SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
[X] ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) of
THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from________________to_______________.
Commission file number '033-99510-08
ADVANTA Mortgage Loan Trust 1998-2
New York 33-0816529
(State of other jurisdictio (IRS Employer
incorporation or organizat Identification No.)
c/o Bankers Trust Company
4 Albany Street
New York, NY 10015
Registrant's telephone number, including area code: (212) 250-2500
Securities registered pursuant to Section 12(b) of the Act.
Title of each class Name of each exchange on
which registered:
None None
Securities registered pursuant to Section 12(g) of the Act:
None
(Title of class)
Indicated by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K ($ 229.405 of this chapter) is not contained herein, and will
not be contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K. [X]
State the aggregate market value of the voting stock held by non-affiliates
of registrant. The aggregate market value shall be computed by reference to
the price at which the stock was sold, or the average bid and asked prices
of such stock, as of specified date within 60 days prior to the date of filing:
$816,228,407.82
Documents Incorporated by Reference: Not Applicable
PART 1
ITEM 1 - BUSINESS
The ADVANTA Mortgage Loan Trust 1998-2, (the "Trust" or "Issuer") is
a New York common law trust established as of June 1, 1998,
pursuant to a Pooling and Servicing Agreement (the "Pooling and Servicing
Agreement") between ADVANTA Mortgage Conduit Services, Inc. as sponsors
(the "Sponsor") and ADVANTA Mortgage Corp. USA as Master Servicer
(the "Master Servicer") (together, the "Companies") and Bankers Trust
Company, acting thereunder not in its individual capacity but solely as
trustee (the "Trustee"). The Issuer's only purpose is the issuance of
$925,000,000.00 principal amount of ADVANTA Mortgage Loan Asset-Backed
Certificates, Series 1998-2, Class A-1, Class A-2, Class A-3, Class A-4,
Class A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class A-10, Class
A-11, Class A-12, Class A-13, Class A-14, Class A-15, Class A-16, Class
A-17, Class A-18, Class A-19, Class F-IO and Class A-IO (the "Certificates")
and the subordinated residual certificates pursuant to the Pooling
and Servicing Agreement. On June 22, 1998, the Sponsor sold
$925,000,000.00 aggregate principal amount of mortgage loans (the "Mort-
gage Loans"), to the Issuer in exchange for the Certificates, and sold the
Certificates pursuant to a public offering, the underwriting of which was
co-managed by Morgan Stanley Dean Witter, Lehamn Brothers and
Prudential Securities Incorporated. The Mortgage Loans and the
distributions thereon, along with certain insurance proceeds, certain proceeds
obtained on foreclosure and any investment income earned thereon, are the
only significant assets of the Issuer. The Certificates represent obligations
solely of the Issuer. The Certificates were registered under a Registration
Statement (file no. 333-37107) on Form S-3 declared effective on October 30,
1997.
ITEM 2 - PROPERTIES
The Issuer neither owns nor leases any physical properties.
ITEM 3 - LEGAL PROCEEDINGS
The Master Servicer is not aware of any material pending legal proceedings
involving either the Issuer, the Trustee, the Sponsor or the Master Servicer
with respect to the Certificates or the Issuer's property.
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matter has been submitted to a vote of the holders of beneficial interests
in the Issuer through the solicitation of proxies or otherwise.
PART II
ITEM 5 - MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED STOCK-
HOLDER MATTERS
The Trust is not an issuer of common stock in a corporation, although the
Certificates represent equity interest that has voting rights. The equity of
the Trust consists of the beneficial or ownership interest therein for which,
to the best knowledge of the Master Servicer, there is no established
public trading market.
As of March 4, 1999, there were approximately 7 holders of the Class A-1
Certificates, 1 holder of the Class A-2 Certificates, 13 holders of the Class
A-3 Certificates, 3 holders of the Class A-4 Certificates, 2 holders of the
Class A-5 Certificates, 5 holders of the Class A-6 Certificates, 5 holders of
the Class A-7 Certificates, 1 holder of the Class A-8 Certificates, 1 holder of
the Class A-9 Certificates, 1 holder of the Class A-10 Certificates, 1 holder of
the Class A-11 Certificates, 1 holder of the A-12 Certificates, 1 holder of the
Class A-13 Certificates, 1 holder of the Class A-14 Certificates, 1 holder of
the Class A-15 Certificates, 6 holders of the Class A-16 Certificates, 9
holders of the Class A-17 Certificates, 4 holders of the Class A-18
Certificates, 3 holders of the Class A-19 Certificates, 4 holders of the Class
F-IO Certificates, and 1 holder of the Class A-IO Certificates. The number of
holders includes individual participants in security position listings. As of
December 26, 1998, 6 monthly distributions had been made to the holders
of the Certificates.
ITEM 6 - SELECTED FINANCIAL DATA
Not applicable.
ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATION
On June 22, 1998, the Issuer issued $73,000,000.00 aggregate
principal amount of Class A-1 Certificates having a pass-thru rate of 6.44%,
$41,000,000.00 aggregate principal amount of Class A-2 Certificates
having a pass-thru rate of 6.12% per annum, $34,000,000 aggregate
principal amount of Class A-3 Certificates having a pass-thu rate of 6.19% per
annum, $17,000,000 aggregate principal amount of Class A-4 Certificates
having a pass-thru rate of 6.31% per annum, $24,000,000 aggregate
principal amount of Class A-5 Certificates having a pass-thru rate of 6.33%
per annum, $27,000,000 aggregate principal amount of Class A-6 Certificates
having a pass-thru rate of 6.63% per annum, $15,000,000 aggregate principal
amount of Class A-7 Certificates having a pass-thru rate of 6.15%, $9,000,000
aggregate principal amount of Class A-8 Certificates having a pass-thru rate
of 6.36% per annum, $88,000,000 aggregate principal amount of Class A-9
Certificates having a pass-thru rate of 6.44%, $61,000,000 aggregate principal
amount of Class A-10 Certificates having a pass-thru rate of 6.12%, $38,000,000
aggregate principal amount of Class A-11 Certificates having a pass-thru rate
of 6.21% per annum, $28,000,000 aggregate principal amount of Class A-12
Certificates having a pass-thru rate of 6.33%, $28,000,000 aggregate principal
amount of Class A-13 Certificates having a pass-thru rate of 6.36%, $36,000,000
aggregate principal amount of Class A-14 Certificates having a pass-thru rate of
6.65%, $31,000,000 aggregate principal amount of Class A-15 Certificates
having a pass-thru rate of 6.25%, $180,000,000 aggregate principal amount of
Class A-16 Certificates having a floating rate, $60,000,000 aggregate principle
amount of Class A-17 having a pass-thru rate of 6.05%, $101,250,000 aggregate
principle amount of Class A-18 having a floating rate, $33,750,000 aggregate
principle amount of Class A-19 having a pass-thru rate of 6.05%,
which are collateralized by Mortgage Loans. The sale of the Mortgage Loans
to the Issuer, the issuance of the Certificates and the simultaneous delivery
of the Certificates to the Companies for sale pursuant to a public offering, the
underwriting of which was co-managed by Morgan Stanley Dean Wittier
Lehman Brothers, Prudential Securities Incorporated has been accounted
for as a sale of the Certificates.
The value of the Certificates issued by the Issuer equaled the value of the
Mortgage Loans conveyed to the Issuer by the Companies, plus funds held in
the Prefunding Account (if any) and subsequently used to acquire additional
mortgage loans. Accordingly, there was no income, expense, gain or loss
resulting from the aforementioned transaction.
CAPITAL RESOURCES AND LIQUIDITY
The Issuer's primary sources of funds with respect to the Certificates will be
receipts of interest on and principal of the Mortgage Loans, along with certain
insurance proceeds, certain proceeds obtained on foreclosure and any
investment income earned thereon. The respective management's of the
Companies believe that the Issuer will have sufficient liquidity and capital
resources to pay all amounts on the Certificates as they become due and
all other anticipated expenses of the Issuer. The Issuer does not have, nor
will it have in the future, any significant source of capital for payment of the
Certificates and its operating expenses other than the receipt of interest on
and principal of the mortgage loans, certain insurance proceeds and certain
proceeds obtained on foreclosure and any payments made by the Certificate
Insurer. The Issuer is a limited purpose trust. The Certificates represent
obligations solely of the Issuer.
ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Not applicable.
ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
There were no changes of accountants or disagreements on accounting or
financial disclosures between the Issuer and its accountants.
PART III
ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The Issuer does not have any directors or officers.
ITEM 11 - EXECUTIVE COMPENSATION
Not applicable.See "Item 10-Directors and Executive Officers of the Registrant".
ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
The following table sets forth (i) the name and address of each entity owning
more than 5% of the outstanding principal amount of the ADVANTA
Mortgage Loan Certificates, Series 1998-2, Class A-1 ("Class A-1 Certificates"),
Class A-2 ("Class A-2 Certificates"), Class A-3 ("Class A-3 Certificates"),
Class A-4 ("Class A-4 Certificates"), Class A-5 ("Class A-5 Certificates"),
Class A-6 ("Class A-6 Certificates"), Class A-7 ("Class A-7 Certificates"),
Class A-8 ("Class A-8 Certificates"), Class A-9 ("Class A-9 Certificates"),
Class A-10 ("Class A-10 Certificates"),Class A-11 ("Class A-11 Certificates"),
Class A-12 ("Class A-12 Certificates"),Class A-13 ("Class A-13 Certificates"),
Class A-14 ("Class A-14 Certificates"),Class A-15 ("Class A-15 Certificates"),
Class A-16 ("Class A-16 Certificates"),Class A-17 ("Class A-17 Certificates"),
Class A-18 ("Class A-18 Certificates"),Class A-19 ("Class A-19 Certificates"),
Class F-IO ("Class F-IO Certificates"),Class A-IO ("Class A-IO Certificates"),
(ii) the principal amount of the Class A-1 Certificates, Class A-2 Certificates,
Class A-3 Certificates, Class A-4 Certificates, Class A-5 Certificates, Class
A-6 Certificates, Class A-7 Certificates, Class A-8 Certificates, Class A-9
Certificates, Class A-10 Certificates, Class A-11 Certificates, Class A-12
Certificates, Class A-13 Certificates, Class A-14 Certificates, Class A-15
Certificates, Class A-16 Certificates, Class A-17 Certificates, Class A-18
Certificates, Class A-19 Certificates, Class F-IO Certificates, or Class A-IO
Certificates and (iii) the percent that the principal amount of Class A-1,
Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class A-7, Class
A-8, Class A-9, Class A-10, Class A-11, Class A-12, Class A-13, Class
A-14, Class A-15, Class A-16, Class A-17, Class A-18, Class A-19, Class
F-IO or Class A-IO Certificates owned represents of the outstanding
principal amount of the Class A-1, Class A-2, Class A-3, Class A-4,
Class A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class A-10, Class
A-11, Class A-12, Class A-13, Class A-14, Class A-15, Class A-16, Class
A-17, Class A-18, Class A-19, Class F-IO, or Class A-IO Certificates,
respectively. The information set forth in the table is based upon
information obtained by the Issuer from Depository Trust Company.
The Master Servicer is not aware of any Schedules 13D or 13G filed with the
Securities and Exchange Commission in respect of the Certificates.
Amount Owned
(All Dollar Amounts are in Thousands)
Name and Address Principal Percent
Class A-1 Certificates
Brown Brothers Harriman & Co.
Robert Davide
63 Wall Street, 8th Floor
New York, NY 10005 16.44%
Chase Manhattan Bank
Orma Trim, Supervisor
4 New York Plaza, 13th Floor
New York, NY 10004 58.90%
Investors Bank & Trust/MF Custody
Joanne Lowe, 15th Floor
200 Clarendon Street
Boston, MA 02116 8.22%
Merrill Lynch, Pierce Fenner & Smith
V. O'Neill, Corp Park 287
4 Corporate Place
Piscataway, NJ 08855 5.48%
State Street Bank & Trust
Global Corp Action Dept JAB5W
PP Box 1631
Boston, MA 02105-1631 8.22%
Class A-2 Certificates
Chase Manhattan Bank
Orma Trim, Supervisor
4 New York Plaza, 13th Floor
New York, NY 10004 100.00%
Class A-3 Certificates
Bank of America Personal Trust
R. DeLaTorre, Prxy Unit # 38432
555 S. Flower Street, Level C
Los Angeles, CA 90071 5.88%
Chase Manhattan Bank
Orma Trim, Supervisor
4 New York Plaza, 13th Floor
New York, NY 10004 9.13%
Merrill Lynch, Pierce Fenner & Smith
V. O'Neill, Corp Park 287
4 Corporate Place
Piscataway, NJ 08855 52.94%
State Street Bank & Trust
Global Corp Action Dept JAB5W
PP Box 1631
Boston, MA 02105-1631 11.16%
Class A-4 Certificates
Chase Manhattan Bank
Orma Trim, Supervisor
4 New York Plaza, 13th Floor
New York, NY 10004 64.71%
Keybank National Association
Karen Bednarski
4900 Tiedeman Road
Brooklyn, OH 44144 5.88%
State Street Bank & Trust
Global Corp Action Dept JAB5W
PP Box 1631
Boston, MA 02105-1631 29.41%
Class A-5 Certificates
Bankers Trust Company
J. Lasher c/o BT Services, Tennessee
648 Grassmere Park Drive
Nashville, TN 37211 58.33%
Chase Manhattan Bank
Orma Trim, Supervisor
4 New York Plaza, 13th Floor
New York, NY 10004 41.67%
Class A-6 Certificates
Bank of New York
Diana Karenbauer
925 Patterson Plank Rd
Secaucus, NJ 07094 11.11%
Chase Manhattan Bank
Orma Trim, Supervisor
4 New York Plaza, 13th Floor
New York, NY 10004 7.41%
Citibank, NA
Marta Hoosain
PO Box 30576
Tampa, FL 33630-3576 51.85%
Fleet Bank of Massachusetts, NA
Ms. J. Rath, Fleet Services Corp
2nd Floor NYROTO2B
Rochester, NY 14638 7.41%
US Bank National Association
R. Williams, MPFP 1603 Proxy Unit
601 Second Avenue South
Minneapolis, MN 55402 22.22%
Class A-7 Certificates
Bankers Trust Company
J. Lasher c/o BT Services, Tennessee
648 Grassmere Park Drive
Nashville, TN 37211 8.83%
Boston Safe Deposit & Trust
C. Holloway, c/o Mellon Bank NA
Three Mellon Bank Center, Rm 153-3015
Pittsburgh, PA 15259 27.83%
Northern Trust Company
Jarvis A. McKee
801 S. Canal C-IN
Chicago, IL 60607 59.17%
Class A-8 Certificates
Bankers Trust Company
J. Lasher c/o BT Services, Tennessee
648 Grassmere Park Drive
Nashville, TN 37211 100.00%
Class A-9 Certificates
Bankers Trust Company
J. Lasher c/o BT Services, Tennessee
648 Grassmere Park Drive
Nashville, TN 37211 100.00%
Class A-10 Certificates
Bank of New York
Diana Karenbauer
925 Patterson Plank Rd
Secaucus, NJ 07094 100.00%
Class A-11 Certificates
Bank of New York
Diana Karenbauer
925 Patterson Plank Rd
Secaucus, NJ 07094 100.00%
Class A-12 Certificates
Bank of New York
Diana Karenbauer
925 Patterson Plank Rd
Secaucus, NJ 07094 100.00%
Class A-13 Certificates
Bank of New York
Diana Karenbauer
925 Patterson Plank Rd
Secaucus, NJ 07094 100.00%
Class A-14 Certificates
Citibank, NA
Marta Hoosain
PO Box 30576
Tampa, FL 33630-3576 100.00%
Class A-15 Certificates
Bank of New York
Diana Karenbauer
925 Patterson Plank Rd
Secaucus, NJ 07094 100.00%
Class A-16 Certificates
Bank of New York
Diana Karenbauer
925 Patterson Plank Rd
Secaucus, NJ 07094 25.00%
Boston Safe Deposit & Trust
C. Holloway, c/o Mellon Bank NA
Three Mellon Bank Center, Rm 153-3015
Pittsburgh, PA 15259 9.44%
Chase Manhattan Bank
Orma Trim, Supervisor
4 New York Plaza, 13th Floor
New York, NY 10004 19.44%
Norwest Bank Minnesota, NA
John Kemper
733 Marquette Avenue
Minneapolis, MN 55479-0056 27.50%
Prudential Securities, Inc
Issuer Services, c/o ADP Proxy
51 Mercedes Way
Edgewood, NY 11717 7.22%
Republic National Bank of NY Investment Co
Anthony Pla'
One Hanson Place, Lower Level
Brooklyn, NY 11243 11.40%
Class A-17 Certificates
Bank of New York
Diana Karenbauer
925 Patterson Plank Rd
Secaucus, NJ 07094 34.50%
Bankers Trust Company
J. Lasher, c/o BT Services Tennessee
648 Grassmere Park Drive
Nashville, TN 37211 9.17%
Bank One Trust Company, NA-State
Scott Hammond
30 West Spring Street
Columbus, OH 43266-0581 16.67%
Boston Safe Deposit & Trust Co
C. Holloway, c/o Mellon Bank NA
Three Mellon Bank Ctr, Rm 153-3015
Pittsburgh, PA 15259 10.00%
State Street Bank & Trust Co
J. Callahan, Global Action Dept JAB5W
PP Box 1631
Boston, MA 02105-1631 16.33%
Class A-18 Certificates
Bankers Trust Company
J. Lasher, c/o BT Services Tennessee
648 Grassmere Park Drive
Nashville, TN 37211 24.69%
Chase Manhattan Bank
Orma Trim, Supervisor
4 New York Plaza, 13th Floor
New York, NY 10004 60.49%
Marine/Treasury Investments
Linda Ng
140 Broadway - Level A
New York, NY 10015 9.88%
Prudential Securities, Inc
Issuer Services, c/o ADP Proxy
51 Mercedes Way
Edgewood, NY 11717 4.94%
Class A-19 Certificates
Bank of New York
Diana Karenbauer
925 Patterson Plank Rd
Secaucus, NJ 07094 29.63%
Chase Manhattan Bank
Orma Trim, Supervisor
4 New York Plaza, 13th Floor
New York, NY 10004 8.89%
Northern Trust Company
Jarvis A. McKee
801 S. Canal C-IN
Chicago, IL 60607 61.48%
Class F-IO Certificates
Bank of New York
Diana Karenbauer
925 Patterson Plank Rd
Secaucus, NJ 07094 15.36%
Bankers Trust Company
J. Lasher, c/o BT Services Tennessee
648 Grassmere Park Drive
Nashville, TN 37211 51.32%
State Street Bank & Trust Co
J. Callahan, Global Action Dept JAB5W
PP Box 1631
Boston, MA 02105-1631 32.73%
Class A-IO Certificates
Firstar Trust Company
Ferdinand Caldwell
777 E. Wisconsin Avenue
Milwaukee, WI 53202 100.00%
ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
None
PART IV
ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS
ON FORM 8-K
(a) The following documents are filed as part of this report:
1. Financial Statements: Not applicable.
2. Financial Statement Schedules: Not applicable.
3. Exhibits: As the Issuer was established as of June 1,
1998, the Master Servicer was obligated to prepare an Annual Statement to
Certificateholders as to Compliance for the year ended December 31, 1998,
and mail such statement to the Certificateholders on or before the last day
of March, 1999 and Independent Certified Public Accountants were required
to prepare an annual report pertaining to the compliance of the Master Servicer
with its servicing obligations pursuant to the Pooling and Servicing Agreement
on or before the last day of March, 1999. The Annual Statement to Certificate-
holders as to Compliance is included herewith as Exhibit 28.1 and the Annual
Independent Certified Public Accountants' Report is included herewith as
Exhibit 28.2. The Statement to Certificateholders on December 26, 1998, is
included herewith as Exhibit 28.3.
Exhibit No. Description
*3.1 Certificates of Incorporation of the
Companies
*3.2 By-laws of the Companies
*4 Pooling and Servicing Agreement
28.1 Annual Statement to Certificateholders
as to Compliance for the year ended
December 31, 1998.
28.2 Annual Independent Certified Public
Accountants' Report.
28.3 Report of Management on Compliance
with Minimum Servicing Standards.
28.4 Statement to Certificateholders on
December 26, 1998.
* Incorporated by reference to the Exhibit of the same designation filed with
the Issuer's Form S-3 registration statement declared effective October
30, 1997.
(b) Reports on Form 8-K.
Six reports on Form 8-K have been filed by the Issuer during the
period covered by this report.
Items Reported/Financial
Date of Reports on Form 8-K Statements Filed
July 27, 1998 Monthly Report for the June 1998 Monthly
Period relating to the ADVANTA Mortgage Loan
Asset- Backed Certificates 1998-2, Class A-1
Class A-2, Class A-3, Class A-4, Class A-5,
Class A-6, Class A-7, Class A-8, Class A-9,
Class A-10, Class A-11, Class A-12, Class A-13,
Class A-14, Class A-15, Class A-16, Class A-17
Class A-18, Class A-19, Class F-IO and Class A-IO
issued by the ADVANTA Mortgage Loan Trust 1998-2.
August 25, 1998 Monthly Report for the July 1998 Monthly
Period relating to the ADVANTA Mortgage Loan
Asset- Backed Certificates 1998-2, Class A-1
Class A-2, Class A-3, Class A-4, Class A-5,
Class A-6, Class A-7, Class A-8, Class A-9,
Class A-10, Class A-11, Class A-12, Class A-13,
Class A-14, Class A-15, Class A-16, Class A-17
Class A-18, Class A-19, Class F-IO and Class A-IO
issued by the ADVANTA Mortgage Loan Trust 1998-2.
September 25, 19Monthly Report for the August 1998 Monthly
Period relating to the ADVANTA Mortgage Loan
Asset- Backed Certificates 1998-2, Class A-1
Class A-2, Class A-3, Class A-4, Class A-5,
Class A-6, Class A-7, Class A-8, Class A-9,
Class A-10, Class A-11, Class A-12, Class A-13,
Class A-14, Class A-15, Class A-16, Class A-17
Class A-18, Class A-19, Class F-IO and Class A-IO
issued by the ADVANTA Mortgage Loan Trust 1998-2.
October 25, 1998Monthly Report for the September 1998 Monthly
Period relating to the ADVANTA Mortgage Loan
Asset- Backed Certificates 1998-2, Class A-1
Class A-2, Class A-3, Class A-4, Class A-5,
Class A-6, Class A-7, Class A-8, Class A-9,
Class A-10, Class A-11, Class A-12, Class A-13,
Class A-14, Class A-15, Class A-16, Class A-17
Class A-18, Class A-19, Class F-IO and Class A-IO
issued by the ADVANTA Mortgage Loan Trust 1998-2.
November 25, 199Monthly Report for the October 1998 Monthly
Period relating to the ADVANTA Mortgage Loan
Asset- Backed Certificates 1998-2, Class A-1
Class A-2, Class A-3, Class A-4, Class A-5,
Class A-6, Class A-7, Class A-8, Class A-9,
Class A-10, Class A-11, Class A-12, Class A-13,
Class A-14, Class A-15, Class A-16, Class A-17
Class A-18, Class A-19, Class F-IO and Class A-IO
issued by the ADVANTA Mortgage Loan Trust 1998-2.
December 28, 199Monthly Report for the November 1998 Monthly
Period relating to the ADVANTA Mortgage Loan
Asset- Backed Certificates 1998-2, Class A-1
Class A-2, Class A-3, Class A-4, Class A-5,
Class A-6, Class A-7, Class A-8, Class A-9,
Class A-10, Class A-11, Class A-12, Class A-13,
Class A-14, Class A-15, Class A-16, Class A-17
Class A-18, Class A-19, Class F-IO and Class A-IO
issued by the ADVANTA Mortgage Loan Trust 1998-2.
(c) See "Item 14(a) (3)-Exhibits".
(d) Not applicable.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
ADVANTA Mortgage Corp., USA,
as Master Servicer and on behalf of
ADVANTA Mortgage Loan Trust 1998-2
Registrant
BY; /s/ William P. Garland
William P. Garland
Senior Vice President
Loan Service Administration
March 31, 1999
INDEX TO EXHIBITS (Item 14(c))
Exhibit # Description
*3.1 Certificates of Incorporation of the Companies
*3.2 By-laws of the Companies.
*4 Pooling and Servicing Agreement
28.1 Annual Statement to Certificateholders as to
Compliance for the year ended December 31,
1998.
28.2 Annual Independent Certified Public Account-
ants' Report.
28.3 Report of Management on Compliance with
Minimum Servicing Standards.
28.4 Statement to Certificateholders on December 28,
1998.
* Incorporated by reference to the Exhibit of the same designation filed with
the Issuer's Form S-3 registration statement declared effective October 30,
1997.
<TABLE>
EXHIBIT 28.1
<S>
March 24, 1999
Bankers Trust Company(293)
Attention: Mark McNeill
3 Park Plaza -- 16th Floor
Irvine, CA 92714
RE: Annual Statement as to Compliance
Pursuant to that certain Loan Servicing Agreement ("Agreement") dated as of
June 1, 1998, relating to ADVANTA Mortgage Loan Trust 1998-2, I,
William P. Garland, hereby certify that (I) a review of the activities of the Servicer
during the preceding year and the performance under this Agreement has
been made under my supervision, and (II) to the best of my knowledge, based
on such review, the Servicer has fulfilled all its obligations under this Agreement
for such year.
Sincerely,
BY; /s/ William P. Garland
William P. Garland
Senior Vice President
Loan Service Administration
WPG/cg
cc: Mr. James L. Shreero
Mary T. Woehr, Esq.
Mr. Mark Casale
<S>
</TABLE>
<TABLE>
EXHIBIT 28.2
<S>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To ADVANTA Mortgage Corp. USA:
We have examined management's assertion, included in the accompanying Report
of Management on Compliance with Minimum Servicing Standards, that Advanta
Mortgage Corp. USA, an indirect wholly-owned subsidiary of Advanta Corp., complied
with the minimum servicing standards identified in the Mortgage Bankers Association of
America's Uniform Single Attestation Program for Mortgage Bankers (USAP) and that
Advanta Mortgage Corp. USA had in effect fidelity bond coverage in the amount of $15 million
and mortgage contingent liability protection coverage in the amount of $5 million per
occurrence as of and during the year ended December 31, 1998. As discussed
in the accompanying Report of Management on Compliance with Minimum Servicing
Standards, Management is responsible for Advanta Mortgage Corp. USA's compliance
with those minimum servicing standards and for maintaining fidelity bond and errors
and omissions policies. Our responsibility is to express an opinion on
management's assertion about Advanta Mortgage Corp USA's compliance
based on our examination.
Our examination was conducted in accordance with attestation standards established
by the American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about Advanta Mortgage Corp. USA's compliance
with the minimum servicing standards and performing such other procedures as we
considered necessary in the circumstances. We believe that our examination provides
a reasonable basis for our opinion. Our examination does not provide a legal
determination on Advanta Mortgage Corp. USA's compliance with the minimum
servicing standards.
In our opinion, management's assertion that Advanta Mortgage Corp. USA complied with the
aforementioned minimum servicing standards and that Advanta Mortgage Corp. USA had in
effect fidelity bond coverage in the amount of $15 million and mortgage contingent liability
protection coverage in the amount of $5 million per occurrence as of and during the year
ended December 31, 1998, is fairly stated, in all material respects.
BY; /s/ Arthur Andersen LLP
Philadelphia, PA
January 26, 1999
<S>
</TABLE>
<TABLE>
EXHIBIT 28.3
<S>
REPORT OF MANAGEMENT ON COMPLIANCE WITH
MINIMUM SERVICING STANDARDS
As of and during the year ended December 31, 1998, Advanta Mortgage Corp. USA has
complied in all material respects with the minimum servicing standards as set forth in the
Mortgage Bankers Association of America's Uniform Single Attestation Program for Mortgage
Bankers. As of and during the same period, Advanta Mortgage Corp. USA had in effect fidelity
bond coverage in the amount of $15 million and mortgage contingent liability protection
coverage in the amount of $5 million per occurrence.
BY; /s/ William P. Garland BY; /s/ James L. Shreero
William P. Garland James L. Shreero
Senior Vice President Senior Vice President
Loan Servicing and Chief Financial
Officer
Finance and Accounting
<S>
</TABLE>
<TABLE>
EXHIBIT 28.4
ADVANTA Mortgage Loan Trust 1998-2
Statement to Certificateholders
<CAPTION>
Original Prior
Face Principal
Class Value Balance Interest Principal Total
<S> <C> <C> <C> <C> <C>
A-1 73,000,000 60,138,591 322,7 3,265,055 3,587,799.16
A-2 41,000,000 41,000,000 209,1 209,100.00
A-3 34,000,000 34,000,000 175,3 175,383.33
A-4 17,000,000 17,000,000 89,3 89,391.67
A-5 24,000,000 24,000,000 126,6 126,600.00
A-6 27,000,000 27,000,000 149,1 149,175.00
A-7 15,000,000 15,000,000 76,8 76,875.00
A-8 9,000,00 9,000,00 47,7 47,700.00
A-9 88,000,000 70,593,869 378,8 5,443,563 5,822,417.51
A-10 61,000,000 61,000,000 311,1 311,100.00
A-11 38,000,000 38,000,000 196,6 196,650.00
A-12 28,000,000 28,000,000 147,7 147,700.00
A-13 28,000,000 28,000,000 148,4 148,400.00
A-14 36,000,000 36,000,000 199,5 199,500.00
A-15 31,000,000 31,000,000 161,4 161,458.33
A-16 180,000,000. 163,369,097. 779,0 4,764,097 5,543,174.41
A-17 60,000,000 60,000,000 302,5 302,500.00
A-18 101,250,000. 91,622,242 436,9 3,910,156 4,347,085.35
A-19 33,750,000 33,750,000 170,1 170,156.25
F-IO* 55,000,000 55,000,000 229,1 229,166.67
A-IO* 93,750,000 93,750,000 390,6 390,625.00
RS -
Totals 925,000,000. 868,473,801. 5,049,08 17,382,873. 22,431,957.68
</TABLE>
<TABLE>
<CAPTION>
Current Pass-Through
Realized Deferred Principal Rates
Class Losses Interest Balance Current Next
<S> <C> <C> <C> <C> <C>
A-1 56,873,536 6.440000% 6.440000%
A-2 41,000,000 6.120000% 6.120000%
A-3 34,000,000 6.190000% 6.190000%
A-4 17,000,000 6.310000% 6.310000%
A-5 24,000,000 6.330000% 6.330000%
A-6 27,000,000 6.630000% 6.630000%
A-7 15,000,000 6.150000% 6.150000%
A-8 9,000,00 6.360000% 6.360000%
A-9 65,150,305 6.440000% 6.440000%
A-IO 61,000,000 6.120000% 6.120000%
A-11 38,000,000 6.210000% 6.210000%
A-12 28,000,000 6.330000% 6.330000%
A-13 28,000,000 6.360000% 6.360000%
A-14 36,000,000 6.650000% 6.650000%
A-15 31,000,000 6.250000% 6.250000%
A-16 158,604,999. 5.202340% 5.784380%
A-17 60,000,000 6.050000% 6.050000%
A-18 87,712,086 5.202340% 5.784380%
A-19 33,750,000 6.050000% 6.050000%
F-IO* 55,000,000 5.000000% 5.000000%
A-IO* 93,750,000 5.000000% 5.000000%
RS 0.000000% 0.000000%
Totals 851,090,928.04
</TABLE>
<TABLE>
<CAPTION>
Prior Current
Principal Principal
Class CUSIP Balance Interest Principal Total Balance
<S> <C> <C> <C> <C> <C> <C>
A-1 00755WFD3 823.816321 4.421148 44.726786 49.147934 779.089535
A-2 00755WFE1 1,000.000000 5.100000 0.000000 5.100000 1,000.000000
A-3 00755WFF8 1,000.000000 5.158333 0.000000 5.158333 1,000.000000
A-4 00755WFG6 1,000.000000 5.258334 0.000000 5.258334 1,000.000000
A-5 00755WFH4 1,000.000000 5.275000 0.000000 5.275000 1,000.000000
A-6 00755WFJ0 1,000.000000 5.525000 0.000000 5.525000 1,000.000000
A-7 00755WFK7 1,000.000000 5.125000 0.000000 5.125000 1,000.000000
A-8 00755WFL5 1,000.000000 5.300000 0.000000 5.300000 1,000.000000
A-9 00755WFM3 802.203063 4.305156 61.858679 66.163835 740.344384
A-IO 00755WFN1 1,000.000000 5.100000 0.000000 5.100000 1,000.000000
A-11 00755WFP6 1,000.000000 5.175000 0.000000 5.175000 1,000.000000
A-12 00755WFQ4 1,000.000000 5.275000 0.000000 5.275000 1,000.000000
A-13 00755WFR2 1,000.000000 5.300000 0.000000 5.300000 1,000.000000
A-14 00755WFS0 1,000.000000 5.541667 0.000000 5.541667 1,000.000000
A-15 00755WFT8 1,000.000000 5.208333 0.000000 5.208333 1,000.000000
A-16 00755WFV3 907.606099 4.328203 26.467211 30.795414 881.138888
A-17 00755WFW1 1,000.000000 5.041667 0.000000 5.041667 1,000.000000
A-18 00755WFX9 904.911037 4.315350 38.618826 42.934176 866.292211
A-19 00755WFY7 1,000.000000 5.041667 0.000000 5.041667 1,000.000000
F-IO* 00755WFU5 1,000.000000 4.166667 0.000000 4.166667 1,000.000000
A-IO* 00755WFZ4 1,000.000000 4.166667 0.000000 4.166667 1,000.000000
RS AM9802122 0.000000 0.000000 0.000000 0.000000 0.000000
</TABLE>
<TABLE>
Delinquent Loan Information:
<CAPTION>
90+ Days Loans Loans
30-59 60-89 excldg f/c,REO in in
Days Days & Bkrptcy REO Foreclosure
<S> <C> <C> <C> <C> <C>
Group IA Principal Balanc 6,154,68 2,139,65 935,64 55,2 3,826,470
% of Pool Balanc 2.70820% 0.94150% 0.41171% 0.02430% 1.68373%
Number of Loans 106 34 19 1 77
% of Loans 3.08229% 0.98866% 0.55249% 0.02908% 2.23902%
Group IIA Principal Balanc 8,001,05 2,199,33 603,83 73,7 6,089,279
% of Pool Balanc 3.61128% 0.99267% 0.27254% 0.03328% 2.74840%
Number of Loans 100 23 6 1 77
% of Loans 4.22297% 0.97128% 0.25338% 0.04223% 3.25169%
Group IB Principal Balanc 7,939,19 2,216,75 1,604,491 168,3 2,346,658
% of Pool Balanc 2.73082% 0.76249% 0.55189% 0.05792% 0.80717%
Number of Loans 133 43 29 2 36
% of Loans 3.01314% 0.97417% 0.65700% 0.04531% 0.81559%
Group IIB Principal Balanc 5,312,86 960,1 660,74 1,183,114
% of Pool Balanc 2.33778% 0.42247% 0.29074% 0.00000% 0.52060%
Number of Loans 64 13 7 0 16
% of Loans 4.29530% 0.87248% 0.46980% 0.00000% 1.07383%
Loans in Bankrup Group IA 1,483,060.11
Group IIA 1,225,194.31
Group IB 1,128,592.93
Group IIB 445,127.76
4,281,975.11
Combined REO BOOK VALUE 319,293.00
</TABLE>
<TABLE>
General Mortgage Loan Information:
<CAPTION>
Group IA Group IIA Group IB Group IIB Total
<S> <C> <C> <C> <C> <C>
Beginning Aggregate Mortgage L 229,972,043. 225,827,346. 295,587,021. 126,588,521. 877,974,932.
Principal Reduction 2,711,15 4,270,02 4,861,420 3,660,99 15,503,601.
Ending Aggregate Mortgage Loan 227,260,888. 221,557,318. 290,725,600. 122,927,524. 862,471,331.
Beginning Aggregate Mortgage L 3476 2411 4484 1529 11900
Ending Aggregate Mortgage Loan 3439 2368 4414 1490 11711
Current Weighted Average Coupo 10.253738% 10.355393% 9.750179% 10.072898% 10.084278%
Next Weighted Average Coupon R 10.251051% 10.351501% 9.741842% 10.064097% 10.078562%
</TABLE>
<TABLE>
Mortgage Loan Principal Reduction Information:
<CAPTION>
Group IA Group IIA Group IB Group IIB Total
<S> <C> <C> <C> <C> <C>
Scheduled Principal 286,5 146,0 401,23 60,0 893,95
Curtailments
Prepayments 2,424,58 4,078,37 4,337,687 3,600,91 14,441,556.
Repurchases/Substitutions 122,50 122,50
Liquidation Proceeds 45,5 45,5
Other Principal
Less: Realized Losses (5, (5,6
Less: Delinquent Principal not
Total Principal Reduction 2,711,15 4,275,67 4,861,420 3,660,99 15,509,249.
</TABLE>
<TABLE>
Servicer Information:
<CAPTION>
Group IA Group IIA Group IB Group IIB Total
<S> <C> <C> <C> <C> <C>
Accrued Servicing Fee for the 95,8 94,0 123,16 52,7 365,82
Less: Amounts to Cover Interes 1, 2,3
Less: Delinquent Service Fees 23,1 20,5 23,9 11,4 79,1
Collected Servicing Fees for C 71,3 72,9 99,2 40,8 284,33
Advanced Principal 20,9 7, 35,1 6, 69,4
Advanced Interest 483,4 423,7 482,62 225,9 1,615,786
</TABLE>
<TABLE>
<CAPTION>
Other Subordination Interest
Prepayment Unscheduled Increase Carry Applied Realized Loss
Principal Principal Principal Forward Realized Loss Amortization
Class Distributed Distributed Distributed Amount Amount Amount
<S> <C> <C> <C> <C> <C> <C>
A-1 2,712,58 2,912,06
A-2
A-3
A-4
A-5
A-6
A-7
A-8
A-9 4,522,47 4,855,05
A-10
A-11
A-12
A-13
A-14
A-15
A-16 3,957,97 4,249,04
A-17
A-18 3,248,52 3,487,42
A-19
Total 14,441,556 15,503,601
</TABLE>
<TABLE>
<CAPTION>
Unpaid
Realized Loss
Class Amount
<S> <C>
A-1
A-2
A-3
A-4
A-5
A-6
A-7
A-8
A-9
A-10
A-11
A-12
A-13
A-14
A-15
A-16
A-17
A-18
A-19
Total
</TABLE>
<TABLE>
<CAPTION>
Prior
Has a Senior Overcolla- Supplemental Subordination Subordination
Trigger Event Enhancement Teralization Interest Increase Increase
Occurred Percentage Amount Amount Amount Distributed
<S> <S> <C> <C> <C> <C> <C>
Group IA NO N/A 2,833,45 166,5 166,54
Group IIA NO N/A 2,458,24 494,0 494,06
Group IB NO N/A 2,993,15 969,4 969,49
Group IIB NO N/A 1,216,27 249,1 249,15
Total 9,501,13 1,879,27 1,879,272
</TABLE>
<TABLE>
<CAPTION>
Current Target
Overcolla- Overcolla-
teralization teralization
Amount Amount
<S> <C> <C>
Group IA 3,000,00 3,000,000
Group IIA 2,952,31 3,000,000
Group IB 3,962,64 10,075,000.
Group IIB 1,465,43 4,387,500
Total 11,380,403 20,462,500.
</TABLE>
<TABLE>
TOTAL AVAILABLE FUNDS:
<CAPTION>
<S> <S> <C> <C> <C>
Current Interest Collected: 5,683,185.31
Principal Collected: 15,266,025.32
Insurance Proceeds Received: -
Net Liquidation Proceeds: 39,936.60
Delinquency Advances on Mortgage Interest: 1,615,786.52
Delinquency Advances on Mortgage Principal 69,491.19
Substitution Amounts: 122,500.00
Trust Termination Proceeds: -
Investment Earnings on Certificate Account: 16,893.95
Sum of the Above Amounts: 22,813,818.89
LESS:
Servicing Fees (including PPIS): 286,675.13
Dealer Reserve: -
Trustee Fees: 5,121.52
Insurance Premiums: 90,064.56
Reimbursement of Delinquency Advances: -
Reimbursements of Servicing Advances: -
Total Reductions to Available Funds Amount: 381,861.21
Total Available Funds: 22,431,957.
</TABLE>
