UNITED STATES
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 for the fiscal year ended December 31, 2004
[ ] 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 333-111379-17
FINANCIAL ASSET SECURITIES CORP.
(AS DEPOSITOR UNDER THE POOLING AND SERVICING AGREEMENT,
DATED AS OF JULY 1, 2004, PROVIDING FOR THE ISSUANCE OF
CHEC LOAN TRUST 2004-1
ASSET-BACKED CERTIFICATES, SERIES 2004-1)
(Exact name of registrant as specified in its charter)
Delaware 06-1442101
(State or other jurisdiction of I.R.S. Employer
incorporation or organization) Identification No.)
600 Steamboat Road,
Greenwich, Connecticut 06830
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code :(203) 625-2700
CHEC LOAN TRUST 2004-1
ASSET-BACKED CERTIFICATES, SERIES 2004-1
(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
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, the Company, the Servicer, or the Trustee, in each case if applicable, 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, Related Stockholder Matters
and Issuer Purchases of Equity Securities.
The Trust does not issue stock. There is currently no established secondary
market for the Certificates. As of December 31, 2004, the number of holders of
each Class of Offered Certificates was 30.
Item 6. Selected Financial Data.
Not Applicable.
Item 7. Management's Discussion and Analysis of Financial condition and
Results of Operation.
Not Applicable.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
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.
Item 9A. Controls and Procedures.
Not Applicable.
Item 9B. Other Information.
None.
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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.
Not Applicable.
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.
(a) The following documents are filed as part of this report:
(1) Financial Statements:
Not Applicable.
(2) Financial Statement Schedules:
Not Applicable.
(3) Exhibits:
Rule 13a-14(a)/15d-14(a) Certification, filed as 33.1 hereto.
Annual Summary Statement filed as Exhibit 99.1 hereto.
Annual Independent Accountants' Servicing Report
with Management Assertion, filed as Exhibit 99.2 hereto.
Annual Servicer's Statement as to Compliance, filed as Exhibit 99.3, hereto.
(b) Exhibits to this report are listed in Item (15)(a)(3)above.
(c) Not Applicable.
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CHEC LOAN TRUST 2004-1
ASSET-BACKED CERTIFICATES, SERIES 2004-1
- --------------------------------------------------------
SIGNATURE
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.
FINANCIAL ASSET SECURITIES CORP.
By: /s/ Robert McGinnis
-----------------------------
Name: Robert McGinnis
Title: President
Date: March 30, 2005
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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
33.1 Rule 13a-14(a)/15d-14(a) Certification
99.1 Annual Summary Statement
99.2 Annual Independent Accountant's Servicing Report
with Management Assertion
Centex Home Equity Company, LLC, as Servicer
99.3 Annual Servicer's Statement of Compliance
Centex Home Equity Company, LLC, as Servicer
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<page>
EXHIBIT 31.1
Annual Rule 13a-14(a)/15d-14(a) Certification
I, Robert McGinnis, certify that:
l. I have reviewed this annual report on Form 10-K, and all reports on Form
8-K containing distribution and servicing reports filed in respect of periods
included in the year covered by this annual report, of CHEC Loan Trust 2004-1,
Asset-Backed Certificates, Series 2004-1;
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. 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: Centex Home Equity
Company, LLC and JPMorgan Chase Bank, N.A.
FINANCIAL ASSET SECURITIES CORP.
/s/ Robert McGinnis
-----------------------
Name: Robert McGinnis
Title: President
Date: March 30, 2005
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EXHIBIT 99.1
Annual Summary Statement
----------------
<table>
<s> <c> <c>
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CUSIP ORIGINAL PAID PAID TOTAL PAID ENDING PRIN CERT POOL FACTOR
PRINCIPAL PRINCIPAL INTEREST BALANCE (12/31/04 Per 1000)
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162765AA9 80,000,000.00 42,632,666.89 940,039.00 43,572,705.89 37,367,333.11 467.09166388
162765AB7 140,000,000.00 0.00 2,166,898.60 2,166,898.60 140,000,000.00 1,000.00000000
162765AC5 32,157,000.00 0.00 541,133.08 541,133.08 32,157,000.00 1,000.00000000
162765AN1 3,094,000.00 0.00 114,718.85 114,718.85 3,094,000.00 1,000.00000000
162765AP6 3,094,000.00 0.00 114,718.85 114,718.85 3,094,000.00 1,000.00000000
162765AD3 9,746,000.00 0.00 170,582.74 170,582.74 9,746,000.00 1,000.00000000
162765AE1 8,818,000.00 0.00 157,316.19 157,316.19 8,818,000.00 1,000.00000000
162765AF8 5,569,000.00 0.00 101,232.43 101,232.43 5,569,000.00 1,000.00000000
162765AG6 4,796,000.00 0.00 100,130.16 100,130.16 4,796,000.00 1,000.00000000
162765AH4 4,486,000.00 0.00 96,686.08 96,686.08 4,486,000.00 1,000.00000000
162765AJ0 4,486,000.00 0.00 102,742.16 102,742.16 4,486,000.00 1,000.00000000
162765AK7 3,713,000.00 0.00 96,316.51 96,316.51 3,713,000.00 1,000.00000000
162765AL5 3,249,000.00 0.00 87,569.79 87,569.79 3,249,000.00 1,000.00000000
162765AM3 3,094,000.00 0.00 114,718.85 114,718.85 3,094,000.00 1,000.00000000
N/C101711 3,093,958.10 0.00 8,483,431.23 8,483,431.23 3,093,958.10 1,000.00000000
N/C101712 100.00 0.00 504,366.76 504,366.76 100.00 1,000.00000000
N/C101713 0.00 0.00 0.00 0.00 0.00 1,000.00000000
N/C101714 0.00 0.00 0.00 0.00 0.00 1,000.00000000
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</table>
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<page>
EXHIBIT 99.2
Annual Independent Accountant's Servicing Report
with Management Assertion
----------------
Ernst & 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
The Members 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 nine month period ended December 31, 2004. Management is
responsible for the Companies' 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 that the Companies complied with the
aforementioned requirements during the nine month period ended December 31, 2004
is fairly stated, in all material respects.
Ernst & Young LLP
March 16, 2005
<page>
EXHIBIT 99.2
Report of Management as to Compliance with Minimum Servicing Standards
-----------
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
internal 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 December 31, 2004 and for the nine-month period then
ended. Based on this evaluation, we assert that during the nine-month period
ended December 31, 2004, 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 $25 million and $6 million, respectively.
/s/ Jay Bray
- ------------------------
Jay Bray
Executive Vice President - Chief Financial Officer
/s/ Jerry Berrens
- ------------------------
Jerry Berrens
Vice President - Controller
March 16, 2005
<page>
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EXHIBIT 99.3
Annual Statement as to Compliance
----------------
ANNUAL STATEMENT AS TO COMPLIANCE
CHEC Loan Trust 2004-1
Asset-Backed Certificates Series 2004-1
I, Greg Oniu, hereby certify that I am a duly appointed Senior Vice President of
Centex Home Equity Company, LLC (the "Servicer"), and further certify as
follows:
1. This certification is being made pursuant to the terms of the Pooling
and Servicing Agreement, dated as of July 1, 2004, (the "Agreement"), among
Financial Asset Securities Corp., as depositor, Centex Home Equity Company, LLC,
as Servicer and JP Morgan Chase Bank, as Trustee.
2. I have reviewed the activities of the Servicer during the preceding year
and the Servicer's performance under the Agreement and to the best of my
knowledge, based on such review, the Servicer has fulfilled all of its
obligations under the Agreement throughout the year.
Capitalized terms not otherwise defined herein have the meanings set forth
in the Agreement.
Dated: March 15, 2005
IN WITNESS WHEREOF, the undersigned has executed this Certificate as of March
15, 2005.
By: /s/ Greg Oniu
---------------
Name: Greg Oniu
Title: Senior Vice President
I, Anne Sutherland, a (an) Assistant Secretary of the Servicer, hereby
certify that Greg Oniu is a duly elected, qualified, and acting Senior Vice
President of the Servicer and that the signature appearing above is his/her
genuine signature.
IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
March 15, 2005.
By: /s/ Anne Sutherland
---------------
Title: Assistant Secretary
Name: Senior Vice President
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