================================================================================
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) NOVEMBER 25, 1998
-----------------
SUPERIOR BANK FSB (as depositor under the Pooling and Servicing Agreement, dated
as of September 1, 1998, providing for the issuance of AFC Mortgage Loan Asset
Backed Certificates, Series 1998-3)
SUPERIOR BANK FSB
------------------------------------------------------
(Exact name of registrant as specified in its charter)
UNITED STATES 333-61691 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 November 25, 1998 (a "Remittance Date") a scheduled remittance was made
to the Certificateholders with respect to AFC Mortgage Loan Asset Backed
Certificates, Series 1998-3, issued pursuant to a Pooling and Servicing
Agreement, dated as of September 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 November, 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: November 25, 1998
<PAGE>
EXHIBITS TABLE
21.1 Monthly Remittance Report for the month of November, 1998.
<TABLE>
<CAPTION>
ALLIANCE FUNDING
by SUPERIOR BANK FSB - SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-3 Group 1 (Sub-Pools 1 & 2)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-3 Group 1 for November 25, 1998, the Remittance date.
Due period ended: November 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
Group 1 Sub-Pool 1 Sub-Pool 2
COLLECTIONS -------------- --------------- --------------
-----------
<S> <C> <C> <C> <C>
1 Total Actual Principal Collections 592,698.49 151,880.76 440,817.73
2 Total Actual Interest Collections 1,160,126.20 247,595.38 912,530.82
3 Service Fees Previously Remitted 87,109.64 20,008.96 67,100.68
4 Additional Proceeds 0.00 0.00 0.00
-------------- -------------- --------------
5 Total Collections: 1,665,715.05 379,467.18 1,286,247.87
6 Pre-Funding Account Transfers 0.00 0.00 0.00
7 Interest Coverage Account Transfer 521,743.67 56,603.70 465,139.97
8 Deferred Interest Coverage Account Transfer 47,348.14 15,794.68 31,553.46
-------------- -------------- --------------
9 Aggregate Amount Received: 2,234,806.86 451,865.56 1,782,941.30
MONTHLY ADVANCES
----------------
10 Delinquent Interest Advance 353,496.28 118,548.28 234,948.00
11 Compensating Interest 1,350.29 453.84 896.45
12 Amounts Held for Future Distributions 0.00 0.00 0.00
13 Cross Collateral Deposit 0.00 0.00 0.00
14 Reserve Withdrawal per Sec. 6.14 0.00 0.00 0.00
-------------- -------------- --------------
15 Available Remittance Amount: 2,589,653.43 570,867.68 2,018,785.75
FEES
----
16 Service Fees 20,159.12 0.00 20,159.12
17 Expense Account Deposit: 1,977.00 423.17 1,553.83
-------------- -------------- --------------
18 Adjusted Remittance Amount: 2,567,517.31 570,444.51 1,997,072.80
REMAINING AMOUNT AVAILABLE:
---------------------------
19 Adjusted Remittance Amount 2,567,517.31
20 Insured Payments due 0.00
21 Monthly Insurance Premium @ 12 bp
the Ending Principal Balance 23,724.02
22 Cross Collateral Withdrawal 0.00
23 Class Remittance Amounts 2,543,793.29
24 Non-Recoverable Advances not
Previously Reimbursed 0.00
--------------
25 Total Remaining Amount Available: 0.00
--------------
REIMBURSEMENTS DUE PURSUANT TO SEC. 5.04
----------------------------------------
26 Servicing Fee 0.00 0.00 0.00
27 Monthly Advances and Servicer Advances 0.00 0.00 0.00
28 Preference Amount per Sec. 6.06(b) 0.00 0.00 0.00
29 Servicing compensation per Sec. 7.03 0.00 0.00 0.00
30 REO Mgmt. & Dispositions per Sec 5.10 0.00 0.00 0.00
31 Trustee Advances per Sec 11.01 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1 of 4
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING
by SUPERIOR BANK FSB - SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-3 Group 1 (Sub-Pools 1 & 2)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-3 Group 1 for November 25, 1998, the Remittance date.
Due period ended: November 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
Group 1 Class 1A-1 Class 1A-2 Class R
---------------- --------------- ----------------- -----------
<S> <C> <C> <C> <C> <C>
32 Loans Outstanding - BOM 2,836 651 2,185
33 Original Loan Balance 177,565,929.13 43,948,491.04 133,617,438.09
34 Pre-Funding Account Balance 63,376,101.36 7,539,400.32 55,836,701.04
35 Initial Overcollateralization 3,109,140.55 555,281.47 2,553,859.08
36 Realized Losses, LTD 0.00 0.00 0.00
37 Carryforward Amount 0.00 0.00 0.00
-------------------------------------------------------------------
38 Total Class Principal Balance 237,832,889.94 50,932,609.89 186,900,280.05
39 Pool Factor per Loan Balance 74.2953678% 18.3884900% 55.9068779%
40 Pool Factor per Class Balance 99.5116694% 21.3107154% 78.2009540%
41 Excess Spread 0.00 0.00
42 Principal Collection Factor 100.0000000% 25.6252990% 74.3747010%
43 Additional Principal due 853,646.94 218,749.58 634,897.36
44 Cross Collateral Withdrawal 0.00 0.00
45 Cross Collateral Deposit 0.00 0.00 0.00
46 Interest Remittance @ Pass-Through Rate 1,097,447.86 234,688.13 862,759.73
PRINCIPAL ADDITIONS:
47 Number 433 108 325
48 Loan transfers from Pre-Funding 27,519,743.01 7,538,438.68 19,981,304.33
PRINCIPAL REDUCTIONS:
49 Prepayments - Number 12 3 9
50 Prepayments - Dollar 406,388.08 114,208.22 292,179.86
51 Delinquent Loans Repurchased - Number 0 0 0
52 Delinquent Loans Repurchased - Dollar 0.00 0.00 0.00
53 Net Liquidation Proceeds 0.00 0.00 0.00
54 Curtailments 5,000.00 0.00 5,000.00
55 Normal and Excess Payments 181,310.41 37,672.54 143,637.87
------------------------------------------------------------------------
56 Principal Remittance 592,698.49 151,880.76 440,817.73
-----------------------------------------------------------------------
57 Total Principal Remittance 592,698.49 151,880.76 440,817.73
58 Additional Principal Reduction 853,646.94 218,749.58 634,897.36
------------------------------------------------------------------------
59 TOTAL REMITTANCE 2,543,793.29 605,318.47 1,938,474.82 0.00
========================================================================
60 Current Month Realized Loss - Number 0 0 0 0
61 Current Month Realized Loss - Dollar 0.00 0.00 0.00 0.00
CLASS PRINCIPAL BALANCE - EOM
62 Loans Outstanding - EOM 3257 756 2501
63 Closing Loan Balance 204,492,973.65 51,335,048.96 153,157,924.69
64 Pre-Funding Account Balance 35,856,358.35 961.64 35,855,396.71
65 Additional Principal Reduction, LTD 3,962,787.49 774,031.05 3,188,756.44
66 Realized Losses, LTD 0.00 0.00 0.00
------------------------------------------------------------------------
67 Total Class Principal Balance 236,386,544.51 50,561,979.55 185,824,564.96
68 Pool Factor per Loan Balance 85.5619137% 21.4791000% 64.0828137%
69 Pool Factor per Class Balance 385.5175321% 21.1556400% 364.3618921%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2 of 4
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING
by SUPERIOR BANK FSB - SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-3 Group 1 (Sub-Pools 1 & 2)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-3 Group 1 for November 25, 1998, the Remittance date.
Due period ended: November 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
70 Weighted Note Rate - THIS Remittance 10.47553 % 10.39514 % 10.49734 %
71 Weighted Note Rate - NEXT Remittance 10.47553 % 10.39514 % 10.49734 %
72 Weighted Average Remaining Term 242.04 267.94 233.36
73 Accrual Period for Libor Rate 26-Oct-98 thru 24-Nov-98
74 Days in Related Period 30
75 Pass-Through Rate 5.52938% 5.53938%
GROUP 1 SUBPOOL 1 SUBPOOL 2
---------------- ------------- ---------------
76 Original Pool - Principal Balance 146,225,367.34 31,005,113.86 115,220,253.48
77 Original Pool - Pre-Funding Account 95,188,774.10 20,510,037.66 74,678,736.44
78 Original Pool - Initial Overcollateralization 2,414,141.44 515,151.52 1,898,989.92
------------------------------------------------------------------------
79 Original Pool Total 239,000,000.00 51,000,000.00 188,000,000.00
80 Original Pool - Number of Loans 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS 1A-1 OVERCOLLATERALIZATION RECONCILIATION
-----------------------------------------------
Beg.of Month Current Month End of Month
---------------------------------------------------------------
81 Initial Overcollateralization 555,281.47 218,749.58 774,031.05
82 Less: Realized Losses, LTD 0.00 0.00 0.00
83 Cross Coallateralzation Deposit, LTD 0.00 0.00 0.00
--------------------------------------------------------------
84 Overcollateralization of Principal 555,281.47 218,749.58 774,031.05
===============================================================
85 Base Overcollateralization Required* 3,013,636.36
86 Required Overcollateralization Amount 3,013,636.36
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS 1A-2 OVERCOLLATERALIZATION RECONCILIATION
-----------------------------------------------
Beg.of Month Current Month End of Month
87 Initial Overcollateralization 2,553,859.08 634,897.36 3,188,756.44
88 Less: Realized Losses, LTD 0.00 0.00 0.00
89 Cross Coallateralzation Deposit, LTD 0.00 0.00 0.00
--------------------------------------------------------------
90 Overcollateralization of Principal 2,553,859.08 634,897.36 3,188,756.44
===============================================================
90 Base Overcollateralization Required* 11,109,090.91
91 Required Overcollateralization Amount 11,109,090.91
CURRENT MONTH SUBORDINATED AMOUNT Beg.of Month Current Month End Of Month
--------------------------------- --------------------------------------------------------------
92 Original Group 1 Subordinated Amount 28,728,282.83 N/A 28,728,282.83
93 Less: Group 1 Cumulative Realized Losses 0.00 0.00 0.00
94 Plus: Group 1 Cumulative Additional Proceeds 0.00 0.00 0.00
-------------------------------------------------------------
95 Current Group 1 Subordinated Amount 28,728,282.83 0.00 28,728,282.83
=============================================================
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3 of 4
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING
by SUPERIOR BANK FSB - SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-3 Group 1 (Sub-Pools 1 & 2)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-3 Group 1 for November 25, 1998, the Remittance date.
Due period ended: November 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
NONRECOVERABLE ADVANCE RECONCILIATION GROUP 1
------------------------------------- ----------
<S> <C> <C> <C> <C>
96 Beginning of Month 0.00
97 Current Month Unpaid Nonrecoverable Advance 0.00
98 Less: Current Month Reimbursement 0.00
99 End of Month 0.00
CLASS FACTORS GROUP 1 CLASS 1A-1 CLASS 1A-2
------------- -------------- ------------- --------------
100 Total Class Principal - Original Pool 239,000,000.00 51,000,000.00 188,000,000.00
101 Interest Remittance Amount 1,097,447.86 234,688.13 862,759.73
102 Interest Rate Factor / 1000 4.591832 4.601728 4.589148
103 Total Principal Collections 592,698.49 151,880.76 440,817.73
104 Prefunding Account Excess 0.00 0.00 0.00
105 Additional Principal Reduction 853,646.94 218,749.58 634,897.36
-------------- ------------- --------------
106 Principal Remittance Amount 1,446,345.43 370,630.34 1,075,715.09
107 Principal Payment Factor/1000 6.051655 7.267262 5.721889
108 Current Month Ending Principal Factor 989.065039 991.411363 988.428537
109 Prior Month Pricipal Factor 995.116694 998.678625 994.150426
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
PAGE 4 OF 4
<PAGE>
<TABLE>
<CAPTION>
REVISED 11/20 PAGE 1 OF 4
ALLIANCE FUNDING
BY SUPERIOR BANK FSB - SERVICING DIVISION
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1998-3 GROUP 2 (SUB-POOLS 3 & 4)
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF SEPTEMBER 1, 1998
SUPERIOR BANK FSB - SERVICING DIVISION REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1998-3 GROUP 2 FOR NOVEMBER 25, 1998, THE REMITTANCE DATE.
DUE PERIOD ENDED: NOVEMBER 1, 1998
- -------------------------------------------------------------------------------------------------------------------------------
COLLECTIONS GROUP 2 SUB-POOL 3 SUB-POOL 4
------------------------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
1 Total Actual Principal Collections 1,510,811.20 753,938.96 756,872.24
2 Total Actual Interest Collections 921,080.11 342,363.31 578,716.80
3 Service Fees Previously Remitted 73,902.24 29,428.70 44,473.54
4 Additional Proceeds 0.00 0.00 0.00
------------ ------------ ------------
5 TOTAL COLLECTIONS: 2,357,989.07 1,066,873.57 1,291,115.50
6 Pre-Funding Account Transfers 0.00 0.00 0.00
7 Interest Coverage Account Transfer 530,945.69 163,543.86 367,401.83
8 Deferred Interest Coverage Account Transfer 17,315.92 3,955.40 13,360.52
------------ ------------ ------------
9 AGGREGATE AMOUNT RECEIVED: 2,906,250.68 1,234,372.83 1,671,877.85
MONTHLY ADVANCES
------------------------------
10 Delinquent Interest Advance 307,914.22 145,654.01 162,260.21
11 Compensating Interest 6,038.58 1,973.28 4,065.30
12 Amounts Held for Future Distributions 0.00 0.00 0.00
13 Cross Collateral Deposit 0.00 0.00 0.00
14 Reserve Withdrawal per Sec. 6.14 0.00 0.00 0.00
------------ ------------ ------------
15 AVAILABLE REMITTANCE AMOUNT: 3,220,203.48 1,382,000.12 1,838,203.36
FEES
------------------------------
16 Service Fees 20,615.50 3,466.80 17,148.70
17 Expense Account Deposit: 1,736.18 638.92 1,097.26
------------ ------------ ------------
18 ADJUSTED REMITTANCE AMOUNT: 3,197,851.80 1,377,894.40 1,819,957.40
REMAINING AMOUNT AVAILABLE:
19 Adjusted Remittance Amount 3,197,851.80
20 Insured Payments due 0.00
21 Monthly Insurance Premium @ 12 bp
the Ending Principal Balance 20,834.17
22 Cross Collateral Withdrawal 0.00
23 Class Remittance Amounts 3,177,017.63
24 Non-Recoverable Advances not
Previously Reimbursed 0.00
------------
25 Total Remaining Amount Available: 0.00
============
REIMBURSEMENTS DUE PURSUANT TO SEC. 5.04
26 Servicing Fee 0.00 0.00 0.00
27 Monthly Advances and Servicer Advances 0.00 0.00 0.00
28 Preference Amount per Sec. 6.06(b) 0.00 0.00 0.00
29 Servicing compensation per Sec. 7.03 0.00 0.00 0.00
30 REO Mgmt. & Dispositions per Sec 5.10 0.00 0.00 0.00
31 Trustee Advances per Sec 11.01 0.00 0.00 0.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PAGE 2 OF 4
ALLIANCE FUNDING
BY SUPERIOR BANK FSB - SERVICING DIVISION
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1998-3 GROUP 2 (SUB-POOLS 3 & 4)
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF SEPTEMBER 1, 1998
SUPERIOR BANK FSB - SERVICING DIVISION REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1998-3 GROUP 2 FOR NOVEMBER 25, 1998, THE REMITTANCE DATE.
DUE PERIOD ENDED: NOVEMBER 1, 1998
- -----------------------------------------------------------------------------------------------------------------------------------
GROUP 2 CLASS 2A-1 CLASS 2A-2 CLASS R
-------------- ------------- --------------- ---------
<S> <C> <C> <C> <C> <C>
32 Loans Outstanding - BOM 1,328 587 741
33 Original Loan Balance 147,594,435.46 56,420,173.11 91,174,262.35
34 Pre-Funding Account Balance 66,039,038.47 22,476,617.03 43,562,421.44
35 Initial Overcollateralization 3,780,933.11 1,472,825.82 2,308,107.29
36 Realized Losses, LTD 0.00 0.00 0.00
37 Carryforward Amount 0.00 0.00 0.00
------------------------------------------------------
38 Total Class Principal Balance 209,852,540.82 77,423,964.32 132,428,576.50
39 Pool Factor per Loan Balance 69.9499694% 26.7394185% 43.2105509%
40 Pool Factor per Class Balance 99.4561805% 36.6938220% 62.7623585%
41 Excess Spread 0.00 0.00
42 Principal Collection Factor 100.0000000% 49.9029237% 50.0970763%
43 Additional Principal due 708,633.46 353,628.81 355,004.65
44 Cross Collateral Withdrawal 0.00 0.00
45 Cross Collateral Deposit 0.00 0.00 0.00
46 Interest Remittance @ Pass-Through Rate 957,572.97 352,884.23 604,688.74
PRINCIPAL ADDITIONS:
47 Number 194 194 0
48 Loan transfers from Pre-Funding 22,476,508.34 22,476,508.34 0.00
PRINCIPAL REDUCTIONS:
49 Prepayments - Number 9 5 4
50 Prepayments - Dollar 1,444,366.66 726,517.81 717,848.85
51 Delinquent Loans Repurchased - Number 0 0 0
52 Delinquent Loans Repurchased - Dollar 0.00 0.00 0.00
53 Net Liquidation Proceeds 0.00 0.00 0.00
54 Curtailments 0.00 0.00 0.00
55 Normal and Excess Payments 66,444.54 27,421.15 39,023.39
--------------------------------------------------------------------------
56 Principal Remittance 1,510,811.20 753,938.96 756,872.24
--------------------------------------------------------------------------
57 Total Principal Remittance 1,510,811.20 753,938.96 756,872.24
58 Additional Principal Reduction 708,633.46 353,628.81 355,004.65
--------------------------------------------------------------------------
59 TOTAL REMITTANCE 3,177,017.63 1,460,452.00 1,716,565.63 0.00
==========================================================================
60 Current Month Realized Loss - Number 0 0 0 0
61 Current Month Realized Loss - Dollar 0.00 0.00 0.00 0.00
CLASS PRINCIPAL BALANCE - EOM
62 Loans Outstanding - EOM 1513 776 737
63 Closing Loan Balance 168,560,132.60 78,142,742.49 90,417,390.11
64 Pre-Funding Account Balance 43,562,530.13 108.69 43,562,421.44
65 Additional Principal Reduction, LTD 4,489,566.57 1,826,454.63 2,663,111.94
66 Realized Losses, LTD 0.00 0.00 0.00
--------------------------------------------------------------------------
67 Total Class Principal Balance 207,633,096.16 76,316,396.55 131,316,699.61
68 Pool Factor per Loan Balance 79.8863188% 37.0344751% 42.8518437%
69 Pool Factor per Class Balance 204.5236514% 36.1689083% 168.3547431%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PAGE 3 OF 4
ALLIANCE FUNDING
BY SUPERIOR BANK FSB - SERVICING DIVISION
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1998-3 GROUP 2 (SUB-POOLS 3 & 4)
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF SEPTEMBER 1, 1998
SUPERIOR BANK FSB - SERVICING DIVISION REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1998-3 GROUP 2 FOR NOVEMBER 25, 1998, THE REMITTANCE DATE.
DUE PERIOD ENDED: NOVEMBER 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
70 Weighted Note Rate - THIS Remittance 10.10369% 10.07465% 10.12072%
71 Weighted Note Rate - NEXT Remittance 10.10369% 10.07465% 10.12072%
72 Weighted Average Remaining Term 355.68 357.33 354.25
73 Accrual Period for Libor Rate 26-Oct-98 thr 24-Nov-98
74 Days in Related Period 30
75 Pass-Through Rate 5.46938% 5.47938%
GROUP 2 SUBPOOL 3 SUBPOOL 4
-------------- ------------- --------------
76 Original Pool - Principal Balance 130,129,333.25 47,000,249.24 83,129,084.01
77 Original Pool - Pre-Funding Account 84,083,864.70 32,187,568.00 51,896,296.70
78 Original Pool - Initial Overcollateralization 3,213,197.95 1,187,817.24 2,025,380.71
---------------------------------------------------------------------------
79 Original Pool Total 211,000,000.00 78,000,000.00 133,000,000.00
80 Original Pool - Number of Loans 1,187 488 699
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS 2A-1 OVERCOLLATERALIZATION RECONCILIATION
Beg.of Month Current Month End of Month
----------------------------------------------------------------
<S> <C> <C> <C> <C>
81 Initial Overcollateralization 1,472,825.82 353,628.81 1,826,454.63
82 Less: Realized Losses, LTD 0.00 0.00 0.00
83 Cross Coallateralzation Deposit, LTD 0.00 0.00 0.00
----------------------------------------------------------------
84 Overcollateralization of Principal 1,472,825.82 353,628.81 1,826,454.63
================================================================
85 Base Overcollateralization Required 4,157,360.41
86 Required Overcollateralization Amount 4,157,360.41
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS 2A-2 OVERCOLLATERALIZATION RECONCILIATION
Beg.of Month Current Month End of Month
----------------------------------------------------------------
<S> <C> <C> <C> <C>
87 Initial Overcollateralization 2,308,107.29 355,004.65 2,663,111.94
88 Less: Realized Losses, LTD 0.00 0.00 0.00
89 Cross Coallateralzation Deposit, LTD 0.00 0.00 0.00
----------------------------------------------------------------
90 Overcollateralization of Principal 2,308,107.29 355,004.65 2,663,111.94
================================================================
90 Base Overcollateralization Required 7,088,832.49
91 Required Overcollateralization Amount 7,088,832.49
- ------------------------------------------------------------------------------------------------------------------------------------
CURRENT MONTH SUBORDINATED AMOUNT Beg.of Month Current Month End of Month
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
92 Original Group 2 Subordinated Amount 32,812,942.37 N/A 32,812,942.37
93 Less: Group 2 Cumulative Realized Losses 0.00 0.00 0.00
94 Plus: Group 2 Cumulative Additional Proceeds 0.00 0.00 0.00
-----------------------------------------------------------------
95 Current Group 2 Subordinated Amount 32,812,942.37 0.00 32,812,942.37
=================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PAGE 4 OF 4
ALLIANCE FUNDING
BY SUPERIOR BANK FSB - SERVICING DIVISION
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1998-3 GROUP 2 (SUB-POOLS 3 & 4)
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF SEPTEMBER 1, 1998
SUPERIOR BANK FSB - SERVICING DIVISION REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1998-3 GROUP 2 FOR NOVEMBER 25, 1998, THE REMITTANCE DATE.
DUE PERIOD ENDED: NOVEMBER 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
NONRECOVERABLE ADVANCE RECONCILIATION GROUP 2
------------------------------------- --------------
<S> <C> <C>
96 Beginning of Month 0.00
97 Current Month Unpaid Nonrecoverable Advance 0.00
98 Less: Current Month Reimbursement 0.00
--------------
99 End of Month 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS FACTORS GROUP 2 CLASS 2A-1 CLASS 2A-2
------------- -------------- ------------ ---------------
<S> <C> <C> <C> <C>
100 Total Class Principal - Original Pool 211,000,000.00 78,000,000.00 133,000,000.00
101 Interest Remittance Amount 957,572.97 352,884.23 604,688.74
102 Interest Rate Factor / 1000 4.538261 4.524157 4.546532
103 Total Principal Collections 1,510,811.20 753,938.96 756,872.24
104 Prefunding Account Excess 0.00 0.00 0.00
105 Additional Principal Reduction 708,633.46 353,628.81 355,004.65
-------------- ------------- --------------
106 Principal Remittance Amount 2,219,444.66 1,107,567.77 1,111,876.89
107 Principal Payment Factor/1000 10.518695 14.199587 8.359977
108 Current Month Ending Principal Factor 984.043110 978.415340 987.343606
109 Prior Month Principal Factor 994.561805 992.614927 995.703583
</TABLE>
