SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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) April 14, 1997
ADVANCED FINANCIAL, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
0-19485 84-1069416
(Commission File Number)(I.R.S. Employer Identification No.)
5425 Martindale, Shawnee, Kansas 66218
(Address of Principal Executive Offices) (Zip Code)
(913) 441-2466
(Registrant's Telephone Number, Including Area Code)
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Items. Other Events
On April 14, 1997, the Government National Mortgage Association
("GNMA") notified Advanced Financial, Inc. ("AFI") that GNMA
deems AFI in violation of servicing rights agreements between AFI
and GNMA with respect to a mortgage portfolio in which GNMA is
the investor. AFI had previously notified GNMA, in connection
with a proposed sale of the servicing rights to a third party, of
an anticipated short fall of between approximately $350,000 -
$400,000 in AFI's custodial accounts regarding the mortgages.
GNMA also advised AFI that, as a result of the violation of the
servicing rights agreements, it was terminating AFI's servicing
rights immediately. The servicing rights represented AFI's only
remaining significant asset.
AFI's Board of Directors continues to examine a number of
alternatives to address its troubled financial condition,
including the acquisition of or merger with another company.
AFI is a holding company with its principal operations conducted
through its wholly-owned subsidiary, AFI Mortgage Corporation.
<PAGE>
Item 7 Financial Statements and Exhibits.
(c) The following exhibit is filed as part of this current
report on Form 8-K.
Exhibit Number Description
99 Press Release dated April 14, 1997
announcing GNMA action.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report as amended to
be signed on its behalf by the undersigned hereunto duly
authorized.
Advanced Financial, Inc.
(Registrant)
Date April 15, 1997 By /s/ William B. Morris
(Signature)
William B. Morris, Secretary
Exhibit 99
FOR IMMEDIATE RELEASE
Contact: Brad Morris New Release
(913) 441-2466 BB: AVFI
FOR IMMEDIATE RELEASE
ADVANCED FINANCIAL, INC. ADVISES THAT GNMA
HAS TERMINATED SERVICING RIGHTS
SHAWNEE, KANSAS, April 15, 1997. . .Advanced Financial, Inc.,
("AFI"), announced that The Government National Mortgage
Association ("GNMA") has advised it that GNMA deems AFI in
violation of servicing rights agreements between AFI and GNMA
with respect to a mortgage portfolio in which GNMA is the
investor. AFI had previously notified GNMA, in connection with a
proposed sale of the servicing rights to a third party, of an
anticipated short fall of between approximately $350,000 -
$400,000 in AFI's custodial accounts regarding the mortgages.
GNMA also advised AFI that, as a result of the violation of the
servicing rights agreements, it was terminating AFI's servicing
rights immediately. The servicing rights represented AFI's only
remaining significant asset.
AFI's Board of Directors continues to examine a number of
alternatives to address its troubled financial condition,
including the acquisition of or merger with another company.
AFI is a holding company with its principal operations conducted
through its wholly-owned subsidiary, AFI Mortgage Corporation.
