- --------------------------------------------------------------------------------
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) December 28, 1998
SUPERIOR BANK FSB (as depositor under the Pooling and Servicing Agreement, dated
as of March 1, 1998, providing for the issuance of AFC Mortgage Loan Asset
Backed Certificates, Series 1998-1)
Superior Bank FSB
----------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
United States 333-39199 36-1414142
- ---------------------------- ------------ ----------------------
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification Number)
One Lincoln Centre
Oakbrook Terrace, Illinois 60181
- -------------------------- ----------
(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code (630) 916-4000
- --------------------------------------------------------------------------------
<PAGE>
Item 5. Other Events
On December 28, 1998 (a "Remittance Date") a scheduled remittance was made
to the Certificateholders with respect to AFC Mortgage Loan Asset Backed
Certificates, Series 1998-1, issued pursuant to a Pooling and Servicing
Agreement, dated as of March 1, 1998, among Superior Bank FSB., as Depositor and
Servicer and LaSalle National Bank, as Trustee. The information contained in the
Servicer's Monthly Remittance Report to the Trustee, which shall be forwarded by
the Trustee to the Certificateholders, is attached hereto as Exhibit 21.1 and is
incorporated herein by reference.
Capitalized terms used herein and not defined shall have the same meanings
ascribed to them in the Pooling and Servicing Agreement.
Items 2 through 4 and Items 6 and 8 are not included because they are not
applicable.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Not applicable
(b) Not applicable
(c) Exhibits
21.1 Monthly Remittance Report for the month of December, 1998.
<PAGE>
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.
SUPERIOR BANK F.S.B.
By: /s/ William C. Bracken
------------------------
Name: William C. Bracken
Title: Senior Vice President
Dated: December 28, 1998
<PAGE>
EXHIBITS TABLE
Exhibit No. Description
- ----------- -----------
21.1 Monthly Remittance Report for the month of December, 1998.
REVISED 12/22/98
ALLIANCE FUNDING
BY SUPERIOR BANK FSB - SERVICING DIVISION
DESIGNATED SERVICER PAGE 1 OF 4
SERVICER'S CERTIFICATE
1998-1 GROUP 1 (SUB-POOLS 1 & 2)
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING
AGREEMENT DATED AS OF MARCH 1, 1998
SUPERIOR BANK FSB - SERVICING DIVISION REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1998-1 GROUP 1 FOR DECEMBER 28, 1998, THE
REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
GROUP 1 SUB-POOL 1 SUB-POOL 2
------------- ------------- -------------
<S> <C> <C> <C>
COLLECTIONS
1 Total Actual Principal Collections 4,427,492.54 1,910,502.91 2,516,989.63
2 Total Actual Interest Collections 1,972,222.77 791,429.48 1,180,793.29
3 Service Fees Previously Remitted 119,230.18 48,605.43 70,624.75
4 Additional Proceeds 0.00 0.00 0.00
------------- ------------- -------------
5 TOTAL COLLECTIONS: 6,280,485.13 2,653,326.96 3,627,158.17
MONTHLY ADVANCES
6 Delinquent Interest Advance 79,110.60 29,124.73 49,985.87
7 Compensating Interest 17,732.18 7,784.97 9,947.21
8 Amounts Held for Future Distributions 0.00 0.00 0.00
9 Cross Collateral Deposit 0.00 0.00 0.00
10 Reserve Withdrawal per Sec. 6.14 0.00 0.00 0.00
------------- ------------- -------------
11 AVAILABLE REMITTANCE AMOUNT: 6,377,327.91 2,690,236.66 3,687,091.25
FEES
12 Service Fees 0.00 0.00 0.00
13 Expense Account Deposit: 5,398.90 2,202.00 3,196.90
------------- ------------- -------------
14 ADJUSTED REMITTANCE AMOUNT: 6,371,929.01 2,688,034.66 3,683,894.35
REMAINING AMOUNT AVAILABLE:
15 Adjusted Remittance Amount 6,371,929.01
16 Insured Payments due 0.00
17 Monthly Insurance Premium @ 13bp
the Ending Principal Balance 23,394.35
18 Cross Collateral Withdrawal 0.00
19 Class Remittance Amounts 6,348,534.66
20 Non-Recoverable Advances not
Previously Reimbursed 0.00
-------------
21 Total Remaining Amount Available: 0.00
=============
REIMBURSEMENTS DUE PURSUANT TO SEC. 5.04
22 Servicing Fee 0.00 0.00 0.00
23 Monthly Advances and Servicer Advances 0.00 0.00 0.00
24 Preference Amount per Sec. 6.06(b) 0.00 0.00 0.00
25 Servicing compensation per Sec. 7.03 0.00 0.00 0.00
26 REO Mgmt. & Dispositions per Sec 5.10 0.00 0.00 0.00
27 Trustee Advances per Sec 11.01 0.00 0.00 0.00
-------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ALLIANCE FUNDING
BY SUPERIOR BANK FSB - SERVICING DIVISION
DESIGNATED SERVICER PAGE 2 OF 4
SERVICER'S CERTIFICATE
1998-1 GROUP 1 (SUB-POOLS 1 & 2)
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING
AGREEMENT DATED AS OF MARCH 1, 1998
SUPERIOR BANK FSB - SERVICING DIVISION REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1998-1 GROUP 1 FOR DECEMBER 28, 1998, THE
REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
GROUP 1 CLASS 1A-1 CLASS 1A-2 CLASS R
-------------- ------------- -------------- ----------
<S> <C> <C> <C> <C>
32 Loans Outstanding - BOM 3,721 1,350 2,371
33 Original Loan Balance 230,143,946.18 93,410,592.71 136,733,353.47
34 Pre-Funding Account Balance 0.00 0.00 0.00
35 Initial Overcollateralization 9,690,172.04 3,349,651.87 6,340,520.17
36 Realized Losses, LTD 8,140.97 8,140.97 0.00
37 Carryforward Amount 0.00 0.00 0.00
-------------------------------------------------------
38 Total Class Principal Balance 220,461,915.11 90,069,081.81 130,392,833.30
39 Pool Factor per Loan Balance 92.0575785% 37.3642371% 54.6933414%
40 Pool Factor per Class Balance 88.1847660% 36.0276327% 52.1571333%
41 Excess Spread 0.00 0.00
42 Principal Collection Factor 100.0000000% 44.1405114% 55.8594886%
43 Additional Principal due 848,296.49 374,442.41 473,854.08
44 Cross Collateral Withdrawal 0.00 0.00
45 Cross Collateral Deposit 0.00 0.00 0.00
46 Interest Remittance @ Pass-Through Rate 1,072,745.63 437,778.82 634,966.81
PRINCIPAL REDUCTIONS:
47 Prepayments - Number 57 21 36
48 Prepayments - Dollar 4,065,432.14 1,746,816.22 2,318,615.92
49 Delinquent Loans Repurchased - Number 0 0 0
50 Delinquent Loans Repurchased - Dollar 0.00 0.00 0.00
51 Net Liquidation Proceeds 92,562.23 92,562.23 0.00
52 Curtailments 19,267.82 0.00 19,267.82
53 Normal and Excess Payments 250,230.35 71,124.46 179,105.89
--------------------------------------------------------------------------
54 Principal Remittance 4,427,492.54 1,910,502.91 2,516,989.63
--------------------------------------------------------------------------
55 Total Principal Remittance 4,427,492.54 1,910,502.91 2,516,989.63
56 Additional Principal Reduction 848,296.49 374,442.41 473,854.08
--------------------------------------------------------------------------
57 TOTAL REMITTANCE 6,348,534.66 2,722,724.14 3,625,810.52 0.00
==========================================================================
58 Current Month Realized Loss - Number 2 2 0 2
59 Current Month Realized Loss - Dollar 78,437.77 78,437.77 0.00 78,437.77
CLASS PRINCIPAL BALANCE - EOM
60 Loans Outstanding - EOM 3662 1327 2335
61 Closing Loan Balance 225,638,015.87 91,421,652.03 134,216,363.84
62 Pre-Funding Account Balance 0.00 0.00 0.00
63 Additional Principal Reduction, LTD 10,538,468.53 3,724,094.28 6,814,374.25
64 Realized Losses, LTD 86,578.74 86,578.74 0.00
--------------------------------------------------------------------------
65 Total Class Principal Balance 215,186,126.08 87,784,136.49 127,401,989.59
66 Pool Factor per Loan Balance 90.2552063% 36.5686608% 53.6865455%
67 Pool Factor per Class Balance 162.5156442% 35.1136546% 127.4019896%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ALLIANCE FUNDING
BY SUPERIOR BANK FSB - SERVICING DIVISION
DESIGNATED SERVICER PAGE 3 OF 4
SERVICER'S CERTIFICATE
1998-1 GROUP 1 (SUB-POOLS 1 & 2)
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING
AGREEMENT DATED AS OF MARCH 1, 1998
SUPERIOR BANK FSB - SERVICING DIVISION REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1998-1 GROUP 1 FOR DECEMBER 28, 1998, THE
REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
68 Weighted Note Rate - THIS Remittance 10.82092% 10.67510% 10.92054%
69 Weighted Note Rate - NEXT Remittance 10.81858% 10.67631% 10.91549%
70 Weighted Average Remaining Term 233.67 256.24 218.29
71 Accrual Period for Libor Rate 25-Nov-98 thru 27-Dec-98
72 Days in Related Period 33
73 Pass-Through Rate 5.30234% 5.31234%
<CAPTION>
GROUP 1 SUB-POOL 1 SUB-POOL 2
-------------- ------------- -------------
<S> <C> <C> <C>
74 Original Pool - Principal Balance 180,932,515.76 70,000,198.22 110,932,317.54
75 Original Pool - Pre-Funding Account 71,848,070.66 31,112,036.36 40,736,034.30
76 Original Pool - Initial Overcollateralization 2,780,586.42 1,112,234.58 1,668,351.84
----------------------------------------------------------
77 Original Pool Total 250,000,000.00 100,000,000.00 150,000,000.00
78 Original Pool - Number of Loans 2,841 1,000 1,841
----------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS 1A-1 OVERCOLLATERALIZATION RECONCILIATION
Beg.of Month Current Month End of Month
-----------------------------------------------------------
<S> <C> <C> <C>
79 Initial Overcollateralization 3,349,651.87 374,442.41 3,724,094.28
80 Less: Realized Losses, LTD 8,140.97 78,437.77 86,578.74
81 Cross Coallateralzation Deposit, LTD 0.00 0.00 0.00
-----------------------------------------------------------
82 Overcollateralization of Principal 3,341,510.90 296,004.64 3,637,515.54
===========================================================
83 Base Overcollateralization Required* 6,268,958.54
84 Required Overcollateralization Amount 6,268,958.54
----------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS 1A-2 OVERCOLLATERALIZATION RECONCILIATION
Beg.of Month Current Month End of Month
-----------------------------------------------------------
<S> <C> <C> <C>
85 Initial Overcollateralization 6,340,520.17 473,854.08 6,814,374.25
86 Less: Realized Losses, LTD 0.00 0.00 0.00
87 Cross Coallateralzation Deposit, LTD 0.00 0.00 0.00
-----------------------------------------------------------
88 Overcollateralization of Principal 6,340,520.17 473,854.08 6,814,374.25
===========================================================
89 Base Overcollateralization Required* 9,403,437.82
90 Required Overcollateralization Amount 9,403,437.82
----------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------
CURRENT MONTH SUBORDINATED AMOUNT Beg.of Month Current Month End of Month
--------------------------------- -----------------------------------------------------------
<S> <C> <C> <C>
91 Original Group 1 Subordinated Amount* 31,850,353.89 N/A 31,850,353.89
92 Less: Group 1 Cumulative Realized Losses 8,140.97 78,437.77 86,578.74
93 Plus: Group 1 Cumulative Additional Proceeds 0.00 0.00 0.00
-----------------------------------------------------------
94 Current Group 1 Subordinated Amount 31,842,212.92 (78,437.77) 31,763,775.15
===========================================================
* As per Insurance Supplement
-----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ALLIANCE FUNDING
BY SUPERIOR BANK FSB - SERVICING DIVISION
DESIGNATED SERVICER PAGE 4 OF 4
SERVICER'S CERTIFICATE
1998-1 GROUP 1 (SUB-POOLS 1 & 2)
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING
AGREEMENT DATED AS OF MARCH 1, 1998
SUPERIOR BANK FSB - SERVICING DIVISION REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1998-1 GROUP 1 FOR DECEMBER 28, 1998, THE
REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
NONRECOVERABLE ADVANCE RECONCILIATION GROUP 1
-----------
<S> <C>
95 Beginning of Month 0.00
96 Current Month Unpaid Nonrecoverable Advance 0.00
97 Less: Current Month Reimbursement 0.00
-----------
98 End of Month 0.00
--------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS FACTORS GROUP 1 CLASS 1A-1 CLASS 1A-2
-------------- -------------- --------------
<S> <C> <C> <C>
99 Total Class Principal - Original Pool 250,000,000.00 100,000,000.00 150,000,000.00
10 Interest Remittance Amount 1,072,745.63 437,778.82 634,966.81
101 Interest Rate Factor / 1000 4.290983 4.377788 4.233112
102 Total Principal Collections 4,427,492.54 1,910,502.91 2,516,989.63
103 Prefunding Account Excess 0.00 0.00 0.00
104 Additional Principal Reduction 848,296.49 374,442.41 473,854.08
-------------- -------------- --------------
105 Principal Remittance Amount 5,275,789.03 2,284,945.32 2,990,843.71
106 Principal Payment Factor/1000 21.103156 22.849453 19.938958
107 Current Month Ending Principal Factor 860.744504 877.841366 849.346596
108 Prior Month Ending Principal Factor 881.847660 900.690819 869.285554
--------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ALLIANCE FUNDING
BY SUPERIOR BANK FSB - SERVICING DIVISION
DESIGNATED SERVICER PAGE 1 OF 4
SERVICER'S CERTIFICATE
1998-1 GROUP 2 (SUB-POOLS 3 & 4)
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT
DATED AS OF MARCH 1, 1998
SUPERIOR BANK FSB - SERVICING DIVISION REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1998-1 GROUP 2 FOR DECEMBER 28, 1998,
THE REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
GROUP 2 SUB-POOL 3 SUB-POOL 4
------------- ------------- -------------
COLLECTIONS
<S> <C> <C> <C>
1 Total Actual Principal Collections 5,666,490.42 1,463,885.21 4,202,605.21
2 Total Actual Interest Collections 1,408,310.16 378,054.19 1,030,255.97
3 Service Fees Previously Remitted 88,972.68 24,032.48 64,940.20
4 Additional Proceeds 0.00 0.00 0.00
------------- ------------- -------------
5 TOTAL COLLECTIONS: 6,985,827.90 1,817,906.92 5,167,920.98
MONTHLY ADVANCES
6 Delinquent Interest Advance 89,814.52 32,070.75 57,743.77
7 Compensating Interest 20,093.76 6,129.06 13,964.70
8 Amounts Held for Future Distributions 0.00 0.00 0.00
9 Cross Collateral Deposit 0.00 0.00 0.00
10 Reserve Withdrawal per Sec. 6.14 0.00 0.00 0.00
------------- ------------- -------------
11 AVAILABLE REMITTANCE AMOUNT: 7,095,736.18 1,856,106.73 5,239,629.45
FEES
12 Service Fees 0.00 0.00 0.00
13 Expense Account Deposit: 4,049.51 1,120.37 2,929.14
------------- ------------- -------------
14 ADJUSTED REMITTANCE AMOUNT: 7,091,686.67 1,854,986.36 5,236,700.31
REMAINING AMOUNT AVAILABLE:
15 Adjusted Remittance Amount 7,091,686.67
16 Insured Payments due 0.00
17 Monthly Insurance Premium @ 13bp
the Ending Principal Balance 17,547.81
18 Cross Collateral Withdrawal 0.00
19 Class Remittance Amounts 7,074,138.86
20 Non-Recoverable Advances not
Previously Reimbursed 0.00
-------------
21 Total Remaining Amount Available: 0.00
=============
REIMBURSEMENTS DUE PURSUANT TO SEC. 5.04
22 Servicing Fee 0.00 0.00 0.00
23 Monthly Advances and Servicer Advances 0.00 0.00 0.00
24 Preference Amount per Sec. 6.06(b) 0.00 0.00 0.00
25 Servicing compensation per Sec. 7.03 0.00 0.00 0.00
26 REO Mgmt. & Dispositions per Sec 5.10 0.00 0.00 0.00
27 Trustee Advances per Sec 11.01 0.00 0.00 0.00
------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ALLIANCE FUNDING
BY SUPERIOR BANK FSB - SERVICING DIVISION
DESIGNATED SERVICER PAGE 2 OF 4
SERVICER'S CERTIFICATE
1998-1 GROUP 2 (SUB-POOLS 3 & 4)
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT
DATED AS OF MARCH 1, 1998
SUPERIOR BANK FSB - SERVICING DIVISION REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1998-1 GROUP 2 FOR DECEMBER 28, 1998,
THE REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
GROUP 2 CLASS 2A-1 CLASS 2A-2 CLASS R
-------------- ------------- -------------- ----------
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------------
28 Loans Outstanding - BOM 1,561 522 1,039
29 Original Loan Balance 176,257,859.50 48,569,880.57 127,687,978.93
30 Initial Overcollaterization 8,611,583.93 2,291,096.09 6,320,487.84
31 Realized Losses, LTD 904.10 0.00 904.10
32 Carryforward Amount 0.00 0.00 0.00
-------------------------------------------------------
33 Total Class Principal Balance 167,647,179.67 46,278,784.48 121,368,395.19
34 Pool Factor per Loan Balance 88.1289298% 24.2849403% 63.8439895%
35 Pool Factor per Class Balance 83.8235898% 23.1393922% 60.6841976%
36 Excess Spread 0.00 0.00
37 Principal Collection Factor 100.0000000% 25.8340719% 74.1659281%
38 Additional Principal due 602,447.78 155,636.79 446,810.99
39 Cross Collateral Withdrawal 0.00 0.00
40 Cross Collateral Deposit 0.00 0.00 0.00
41 Interest Remittance @ Pass-Through Rate 805,200.66 221,967.47 583,233.19
PRINCIPAL REDUCTIONS:
42 Prepayments - Number 37 10 27
43 Prepayments - Dollar 4,688,491.08 1,324,377.03 3,364,114.05
44 Delinquent Loans Repurchased - Number 0 0 0
45 Delinquent Loans Repurchased - Dollar 0.00 0.00 0.00
46 Net Liquidation Proceeds 0.00 0.00 0.00
47 Curtailments 891,244.84 115,247.62 775,997.22
48 Normal and Excess Payments 86,754.50 24,260.56 62,493.94
--------------------------------------------------------------------------
49 Principal Remittance 5,666,490.42 1,463,885.21 4,202,605.21
--------------------------------------------------------------------------
50 Total Principal Remittance 5,666,490.42 1,463,885.21 4,202,605.21
51 Additional Principal Reduction 602,447.78 155,636.79 446,810.99
--------------------------------------------------------------------------
52 TOTAL REMITTANCE 7,074,138.86 1,841,489.47 5,232,649.39 0.00
==========================================================================
53 Current Month Realized Loss - Number 0 0 0 0
54 Current Month Realized Loss - Dollar 0.00 0.00 0.00 0.00
CLASS PRINCIPAL BALANCE - EOM
55 Loans Outstanding - EOM 1524 512 1012
56 Closing Loan Balance 170,591,369.08 47,105,995.36 123,485,373.72
58 Additional Principal Reduction, LTD 9,214,031.71 2,446,732.89 6,767,298.82
59 Realized Losses, LTD 904.10 0.00 904.10
--------------------------------------------------------------------------
60 Total Class Principal Balance 161,378,241.47 44,659,262.47 116,718,979.00
61 Pool Factor per Loan Balance 85.2956846% 23.5529977% 61.7426869%
62 Pool Factor per Class Balance 234.5459567% 22.3296312% 212.2163255%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ALLIANCE FUNDING
BY SUPERIOR BANK FSB - SERVICING DIVISION
DESIGNATED SERVICER PAGE 3 OF 4
SERVICER'S CERTIFICATE
1998-1 GROUP 2 (SUB-POOLS 3 & 4)
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT
DATED AS OF MARCH 1, 1998
SUPERIOR BANK FSB - SERVICING DIVISION REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1998-1 GROUP 2 FOR DECEMBER 28, 1998,
THE REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
63 Weighted Note Rate - THIS Remittance 10.37997% 10.33926% 10.39546%
64 Weighted Note Rate - NEXT Remittance 10.38531% 10.34780% 10.39962%
65 Weighted Average Remaining Term 349.12 349.42 349.01
66 Accrual Period for Libor Rate 25-Nov-98 thru 27-Dec-98
67 Days in Related Period 33
68 Pass-Through Rate 5.23234% 5.24234%
<CAPTION>
GROUP 2 SUBPOOL 3 SUBPOOL 4
-------------- ------------- -------------
<S> <C> <C> <C>
69 Original Pool - Principal Balance 142,610,986.32 49,999,948.51 92,611,037.81
70 Original Pool - Pre-Funding Account 61,055,001.48 6,008,198.14 55,046,803.34
71 Original Pool - Initial Overcollateralization 3,665,987.80 1,008,146.65 2,657,841.15
----------------------------------------------------------
72 Original Pool Total 200,000,000.00 55,000,000.00 145,000,000.00
73 Original Pool - Number of Loans 1,271 531 740
----------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS 2A-1 OVERCOLLATERALIZATION RECONCILIATION
Beg.of Month Current Month End of Month
-----------------------------------------------------------
<S> <C> <C> <C>
74 Initial Overcollateralization 2,291,096.09 155,636.79 2,446,732.89
75 Less: Realized Losses, LTD 0.00 0.00 0.00
-----------------------------------------------------------
76 Overcollateralization of Principal 2,291,096.09 155,636.79 2,446,732.89
===========================================================
77 Base Overcollateralization Required 2,968,431.77
78 Required Overcollateralization Amount 2,968,431.77
----------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS 2A-2 OVERCOLLATERALIZATION RECONCILIATION
-----------------------------------------------
Beg.of Month Current Month End of Month
-----------------------------------------------------------
<S> <C> <C> <C>
79 Initial Overcollateralization 6,320,487.84 446,810.99 6,767,298.82
80 Less: Realized Losses, LTD 904.10 0.00 904.10
-----------------------------------------------------------
81 Overcollateralization of Principal 6,319,583.74 446,810.99 6,766,394.72
===========================================================
82 Base Overcollateralization Required 7,825,865.58
83 Required Overcollateralization Amount 7,825,865.58
----------------------------------------------------------------------------------------------------------------
<CAPTION>
CURRENT MONTH SUBORDINATED AMOUNT Beg.of Month Current Month End of Month
-----------------------------------------------------------
<S> <C> <C> <C>
84 Original Group 2 Subordinated Amount* 24,134,419.55 N/A 24,134,419.55
85 Less: Group 2 Cumulative Realized Losses 904.10 0.00 904.10
86 Plus: Group 2 Cumulative Additional Proceeds 0.00 0.00 0.00
-----------------------------------------------------------
87 Current Group 2 Subordinated Amount 24,133,515.45 0.00 24,133,515.45
===========================================================
* Per Insurance Supplement
----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ALLIANCE FUNDING
BY SUPERIOR BANK FSB - SERVICING DIVISION
DESIGNATED SERVICER PAGE 4 OF 4
SERVICER'S CERTIFICATE
1998-1 GROUP 2 (SUB-POOLS 3 & 4)
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING
AGREEMENT DATED AS OF MARCH 1, 1998
SUPERIOR BANK FSB - SERVICING DIVISION REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1998-1 GROUP 2p FOR DECEMBER 28, 1998, THE
REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
NONRECOVERABLE ADVANCE RECONCILIATION GROUP 2
-----------
<S> <C>
88 Beginning of Month 0.00
89 Current Month Unpaid Nonrecoverable Advance 0.00
90 Less: Current Month Reimbursement 0.00
-----------
91 End of Month 0.00
--------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS FACTORS GROUP 1 CLASS 1A-1 CLASS 1A-2
-------------- -------------- --------------
<S> <C> <C> <C>
92 Total Class Principal - Original Pool 200,000,000.00 55,000,000.00 145,000,000.00
93 Interest Remittance Amount 805,200.66 221,967.47 583,233.19
94 Interest Rate Factor / 1000 4.026003 4.035772 4.022298
95 Total Principal Collections 5,666,490.42 1,463,885.21 4,202,605.21
96 Prefunding Account Excess 0.00 0.00 0.00
97 Additional Principal Reduction 602,447.78 155,636.79 446,810.99
-------------- -------------- --------------
98 Principal Remittance Amount 6,268,938.20 1,619,522.00 4,649,416.20
99 Principal Payment Factor/1000 31.344691 29.445855 32.064938
100 Current Month Ending Principal Factor 806.891208 811.986589 804.958485
101 Prior Month Ending Principal Factor 838.235899 841.432444 837.023423
--------------------------------------------------------------------------------------------------------------
</TABLE>
