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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-K
[X] Annual report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the fiscal year ended December 31, 2003
[ ] 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 333-69800-05
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CHEC FUNDING, LLC
on behalf of itself and the Trust described below with
respect to which it is the depositor
(Exact name of registrant as specified in its charter)
Delaware 76-2851805
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation)
2728 North Harwood
Dallas, Texas 75201
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code : (214) 981-5000
Centex Home Equity Loan Asset-Backed Certificates, Series 2003-A,
issued by Centex Home Equity Loan Trust 2003-A
(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 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 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]
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Exchange Act Rule 12b-2). Yes No [X]
Documents incorporated by reference: None
CHEC FUNDING, LLC
Centex Home Equity Loan Trust 2003-A
Centex Home Equity Loan Asset-Backed Certificates, Series 2003-A
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PART I
Item 1. Business
Not applicable.
Item 2. Properties
Not applicable.
Item 3. Legal Proceedings
The Registrant is not aware of any material legal proceeding with
respect to itself, the Servicer or the Trustee, as related to the Trust.
Item 4. Submission of Matters to a Vote of Security Holders
No matter was submitted to a vote or consent of Holders of the Offered
Certificates during the fiscal year covered by this report.
PART II
Item 5. Market for Registrant's Common Equity and Related Stockholder Matters
There is currently no established public trading market for the
certificates issued by the Trust.
There are less than 300 participants in the DTC System.
As of December 31, 2003 the total number of such DTC participants
with respect to each class of certificates is set forth below:
Class AF_1 4
Class AF_2 1
Class AF_3 2
Class AF_4 8
Class AF_5 1
Class AF_6 3
Class AV_1 9
Class AV_2 4
Class M_1 1
Class M_2 6
Class M_3 3
Class B 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
Financial Disclosure
There was no change of accountants or disagreement with accountants on
any matter of accounting principles or practices or financial disclosure.
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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 certificates are represented by one or more certificates registered in
the name of Cede & Co., the nominee of The Depository Trust Company. A
beneficial owner of certificates is not entitled to receive a definitive
certificate representing such certificates, except in limited
circumstances. Accordingly, Cede & Co. is the sole holder of certificates,
which it holds on behalf of brokers, dealers, banks and other participants
in the DTC system. Such participants may hold certificates for their own
accounts or for the accounts of their customers.
The address of Cede & Co. is:
Cede & Co.
c/o The Depository Trust Company
Seven Hanover Square
New York, New York 10004
Item 13. Certain Relationships and Related Transactions
No reportable transactions have occurred.
Item 14. Principal Accounting Fees and Services
Not applicable.
PART IV
Item 15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
(a) The following documents are filed as part of this report:
(1) Financial Statements:
Omitted.
(2) Financial Statement Schedules:
Omitted.
(3) Exhibits:
Rule 13a-14(a)/15d-14(a) Certification filed as Exhibit 33.1 hereto.
Annual Summary Statement filed as Exhibit 99.1 hereto.
Annual Independent Accountant's Report filed as Exhibit 99.2 hereto.
Annual Statement as to Compliance filed as Exhibit 99.3 hereto.
(b) Reports on Form 8-K: The following Current Reports on Form 8-K with respect
to the Trust were filed by the Registrant for the last quarter of 2003.
Current Reports on Form 8-K dated October 27, 2003, November 25, 2003,
and December 26, 2003 were filed for the purpose of filing the Monthly
Statement sent to the Holders of the Offered Certificates for payments
made on the same date. The items reported in such Current Report were
Item 5 and Item 7.
(c) Exhibits to this report are listed in Item (15)(a)(3) above.
(d) Not applicable.
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CHEC FUNDING, LLC
Centex Home Equity Loan Trust 2003-A
Centex Home Equity Loan Asset-Backed Certificates, Series 2003-A
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SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Servicer of the Trust has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
Centex Home Equity Company, LLC, as Servicer of the
Centex Home Equity Loan Trust 2003-A
By:
/s/ Jesse K. Bray
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Name: Jesse K. Bray
Title: Executive Vice President/Chief Financial Officer
Date: March 30, 2004
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<page>
Supplemental Information to be Furnished With Reports Filed Pursuant to Section
15(d) of the Act by Registrants Which Have Not Registered Securities Pursuant to
Section 12 of the Act
The registrant has not sent an annual report or proxy material to its security
holders. The registrant will not be sending an annual report or proxy material
to its security holders subsequent to the filing of this form.
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EXHIBIT INDEX
Exhibit Description
31.1 Rule 13a-14(a)/15d-14(a) Certification
99.1 Annual Summary Statement
99.2 Annual Independent Accountant's Report
99.3 Annual Statement as to Compliance
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EXHIBIT 31.1
Rule 13a-14(a)/15d-14(a) Certification
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SARBANES-OXLEY CERTIFICATION
I, Jesse K. Bray, 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 Centex Home Equity Loan
Trust 2003-A;
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
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 JPMorgan Chase Bank, as
Trustee.
By:
/s/ Jesse K. Bray
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Name: Jesse K. Bray
Company: Centex Home Equity Company, LLC as Servicer
Title: Executive Vice President/Chief Financial Officer
Date: March 30, 2004
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<page>
EXHIBIT 99.1
Annual Summary Statement
<table>
<s> <c> <c>
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CLASS CUSIP ORIGINAL PAID PAID TOTAL PAID ENDING PRIN CERT POOL FACTOR
PRINCIPAL PRINCIPAL INTEREST BALANCE (12/26/03 Per 1000)
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CTX03A-AF-1 152314GH7 $ 85,250,000.00 $ 52,891,252.74 $ 1,130,169.79 $ 54,021,422.53 $ 32,358,747.26 379.57474792
CTX03A-AF-2 152314GJ3 $ 15,500,000.00 $ 0.00 $ 306,047.50 $ 306,047.50 $ 15,500,000.00 1,000.00000000
CTX03A-AF-3 152314GK0 $ 47,400,000.00 $ 0.00 $ 1,176,626.00 $ 1,176,626.00 $ 47,400,000.00 1,000.00000000
CTX03A-AF-4 152314GL8 $ 63,000,000.00 $ 0.00 $ 2,165,625.00 $ 2,165,625.00 $ 63,000,000.00 1,000.00000000
CTX03A-AF-5 152314GM6 $ 6,110,000.00 $ 0.00 $ 237,531.36 $ 237,531.36 $ 6,110,000.00 1,000.00000000
CTX03A-AF-6 152314GN4 $ 24,200,000.00 $ 0.00 $ 810,579.00 $ 810,579.00 $ 24,200,000.00 1,000.00000000
CTX03A-AV-1 152314GP9 $ 129,053,000.00 $ 50,700,469.22 $ 1,507,568.38 $ 52,208,037.60 $ 78,352,530.78 607.13451667
CTX03A-AV-2 152314GQ7 $ 128,987,000.00 $ 54,534,370.67 $ 1,499,205.31 $ 56,033,575.98 $ 74,452,629.33 577.21033383
CTX03A-M-1 152314GR5 $ 42,000,000.00 $ 0.01 $ 708,357.71 $ 708,357.72 $ 41,999,999.99 999.99999976
CTX03A-M-2 152314GS3 $ 31,500,000.00 $ 0.00 $ 847,843.28 $ 847,843.28 $ 31,500,000.00 1,000.00000000
CTX03A-M-3 152314GT1 $ 19,500,000.00 $ 0.00 $ 691,797.03 $ 691,797.03 $ 19,500,000.00 1,000.00000000
CTX03A-B 152314GU8 $ 7,500,000.00 $ 0.00 $ 325,398.69 $ 325,398.69 $ 7,500,000.00 1,000.00000000
CTX03A-AIO 152314GV6 $ 189,036,000.00 $ 0.00 5,487,000.00 $ 5,487,000.00 $ 189,036,000.00 1,000.00000000
CTX03A-XIO N/A $ 589,108,047.25 $ 0.00 $ 11,320,783.06 $11,320,783.06 $ 589,108,047.25 1,000.00000000
CTX03A-R-1 N/A $ 0.01 $ 0.00 $ 0.00 $ 0.00 $ 0.01 1,000.00000000
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TOTAL TRUSTEE FEE 2003 $12,000
TOTAL SERVICING FEE 2003 $2,114,541
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EXHIBIT 99.2
Annual Independent Accountant's Report
Ernest & Young LLP
Dallas, Texas
Report on Management's Assertion on Compliance
With Minimum Servicing Standards Set Forth in the
Uniform Single Attestation Program for Mortgage Bankers
Report of Independent Accountants
Board of Directors of
Centex Home Equity Company, LLC and Subsidiaries and
CTX Mortgage Funding, LLC
We have examined management's assertion, included in the accompanying report
titled Report of Management, that Centex Home Equity Company, LLC and
subsidiaries and CTX Mortgage Funding, LLC (collectively, the Companies)
complied with the minimum servicing standands set forth in the Mortgage Bankers
Association of America's Uniform Single Attestation Program for Mortgage Bankers
(USAP) during the period ended March 31, 2003. Management is responsible for
AAMG's compliance with those requirements. Our responsibility is to express an
opinion on management's assertions about the Companies' compliance based on our
examination.
Our examination was made in accordance with attestation standards established by
the American Institute of Certified Pubic Accountants and, accordingly, included
examining, on a test basis, evidence about the Companies' compliance with those
requirements 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 on the Companies' compliance with specified
requirements.
In our opinion, management's assertion, the Companies complied with the
aforementioned requirements during the period ended March 31, 2003, is fairly
stated, in all material respects.
This report is intended solely for the information and use of the audit
committee, management and the Companies' private investors and is not intended
to be and should not be used by anyone other than these specified parties.
Ernest & Young LLP
May 16, 2003
Centex Home Equity Corporation
Management's Assertion on Compliance With Minimum Servicing
Standards Set Forth in the
Uniform Single Attestation Program for Mortgage Bankers
Report of Management
We, as members of management of Centex Home Equity Company, LLC and Subsidiaries
and CTX Mortgage Funding, LLC (the Companies), are responsible for complying
with the minimum servicing standards as set forth in the Mortgage Bankers
Association of America's Uniform Single Attestation Program for Mortgage Bankers
(USAP). We are also responsible for establishing and maintaining effective
interenal control over compliance with these standards. We have performed an
evaluation of the Companies' compliance with the minimum servicing standards as
set forth in the USAP as of March 31, 2003 and for the period then ended. Based
on this evaluation, we assert that during the year ended March 31, 2003, the
Companies complied, in all material respects, with the minimum servicing
standards set forth in the USAP.
As of and for this same period, the Companies had in effect a fidelity bond in
the amount of $40 million and an errors and omissions policy in the amount of $6
million.
/s/ Jay Bray
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Jay Bray
Executive Vice President,
Chief Financial Officer
/s/ Bryan Marshall
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Bryan Marshall
Senior Vice President, Finance
May 16, 2003
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99.3
Annual Statement as to Compliance
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ANNUAL STATEMENT AS TO COMPLIANCE
As of and for the fiscal year ended March 31, 2003, pursuant to Section
8.16 of the Pooling and Servicing Agreement, the undersigned on behalf of Centex
Home Equity Company, LLC has performed the reviews of the activities of the
Servicer during such preceding fiscal year end of performance under the Pooling
and Servicing Agreement, for Centex Home Equity Loan Trust 2003-A under my
supervision.
To the best of my knowledge, based on such review, the Servicer has
fulfilled all obligations under the Pooling and Servicing Agreement for the
fiscal year above referenced.
/s/ Anthony H. Barone
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Anthony H. Barone
President and Chief Executive Officer
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