MERIT SECURITIES CORPORATION
Monthly Payment Report
Payment Statement
MERIT 7
Payment Date: 28-Jul-98
Reporting Month: June
<TABLE>
<CAPTION>
Class
Interest Beginning Interest Interest Principal Total Applied
Class Rate Balance Accrual Payment Payment Distribution Losses Ending Balance
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A-1 6.176250% $152,395,576.66 $784,360.98 $784,360.98 $6,093,331.25 $6,877,692.23 $0.00 $146,302,245.41
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% $14,794,779.82 $86,302.88 $86,302.88 $563,074.18 $649,377.06 $0.00 $14,231,705.64
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 6.176250% $6,929,250.13 $35,663.98 $35,663.98 $265,895.07 $301,559.05 $0.00 $6,663,355.06
$226,619,606.61 1,518,827.84 $1,518,827.84 $6,922,300.50 $8,441,128.34 $0.00 $219,697,306.11
</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: 28-Jul-98
Reporting Month: June
<TABLE>
<CAPTION>
Interest Interest Principal Remaining
Original Integral Accrual Payment Payment Ending Principal
Class Original Balance Pct Pool Denomination Record 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 30-Jun-98 1.80312869 1.80312869 14.00765805 $146,302,245.41 0.33632700
Class A-2 $45,500,000.00 8.17% $1,000.00 30-Jun-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 30-Jun-98 3.28147833 3.28147833 21.40966464 $14,231,705.64 0.54112949
Class A-4 $7,000,000.00 1.26% $1,000.00 30-Jun-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 30-Jun-98 2.41789695 2.41789695 18.02678441 $6,663,355.06 0.45175289
$528,550,000.00 $219,697,306.11
</TABLE>
MERIT SECURITIES CORPORATION
Funds Account Activity Report
MERIT 7
Payment Date: 28-Jul-98
Report Date: June
Collateral Proceeds Account
<TABLE>
<CAPTION>
Beginning Balance $0.00
Deposits Withdrawals
<S> <C> <C> <C>
Interest Net of Servicing Fee $1,853,066.17 Interest Payments $1,518,827.84
Principal $7,546,496.42 Principal Payments $6,922,300.50
Deposits From Reserve Fund $0.00 Surplus $934,633.71
Other Deposits $0.00 MBIA Fee $23,800.54
Total Deposit $9,399,562.59 Total Withdrawals $9,399,562.59
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: 28-Jul-98
Reporting Month June
Reserve Funds and Subordination
<TABLE>
<CAPTION>
Initial Coverage Beginning Coverage Adjustments Losses Insured Balance Ending Balance
Type
<S> <C> <C> <C> <C> <C> <C>
Pool Over Collateralization 5.15% $28,702,601.63 10.38%$26,245,757.53($624,195.92)$394,334.70 $244,924,533.07 10.30%$25,227,226.91
</TABLE>
Surplus Summary
Class Total Distribution
Surplus $934,633.71
Delinquency Statistics
% of
# of Loans Current Balance Current Balance
30+ Days 64 $7,144,380 2.92%
60+ Days 24 $2,029,608 0.83%
90+ Days 41 $5,552,461 2.27%
Foreclosure 62 $9,575,595 3.91%
REO 48 $5,605,756 2.29%
Totals 239 $29,907,800 12.21%
Advances on Delinquencies $215,051.09
Non-Recoverable Advances on Delinquencies $0.00
1) Release of funds in excess of Target Overcollateralization Amount.
See Indenture, Prospectus and their respective Supplements for complete details
