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): June 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 June 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 June 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 June 15, 1998.
ASSOCIATES HOME EQUITY SERVICES
MONTHLY SERVICING REPORT - 1998-1
May-98
Pass Through Original Ending
Rate Balance Pool Factor
Class A-1 6.620% 86440000.00 0.6709640
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 0.8881265
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 64488274.10 13501000.00 57029000.00
Beginning Pool Factor 0.7460467 1.0000000 1.0000000
Beginning Principal Balance 3,218 66175457.95 13501000.00 57029000.00
Principal Collected 0 $380,983.63 $0.00 $0.00
Principal Payments in Full 77 5293160.16 $0.00 $0.00
Liquidation Proceeds 0 $0.00 $0.00 $0.00
Optional Purchases by Servicer 4 $338,732.67 $0.00 $0.00
Defaulted Contracts 0 $0.00 $0.00 $0.00
Substitute Adjustment Amount $0.00 $0.00 $0.00
Ending Principal Balance 3,137 60162581.49 13501000.00 57029000.00
Ending Certificate Balance 57998127.10 13501000.00 57029000.00
Ending Pool Factor 0.6709640 1.0000000 1.0000000
Class M-1 Class M-2 Class B
Original Pool Balance 12919000.00 11157000.00 8808000.00
Beginning Certificate Balance 12919000.00 11157000.00 8808000.00
Beginning Pool Factor 1.0000000 1.0000000 1.0000000
Beginning Pool Balance 12919000.00 11157000.00 8808000.00
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
Contract Repurchases $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 12919000.00 11157000.00 8808000.00
Ending Certificate Balance 12919000.00 11157000.00 8808000.00
Ending Pool Factor 1.0000000 1.0000000 1.0000000
Class A-4 Class A-5 Total
Original Pool Balance 21542000.00 23489000.00 234885000.00
Beginning Certificate Balance 21542000.00 23489000.00 212933274.10
Beginning Pool Factor 1.0000000 1.0000000 1.0000000
Beginning Principal Balance 21542000.00 23489000.00 214620457.95
Principal Collected $0.00 $0.00 $380,983.63
Principal Payments in Full $0.00 $0.00 5293160.16
Liquidation Proceeds $0.00 $0.00 $0.00
Optional Purchases by Servicer $0.00 $0.00 $338,732.67
Defaulted Contracts $0.00 $0.00 $0.00
Substitute Adjustment Amount $0.00 $0.00 $0.00
Ending Principal Balance 21542000.00 23489000.00 208607581.49
Ending Certificate Balance 21542000.00 23489000.00 206443127.10
Ending Pool Factor 1.0000000 1.0000000 0.8881265
INTEREST
Class A-1 Class A-2 Class A-3
Interest Distribution Required Amount 355,760.31 71,892.83 303,204.18
Unpaid Interest Shortfall 0.00 0.00 0.00
Total Interest Distribution $355,760.31 $71,892.83 $303,204.18
Collected Interest Amount $644,335.29 $100,638.26 $425,101.78
Excess Interest to Principal $288,574.98 $28,745.43 $121,897.60
Class M-1 Class M-2 Class B
Interest Distribution Amount 76,222.10 67,964.73 57,619.00
Unpaid Interest Shortfall 0.00 0.00 0.00
Total Interest Distribution $76,222.10 $67,964.73 $57,619.00
Collected Interest Amount $96,299.95 $83,165.77 $65,656.01
Excess Interest for Overcollateralization $20,077.85 $15,201.04 $8,037.01
Class A-4 Class A-5 Total
Interest Distribution Required Amount 121,532.78 129,972.47 1184168.40
Unpaid Interest Shortfall 0.00 0.00 0.00
Total Interest Distribution $121,532.78 $129,972.47 1184168.40
Collected Interest Amount $160,576.94 $175,090.14 1750864.13
Excess Interest to Principal $39,044.16 $45,117.67 $566,695.73
DISTRIBUTIONS
Class A-1 Class A-2 Class A-3
Principal Distribution Amount 6,012,876.46 $0.00 $0.00
Extra Principal Distribution (O/C) 477,270.54 0.00 0.00
Interest Distribution 355,760.31 71,892.83 303,204.18
Total Distribution 6,845,907.31 $71,892.83 $303,204.18
Class M-1 Class M-2 Class B
Principal Distribution Amount $0.00 $0.00 $0.00
Extra Principal Distribution (O/C) 0.00 0.00 0.00
Interest Distribution 76,222.10 67,964.73 57,619.00
Total Distribution $76,222.10 $67,964.73 $57,619.00
Class A-4 Class A-5 Total
Principal Distribution Amount $0.00 $0.00 6012876.46
Extra Principal Distribution (O/C) 0.00 0.00 477,270.54
Interest Distribution 121,532.78 129,972.47 1184168.40
Total Distribution $121,532.78 $129,972.47 7674315.40
SERVICING FEES 0.50% $89,425.19
LATE FEES $6,471.76
EXTENSION FEES $0.00
MONTHLY ADVANCE INTEREST
Beginning Monthly Advance Amount $411,129.38
Monthly Amount Advanced $57,863.69
Ending Monthly Advance Amount $468,993.07
DELINQUENCY INFORMATION Actual Delinq. Percent
Days Delinquent Number Balance of Principal Balance
31-59 29 1,527,894.51 0.73243%
60-89 10 504,228.84 0.24171%
90 or more 3 317,810.13 0.15235%
Total Delinquent 42 2,349,933.48 1.12649%
Memo:Incl. Repo Inventory 42 2,349,933.48 1.12649%
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
May-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 Prin Bal of Subordinate Certs. 32884000.00
Ending Overcollateralization Amount 2,164,454.39
(x) 35048454.39
Total Ending Principal Balance (y) 208607581.49
Senior Enhancement Percentage (x)/(y) 16.80%
Senior Specified Enhancement Percentage 32.00%
Enhancement < 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 Original Pool Principal Balance (x1) 4,697,700.00
4% of Current Pool Principal Balance (x2) 8,344,303.26
x = (x) 8,344,303.26
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 2,164,454.39
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 Average of 60+ Day Delinqu (x)
1/2 the Senior Enhancement Percentage (y) 8.40%
If (x) is greater than (y), Trigger Event No
Weighted Average Maturity 222.448
Weighted Average Loan Rate 10.034%
ASSOCIATES HOME EQUITY SERVICES
MONTHLY SERVICING REPORT - 1998-1
May-98
1. Principal Interest
Distributable Distributable
Amount Amount
Class A-1 $75.082682 ( $6,490,147.00 ) 4.1157 (355,760.31 )
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 06/15/98
Initial CertificateEnding Certificate Pool
Principal Balance Principal Balance Factor
Class A-1 $86,440,000.00 $57,998,127.10 0.6709640
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 $206,443,127.10 0.8789115
4. Adjusted Certificate Principal Balance after allocation of Liquidation Loss
Amounts on: 06/15/98 :
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 29 $1,527,894.51 0.73243%
60-89 10 $504,228.84 0.24171%
90 or more 3 $317,810.13 0.15235%
Total Delinquent 42 $2,349,933.48 1.12649%
Memo: Including Repo Inventory 42 $2,349,933.48 1.12649%
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 $89,425.19
Late Fees 6,471.76
Extension Fees 0.00
Associates Home Equity Loan Trust 1998-1
Trustee Payment Reconciliation
05/31/98
AVAILABLE FUNDS PAYMENTS BY THE TRUSTEE
Principal Received $6,012,876.46 Class A-1 Principal $6,012,876.46
Defaulted Principal $0.00 Extra Principal Distribution 477,270.54
Collected Interest 1,750,864.13
Advanced Interest 57,863.69 Class A-1 Interest 355,760.31
Extension Fees 0.00 Class A-2 Interest 71,892.83
Late Charges 6,471.76 Class A-3 Interest 303,204.18
Class A-4 Interest 121,532.78
Total Available Funds $7,828,076.04 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 $1,184,168.40
Certificate Payments $7,674,315.40
Net Payment to Trustee $7,674,315.40
Memo: Reconciliation
Plus: Defaulted Principal $0.00
Plus: Class R Dist $0.00
Plus: Advanced Interest $57,863.69
Plus: Servicer Fee 89,425.19
Plus: Late/Extension Fees 6,471.76
Total Available Funds $7,828,076.04
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: May 31, 1998
