SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 reported): August 15, 1998
ASSOCIATES HOME EQUITY LOAN TRUST 1998-1
(Exact name of registrant as specified in its charter)
Texas 333-3964904 75-2751093
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
Associates Home Equity Receivables Corporation
250 East Carpenter Freeway
Irving, TX 75062
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (972) 652-4000
Item 5. Other Events
On August 15, 1998, the Principal and Interest collected during the
preceding calendar month, net of certain adjustments as provided for in the
Pooling and Servicing Agreement dated as of March 1, 1998 (the "Agreement"),
between Associates Home Equity Receivables Corp., as Seller and Associates
Home Equity Services, Inc., as Servicer, and The First National Bank of Chicago,
as Trustee (the "Trustee"), were distributed to holders ("Certificateholders")
of certificates representing undivided fractional interests in Associates Home
Equity Loan Trust 1988-1. In accordance with the Agreement, the Servicer's
Certificate, as defined in the Agreement, was furnished to the Trustee for the
benefit of the Certificateholders and the Trustee's Statement was distributed
by the Trustee to the Certificateholders. A copy of the Servicer's Certificate
and the Trustee's Statement is being filed as Exhibit 20.1 and 20.2,
respectively to this Current Report on Form 8-K.
A. Monthly Report Information:
Aggregate distribution information for the current
distribution date August 15, 1998.
Principal Interest Ending Balance
See Exhibit 1.
B. No delinquency in payment under the Certificate
Guaranty Insurance Policy has occurred.
C. Have any deficiencies occurred? NO.
Date:
Amount:
D. Were any amounts paid or are any amounts payable under
the Certificate Guaranty Insurance Policy? NO
Amount:
E. Are there any developments with respect to the
Certificate Insurance Guaranty Policy? NONE.
F. Item 1: Legal Proceedings: NONE
G. Item 2: Changes in Securities: NONE
H Item 4: Submission of Matters to a Vote of
Certificatholders: NONE
I. Item 5: Other Information - Form 10-Q, Part II - Items
1,2,4,5 if applicable: NOT APPLICABLE
Item 7. Monthly Statements and Exhibits
Exhibit No.
1. Monthly Servicer Certificate dated August 15, 1998.
ASSOCIATES HOME EQUITY SERVICES
MONTHLY SERVICING REPORT - 1998-1
Jul-98
Pass Through Original Ending
Rate Balance Pool Factor
Class A-1 6.620% 86440000.00 0.4885397
Class A-2 6.390% 13501000.00 1.0000000
Class A-3 6.380% 57029000.00 1.0000000
Class A-4 6.770% 21542000.00 1.0000000
Class A-5 6.640% 23489000.00 1.0000000
Class M-1 7.080% 12919000.00 1.0000000
Class M-2 7.310% 11157000.00 1.0000000
Class B 7.850% 8808000.00 1.0000000
6.668%234885000.00 0.8117776
PRINCIPAL
Loan Count Class A-1 Class A-2 Class A-3
Original Pool Balance 3,492 86440000.00 13501000.00 57029000.00
Beginning Certificate Balance 49335023.30 13501000.00 57029000.00
Beginning Pool Factor 0.5707430 1.0000000 1.0000000
Beginning Principal Balance 3,026 52078121.80 13501000.00 57029000.00
Principal Collected 0 $247,251.15 $0.00 $0.00
Principal Payments in Full 95 6,293,191.24 $0.00 $0.00
Liquidation Proceeds 0 $0.00 $0.00 $0.00
Optional Purchases by Servicer 0 $0.00 $0.00 $0.00
Defaulted Contracts 1 $11,295.36 $0.00 $0.00
Substitute Adjustment Amount $0.00 $0.00 $0.00
Ending Principal Balance 2,930 45526384.05 13501000.00 57029000.00
Ending Certificate Balance 42229371.75 13501000.00 57029000.00
Ending Pool Factor 0.4885397 1.0000000 1.0000000
Class A-4 Class A-5 Class M-1
Original Pool Balance 21542000.00 23489000.00 12919000.00
Beginning Certificate Balance 21542000.00 23489000.00 12919000.00
Beginning Pool Factor 1.0000000 1.0000000 1.0000000
Beginning Principal Balance 21542000.00 23489000.00 12919000.00
Principal Collected $0.00 $0.00 $0.00
Principal Payments in Full $0.00 $0.00 $0.00
Liquidation Proceeds $0.00 $0.00 $0.00
Optional Purchases by Servicer $0.00 $0.00 $0.00
Defaulted Contracts $0.00 $0.00 $0.00
Substitute Adjustment Amount $0.00 $0.00 $0.00
Ending Principal Balance 21542000.00 23489000.00 12919000.00
Ending Certificate Balance 21542000.00 23489000.00 12919000.00
Ending Pool Factor 1.0000000 1.0000000 1.0000000
Class M-2 Class B Total
Original Pool Balance 11157000.00 8808000.00 234885000.00
Beginning Certificate Balance 11157000.00 8808000.00 197780023.30
Beginning Pool Factor 1.0000000 1.0000000 0.8420292
Beginning Pool Balance 11157000.00 8808000.00 200523121.80
Principal Collected $0.00 $0.00 $247,251.15
Principal Payments in Full $0.00 $0.00 6,293,191.24
Liquidation Proceeds $0.00 $0.00 $0.00
Contract Repurchases $0.00 $0.00 $0.00
Defaulted Contracts $0.00 $0.00 $11,295.36
Substitute Adjustment Amount $0.00 $0.00 $0.00
Ending Principal Balance 11157000.00 8808000.00 193971384.05
Ending Certificate Balance 11157000.00 8808000.00 190674371.75
Ending Pool Factor 1.0000000 1.0000000 0.8117776
INTEREST
Class A-1 Class A-2 Class A-3
Interest Distribution Required Amount 272,164.88 71,892.83 303,204.18
Unpaid Interest Shortfall 0.00 0.00 0.00
Total Interest Distribution $272,164.88 $71,892.83 $303,204.18
Collected Interest Amount $643,771.98 $100,550.27 $424,730.13
Excess Interest to Principal $371,607.10 $28,657.44 $121,525.95
Class A-4 Class A-5 Class M-1
Interest Distribution Required Amount 121,532.78 129,972.47 76,222.10
Unpaid Interest Shortfall 0.00 0.00 0.00
Total Interest Distribution $121,532.78 $129,972.47 $76,222.10
Collected Interest Amount $160,436.56 $174,937.07 $96,215.76
Excess Interest to Principal $38,903.78 $44,964.60 $19,993.66
Class M-2 Class B Total
Interest Distribution Amount 67,964.73 57,619.00 1100572.97
Unpaid Interest Shortfall 0.00 0.00 0.00
Total Interest Distribution $67,964.73 $57,619.00 1100572.97
Collected Interest Amount $83,093.06 $65,598.61 1749333.43
Excess Interest for Overcollateralization $15,128.33 $7,979.61 $648,760.46
DISTRIBUTIONS
Class A-1 Class A-2 Class A-3
Principal Distribution Amount 6,551,737.75 $0.00 $0.00
Extra Principal Distribution (O/C) 553,913.80 0.00 0.00
Interest Distribution 272,164.88 71,892.83 303,204.18
Total Distribution 7,377,816.43 $71,892.83 $303,204.18
Class A-4 Class A-5 Class M-1
Principal Distribution Amount $0.00 $0.00 $0.00
Extra Principal Distribution (O/C) 0.00 0.00 0.00
Interest Distribution 121,532.78 129,972.47 76,222.10
Total Distribution $121,532.78 $129,972.47 $76,222.10
Class M-2 Class B Total
Principal Distribution Amount $0.00 $0.00 6551737.75
Extra Principal Distribution (O/C) 0.00 0.00 553,913.80
Interest Distribution 67,964.73 57,619.00 1100572.97
Total Distribution $67,964.73 $57,619.00 8206224.52
SERVICING FEES 0.50% $83,551.30
LATE FEES $4,898.13
EXTENSION FEES $0.00
MONTHLY ADVANCE INTEREST
Beginning Monthly Advance Amount $454,518.09
Monthly Amount Advanced $16,730.21
Ending Monthly Advance Amount $471,248.30
DELINQUENCY INFORMATION Actual Delinq. Percent
Days Delinquent Number Balance of Principal Balance
31-59 74 4,227,801.30 2.17960%
60-89 4 236,212.42 0.12178%
90 or more 10 614,121.15 0.31660%
Total Delinquent 88 5,078,134.87 2.61798%
Memo:Incl. Repo Inventory 88 5,078,134.87 2.61798%
Cumulative Cumulative
REPOSSESSION INFORMATION Actual Units Balance
Number Balance To Date To Date
BOP Repossessions 0 $0.00
Plus Repossessions In Month 0 0.00 0 0.00
Less Liquidations 0 0.00 0 0.00
EOP Repossessions 0 $0.00 0 $0.00
REPURCHASES
Number Actual Balance
Contracts Repurchased for Replacement 0 $0.00
Eligible Substitute Contracts 0 0.00
Difference Paid by Servicer 0 $0.00
LOSSES
Jul-98
Units Dollars
Realized Losses 0.00 $0.00
Cumulative Realized Losses 0.00 $0.00 0.00%
Loss Expenses 0.00 $0.00
Cumulative Loss Expenses 0.00 $0.00
Class R Distribution $0.00
DETERMINATION OF STEPDOWN DATE
The Later to occur of Mar-2001 Date not reached
OR
Ending Principal Balance of Subordinate Certs. 32884000.00
Ending Overcollateralization Amount 3,297,012.30
(x) 36181012.30
Total Ending Principal Balance (y) 193971384.05
Senior Enhancement Percentage (x)/(y) 18.65%
Senior Specified Enhancement Percentage 32.00%
Enhancement Less Than Required
Stepdown Determined by Calculation 03/16/2001
DETERMINATION OF TARGETED OVERCOLLATERALIZATION
AMOUNT
Prior to Stepdown Date? Yes
Target Overcollateralization Amount 2.00%
Calculation:
The Lesser x or y below
The Greater of the following
2% of the Original Pool Principal Balance (x1) 4,697,700.00
4% of the Current Pool Principal Balance (x2) 7,758,855.36
x = (x) 7,758,855.36
y = (y) 1,174,425.00
The Lesser of x or y 1,174,425.00
Required Overcollateralization Amount 4,697,700.00
Current Overcollateralization Amount 3,297,012.30
Overcollateralization Release Amount None
LOSS TRIGGER EVENT
Loss Trigger Event Test for Current Period 1.30%
Cumulative Realized Loses as a Percent of Original 0.00%
Loss Trigger Event? No
DETERMINATION OF TRIGGER EVENT
6 Month Rolling Avg of 60+ Day Delinquent (x)
1/2 the Senior Enhancement Percentage (y) 9.33%
If (x) is greater than (y), Trigger Event No
Weighted Average Maturity 222.201
Weighted Average Loan Rate 10.037%
ASSOCIATES HOME EQUITY SERVICES
MONTHLY SERVICING REPORT - 1998-1
Jul-98
1. Principal Interest
Distributable Distributable
Amount Amount
Class A-1 $82.203280 ( $7,105,651.55 ) 3.1486 (272,164.88 )
Class A-2 $0.000000 ( $0.00 ) 5.3250 ( 71,892.83 )
Class A-3 $0.000000 ( $0.00 ) 5.3167 (303,204.18 )
Class A-4 $0.000000 ( $0.00 ) 5.6417 (121,532.78 )
Class A-5 $0.000000 ( $0.00 ) 5.5333 (129,972.47 )
Class M-1 $0.000000 ( $0.00 ) 5.9000 ( 76,222.10 )
Class M-2 $0.000000 ( $0.00 ) 6.0917 ( 67,964.73 )
Class B-1 $0.000000 ( $0.00 ) 6.5417 ( 57,619.00 )
2. Liquidation Loss Amount None
Liquidation Loss Interest Amount None
Unpaid Liquidation Loss Interest Shortfall None
Unpaid Certificate Principal Shortfall None
3. Certificate Principal Balances after distribution 08/15/98
Initial CertificateEnding Certificate Pool
Principal Balance Principal Balance Factor
Class A-1 $86,440,000.00 $42,229,371.75 0.4885397
Class A-2 $13,501,000.00 $13,501,000.00 1.0000000
Class A-3 $57,029,000.00 $57,029,000.00 1.0000000
Class A-4 $21,542,000.00 $21,542,000.00 1.0000000
Class A-5 $23,489,000.00 $23,489,000.00 1.0000000
Class M-1 $12,919,000.00 $12,919,000.00 1.0000000
Class M-2 $11,157,000.00 $11,157,000.00 1.0000000
Class B-1 $8,808,000.00 $8,808,000.00 1.0000000
Pool Balance $234,885,000.00 $190,674,371.75 0.8117776
4. Adjusted Certificate Principal Balance after allocation of Liquidation Loss
Amounts on 08/15/98 :
Principal
Balance
Class M-1 $12,919,000.00
Class M-2 $11,157,000.00
Class B $8,808,000.00
5. Delinquent Contracts
Days Delinquent Number Actual Balance Percentage
31-59 74 $4,227,801.30 2.17960%
60-89 4 $236,212.42 0.12178%
90 or more 10 $614,121.15 0.31660%
Total Delinquent 88 $5,078,134.87 2.61798%
Memo: Including Repo Inventory 88 $5,078,134.87 2.61798%
Number of Actual
6. Repossession Information Units Balance
BOP Repossessions 0 $0.00
Plus Repossessions In Month 0 $0.00
Less Liquidations 0 $0.00
EOP Repossessions 0 $0.00
7. Fees Paid to the Servicer
Servicing Fees $83,551.30
Late Fees 4,898.13
Extension Fees 0.00
Associates Home Equity Loan Trust 1998-1
Trustee Payment Reconciliation
07/31/98
AVAILABLE FUNDS PAYMENTS BY THE TRUSTEE
Principal Received $6,540,442.39 Class A-1 Principal $6,551,737.75
Defaulted Principal $11,295.36 Extra Principal Distribution 553,913.80
Collected Interest 1,749,333.43
Advanced Interest 16,730.21 Class A-1 Interest 272,164.88
Extension Fees 0.00 Class A-2 Interest 71,892.83
Late Charges 4,898.13 Class A-3 Interest 303,204.18
Class A-4 Interest 121,532.78
Total Available Funds $8,322,699.52 Class A-5 Interest 129,972.47
Class M-1 Interest 76,222.10
Class M-2 Interest 67,964.73
Class B Interest 57,619.00
Total Interest $1,100,572.97
Certificate Payments $8,206,224.52
Net Payment to Trustee $8,206,224.52
Memo: Reconciliation
Plus: Defaulted Principal $11,295.36
Plus: Class R Dist $0.00
Plus: Advanced Interest $16,730.21
Plus: Servicer Fee 83,551.30
Plus: Late/Extension Fees 4,898.13
Total Available Funds $8,322,699.52
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.
Associates Home Equity Loan Trust 1998-1
By: ASSOCIATES HOME EQUITY SERVICES, INC., as Servicer
/s/ Marvin T. Runyon
Name: Marvin T. Runyon, III
Title: Senior Vice President
Dated: July 31, 1998
