Exhibit 99.3
First Alliance Mortgage Loan Trust
Mortgage Loan Asset Backed Notes Series 1998-2
1998 - Annual Statement
DISTRIBUTION DOLLARS
ENDING
PERIOD CLASS CUST INTEREST PRINCIPAL BALANCE
199807 FIXED NOTE $380,333.33 $750,275.30 $69,249,724.70
199808 FIXED NOTE $376,256.84 $1,553,660.03 $67,696,064.67
199809 FIXED NOTE $367,815.28 $1,056,071.85 $66,639,992.82
199810 FIXED NOTE $362,077.29 $1,739,275.05 $64,900,717.77
199811 FIXED NOTE $352,627.23 $1,644,605.74 $63,256,112.03
199812 FIXED NOTE $343,691.54 $1,892,841.30 $61,363,270.73
Total by Class $2,182,801.51 $8,636,729.27
PERIOD CLASS CUST INTEREST PRINCIPAL BALANCE
199807 ARMS NOTE $116,325.00 $628,419.34 $29,371,580.66
199808 ARMS NOTE $147,105.73 $251,810.45 $29,119,770.21
199809 ARMS NOTE $150,347.06 $277,419.09 $28,842,351.12
199810 ARMS NOTE $134,409.36 $454,875.65 $28,387,475.47
199811 ARMS NOTE $131,681.05 $1,165,942.13 $27,221,533.34
199812 ARMS NOTE $122,382.83 $3,547,181.68 $23,674,351.66
Total by Class $802,251.03 $6,325,648.34
Total Class R Certificates: $162,543.01
Factor Information Per $1,000
PRINCIPAL INTEREST ENDING NOTE INIT NOTE CURR NOTE
CLASS DISTRIBUTION DISTRIBUTION BALANCE RATE RATE
FIXED NOTE 123.38184671 31.18287871 876.61815329 6.52000% 6.52000%
ARMS NOTE 210.85494466 26.74170100 789.14505533 5.81625% 5.22094%
Per $1,000
NOTE DISTRIBUTION: $17,947,430.15 179.47
SCHEDULED PRINCIPAL: $401,101.51
PREPAYMENTS & PREFUNDING ACT. REMAINDER: $13,472,725.64
SUBORDINATION INCREASE: $1,088,550.46
--------------
TOTAL PRINCIPAL DISTRIBUTION: $14,962,377.61 149.62
TOTAL INTEREST DISTRIBUTION: $2,985,052.54
INSURED PAYMENT
FIXED RATE NOTE: 0.00
ADJUSTABLE RATE NOTE: 0.00
LOAN PURCHASE PRICES
FIXED RATE NOTE: $1,007,037.53
ADJUSTABLE RATE NOTE: $3,741,806.56
SUBSTITUTION AMOUNTS
FIXED RATE NOTE: 0.00
ADJUSTABLE RATE NOTE: 0.00
SUBORDINATION REDUCTION AMOUNT
FIXED RATE NOTE: 0.00
ADJUSTABLE RATE NOTE: 0.00
CURRENT REALIZED LOSSES
FIXED RATE NOTE: 0.00
ADJUSTABLE RATE NOTE: 0.00
CUMULATIVE REALIZED LOSSES
FIXED RATE NOTE: 0.00
ADJUSTABLE RATE NOTE: 0.00
FIXED RATE NOTE NUMBER LOAN BALANCE
- --------------- ------ ------------
LOANS BOUGHT BACK PURSUANT TO SECTION 2.4
CURRENT: 0 0.00
CUMULATIVE: 0 0.00
LOANS BOUGHT BACK PURSUANT TO SECTION 2.6
CURRENT: 0 0.00
CUMULATIVE: 0 0.00
LOANS BOUGHT BACK PURSUANT TO SECTION 4.10
CURRENT: 0 0.00
CUMULATIVE: 0 0.00
ADJUSTABLE RATE NOTE NUMBER LOAN BALANCE
- -------------------- ------ ------------
LOANS BOUGHT BACK PURSUANT TO SECTION 2.4
CURRENT: 0 0.00
CUMULATIVE: 0 0.00
LOANS BOUGHT BACK PURSUANT TO SECTION 2.6
CURRENT: 0 0.00
CUMULATIVE: 0 0.00
LOANS BOUGHT BACK PURSUANT TO SECTION 4.10
CURRENT: 0 0.00
CUMULATIVE: 0 0.00
AVAILABLE FUNDS CAP CARRY-FORWARD AMOUNT: 0.00
DELINQUENT MORTGAGE LOANS(includes loans in foreclosure and bankruptcy):
FIXED RATE NOTE
AGGREGATE
CATEGORY NUMBER LOAN BALANCE PERCENTAGE
30-59 DAYS 13 $1,246,155.27 2.01%
60-89 DAYS 8 $619,726.11 1.00%
90+ DAYS 5 $492,670.06 0.79%
ADJUSTABLE RATE NOTE
AGGREGATE
CATEGORY NUMBER LOAN BALANCE PERCENTAGE
30-59 DAYS 4 $537,660.49 2.23%
60-89 DAYS 5 $411,996.26 1.71%
90+ DAYS 5 $417,648.87 1.74%
LOANS IN FORECLOSURE(included in delinquencies above):
FIXED RATE NOTE AGGREGATE
NUMBER LOAN BALANCE PERCENTAGE
22 $2,039,675.38 3.29%
ADJUSTABLE RATE NOTE AGGREGATE
NUMBER LOAN BALANCE PERCENTAGE
11 $946,377.78 3.93%
LOANS IN BANKRUPTCY(included in delinquencies above):
FIXED RATE NOTE AGGREGATE
NUMBER LOAN BALANCE PERCENTAGE
2 $139,181.40 0.22%
ADJUSTABLE RATE NOTE AGGREGATE
NUMBER LOAN BALANCE PERCENTAGE
0 $0.00 0.00%
REO PROPERTIES(included in delinquencies above):
FIXED RATE NOTE AGGREGATE
NUMBER LOAN BALANCE PERCENTAGE
0 $0.00 0.00%
ADJUSTABLE RATE NOTE AGGREGATE
NUMBER LOAN BALANCE PERCENTAGE
0 $0.00 0.00%
ENDING AGGREGATE LOAN BALANCE
FIXED RATE NOTE: $62,063,270.73
ADJUSTABLE RATE NOTE: $24,063,950.80
BOOK VALUE OF REO PROPERTY:
FIXED RATE NOTE: 0.00
ADJUSTABLE RATE NOTE: 0.00