- --------------------------------------------------------------------------------
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 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 December 28, 1998 (a "Remittance Date") a scheduled remittance was made
to the Certificateholders with respect to AFC Mortgage Loan Asset Backed
Certificates, Series 1998-3, 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 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 INDEX
Exhibit No. Description
- ----------- -----------
21.1 Monthly Remittance Report for the month of December, 1998.
PAGE 1 OF 4
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 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 1,806,023.90 465,014.05 1,341,009.85
2 Total Actual Interest Collections 1,513,577.33 355,551.89 1,158,025.44
3 Service Fees Previously Remitted 103,262.14 22,333.97 80,928.17
4 Additional Proceeds 0.00 0.00 0.00
---------------- ------------- --------------
5 TOTAL COLLECTIONS: 3,216,339.09 798,231.97 2,418,107.12
6 Pre-Funding Account Transfers 15,149.01 961.64 14,187.37
7 Interest Coverage Account Transfer 239,891.05 8.33 239,882.72
8 Deferred Interest Coverage Account Transfer 11,033.10 1,616.33 9,416.77
---------------- ------------- --------------
9 AGGREGATE AMOUNT RECEIVED: 3,482,412.25 800,818.27 2,681,593.98
MONTHLY ADVANCES
10 Delinquent Interest Advance 310,188.14 80,398.39 229,789.75
11 Compensating Interest 5,870.15 1,673.20 4,196.95
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: 3,798,470.54 882,889.86 2,915,580.68
FEES
16 Service Fees 6,214.03 0.00 6,214.03
17 Expense Account Deposit: 1,954.71 417.47 1,537.24
---------------- ------------- --------------
18 ADJUSTED REMITTANCE AMOUNT: 3,790,301.80 882,472.39 2,907,829.41
REMAINING AMOUNT AVAILABLE:
19 Adjusted Remittance Amount 3,790,301.80
20 Insured Payments due 0.00
21 Monthly Insurance Premium @ 12 bp
the Ending Principal Balance 23,456.54
22 Cross Collateral Withdrawal 0.00
23 Class Remittance Amounts 3,766,845.26
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>
PAGE 2 OF 4
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 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 3,257 756 2,501
33 Original Loan Balance 204,492,973.65 51,335,048.96 153,157,924.69
34 Pre-Funding Account Balance 35,856,358.35 961.64 35,855,396.71
35 Initial Overcollateralization 3,962,787.49 774,031.05 3,188,756.44
36 Realized Losses, LTD 0.00 0.00 0.00
37 Carryforward Amount 0.00 0.00 0.00
---------------------------------------------------
38 Total Class Principal Balance 236,386,544.51 50,561,979.55 185,824,564.96
39 Pool Factor per Loan Balance 85.5619137% 21.4791000% 64.0828137%
40 Pool Factor per Class Balance 98.9065040% 21.1556400% 77.7508640%
41 Excess Spread 0.00 0.00
42 Principal Collection Factor 100.0000000% 25.7479455% 74.2520545%
43 Additional Principal due 784,182.90 201,910.99 582,271.91
44 Cross Collateral Withdrawal 0.00 0.00
45 Cross Collateral Deposit 0.00 0.00 0.00
46 Interest Remittance @ Pass-Through Rate 1,161,489.45 248,072.83 913,416.62
PRINCIPAL ADDITIONS:
47 Number 517 0 517
48 Loan transfers from Pre-Funding 31,624,417.84 0.00 31,624,417.84
PRINCIPAL REDUCTIONS:
49 Prepayments - Number 34 6 28
50 Prepayments - Dollar 1,493,956.87 326,776.68 1,167,180.19
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 101,563.62 100,589.68 973.94
55 Normal and Excess Payments 210,503.41 37,647.69 172,855.72
------------------------------------------------------------------------------
56 Principal Remittance 1,806,023.90 465,014.05 1,341,009.85
------------------------------------------------------------------------------
57 Total Principal Remittance 1,821,172.91 465,975.69 1,355,197.22
58 Additional Principal Reduction 784,182.90 201,910.99 582,271.91
------------------------------------------------------------------------------
59 TOTAL REMITTANCE 3,766,845.26 915,959.51 2,850,885.75 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 3740 750 2990
63 Closing Loan Balance 234,311,367.59 50,870,034.91 183,441,332.68
64 Pre-Funding Account Balance 4,216,791.50 0.00 4,216,791.50
65 Additional Principal Reduction, LTD 4,746,970.39 975,942.03 3,771,028.36
66 Realized Losses, LTD 0.00 0.00 0.00
------------------------------------------------------------------------------
67 Total Class Principal Balance 233,781,188.70 49,894,092.88 183,887,095.82
68 Pool Factor per Loan Balance 98.0382291% 21.2845334% 76.7536957%
69 Pool Factor per Class Balance 381.4391225% 20.8761895% 360.5629330%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
PAGE 3 OF 4
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 DECEMBER 28, 1998,
THE REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
<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 244.79 269.60 237.91
73 Accrual Period for Libor Rate 25-Nov-98 thru 27-Dec-98
74 Days in Related Period 33
75 Pass-Through Rate 5.35234% 5.36234%
<CAPTION>
GROUP 1 SUBPOOL 1 SUBPOOL 2
---------------- ------------- --------------
<S> <C> <C> <C>
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
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS 1A-1 OVERCOLLATERALIZATION RECONCILIATION
Beg. of Month Current Month End of Month
---------------------------------------------------
<S> <C> <C> <C>
81 Initial Overcollateralization 774,031.05 201,910.99 975,942.03
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 774,031.05 201,910.99 975,942.03
===================================================
85 Base Overcollateralization Required* 3,013,636.36
86 Required Overcollateralization Amount 3,013,636.36
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS 1A-2 OVERCOLLATERALIZATION RECONCILIATION
Beg.of Month Current Month End of Month
---------------------------------------------------
<S> <C> <C> <C>
87 Initial Overcollateralization 3,188,756.44 582,271.91 3,771,028.36
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 3,188,756.44 582,271.91 3,771,028.36
===================================================
90 Base Overcollateralization Required* 11,109,090.91
91 Required Overcollateralization Amount 11,109,090.91
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
---------------------------------------------------
CURRENT MONTH SUBORDINATED AMOUNT Beg.of Month Current Month End of Month
---------------------------------------------------
<S> <C> <C> <C>
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>
PAGE 4 OF 4
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 DECEMBER 28, 1998,
THE REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
NONRECOVERABLE ADVANCE RECONCILIATION GROUP 1
----------------
<S> <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 1 CLASS 1A-1 CLASS 1A-2
---------------- ------------- --------------
<S> <C> <C> <C>
100 Total Class Principal - Original Pool 239,000,000.00 51,000,000.00 188,000,000.00
101 Interest Remittance Amount 1,161,489.45 248,072.83 913,416.62
102 Interest Rate Factor / 1000 4.859788 4.864173 4.858599
103 Total Principal Collections 1,806,023.90 465,014.05 1,341,009.85
104 Prefunding Account Excess 15,149.01 961.64 14,187.37
105 Additional Principal Reduction 784,182.90 201,910.99 582,271.91
---------------- ------------- --------------
106 Principal Remittance Amount 2,605,355.81 667,886.68 1,937,469.13
107 Principal Payment Factor/1000 10.901070 13.095817 10.305687
108 Current Month Ending Principal Factor 978.163969 978.315546 978.122850
109 Prior Month Principal Factor 989.065039 991.411363 988.428537
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
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 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 1,876,844.56 1,081,244.50 795,600.06
2 Total Actual Interest Collections 1,142,495.97 458,180.96 684,315.01
3 Service Fees Previously Remitted 76,512.72 29,868.05 46,644.67
4 Additional Proceeds 0.00 0.00 0.00
---------------- ------------- --------------
5 TOTAL COLLECTIONS: 2,942,827.81 1,509,557.41 1,433,270.40
6 Pre-Funding Account Transfers 16,197.76 108.69 16,089.07
7 Interest Coverage Account Transfer 300,358.92 0.91 300,358.01
8 Deferred Interest Coverage Account Transfer 8,788.85 4,757.07 4,031.78
---------------- ------------- --------------
9 AGGREGATE AMOUNT RECEIVED: 3,268,173.34 1,514,424.08 1,753,749.26
MONTHLY ADVANCES
10 Delinquent Interest Advance 310,612.54 180,290.99 130,321.55
11 Compensating Interest 7,304.97 3,830.03 3,474.94
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: 3,586,090.85 1,698,545.10 1,887,545.75
FEES
16 Service Fees 16,854.58 0.00 16,854.58
17 Expense Account Deposit: 1,714.50 626.96 1,087.54
---------------- ------------- --------------
18 ADJUSTED REMITTANCE AMOUNT: 3,567,521.77 1,697,918.14 1,869,603.63
REMAINING AMOUNT AVAILABLE:
19 Adjusted Remittance Amount 3,567,521.77
20 Insured Payments due 0.00
21 Monthly Insurance Premium @ 12 bp
the Ending Principal Balance 20,574.01
22 Cross Collateral Withdrawal 0.00
23 Class Remittance Amounts 3,546,947.76
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>
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 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>
32 Loans Outstanding - BOM 1,513 776 737
33 Original Loan Balance 168,560,132.60 78,142,742.49 90,417,390.11
34 Pre-Funding Account Balance 43,562,530.13 108.69 43,562,421.44
35 Initial Overcollateralization 4,489,566.57 1,826,454.63 2,663,111.94
36 Realized Losses, LTD 0.00 0.00 0.00
37 Carryforward Amount 0.00 0.00 0.00
---------------------------------------------------
38 Total Class Principal Balance 207,633,096.16 76,316,396.55 131,316,699.61
39 Pool Factor per Loan Balance 79.8863188% 37.0344751% 42.8518437%
40 Pool Factor per Class Balance 98.4043110% 36.1689083% 62.2354027%
41 Excess Spread 0.00 0.00
42 Principal Collection Factor 100.0000000% 57.6096989% 42.3903011%
43 Additional Principal due 645,408.85 371,818.10 273,590.75
44 Cross Collateral Withdrawal 0.00 0.00
45 Cross Collateral Deposit 0.00 0.00 0.00
46 Interest Remittance @ Pass-Through Rate 1,008,496.59 370,234.62 638,261.97
PRINCIPAL ADDITIONS:
47 Number 274 0 274
48 Loan transfers from Pre-Funding 29,809,914.58 0.00 29,809,914.58
PRINCIPAL REDUCTIONS:
49 Prepayments - Number 15 8 7
50 Prepayments - Dollar 1,799,045.04 1,045,086.99 753,958.05
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 77,799.52 36,157.51 41,642.01
----------------------------------------------------------------------------
56 Principal Remittance 1,876,844.56 1,081,244.50 795,600.06
----------------------------------------------------------------------------
57 Total Principal Remittance 1,893,042.32 1,081,353.19 811,689.13
58 Additional Principal Reduction 645,408.85 371,818.10 273,590.75
----------------------------------------------------------------------------
59 TOTAL REMITTANCE 3,546,947.76 1,823,405.91 1,723,541.85 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 1772 768 1004
63 Closing Loan Balance 196,493,202.62 77,061,497.99 119,431,704.63
64 Pre-Funding Account Balance 13,736,417.79 0.00 13,736,417.79
65 Additional Principal Reduction, LTD 5,134,975.42 2,198,272.73 2,936,702.69
66 Realized Losses, LTD 0.00 0.00 0.00
----------------------------------------------------------------------------
67 Total Class Principal Balance 205,094,644.99 74,863,225.26 130,231,419.73
68 Pool Factor per Loan Balance 93.1247406% 36.5220370% 56.6027036%
69 Pool Factor per Class Balance 202.4435602% 35.4802016% 166.9633586%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
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 DECEMBER 28, 1998, THE REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
<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 355.07 356.32 354.27
73 Accrual Period for Libor Rate 25-Nov-98 thru 27-Dec-98
74 Days in Related Period 33
75 Pass-Through Rate 5.29234% 5.30234%
<CAPTION>
GROUP 2 SUBPOOL 3 SUBPOOL 4
---------------- ------------- --------------
<S> <C> <C> <C>
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>
81 Initial Overcollateralization 1,826,454.63 371,818.10 2,198,272.73
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 1,826,454.63 371,818.10 2,198,272.73
===================================================
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>
87 Initial Overcollateralization 2,663,111.94 273,590.75 2,936,702.69
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 2,663,111.94 273,590.75 2,936,702.69
===================================================
90 Base Overcollateralization Required 7,088,832.49
91 Required Overcollateralization Amount 7,088,832.49
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
---------------------------------------------------
CURRENT MONTH SUBORDINATED AMOUNT Beg.of Month Current Month End of Month
---------------------------------------------------
<S> <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>
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 DECEMBER 28, 1998, THE REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
NONRECOVERABLE ADVANCE RECONCILIATION GROUP 2
----------------
<S> <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>
100 Total Class Principal - Original Pool 211,000,000.00 78,000,000.00 133,000,000.00
101 Interest Remittance Amount 1,008,496.59 370,234.62 638,261.97
102 Interest Rate Factor / 1000 4.779605 4.746598 4.798962
103 Total Principal Collections 1,876,844.56 1,081,244.50 795,600.06
104 Prefunding Account Excess 16,197.76 108.69 16,089.07
105 Additional Principal Reduction 645,408.85 371,818.10 273,590.75
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106 Principal Remittance Amount 2,538,451.17 1,453,171.29 1,085,279.88
107 Principal Payment Factor/1000 12.030574 18.630401 8.159999
108 Current Month Ending Principal Factor 972.012536 959.784939 979.183607
109 Prior Month Principal Factor 984.043110 978.415340 987.343606
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</TABLE>
