8-K 1 as789381-8k.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: June 3, 2004 (Date of earliest event reported) Commission File No. 333-108551 Asset Backed Funding Corporation -------------------------------------------------------------------------------- Delaware 75-2533468 -------------------------------------------------------------------------------- (State of Incorporation) (I.R.S. Employer Identification No.) 214 North Tryon Street Charlotte, North Carolina 28255 -------------------------------------------------------------------------------- Address of principal executive offices (Zip Code) (704) 386-2400 -------------------------------------------------------------------------------- Registrant's Telephone Number, including area code -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) ITEM 5. Other Events ------------ On June 3, 2004, Asset Backed Funding Corporation (the "Registrant"), Option One Mortgage Corporation, as master servicer, and Wells Fargo Bank, National Association, as trustee, amended and restated, as of June 1, 2004, the Pooling and Servicing Agreement, originally dated as of April 1, 2004, relating to the Registrant's Asset-Backed Certificates, Series 2004-OPT3. A copy of such amended and restated agreement is filed as an exhibit hereto. The purpose of the amendment was to provide for the rights of an insurer issuing a financial guaranty insurance policy that guarantees payment on net interest margin securities secured by all or a portion of the Class CE and Class P Certificates. ITEM 7. Financial Statements and Exhibits --------------------------------- Item 601(a) of Regulation S-K Exhibit No. Description ----------- ----------- (EX-4) Amended and Restated Pooling and Servicing Agreement, dated as of June 1, 2004, among Asset Backed Funding Corporation, Option One Mortgage Corporation and Wells Fargo Bank, National Association. Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ASSET BACKED FUNDING CORPORATION June 3, 2004 By: /s/ Kirk B. Meyers -------------------------------------- Name: Kirk B. Meyers Title: Vice President INDEX TO EXHIBITS ----------------- Paper (P) or Exhibit No. Description Electronic (E) ----------- ----------- -------------- (EX-4) Amended and Restated Pooling and E Servicing Agreement, dated as of June 1, 2004, among Asset Backed Funding Corporation, Option One Mortgage Corporation and Wells Fargo Bank, National Association.

Asset Backed Funding Corporation Mortgage Pass-Through Certificates Record Date: 6/30/04 Distribution Date: 7/26/04 ABFC Series: 2004-OP3 Contact: Customer Service - CTSLink Wells Fargo Bank, N.A. Securities Administration Services 7485 New Horizon Way Frederick, MD 21703 Telephone: (301) 815-6600 Fax: (301) 815-6660 Certificateholder Distribution Summary Certificate Certificate Beginning Class Pass-Through Certificate Interest Principal Class CUSIP Description Rate Balance Distribution Distribution A1 04542BGR7 SEN 1.55000% 374,661,138.18 500,016.73 16,141,212.88 A2 04542BGS5 SEN 1.39000% 77,575,666.40 92,844.14 4,402,148.67 A3 04542BGT3 SEN 1.49000% 32,285,000.00 41,419.16 0.00 A4 04542BGU0 SEN 1.69000% 33,819,000.00 49,210.94 0.00 M1 04542BGV8 SUB 1.80000% 34,333,000.00 53,210.64 0.00 M2 04542BGW6 SUB 2.42000% 26,632,000.00 55,492.38 0.00 M3 04542BGX4 SUB 2.60000% 8,663,000.00 19,393.48 0.00 M4 04542BGY2 SUB 2.95000% 7,380,000.00 18,745.31 0.00 M5 04542BGZ9 SUB 3.10000% 6,417,000.00 17,128.05 0.00 M6 04542BHA3 SUB 4.35000% 6,417,000.00 24,034.52 0.00 CE BFCAS04OP3C SEN 0.00000% 3,210,690.67 2,451,261.39 0.00 P BFCAS04OP3P SEN 0.00000% 0.00 413,726.51 0.00 R BFCAS04OP3R SEN 0.00000% 0.00 0.00 0.00 Totals 611,393,495.25 3,736,483.25 20,543,361.55

Certificateholder Distribution Summary (continued) Current Ending Cumulative Realized Certificate Total Realized Class Loss Balance Distribution Losses A1 0.00 358,519,925.30 16,641,229.61 0.00 A2 0.00 73,173,517.73 4,494,992.81 0.00 A3 0.00 32,285,000.00 41,419.16 0.00 A4 0.00 33,819,000.00 49,210.94 0.00 M1 0.00 34,333,000.00 53,210.64 0.00 M2 0.00 26,632,000.00 55,492.38 0.00 M3 0.00 8,663,000.00 19,393.48 0.00 M4 0.00 7,380,000.00 18,745.31 0.00 M5 0.00 6,417,000.00 17,128.05 0.00 M6 0.00 6,417,000.00 24,034.52 0.00 CE 0.00 3,210,690.67 2,451,261.39 0.00 P 0.00 0.00 413,726.51 0.00 R 0.00 0.00 0.00 0.00 Totals 0.00 590,850,133.70 24,279,844.80 0.00 All distributions required by the Pooling and Servicing Agreement have been calculated by the Certificate Administrator on behalf of the Trustee.

Principal Distribution Statement Original Beginning Scheduled Unscheduled Face Certificate Principal Principal Realized Class Amount Balance Distribution Distribution Accretion Loss (1) A1 395,510,000.00 374,661,138.18 0.00 16,141,212.88 0.00 0.00 A2 87,071,000.00 77,575,666.40 0.00 4,402,148.67 0.00 0.00 A3 32,285,000.00 32,285,000.00 0.00 0.00 0.00 0.00 A4 33,819,000.00 33,819,000.00 0.00 0.00 0.00 0.00 M1 34,333,000.00 34,333,000.00 0.00 0.00 0.00 0.00 M2 26,632,000.00 26,632,000.00 0.00 0.00 0.00 0.00 M3 8,663,000.00 8,663,000.00 0.00 0.00 0.00 0.00 M4 7,380,000.00 7,380,000.00 0.00 0.00 0.00 0.00 M5 6,417,000.00 6,417,000.00 0.00 0.00 0.00 0.00 M6 6,417,000.00 6,417,000.00 0.00 0.00 0.00 0.00 CE 3,210,689.65 3,210,690.67 0.00 0.00 0.00 0.00 P 0.00 0.00 0.00 0.00 0.00 0.00 R 0.00 0.00 0.00 0.00 0.00 0.00 Totals 641,737,689.65 611,393,495.25 0.00 20,543,361.55 0.00 0.00 (1) Amount Does Not Include Excess Special Hazard, Bankruptcy, or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

Principal Distribution Statement (continued) Total Ending Ending Total Principal Certificate Certificate Principal Class Reduction Balance Percentage Distribution A1 16,141,212.88 358,519,925.30 0.90647500 16,141,212.88 A2 4,402,148.67 73,173,517.73 0.84038908 4,402,148.67 A3 0.00 32,285,000.00 1.00000000 0.00 A4 0.00 33,819,000.00 1.00000000 0.00 M1 0.00 34,333,000.00 1.00000000 0.00 M2 0.00 26,632,000.00 1.00000000 0.00 M3 0.00 8,663,000.00 1.00000000 0.00 M4 0.00 7,380,000.00 1.00000000 0.00 M5 0.00 6,417,000.00 1.00000000 0.00 M6 0.00 6,417,000.00 1.00000000 0.00 CE 0.00 3,210,690.67 1.00000032 0.00 P 0.00 0.00 0.00000000 0.00 R 0.00 0.00 0.00000000 0.00 Totals 20,543,361.55 590,850,133.70 0.92070349 20,543,361.55

Principal Distribution Factors Statement Original Beginning Scheduled Unscheduled Face Certificate Principal Principal Class (2) Amount Balance Distribution Distribution Accretion A1 395,510,000.00 947.28613228 0.00000000 40.81113722 0.00000000 A2 87,071,000.00 890.94723157 0.00000000 50.55814990 0.00000000 A3 32,285,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 A4 33,819,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M1 34,333,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M2 26,632,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M3 8,663,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M4 7,380,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M5 6,417,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 M6 6,417,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 CE 3,210,689.65 1000.00031769 0.00000000 0.00000000 0.00000000 P 0.00 0.00000000 0.00000000 0.00000000 0.00000000 R 0.00 0.00000000 0.00000000 0.00000000 0.00000000 (2) All Classes are per $1000 denomination.

Principal Distribution Factors Statement (continued) Total Ending Ending Total Realized Principal Certificate Certificate Principal Class Loss (3) Reduction Balance Percentage Distribution A1 0.00000000 40.81113722 906.47499507 0.90647500 40.81113722 A2 0.00000000 50.55814990 840.38908167 0.84038908 50.55814990 A3 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 A4 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M1 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M2 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M3 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M4 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M5 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 M6 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 CE 0.00000000 0.00000000 1,000.00031769 1.00000032 0.00000000 P 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 R 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 (3) Amount Does Not Include Excess Special Hazard, Bankruptcy, or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

Interest Distribution Statement Beginning Payment of Original Current Certificate/ Current Unpaid Current Face Certificate Notional Accrued Interest Interest Class Amount Rate Balance Interest Shortfall Shortfall A1 395,510,000.00 1.55000% 374,661,138.18 500,068.55 0.00 0.00 A2 87,071,000.00 1.39000% 77,575,666.40 92,853.76 0.00 0.00 A3 32,285,000.00 1.49000% 32,285,000.00 41,423.45 0.00 0.00 A4 33,819,000.00 1.69000% 33,819,000.00 49,216.04 0.00 0.00 M1 34,333,000.00 1.80000% 34,333,000.00 53,216.15 0.00 0.00 M2 26,632,000.00 2.42000% 26,632,000.00 55,498.13 0.00 0.00 M3 8,663,000.00 2.60000% 8,663,000.00 19,395.49 0.00 0.00 M4 7,380,000.00 2.95000% 7,380,000.00 18,747.25 0.00 0.00 M5 6,417,000.00 3.10000% 6,417,000.00 17,129.83 0.00 0.00 M6 6,417,000.00 4.35000% 6,417,000.00 24,037.01 0.00 0.00 CE 3,210,689.65 0.00000% 3,210,690.67 0.00 0.00 0.00 P 0.00 0.00000% 0.01 0.00 0.00 0.00 R 0.00 0.00000% 0.00 0.00 0.00 0.00 Totals 641,737,689.65 871,585.66 0.00 0.00

Interest Distribution Statement (continued) Remaining Ending Non-Supported Total Unpaid Certificate/ Interest Realized Interest Interest Notional Class Shortfall Losses (4) Distribution Shortfall Balance A1 51.82 0.00 500,016.73 0.00 358,519,925.30 A2 9.62 0.00 92,844.14 0.00 73,173,517.73 A3 4.29 0.00 41,419.16 0.00 32,285,000.00 A4 5.10 0.00 49,210.94 0.00 33,819,000.00 M1 5.51 0.00 53,210.64 0.00 34,333,000.00 M2 5.75 0.00 55,492.38 0.00 26,632,000.00 M3 2.01 0.00 19,393.48 0.00 8,663,000.00 M4 1.94 0.00 18,745.31 0.00 7,380,000.00 M5 1.78 0.00 17,128.05 0.00 6,417,000.00 M6 2.49 0.00 24,034.52 0.00 6,417,000.00 CE 0.00 0.00 2,451,261.39 0.00 3,210,690.67 P 0.00 0.00 413,726.51 0.00 0.01 R 0.00 0.00 0.00 0.00 0.00 Totals 90.31 0.00 3,736,483.25 0.00 (4) Amount Does Not Include Excess Special Hazard, Bankruptcy, or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

Interest Distribution Factors Statement Beginning Payment of Original Current Certificate/ Current Unpaid Current Face Certificate Notional Accrued Interest Interest Class (5) Amount Rate Balance Interest Shortfall Shortfall A1 395,510,000.00 1.55000% 947.28613228 1.26436386 0.00000000 0.00000000 A2 87,071,000.00 1.39000% 890.94723157 1.06641431 0.00000000 0.00000000 A3 32,285,000.00 1.49000% 1000.00000000 1.28305560 0.00000000 0.00000000 A4 33,819,000.00 1.69000% 1000.00000000 1.45527780 0.00000000 0.00000000 M1 34,333,000.00 1.80000% 1000.00000000 1.55000000 0.00000000 0.00000000 M2 26,632,000.00 2.42000% 1000.00000000 2.08388893 0.00000000 0.00000000 M3 8,663,000.00 2.60000% 1000.00000000 2.23888838 0.00000000 0.00000000 M4 7,380,000.00 2.95000% 1000.00000000 2.54027778 0.00000000 0.00000000 M5 6,417,000.00 3.10000% 1000.00000000 2.66944522 0.00000000 0.00000000 M6 6,417,000.00 4.35000% 1000.00000000 3.74583294 0.00000000 0.00000000 CE 3,210,689.65 0.00000% 1000.00031769 0.00000000 0.00000000 0.00000000 P 0.00 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000 R 0.00 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000 (5) All classes are per $1000 denomination.

Interest Distribution Factors Statement (continued) Remaining Ending Non-Supported Total Unpaid Certificate/ Interest Realized Interest Interest Notional Class Shortfall Losses (6) Distribution Shortfall Balance A1 0.00013102 0.00000000 1.26423284 0.00000000 906.47499507 A2 0.00011048 0.00000000 1.06630382 0.00000000 840.38908167 A3 0.00013288 0.00000000 1.28292272 0.00000000 1000.00000000 A4 0.00015080 0.00000000 1.45512700 0.00000000 1000.00000000 M1 0.00016049 0.00000000 1.54983951 0.00000000 1000.00000000 M2 0.00021591 0.00000000 2.08367302 0.00000000 1000.00000000 M3 0.00023202 0.00000000 2.23865635 0.00000000 1000.00000000 M4 0.00026287 0.00000000 2.54001491 0.00000000 1000.00000000 M5 0.00027739 0.00000000 2.66916784 0.00000000 1000.00000000 M6 0.00038803 0.00000000 3.74544491 0.00000000 1000.00000000 CE 0.00000000 0.00000000 763.46880490 0.00000000 1000.00031769 P 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 R 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 (6) Amount Does Not Include Excess Special Hazard, Bankruptcy,or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

CERTIFICATEHOLDER ACCOUNT STATEMENT CERTIFICATE ACCOUNT Beginning Balance 0.00 Deposits Payments of Interest and Principal 24,335,541.72 Liquidations, Insurance Proceeds, Reserve Funds 0.00 Proceeds from Repurchased Loans 0.00 Other Amounts (Servicer Advances) 0.00 Realized Loss (Gains, Subsequent Expenses & Recoveries) 0.00 Prepayment Penalties 413,726.51 Total Deposits 24,749,268.23 Withdrawals Reimbursement for Servicer Advances 0.00 Payment of Service Fee 469,423.43 Payment of Interest and Principal 24,279,844.80 Total Withdrawals (Pool Distribution Amount) 24,749,268.23 Ending Balance 0.00

PREPAYMENT/CURTAILMENT INTEREST SHORTFALL Total Prepayment/Curtailment Interest Shortfall 0.00 Servicing Fee Support 0.00 Non-Supported Prepayment/Curtailment Interest Shortfall 90.31

SERVICING FEES Gross Servicing Fee 152,848.37 Credit Risk Manager Fee 8,916.15 PMI Premium 303,582.95 Trustee Fee 4,075.96 Supported Prepayment/Curtailment Interest Shortfall 0.00 Net Servicing Fee 469,423.43

OTHER ACCOUNTS Beginning Current Current Ending Account Type Balance Withdrawals Deposits Balance Reserve Fund 0.00 0.00 0.00 0.00

LOAN STATUS STRATIFICATION/CREDIT ENHANCEMENT STATEMENT DELINQUENCY STATUS DELINQUENT BANKRUPTCY FORECLOSURE REO Total No of Loans No of Loans No of Loans No of Loans No of Loans Principal Balance Principal Balance Principal Balance Principal Balance Principal Balance 0-29 Days 9 0 0 9 1,360,441.17 0.00 0.00 1,360,441.17 30 Days 31 1 0 0 32 4,431,740.96 59,712.48 0.00 0.00 4,491,453.44 60 Days 7 1 3 0 11 1,390,586.83 231,490.78 283,152.17 0.00 1,905,229.78 90 Days 1 0 3 0 4 92,423.37 0.00 286,512.15 0.00 378,935.52 120 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 150 Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 180+ Days 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 Totals 39 11 6 0 56 5,914,751.16 1,651,644.43 569,664.32 0.00 8,136,059.91 No of Loans No of Loans No of Loans No of Loans No of Loans Principal Balance Principal Balance Principal Balance Principal Balance Principal Balance 0-29 Days 0.239171% 0.000000% 0.000000% 0.239171% 0.230190% 0.000000% 0.000000% 0.230190% 30 Days 0.823811% 0.026575% 0.000000% 0.000000% 0.850385% 0.749863% 0.010104% 0.000000% 0.000000% 0.759966% 60 Days 0.186022% 0.026575% 0.079724% 0.000000% 0.292320% 0.235291% 0.039169% 0.047910% 0.000000% 0.322370% 90 Days 0.026575% 0.000000% 0.079724% 0.000000% 0.106298% 0.015638% 0.000000% 0.048479% 0.000000% 0.064117% 120 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 150 Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 180+ Days 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% 0.000000% Totals 1.036407% 0.292320% 0.159447% 0.000000% 1.488174% 1.000792% 0.279463% 0.096389% 0.000000% 1.376644%

OTHER INFORMATION Current Period Class A Insufficient Funds 0.00 Principal Balance of Contaminated Properties 0.00 Periodic Advance 35,249.60

COLLATERAL STATEMENT Collateral Description Mixed Fixed & Arm Weighted Average Gross Coupon 7.443126% Weighted Average Net Coupon 7.143126% Weighted Average Pass-Through Rate 6.521775% Weighted Average Maturity(Stepdown Calculation ) 346 Beginning Scheduled Collateral Loan Count 3,883 Number Of Loans Paid In Full 120 Ending Scheduled Collateral Loan Count 3,763 Beginning Scheduled Collateral Balance 611,393,495.25 Ending Scheduled Collateral Balance 590,850,133.70 Ending Actual Collateral Balance at 30-Jun-2004 591,006,873.02 Monthly P &I Constant 4,317,267.24 Special Servicing Fee 0.00 Prepayment Penalties 413,726.51 Realized Loss Amount 0.00 Cumulative Realized Loss 0.00 Scheduled Principal 525,034.86 Unscheduled Principal 20,018,326.69 Required Overcollateralization Amount 0.00 Overcollateralized Increase Amount 0.00 Overcollateralized reduction Amount 0.00 Specified O/C Amount 3,210,690.67 Overcollateralized Amount 3,210,690.67 Overcollateralized Deficiency Amount 0.00 Base Overcollateralized Amount 0.00 Extra principal distribution Amount 0.00 Excess Cash Amount 2,451,261.39

Miscellaneous Reporting Group 1 Available Funds 18,539,210.48 Group 2 Available Funds 5,326,907.80

Group Level Collateral Statement Group 1 2 Total Collateral Description Fixed 15/30 & ARM Fixed 15/30 & ARM Mixed Fixed & Arm Weighted Average Coupon Rate 7.448319 7.429606 7.443126 Weighted Average Net Rate 7.148319 7.129606 7.143126 Weighted Average Maturity 345 346 346 Beginning Loan Count 2,963 920 3,883 Loans Paid In Full 98 22 120 Ending Loan Count 2,865 898 3,763 Beginning Scheduled Balance 441,736,864.21 169,656,631.04 611,393,495.25 Ending scheduled Balance 425,595,651.33 165,254,482.37 590,850,133.70 Record Date 06/30/2004 06/30/2004 06/30/2004 Principal And Interest Constant 3,121,146.62 1,196,120.62 4,317,267.24 Scheduled Principal 379,315.88 145,718.98 525,034.86 Unscheduled Principal 15,761,897.00 4,256,429.69 20,018,326.69 Scheduled Interest 2,741,830.74 1,050,401.64 3,792,232.38 Servicing Fees 110,434.22 42,414.15 152,848.37 Master Servicing Fees 0.00 0.00 0.00 Trustee Fee 2,944.91 1,131.05 4,075.96 FRY Amount 0.00 0.00 0.00 Special Hazard Fee 0.00 0.00 0.00 Other Fee 6,441.99 2,474.16 8,916.15 Pool Insurance Fee 0.00 0.00 0.00 Spread Fee 1 0.00 0.00 0.00 Spread Fee 2 0.00 0.00 0.00 Spread Fee 3 224,050.10 79,532.85 303,582.95 Net Interest 2,397,959.52 924,849.43 3,322,808.95 Realized Loss Amount 0.00 0.00 0.00 Cumulative Realized Loss 0.00 0.00 0.00 Percentage of Cumulative Losses 0.0000 0.0000 0.0000 Prepayment Penalties 0.00 0.00 0.00 Special Servicing Fee 0.00 0.00 0.00 Pass-Through Rate 6.514175 6.541562 6.521775

Filing Compare · Asset Backed Funding Corp. ABFC Asset Backed Certificates Series 2004-OPT3