SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
Pursuant to Section 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, 2002
or
[ ] Transition Report Pursuant to Section 13 or 15d of the Securities
Exchange Act of 1934
For the transition period from _____________ to ________
Commission file Number 333-53168
Residential Asset Funding Corporation
(Exact name of registrant as specified in its charter)
North Carolina 56-2064715
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
301 South College Street, DC-06
Charlotte, NC 28288
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: 704-374-4868
C-BASS MORTGAGE LOAN ASSET-BACKED
CERTIFICATES
Series 2002-CB4
(Title of each class of securities covered by this Form)
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 or 15(d) of the Securities 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.
X - Yes No
PART I
Item 1. Business
Not applicable.
Item 2. Properties
Not applicable on reliance of Relief Letters
Item 3. Legal Proceedings
There were no legal proceedings.
Item 4. Submission of Matters to a Vote of Security Holders
There were no matters submitted to a vote of the Security Holders.
PART II
Item 5. Market for Registrant's Common Equity and Related Stockholder matters
There is no established public trading market for the notes.
Below are the number of Noteholders or Certificateholders
of record as of the end of the reporting year.
C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
Series 2002-CB4 Class AV-1 1
Series 2002-CB4 Class AF-1 2
Series 2002-CB4 Class AF-2 9
Series 2002-CB4 Class AF-3 6
Series 2002-CB4 Class AF-4 1
Series 2002-CB4 Class M-1 1
Series 2002-CB4 Class M-2 2
Series 2002-CB4 Class B-1 4
Series 2002-CB4 Class B-2 2
Series 2002-CB4 Class B-3 1
Series 2002-CB4 Class A-IO 1
Series 2002-CB4 Class N 2
Series 2002-CB4 Class X 2
Item 6. Selected Financial Data.
Not applicable.
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Not applicable.
Item 8. Financial Statements and Supplementary Data.
Not applicable.
Item 9. Changes in and Disagreements with Accountants on Accounting and
Not applicable.
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
Not applicable.
Item 13. Certain Relationships and Related Transactions.
Not applicable.
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
(a) 1. Not Applicable
2. Not Applicable
3. Exhibits
99.1 Annual Summary Statement
99.2 Annual Statement as to Compliance.
99.3 Annual Independent Public
Accountant's Servicing Report.
99.4 Management Assertation on USAP
(b) Reports on Form 8-K
The registrant has filed Current Reports on Form 8-K with the
Securities and Exchange Commission dated:
September 25, 2002, October 25, 2002;
November 25, 2002; December 26, 2002
(c) See (a) 3 above
(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.
C-BASS MORTGAGE LOAN ASSET-BACKED
CERTIFICATES
Series 2002-CB4
/s/ Larry B. Litton, Sr.
Name: Larry B. Litton, Sr.
Title: President & CEO
Date: March 14, 2003
Sarbanes-Oxley Certification
I, Larry B.Litton, Sr., President & CEO, certify that:
1. I have reviewed this annual report on Form 10-K, and all reports on Form 8-K
containing distribution or servicing reports filed in respect of periods
included in the year covered by this annual report, of
C-BASS MORTGAGE LOAN ASSET-BACKED
CERTIFICATES
Series 2002-CB4
2. Based on my knowledge, the information in these reports, taken as a whole,
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading
as of the last day of the period covered by this annual report;
3. Based on my knowledge, the distribution or servicing information required
to be provided to the trustee by the servicer under the pooling and servicing,
or similar, agreement, for inclusion in these reports is included
in these reports;
4. I am responsible for reviewing the activities performed by the servicer
under the pooling and servicing, or similar, agreement and based upon my
knowledge and the annual compliance review required under that agreement,
and except as disclosed in the reports, the servicer has fulfilled its
obligations under that agreement; and
4. Based on my knowledge and upon the annual compliance statement
included in the report and required to be delivered to the trustee in
accordance with the terms of the pooling and servicing, or similar, agreement,
and except as disclosed in the reports, the servicer has fulfilled its
obligations under the servicing agreement; and
5. The reports disclose all significant deficiencies relating to the servicer's
compliance with the minimum servicing standards based upon the report
provided by an independent public accountant, after conducting a review
in compliance with the Uniform Single Attestation Program for Mortgage
Bankers or similar procedure, as set forth in the pooling and servicing,
or similar, agreement, that is included in these reports.
In giving the certifications above, I have reasonably relied on information
provided to me by the following unaffiliated parties:
U.S. Bank, National Association, as Trustee
Date: March 14, 2003
Signature: /s/ Larry B. Litton, Sr.
Larry B. Litton, Sr.
Company: Litton Loan Servicing LP
Title: President & CEO
EXHIBIT INDEX
Exhibit NumberDescription
99.1 Annual Summary Statement
99.2 Annual Statement of Compliance
99.3 Report of Independent Accountants
99.4 Management Assertion on USAP
EXHIBIT 99.1 -- Summary of Aggregate Amounts or End of Year
Amounts for the period ending December 31, 2002
C-BASS MORTGAGE LOAN ASSET-BACKED
CERTIFICATES
Series 2002-CB4
STATEMENT TO CERTIFICATEHOLDERS
Distribution Date: 12/26/2002
Beginning
Certificate
Class Cusip Balance(1) Principal Interest Losses
AV-1 31392T3Y1 90650000.00 7279201.59 550013.53 0.00
AF-1 12489WEZ3 93800000.00 19086102.89 553727.03 0.00
AF-2 12489WFA7 33700000.00 0.00 405523.32 0.00
AF-3 12489WFB5 12100000.00 0.00 182589.00 0.00
AF-4 12489WFC3 12710000.00 0.00 218993.32 0.00
M-1 12489WFD1 16930000.00 0.00 139748.92 0.00
M-2 12489WFE9 13990000.00 0.00 141342.73 0.00
B-1 12489WFF6 12520000.00 0.00 151739.78 0.00
B-2 12489WFG4 2940000.00 0.00 38596.70 0.00
B-3 NA 5156836.00 0.00 107564.79 0.00
A-IO* 12489WEY6 112000000.00 0.00 2426666.68 N/A
N* NA 11200000.00 1301179.20 357510.93 N/A
X NA N/A 0.00 0.00 N/A
Total 294496836.00 27666483.00 5274016.73 0.00
* - Notional Balance
Ending
Certificate
Class Balance
AV-1 83370798.41
AF-1 74713897.11
AF-2 33700000.00
AF-3 12100000.00
AF-4 12710000.00
M-1 16930000.00
M-2 13990000.00
B-1 12520000.00
B-2 2940000.00
B-3 5156836.00
A-IO* 112000000.00
N* 9898820.80
X N/A
Total 268131531.52
AMOUNTS PER $1,000 UNIT
Ending
Certificate
Class Principal Interest Total Balance Losses
AV-1 80.30007270 6.06744104 86.36751373 919.69992730 0.00000000
AF-1 203.47657665 5.90327324 209.37984989 796.52342335 0.00000000
AF-2 0.00000000 12.03333294 12.03333294 1000.00000000 0.00000000
AF-3 0.00000000 15.09000000 15.09000000 1000.00000000 0.00000000
AF-4 0.00000000 17.23000157 17.23000157 1000.00000000 0.00000000
M-1 0.00000000 8.25451388 8.25451388 1000.00000000 0.00000000
M-2 0.00000000 10.10312580 10.10312580 1000.00000000 0.00000000
B-1 0.00000000 12.11979073 12.11979073 1000.00000000 0.00000000
B-2 0.00000000 13.12812925 13.12812925 1000.00000000 0.00000000
B-3 0.00000000 20.85867962 20.85867962 1000.00000000 0.00000000
A-IO 0.00000000 21.66666679 21.66666679 1000.00000000 0.00000000
N 116.17671429 31.92061875 148.09733304 883.82328571 0.00000000
X 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
Current
Pass-Through
Class Interest Rate
AV-1 1.52000%
AF-1 1.56000%
AF-2 3.61000%
AF-3 4.52700%
AF-4 5.16900%
M-1 2.13000%
M-2 2.68000%
B-1 3.28000%
B-2 3.58000%
B-3 5.88000%
A-IO 6.50000%
N 10.00000%
X NA
Distribution Date: 26-Dec-2002
Distribution Statement
Pooling and Servicing Agreement Dated August 1, 2002
i) Distributions to the Holders See Page 1
ii) Class X Distribution Amount See Page 1
iii) Overcollateralization Amount (before distributions) -0.24
Overcollateralization Release Amount 0.00
Overcollateralization Deficiency (after distributions) 2208726.27
Overcollateralization Target Amount 2208726.27
Overcollateralization Amount (after distributions) 1438443.22
Amount of Excess Interest 2876886.91
Amount of Excess Cashflow 2876886.91
iv) Servicing Fees Group 1 Group 2 Total
Servicing Fees 147874.46 329077.97 476952.44
Accrued and Unpd. Spec. Serv. Fees 0.00 0.00 0.00
Special Servicing Fees 10050.00 9150.00 19200.00
PMI Premiums 97468.42 236122.40 333590.81
v) Advances 172502.42
vi) Ending Pool Balance 83762653.78 185807320.95 269569974.73
vii) Loan Count 775 2002 2777
Wt'd avg Rem Term 335 306 318
Wt'd avg Mortage Rate 9.31760% 8.94537% 9.09388%
viii) Delinquency And Foreclosure Information:
Group 1 All Categories Bankruptcy
Number Balance Number Balance
Current 696 76405470.95 0 0.00
30 days delinquent: 35 3705124.89 0 0.00
60 days delinquent: 18 1539411.79 1 78860.17
90 days delinquent: 25 2073052.36 2 255986.33
Foreclosure
Number Balance
Current 0 0.00
30 days delinquent: 0 0.00
60 days delinquent: 0 0.00
90 days delinquent: 9 685961.26
Group 2 All Categories Bankruptcy
Number Balance Number Balance
Current 1869 174166534.08 0 0.00
30 days delinquent: 70 6166421.84 5 301341.25
60 days delinquent: 30 3069361.17 2 130583.79
90 days delinquent: 32 2320268.00 3 192547.34
Foreclosure
Number Balance
Current 0 0.00
30 days delinquent: 0 0.00
60 days delinquent: 0 0.00
90 days delinquent: 5 500047.03
ix) Loans that became REO Properties:
x) Total Book Value of REO Properties:
REO Properties Group 1
Loan # - Unpaid Principal Balance - Scheduled Principal Balance - Book Value
8539280 39746.27 39593.79 39593.79
REO Properties Group 2
Loan # - Unpaid Principal Balance - Scheduled Principal Balance - Book Value
8017014 85099.87 84735.86 84735.86
Group 1 Group 2 Total
xi) Prepayments 6660907.96 17192571.08 23853479.04
xii) Current Period Prepayment Penalties 239446.67
Aggregate Prepayment Penalties 239446.67
Prepayment Penalties allocable to Classes N 239446.67
Prepayment Penalties allocable to Classes X 0.00
Group 1 Group 2 Total
xiii) Realized Losses 0.00 0.00 0.00
Cumulative Realized Losses 0.00 0.00 0.00
xiv) Realized Loss Allocations See Page 1
xv) Accrued Certificate Interest See Page 1
xvi) Prepayment Interest Shortfall not covered by the servicer
0.00 0.00 0.00
xvii) Trustee Fees 2957.49 6583.93 9541.42
xviii)LIBOR Carryover Amounts
Current Cummulative
AV-1 0.00 0.00
AF-1 0.00 0.00
AF-2 0.00 0.00
AF-3 0.00 0.00
AF-4 0.00 0.00
M-1 0.00 0.00
M-2 0.00 0.00
B-1 0.00 0.00
B-2 0.00 0.00
xix) Overcollateralization Deficiency (after distribution) 770283.06
xx) Has Trigger Event has occurred? NO
Cummulative Realized Losses Percentage 0.00000%
xxi) Available Funds Group 1 Group 2 Total
Scheduled Net Interest 2523246.58 5327307.12 7850553.70
Scheduled Principal 234722.18 838659.81 1073381.99
Unscheduled Principal 6660907.96 17192571.08 23853479.04
Available Funds 9418876.72 23358538.01 32777414.73
xxii) Class Interest Rate See Page 1
xxiii)Liquidation Report
Loan # - Unpaid Prin. Balance - Scheduled Prin. - Liquidation Proceeds - Loss
NONE
xxiv) Mortgage Loans Purchased by Servicer 0.00
xxv) Mortgage Loans Re-Purchased by Servicer 0.00
xxvi) Guarantee Fee 47619.58
xxvii)Maximum Cap Rate 11.17480%
xxviiiUnpaid LIBOR Carryover Amount - AV-1 0.00
LIBOR Carryover Amount - AV-1 0.00
xxix) Current Claims under PMI Policy 0.00
Cummulative Claims under PMI Policy 0.00
xxx) Current Denied Claims under PMI Policy 0.00
Cummulative Denied Claims under PMI Policy 0.00
xxxi) Distrib from the LIBOR Carryover Reserve Account 0.00
Distribution from the class AF-1 Interest Rate Cap 0.00
END
EXHIBIT 99.2 -- Servicer's Annual Statement of Compliance
Litton Loan Servicing LP.
An Affiliate of C-BASS
4828 Loop Central Drive
Houston, TX 77081
Telephone (713) 960-9676
Fax (713) 960-0539
March 12, 2003
Structured Finance, C-BASS 2002-4
US Bank National Association
180 East Fifth Street
St. Paul, MN 55101
RE: Asset Backed Certificates Series 2002-CB4
To Whom it May Concern:
The undersigned officer of Litton Loan Servicing LP provides the
Annual Statement as to Compliance as required by the Pooling and
Servicing Agreement for the above referenced security and certifies
that (i) a review of the activities of the Servicer during such
preceding fiscal year (or such shorter period in the case of the
first such report)and of 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 2002.
Sincerely,
/s/ Janice McClure
Janice McClure
Senior Vice President
Litton Loan Servicing, LLP
EXHIBIT 99.3 -- Report of Independent Auditors
Deloitte & Touche LLP
Suite 2300
333 Clay Street
Houston, TX 77002-4196
Tel.(713) 982-2000
Fax (713) 982-2001
www.deloitte.com
Independent Auditors' Report
To the Partners of Litton Loan Servicing LP:
We have examined management's assertion about Litton Loan
Servicing LP's (the "Company") compliance with the minimum
servicing standards identified in the Mortgage Bankers
Association of America's Uniform Single Attestation Program
for Mortgage Bankers as of and for the year ended December 31,
2002, included in the accompanying management assertion.
Management is responsible for the Company's compliance with
those minimum servicing standards. Our responsibility is to
express an opinion on management's assertion about the
Company's compliance based on our examination.
Our examination was made in accordance with standards
established by the American Institute of Certified Public
Accountants and accordingly, included examining, on a test
basis, evidence about the Company's compliance with 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 of the Company's compliance
with the minimum servicing standards.
In our opinion, management's assertion that the Company
complied with the aforementioned minimum servicing
standards as of and for the year ended December 31, 2002
is fairly stated, in all material respects.
/s/ Deloitte & Touche
January 10, 2003
99.4 Management Assertion on USAP
Litton Loan Servicing LP
An Affiliate of C-Bass
4828 Loop Central Drive, Suite 600
Houston, TX 77081
Telephone (713) 960-9676
Fax (713) 966-8830
January 10, 2003
As of December 31, 2002, Litton Loan Servicing LP
(the Company) has complied in all material respects with
the minimum servicing standards set forth in the Mortgage
Bankers Association of America's Uniform Single Attestation
Program for Mortgage Bankers. As of and for this same
period, Litton Loan Servicing LP had in effect a fidelity
bond in the amount of $15,000,000 and an errors and
omissions policy in the amount of $15,000,000.
In January 2003, the Company identified certain custodial
accounts that had not been reconciled timely during the
year ended December 31, 2002. Upon notification of this
issue, management immediately began an effort to bring these
custodial accounts current. The Company has currently
reconciled all custodial accounts, and has implemented
controls to ensure the timely and accurate reconciliation
of custodial accounts.
/s/ Larry B. Litton
Larry B. Litton
President & CEO
/s/ Janice McClure
Janice McClure
Senior Vice President