<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 February 16, 1998
The Money Store Residential Trust 1997-II and the Originators as listed
below under a Pooling and Servicing Agreement dated as of August 31, 1997
providing for the issuance of The Money Store Residential Loan
Certificates, Series 1997-II
TMS Mortgage Inc.
The Money Store Home Equity Corp.
The Money Store/ Minnesota Inc.
The Money Store/ Kentucky Inc.
The Money Store/ D.C. Inc.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
New Jersey 333-20817-16 Applied For
State or other (Commission (IRS Employer
jurisdiction of File Number) ID Number)
incorporation)
2840 Morris Avenue, Union, New Jersey 07083
- --------------------------------------------------------------------------------
(Address of principal executive officer)
Registrant's Telephone Number,
including area code: (908) 686-2000
n/a
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
Item 5 Other Events
Attached herein as Annex A is a copy of the Monthly Statement sent
to Class Certificate holders with respect to the February 16, 1998
Remittance Date.
Item 7 Financial Statements and Exhibits
The quarterly financial statement for the period ended September 30,
1996 for M is incorporated by reference to the Form 10Q filed by MBIA Inc.
with the Securities a Commission on November 14, 1996.
<PAGE>
SIGNATURES
Pursuant to the requirements 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.
THE MONEY STORE INC.
By: /s/ Harry Puglisi
--------------------------------
Harry Puglisi
Treasurer
Dated: February 28, 1998
<PAGE>
Schedule A
List of Originators
Residential Trust 1997-II
The Money Store/Minnesota Inc.
The Money Store/D.C. Inc.
The Money Store/ Kentucky I
The Money Store Home Equity
TMS Mortgage Inc.
<PAGE>
SERVICER'S CERTIFICATE
IN ACCORDANCE WITH SECTION 6.10 OF THE POOLING AND SERVICING AGREEMENT
DATED AS OF NOVEMBER 30, 1997, THE MONEY STORE INC. REPORTS THE FOLLOWING
INFORMATION PERTAINING TO THE RESIDENTIAL TRUST 1997-II FOR THE FEBRUARY
11, 1998 DETERMINATION DATE.
1. AGGREGATE AMOUNT RECEIVED $ 2,601,290.87
LESS: SERVICE FEE 24,986.61
CONTINGENCY FEE 24,986.61
OTHER SERVICER FEES (Late Charges / Escrow) 2,351.95
UNREIMBURSED MONTHLY ADVANCES 0.00
--------------
52,325.17
PLUS: MONTHLY ADVANCE - INCLUDING
COMPENSATING INTEREST 114,521.18
PRE-FUNDING ACCOUNT TRANSFER 0.00
CAPITALIZED INTEREST ACCOUNT TRANSFER 0.00
--------------
114,521.18
AMOUNT WITHDRAWN FROM THE CERTIFICATE
ACCOUNT PURSUANT TO SECTION 6.01(b)(vi) 0.00
--------------
AVAILABLE REMITTANCE AMOUNT (I-2) 2,663,486.88
==============
2. (A) ORIGINAL CLASS A-1 PRINCIPAL BALANCE
49,105,066.85
(B) ORIGINAL CLASS A-2 PRINCIPAL BALANCE
17,885,000.00
(C) ORIGINAL CLASS A-3 PRINCIPAL BALANCE
12,315,000.00
(D) ORIGINAL CLASS A-4 PRINCIPAL BALANCE
16,693,000.00
(E) ORIGINAL CLASS M-1 PRINCIPAL BALANCE
13,837,000.00
(F) ORIGINAL CLASS M-2 PRINCIPAL BALANCE
13,837,000.00
(G) ORIGINAL CLASS B PRINCIPAL BALANCE
9,789,000.00
3. PRINCIPAL DISTRIBUTION AMOUNTS :
CLASS A-1 1,864,174.94
CLASS A-2 0.00
CLASS A-3 0.00
CLASS A-4 0.00
CLASS M-1 0.00
CLASS M-2 0.00
CLASS B 0.00
TOTAL PRINCIPAL DISTRIBUTION AMOUNT : 1,864,174.94
Series Resid 1997-II
<PAGE>
4. (A) CLASS A INTEREST SHORTFALL CARRYFORWARD AMOUNT 0.00
CLASS M INTEREST SHORTFALL CARRYFORWARD AMOUNT 0.00
CLASS B INTEREST SHORTFALL CARRYFORWARD AMOUNT 0.00
AGGREGATE INTEREST SHORTFALL CARRYFORWARD AMOUNT 0.00
(B) CLASS A REALIZED LOSS AMOUNT 0.00
CLASS M REALIZED LOSS AMOUNT 0.00
CLASS B REALIZED LOSS AMOUNT 0.00
AGGREGATE REALIZED LOSS AMOUNT 0.00
5. AVAILABLE MAXIMUM SUBORDINATION AMOUNT 7,604,173.00
6. PRINCIPAL PREPAYMENT RECEIVED DURING
THE DUE PERIOD
AMOUNT 549,695.41
# OF LOANS 86
7. AMOUNT OF CURTAILMENTS RECEIVED DURING
THE DUE PERIOD 128,445.85
8. AMOUNT OF EXCESS AND MONTHLY PAYMENTS
IN RESPECT OF PRINCIPAL RECEIVED DURING
THE DUE PERIOD 535,011.84
9. AMOUNT OF INTEREST RECEIVED 1,384,623.62
10. (A) AMOUNT OF MONTHLY ADVANCES TO BE MADE ON
THE DETERMINATION DATE
MONTHLY ADVANCE TO BE DEPOSITED IN THE CERTIFICATE
ACCOUNT PURSUANT TO SECTION 6.01(a)(ii) 114,521.18
(B) AMOUNT OF COMPENSATING INTEREST 465.30
11. DELINQUENT AND FORECLOSURE INFORMATION (EXHIBIT L)
12. AMOUNT OF REALIZED LOSSES DURING
THE DUE PERIOD 0.00
13. CLASS A-1 REMITTANCE AMOUNT:
(A) CURRENT INTEREST REQUIREMENT 272,123.91
(B) PRINCIPAL DISTRIBUTION AMOUNT 1,864,174.94
(C) CARRY FORWARD AMOUNT 0.00
(D) MONTHLY ADVANCE 0.00
TOTAL CLASS A-1 REMITTANCE AMOUNT 2,136,298.85
CLASS A-2 REMITTANCE AMOUNT:
(A) CURRENT INTEREST REQUIREMENT 99,559.83
(B) PRINCIPAL DISTRIBUTION AMOUNT 0.00
(C) CARRY FORWARD AMOUNT 0.00
(D) MONTHLY ADVANCE 0.00
TOTAL CLASS A-2 REMITTANCE AMOUNT 99,559.83
CLASS A-3 REMITTANCE AMOUNT:
(A) CURRENT INTEREST REQUIREMENT 70,246.81
(B) PRINCIPAL DISTRIBUTION AMOUNT 0.00
(C) CARRY FORWARD AMOUNT 0.00
(D) MONTHLY ADVANCE 0.00
TOTAL CLASS A-3 REMITTANCE AMOUNT 70,246.81
Series Resid 1997-II
<PAGE>
CLASS A-4 REMITTANCE AMOUNT:
(A) CURRENT INTEREST REQUIREMENT 102,731.50
(B) PRINCIPAL DISTRIBUTION AMOUNT 0.00
(C) CARRY FORWARD AMOUNT 0.00
(D) MONTHLY ADVANCE 0.00
TOTAL CLASS A-4 REMITTANCE AMOUNT 102,731.50
CLASS A REMITTANCE AMOUNT:
(A) CURRENT INTEREST REQUIREMENT 544,662.06
(B) PRINCIPAL DISTRIBUTION AMOUNT 1,864,174.94
(C) CARRY FORWARD AMOUNT 0.00
(D) MONTHLY ADVANCE 0.00
TOTAL CLASS A REMITTANCE AMOUNT 2,408,837.00
CLASS M-1 REMITTANCE AMOUNT:
(A) CURRENT INTEREST REQUIREMENT 87,807.30
(B) PRINCIPAL DISTRIBUTION AMOUNT 0.00
(C) CARRY FORWARD AMOUNT 0.00
(D) MONTHLY ADVANCE 0.00
TOTAL CLASS M-1 REMITTANCE AMOUNT 87,807.30
CLASS M-2 REMITTANCE AMOUNT:
(A) CURRENT INTEREST REQUIREMENT 90,055.81
(B) PRINCIPAL DISTRIBUTION AMOUNT 0.00
(C) CARRY FORWARD AMOUNT 0.00
(D) MONTHLY ADVANCE 0.00
TOTAL CLASS M-2 REMITTANCE AMOUNT 90,055.81
CLASS M REMITTANCE AMOUNT:
(A) CURRENT INTEREST REQUIREMENT 177,863.10
(B) PRINCIPAL DISTRIBUTION AMOUNT 0.00
(C) CARRY FORWARD AMOUNT 0.00
(D) MONTHLY ADVANCE 0.00
TOTAL CLASS M REMITTANCE AMOUNT 177,863.10
CLASS B REMITTANCE AMOUNT:
(A) CURRENT INTEREST REQUIREMENT 70,113.71
(B) PRINCIPAL DISTRIBUTION AMOUNT 0.00
(C) CARRY FORWARD AMOUNT 0.00
(D) MONTHLY ADVANCE 0.00
TOTAL CLASS B REMITTANCE AMOUNT 70,113.71
AGGREGATE REMITTANCE AMOUNT:
(A) CURRENT INTEREST REQUIREMENT 792,638.88
(B) PRINCIPAL DISTRIBUTION AMOUNT 1,864,174.94
(C) CARRY FORWARD AMOUNT 0.00
(D) MONTHLY ADVANCE 0.00
TOTAL REMITTANCE AMOUNT 2,656,813.82
14. (A) REIMBURSABLE AMOUNT (I-22) 0.00
(B) GP REMITTANCE AMOUNT PAYABLE 0.00
15. (A) CLASS A-1 PRINCIPAL BALANCE AFTER
DISTRIBUTION TO BE MADE ON THE
REMITTANCE DATE AND AFTER ALLOCATION
OF REALIZED LOSSES 47,240,891.91
Series Resid 1997-II
<PAGE>
(B) CLASS A-2 PRINCIPAL BALANCE AFTER
DISTRIBUTION TO BE MADE ON THE
REMITTANCE DATE AND AFTER ALLOCATION
OF REALIZED LOSSES 17,885,000.00
(C) CLASS A-3 PRINCIPAL BALANCE AFTER
DISTRIBUTION TO BE MADE ON THE
REMITTANCE DATE AND AFTER ALLOCATION
OF REALIZED LOSSES 12,315,000.00
(D) CLASS A-4 PRINCIPAL BALANCE AFTER
DISTRIBUTION TO BE MADE ON THE
REMITTANCE DATE AND AFTER ALLOCATION
OF REALIZED LOSSES 16,693,000.00
(D) CLASS M-1 PRINCIPAL BALANCE AFTER
DISTRIBUTION TO BE MADE ON THE
REMITTANCE DATE AND AFTER ALLOCATION
OF REALIZED LOSSES 13,837,000.00
(E) CLASS M-2 PRINCIPAL BALANCE AFTER
DISTRIBUTIONS TO BE MADE ON THE
REMITTANCE DATE AND AFTER ALLOCATION
OF REALIZED LOSSES 13,837,000.00
(F) CLASS B PRINCIPAL BALANCE AFTER
DISTRIBUTIONS TO BE MADE ON THE
REMITTANCE DATE AND AFTER ALLOCATION
OF REALIZED LOSSES 9,789,000.00
(G) TOTAL POOL PRINCIPAL BALANCE AFTER
DISTRIBUTION TO BE MADE ON THE
REMITTANCE DATE AND AFTER ALLOCATION
OF REALIZED LOSSES 131,596,891.91
16. TRIGGER EVENT CALCULATION TRIGGER ACTIVATED
THE TRIGGER EVENT WILL BE IN EFFECT IF EITHER
(1) (i) EXCEEDS 50% OF (ii)
(i) SIXTY-DAY DELINQUENCY RATIO 0.52%
(ii) CLASS A CREDIT ENHANCEMENT
PERCENTAGE 28.52% 1.81% NO
(2) BOTH (A) AND (B) OCCUR
(A) EITHER (X) OR (Y) OCCUR
(X) THE WEIGHTED AVERAGE FIVE-MONTH
SIXTY-DAY DELINQUENCY RATIO
EXCEEDS 9% OR 0.00%
(Y) THE CUMULATIVE REALIZED LOSSES
EXCEEDS $28,500,000 0.00 NO
(B) EITHER (X) OR (Y) OCCUR
(X) THE WEIGHTED AVERAGE FIVE-MONTH
SIXTY-DAY DELINQUENCY RATIO
EXCEEDS 15% OR 0.00%
(Y) THE CUMULATIVE REALIZED LOSSES
EXCEED $9,500,000 0.00 NO NO
(3) (i) IS GREATER THAN 75% OF (ii)
(i) PRIOR CLASS A & CLASS M PRINCIPAL
BALANCES 123,672,066.85
(ii) PRINCIPAL BALANCE AS OF THE END
OF THE SECOND PRECEDING DUE PERIOD 134,308,688.13 92.08% YES
IF EITHER (1), (2) OR (3) = "YES", THEN ------
THE TRIGGER EVENT IS ON EFFECT YES
======
Series Resid 1997-II
<PAGE>
17. CUMULATIVE REALIZED LOSSES 0.00
18. AMOUNT BY WHICH THE FORMULA DISTRIBUTION
AMOUNT EXCEEDS THE CLASS DISTRIBUTION AMOUNT 0.00
19. (A) SERVICING FEE FOR THE RELATED DUE PERIOD 24,986.61
(B) CONTINGENCY FEE FOR THE RELATED DUE PERIOD 24,986.61
(C) AMOUNT TO BE DEPOSITED TO THE EXPENSE
ACCOUNT - TRUSTEE 6,673.05
(D) FHA PREMIUM ACCOUNT 1,182.98
20. AMOUNT OF PAYMENTS AND REIMBURSEMENTS TO THE
SERVICERS PURSUANT TO:
(A) SECTION 5.04(b) 0.00
(B) SECTION 5.04(c) 0.00
(C) SECTION 5.04(d)(ii) 0.00
(D) SECTION 5.04(e) 0.00
(E) SECTION 5.04(f)(i) 49,973.22
21. CLASS A-1 POOL FACTOR (I-5):
CURRENT CLASS A-1 PRINCIPAL BALANCE 47,240,891.91 0.93280333
ORIGINAL CLASS A-1 PRINCIPAL BALANCE 50,644,000.00
CLASS A-2 POOL FACTOR (I-5):
CURRENT CLASS A-2 PRINCIPAL BALANCE 17,885,000.00 1.00000000
ORIGINAL CLASS A-2 PRINCIPAL BALANCE 17,885,000.00
CLASS A-3 POOL FACTOR (I-5):
CURRENT CLASS A-3 PRINCIPAL BALANCE 12,315,000.00 1.00000000
ORIGINAL CLASS A-3 PRINCIPAL BALANCE 12,315,000.00
CLASS A-4 POOL FACTOR (I-5):
CURRENT CLASS A-4 PRINCIPAL BALANCE 16,693,000.00 1.00000000
ORIGINAL CLASS A-4 PRINCIPAL BALANCE 16,693,000.00
CLASS M-1 POOL FACTOR (I-5):
CURRENT CLASS M-1 PRINCIPAL BALANCE 13,837,000.00 1.00000000
ORIGINAL CLASS M-1 PRINCIPAL BALANCE 13,837,000.00
CLASS M-2 POOL FACTOR (I-5):
CURRENT CLASS M-2 PRINCIPAL BALANCE 13,837,000.00 1.00000000
ORIGINAL CLASS M-2 PRINCIPAL BALANCE 13,837,000.00
CLASS B POOL FACTOR (I-5):
CURRENT CLASS B-1 PRINCIPAL BALANCE 9,789,000.00 1.00000000
ORIGINAL CLASS B-2 PRINCIPAL BALANCE 9,789,000.00
POOL FACTOR:
CURRENT POOL PRINCIPAL BALANCE 131,596,891.91 0.97479179
ORIGINAL POOL PRINCIPAL BALANCE 135,000,000.00
Series Resid 1997-II
<PAGE>
22. (A) WEIGHTED AVERAGE MORTGAGE
INTEREST RATE 13.841%
(B) ADJUSTED MORTGAGE INTEREST
RATE OF THE MORTGAGE LOANS 15.391%
(C) WEIGHTED AVERAGE CLASS A-1,
CLASS A-2, CLASS A-3, CLASS
A-4, CLASS M-1, CLASS M-2 AND
CLASS B ADJUSTED MORTGAGE LOAN
REMITTANCE RATE 6.366%
(D) WEIGHTED AVERAGE MORTGAGE ------------------------------------
INTEREST RATE FOR 11/30/97 12/31/97 01/31/98
------------------------------------
13.700% 13.841% 13.841%
23. (A) SENIOR PERCENTAGE 100.00%
(B) CLASS B PERCENTAGE 0.00%
24. (A) SPREAD AMOUNT 2,711,796.22
(B) SPECIFIED SUBORDINATED AMOUNT 7,425,000.00
25. (A) CLASS A APPLIED REALIZED LOSS AMOUNT 0.00
CLASS M APPLIED REALIZED LOSS AMOUNT 0.00
CLASS B APPLIED REALIZED LOSS AMOUNT 0.00
(B) UNPAID CLASS A REALIZED LOSS AMOUNT 0.00
UNPAID CLASS M REALIZED LOSS AMOUNT 0.00
UNPAID CLASS B REALIZED LOSS AMOUNT 0.00
26. ACCELERATED PRINCIPAL AMOUNT FOR THE
CURRENT REMITTANCE DATE 651,021.84
27. (A) AMOUNT TO BE DEPOSITED INTO THE FHA
PREMIUM ACCOUNT FOR THE DUE PERIOD 1,182.98
(B) AMOUNT REIMBURSABLE TO THE SERVICER
AND/OR THE CERTIFICATE INSURER FROM
THE FHA ACCOUNT PURSUANT TO
6.06(b)(i) 0.00
28. AMOUNT OF FHA PAYMENTS AND RELATED
PAYMENTS RECEIVED DURING THE MONTH 0.00
29. THE RESERVE AMOUNT FOR THE DUE PERIOD 13,500,000.00
30. CLAIMS FILED DURING THE DUE PERIOD 0.00
31. CLAIMS PAID DURING THE PERIOD 0.00
32. CLAIMS DENIED BY FHA DURING THE PERIOD 0.00
33. CLAIMS PENDING PAYMENT BY FHA DURING THE
DUE PERIOD 0.00
34. OTHER INFORMATION N/A
Series Resid 1997-II
<PAGE>
EXHIBIT O
REMIC DELINQUENCIES AS OF - JANUARY 31, 1998
<TABLE>
<CAPTION>
RESIDENTIAL OUTSTANDING #
TRUST DOLLARS ACCOUNTS RANGES AMOUNT NO PCT
<S> <C> <C> <C> <C> <C> <C>
1997-II $133,095,535.03 7,229 1 TO 29 DAYS 9,144,526.35 539 6.87%
30 TO 59 DAYS 758,159.74 64 0.57%
60 TO 89 DAYS 553,057.45 30 0.42%
90 AND OVER 134,412.11 15 0.10%
FORECLOSURE 0.00 0 0.00%
REO PROPERTY 0.00 0 0.00%
TOTALS $10,590,155.65 648 7.96%
==========================
</TABLE>
Series Resid 1997-II
<PAGE>
RESIDENTIAL TRUST 1997-II
The following additional information, presented in dollars, pursuant to Section
6.10 subclauses (ii), (vi), (vii), (viii), (xiii), (xv), (xxii) is provided for
each Class per $1,000 original dollar amount as of the Cut-Off Date.
SUBCLAUSE CLASS A-1 CLASS A-2 CLASS A-3 CLASS A-4
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(ii) 969.61 1,000.00 1,000.00 1,000.00
(vi) 10.85 0.00 0.00 0.00
(vii) 2.54 0.00 0.00 0.00
(viii) 10.56 0.00 0.00 0.00
(xiii) (a) 5.37 5.57 5.70 6.15
(b) 36.81 0.00 0.00 0.00
(c) 0.00 0.00 0.00 0.00
(d) 0.00 0.00 0.00 0.00
(xv) 932.80 1,000.00 1,000.00 1,000.00
(xxxv) 0.00 0.00 0.00 0.00
SUBCLAUSE CLASS M-1 CLASS M-2 CLASS B
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(ii) 1,000.00 1,000.00 1,000.00
(vi) 0.00 0.00 0.00
(vii) 0.00 0.00 0.00
(viii) 0.00 0.00 0.00
(xiii) (a) 6.35 6.51 7.16
(b) 0.00 0.00 0.00
(c) 0.00 0.00 0.00
(d) 0.00 0.00 0.00
(xv) 1,000.00 1,000.00 1,000.00
(xxxv) 0.00 0.00 0.00
Series Resid 1997-II
