-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UJqKfP8MBgx94v3eyN5ebg4pBWhz1XYY6XggNjoyFHvc8mkzcP7BcQbZO7edWEF2 OisTU0xhnAAyBDkTKap2gw== 0000950144-98-003968.txt : 19980401 0000950144-98-003968.hdr.sgml : 19980401 ACCESSION NUMBER: 0000950144-98-003968 CONFORMED SUBMISSION TYPE: 10-K405 PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980331 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERRILL LYNCH MORTGAGE INVESTORS INC CENTRAL INDEX KEY: 0000809940 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] IRS NUMBER: 133416059 STATE OF INCORPORATION: DE FISCAL YEAR END: 1228 FILING VALUES: FORM TYPE: 10-K405 SEC ACT: SEC FILE NUMBER: 333-38073 FILM NUMBER: 98584038 BUSINESS ADDRESS: STREET 1: WORLD FINANCIAL CENTER N TOWER STREET 2: 250 VESEY ST 17TH FL CITY: NEW YORK STATE: NY ZIP: 10281-1315 BUSINESS PHONE: 2124491000 MAIL ADDRESS: STREET 1: WORLD FINANCIAL CTR N TOWER STREET 2: 250 VESEY ST 17TH FL CITY: NEW YORK STATE: NY ZIP: 10281 10-K405 1 NOVASTAR HOME EQUITY 10-K405 12-31-97 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K FOR ANNUAL AND TRANSITION REPORTS PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1997 ----------------- [ ] 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 333-24327 --------- NovaStar Home Equity Loan Trust Series 1997-2 (Issuer in respect of the NovaStar Home Equity Loan Asset-Backed Bonds, Series 1997-2) ----------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware Applied for - ------------------------------- ------------------------------------ (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization c/o First Union National Bank, 230 S. Tryon Street 9th Floor, Charlotte, North Carolina 28288-1179 - -------------------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (704) 383-9568 Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 of 15(d) of the Securities Exchange Act of 1934 during the preceding 12 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 [ ] Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (Section 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X] 2 INTRODUCTORY NOTE The Registrant, NovaStar Home Equity Loan Trust Series 1997-2, was formed pursuant to that certain Amended and Restated Trust Agreement dated as of November 1, 1997, by and between Merrill Lynch Mortgage Investors, Inc. and Wilmington Trust Company, as Owner Trustee. The Registrant is the issuer of the NovaStar Home Equity Loan Asset-Backed Bonds Series 1997-2 (the "Bonds"), issued under an Indenture dated as of November 1, 1997 by and between the Registrant and First Union National Bank, as Indenture Trustee. This Form 10-K has been prepared with modified disclosure in accordance with past exemptions from the reporting requirements granted by the Securities and Exchange Commission under the Securities Exchange Act of 1934 for issuers substantially similar to the Registrant. Items designated herein as "Not Applicable" have been specifically omitted in reliance on such prior exemptions. B-2 3 PART I Item 1. Business Not Applicable. Item 2. Properties. Not Applicable. Item 3. Legal Proceedings. The Indenture Trustee is not aware of any material pending legal proceedings involving either the Registrant, the Indenture Trustee, the Owner Trustee or the Servicer with respect to the Bonds or the Registrant's property. Item 4. Submission of Matters to a Vote of Security Holders. No vote or consent of the holders of the Bonds was solicited for any purpose during the year ended December 31, 1997. PART II Item 5. Market for Registrant's Common Equity and Related Stockholder Matters. To the best knowledge of the Indenture Trustee, there is no established public trading market for the Bonds. As of the date hereof, Cede & Co., the nominee of the Depository Trust Company ("DTC"), was the only holder of record of the Bonds. DTC holds the Bonds for the accounts of others. Item 6. Selected Financial Data. Not Applicable. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation. Not Applicable. Item 7A. Quantitative and Qualitative Disclosures About Market Risks. Not Applicable. Item 8. Financial Statements and Supplementary Data. Not Applicable. Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. None. B-3 4 PART III Item 10. Directors and Executive Officers of the Registrant. Not Applicable. Item 11. Executive Compensation. Not Applicable. Item 12. Security Ownership of Certain Beneficial Owners and Management. The Indenture Trustee is not aware of any Schedule 13D or 13G filings with the Securities and Exchange Commission in respect of the Bonds. Item 13. Certain Relationships and Related Transactions. None or Not Applicable. PART IV Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K. (a) The following documents are filed as part of the report (1) Financial Statements Not Applicable. (2) Financial Statement Schedules Not Applicable. (b) The Registrant filed the following current reports on Form 8-K for the fourth quarter of 1997: Date of Reports Items Covered None (c) Exhibits*. 99.1 Annual Statement to Bondholders for the period ended December 31, 1997 99.2 Officer's Certificate of Servicer ----------------- * A copy of the annual report of independent public accountants with respect to the servicing of the Mortgage Loans by the Servicer shall be filed by Form 8-K at a later date. B-4 5 (d) Additional financial statements (1) Separate Financial Statements of subsidiaries not consolidated and fifty-percent-or-less persons. None. (2) Affiliates whose securities are pledged as collateral. None. (3) Schedules. None. B-5 6 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Indenture Trustee has duly caused this report to be signed on behalf of the Registrant by the undersigned, thereunto duly authorized. FIRST UNION NATIONAL BANK, as Indenture Trustee and on behalf of NovaStar Home Equity Loan Trust Series 1997-2 Dated: March 31, 1998 --------------------------- By: /s/ Robert Ashbaugh ------------------------------- Name: Robert Ashbaugh Title: Vice President B-6 7 INDEX OF EXHIBITS 99.1 Annual Statement to Bondholders for the period ended December 31, 1997 99.2 Officer's Certificate of Servicer B-7 EX-99.1 2 ANNUAL STATEMENT TO BONDHOLDERS 1 NOVASTAR HOME EQUITY LOAN ASSET-BACKED NOTES SERIES 1997-2 ANNUAL STATEMENT TO BONDHOLDER AS OF DECEMBER 31, 1997 - -------------------------------------------------------------------------------- From the Period December 1, 1997 (Date of Inception) to December 31, 1997 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- AGGREGATE COLLECTIONS FROM THE MORTGAGE LOANS - -------------------------------------------------------------------------------- Total Collections on Pool 3,198,943.79 Total Servicer Advances 0.00 Total Compensating Interest 0.00 - -------------------------------------------------------------------------------- AVAILABLE FUNDS CAP CARRY-FORWARD AMOUNT 0.00 AGGREGATE UNPAID AVAILABLE FUNDS CAP CARRY-FORWARD AMOUNT 0.00 AGGREGATE INSURED PAYMENTS PAID BY INSURER 0.00 AGGREGATE UNREIMBURSED INSURED AMOUNTS PAYABLE TO INSURER 0.00 AGGREGATE BEGINNING PRINCIPAL BALANCE OF MORTGAGE LOANS 222,574,961.00 AGGREGATE ENDING PRINCIPAL BALANCE OF MORTGAGE LOANS 220,837,645.52 REQUIRED SUBORDINATION AMOUNT 10,461,961.00 CURRENT SUBORDINATION AMOUNT 10,461,961.00 AGGREGATE SUBORDINATION INCREASE AMOUNT 0.00 AGGREGATE SUBORDINATION REDUCTION AMOUNT 0.00 AGGREGATE NET EXCESS CASHFLOW 959,563.84 AGGREGATE UNPAID ACCRUED INTEREST 0.00 AGGREGATE REALIZED LOSS ON MORTGAGE LOANS 0.00
DELINQUENCY INFORMATION DELINQUENT DELINQUENT DELINQUENT LOANS IN REO AT 12/31/97 30-59 DAYS 60-89 DAYS 90 + DAYS FORECLOSURE PROPERTY PRINCIPAL BALANCE 2,011,579.54 389,633.38 66,774.16 0.00 0.00 NUMBER OF LOANS 9 3 0 0 0
AGGREGATE REPURCHASE CURRENT CUMULATIVE INFORMATION PERIOD PERIOD PRINCIPAL BALANCE 0.00 0.00 NUMBER OF LOANS 0 0
AGGREGATE PREPAYMENT INTEREST SHORTFALLS 0.00 AGGREGATE RELIEF ACT SHORTFALLS 0.00 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
AGGREGATE DISTRIBUTIONS IN DOLLARS CURRENT PRIOR CUMULATIVE PRINCIPAL ORIGINAL PRINCIPAL REALIZED DEFERRED BALANCE CLASS FACE VALUE BALANCE INTEREST PRINCIPAL TOTAL LOSSES INTEREST AT 12/31/1997 - ---------------------------------------------------------------------------------------------------------------------------------- BONDS 212,113,000.0 212,113,000.00 515,552.43 1,737,315.48 2,252,867.91 0.00 0.00 210,375,684.52 - ---------------------------------------------------------------------------------------------------------------------------------- TOTALS 212,113,000.0 212,113,000.00 515,552.43 1,737,315.48 2,252,867.91 0.00 0.00 210,375,684.52 - ---------------------------------------------------------------------------------------------------------------------------------- AVERAGE BOND INTEREST RATE 6.25000% MAXIMUM BOND INTEREST RATE 14.51% - ----------------------------------------------------------------------------------------------------------------------------------
EX-99.2 3 OFFICER'S CERTIFICATE OF SERVICER 1 Annual Officer's Certificate The undersigns certifies that he is a Senior Vice President of NovaStar Mortgage, Inc. a corporation organized under the laws of the State of Virginia ("NMI"), and that as such he is duly authorized to execute and deliver this certificate on behalf of NMI in connection with the Servicing Agreement dated as of November 1, 1997 (the "Agreement"), among NMI, NovaStar Financial, Inc. and First Union National Bank, as Indenture Trustee, and further certifies that a review of the activities of NMI and of its performance of its obligations has been made under his supervision and to the best of his knowledge, NMI has fulfilled its obligations under the Agreement. IN WITNESS WHEREOF, I have affixed hereto my signature this March 30, 1998. /s/ Christopher S. Miller -------------------------- Name: Christopher S. Miller Title: Senior Vice President -----END PRIVACY-ENHANCED MESSAGE-----