UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 333-1614
BENEFICIAL MORTGAGE CORPORATION
(Depositor and Master Servicer)
BENEFICIAL HOME EQUITY LOAN TRUST 1996-1
(Issuer in Respect of the Beneficial Home Equity Loan Asset Backed Certificates)
(Exact name of registrant as specified in its charter)
New York (Issuer) 11-3314368 (Issuer)
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
301 North Walnut Street
Wilmington, Delaware 19801
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (302) 425-2500
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding twelve months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days. Yes X No
The registrant is a trust with no common stock outstanding.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Beneficial Home Equity Trust 1996-1
Balance Sheet
September 30, 1996
ASSETS
Cash $ 0
Total Assets $ 0
OWNER'S BENEFICIAL INTEREST
Owner's Beneficial Interest $ 0
Total Owner's Beneficial Interest $ 0
See Notes to Financial Statements.
Beneficial Home Equity Trust 1996-1
Statement of Cash Flows
For the Period April 30, 1996 (date of formation)
to September 30, 1996
Cash Flow from Operating Activities:
Net Proceeds from Issuance of Beneficial Home Equity Loan
Asset Backed Certificates (including accrued interest) $1,201,345,000
Net Cash Flows Representing the Purchase of Mortgage
Loans (including accrued interest) (1,201,345,000)
Principal and Interest Payments Collected 223,919,786
Principal and Interest Payments Disbursed (223,919,786)
Net Increase in Cash 0
Cash Balance, Beginning of Period 0
Cash Balance, End of Period $ 0
See Notes to Financial Statements.
Beneficial Home Equity Trust 1996-1
Notes to Financial Statements
September 30, 1996
Note 1. Organization and Operations
Beneficial Home Equity Loan Trust 1996-1 (the "Trust")
is a trust established on April 30, 1996, under the laws of the
State of New York, pursuant to a Pooling and Servicing Agreement
dated as of April 1, 1996 (the "Pooling and Servicing Agreement"),
between Beneficial Mortgage Corporation (the "Master Servicer" and
"Depositor") and The Chase Manhattan Bank (National Association),
acting thereunder not in its individual capacity but solely as
trustee. The trust's only purposes are to hold a pool of Home
Equity Loans and to issue securities. The Securities consist of
one class of senior certificates (the "Class A Certificates") and
three classes of subordinated certificates (the "Class M
Certificates", the "Class B Certificates" and the "residual
certificates", respectively). All of the Certificates except the
residual certificates were offered and sold to the public. The
Certificates represent obligations solely of the Trust. The Trust
receives specified portions of payments received from the related
Home Equity Loans subsequent to March 31, 1996, as set forth in
the Pooling and Servicing Agreement.
The owners of the Certificates are the beneficial
owners of the Home Equity Loans. The value of the Certificates
issued by the Trust equaled the value of the Home Equity Loans
conveyed to the Trust by the Master Servicer and Depositor;
therefore, no assets or liabilities are reflected on the Trust's
balance sheet. Also, there was no income or expense or gain or
loss to the Trust resulting from the transaction; therefore, no
statement of income has been presented.
As of September 30, 1996, the Trust had an aggregate
unpaid certificate balance of $977,425,214.
Note 2. Income Taxes.
An election has been made to treat the Trust as a Real
Estate Mortgage Investment Conduit ("REMIC") for federal income
tax purposes. As such, the Trust will not be subject to federal,
state or local income taxes.
Beneficial Home Equity Loan Trust 1996-1
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
RESULTS OF OPERATIONS
On April 30, 1996, the Trust issued $1,072,200,000
aggregate principal amount of Class A Certificates having a pass-
through rate equaling the lessor of the London interbank offered
rate for one-month U.S. dollar deposits ("LIBOR") plus 18 basis
points and the weighted average of the Net Loan Rates (as defined
below); $66,074,000 aggregate principal amount of Class M
Certificate having a pass-through rate equaling the lessor of
LIBOR plus 28 basis points and the weighted average of the Net
Loan Rates; $63,071,000 aggregate principal amount of Class B
Certificates having a pass-through rate of the lessor of LIBOR
plus 25 basis points and the weighted average Net Loan Rates. The
Net Loan Rate is the rate of interest applicable to each Home
Equity Loan less the servicing fee. All Certificates represent an
undivided interest in the Trust which holds a pool of Home Equity
Loans. The sale of the Home Equity Loans to the Trust, the
issuance of the Certificates, and the simultaneous delivery of the
Certificates to the Master Servicer for sale by Morgan Stanley &
Co. Inc., Bear, Stearns & Co. Inc., J.P. Morgan & Co., Merrill
Lynch & Co., Salomon Brothers Inc., and UBS Securities LLC.
pursuant to a public offering have been accounted for as a sale of
Home Equity Loans by the Master Servicer and Depositor. The value
of the Certificates issued by the Trust equaled the value of the
Home Equity Loans conveyed to the Trust by the Master Servicer and
Depositor. Accordingly, there was no income, expense, or gain or
loss resulting to the Trust from the aforementioned transaction.
CHANGES IN CASH FLOW
The Trust's primary sources of funds with respect to
the Certificates are receipts of interest and principal on the
Home Equity Loans, along with certain insurance proceeds, certain
proceeds obtained from Liquidated Home Equity Loans and any
investment income earned thereon, if any. The management of the
Master Servicer believes that the Trust will have sufficient
liquidity and capital resources to pay all amounts of the
Certificates as they become due and all other anticipated expenses
of the Trust. The Trust does not have, nor will it have in the
future, any significant source of capital for payment of the
Certificates other than the receipt of interest and principal from
the Home Equity Loans. The Trust is a limited purpose Trust.
The Certificates represent obligations solely of the Trust.
Beneficial Home Equity Loan Trust 1996-1
PART II. OTHER INFORMATION
Item 6 Exhibits and Reports on Form 8-K.
(a) Exhibits
* 20.1 Beneficial Home Equity Loan Asset Backed Certificates,
Series 1996-1 Statement to Certificateholders, dated
October 28, 1996.
20.2 Beneficial Home Equity Loan Asset Backed Certificates,
Series 1996-1 Statement to Certificateholders, dated
September 30, 1996, is incorporated by reference to Exhibit
20.1 of the Form 8-K dated September 30, 1996.
20.3 Beneficial Home Equity Loan Asset Backed Certificates,
Series 1996-1 Statement to Certificateholders, dated
August 28, 1996, is incorporated by reference to Exhibit
20.1 of the Form 8-K dated August 28, 1996.
(b) The Trust filed the following report on Form 8-K during the period
covered by this Form 10-Q:
1) A report on Form 8-K, dated August 28, 1996, relating to the
Beneficial Home Equity Loan Asset Backed Certificates, Series
1996-1 Statement to Certificateholders, dated August 28, 1996.
2) A report on Form 8-K, dated September 30, 1996, relating to the
Beneficial Home Equity Loan Asset Backed Certificates, Series
1996-1 Statement to Certificateholders, dated September 30, 1996.
* Filed herewith.
Beneficial Home Equity Loan Trust 1996-1
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on behalf of Beneficial Home Equity Loan
Trust 1996-1 by the undersigned, thereunto duly authorized.
BENEFICIAL HOME EQUITY LOAN TRUST 1996-1
Registrant
By: Beneficial Mortgage Corporation
(Depositor and Master Servicer)
By: /s/ Richard J. Zak
Richard J. Zak
Vice President (Chief Accounting
Officer)
November 13, 1996
Beneficial Home Equity Loan Trust 1996-1
Exhibit Index
Exhibit
Number Exhibit
20.1 * Beneficial Home Equity Loan Asset Backed Certificates,
Series 1996-1 Statement to Certificateholders, dated
October 28, 1996.
20.2 Beneficial Home Equity Loan Asset Backed Certificates,
Series 1996-1 Statement to Certificateholders, dated,
September 30 1996, is incorporated by reference to
Exhibit 20.1 of the Form 8-K, dated September 30, 1996.
20.3 Beneficial Home Equity Loan Asset Backed Certificates,
Series 1996-1 Statement to Certificateholders, dated
August 28, 1996, is incorporated by reference to
Exhibit 20.1 of the Form 8-K, dated August 28, 1996
* Filed herewith.
Exhibit 20.1
STATEMENT TO CERTIFICATEHOLDERS
Beneficial Mortgage Corp Current Collection Period 28-Aug-96 to 27-Sep-96
Beneficial Home Equity Loan Asset Backed Certificates P&S Agreement 01-Apr-96
Class A Certificates, Series 1996-1
Class M Certificates, Series 1996-1 Original Settlement Date 30-Apr-96
Class B Certificates, Series 1996-1 Distribution Date 28-Oct-96
1 Month LIBOR 5.4375%
Class A Pass-Through Rate (1 mo LIBOR + 18 bps) 5.6175%
Class M Pass-Through Rate (1 mo LIBOR + 28 bps) 5.7175%
Class B Pass-Through Rate (1 mo LIBOR + 25 bps) 5.6875%
Distribution to Holders of Class A Certificates (per Certificate with a
$1,000 denomination)
1 i. Amount Allocable to Class A Principal 31.805731
ii. Amount Allocable to Unpaid Class A Principal Shortfall 0.000000
iii. Remaining Unpaid Class A Principal Shortfall After
Such Distribution 0.000000
2 i. Amount Allocable to Class A Interest 3.686948
ii. Amount Allocable to Class A Carryover Interest
Shortfall 0.000000
iii. Amount Allocable to Unpaid Class A Interest 0.000000
iv. Remaining Unpaid Class A Interest Shortfall After
Such Distribution 0.000000
3 i. Amount of Class A Principal Shortfall For Such
Distribution Date 0.000000
ii. Amount of Class A Interest Shortfall For Such
Distribution Date 0.000000
Distribution to Holders of Class M Certificates (per Certificate with a
$1,000 denomination)
4 i. Amount Allocable to Class M Principal 0.000000
ii. Amount Allocable to Unpaid Class M Principal Shortfall 0.000000
iii. Remaining Unpaid Class M Principal Shortfall After
Such Distribution 0.000000
5 i. Amount Allocable to Class M Interest 4.446944
ii. Amount Allocable to Class M Carryover Interest
Shortfall 0.000000
iii. Amount Allocable to Unpaid Class M Interest Shortfall 0.000000
iv. Remaining Unpaid Class M Interest Shortfall After
Such Distribution 0.000000
6 i. Amount of Class M Principal Shortfall For Such
Distribution Date 0.000000
ii. Amount of Class M Interest Shortfall For Such
Distribution Date 0.000000
Distribution to Holders of Class B Certificates (per Certificate with a
$1,000 denomination)
7 i. Amount Allocable to Class B Principal 54.643593
ii. Amount Allocable to Unpaid Class B Principal Shortfall 0.000000
iii. Remaining Unpaid Class B Principal Shortfall After
Such Distribution 0.000000
8 i. Amount Allocable to Class B Interest 3.094254
ii. Amount Allocable to Class B Carryover Interest
Shortfall 0.000000
iii. Amount Allocable to Unpaid Class B Interest Shortfall 0.000000
iv. Remaining Unpaid Class B Interest Shortfall After
Such Distribution 0.000000
9 i. Amount of Class B Principal Shortfall For Such
Distribution Date 0.000000
ii. Amount of Class B Interest Shortfall For Such
Distribution Date 0.000000
10 Ending Class A Principal Balance 870,680,354.07
11 Ending Class A Principal Factor 81.2050321%
12 Ending Class M Principal Balance 66,074,000.00
13 Ending Class M Principal Factor 100.0000000%
14 Ending Class B Principal Balance 40,670,860.40
15 Ending Class B Principal Factor 64.4842485%
16 i. Ending Pool Number of Loans 19,216
ii. Ending Pool Balance 999,825,719.77
17 i. Number of Mortgage Loans 30 to 59 Days Delinquent 937
ii. Aggregate Principal Balances of Mortgage Loans
30 to 59 Days Delinquent 55,337,024.89
iii. Number of Mortgage Loans 60 or More Days Delinquent 285
iv. Aggregate Principal Balances of Mortgage Loans
60 or More Days Delinquent 22,472,261.87
18 Book Value of Real Estate Aquired Through
Foreclosure or Grant of a Deed 1,422,169.49
