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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 June 1, 1998, providing for the issuance of AFC Mortgage Loan Asset
Backed Certificates, Series 1998-2)
SUPERIOR BANK FSB
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(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
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<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 1998-2, issued pursuant to a Pooling and Servicing
Agreement, dated as of June 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.
ALLIANCE FUNDING COMPANY
by SUPERIOR BANK - FSB SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-2 Group 1
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as
of June 1, 1998 Superior Bank - FSB Servicing Division reports the following
information pertaining to Series 1998-2 Group 1
for November 25, 1998, the Remittance date.
Due period ended: November 1, 1998
- --------------------------------------------------------------------------------
1 Total Actual Principal Collections 2,835,473.03
2 Total Actual Interest Collections 2,188,515.79
3 Less Service Fees Service Fees Previously Remitted 133,740.33
4 Additional Proceeds 0.00
------------
5 Total Collections: 4,890,248.49
6 Pre-Funding Account Transfer 0.00
7 Interest Coverage Account Transfer 223.03
------------
8 Aggregate Amount Received: 4,890,471.52
Monthly Advances
9 Interest Advance 108,186.98
10 Compensating Interest 10,608.10
11 Amounts Held for Future Distributions 0.00
12 Cross Collateral Deposit 0.00
13 Reserve Withdrawal per Sec. 6.14c 0.00
------------
14 Available Remittance Amount: 5,009,266.60
15 Service Fees 0.00
16 Expense Account Deposit: 2,090.61
------------
17 Adjusted Remittance Amount: 5,007,175.99
Remaining Amount Available:
18 Adjusted Remittance Amount 5,007,175.99
19 Insured Payments 0.00
20 Monthly Premium @ 12 bp
due Certificate Insurer 25,087.37
21 Cross Collateral Withdrawal 0.00
22 Class Remittance Amounts 4,982,088.62
23 Non-Recoverable Advances not
Previously Reimbursed 0.00
------------
Total Remaining Amount Available: 0.00
============
Amount of Reimbursements Pursuant to Sec. 5.04
24 Servicing Fee 0.00
25 Monthly Advances and Servicer Advances 0.00
26 Other Mortgage Payments 0.00
27 Interest Earned on P&I Deposits 0.00
28 Additional Servicing Compensation 0.00
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Page 1 of 4
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
by SUPERIOR BANK - FSB SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-2 Group 1
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of June 1, 1998
Superior Bank - FSB Servicing Division reports the following
information pertaining to Series 1998-2 Group 1 for November 25, 1998, the Remittance date.
Due period ended: November 1, 1998
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Total Class 1A Class R
<S> <C> <C> <C>
29 Loans Outstanding - BOM 4015
30 Original Loan Balance 260,198,909.55 260,198,909.55
31 Pre-Funding Account Balance 0.00 0.00
32 Initial Overcollateralization 6,489,695.72 6,489,695.72
33 Realized Losses, LTD 0.00 0.00
34 Carryforward Amount 0.00
35 Aggregate Unpaid Principal Balance of Delinquent 0.00
Loans Repurchased per Sec. 5.11 0.00 0.00
----------------------------------------------------------------
36 Total Class Principal Balance 253,709,213.83 253,709,213.83
37 Pool Factor per Loan Balance 97.8191389% 97.8191389%
38 Pool Factor per Class Balance 95.3794037% 95.3794037%
39 Excess Spread 0.00 0.00
40 Cross Collateral Withdrawal 0.00 0.00
41 Cross Collateral Deposit 0.00 0.00
42 Additional Principal due Class A 1,000,826.72 1,000,826.72
43 Interest Remittance @ Pass-Through Rates 1,145,788.87 1,145,788.87
PRINCIPAL ADDITIONS:
44 Number of loans 0 0
45 Transfers from Pre-Funding Account 0.00 0.00
PRINCIPAL DECUTIONS:
46 Class 1A-5 Lockout Remittance 0.00
47 Prepayments - Number 38 38
48 Prepayments - Dollar 2,521,675.89 2,521,675.89
49 Delinquent Loans Repurchased - Number 0 0.00
50 Delinquent Loans Repurchased - Dollar 0.00 0.00
51 Net Liquidation Proceeds 0.00 0.00
52 Curtailments 18,000.00 18,000.00
53 Normal and Excess Payments 295,797.14 295,797.14
54 Pre-Funding Account Transfer 0.00 0.00
----------------------------------------------------------------
55 Total Principal Remittance 2,835,473.03 2,835,473.03
56 Additional Principal Reduction 1,000,826.72 1,000,826.72
----------------------------------------------------------------
57 Total Remittance 4,982,088.62 4,982,088.62 0.00
================================================================
58 Current Month Realized Loss - Number 0 0
59 Current Month Realized Loss - Dollar 0.00 .00
CLASS PRINCIPAL BALANCE - EOM
60 Loans Outstanding - EOM 3977
61 Closing Loan Balance 257,363,436.52 257,363,436.52
62 Pre-Funding Account Balance 0.00 0.00
63 Additional Principal Reduction, LTD 7,490,522.44 7,490,522.44
64 Realized losses, LTD 0.00 0.00
65 Aggregate Unpaid Principal Balance of Delinquent
66 Loans Repurchased per Sec. 5.11 0.00 0.00
----------------------------------------------------------------
67 Total Class Principal Balance 249,872,914.08 249,872,914.08
68 Pool Factor per Loan Balance 96.7531716% 96.7531716%
69 Pool Factor per Class Balance 93.9371857% 93.9371857%
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Page 2 of 4
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
by SUPERIOR BANK - FSB SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-2 Group 1
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of June 1, 1998
Superior Bank - FSB Servicing Division reports the following
information pertaining to Series 1998-2 Group 1 for November 25, 1998, the Remittance date.
Due period ended: November 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Total Class A-1
70 Weighted Note Rate - THIS Remittance 10.67563%
71 Weighted Note Rate - NEXT Remittance 10.67909%
72 Related Remittance Period for Libor Rate 26-Oct-98 thru 24-Nov-98
73 Days in Related Period 30
74 Pass-Through Rates 5.41938%
75 Weighted Average Remaining Term 233.55
76 Original Pool - Principal Balance 168,503,688.56 168,503,688.56
77 Original Pool - Pre-Funding Account 100,454,855.42 100,454,855.42
78 Original Pool - Additional Principal Reduction 2,958,543.98 2,958,543.98
-------------------------------------------------------------------
79 Original Pool Total 266,000,000.00 266,000,000.00
80 Original Pool - Number of Loans 2573
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CLASS A OVERCOLLATERALIZATION RECONCILIATION
---------------------------------------------
Beg.of Month Current Month End of Month
------------------------------------------------------------------
81 Additional Principal Reduction, LTD 6,489,695.72 1,000,826.72 7,490,522.44
82 Cross Collateral Deposits 0.00 0.00 0.00
83 Less: Realized Losses, LTD 0.00 0.00 0.00
------------------------------------------------------------------
84 Overcollateralization of Principal 6,489,695.72 1,000,826.72 7,490,522.44
==================================================================
85 Base Overcollateralization Required 16,675,429.73
86 Required Overcollateralization Amount 16,675,429.73
CURRENT MONTH SUBORDINATED AMOUNT Beg.of Month Current Month End of Month
--------------------------------- ------------------------------------------------------------------
87 Original Subordinated Amount 32,812,942.37 N/A 32,812,942.37
88 Less: Cumulative Realized Losses 0.00 0.00 0.00
89 Plus: Cumulative Additional Proceeds 0.00 0.00 0.00
------------------------------------------------------------------
90 Current Subordinated Amount 32,812,942.37 32,812,942.37
==================================================================
NONRECOVERABLE ADVANCE RECONCILIATION
-------------------------------------
91 Beginning of Month 0.00
92 Current Month Unpaid Nonrecoverable Advance 0.00
93 Less: Current Month Reimbursement 0.00
---
94 End of Month 0.00
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Page 3 of 4
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
by SUPERIOR BANK - FSB SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-2 Group 1
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of June 1, 1998
Superior Bank - FSB Servicing Division reports the following
information pertaining to Series 1998-2 Group 1 for November 25, 1998, the Remittance date.
Due period ended: November 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS
TOTAL A1
----------------------------------------
<S> <C> <C>
95 Total Class Principal - Original Pool $266,000,000.00 $266,000,000.00
96 Interest Remittance Amount 1,145,788.87 1,145,788.87
97 Interest Rate Factor / 1000 4.307477 4.307477
98 Total Principal Collections 2,835,473.03 2,835,473.03
99 Prefunding Account Transfer 0.00 0.00
100 Additional Principal Reduction 1,000,826.72 1,000,826.72
---------------------------------------
101 Principal Remittance Amount 3,836,299.75 3,836,299.75
102 Principal Payment Factor/1000 14.422180 14.422180
103 Principal Factor 939.371856 939.371856
104 Prior Month Principal Factor 953.794036 953.794036
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 4 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
by SUPERIOR BANK - FSB SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-2 Group 2
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as
of June 1, 1998 and the Insurance Agreement dated as of June 25, 1998,
Superior Bank - FSB Servicing Division reports the following
information pertaining to Series 1998-2 Group 2
for November 25, 1998, the Remittance date.
Period Ended: November 1, 1998
- --------------------------------------------------------------------------------
1 Total Actual Principal Collections 3,246,254.47
2 Total Actual Interest Collections 1,556,493.71
3 Less: Service Fees Previously Remitted 99,089.45
4 Additional Proceeds 0.00
------------------
5 Total Collections: 4,703,658.73
6 Pre-Funding Account Transfer 0.00
7 Interest Coverage Account Transfer 0.00
------------------
8 Aggregate Amount Received: 4,703,658.73
Monthly Advance
9 Interest Advance 110,164.79
10 Compensating Interest 12,291.87
11 Amounts Held for Future Distributions 0.00
12 Reserve Withdrawal Per Sec. 6.08 VII 0.00
------------------
13 Available Remittance Amount: 4,826,115.39
14 Less: Service Fees 0.00
15 Less: Expense Account Deposit 1,557.72
16 Cross Collateral Deposit 0.00
------------------
17 Adjusted Remittance Amount: 4,824,557.67
Remaining Amount Available:
18 Adjusted Remittance Amount 4,824,557.67
19 Insured Payments 0.00
20 Monthly Premium @ 12 bp
due Certificate Insurer 18,692.60
21 Class Remittance Amounts 4,805,865.07
22 Cross Collateral Withdrawal 0.00
23 Non-Recoverable Advances not
Previously Reimbursed 0.00
------------------
24 Total Remaining Amount Available: 0.00
==================
Amount of Reimbursements Pursuant to Sec. 5.04
25 Servicing Fee 0.00
26 Monthly Advances and Servicer Advances 0.00
27 Other Mortgage Payments 0.00
28 Interest Earned on P&I Deposits 0.00
29 Additional Servicing Compensation 0.00
- --------------------------------------------------------------------------------
Page 1 of 4
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
by SUPERIOR BANK - FSB SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-2 Group 2
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of June 1, 1998
and the Insurance Agreement dated as of June 25, 1998, Superior Bank-FSB Servicing Division reports the following
information pertaining to Series 1998-2 Group 2 for November 25, 1998, the Remittance date.
Period Ended: November 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class 2-A Class R
----- ---------- -------
<S> <C> <C> <C>
30 Number of Loans 1797
31 Original Principal Balance 196,903,266.69 196,903,266.69
32 Original Pre-Funding Account Balance 0.00 0.00
33 Initial Overcollateralization 6,731,057.79 6,731,057.79
34 Realized Losses, LTD 0.00 0.00
35 Carryforward Amount 0.00 0.00
36 Aggregate Unpaid Principal Balance of Delinquent
Loans Repurchased per Sec. 5.11 0.00 0.00
---------------------------------------------------------------------
37 Opening Class Principal Balance 190,172,208.90 190,172,208.90
38 Pool Factor per Loan Balance 98.9463652% 98.9463652%
39 Pool Factor per Class Balance 100.0000000% 100.0000000%
40 Excess Spread 0.00 0.00
41 Additional Principal due Class A 708,688.22 708,688.22
42 Cross Collateral Deposit 0.00 0.00
43 Cross Collateral Withdrawal 0.00 0.00
44 Interest Remittance 850,922.38 850,922.38
45 Available Funds Cap Carry Forward 0.00 0.00
Distribution (see schedule C)
PRINCIPAL ADDITIONS:
46 Number of Loans 0
47 Transfers from Pre-Funding Account 0.00 0.00
PRINCIPAL REDUCTIONS:
48 Prepayments - Number 31 31
49 Prepayments - Dollar 2,987,766.65 2,987,766.65
50 Delinquent Loans Repurchased - Number 0 0
51 Delinquent Loans Repurchased - Dollar 0.00 0.00
52 Net Liquidation Proceeds 0.00 0.00
53 Curtailments 168,476.22 168,476.22
54 Normal and Excess Payments 90,011.60 90,011.60
55 Pre-Funding Account Transfer 0.00 0.00
---------------------------------------------------------------------
56 Total Principal Remittance 3,246,254.47 3,246,254.47
57 Additional Principal Reduction 708,688.22 708,688.22
---------------------------------------------------------------------
58 Total Remittance 4,805,865.07 4,805,865.07 0.00
=====================================================================
59 Carryforward Amount 0.00
60 Current Month Realized Loss - Number 0 0
61 Current Month Realized Loss - Dollar 0.00 0.00
CLASS PRINCIPAL BALANCE - EOM
62 Number of Loans # 1766
63 Closing Loan Balance 193,657,012.22 193,657,012.22
64 Pre-Funding Account Balance 0.00 0.00
65 Additional Principal Reduction, LTD 7,439,746.01 7,439,746.01
66 Realized Losses, LTD 0.00 0.00
67 Carryforward Amount 0.00 0.00
68 Aggregate Unpaid Principal Balance of Delinquent
Loans Repurchased per Sec. 5.11 0.00 0.00
---------------------------------------------------------------------
69 Closing Class Principal Balance 186,217,266.21 186,217,266.21
70 Pool Factor per Loan Balance 97.3150815% 97.3150815%
71 Pool Factor per Class Balance 93.5765157% 93.5765157%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2 of 4
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
by SUPERIOR BANK - FSB SERVICING DIVISION
Designated Servicer
SERVICERS CERTIFICATE
1998-2 Group 2
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of June 1, 1998
and the Insurance Agreement dated as of June 25, 1998, Superior Bank-FSB Servicing Division reports the following
information pertaining to Series 1998-2 Group 2 for November 25, 1998, the Remittance date.
Period Ended: November 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class A1
<S> <C> <C> <C>
72 Weighted Note Rate - This Remittance: 10.27078%
73 Weighted Note Rate - Next Remittance: 10.26682%
74 Available Cap Carry Foward Amount - This Remittance: 0.00
(see Schedule C)
75 Pass-Through Rate: 5.36938% 5.36938%
76 Related Remittance Period: 26-Oct-98 thru 24-Nov-98
77 Days in Related Period: 30
78 Weighted Average Remaining Term 353.05
79 Original Pool - Principal Balance 124,023,590.83 124,023,590.83
80 Original Pool - Pre-Funding Account Balance 79,228,918.11 79,228,918.11
81 Original Pool - Initial Overcollateralization 4,252,508.94 4,252,508.94
---------------------------------------------------------------------------
82 Original Pool - Class Principal Balance 199,000,000.00 199,000,000.00
83 Original Pool - Number of Loans 1135
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A OVERCOLLATERALIZATION RECONCILIATION
--------------------------------------------
Beginning of Month Current Month End of Month
---------------------------------------------------------------------------
84 Initial Overcollateralization 6,731,057.79 708,688.22 7,439,746.01
85 Cross Collateral Deposits, LTD 0.00 0.00 0.00
86 Less: Realized Losses, LTD 0.00 0.00 0.00
---------------------------------------------------------------------------
87 Overcollateralization of Principal 6,731,057.79 708,688.22 7,439,746.01
===========================================================================
88 Base Overcollateralization Requirement 12,195,150.54
89 Required Overcollateralization 12,195,150.54
CURRENT MONTH SUBORDINATED AMOUNT Beginning of Month Current Month End of Month
--------------------------------- ---------------------------------------------------------------------------
90 Original Subordinated Amount 26,422,826.16 N/A 26,422,826.16
91 Less: Cumulative Realized Losses 0.00 0.00 0.00
92 Plus: Cumulative Additional Proceeds 0.00 0.00 0.00
---------------------------------------------------------------------------
93 Current Subordinated Amount 26,422,826.16 26,422,826.16
===========================================================================
NONRECOVERABLE ADVANCE RECONCILIATION
--------------------------------------
94 Beginning of Month 0.00
95 Current Month Nonrecoverable Advance 0.00
96 Less: Current Month Reimbursment 0.00
-----------------
97 End of Month 0.00
=================
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3 of 4
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
by SUPERIOR BANK - FSB SERVICING DIVISION
Designated Servicer
SERVICE'S CERTIFICATE
1998-2 Group 2
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of June 1, 1998
and the Insurance Agreement dated as of June 25, 1998, Superior Bank-FSB Servicing Division reports the following
information pertaining to Series 1998-2 Group 2 for November 25, 1998, the Remittance date.
Period Ended: November 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
Class
A1
----------------------------------------
<S> <C> <C> <C>
98 Total Class Principal - Original Pool $199,000,000.00 $199,000,000.00
99 Interest Remittance Amount 850,922.38 850,922.38
100 Interest Rate Factor / 1000 4.275992 4.275992
101 Total Principal Collections 3,246,254.47 3,246,254.47
102 Prefunding Account Transfer 0.00 0.00
103 Additional Principal Reduction 708,688.22 708,688.22
----------------------------------------
104 Principal Remittance Amount 3,954,942.69 3,954,942.69
105 Principal Payment Factor/1000 19.874084 19.874084
106 Principal Factor 935.765157 935.765157
107 Prior Month Principal Factor 955.639241 955.639241
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 4 of 4
