIOD: 104,921,160.86
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP II AS OF THE CURRENT DISTRIBUTION PERIOD: 100,169,714.29
GROUP I SUBORDINATION INCREASE AMOUNT: 1,914,256.40
GROUP II SUBORDINATION INCREASE AMOUNT: 1,716,596.24
GROUP I SUBORDINATION DEFICIT AMOUNT: 0.00
GROUP II SUBORDINATION DEFICIT AMOUNT: 839.14
GROUP I PRINCIPAL REMITTANCE AMOUNT: 7,180,915.89
GROUP II PRINCIPAL REMITTANCE AMOUNT: 6,401,020.43
GROUP I WEIGHTED AVERAGE COUPON AS OF THE CURRENT DISTRIBUTION DATE: 11.3484%
GROUP II WEIGHTED AVERAGE COUPON AS OF THE CURRENT DISTRIBUTION DATE: 10.2886%
GROUP I SUBSTITUTION ADJUSTMENT AMOUNT 0.00
GROUP II SUBSTITUTION ADJUSTMENT AMOUNT 0.00
GROUP I LOAN PURCHASE AMOUNT 0.00
GROUP II LOAN PURCHASE AMOUNT 0.00
GROUP I LOAN LARGEST LOAN BALANCE 471,408.48
GROUP II LOAN LARGEST LOAN BALANCE 498,254.65
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
CLASS A-5 0.00
CLASS A-6 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1997-2
Statement to Certificateholders
- --------------------------------------------------------------------------------
Distribution Date: Calendar Year 1997
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 A-5 0.00
CLASS A-6 0.00
BASIS RISK CARRYOVER AMOUNT INCLUDED IN DISTRIBUTION AMOUNT: 0.00
- --------------------------------------------------------------------------------
