CIT HOME EQUITY LOAN TRUST 1998-1
8-K/A, 1998-11-02
ASSET-BACKED SECURITIES
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                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


                                   F O R M 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):  October 15, 1998
                                           --------------------------------
    

                        CIT Home Equity Loan Trust 1998-1
    ------------------------------------------------------------------------
              Exact name of registrant as specified in its charter)

                                    New York
    ------------------------------------------------------------------------
                 (State or other jurisdiction of incorporation)

            001-14393                           22-3599147
    ------------------------------------------------------------------------
      (Commission File Number)           (IRS Employer Identification No.)

                    c/o The CIT Group/Consumer Finance, Inc.
                   650 CIT Drive, Livingston, New Jersey 07039
    ------------------------------------------------------------------------
              (Address of principal executive offices and zip code)


Registrant's telephone number, including area code:  (973) 740-5000
                                              ------------------------------

                                       N/A
    ------------------------------------------------------------------------
         (Former name or former address, if changed since last report.)


<PAGE>


Item 5.     Other Events.
            ------------

            On  October  15,  1998,  The Bank of New  York (a New  York  Banking
Corporation),  as Trustee,  made the monthly  distribution to the holders of CIT
Home Equity  Loan Trust  1998-1,  Class A-1 5.88% Home Equity Loan Asset  Backed
Certificates,  Class A-2 6.01% Home Equity Loan Asset Backed Certificates, Class
A-3 6.08% Home  Equity  Loan  Asset  Backed  Certificates,  Class A-4 6.20% Home
Equity Loan Asset  Backed  Certificates,  Class A-5 6.36% Home Equity Loan Asset
Backed Certificates, Class A-6 6.70% Home Equity Loan Asset Backed Certificates,
Class A-7 6.30% Home  Equity  Loan  Asset  Backed  Certificates,  Class A-8 Home
Equity Loan Asset  Backed  Certificates,  Class M-1 6.44% Home Equity Loan Asset
Backed Certificates, Class M-2 6.72% Home Equity Loan Asset Backed Certificates,
and Class B-1 7.37% Home Equity Loan Asset Backed Certificates.


Item 7.     Financial Statements and Exhibits.
            ---------------------------------   
            (c)   Exhibits.

                  The  following  are  filed   herewith.   The  exhibit  numbers
correspond with Item 601(b) of Regulation S-K.

      Exhibit No.       Description                         Page
      ----------        -----------                         ----

      28                Monthly Report delivered by            3
                        the Trustee to Certificateholders
                        in connection with distributions
                        on October 15, 1998

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 hereunto duly authorized.

                                    THE CIT GROUP/CONSUMER
                                    FINANCE, INC., as master servicer
     


                                    By: /s/ Frank Garcia
                                        --------------------------
                                    Name:   Frank Garcia
                                    Title:  Vice President
Dated:  October 28, 1998

<PAGE>

                      THE CIT GROUP/CONSUMER FINANCE, INC.

                        CERTIFICATE OF SERVICING OFFICER



The undersigned  certifies that he is a Vice President of The CIT Group/Consumer
Finance, Inc., a corporation organized under the laws of Delaware ("CITCF"), and
that as such he is duly  authorized to execute and deliver this  certificate  on
behalf of CITCF pursuant to Section 6.02 of the Pooling and Servicing Agreement,
dated  as of July  1,  1998  (the  "Agreement"),  among  CITCF,  The  CIT  Group
Securitization  Corporation  III  and The  Bank Of New  York,  as  Trustee  (all
capitalized terms used herein without definition having the respective  meanings
specified in the Agreement), and further certifies that:

1.   The Monthly  Report for the period from  September 1, 1998 to September 30,
     1998  attached to this  certificate  is complete and accurate in accordance
     with the requirements of Sections 6.01 and 6.02 of the Agreement; and

2.   As of the date hereof, no Event of Termination or event that with notice or
     lapse of time or both would become an Event of Termination has
occurred.


IN WITNESS  WHEREOF,  he has  affixed  hereunto  his  signature  this 9th day of
October 1998.


                                   THE CIT GROUP/CONSUMER FINANCE, INC.


                                   BY /s/ Frank J. Madeira
                                   --------------------------------
                                   Frank J. Madeira
                                   Vice President


<PAGE>


                                INDEX TO EXHIBITS
                                -----------------

Exhibit No.                   Description
- - ----------                    -----------
 
20.1                          Monthly Reports with respect to
                              the October 15, 1998 distribution.




<PAGE>

<TABLE>
<CAPTION>

                        CIT Home Equity Loan Trust 1998-1
      Home Equity Loan Asset Backed Certificates, Series 1998-1
                            Master Servicer's Certificate

                                                                                                 Due Period         9/30/98
                                                                                                 Determination Date 10/9/98
                                                                                                 Distribution Date  10/15/98

<S>                                                                                       <C>               <C>         <C>

I     Available in Certificate Account

      Principal collected on Mortgage Loans                                               5,096,003.25
      All Liquidation Proceeds with respect to Principal                                          0.00
      Recoveries on previously Liquidated Mortgages with respect to Principal                     0.00
      Principal portion of Purchase Price on Repurchased Mortgage Loans                           0.00
      Substitution Adjustment with respect to Principal                                           0.00

                              Principal Distribution Amount                               5,096,003.25

      Interest collected on Mortgage Loans                                                2,648,695.67
      Interest portion of Purchase Price on Repurchased Mortgage Loans                            0.00
      Recoveries on previously Liquidated Mortgages with respect to Interest                      0.00
      Substitution Adjustment with respect to Interest                                            0.00
      Master Servicer Monthly Advances (net of Compensating Interest)                       390,289.46
      Reimbursement of previous months Servicer Advances                                   -185,651.58
      Compensating Interest                                                                   2,672.90
      Investment Earnings on Certificate Account                                                  0.00

                              Interest Remittance Amount                                  2,856,006.45

      Amount not Required to be deposited                                                   (25,650.78)

                              Total available in the Certificate Account                                               7,926,358.92


II    Distributions                                                                        Per $ 1,000                    Amount
                                                                                      -------------------         -----------------

 1  Aggregate Class A-1 Distribution                                                       75.36009572                 4,596,965.84

 2  Aggregate Class A-2 Distribution                                                        5.00833333                   190,316.67
      
 3  Aggregate Class A-3 Distribution                                                        5.06666667                   228,000.00

 4  Aggregate Class A-4 Distribution                                                        5.16666667                   129,166.67

 5  Aggregate Class A-5 Distribution                                                        5.30000000                    58,300.00

 6  Aggregate Class A-6 Distribution                                                        5.58333333                    60,702.00

 7  Aggregate Class A-7 Distribution                                                        5.25000000                    99,750.00

 8  Aggregate Class A-8 Distribution                                                       19.45618805                   998,433.20

 9  Aggregate Class IOX1 Distribution                                                                                    304,521.79

10  Aggregate Class IOX2 Distribution                                                                                    148,222.17

11  Aggregate Class M-1 Distribution                                                        5.36666667                   123,680.20

12  Aggregate Class M-2 Distribution                                                        5.60000000                   109,939.20

13  Aggregate Class B-1 Distribution                                                        6.14166667                    73,392.92

14  Aggregate Class B-2 Distribution                                                        6.66666667                    68,280.00

15  Aggregate Class B-3 Distribution                                                        6.66666667                    45,526.67
     
16  Aggregate Class B-4 Distribution                                                        6.66666667                    56,906.67

17  Aggregate Master Servicer Distribution                                                                               194,726.53

18  Aggregate Class R Distribution                                                                                       439,528.40


                                                   Total Distributions =                                               7,926,358.92

III   Certificate Class Balances                                               Factor %                               Amount
                                                                          -------------------                   ------------------

      Opening Class A Certificate Balances as reported in prior
      Monthly Master Servicer Report:
                        (a)  Class A-1                                       87.72431551%                             53,511,832.46
                        (b)  Class A-2                                      100.00000000%                             38,000,000.00
                        (c)  Class A-3                                      100.00000000%                             45,000,000.00
                        (d)  Class A-4                                      100.00000000%                             25,000,000.00
                        (e)  Class A-5                                      100.00000000%                             11,000,000.00
                        (f)  Class A-6                                      100.00000000%                             10,872,000.00
                        (g)  Class A-7                                      100.00000000%                             19,000,000.00
                        (h)  Class A-8                                       96.46207422%                             49,501,442.63
                                                                                                                 ------------------
                                                                                                                     251,885,275.09
      Opening Class M Certificate Balances as reported in prior
      Monthly Master Servicer Report
                        (a)  Class M-1                                      100.00000000%                             23,046,000.00
                        (b)  Class M.2                                      100.00000000%                             19,632,000.00
                                                                                                                 ------------------
                                                                                                                      42,678,000.00

      Opening Class B Certificate Balances as reported in prior
      Monthly Master Servicer Report:
                        (a)  Class B-1                                      100.00000000%                             11,950,000.00
                        (b)  Class B-2                                      100.00000000%                             10,242,000.00
                        (c)  Class B-3                                      100.00000000%                              6,829,000.00
                        (d)  Class B-4                                      100.00000000%                              8,536,000.00
                                                                                                                 ------------------
                                                                                                                      37,557,000.00

IV    Principal Distribution Amount

1.    Principal Remittance Amount                                                                      No.                 Amount
                                                                                                      -----      ------------------
                        (a)  Stated principal collected                                                                  541,925.02
                        (b)  Principal Prepayments                                                      88             4,554,078.23
                        (c)  Liquidation Proceeds                                                                              0.00
                        (d)  Repurchased Mortgage Loans                                                  0                     0.00
                        (e)  Substitution Adjustment related to Principal                                                      0.00
                                                                                                                 ------------------
                        (f)  Recoveries on previously Liquidated Mortgages with respect to Principal                              0
                                            Total Principal Distribution                                               5,096,003.25

2(a). Class A Principal Distribution Amount
                                                                            Per $ 1,000
                                                                         -------------------
                        1.  Class A-1                                       71.06160426                                4,334,757.86
                        2.  Class A-2                                        0.00000000                                        0.00
                        3.  Class A-3                                        0.00000000                                        0.00
                        4.  Class A-4                                        0.00000000                                        0.00
                        5.  Class A-5                                        0.00000000                                        0.00
                        6.  Class A-6                                        0.00000000                                        0.00
                        7.  Class A-7
                              (a)  Class A-7 Lockout Percentage                                       0.00%
                              (b)  Class A-7 Lockout Distribution Amount     0.00000000                                        0.00
                       8.  Class A-8                                        14.83417561                                  761,245.39

2(b). Class M Principal Distribution Amount
                        1.  Class M-1                                        0.00000000                                        0.00
                        2.  Class M-2                                        0.00000000                                        0.00

2(c). Class B Principal Distribution Amount
                        1.  Class B-1                                        0.00000000                                        0.00
                        2.  Class B-2                                        0.00000000                                        0.00
                        3.  Class B-3                                        0.00000000                                        0.00
                        4.  Class B-4                                        0.00000000                                        0.00

2(d)  Class M Applied Realized Loss
                        1.  Class M-1                                        0.00000000                                        0.00
                        2.  Class M-2                                        0.00000000                                        0.00

2(e)  Class B Applied Realized Loss
                        1.  Class B-1                                        0.00000000                                        0.00
                        2.  Class B-2                                        0.00000000                                        0.00
                        3.  Class B-3                                        0.00000000                                        0.00
                        4.  Class B-4                                        0.00000000                                        0.00

                                                                              Factor %                                Amount
                                                                         -------------------                    ------------------
      Ending Class A Certificate Balances after distributions of
      principal in this Monthly Master Servicer Report
                        (a)  Class A-1                                      80.61815508%                              49,177,074.60
                        (b)  Class A-2                                     100.00000000%                              38,000,000.00
                        (c)  Class A-3                                     100.00000000%                              45,000,000.00
                        (d)  Class A-4                                     100.00000000%                              25,000,000.00
                        (e)  Class A-5                                     100.00000000%                              11,000,000.00
                        (f)  Class A-6                                     100.00000000%                              10,872,000.00
                        (g)  Class A-7                                     100.00000000%                              19,000,000.00
                        (h)  Class A-8                                      94.97865666%                              48,740,197.24
                                                                                                                 ------------------
                                                                                                                     246,789,271.84
<PAGE>

      Ending Class M Certificate Balances after distributions of
      principal in this Monthly Master Servicer Report:
                        (a)  Class M-1                                     100.00000000%                              23,046,000.00
                        (b)  Class M-2                                     100.00000000%                              19,632,000.00
                                                                                                                 ------------------
                                                                                                                      42,678,000.00
               
      Ending Class B Certificate Balances after distributions of
      principal in this Monthly Master Servicer Report:
                        (a)  Class B-1                                     100.00000000%                              11,950,000.00
                        (b)  Class B-2                                     100.00000000%                              10,242,000.00
                        (b)  Class B-3                                     100.00000000%                               6,829,000.00
                        (b)  Class B-4                                     100.00000000%                               8,536,000.00
                                                                                                                 ------------------
                                                                                                                      37,557,000.00

V     Interest Distribution Amount

      Fixed Rate Certificates

                        (b)  Fixed Rate Certificates applicable Pass-Through Rate
                               1.     Class A-1                                5.88000%
                               2.     Class A-2                                6.01000%
                               3.     Class A-3                                6.08000%
                               4.     Class A-4                                6.20000%
                               5.     Class A-5                                6.36000%
                               6.     Class A-6                                6.70000%
                               7.     Class A-7                                6.30000%
                               8.     Class M-1                                6.44000%
                               9.     Class M-2                                6.72000%
                              10.     Class B-1                                7.37000%
                              11.     Class B-2                                8.00000%
                              12.     Class B-3                                8.00000%
                              12.     Class B-4                                8.00000%


      Variable Rate Certificates

                  (b)  LIBOR Rate                                             5.58984%

                  (c)  Maximum Variable Rate                                 18.00000%

                  (d)  Variable Rate (Class A-8) applicable Pass Through      5.74984%

      Interest Only Certificates


The Lesser of :
(a) Weighted Average Net Mortgage Rate of   9.343
(b) 9.358%
                                                                                                     Strip Rate     Component Rate
                IO-X1  Class A-1                                                                       2.170%               1.293%
                IO-X1  Class A-2                                                                       2.040%               1.293%
                IO-X1  Class A-3                                                                       1.970%               1.293%
                IO-X1  Class A-4                                                                       1.850%               1.293%
                IO-X1  Class A-5                                                                       1.690%               1.293%
                IO-X1  Class A-6                                                                       1.350%               1.293%
                IO-X1  Class A-7                                                                       1.750%               1.293%
                IO-X1  Class M-1                                                                       1.610%               1.293%
                IO-X1  Class M-2                                                                       1.330%               1.293%
                IO-X1  Class B-1                                                                       0.680%               1.293%
                IO-X1  Class B-2                                                                       0.050%               1.293%
                IO-X1  Class B-3                                                                       0.050%               1.293%
                IO-X1  Class B-4                                                                       0.050%               1.293%

                IO-X2  Class A-8                                                                       0.000%               3.593%


      INTEREST REMITTANCE AMOUNT
         1.  Interest collected on Mortgage Loans                                                 204,637.88
         3.  Compensating Interest on Mortgage Loans                                                2,672.90
         4.  Substitution Adjustment interest                                                          0.00
         5.  Purchase Price interest on repurchased accounts                                           0.00
         6.  Liquidation Proceeds interest portion                                                     0.00
         7.  Recoveries on previously Liquidated Mortgages with respect to Interest                       0
                     TOTAL INTEREST REMITTANCE AMOUNT                                                                  2,856,006.45



      Current Interest Requirement

                 1.     Class A-1 @ applicable Pass-Through Rate                                                         262,207.98
                 2.     Class A-2 @ applicable Pass-Through Rate                                                         190,316.67
                 3.     Class A-3 @ applicable Pass-Through Rate                                                         228,000.00
                 4.     Class A-4 @ applicable Pass-Through Rate                                                         129,166.67
                 5.     Class A-5 @ applicable Pass-Through Rate                                                          58,300.00
                 6.     Class A-6 @ applicable Pass-Through Rate                                                          60,702.00
                 7.     Class A-7 @ applicable Pass-Through Rate                                                          99,750.00
                 8.     Class A-8 @ applicable Pass-Through Rate                                                         237,187.81
                 9.     Class A-8 Extra Interest  @ applicable Pass-Through Rate                                               0.00
                10.     Class IOX1 @ applicable Strip Rate                                                               304,521.79
                11.     Class IOX2  @ applicable Strip Rate                                                              148,222.17
                12.     Class M-1 @ applicable Pass-Through Rate                                                         123,680.20
                13.     Class M-2 @ applicable Pass-Through Rate                                                         109,939.20
                14.     Class B-1 @ applicable Pass-Through Rate                                                          73,392.92
                15.     Class B-2  @ applicable Pass-Through Rate                                                         68,280.00
                16.     Class B-3 @ applicable Pass-Through Rate                                                          45,526.67
                17.     Class B-4 @ applicable Pass-Through Rate                                                          56,906.67
 

      Interest Carry Forward Amount

                                            1.     Class A-1                              0.00
                                            2.     Class A-2                              0.00
                                            3.     Class A-3                              0.00
                                            4.     Class A-4                              0.00
                                            5.     Class A-5                              0.00
                                            6.     Class A-6                              0.00
                                            7.     Class A-7                              0.00
                                            8.     Class A-8                              0.00
                                            9.     Class IOX1                             0.00
                                           10.     Class IOX2                             0.00
                                           11.     Class M-1                              0.00
                                           12.     Class M-2                              0.00
                                           13.     Class B-1                              0.00
                                           14.     Class B-2                              0.00
                                           15.     Class B-3                              0.00
                                           16.     Class B-4                              0.00
                                           15.     Class B-4                              0.00


      Certificates Interest Distribution Amount
                                                                                    Per $ 1,000
                                                                               -------------------
                                            1.     Class A-1                        4.29849146                           262,207.98
                                            2.     Class A-2                        5.00833333                           190,316.67
                                            3.     Class A-3                        5.06666667                           228,000.00
                                            4.     Class A-4                        5.16666667                           129,166.67
                                            5.     Class A-5                        5.30000000                            58,300.00
                                            6.     Class A-6                        5.58333333                            60,702.00
                                            7.     Class A-7                        5.25000000                            99,750.00
                                            8.     Class A-8                        4.62201244                           237,187.81
                                            9.     Class IOX1                                                            304,521.79
                                           10.     Class IOX2                                                            148,222.17
                                           11.     Class M-1                        5.36666667                           123,680.20
                                           12.     Class M-2                        5.60000000                           109,939.20
                                           13.     Class B-1                        6.14166667                            73,392.92
                                           14.     Class B-2                        6.66666667                            68,280.00
                                           15.     Class B-3                        6.66666667                            45,526.67
                                           16.     Class B-4                        6.66666667                            56,906.67
                                                                                                                 ------------------
                                                                                                                       2,196,100.74
VI    Trigger Information

                    1.  (a)  Delinquency Trigger percentage                                            1.45%
                        (b)  Delinquency Trigger in effect ?                                             NO

                    2.  (a)  Specified Senior Enhancement Percentage                                  47.00%
                        (b)  Senior Enhancement Percentage                                            24.53%

VII   Pool Information                                                                                  No.               Amount
                                                                                                      -----       ------------------

                        (a)  Closing Mortgage Loan Principal Balance:
                                1.  Fixed Rate                                                        4,722          278,284,512.12
                                2.  Adjustable Rate                                                     552           48,740,270.94

                                        Total Closing Mortgage Loan Principal Balance:                5,274          327,024,783.06

                        (b)  Weighted Average Mortgage Rate:
                                1.  Fixed Rate                                                                               9.877%
                                2.  Adjustable Rate                                                                          9.638%

                                        Total  Weighted Average Mortgage Rate                                                9.841%

                        (c)  Weighted Average Net Mortgage Rate:                                                             9.341%

                        (d)  Weighted Average Remaining Maturity: 
                                1.  Fixed Rate                                                                               268.86
                                2.  Adjustable Rate                                                                          348.77

                        (e)  Weighted Average Original Maturity:
                                1.  Fixed Rate                                                                               275.12
                                2.  Adjustable Rate                                                                          355.13


VIII  Delinquency Information                                                                      No.         %         Amount
                                                                                                 ----------------------------------

      A.  Fixed Rate Mortgage Loans:
                        (a)  Delinquent Contracts:
                                            1.    31 - 59 Day Accounts                            150        3.07%     8,540,754.70
                                            2.    60 - 89 Day Accounts                             45        0.80%     2,222,046.37
                                            3.    90 - 119 Day Accounts                            23        0.42%     1,165,625.55
                                            4.    120 +  Day Accounts                              10        0.16%       457,276.29

                        (b)  Mortgage Loans - In Foreclosure                                       2         0.04%       110,809.92
                        (c)  REO Property Accounts                                                 0         0.00%             0.00

      B.  Adjustable Rate Mortgage Loans:
                        (a)  Delinquent Contracts:
                                            1.    31 - 59 Day Accounts                             23        3.41%     1,661,585.13
                                            2.    60 - 89 Day Accounts                             10        1.38%       671,710.63
                                            3.    90 - 119 Day Accounts                            4         0.44%       212,236.93
                                            4.    120 +  Day Accounts                              2         0.18%        88,657.13

                        (b)  Mortgage Loans - In Foreclosure                                       1         0.08%        36,711.14
                        (c)  REO Property Accounts                                                 0         0.00%             0.00

      C.  Total For All Mortgage Loans
                        (a)  Delinquent Contracts:
                                            1.    31 - 59 Day Accounts                            173        3.12%    10,202,339.83
                                            2.    60 - 89 Day Accounts                             55        0.88%     2,893,757.00
                                            3.    90 - 119 Day Accounts                            27        0.42%     1,377,862.48
                                            4.    120 +  Day Accounts                              12        0.17%       545,933.42

                        (b)  Mortgage Loans - In Foreclosure                                        3        0.05%       147,521.06
                        (c)  REO Property Accounts                                                  0        0.00%             0.00


IX    Realized Losses                                                                               No.                  Amount
                                                                                                   -----         ------------------

            1.   (a)  Gross Realized Losses during the period                                        0                         0.00

                  (b)  Realized Losses during the period
                                1.  Fixed Rate                                                                                    0
                                2.  Adjustable Rate                                                                            0.00
                                                                                                                                  0
                                               Total

                  (c)  Cumulative Gross Realized Losses                                              0                         0.00

                  (d)  Cumulative Realized Losses
                                1.  Fixed Rate                                                                                 0.00
                                2.  Adjustable Rate                                                                            0.00

                                               Total                                                                           0.00

                  (e)  Cumulative Applied Realized Losses

                                          i.  Class B-4                                                                           0
                                         ii.  Class B-3                                                                           0
                                        iii.  Class B-2                                                                           0
X                                       iv.  Class B-1                                                                         0.00
                                         v.  Class M-2                                                                         0.00
                                        vi.  Class M-1                                                                            0

      Miscellaneous Information

      1.   (a)  Monthly Master Servicer Fee
                                          i.  Monthly Servicig Fee                                                      138383.6608
                                         ii.  Mortgage Fees                                                                56342.87
       
           (b)  Amount of prior unpaid Master Servicing Fees paid with this distribution                                          0

           (c)  Total Master Servicing Fees paid with this distribution                                                 194726.5308

                                                                                                                   -----------------
           (d)  Amount of unpaid Master Servicing Fees as of this distribution                                                 0.00


      2.   (a)  Opening Master Servicer Advance Balance                                                                  1031926.41

           (b)  Current Advance (exclusive of Compensating Interest)                                                      390289.46

           (c)  Reimbursement of prior Master Servicer Advances                                                          -185651.58

           (d)  Ending Master Servicer Advance Balance                                                                   1236564.29
     3.   Current period Compensating Interest                                                                               2672.9

</TABLE>


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