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 [FEE REQUIRED] For the fiscal year ended December 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from________________to_______________. Commission file number 33-37107-01 ADVANTA Mortgage Loan Trust 1997-4 New York 33-0788442 (State of other jurisdictio (IRS Employer incorporation or organizat Identification No.) c/o Bankers Trust Company 4 Albany Street New York, NY 10015 Registrant's telephone number, including area code: (212) 250-2500 Securities registered pursuant to Section 12(b) of the Act. Title of each class Name of each exchange on which registered: None None Securities registered pursuant to Section 12(g) of the Act: None (Title of class) Indicated 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 ($ 229.405 of this chapter) 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] State the aggregate market value of the voting stock held by non-affiliates of registrant. The aggregate market value shall be computed by reference to the price at which the stock was sold, or the average bid and asked prices of such stock, as of specified date within 60 days prior to the date of filing: $618,114,455.55 Documents Incorporated by Reference: Not Applicable PART 1 ITEM 1 - BUSINESS The ADVANTA Mortgage Loan Trust 1997-4, (the "Trust" or "Issuer") is a New York common law trust established as of December 1, 1997, pursuant to a Pooling and Servicing Agreement (the "Pooling and Servicing Agreement") between ADVANTA Mortgage Conduit Services, Inc. as sponsors (the "Sponsor") and ADVANTA Mortgage Corp. USA as Master Servicer (the "Master Servicer") (together, the "Companies") and Bankers Trust Company, acting thereunder not in its individual capacity but solely as trustee (the "Trustee"). The Issuer's only purpose is the issuance of $900,000,000.00 principal amount of ADVANTA Mortgage Loan Asset- Backed Certificates, Series 1997-4, 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 A-9, Class M-1, Class M-2 and Class B-1, (the "Certificates") and the subordinated residual certificates pursuant to the Pooling and Servicing Agreement. On December 18, 1997, the Sponsor sold $900,000,000.00 aggregate principal amount of mortgage loans (the "Mortgage Loans"), to the Issuer in exchange for the Certificates, and sold the Certificates pursuant to a public offering, the underwriting of which was co-managed by Lehman Brothers, J.P. Morgan & Co., Morgan Stanley Dean Witter & Prudential Securities Incorporated. The Mortgage Loans and the distributions thereon, along with certain insurance proceeds, certain proceeds obtained on foreclosure and any investment income earned thereon are the only significant assets of the Issuer. The Certificates represent obligations solely of the Issuer. The Certificates were registered under a Registration Statement (file no. 333-37107) on Form S-3 declared effective on October 30, 1997. ITEM 2 - PROPERTIES The Issuer neither owns nor leases any physical properties. ITEM 3 - LEGAL PROCEEDINGS The Master Servicer is not aware of any material pending legal proceedings involving either the Issuer, the Trustee, the Sponsor or the Master Servicer with respect to the Certificates or the Issuer's property. ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS No matter has been submitted to a vote of the holders of beneficial interests in the Issuer through the solicitation of proxies or otherwise. PART II ITEM 5 - MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED STOCK- HOLDER MATTERS The Trust is not an issuer of common stock in a corporation, although the Certificates represent equity interest that has voting rights. The equity of the Trust consists of the beneficial or ownership interest therein for which, to the best knowledge of the Master Servicer, there is no established public trading market. As of March 4, 1999, there were approximately 6 holders of the Class A-1 Certificates, 10 holders of the Class A-2 Certificates, 3 holders of the Class A-3 Certificates, 22 holders of the Class A-4 Certificates, 10 holders of the Class A-5 Certificates, 1 holder of the Class A-6 Certificates, 12 holders of the Class A-7 Certificates, 7 holders of the Class A-8 Certificates, 3 holders of the Class A-9 Certificates, 2 holders of the Class A-IO Certificates, 1 holder of the Class B-1 Certificates, 8 holders of the Class M-1 Certificates, and 2 holders of the Class M-2 Certificates. The number of the holders includes individual participants in security position listings. As of December 28, 1998, 12 monthly distributions had been made to the holders of the Certificates. ITEM 6 - SELECTED FINANCIAL DATA Not applicable. ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATION On December 18, 1997, the Issuer issued $146,039,000.00 aggregate principal amount of Class A-1 Certificates having an adjustable rate, and $91,159,000.00 aggregate principal amount of Class A-2 Certificates having a pass-thru rate of 6.53% per annum, $33,579,000 aggregate principal amount of Class A-3 Certificates having a pass-thu rate of 6.55% per annum, $59,837,000 aggregate principal amount of Class A-4 Certificates having a pass-thru rate of 6.66% per annum, $15,601,000 aggregate principal amount of Class A-5 Certificates having a pass-thru rate of 6.72% per annum, $41,285,000 aggregate principal amount of Class A-6 Certificates having a pass-thru rate of 7.10% per annum, $50,000,000 aggregate principal amount of Class A-7 Certificates having a pass-thru rate of 6.63% per annum, $98,000,000 aggregate principal amount of Class A-8 Certificates having an adjustable rate, $302,000,000 aggregate principal amount of Class A-9 Certificates having an adjustable rate, $17,500,000 aggregate principal amount of Class M-1 Certificates having a pass-thru rate of 7.04% per annum, $30,000,000 aggregate principal amount of Class M-2 Certificates having a pass-thru rate of 7.24% per annum, $15,000,000 aggregate principal amount of Class B-1 Certificates having a pass-thru rate of 7.54% per annum, which are collateralized by Mortgage Loans. The sale of the Mortgage Loans to the Issuer, the issuance of the Certificates and the simultaneous delivery of the Certificates to the Companies for sale pursuant to a public offering, the underwriting of which was co-managed by Lehman Brothers, J.P. Morgan & Co., Morgan Stanley Dean Witter, and Prudential Securities Incorporated has been accounted for as a sale of the Certificates. The value of the Certificates issued by the Issuer equaled the value of the Mortgage Loans conveyed to the Issuer by the Companies, plus funds held in the Prefunding Account (if any) and subsequently used to acquire additional mortgage loans. Accordingly, there was no income, expense, gain or loss resulting from the aforementioned transaction. CAPITAL RESOURCES AND LIQUIDITY The Issuer's primary sources of funds with respect to the Certificates will be receipts of interest on and principal of the Mortgage Loans, along with certain insurance proceeds, certain proceeds obtained on foreclosure and any investment income earned thereon. The respective management's of the Companies believe that the Issuer will have sufficient liquidity and capital resources to pay all amounts on the Certificates as they become due and all other anticipated expenses of the Issuer. The Issuer does not have, nor will it have in the future, any significant source of capital for payment of the Certificates and its operating expenses other than the receipt of interest on and principal of the mortgage loans, certain insurance proceeds and certain proceeds obtained on foreclosure and any payments made by the Certificate Insurer. The Issuer is a limited purpose trust. The Certificates represent obligations solely of the Issuer. ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Not applicable. ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE There were no changes of accountants or disagreements on accounting or financial disclosures between the Issuer and its accountants. PART III ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT The Issuer does not have any directors or officers. ITEM 11 - EXECUTIVE COMPENSATION Not applicable.See "Item 10-Directors and Executive Officers of the Registrant". ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT The following table sets forth (i) the name and address of each entity owning more than 5% of the outstanding principal amount of the ADVANTA Mortgage Loan Asset-Backed Certificates, Series 1997-4, Class A-1 Certificates, Class A-2 Certificates, Class A-3 Certificates, Class A-4 Certificates, Class A-5 Certificates, Class A-6 Certificates, Class A-7 Certificates, Class A-8 Certificates, Class A-9 Certificates, Class A-IO Certificates, Class B-1 Certificates, Class B-2 Certificates, and Class M-1 Certificates; (ii) the principal amount of the Class A-1 Certificates, Class A-2 Certificates, Class A-3 Certificates, Class A-4 Certificates, Class A-5 Certificates, Class A-6 Certificates, Class A-7 Certificates, Class A-8 Certificates, Class A-9 Certificates, Class A-IO Certificates, Class B-1 Certicates, Class M-1 Certificates, or Class M-2 Certificates and (iii) the percent that the principal amount of Class A-1 Certificates, Class A-2 Certificates, Class A-3 Certificates, Class A-4 Certificates, Class A-5 Certificates, Class A-6 Certificates, Class A-7 Certificates, Class A-8 Certificates, Class A-9 Certificates, Class A-IO Certificates, Class B-1 Certificates, Class M-1 Certificates or Class M-2 Certificates owned represents of the outstanding principal amount of the Class A-1 Certificates, Class A-2 Certificates, Class A-3 Certificates, Class A-4 Certificates, Class A-5 Certificates, Class A-6 Certificates, Class A-7 Certificates, Class A-8 Certificates, Class A-9 Certificates, Class A-IO Certificates, Class B-1 Certificates, Class M-1 Certificates, or Class M-2 Certificates, respectively. The information set forth in the table is based upon information obtained by the Issuer from Depository Trust Company. The Master Servicer is not aware of any Schedules 13D or 13G filed with the Securities and Exchange Commission in respect of the Certificates. Amount Owned (All Dollar Amounts are in Thousands) Name and Address Principal Percent Class A-1 Certificates Bank of New York c/o Diana Karenbauer 925 Patterson Plank Road Secaucus, NJ 07094 28.27% Boston Safe Deposit and Trust Company c/o Mellon Bank N.A. Three Mellon Bank Center, Room 153-3015 Pittsburgh, PA 15259 19.65% Bankers Trust Company c/o BT Services Tennessee, Inc. 648 Grassmere Park Drive Nashville, TN 13.46% Chase Manhattan Bank Orma Trim, Supervisor 4 New York Plaza, 13th Floor New York, NY 10004 34.24% Class A-2 Certificates Boston Safe Deposit and Trust Company c/o Mellon Bank N.A. Three Mellon Bank Center, Room 153-3015 Pittsburgh, PA 15259 12.83% Chase Manhattan Bank Orma Trim, Supervisor 4 New York Plaza, 13th Floor New York, NY 10004 71.70% First Union National Bank Joyce Osborne, AVP 1525 West WT Harris Blvd 3A4 Charlotte, NC 28288 11.30% Class A-3 Certificates Bankers Trust Company c/o BT Services Tennessee, Inc. 648 Grassmere Park Drive Nashville, TN 41.93% Chase Manhattan Bank / Chemical 4 New York Plaza Proxy Department 13th Floor New York, NY 10004 35.74% First Union National Bank Joyce Osborne, AVP 1525 West WT Harris Blvd 3A4 Charlotte, NC 28288 22.33% Class A-4 Certificates Bank of New York Diana KarenBauer 925 Patterson Plank Rd Secaucus, NJ 07094 23.98% Boston Safe Deposit & Trust Co c/o Mellon Bank NA Three Mellon Bank Ctr, Rm 153-3015 Pittsburgh, PA 15259 8.97% Chase Manhattan Bank / Chemical 4 New York Plaza Proxy Department 13th Floor New York, NY 10004 26.85% Citibank, NA Marta Hoosain PO Box 30576 Tampa, FL 33630-3576 5.32% Morgan Stanley & Co, Inc Launa McAfee One Perrepont Plaza, 7th Floor Brooklyn, NY 11201 14.16% State Street Bank & Trust Company Global Corp Action Dept JAB5W PP Box 1631 Boston, MA 02105-1631 8.36% Class A-5 Certificates Bank of New York Diana KarenBauer 925 Patterson Plank Rd Secaucus, NJ 07094 32.05% Boston Safe Deposit & Trust Co c/o Mellon Bank NA Three Mellon Bank Ctr, Rm 153-3015 Pittsburgh, PA 15259 37.05% LaSalle National Bank c/o ADP Proxy Services 51 Mercedes Way Edgewood, NY 11717 8.75% Northern Trust Company Jarvis A McKee 801 S Canal C-IN Chicago, IL 60607 8.66% Class A-6 Certificates Citibank, NA Marta Hoosain PO Box 30576 Tampa, FL 33630-3576 100.00% Class A-7 Certificates Bank of New York Diana KarenBauer 925 Patterson Plank Rd Secaucus, NJ 07094 11.68% Bankers Trust Company c/o BT Services Tennessee Inc 648 Grassmere Park Drive Nashville, TN 37211 8.29% Boston Safe Deposit & Trust Co c/o Mellon Bank NA Three Mellon Bank Ctr, Rm 153-3015 Pittsburgh, PA 15259 9.87% Norwest Bank Minnesota, NA John Kemper 733 Marquette Avenue Minneapolis, MN 55479-0056 44.21% US Bank National Association MPFP 1603 Proxy Unit 601 Second Avenue South Minneapolis, MN 55402 19.90% Class A-8 Certificates Bankers Trust Company c/o BT Services Tennessee Inc 648 Grassmere Park Drive Nashville, TN 37211 19.36% Boston Safe Deposit & Trust Co c/o Mellon Bank NA Three Mellon Bank Ctr, Rm 153-3015 Pittsburgh, PA 15259 26.53% Chase Manhattan Bank Norma Trim, Supervisor 4 New York Plaza, 13th Floor New York, NY 10004 5.46% Prudential Securities Incorporated c/o ADP Proxy Services 51 Mercedes Way Edgewood, NY 11717 5.10% Republic National Bank of NY Anthony Pla One Hanson Place, Lower Level Brooklyn, NY 11243 34.18% State Street Bank & Trust Co Global Corp Action Dept JAB5W PP Box 1631 Boston, MA 02105-1631 7.84% Class A-9 Certificates Chase Manhattan Bank Norma Trim, Supervisor 4 New York Plaza, 13th Floor New York, NY 10004 16.56% DB Clearing Services Lou Pagnotta 175 Water Street New York, NY 10038 2 70.61% Norwest Bank Minnesota, NA John Kemper 733 Marquette Avenue Minneapolis, MN 55479-0056 12.83% Class A-I0 Certificates FUNB - Phila Main Marge Rozelle, FC1-9-81-48 530 Walnut Street Philadelphia, PA 19101 50.00% State Street Bank & Trust Co Global Corp Action Dept JAB5W PP Box 1631 Boston, MA 02105-1631 50.00% Class B-1 Certificates Citibank, NA Marta Hoosain PO Box 30576 Tampa, FL 33630-3576 100.00% Class M-1 Certificates Bank of New York Diana Karenbauer 925 Patterson Plank Rd Secaucus, NJ 07094 12.43% Bankers Trust Company c/o BT Services Tennessee Inc 648 Grassmere Park Drive Nashville, TN 37211 9.14% Comerica Bank Tom Deboever Cap.Chg./Proxy 7CBB/MC 3530 Detroit, MI 48275-3530 5.43% INV BK/INST Trust Joseph Buckley 200 Clarendon Street Boston, MA 02116 16.14% Investors Bank & Trust/MF Custody 200 Clarendon Street 15th FL Hancock Tower Boston, MA 02116 7.43% Northern Trust Company Jarvis A. McKee 801 S. Canal C-IN Chicago, IL 60607 15.00% State Street Bank & Trust Co Global Corp Action Dept JAB5W PP Box 1631 Boston, MA 02105-1631 30.14% Class M-2 Certificates Citibank, NA Marta Hoosain PO Box 30576 Tampa, FL 33630-3576 50.00% Star Bank, NA Cincinnati PO Box 1118 Mail Location 6120 Cincinnati, OH 45201-1118 50.00% ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS None PART IV ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K (a) The following documents are filed as part of this report: 1. Financial Statements: Not applicable. 2. Financial Statement Schedules: Not applicable. 3. Exhibits: As the Issuer was established as of December 1, 1997, the Master Servicer was obligated to prepare an Annual Statement to Certificateholders as to Compliance for the year ended December 31, 1998, and mail such statement to the Certificateholders on or before the last day of March, 1999 and Independent Certified Public Accountants were required to prepare an annual report pertaining to the compliance of the Master Servicer with its servicing obligations pursuant to the Pooling and Servicing Agreement on or before the last day of March, 1999. The Annual Statement to Certificate- holders as to Compliance is included herewith as Exhibit 28.1 and the Annual Independent Certified Public Accountants' Report is included herewith as Exhibit 28.2. The Statement to Certificateholders on December 28, 1998, is included herewith as Exhibit 28.3. Exhibit No. Description *3.1 Certificates of Incorporation of the Companies *3.2 By-laws of the Companies *4 Pooling and Servicing Agreement 28.1 Annual Statement to Certificateholders as to Compliance for the year ended December 31, 1998. 28.2 Annual Independent Certified Public Accountants' Report. 28.3 Report of Management on Compliance with Minimum Servicing Standards. 28.4 Statement to Certificateholders on December 28, 1998. * Incorporated by reference to the Exhibit of the same designation filed with the Issuer's Form S-3 registration statement declared effective October 30, 1997. (b) Reports on Form 8-K. Twelve reports on Form 8-K have been filed by the Issuer during the period covered by this report. Items Reported/Financial Date of Reports on Form 8-K Statements Filed Janaury 26, 199Monthly Report for the December 1997 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1997-4, 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 A-9, Class M-1, Class M-2 and Class B-1 issued by the ADVANTA Mortgage Loan Trust 1997-4. February 25, 199Monthly Report for the January 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1997-4, 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 A-9, Class M-1, Class M-2 and Class B-1 issued by the ADVANTA Mortgage Loan Trust 1997-4. March 25, 1998 Monthly Report for the February 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1997-4, 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 A-9, Class M-1, Class M-2 and Class B-1 issued by the ADVANTA Mortgage Loan Trust 1997-4. April 27, 1998 Monthly Report for the March 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1997-4, 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 A-9, Class M-1, Class M-2 and Class B-1 issued by the ADVANTA Mortgage Loan Trust 1997-4. May 26, 1998 Monthly Report for the April 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1997-4, 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 A-9, Class M-1, Class M-2 and Class B-1 issued by the ADVANTA Mortgage Loan Trust 1997-4. June 25, 1998 Monthly Report for the May 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1997-4, 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 A-9, Class M-1, Class M-2 and Class B-1 issued by the ADVANTA Mortgage Loan Trust 1997-4. July 27, 1998 Monthly Report for the June 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1997-4, 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 A-9, Class M-1, Class M-2 and Class B-1 issued by the ADVANTA Mortgage Loan Trust 1997-4. August 25, 1998 Monthly Report for the July 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1997-4, 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 A-9, Class M-1, Class M-2 and Class B-1 issued by the ADVANTA Mortgage Loan Trust 1997-4. September 25, 19Monthly Report for the August 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1997-4, 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 A-9, Class M-1, Class M-2 and Class B-1 issued by the ADVANTA Mortgage Loan Trust 1997-4. October 26, 1998Monthly Report for the September 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1997-4, 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 A-9, Class M-1, Class M-2 and Class B-1 issued by the ADVANTA Mortgage Loan Trust 1997-4. November 25, 199Monthly Report for the October 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1997-4, 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 A-9, Class M-1, Class M-2 and Class B-1 issued by the ADVANTA Mortgage Loan Trust 1997-4. December 28, 199Monthly Report for the November 1998 Monthly Period relating to the ADVANTA Mortgage Loan Asset- Backed Certificates 1997-4, 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 A-9, Class M-1, Class M-2 and Class B-1 issued by the ADVANTA Mortgage Loan Trust 1997-4. (c) See "Item 14(a) (3)-Exhibits". (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. ADVANTA Mortgage Corp., USA, as Master Servicer and on behalf of ADVANTA Mortgage Loan Trust 1997-4 Registrant BY; /s/ William P. Garland William P. Garland Senior Vice President Loan Service Administration March 31, 1999 INDEX TO EXHIBITS (Item 14(c)) Exhibit # Description *3.1 Certificates of Incorporation of the Companies *3.2 By-laws of the Companies. *4 Pooling and Servicing Agreement 28.1 Annual Statement to Certificateholders as to Compliance for the year ended December 31, 1998. 28.2 Annual Independent Certified Public Account- ants' Report. 28.3 Report of Management on Compliance with Minimum Servicing Standards. 28.4 Statement to Certificateholders on December 28, 1998. * Incorporated by reference to the Exhibit of the same designation filed with the Issuer's Form S-3 registration statement declared effective October, 30, 1997. EXHIBIT 28.1 March 24, 1999 Bankers Trust Company(293) Attention: Mark McNeill 3 Park Plaza -- 16th Floor Irvine, CA 92714 RE: Annual Statement as to Compliance Pursuant to that certain Loan Servicing Agreement ("Agreement") dated as of December 1, 1997, relating to ADVANTA Mortgage Loan Trust 1997-4, I, William P. Garland, hereby certify that (I) a review of the activities of the Servicer during the preceding year and the 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 such year. Sincerely, BY; /s/ William P. Garland William P. Garland Senior Vice President Loan Service Administration WPG/cg cc: Mr. James L. Shreero Mary T. Woehr, Esq. Mr. Mark Casale EXHIBIT 28.2 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To ADVANTA Mortgage Corp. USA: We have examined management's assertion, included in the accompanying Report of Management on Compliance with Minimum Servicing Standards, that Advanta Mortgage Corp. USA, an indirect wholly-owned subsidiary of Advanta Corp., complied with the minimum servicing standards identified in the Mortgage Bankers Association of America's Uniform Single Attestation Program for Mortgage Bankers (USAP) and that Advanta Mortgage Corp. USA had in effect fidelity bond coverage in the amount of $15 million and mortgage contingent liability protection coverage in the amount of $5 million per occurrence as of and during the year ended December 31, 1998. As discussed in the accompanying Report of Management on Compliance with Minimum Servicing Standards, Management is responsible for Advanta Mortgage Corp. USA's compliance with those minimum servicing standards and for maintaining a fidelity bond and errors and omissions policies. Our responsibility is to express an opinion on management's assertion about Advanta Mortgage Corp. USA's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about Advanta Mortgage Corp. USA's compliance with the 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 on Advanta Mortgage Corp. USA's compliance with the minimum servicing standards. In our opinion, management's assertion that Advanta Mortgage Corp. USA complied with the aforementioned minimum servicing standards and that Advanta Mortgage Corp. USA had in effect fidelity bond coverage in the amount of $15 million and mortgage contingent liability protection coverage in the amount of $5 million per occurrence as of and during the year ended December 31, 1998 is fairly stated, in all material respects. BY; /s/ Arthur Andersen LLP Philadelphia, PA January 26, 1999 EXHIBIT 28.3 REPORT OF MANAGEMENT ON COMPLIANCE WITH MINIMUM SERVICING STANDARDS As of and during the year ended December 31, 1998, Advanta Mortgage Corp. USA has complied in all material respects with the minimum servicing standards as set forth in the Mortgage Bankers Association of America's Uniform Single Attestation Program for Mortgage Bankers. As of and during the same period, Advanta Mortgage Corp. USA had in effect fidelity bond coverage in the amount of $15 million and mortgage contingent liability protection coverage in the amount of $5 million per occurrence. BY; /s/ William P. Garland BY; /s/ James L. Shreero William P. Garland James L. Shreero Senior Vice President Senior Vice President Loan Servicing and Chief Financial Officer Finance and Accounting EXHIBIT 28.4 ADVANTA Mortgage Loan Trust 1997-4 Statement to Certificateholders Original Prior Face Principal Class Value Balance Interest Principal Total A-1 146,039,000. 48,476,738 230,2 14,351,463. 14,581,751.62 A-2 91,159,000 91,159,000 496,0 496,056.89 A-3 33,579,000 33,579,000 183,2 183,285.37 A-4 59,837,000 59,837,000 332,0 332,095.35 A-5 15,601,000 15,601,000 87,3 87,365.60 A-6 41,285,000 41,285,000 244,2 244,269.58 A-7 50,000,000 50,000,000 276,2 276,250.00 A-8 98,000,000 58,277,756 278,4 4,821,992 5,100,441.92 A-9 302,000,000. 234,690,563. 1,136,40 8,036,653 9,173,059.16 A-IO 208,333.33 208,333.33 B-1 15,000,000 15,000,000 94,2 94,250.00 M-1 17,500,000 17,500,000 102,6 102,666.67 M-2 30,000,000 30,000,000 181,0 181,000.00 R 1,910,46 1,910,469.77 Totals 900,000,000. 695,406,058. 5,761,18 27,210,109. 32,971,295.26 Current Pass-Through Realized Deferred Principal Rates Class Losses Interest Balance Current Next A-1 34,125,274 5.182340% 5.764380% A-2 91,159,000 6.530000% 6.530000% A-3 33,579,000 6.550000% 6.550000% A-4 59,837,000 6.660000% 6.660000% A-5 15,601,000 6.720000% 6.720000% A-6 41,285,000 7.100000% 7.100000% A-7 50,000,000 6.630000% 6.630000% A-8 53,455,764 5.212340% 5.794380% A-9 226,653,909. 5.282340% 5.864380% A-IO 5.000000% 5.000000% B-1 15,000,000 7.540000% 7.540000% M-1 17,500,000 7.040000% 7.040000% M-2 30,000,000 7.240000% 7.240000% R 0.000000% 0.000000% Totals 668,195,948.60 Prior Current Principal Principal Class CUSIP Balance Interest Principal Total Balance A-1 00755WEC6 331.943786 1.576892 98.271447 99.848339 233.672339 A-2 00755WED4 1000 5.441667 0 5.441667 1000 A-3 00755WEE2 1000 5.458333 0 5.458333 1000 A-4 00755WEF9 1000 5.55 0 5.55 1000 A-5 00755WEG7 1000 5.6 0 5.6 1000 A-6 00755WEH5 1000 5.916667 0 5.916667 1000 A-7 00755WEJ1 1000 5.525 0 5.525 1000 A-8 00755WEL6 594.670983 2.841325 49.204001 52.045326 545.466983 A-9 00755WEM4 777.12107 3.762933 26.611435 30.374368 750.509634 A-IO 00755WEK8 1000 4.166667 0 4.166667 0 B-1 00755WEQ5 1000 6.283333 0 6.283333 1000 M-1 00755WEN2 1000 5.866667 0 5.866667 1000 M-2 00755WEP7 1000 6.033333 0 6.033333 1000 R AM9704114 0 2.122744 0 2.122744 0 Delinquent Loan Information: 90+ Days Loans Loans 30-59 60-89 excldg f/c,REO in in Days Days & Bkrptcy REO Foreclosure Group 1 Principal Balanc 14,835,737 5,750,16 1,878,906 2,029,43 11,798,452. % of Pool Balanc 3.70350% 1.43544% 0.46904% 0.50662% 2.94530% Number of Loans 272 96 43 28 213 % of Loans 3.93405% 1.38849% 0.62193% 0.40498% 3.08071% Group 2 Principal Balanc 12,946,991 4,156,02 2,333,996 2,819,96 15,024,067. % of Pool Balanc 4.38718% 1.40830% 0.79089% 0.95556% 5.09101% Number of Loans 155 46 29 27 163 % of Loans 4.50189% 1.33604% 0.84229% 0.78420% 4.73424% Loans in Bankrup Group 1 5,206,748.93 Group 2 5,472,010.64 10,678,759.57 General Mortgage Loan Information: Group I Group II Total Beginning Aggregate Mortgage Loan Balance 414,937,882. 307,730,929. 722,668,811. Principal Reduction 14,351,462. 12,588,565 26,940,028. Ending Aggregate Mortgage Loan Balance 400,586,418. 295,109,931. 695,696,350. Beginning Aggregate Mortgage Loan Count 7161 3591 10752 Ending Aggregate Mortgage Loan Count 6914 3443 10357 Current Weighted Average Coupon Rate 10.537137% 10.543516% 10.539854% Next Weighted Average Coupon Rate 10.537037% 10.541004% 10.538720% Mortgage Loan Principal Reduction Information: Group I Group II Total Scheduled Principal 784,08 298,7 1,082,837 Curtailments Prepayments 13,544,382. 12,163,890 25,708,273. Repurchases/Substitutions Liquidation Proceeds 22,9 158,3 181,35 Other Principal Less: Realized Losses 32,4 32,4 Less: Delinquent Principal not Advanced by Servicer Total Principal Reduction 14,351,462. 12,588,565 26,940,028. Servicer Information: Group I Group II Total Accrued Servicing Fee for the Current Period 125,41 90,4 215,81 Less: Amounts to Cover Interest Shortfalls 5,5 2, 7,8 Less: Delinquent Service Fees 47,4 37,8 85,3 Collected Servicing Fees for Current Period: 72,3 50,2 122,61 Advanced Principal 65,6 12,7 78,3 Advanced Interest 1,015,474 791,0 1,806,525 Other Subordination Prepayment Unscheduled Increase Applied Realized Loss Unpaid Principal Principal Principal Realized Loss Amortization Realized Loss Class Distributed Distributed Distributed Amount Amount Amount A-1 13,544,382 22,9 A-2 A-3 A-4 A-5 A-6 A-7 A-8 4,561,45 59,3 101,2 32,4 A-9 7,602,43 98,9 168,7 A-IO B-1 M-1 M-2 R Total 25,708,273 181,3 270,0 32,4 Prior Current Has a Senior Overcolla- Extra Overcolla- Trigger Event Enhancement Teralization Principal Realized Teralization Occurred Percentage Amount Distributed Loss Amount Amount Group I No 18.722588% 12,500,144 12,500,144. Group II N/A N/A 14,762,609 270,07 32,4 15,000,257. Total 27,262,753 270,08 32,4 27,500,402. Target Overcolla- Prior Current Cumulative Prior Unreimbursed Teralization Realized Realized Realized Unreimbursed Servicing Fee Amount Losses Losses Losses Servicing Fee Due Group I 12,500,144 65,739.98 1.00 65,740.98 0.00 N/A Group II 15,000,257 67,828.47 32,431.75 100,260.22 0.00 N/A Total 27,500,402 133,568.45 32,432.75 166,001.20 0.00 0.00 Unreimbursed Cumulative Servicing Fee Unreimbursed Paid Servicing Fee Group I N/A 0.00 Group II N/A 0.00 Total 0.00 0.00 MISCELLANEOUS INFORMATION: Class A-IO Notional Balance 50,000,000.00 Group II Insured Payment Included in amounts Distributed to Cl - TOTAL AVAILABLE FUNDS: Current Interest Collected: 4,455,527.56 Principal Collected: 26,712,741.94 Insurance Proceeds Received: - Net Liquidation Proceeds: 148,917.73 Delinquency Advances on Mortgage Interest: 1,806,525.37 Delinquency Advances on Mortgage Principal 78,368.94 Substitution Amounts: - Trust Termination Proceeds: - Investment Earnings on Certificate Account: 25,308.87 Capitalized Interest Requirement: - Pre-Funding Account: - Sum of the Above Amounts: 33,227,390.41 LESS: Servicing Fees (including PPIS): 215,811.99 Dealer Reserve: - Trustee Fees: 5,269.46 Insurance Premiums: 35,013.71 Reimbursement of Delinquency Advances: - Reimbursements of Servicing Advances: - Total Reductions to Available Funds Amount: 256,095.16 Total Available Funds: 32,971,295.