MERIT SECURITIES CORPORATION
Monthly Payment Report
Payment Statement
MERIT 7
Payment Date: 29-Jun-98
Reporting Month: May
<TABLE>
<CAPTION>
Class
Interest Beginning Interest Interest Principal Total Applied Ending
Class Rate Balance Accrual Payment Payment Distribution Losses Balance
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A-1 6.168440% $160,864,886.76 $826,904.50 $826,904.50 $8,469,310.10 $9,296,214.60 $0.00 $152,395,576.66
Class A-2 15.000000% $45,500,000.00 $568,750.00 $568,750.00 $0.00 $568,750.00 $0.00 $45,500,000.00
Class A-3 7.000000% $15,922,060.83 $92,878.69 $92,878.69 $1,127,281.01 $1,220,159.70 $0.00 $14,794,779.82
Class A-4 7.500000% $7,000,000.00 $43,750.00 $43,750.00 $0.00 $43,750.00 $0.00 $7,000,000.00
Class A-5 6.168440% $7,248,172.22 $37,258.26 $37,258.26 $318,922.09 $356,180.35 $0.00 $6,929,250.13
$236,535,119.81 $1,569,541.45 $1,569,541.45 $9,915,513.20 $11,485,054.65 $226,619,606.61
</TABLE>
Class CUSIP Priority PrincipalType Interest Type
Class A-1 589962AT6 Senior Sequential Floater
Class A-2 589962AU3 Senior Sequential Floater
Class A-3 589962AV1 Senior Sequential Fixed
Class A-4 589962AW9 Senior Sequential Fixed
Class A-5 589962AX7 Senior Sequential Floater
MERIT SECURITIES CORPORATION
Payments per Bond Denomination
MERIT 7
Payment Date: 29-Jun-98
Reporting Month: May
<TABLE>
<CAPTION>
Original Interest Interest Principal Remaining
Pct Integral Record Accrual Payment Payment Ending Principal
Class Original Balance Pool Denomination Date Factor Factor Factor Balance Factor
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A-1 $435,000,000.00 78.06% $1,000.00 31-May-98 1.90092989 1.90092989 19.46967839 $152,395,576.66 0.35033466
Class A-2 $45,500,000.00 8.17% $1,000.00 31-May-98 12.50000000 12.50000000 0.00000000 $45,500,000.00 1.00000000
Class A-3 $26,300,000.00 4.72% $1,000.00 31-May-98 3.53150913 3.53150913 42.86239582 $14,794,779.82 0.56253916
Class A-4 $7,000,000.00 1.26% $1,000.00 31-May-98 6.25000000 6.25000000 0.00000000 $7,000,000.00 1.00000000
Class A-5 $14,750,000.00 2.65% $1,000.00 31-May-98 2.52598373 2.52598373 21.62183661 $6,929,250.13 0.46977967
$528,550,000.00 $226,619,606.61
</TABLE>
MERIT SECURITIES CORPORATION
Funds Account Activity Report
MERIT 7
Payment Date: 29-Jun-98
Report Date: May
Collateral Proceeds Account
<TABLE>
<CAPTION>
Beginning Balance $0.00
Deposits Withdrawals
<S> <C> <C> <C>
Interest Net of Servicing Fee $1,933,298.47 Interest Payments $1,569,541.45
Principal $9,915,513.20 Principal Payments $9,915,513.20
Deposits From Reserve Fund $0.00 Surplus $339,206.56
Other Deposits $0.00 MBIA Fee $24,550.46
Total Deposit $11,848,811.67 Total Withdrawals $11,848,811.67
Ending Balance: $0.00
<FN>
Note: "Principal" and Interest Net of Servicing Fee" includes Advances on
Delinquencies
</FN>
</TABLE>
MERIT SECURITIES CORPORATION
Credit Enhancement Summary
MERIT 7
Payment Date: 29-Jun-98
Reporting Month May
Reserve Funds and Subordination
<TABLE>
<CAPTION>
Initial Coverage Beginning Coverage Adjustments Losses Insured Balance Ending Balance
Type
<S> <C> <C> <C> <C> <C>
Pool Over Collateralization 5.15%$28,702,601.63 10.07% $26,492,678.94 $246,921.41 $252,865,364.18 10.38%$26,245,757.53
</TABLE>
Surplus Summary
Class Total Distribution
Surplus $339,206.56
Delinquency Statistics
Current % of
# of Loans Balance Current Balance
30+ Days 105 $9,504,754 3.76%
60+ Days 37 $3,691,894 1.46%
90+ Days 49 $6,551,172 2.59%
Foreclosure 69 $10,544,851 4.17%
REO 50 $5,894,804 2.33%
Totals 310 $36,187,475 14.31%
Advances on Delinquencies $225,987.25
Non-Recoverable Advances on Delinquencies $0.00
