SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
Date of Report: July 15, 1998
(Date of earliest event reported)
FIRSTPLUS Investment Corporation
(Exact Name of Registrant as Specified in its Charter)
Nevada 333-26527 75-2596063
- -------------------- --------- ----------
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
377 Howard Hughes Parkway
Suite 300N
Las Vegas, Nevada 89101
(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code: (702) 892-3772
No Change
(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events
Reference is hereby made to the Registrant's Registration
Statement on Form S-3 (File No. 333-26527) pursuant to which
the Registrant registered issuances of FIRSTPLUS Home Loan
Owner Trust asset backed securities, issuable in various
series, for sale in accordance with the provisions of the
Securities Act of 1933, as amended (the "Act"). Reference is
also hereby made to the Prospectus dated September 10, 1997,
and the related Prospectus Supplement, dated June 18, 1998
(collectively, the "Prospectus"), which were previously
filed with the Commission pursuant to Rule 424(b)(5),
relating to the publicly offered FIRSTPLUS Home Loan Owner
Trust 1998-4 Asset Backed Securities, Series 1998-4,
consisting 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 M-1,
Class M-2 and Class B-1 Asset Backed Notes (the "Publicly
Offered Securities"). Capitalized terms used but not defined
herein have the meanings assigned to such terms in the
Prospectus.
The Publicly Offered Securities were sold to Deutsche Bank
Securities Inc. ("Deutsche Bank"), Bear, Stearns & Co. Inc.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated and
PaineWebber Incorporated (collectively, the "Underwriters")
pursuant to the terms of an underwriting agreement dated May
13, 1998, as supplemented by a terms agreement dated June
18, 1998, each among Deutsche Bank, as representative (the
"Representative") of the Underwriters (such underwriting
agreement, together with such terms agreement, the
"Underwriting Agreement"), the Registrant, FIRSTPLUS
FINANCIAL, INC. ("FFI") and FIRSTPLUS Financial Group, Inc.
A copy of the Underwriting Agreement is filed herewith as
Exhibit 1.1.
The Notes were issued pursuant to an Indenture dated as of
June 1, 1998 (the "Indenture") among FIRSTPLUS Home Loan
Owner Trust 1998-4 (the "Issuer" or the "Trust") and U.S.
Bank National Association, as Indenture Trustee (the
"Indenture Trustee"). A copy of the Indenture is filed
herewith as Exhibit 4.1.
The Notes are secured by the assets of the Trust pursuant to
the Indenture. The assets of the Trust primarily include a
pool of home loans (the "Home Loans") consisting of loans
which are secured by mortgages, deeds of trust or other
similar security instruments. The Home Loans consist of
loans for which the related proceeds were used to finance
(i) property improvements, (ii) debt consolidation, or (iii)
a combination of property improvements, debt consolidation,
cash-out, credit insurance premiums, origination costs or
other consumer purposes.
The Home Loans were sold by FFI to the Registrant pursuant
to the terms of a Loan Sale Agreement dated as of June 1,
1998 (the "Loan Sale Agreement") and were simultaneously
sold by the Registrant to the Trust pursuant to the Sale and
Servicing Agreement (defined below). A copy of the Loan Sale
Agreement is filed herewith as Exhibit 10.1.
The Home Loans will be serviced by FFI, an affiliate of the
Registrant, pursuant to the terms of a Sale and Servicing
Agreement dated as of June 1, 1998 (the "Sale and Servicing
Agreement") among the Registrant, as Seller, FFI, as
Transferor and Servicer, the Issuer, and U.S. Bank National
Association, as Indenture Trustee and Co-Owner Trustee. A
copy of the Sale and Servicing Agreement is filed herewith
as Exhibit 10.2.
Set forth below is a brief description of certain
characteristics of the Home Loans included in the Home Loan
Pool as of the June 30, 1998 Cut-off Date.
The Home Loan Pool consists of 19,220 Home Loans having a
Pool Principal Balance as of the respective Cut-Off Dates of
the related Home Loans of $597,161,004. The Home Loans (by
Pool Principal Balance as of the applicable Cut-Off Dates)
have the characteristics set forth in the following tables:
HOME LOAN RATE
RANGE OF NUMBER OF PERCENT OF TOTAL
HOME LOAN HOME AGGREGATE BY AGGREGATE
RATES (%) LOANS PRINCIPAL BALANCE ($) PRINCIPAL BALANCE (%)
- -------------- ----- --------------------- ---------------------
8.001 - 9.000% 1 $ 17,212 0.00%
9.001 - 10.000 75 1,957,585 0.33
10.001 - 11.000 415 13,144,258 2.20
11.001 - 12.000 3,667 121,787,808 20.39
12.001 - 13.000 4,089 129,047,523 21.61
13.001 - 14.000 4,778 150,054,215 25.13
14.001 - 15.000 3,510 103,638,107 17.36
15.001 - 16.000 2,044 59,905,350 10.03
16.001 - 17.000 538 15,062,163 2.52
17.001 - 18.000 85 2,071,603 0.35
18.001 - 19.000 18 475,180 0.08
------ ------------ -----------
TOTAL 19,220 $597,161,004 100.00%
====== ============ ===========
The weighted average Home Loan Rate of the Home Loans as of the
Cut-Off Date was approximately 13.51% per annum.
Cut-Off Date Loan Principal Balances
RANGE OF PERCENT OF TOTAL
CUT-OFF DATE NUMBER OF AGGREGATE BY AGGREGATE
PRINCIPAL BALANCE ($) HOME LOANS PRINCIPAL BALANCE($) PRINCIPAL BALANCE (%)
- --------------------- ---------- -------------------- ---------------------
0.01 - 10,000.00 80 723,616 0.12%
10,000.01 - 20,000.00 2,789 45,865,923 7.68
20,000.01 - 30,000.00 6,610 169,294,038 28.35
30,000.01 - 40,000.00 6,586 229,174,530 38.38
40,000.01 - 50,000.00 2,459 111,734,107 18.71
50,000.01 - 60,000.00 508 27,838,139 4.66
60,000.01 - 70,000.00 156 10,122,940 1.70
70,000.01 - 80,000.00 32 2,407,711 0.40
-- --------------- -------
TOTAL 19,220 $597,161,004 100.00%
====== ============ =======
The average principal balance of the Home Loans as of the Cut-Off
Date was approximately $31,070.
Original Loan Principal Balances
PERCENT OF TOTAL
RANGE OF BY AGGREGATE
PRINCIPAL BALANCES NUMBER OF AGGREGATE PRINCIPAL BALANCE (%)
AT ORIGINATION ($) HOME LOANS PRINCIPAL BALANCE
0.01 - 10,000.00 57 554,102 0.09
10,000.01 - 20,000.00 2,752 44,945,512 7.53
20,000.01 - 30,000.00 6,595 168,317,248 28.19
30,000.01 - 40,000.00 6,622 229,759,468 38.48
40,000.01 - 50,000.00 2,483 112,514,584 18.84
50,000.01 - 60,000.00 519 28,302,494 4.74
60,000.01 - 70,000.00 160 10,359,885 1.73
70,000.01 - 80,000.00 32 2,407,711 0.40
---------- --------------- --------
Total 19,220 $597,161,004 100.00%
====== ============ -------
The average principal balance of the Initial Home Loans at
origination was approximately $31,321.
Geographic Concentration
PERCENT OF TOTAL
NUMBER OF AGGREGATE BY AGGREGATE
STATE HOME LOANS PRINCIPAL BALANCE PRINCIPAL BALANCE (%)
Alabama 3 64,198 0.01
Alaska 50 1,797,077 0.30
Arizona 425 12,549,985 2.10
Arkansas 228 7,181,137 1.20
California 2,482 82,860,148 13.88
Colorado 365 11,360,191 1.90
Connecticut 268 8,689,401 1.46
Delaware 84 2,731,157 0.46
District of Columbia 6 134,435 0.02
Florida 1,233 36,969,854 6.19
Georgia 568 17,559,267 2.94
Hawaii 2 59,667 0.01
Idaho 176 5,239,594 0.88
Illinois 542 15,259,304 2.56
Indiana 508 15,628,844 2.62
Iowa 133 4,288,661 0.72
Kansas 344 10,387,767 1.74
Kentucky 272 8,268,732 1.38
Louisiana 268 8,133,495 1.36
Maine 186 5,676,847 0.95
Maryland 507 15,887,966 2.66
Massachusetts 507 16,035,085 2.69
Michigan 857 26,369,030 4.42
Minnesota 468 14,639,196 2.45
Mississippi 113 3,589,415 0.60
Missouri 948 28,151,097 4.71
Montana 33 965,797 0.16
Nebraska 185 5,687,425 0.95
Nevada 257 7,832,320 1.31
New Hampshire 79 2,408,296 0.40
New Jersey 528 16,071,073 2.69
New Mexico 229 7,170,086 1.20
New York 279 9,190,765 1.54
North Carolina 695 21,296,937 3.57
North Dakota 18 540,199 0.09
Ohio 1,013 32,122,238 5.38
Oklahoma 316 9,610,250 1.61
Oregon 141 4,255,527 0.71
Pennsylvania 1,264 39,293,199 6.58
Rhode Island 108 3,469,692 0.58
South Carolina 384 11,422,484 1.91
South Dakota 31 994,655 0.17
Tennessee 280 8,010,809 1.34
Texas 2 58,680 0.01
Utah 161 4,760,641 0.80
Vermont 28 891,088 0.15
Virginia 825 24,935,667 4.18
Washington 568 18,416,594 3.08
West Virginia 5 156,555 0.03
Wisconsin 207 6,764,200 1.13
Wyoming 41 1,324,279 0.22
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Total 19,220 $597,161,004 100.00%
====== ============ =======
Remaining Term to Maturity
PERCENT OF TOTAL
RANGE OF REMAINING NUMBER OF AGGREGATE BY AGGREGATE
TERM TO MATURITY (MONTHS) HOME LOANS PRINCIPAL BALANCE PRINCIPAL BALANCE (%)
- ------------------------- ---------- ----------------- ---------------------
0 - 30 1 8,466 0.00
31 - 60 169 3,339,680 0.56
61 - 90 78 1,760,076 0.29
91 - 120 1,128 28,467,609 4.77
121 - 150 38 997,574 0.17
151 - 180 3,635 108,291,742 18.13
181 - 210 11 323,066 0.05
211 - 240 1,838 57,859,761 9.69
241 - 270 1 32,422 0.01
271 - 300 12,321 396,080,608 66.33
------ ----------- -------
Total................. 19,220 597,161,004 100.00
====== =========== ======
The weighted average remaining term to maturity of the Home Loans as
of the Cut-Off Date was approximately 258 months.
Months Since Origination
PERCENT OF TOTAL
AGE NUMBER OF AGGREGATE BY AGGREGATE
(IN MONTHS) HOME LOANS PRINCIPAL BALANCE PRINCIPAL BALANCE (%)
----------- ---------- ----------------- ---------------------
0 - 3 10,534 331,303,684 55.48
4 - 6 6,888 209,860,013 35.14
7 - 12 1,296 39,855,822 6.67
13 - 18 476 15,368,366 2.57
19 - 24 21 629,314 0.11
25 - 30 1 38,475 0.01
31 - 42 4 105,329 0.02
------- ----------- ------
Total 19,220 597,161,004 100.00
====== =========== ======
The weighted average number of months since origination of the Home
Loans as of the Cut-Off Date was approximately 4 months.
CREDIT SCORES*
AGGREGATE PERCENT OF TOTAL
RANGE OF NUMBER OF PRINCIPAL BY AGGREGATE
CREDIT SCORES HOME LOANS BALANCE PRINCIPAL BALANCE
------------- ---------- ------- -----------------
620 to 639...................... 507 12,761,541 2.14
640 to 659...................... 3,926 115,829,585 19.40
660 to 679...................... 3,966 121,577,998 20.36
680 to 699...................... 3,997 127,511,636 21.35
700 to 719...................... 3,663 119,020,098 19.93
720 to 739...................... 1,908 61,004,572 10.22
740 to 759...................... 901 28,952,986 4.85
760 to 779...................... 276 8,300,703 1.39
780 to 799...................... 66 1,899,373 0.32
800 or more..................... 10 302,512 0.05
---------- ------------ -------
Total.................. 19,220 $597,161,004 100%
========== ============ =======
- ---------------------------
*Determined prior to origination of the related Home Loan.
The weighted average Credit Score of the Home Loans as of the Cut-Off Date was
approximately 689.
DEBT-TO-INCOME RATIOS
AGGREGATE PERCENT OF TOTAL
RANGE OF NUMBER OF PRINCIPAL BY AGGREGATE
DEBT-TO-INCOME RATIOS HOME LOANS BALANCE PRINCIPAL BALANCE
--------------------- ---------- --------- -----------------
Up to 10.................. 15 $ 473,508 0.08%
11 to 15.................. 93 2,606,740 0.44
16 to 20.................. 556 16,072,752 2.69
21 to 25.................. 1,455 44,307,890 7.42
26 to 30.................. 2,946 90,179,177 15.10
31 to 35.................. 4,279 132,366,696 22.17
36 to 40.................. 5,001 158,558,708 26.55
41 to 45.................. 3,572 112,835,437 18.90
46 to 50.................. 1,291 39,448,457 6.61
51 to 55.................. 12 311,639 0.05
--- -------------- -------------
Total............ 19,220 $ 597,161,004 100%
====== ============== ============
The weighted average debt-to-income ratio of the Home Loans as of the Cut-Off
Date was approximately 35.23%.
Item 7. Financial Statements and Exhibits
(a) Not applicable.
(b) Not applicable.
(c) Exhibits
Exhibit No. Description
1.1 Underwriting Agreement
1.2 Underwriting Terms Agreement
4.1 Indenture
10.1 Subsequent Transfer Agreement
10.2 Sale and Servicing Agreement
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Current Report on Form 8-K to be signed on
its behalf by the undersigned hereunto duly authorized.
FIRSTPLUS INVESTMENT CORPORATION
By: /s/ Lee F. Reddin
Name: Lee F. Reddin
Title: Vice President
Dated: July ___, 1998
EXHIBIT INDEX
Exhibit No. Description Page No.
10.1 Subsequent Transfer Agreement