SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FROM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 28, 1998
TRUST CREATED BY BLOCK MORTGAGE FINANCE, INC.
(under a Pooling and Servicing Agreement dated as of January 1, 1998,
which Trust is the Issuer of Block Mortgage Finance
Asset Backed Certificates, Series 1998-1)
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(Exact name of registrant as specified in its charter)
New York
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(State or other jurisdiction of incorporation)
333-14041 Applied For
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(Commission File Number) (IRS Employer Identification No.)
3 Park Plaza, 16th Floor
Irvine, California
Attention: Block Mortgage Finance
Asset Backed Certificates, Series 1998-1 92614
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 714-253-7575
Not applicable
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER MATTERS
This information is being filed in accordance with the provisions of
Rule 463 and Rule 701 regarding the use of proceeds in connection with the
Block Mortgage Finance Asset Backed Certificates, Series 1998-1. This
offering represents the third take-down of the shelf registration statement
filed by Block Mortgage Finance, Inc. on January 22, 1997.
1. The offering for the securities commenced on January 28, 1998.
2. The managing underwriters for the transaction were Morgan Stanley &
Co., Incorporated and Salomon Brothers Inc.
3. The following debt securities were issued:
a. Block Mortgage Finance Asset Backed Certificates,
Series 1998-1, Class A-1;
b. Block Mortgage Finance Asset Backed Certificates,
Series 1998-1, Class A-2;
c. Block Mortgage Finance Asset Backed Certificates,
Series 1998-1, Class A-3;
d. Block Mortgage Finance Asset Backed Certificates,
Series 1998-1, Class A-4;
e. Block Mortgage Finance Asset Backed Certificates,
Series 1998-1, Class A-5;
f. Block Mortgage Finance Asset Backed Certificates,
Series 1998-1, Class A-6
4. No class of convertible securities is being registered.
5. The following representing the aggregate offering price of securities
registered and sold to date for the account of the issuer.
Amount Aggregate Price of Amount Aggregate Price
Registered Offering Amt. Registered Sold of Amount Sold
Class A-1 40,400,000 40,391,668 40,400,000 40,391,668
Class A-2 18,500,000 18,479,948 18,500,000 18,479,948
Class A-3 10,900,000 10,893,751 10,900,000 10,893,751
Class A-4 13,000,000 12,984,411 13,000,000 12,984,411
Class A-5 9,200,000 9,190,950 9,200,000 9,190,950
Class A-6 92,320,000 92,320,000 92,320,000 92,320,000
Total 184,320,000 184,260,728 184,320,000 184,260,728
6. The following are reasonable estimates of the amount of expenses
incurred for the issuer's account in connection with the issuance and
distribution of the securities registered:
Underwriting discounts and commissions $509,263
Other Expenses 550,000
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Total Expenses 1,059,263
7. Net offering proceeds of $183,201,465 will be used for the purpose of
acquisition of mortgages. There is no material change in the use of
proceeds as described in the prospectus.
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OTHER EVENTS
Attached hereto is a copy of the Statement to Certificateholders with
respect to the February, 1998, distribution to Certificateholders, as
provided to the Certificateholders by the Trustee.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
Exhibit 99.1
Statement to Certificateholders Relating to February, 1998,
Distributions to Holders of Block Mortgage Finance Asset Backed
Certificates, Series 1998-1.
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
BLOCK MORTGAGE FINANCE, INC., as
Registrant
Date: March ___, 1998 By: /s/ Bret G. Wilson
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Bret G. Wilson, President
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EXHIBIT INDEX
Exhibit No. Description
99.1 Statement to Certificateholders
Relating to February, 1998, Distributions
to Holders of Block Mortgage
Finance Asset Backed Certificates,
Series 1998-1
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
BLOCK MORTGAGE FINANCE, INC., as
Registrant
Date: March ____, 1998 By: ____________________________________
Bret G. Wilson, President
<TABLE>
<CAPTION>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1998-1
Statement To Certificateholders
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DISTRIBUTIONS IN DOLLARS
PRIOR CURRENT
ORIGINAL PRINCIPAL REALIZED DEFERRED PRINCIPAL
CLASS FACE VALUE BALANCE INTEREST PRINCIPAL TOTAL LOSSES INTEREST BALANCE
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 40,400,000.00 40,400,000.00 213,783.33 859,984.55 1,073,767.88 0.00 0.00 39,540,015.45
A-2 18,500,000.00 18,500,000.00 96,354.17 0.00 96,354.17 0.00 0.00 18,500,000.00
A-3 10,900,000.00 10,900,000.00 59,041.67 0.00 59,041.67 0.00 0.00 10,900,000.00
A-4 13,000,000.00 13,000,000.00 75,291.67 0.00 75,291.67 0.00 0.00 13,000,000.00
A-5 9,200,000.00 9,200,000.00 49,833.33 0.00 49,833.33 0.00 0.00 9,200,000.00
A-6 92,320,000.00 92,320,000.00 420,415.02 438,587.00 859,002.02 0.00 0.00 91,881,413.00
R 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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TOTALS 184,320,000.00 184,320,000.00 914,719.19 1,298,571.55 2,213,290.74 0.00 0.00 183,021,428.45
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FACTOR INFORMATION PER $1000 OF ORIGINAL FACE PASS-THROUGH
PRIOR CURRENT RATES
PRINCIPAL PRINCIPAL
CLASS CUSIP BALANCE INTEREST PRINCIPAL TOTAL BALANCE CURRENT NEXT
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 09367MAL3 1,000.000000 5.291667 21.286746 26.578413 978.713254 6.350000% 6.350000%
A- 09367MAM1 1,000.000000 5.208334 0.000000 5.208334 1,000.000000 6.250000% 6.250000%
A-3 09367MAN9 1,000.000000 5.416667 0.000000 5.416667 1,000.000000 6.500000% 6.500000%
A-4 09367MAP4 1,000.000000 5.791667 0.000000 5.791667 1,000.000000 6.950000% 6.950000%
A-5 09367MAQ2 1,000.000000 5.416666 0.000000 5.416666 1,000.000000 6.500000% 6.500000%
A-6 09367MAR0 1,000.000000 4.553889 4.750726 9.304615 995.249274 5.855000% 5.855000%
R BL9801101 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000% 0.000000%
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SELLER: Block Financial Corporation ADMINISTRATOR: Vince Valdes
SERVICER: Block Financial Corporation Bankers Trust Company
LEAD UNDERWRITER: Morgan Stanley & Co. 3 Park Plaza
RECORD DATE: January 30, 1998 Irvine, CA 92714
DISTRIBUTION DATE: February 25, 1998 FACTOR INFORMATION: (800) 735-7777
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Page 1 of 5 (C) COPYRIGHT 1998 Bankers Trust Company
</TABLE>
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<TABLE>
<CAPTION>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1998-1
Statement To Certificateholders
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COMPANION SERVICING : Distribution Date : 02/25/98
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<S> <C> <C> <C> <C> <C>
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DELINQUENT LOAN INFORMATION: 1 - 30 31 - 60 60 - 90 91+
(Statistics Do Not Include Foreclosures, Bankruptcies & REOs DAYS DAYS DAYS DAYS TOTAL
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GROUP I
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PRINCIPAL BALANCE 18,157,451.99 372,942.89 25,038.00 0.00 18,555,432.88
PERCENTAGE OF POOL BALANCE 19.8407% 0.4075% 0.0274% 0.0000% 20.2756%
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NUMBER OF LOANS 399 5 1 0 405
PERCENTAGE OF LOANS IN POOL 19.3783% 0.2428% 0.0486% 0.0000% 19.6697%
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GROUP II
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PRINCIPAL BALANCE 17,469,384.70 421,726.21 0.00 0.00 17,891,110.91
PERCENTAGE OF POOL BALANCE 18.9444% 0.4573% 0.0000% 0.0000% 19.4017%
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NUMBER OF LOANS 158 5 0 0 163
PERCENTAGE OF LOANS IN POOL 17.4586% 0.5525% 0.0000% 0.0000% 18.0110%
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FORECLOSURE LOAN INFORMATION:
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GROUP I
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PRINCIPAL BALANCE 40,600.00 0.00 0.00 0.00 40,600.00
PERCENTAGE OF POOL BALANCE 0.0444% 0.0000% 0.0000% 0.0000% 0.0444%
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NUMBER OF LOANS 1 0 0 0 1
PERCENTAGE OF LOANS IN POOL 0.0486% 0.0000% 0.0000% 0.0000% 0.0486%
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GROUP II
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PRINCIPAL BALANCE 0.00 0.00 0.00 0.00 0.00
PERCENTAGE OF POOL BALANCE 0.0000% 0.0000% 0.0000% 0.0000% 0.0000%
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NUMBER OF LOANS 0 0 0 0 0
PERCENTAGE OF LOANS IN POOL 0.0000% 0.0000% 0.0000% 0.0000% 0.0000%
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BANKRUPTCY LOAN INFORMATION:
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GROUP I
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PRINCIPAL BALANCE 202,610.10 0.00 0.00 0.00 202,610.10
PERCENTAGE OF POOL BALANCE 0.2214% 0.0000% 0.0000% 0.0000% 0.2214%
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NUMBER OF LOANS 3 0 0 0 3
PERCENTAGE OF LOANS IN POOL 0.1457% 0.0000% 0.0000% 0.0000% 0.1457%
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GROUP II
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PRINCIPAL BALANCE 79,100.42 0.00 0.00 0.00 79,100.42
PERCENTAGE OF POOL BALANCE 0.0858% 0.0000% 0.0000% 0.0000% 0.0858%
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NUMBER OF LOANS 1 0 0 0 1
PERCENTAGE OF LOANS IN POOL 0.1105% 0.0000% 0.0000% 0.0000% 0.1105%
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REO LOAN INFORMATION:
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GROUP I
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PRINCIPAL BALANCE 0.00 0.00 0.00 0.00 0.00
PERCENTAGE OF POOL BALANCE 0.0000% 0.0000% 0.0000% 0.0000% 0.0000%
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NUMBER OF LOANS 0 0 0 0 0
PERCENTAGE OF LOANS IN POOL 0.0000% 0.0000% 0.0000% 0.0000% 0.0000%
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GROUP II
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PRINCIPAL BALANCE 0.00 0.00 0.00 0.00 0.00
PERCENTAGE OF POOL BALANCE 0.0000% 0.0000% 0.0000% 0.0000% 0.0000%
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NUMBER OF LOANS 0 0 0 0 0
PERCENTAGE OF LOANS IN POOL 0.0000% 0.0000% 0.0000% 0.0000% 0.0000%
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Page 2 of 5 (C) COPYRIGHT 1998 Bankers Trust Company
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<CAPTION>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1998-1
Statement To Certificateholders
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Distribution Date: 02/25/98
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<S> <C> <C>
SERVICER ADVANCES INCLUDED IN THIS DISTRIBUTION: 323,953.29
SERVICER ADVANCES OUTSTANDING: 0.00
ACCRUED SERVICING FEE THE THE CURRENT PERIOD : 76,803.70
PLUS ANY ADDITIONAL SERVICING FEES : 0.00
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76,803.70
LESS PERMITTED REDUCTIONS TO SERVICING FEES : (213.93)
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TOTAL SERVICING FEES DUE MASTER SERVICER : 76,589.77
ACCRUED SERVICING FEES COLLECTED FOR CURRENT PERIOD : 61,616.66
COMPENSATING INTEREST: 213.93
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TOTAL SERVICING FEES COLLECTED MASTER SERVICER: 61,402.73
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GROUP I MONTHLY ADVANCE AMOUNT: 178,943.57
GROUP II MONTHLY ADVANCE AMOUNT: 145,009.72
TOTAL TRUSTEE FEES DUE : 2,304.12
TOTAL INSURANCE AMOUNT DUE: 0.00
PRINCIPAL REMITTANCE AMOUNTS:
SCHEDULED PRINCIPAL 22,610.99
CURTAILMENTS 55,612.57
PREPAYMENTS IN FULL 520,575.94
NET LIQUIDATION PROCEEDS 0.00
INSURANCE PRINCIPAL 0.00
PROCEEDS
RELEASED MORTGAGED PROPERTY PROCEEDS 0.00
REPURCHASED PRINCIPAL AMOUNTS 0.00
SUBSTITUTION ADJUSTMENTS 0.00
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TOTAL PRINCIPAL DISTRIBUTED: 598,799.50
TOTAL AMOUNT OF LIQUIDATION LOAN LOSSES AS OF THE CURRENT DISTRIBUTION DATE: 0.00
AGGREGATE AMOUNT OF LIQUIDATION LOAN LOSSES AS OF THE CURRENT DISTRIBUTION DATE: 0.00
BOOK VALUE OF REO PROPERTY: 0.00
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Page 3 of 5 (C) COPYRIGHT 1998 Bankers Trust Company
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<TABLE>
<CAPTION>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1998-1
Statement To Certificateholders
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Distribution Date: 02/25/98
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<S> <C>
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN THE POOL AS OF THE PRIOR DISTRIBUTION PERIO: 2,977
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN THE POOL AS OF THE CURRENT DISTRIBUTION PERIOD: 2,964
AGGREGATE PRINCIPAL BALANCE OF LOANS IN THE POOL AS OF THE PRIOR DISTRIBUTION PERIOD: 184,328,890.11
AGGREGATE PRINCIPAL BALANCE OF LOANS IN THE POOL AS OF THE CURRENT DISTRIBUTION PERIOD: 183,730,090.61
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP I AS OF THE PRIOR DISTRIBUTION PERIOD: 2,071
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP I AS OF THE CURRENT DISTRIBUTION PERIOD: 2,059
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP I AS OF THE PRIOR DISTRIBUTION PERIOD: 92,008,420.38
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP I AS OF THE CURRENT DISTRIBUTION PERIOD: 91,516,084.09
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP II AS OF THE PRIOR DISTRIBUTION PERIOD: 906
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP II AS OF THE CURRENT DISTRIBUTION PERIOD: 905
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP II AS OF THE PRIOR DISTRIBUTION PERIOD: 92,320,469.73
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP II AS OF THE CURRENT DISTRIBUTION PERIOD: 92,214,006.52
GROUP I SUBORDINATION INCREASE AMOUNT: 367,648.26
GROUP II SUBORDINATION INCREASE AMOUNT: 332,123.79
GROUP I SUBORDINATION DEFICIT AMOUNT: 0.00
GROUP II SUBORDINATION DEFICIT AMOUNT: 0.00
GROUP I PRINCIPAL REMITTANCE AMOUNT: 859,984.55
GROUP II PRINCIPAL REMITTANCE AMOUNT: 438,587.00
GROUP I WEIGHTED AVERAGE COUPON AS OF THE CURRENT DISTRIBUTION DATE: 11.7568%
GROUP II WEIGHTED AVERAGE COUPON AS OF THE CURRENT DISTRIBUTION DATE: 10.2967%
GROUP I SUBSTITUTION ADJUSTMENT AMOUNT 0.00
GROUP II SUBSTITUTION ADJUSTMENT AMOUNT 0.00
GROUP I LOAN REPURCHASE AMOUNT 0.00
GROUP II LOAN REPURCHASE AMOUNT 0.00
GROUP I LARGEST LOAN BALANCE 373,834.16
GROUP II LARGEST LOAN BALANCE 632,058.94
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
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Page 4 of 5 (C) COPYRIGHT 1998 Bankers Trust Company
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<TABLE>
<CAPTION>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1998-1
Statement To Certificateholders
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Distribution Date: 02/25/98
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<S> <C>
TOTAL AMOUNT OF CARRY FORWARD AMOUNT INCLUDED IN DISTRIBUTION AMOUNT :
CLASS A-1 0.00
CLASS A-2 0.00
CLASS A-3 0.00
CLASS A-4 0.00
CLASS A-5 0.00
CLASS A-6 0.00
BASIS RISK CARRYOVER AMOUNT INCLUDED IN DISTRIBUTION AMOUNT : 0.00
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Page 5 of 5 (C) COPYRIGHT 1998 Bankers Trust Company
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