-----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, NRMUGyRRYVmbxPPLEmZnnpwcM48ooPqi1RUIbgJChTQdEonyU3RgSMfo7TZYzlWI lFS0xC+GhBjpOCKzxQIinw== 0001064357-99-000003.txt : 19990407 0001064357-99-000003.hdr.sgml : 19990407 ACCESSION NUMBER: 0001064357-99-000003 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990406 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADVANTA MORTGAGE LOAN TRUST 1998-2 CENTRAL INDEX KEY: 0001064357 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: SEC FILE NUMBER: 033-99510-08 FILM NUMBER: 99587750 BUSINESS ADDRESS: STREET 1: 16875 WEST BERRADO DRIVE CITY: SAN DIEGO STATE: CA ZIP: 92127 BUSINESS PHONE: 6196741800 MAIL ADDRESS: STREET 1: C/O ADVANTA MORTGAGE CORP STREET 2: 10790 RANCHO BERNARDO ROAD CITY: SAN DIEGO STATE: CA ZIP: 92127 10-K 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K [X] ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) of THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the fiscal year ended December 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from________________to_______________. Commission file number '033-99510-08 ADVANTA Mortgage Loan Trust 1998-2 New York 33-0816529 (State of other jurisdictio (IRS Employer incorporation or organizat Identification No.) c/o Bankers Trust Company 4 Albany Street New York, NY 10015 Registrant's telephone number, including area code: (212) 250-2500 Securities registered pursuant to Section 12(b) of the Act. Title of each class Name of each exchange on which registered: None None Securities registered pursuant to Section 12(g) of the Act: None (Title of class) Indicated 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 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 ($ 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] State the aggregate market value of the voting stock held by non-affiliates of registrant. The aggregate market value shall be computed by reference to the price at which the stock was sold, or the average bid and asked prices of such stock, as of specified date within 60 days prior to the date of filing: $816,228,407.82 Documents Incorporated by Reference: Not Applicable PART 1 ITEM 1 - BUSINESS The ADVANTA Mortgage Loan Trust 1998-2, (the "Trust" or "Issuer") is a New York common law trust established as of June 1, 1998, pursuant to a Pooling and Servicing Agreement (the "Pooling and Servicing Agreement") between ADVANTA Mortgage Conduit Services, Inc. as sponsors (the "Sponsor") and ADVANTA Mortgage Corp. USA as Master Servicer (the "Master Servicer") (together, the "Companies") and Bankers Trust Company, acting thereunder not in its individual capacity but solely as trustee (the "Trustee"). The Issuer's only purpose is the issuance of $925,000,000.00 principal amount of ADVANTA Mortgage Loan Asset-Backed Certificates, Series 1998-2, Class A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class A-10, Class A-11, Class A-12, Class A-13, Class A-14, Class A-15, Class A-16, Class A-17, Class A-18, Class A-19, Class F-IO and Class A-IO (the "Certificates") and the subordinated residual certificates pursuant to the Pooling and Servicing Agreement. On June 22, 1998, the Sponsor sold $925,000,000.00 aggregate principal amount of mortgage loans (the "Mort- gage Loans"), to the Issuer in exchange for the Certificates, and sold the Certificates pursuant to a public offering, the underwriting of which was co-managed by Morgan Stanley Dean Witter, Lehamn Brothers and Prudential Securities Incorporated. The Mortgage Loans and the distributions thereon, along with certain insurance proceeds, certain proceeds obtained on foreclosure and any investment income earned thereon, are the only significant assets of the Issuer. The Certificates represent obligations solely of the Issuer. The Certificates were registered under a Registration Statement (file no. 333-37107) on Form S-3 declared effective on October 30, 1997. ITEM 2 - PROPERTIES The Issuer neither owns nor leases any physical properties. ITEM 3 - LEGAL PROCEEDINGS The Master Servicer is not aware of any material pending legal proceedings involving either the Issuer, the Trustee, the Sponsor or the Master Servicer with respect to the Certificates or the Issuer's property. ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS No matter has been submitted to a vote of the holders of beneficial interests in the Issuer through the solicitation of proxies or otherwise. PART II ITEM 5 - MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED STOCK- HOLDER MATTERS The Trust is not an issuer of common stock in a corporation, although the Certificates represent equity interest that has voting rights. The equity of the Trust consists of the beneficial or ownership interest therein for which, to the best knowledge of the Master Servicer, there is no established public trading market. As of March 4, 1999, there were approximately 7 holders of the Class A-1 Certificates, 1 holder of the Class A-2 Certificates, 13 holders of the Class A-3 Certificates, 3 holders of the Class A-4 Certificates, 2 holders of the Class A-5 Certificates, 5 holders of the Class A-6 Certificates, 5 holders of the Class A-7 Certificates, 1 holder of the Class A-8 Certificates, 1 holder of the Class A-9 Certificates, 1 holder of the Class A-10 Certificates, 1 holder of the Class A-11 Certificates, 1 holder of the A-12 Certificates, 1 holder of the Class A-13 Certificates, 1 holder of the Class A-14 Certificates, 1 holder of the Class A-15 Certificates, 6 holders of the Class A-16 Certificates, 9 holders of the Class A-17 Certificates, 4 holders of the Class A-18 Certificates, 3 holders of the Class A-19 Certificates, 4 holders of the Class F-IO Certificates, and 1 holder of the Class A-IO Certificates. The number of holders includes individual participants in security position listings. As of December 26, 1998, 6 monthly distributions had been made to the holders of the Certificates. ITEM 6 - SELECTED FINANCIAL DATA Not applicable. ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATION On June 22, 1998, the Issuer issued $73,000,000.00 aggregate principal amount of Class A-1 Certificates having a pass-thru rate of 6.44%, $41,000,000.00 aggregate principal amount of Class A-2 Certificates having a pass-thru rate of 6.12% per annum, $34,000,000 aggregate principal amount of Class A-3 Certificates having a pass-thu rate of 6.19% per annum, $17,000,000 aggregate principal amount of Class A-4 Certificates having a pass-thru rate of 6.31% per annum, $24,000,000 aggregate principal amount of Class A-5 Certificates having a pass-thru rate of 6.33% per annum, $27,000,000 aggregate principal amount of Class A-6 Certificates having a pass-thru rate of 6.63% per annum, $15,000,000 aggregate principal amount of Class A-7 Certificates having a pass-thru rate of 6.15%, $9,000,000 aggregate principal amount of Class A-8 Certificates having a pass-thru rate of 6.36% per annum, $88,000,000 aggregate principal amount of Class A-9 Certificates having a pass-thru rate of 6.44%, $61,000,000 aggregate principal amount of Class A-10 Certificates having a pass-thru rate of 6.12%, $38,000,000 aggregate principal amount of Class A-11 Certificates having a pass-thru rate of 6.21% per annum, $28,000,000 aggregate principal amount of Class A-12 Certificates having a pass-thru rate of 6.33%, $28,000,000 aggregate principal amount of Class A-13 Certificates having a pass-thru rate of 6.36%, $36,000,000 aggregate principal amount of Class A-14 Certificates having a pass-thru rate of 6.65%, $31,000,000 aggregate principal amount of Class A-15 Certificates having a pass-thru rate of 6.25%, $180,000,000 aggregate principal amount of Class A-16 Certificates having a floating rate, $60,000,000 aggregate principle amount of Class A-17 having a pass-thru rate of 6.05%, $101,250,000 aggregate principle amount of Class A-18 having a floating rate, $33,750,000 aggregate principle amount of Class A-19 having a pass-thru rate of 6.05%, which are collateralized by Mortgage Loans. The sale of the Mortgage Loans to the Issuer, the issuance of the Certificates and the simultaneous delivery of the Certificates to the Companies for sale pursuant to a public offering, the underwriting of which was co-managed by Morgan Stanley Dean Wittier Lehman Brothers, Prudential Securities Incorporated has been accounted for as a sale of the Certificates. The value of the Certificates issued by the Issuer equaled the value of the Mortgage Loans conveyed to the Issuer by the Companies, plus funds held in the Prefunding Account (if any) and subsequently used to acquire additional mortgage loans. Accordingly, there was no income, expense, gain or loss resulting from the aforementioned transaction. CAPITAL RESOURCES AND LIQUIDITY The Issuer's primary sources of funds with respect to the Certificates will be receipts of interest on and principal of the Mortgage Loans, along with certain insurance proceeds, certain proceeds obtained on foreclosure and any investment income earned thereon. The respective management's of the Companies believe that the Issuer will have sufficient liquidity and capital resources to pay all amounts on the Certificates as they become due and all other anticipated expenses of the Issuer. The Issuer does not have, nor will it have in the future, any significant source of capital for payment of the Certificates and its operating expenses other than the receipt of interest on and principal of the mortgage loans, certain insurance proceeds and certain proceeds obtained on foreclosure and any payments made by the Certificate Insurer. The Issuer is a limited purpose trust. The Certificates represent obligations solely of the Issuer. ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Not applicable. ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE There were no changes of accountants or disagreements on accounting or financial disclosures between the Issuer and its accountants. PART III ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT The Issuer does not have any directors or officers. ITEM 11 - EXECUTIVE COMPENSATION Not applicable.See "Item 10-Directors and Executive Officers of the Registrant". ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT The following table sets forth (i) the name and address of each entity owning more than 5% of the outstanding principal amount of the ADVANTA Mortgage Loan Certificates, Series 1998-2, Class A-1 ("Class A-1 Certificates"), Class A-2 ("Class A-2 Certificates"), Class A-3 ("Class A-3 Certificates"), Class A-4 ("Class A-4 Certificates"), Class A-5 ("Class A-5 Certificates"), Class A-6 ("Class A-6 Certificates"), Class A-7 ("Class A-7 Certificates"), Class A-8 ("Class A-8 Certificates"), Class A-9 ("Class A-9 Certificates"), Class A-10 ("Class A-10 Certificates"),Class A-11 ("Class A-11 Certificates"), Class A-12 ("Class A-12 Certificates"),Class A-13 ("Class A-13 Certificates"), Class A-14 ("Class A-14 Certificates"),Class A-15 ("Class A-15 Certificates"), Class A-16 ("Class A-16 Certificates"),Class A-17 ("Class A-17 Certificates"), Class A-18 ("Class A-18 Certificates"),Class A-19 ("Class A-19 Certificates"), Class F-IO ("Class F-IO Certificates"),Class A-IO ("Class A-IO Certificates"), (ii) the principal amount of the Class A-1 Certificates, Class A-2 Certificates, Class A-3 Certificates, Class A-4 Certificates, Class A-5 Certificates, Class A-6 Certificates, Class A-7 Certificates, Class A-8 Certificates, Class A-9 Certificates, Class A-10 Certificates, Class A-11 Certificates, Class A-12 Certificates, Class A-13 Certificates, Class A-14 Certificates, Class A-15 Certificates, Class A-16 Certificates, Class A-17 Certificates, Class A-18 Certificates, Class A-19 Certificates, Class F-IO Certificates, or Class A-IO Certificates and (iii) the percent that the principal amount of Class A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class A-10, Class A-11, Class A-12, Class A-13, Class A-14, Class A-15, Class A-16, Class A-17, Class A-18, Class A-19, Class F-IO or Class A-IO Certificates owned represents of the outstanding principal amount of the Class A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class A-10, Class A-11, Class A-12, Class A-13, Class A-14, Class A-15, Class A-16, Class A-17, Class A-18, Class A-19, Class F-IO, or Class A-IO Certificates, respectively. The information set forth in the table is based upon information obtained by the Issuer from Depository Trust Company. The Master Servicer is not aware of any Schedules 13D or 13G filed with the Securities and Exchange Commission in respect of the Certificates. Amount Owned (All Dollar Amounts are in Thousands) Name and Address Principal Percent Class A-1 Certificates Brown Brothers Harriman & Co. Robert Davide 63 Wall Street, 8th Floor New York, NY 10005 16.44% Chase Manhattan Bank Orma Trim, Supervisor 4 New York Plaza, 13th Floor New York, NY 10004 58.90% Investors Bank & Trust/MF Custody Joanne Lowe, 15th Floor 200 Clarendon Street Boston, MA 02116 8.22% Merrill Lynch, Pierce Fenner & Smith V. O'Neill, Corp Park 287 4 Corporate Place Piscataway, NJ 08855 5.48% State Street Bank & Trust Global Corp Action Dept JAB5W PP Box 1631 Boston, MA 02105-1631 8.22% Class A-2 Certificates Chase Manhattan Bank Orma Trim, Supervisor 4 New York Plaza, 13th Floor New York, NY 10004 100.00% Class A-3 Certificates Bank of America Personal Trust R. DeLaTorre, Prxy Unit # 38432 555 S. Flower Street, Level C Los Angeles, CA 90071 5.88% Chase Manhattan Bank Orma Trim, Supervisor 4 New York Plaza, 13th Floor New York, NY 10004 9.13% Merrill Lynch, Pierce Fenner & Smith V. O'Neill, Corp Park 287 4 Corporate Place Piscataway, NJ 08855 52.94% State Street Bank & Trust Global Corp Action Dept JAB5W PP Box 1631 Boston, MA 02105-1631 11.16% Class A-4 Certificates Chase Manhattan Bank Orma Trim, Supervisor 4 New York Plaza, 13th Floor New York, NY 10004 64.71% Keybank National Association Karen Bednarski 4900 Tiedeman Road Brooklyn, OH 44144 5.88% State Street Bank & Trust Global Corp Action Dept JAB5W PP Box 1631 Boston, MA 02105-1631 29.41% Class A-5 Certificates Bankers Trust Company J. Lasher c/o BT Services, Tennessee 648 Grassmere Park Drive Nashville, TN 37211 58.33% Chase Manhattan Bank Orma Trim, Supervisor 4 New York Plaza, 13th Floor New York, NY 10004 41.67% Class A-6 Certificates Bank of New York Diana Karenbauer 925 Patterson Plank Rd Secaucus, NJ 07094 11.11% Chase Manhattan Bank Orma Trim, Supervisor 4 New York Plaza, 13th Floor New York, NY 10004 7.41% Citibank, NA Marta Hoosain PO Box 30576 Tampa, FL 33630-3576 51.85% Fleet Bank of Massachusetts, NA Ms. J. Rath, Fleet Services Corp 2nd Floor NYROTO2B Rochester, NY 14638 7.41% US Bank National Association R. Williams, MPFP 1603 Proxy Unit 601 Second Avenue South Minneapolis, MN 55402 22.22% Class A-7 Certificates Bankers Trust Company J. Lasher c/o BT Services, Tennessee 648 Grassmere Park Drive Nashville, TN 37211 8.83% Boston Safe Deposit & Trust C. Holloway, c/o Mellon Bank NA Three Mellon Bank Center, Rm 153-3015 Pittsburgh, PA 15259 27.83% Northern Trust Company Jarvis A. McKee 801 S. Canal C-IN Chicago, IL 60607 59.17% Class A-8 Certificates Bankers Trust Company J. Lasher c/o BT Services, Tennessee 648 Grassmere Park Drive Nashville, TN 37211 100.00% Class A-9 Certificates Bankers Trust Company J. Lasher c/o BT Services, Tennessee 648 Grassmere Park Drive Nashville, TN 37211 100.00% Class A-10 Certificates Bank of New York Diana Karenbauer 925 Patterson Plank Rd Secaucus, NJ 07094 100.00% Class A-11 Certificates Bank of New York Diana Karenbauer 925 Patterson Plank Rd Secaucus, NJ 07094 100.00% Class A-12 Certificates Bank of New York Diana Karenbauer 925 Patterson Plank Rd Secaucus, NJ 07094 100.00% Class A-13 Certificates Bank of New York Diana Karenbauer 925 Patterson Plank Rd Secaucus, NJ 07094 100.00% Class A-14 Certificates Citibank, NA Marta Hoosain PO Box 30576 Tampa, FL 33630-3576 100.00% Class A-15 Certificates Bank of New York Diana Karenbauer 925 Patterson Plank Rd Secaucus, NJ 07094 100.00% Class A-16 Certificates Bank of New York Diana Karenbauer 925 Patterson Plank Rd Secaucus, NJ 07094 25.00% Boston Safe Deposit & Trust C. Holloway, c/o Mellon Bank NA Three Mellon Bank Center, Rm 153-3015 Pittsburgh, PA 15259 9.44% Chase Manhattan Bank Orma Trim, Supervisor 4 New York Plaza, 13th Floor New York, NY 10004 19.44% Norwest Bank Minnesota, NA John Kemper 733 Marquette Avenue Minneapolis, MN 55479-0056 27.50% Prudential Securities, Inc Issuer Services, c/o ADP Proxy 51 Mercedes Way Edgewood, NY 11717 7.22% Republic National Bank of NY Investment Co Anthony Pla' One Hanson Place, Lower Level Brooklyn, NY 11243 11.40% Class A-17 Certificates Bank of New York Diana Karenbauer 925 Patterson Plank Rd Secaucus, NJ 07094 34.50% Bankers Trust Company J. Lasher, c/o BT Services Tennessee 648 Grassmere Park Drive Nashville, TN 37211 9.17% Bank One Trust Company, NA-State Scott Hammond 30 West Spring Street Columbus, OH 43266-0581 16.67% Boston Safe Deposit & Trust Co C. Holloway, c/o Mellon Bank NA Three Mellon Bank Ctr, Rm 153-3015 Pittsburgh, PA 15259 10.00% State Street Bank & Trust Co J. Callahan, Global Action Dept JAB5W PP Box 1631 Boston, MA 02105-1631 16.33% Class A-18 Certificates Bankers Trust Company J. Lasher, c/o BT Services Tennessee 648 Grassmere Park Drive Nashville, TN 37211 24.69% Chase Manhattan Bank Orma Trim, Supervisor 4 New York Plaza, 13th Floor New York, NY 10004 60.49% Marine/Treasury Investments Linda Ng 140 Broadway - Level A New York, NY 10015 9.88% Prudential Securities, Inc Issuer Services, c/o ADP Proxy 51 Mercedes Way Edgewood, NY 11717 4.94% Class A-19 Certificates Bank of New York Diana Karenbauer 925 Patterson Plank Rd Secaucus, NJ 07094 29.63% Chase Manhattan Bank Orma Trim, Supervisor 4 New York Plaza, 13th Floor New York, NY 10004 8.89% Northern Trust Company Jarvis A. McKee 801 S. Canal C-IN Chicago, IL 60607 61.48% Class F-IO Certificates Bank of New York Diana Karenbauer 925 Patterson Plank Rd Secaucus, NJ 07094 15.36% Bankers Trust Company J. Lasher, c/o BT Services Tennessee 648 Grassmere Park Drive Nashville, TN 37211 51.32% State Street Bank & Trust Co J. Callahan, Global Action Dept JAB5W PP Box 1631 Boston, MA 02105-1631 32.73% Class A-IO Certificates Firstar Trust Company Ferdinand Caldwell 777 E. Wisconsin Avenue Milwaukee, WI 53202 100.00% ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS None PART IV ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K (a) The following documents are filed as part of this report: 1. Financial Statements: Not applicable. 2. Financial Statement Schedules: Not applicable. 3. Exhibits: As the Issuer was established as of June 1, 1998, the Master Servicer was obligated to prepare an Annual Statement to Certificateholders as to Compliance for the year ended December 31, 1998, and mail such statement to the Certificateholders on or before the last day of March, 1999 and Independent Certified Public Accountants were required to prepare an annual report pertaining to the compliance of the Master Servicer with its servicing obligations pursuant to the Pooling and Servicing Agreement on or before the last day of March, 1999. The Annual Statement to Certificate- holders as to Compliance is included herewith as Exhibit 28.1 and the Annual Independent Certified Public Accountants' Report is included herewith as Exhibit 28.2. The Statement to Certificateholders on December 26, 1998, is included herewith as Exhibit 28.3. Exhibit No. Description *3.1 Certificates of Incorporation of the Companies *3.2 By-laws of the Companies *4 Pooling and Servicing Agreement 28.1 Annual Statement to Certificateholders as to Compliance for the year ended December 31, 1998. 28.2 Annual Independent Certified Public Accountants' Report. 28.3 Report of Management on Compliance with Minimum Servicing Standards. 28.4 Statement to Certificateholders on December 26, 1998. * Incorporated by reference to the Exhibit of the same designation filed with the Issuer's Form S-3 registration statement declared effective October 30, 1997. (b) Reports on Form 8-K. Six reports on Form 8-K have been filed by the Issuer during the period covered by this report. Items Reported/Financial Date of Reports on Form 8-K Statements Filed July 27, 1998 Monthly Report for the June 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1998-2, Class A-1 Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class A-10, Class A-11, Class A-12, Class A-13, Class A-14, Class A-15, Class A-16, Class A-17 Class A-18, Class A-19, Class F-IO and Class A-IO issued by the ADVANTA Mortgage Loan Trust 1998-2. August 25, 1998 Monthly Report for the July 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1998-2, Class A-1 Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class A-10, Class A-11, Class A-12, Class A-13, Class A-14, Class A-15, Class A-16, Class A-17 Class A-18, Class A-19, Class F-IO and Class A-IO issued by the ADVANTA Mortgage Loan Trust 1998-2. September 25, 19Monthly Report for the August 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1998-2, Class A-1 Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class A-10, Class A-11, Class A-12, Class A-13, Class A-14, Class A-15, Class A-16, Class A-17 Class A-18, Class A-19, Class F-IO and Class A-IO issued by the ADVANTA Mortgage Loan Trust 1998-2. October 25, 1998Monthly Report for the September 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1998-2, Class A-1 Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class A-10, Class A-11, Class A-12, Class A-13, Class A-14, Class A-15, Class A-16, Class A-17 Class A-18, Class A-19, Class F-IO and Class A-IO issued by the ADVANTA Mortgage Loan Trust 1998-2. November 25, 199Monthly Report for the October 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1998-2, Class A-1 Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class A-10, Class A-11, Class A-12, Class A-13, Class A-14, Class A-15, Class A-16, Class A-17 Class A-18, Class A-19, Class F-IO and Class A-IO issued by the ADVANTA Mortgage Loan Trust 1998-2. December 28, 199Monthly Report for the November 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1998-2, Class A-1 Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class A-10, Class A-11, Class A-12, Class A-13, Class A-14, Class A-15, Class A-16, Class A-17 Class A-18, Class A-19, Class F-IO and Class A-IO issued by the ADVANTA Mortgage Loan Trust 1998-2. (c) See "Item 14(a) (3)-Exhibits". (d) Not applicable. 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 its behalf by the undersigned, thereunto duly authorized. ADVANTA Mortgage Corp., USA, as Master Servicer and on behalf of ADVANTA Mortgage Loan Trust 1998-2 Registrant BY; /s/ William P. Garland William P. Garland Senior Vice President Loan Service Administration March 31, 1999 INDEX TO EXHIBITS (Item 14(c)) Exhibit # Description *3.1 Certificates of Incorporation of the Companies *3.2 By-laws of the Companies. *4 Pooling and Servicing Agreement 28.1 Annual Statement to Certificateholders as to Compliance for the year ended December 31, 1998. 28.2 Annual Independent Certified Public Account- ants' Report. 28.3 Report of Management on Compliance with Minimum Servicing Standards. 28.4 Statement to Certificateholders on December 28, 1998. * Incorporated by reference to the Exhibit of the same designation filed with the Issuer's Form S-3 registration statement declared effective October 30, 1997. EXHIBIT 28.1 March 24, 1999 Bankers Trust Company(293) Attention: Mark McNeill 3 Park Plaza -- 16th Floor Irvine, CA 92714 RE: Annual Statement as to Compliance Pursuant to that certain Loan Servicing Agreement ("Agreement") dated as of June 1, 1998, relating to ADVANTA Mortgage Loan Trust 1998-2, I, William P. Garland, hereby certify that (I) a review of the activities of the Servicer during the preceding year and the performance under this Agreement has been made under my supervision, and (II) to the best of my knowledge, based on such review, the Servicer has fulfilled all its obligations under this Agreement for such year. Sincerely, BY; /s/ William P. Garland William P. Garland Senior Vice President Loan Service Administration WPG/cg cc: Mr. James L. Shreero Mary T. Woehr, Esq. Mr. Mark Casale
EXHIBIT 28.2 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To ADVANTA Mortgage Corp. USA: We have examined management's assertion, included in the accompanying Report of Management on Compliance with Minimum Servicing Standards, that Advanta Mortgage Corp. USA, an indirect wholly-owned subsidiary of Advanta Corp., complied with the minimum servicing standards identified in the Mortgage Bankers Association of America's Uniform Single Attestation Program for Mortgage Bankers (USAP) and that Advanta Mortgage Corp. USA had in effect fidelity bond coverage in the amount of $15 million and mortgage contingent liability protection coverage in the amount of $5 million per occurrence as of and during the year ended December 31, 1998. As discussed in the accompanying Report of Management on Compliance with Minimum Servicing Standards, Management is responsible for Advanta Mortgage Corp. USA's compliance with those minimum servicing standards and for maintaining fidelity bond and errors and omissions policies. Our responsibility is to express an opinion on management's assertion about Advanta Mortgage Corp USA's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about Advanta Mortgage Corp. USA's compliance with the minimum servicing standards and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on Advanta Mortgage Corp. USA's compliance with the minimum servicing standards. In our opinion, management's assertion that Advanta Mortgage Corp. USA complied with the aforementioned minimum servicing standards and that Advanta Mortgage Corp. USA had in effect fidelity bond coverage in the amount of $15 million and mortgage contingent liability protection coverage in the amount of $5 million per occurrence as of and during the year ended December 31, 1998, is fairly stated, in all material respects. BY; /s/ Arthur Andersen LLP Philadelphia, PA January 26, 1999
EXHIBIT 28.3 REPORT OF MANAGEMENT ON COMPLIANCE WITH MINIMUM SERVICING STANDARDS As of and during the year ended December 31, 1998, Advanta Mortgage Corp. USA has complied in all material respects with the minimum servicing standards as set forth in the Mortgage Bankers Association of America's Uniform Single Attestation Program for Mortgage Bankers. As of and during the same period, Advanta Mortgage Corp. USA had in effect fidelity bond coverage in the amount of $15 million and mortgage contingent liability protection coverage in the amount of $5 million per occurrence. BY; /s/ William P. Garland BY; /s/ James L. Shreero William P. Garland James L. Shreero Senior Vice President Senior Vice President Loan Servicing and Chief Financial Officer Finance and Accounting
EXHIBIT 28.4 ADVANTA Mortgage Loan Trust 1998-2 Statement to Certificateholders
Original Prior Face Principal Class Value Balance Interest Principal Total A-1 73,000,000 60,138,591 322,7 3,265,055 3,587,799.16 A-2 41,000,000 41,000,000 209,1 209,100.00 A-3 34,000,000 34,000,000 175,3 175,383.33 A-4 17,000,000 17,000,000 89,3 89,391.67 A-5 24,000,000 24,000,000 126,6 126,600.00 A-6 27,000,000 27,000,000 149,1 149,175.00 A-7 15,000,000 15,000,000 76,8 76,875.00 A-8 9,000,00 9,000,00 47,7 47,700.00 A-9 88,000,000 70,593,869 378,8 5,443,563 5,822,417.51 A-10 61,000,000 61,000,000 311,1 311,100.00 A-11 38,000,000 38,000,000 196,6 196,650.00 A-12 28,000,000 28,000,000 147,7 147,700.00 A-13 28,000,000 28,000,000 148,4 148,400.00 A-14 36,000,000 36,000,000 199,5 199,500.00 A-15 31,000,000 31,000,000 161,4 161,458.33 A-16 180,000,000. 163,369,097. 779,0 4,764,097 5,543,174.41 A-17 60,000,000 60,000,000 302,5 302,500.00 A-18 101,250,000. 91,622,242 436,9 3,910,156 4,347,085.35 A-19 33,750,000 33,750,000 170,1 170,156.25 F-IO* 55,000,000 55,000,000 229,1 229,166.67 A-IO* 93,750,000 93,750,000 390,6 390,625.00 RS - Totals 925,000,000. 868,473,801. 5,049,08 17,382,873. 22,431,957.68
Current Pass-Through Realized Deferred Principal Rates Class Losses Interest Balance Current Next A-1 56,873,536 6.440000% 6.440000% A-2 41,000,000 6.120000% 6.120000% A-3 34,000,000 6.190000% 6.190000% A-4 17,000,000 6.310000% 6.310000% A-5 24,000,000 6.330000% 6.330000% A-6 27,000,000 6.630000% 6.630000% A-7 15,000,000 6.150000% 6.150000% A-8 9,000,00 6.360000% 6.360000% A-9 65,150,305 6.440000% 6.440000% A-IO 61,000,000 6.120000% 6.120000% A-11 38,000,000 6.210000% 6.210000% A-12 28,000,000 6.330000% 6.330000% A-13 28,000,000 6.360000% 6.360000% A-14 36,000,000 6.650000% 6.650000% A-15 31,000,000 6.250000% 6.250000% A-16 158,604,999. 5.202340% 5.784380% A-17 60,000,000 6.050000% 6.050000% A-18 87,712,086 5.202340% 5.784380% A-19 33,750,000 6.050000% 6.050000% F-IO* 55,000,000 5.000000% 5.000000% A-IO* 93,750,000 5.000000% 5.000000% RS 0.000000% 0.000000% Totals 851,090,928.04
Prior Current Principal Principal Class CUSIP Balance Interest Principal Total Balance A-1 00755WFD3 823.816321 4.421148 44.726786 49.147934 779.089535 A-2 00755WFE1 1,000.000000 5.100000 0.000000 5.100000 1,000.000000 A-3 00755WFF8 1,000.000000 5.158333 0.000000 5.158333 1,000.000000 A-4 00755WFG6 1,000.000000 5.258334 0.000000 5.258334 1,000.000000 A-5 00755WFH4 1,000.000000 5.275000 0.000000 5.275000 1,000.000000 A-6 00755WFJ0 1,000.000000 5.525000 0.000000 5.525000 1,000.000000 A-7 00755WFK7 1,000.000000 5.125000 0.000000 5.125000 1,000.000000 A-8 00755WFL5 1,000.000000 5.300000 0.000000 5.300000 1,000.000000 A-9 00755WFM3 802.203063 4.305156 61.858679 66.163835 740.344384 A-IO 00755WFN1 1,000.000000 5.100000 0.000000 5.100000 1,000.000000 A-11 00755WFP6 1,000.000000 5.175000 0.000000 5.175000 1,000.000000 A-12 00755WFQ4 1,000.000000 5.275000 0.000000 5.275000 1,000.000000 A-13 00755WFR2 1,000.000000 5.300000 0.000000 5.300000 1,000.000000 A-14 00755WFS0 1,000.000000 5.541667 0.000000 5.541667 1,000.000000 A-15 00755WFT8 1,000.000000 5.208333 0.000000 5.208333 1,000.000000 A-16 00755WFV3 907.606099 4.328203 26.467211 30.795414 881.138888 A-17 00755WFW1 1,000.000000 5.041667 0.000000 5.041667 1,000.000000 A-18 00755WFX9 904.911037 4.315350 38.618826 42.934176 866.292211 A-19 00755WFY7 1,000.000000 5.041667 0.000000 5.041667 1,000.000000 F-IO* 00755WFU5 1,000.000000 4.166667 0.000000 4.166667 1,000.000000 A-IO* 00755WFZ4 1,000.000000 4.166667 0.000000 4.166667 1,000.000000 RS AM9802122 0.000000 0.000000 0.000000 0.000000 0.000000
Delinquent Loan Information:
90+ Days Loans Loans 30-59 60-89 excldg f/c,REO in in Days Days & Bkrptcy REO Foreclosure Group IA Principal Balanc 6,154,68 2,139,65 935,64 55,2 3,826,470 % of Pool Balanc 2.70820% 0.94150% 0.41171% 0.02430% 1.68373% Number of Loans 106 34 19 1 77 % of Loans 3.08229% 0.98866% 0.55249% 0.02908% 2.23902% Group IIA Principal Balanc 8,001,05 2,199,33 603,83 73,7 6,089,279 % of Pool Balanc 3.61128% 0.99267% 0.27254% 0.03328% 2.74840% Number of Loans 100 23 6 1 77 % of Loans 4.22297% 0.97128% 0.25338% 0.04223% 3.25169% Group IB Principal Balanc 7,939,19 2,216,75 1,604,491 168,3 2,346,658 % of Pool Balanc 2.73082% 0.76249% 0.55189% 0.05792% 0.80717% Number of Loans 133 43 29 2 36 % of Loans 3.01314% 0.97417% 0.65700% 0.04531% 0.81559% Group IIB Principal Balanc 5,312,86 960,1 660,74 1,183,114 % of Pool Balanc 2.33778% 0.42247% 0.29074% 0.00000% 0.52060% Number of Loans 64 13 7 0 16 % of Loans 4.29530% 0.87248% 0.46980% 0.00000% 1.07383% Loans in Bankrup Group IA 1,483,060.11 Group IIA 1,225,194.31 Group IB 1,128,592.93 Group IIB 445,127.76 4,281,975.11 Combined REO BOOK VALUE 319,293.00
General Mortgage Loan Information:
Group IA Group IIA Group IB Group IIB Total Beginning Aggregate Mortgage L 229,972,043. 225,827,346. 295,587,021. 126,588,521. 877,974,932. Principal Reduction 2,711,15 4,270,02 4,861,420 3,660,99 15,503,601. Ending Aggregate Mortgage Loan 227,260,888. 221,557,318. 290,725,600. 122,927,524. 862,471,331. Beginning Aggregate Mortgage L 3476 2411 4484 1529 11900 Ending Aggregate Mortgage Loan 3439 2368 4414 1490 11711 Current Weighted Average Coupo 10.253738% 10.355393% 9.750179% 10.072898% 10.084278% Next Weighted Average Coupon R 10.251051% 10.351501% 9.741842% 10.064097% 10.078562%
Mortgage Loan Principal Reduction Information:
Group IA Group IIA Group IB Group IIB Total Scheduled Principal 286,5 146,0 401,23 60,0 893,95 Curtailments Prepayments 2,424,58 4,078,37 4,337,687 3,600,91 14,441,556. Repurchases/Substitutions 122,50 122,50 Liquidation Proceeds 45,5 45,5 Other Principal Less: Realized Losses (5, (5,6 Less: Delinquent Principal not Total Principal Reduction 2,711,15 4,275,67 4,861,420 3,660,99 15,509,249.
Servicer Information:
Group IA Group IIA Group IB Group IIB Total Accrued Servicing Fee for the 95,8 94,0 123,16 52,7 365,82 Less: Amounts to Cover Interes 1, 2,3 Less: Delinquent Service Fees 23,1 20,5 23,9 11,4 79,1 Collected Servicing Fees for C 71,3 72,9 99,2 40,8 284,33 Advanced Principal 20,9 7, 35,1 6, 69,4 Advanced Interest 483,4 423,7 482,62 225,9 1,615,786
Other Subordination Interest Prepayment Unscheduled Increase Carry Applied Realized Loss Principal Principal Principal Forward Realized Loss Amortization Class Distributed Distributed Distributed Amount Amount Amount A-1 2,712,58 2,912,06 A-2 A-3 A-4 A-5 A-6 A-7 A-8 A-9 4,522,47 4,855,05 A-10 A-11 A-12 A-13 A-14 A-15 A-16 3,957,97 4,249,04 A-17 A-18 3,248,52 3,487,42 A-19 Total 14,441,556 15,503,601
Unpaid Realized Loss Class Amount A-1 A-2 A-3 A-4 A-5 A-6 A-7 A-8 A-9 A-10 A-11 A-12 A-13 A-14 A-15 A-16 A-17 A-18 A-19 Total
Prior Has a Senior Overcolla- Supplemental Subordination Subordination Trigger Event Enhancement Teralization Interest Increase Increase Occurred Percentage Amount Amount Amount Distributed Group IA NO N/A 2,833,45 166,5 166,54 Group IIA NO N/A 2,458,24 494,0 494,06 Group IB NO N/A 2,993,15 969,4 969,49 Group IIB NO N/A 1,216,27 249,1 249,15 Total 9,501,13 1,879,27 1,879,272
Current Target Overcolla- Overcolla- teralization teralization Amount Amount Group IA 3,000,00 3,000,000 Group IIA 2,952,31 3,000,000 Group IB 3,962,64 10,075,000. Group IIB 1,465,43 4,387,500 Total 11,380,403 20,462,500.
TOTAL AVAILABLE FUNDS:
Current Interest Collected: 5,683,185.31 Principal Collected: 15,266,025.32 Insurance Proceeds Received: - Net Liquidation Proceeds: 39,936.60 Delinquency Advances on Mortgage Interest: 1,615,786.52 Delinquency Advances on Mortgage Principal 69,491.19 Substitution Amounts: 122,500.00 Trust Termination Proceeds: - Investment Earnings on Certificate Account: 16,893.95 Sum of the Above Amounts: 22,813,818.89 LESS: Servicing Fees (including PPIS): 286,675.13 Dealer Reserve: - Trustee Fees: 5,121.52 Insurance Premiums: 90,064.56 Reimbursement of Delinquency Advances: - Reimbursements of Servicing Advances: - Total Reductions to Available Funds Amount: 381,861.21 Total Available Funds: 22,431,957.
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