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): December 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 33-0805105
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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)
ITEM 5. OTHER EVENTS
Attached hereto is a copy of the Statement to Certificateholders with
respect to the December , 1998, distribution to Certificateholders, as
provided to the Certificateholders by the Trustee.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
<PAGE>
Exhibit 99.1
Statement to Certificateholders Relating to December , 1998,
Distributions to Holders of Block Mortgage Finance Asset Backed
Certificates, Series 1998-1.
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
<PAGE>
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: January 4, 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 December, 1998, Distributions
to Holders of Block Mortgage
Finance Asset Backed Certificates,
Series 1998-1
<PAGE>
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: January 4, 1998 By: ____________________________________
Bret G. Wilson, President
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<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 22,558,887.75 119,374.11 2,128,129.83 2,247,503.94 0.00 0.00 20,430,757.92
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 72,465,058.66 350,222.06 2,509,370.76 2,859,592.82 0.00 0.00 69,955,687.90
R 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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TOTALS 184,320,000.00 146,623,946.41 750,117.01 4,637,500.59 5,387,617.60 0.00 0.00 141,986,445.82
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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 558.388311 2.954805 52.676481 55.631286 505.711830 6.350000% 6.350000%
A-2 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 784.933478 3.793567 27.181226 30.974792 757.752252 5.272340% 5.854380%
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: November 30, 1998 Irvine, CA 92714
DISTRIBUTION DATE: December 28, 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 : 12/28/98
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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, DAYS DAYS DAYS DAYS TOTAL
Bankruptcies & REOs)
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GROUP I
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PRINCIPAL BALANCE 6,085,167.33 1,845,007.62 232,137.49 208,805.90 8,371,118.34
PERCENTAGE OF POOL BALANCE 8.0348% 2.4361% 0.3065% 0.2757% 11.0531%
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NUMBER OF LOANS 140 34 7 7 188
PERCENTAGE OF LOANS IN POOL 8.1728% 1.9848% 0.4086 0.4086% 10.9749%
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GROUP II
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PRINCIPAL BALANCE 6,913,435.38 2,052,787.12 424,172.44 111,457.98 9,501,852.92
PERCENTAGE OF POOL BALANCE 9.4648% 2.8104% 0.5807% 0.1526% 13.0085%
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NUMBER OF LOANS 66 19 5 1 91
PERCENTAGE OF LOANS IN POOL 9.0287% 2.5992% 0.6840% 0.1368% 12.4487%
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FORECLOSURE LOAN INFORMATION:
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GROUP I
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PRINCIPAL BALANCE 40,858.61 92,313.56 341,861.81 3,527,952.31 4,002,986.29
PERCENTAGE OF POOL BALANCE 0.0539% 0.1219% 0.4514% 4.6583% 5.2855%
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NUMBER OF LOANS 3 3 11 60 77
PERCENTAGE OF LOANS IN POOL 0.1751% 0.1751% 0.6421% 3.5026% 4.4950%
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GROUP II
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PRINCIPAL BALANCE 00.00 57,274.35 470,378.50 1,275,732.65 1,803,385.50
PERCENTAGE OF POOL BALANCE 0.0000% 0.0784% 0.6440% 1.7465% 2.4689%
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NUMBER OF LOANS 0 1 5 16 22
PERCENTAGE OF LOANS IN POOL 0.0000% 0.1368% 0.6840% 2.1888% 3.0096%
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BANKRUPTCY LOAN INFORMATION:
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GROUP I
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PRINCIPAL BALANCE 1,097,015.58 164,242.87 201,015.31 1,310,567.76 2,772,841.52
PERCENTAGE OF POOL BALANCE 1.4485% 0.2169% 0.2654% 1.7305% 3.6612%
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NUMBER OF LOANS 17 3 4 24 48
PERCENTAGE OF LOANS IN POOL 0.9924% 0.1751% 0.2335% 1.4011% 2.8021%
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GROUP II
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PRINCIPAL BALANCE 403,420.52 153,130.46 215,336.41 1,233,626.57 2,005,513.96
PERCENTAGE OF POOL BALANCE 0.5523% 0.2096% 0.2948% 1.6889% 2.7456%
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NUMBER OF LOANS 4 1 2 15 22
PERCENTAGE OF LOANS IN POOL 0.5472% 0.1368% 0.2736% 2.0520% 3.0096%
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REO LOAN INFORMATION:
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GROUP I
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PRINCIPAL BALANCE 0.00 0.00 0.00 343,780.37 343,780.37
PERCENTAGE OF POOL BALANCE 0.0000% 0.0000% 0.0000% 0.4539% 0.4539%
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NUMBER OF LOANS 0 0 0 6 6
PERCENTAGE OF LOANS IN POOL 0.0000% 0.0000% 0.0000% 0.3503% 0.3503%
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GROUP II
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PRINCIPAL BALANCE 0.00 0.00 0.00 523,947.77 523,947.77
PERCENTAGE OF POOL BALANCE 0.0000% 0.0000% 0.0000% 0.7173% 0.7173%
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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
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1998-1
Statement To Certificateholders
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Distribution Date: 12/28/98
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<S> <C> <C>
SERVICER ADVANCES INCLUDED IN THIS DISTRIBUTION: 256,284.34
SERVICER ADVANCES OUTSTANDING: 0.00
ACCRUED SERVICING FEE THE THE CURRENT PERIOD : 63,693.28
PLUS ANY ADDITIONAL SERVICING FEES : 0.00
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63,693.28
LESS PERMITTED REDUCTIONS TO SERVICING FEES : 0.00
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TOTAL SERVICING FEES DUE MASTER SERVICER : 63,693.28
ACCRUED SERVICING FEES COLLECTED FOR CURRENT PERIOD : 52,010.06
COMPENSATING INTEREST: 0.00
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TOTAL SERVICING FEES COLLECTED MASTER SERVICER: 52,010.06
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GROUP I MONTHLY ADVANCE AMOUNT: 139,873.22
GROUP II MONTHLY ADVANCE AMOUNT: 116,411.12
TOTAL TRUSTEE FEES DUE: 1,910.80
TOTAL INSURANCE AMOUNT DUE : 27,873.00
PRINCIPAL REMITTANCE AMOUNTS:
SCHEDULED PRINCIPAL 97,713.97
CURTAILMENTS 112,547.61
PREPAYMENTS IN FULL 3,830,974.78
NET LIQUIDATION PROCEEDS 44,000.00
INSURANCE PRINCIPAL PROCEEDS 0.00
RELEASED MORTGAGED PROPERTY PROCEEDS 0.00
REPURCHASED PRINCIPAL AMOUNTS 0.00
SUBSTITUTION ADJUSTMENTS 0.00
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TOTAL PRINCIPAL DISTRIBUTED: 4,085,236.36
TOTAL AMOUNT OF LIQUIDATION LOAN LOSSES AS OF THE CURRENT DISTRIBUTION DATE: 6,912.05
AGGREGATE AMOUNT OF LIQUIDATION LOAN LOSSES AS OF THE CURRENT DISTRIBUTION DATE: 16,231.63
BOOK VALUE OF REO PROPERTY: 0.00
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Page 3 of 5 (C) COPYRIGHT 1998 Bankers Trust Company
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1998-1
Statement To Certificateholders
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Distribution Date: 12/28/98
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<S> <C>
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN THE POOL AS OF THE PRIOR DISTRIBUTION PERIOD: 2,512
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN THE POOL AS OF THE CURRENT DISTRIBUTION PERIOD: 2,444
AGGREGATE PRINCIPAL BALANCE OF LOANS IN THE POOL AS OF THE PRIOR DISTRIBUTION PERIOD: 152,863,871.27
AGGREGATE PRINCIPAL BALANCE OF LOANS IN THE POOL AS OF THE CURRENT DISTRIBUTION PERIOD: 148,778,634.91
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP I AS OF THE PRIOR DISTRIBUTION PERIOD: 1,758
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP I AS OF THE CURRENT DISTRIBUTION PERIOD: 1,713
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP I AS OF THE PRIOR DISTRIBUTION PERIOD: 77,561,061.31
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP I AS OF THE CURRENT DISTRIBUTION PERIOD: 75,735,145.95
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP II AS OF THE PRIOR DISTRIBUTION PERIOD: 754
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP II AS OF THE CURRENT DISTRIBUTION PERIOD: 731
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP II AS OF THE PRIOR DISTRIBUTION PERIOD: 75,302,809.96
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP II AS OF THE CURRENT DISTRIBUTION PERIOD: 73,043,488.96
GROUP I SUBORDINATION INCREASE AMOUNT: 309,126.52
GROUP II SUBORDINATION INCREASE AMOUNT: 266,281.39
GROUP I SUBORDINATION DEFICIT AMOUNT: 0.00
GROUP II SUBORDINATION DEFICIT AMOUNT: 0.00
GROUP I PRINCIPAL REMITTANCE AMOUNT: 2,128,129.83
GROUP II PRINCIPAL REMITTANCE AMOUNT: 2,509,370.76
GROUP I WEIGHTED AVERAGE COUPON AS OF THE CURRENT DISTRIBUTION DATE: 11.7038%
GROUP II WEIGHTED AVERAGE COUPON AS OF THE CURRENT DISTRIBUTION DATE: 10.5579%
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 372,045.45
GROUP II LARGEST LOAN BALANCE 628,548.43
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
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Block Mortgage Finance, Inc.
Asset Backed Certificates
Series 1998-1
Statement To Certificateholders
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Distribution Date: 12/28/98
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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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