Item 1. Business
Not applicable.
Item 2.
Item 2. Properties
Not applicable on reliance of Relief Letters
Item 3.
Item 3. Legal Proceedings
There were no legal proceedings.
Item 4.
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.
Item 5. Market for Registrant's Common Equity and Related Stockholder matters
As of December 31, 2003, the Trust had Forty (40) holders of record of the Notes, computed in accordance with Rule 12g5-1 under the Securities Exchange Act of 1934, as amended.
Item 6.
Item 6. Selected Financial Data.
Not applicable.
Item 7.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Not applicable.
Item 8.
Item 8. Financial Statements and Supplementary Data.
Not applicable.
Item 9.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Information required by Item 304 of Reg. S-K.
Not applicable.
PART III
Item 10.
Item 10. Directors and Executive Officers of the Registrant
Not applicable.
Item 11.
Item 11. Executive Compensation
Not applicable.
Item 12.
Item 12. Security Ownership of Certain Beneficial Owners and Management
Not applicable.
Item 13.
Item 13. Certain Relationships and Related Transactions.
Not applicable.
Item 14.
Item 14. Principal Accounting Fees and Services.
Not applicable.
PART IV
Item 15.
Item 15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
(a) 1. Not Applicable 2. Not Applicable 3. Exhibits 99.1 Annual Statement of Compliance 99.2 Report of Independent Accountants 99.3 Report of Management
(b) Reports on Form 8-K The registrant has filed Current Reports on Form 8-K with the Securities and Exchange Commission dated: September 25,2003; October 27, 2003; November 25,2003; Decmeber 26, 2003
(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.
ASSET BACKED PASS-THROUGH CERTIFICATES Series 2003-HE5
/s/ Greg Richter
Name: Greg Richter
Title: Vice President
Company: Asset Backed Securities Corporation
Date: 3/26/04
Sarbanes-Oxley Certification
I, Greg Richter, 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 ASSET BACKED PASS-THROUGH CERTIFICATES Series 2003-HE5
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:
U.S. Bank National Association, as Trustee The Provident Bank, as Servicer
Date: 3/26/04
Signature: Greg Richter
Company: Asset Backed Securities Corporation
Title: Vice President
EXHIBIT INDEX
Exhibit Number Description 99.1 Annual Statement of Compliance 99.2 Report of Independent Accountants 99.3 Report of Management
EXHIBIT 99.1 -- Servicer's Annual Statement of Compliance
ASSET BACKED SECURITIES CORPORATION ASSET BACKED PASS-THROUGH CERTIFICATES, SERIES 2003 HE-5 SERVICER ANNUAL OFFICER'S CERTIFICATE FEBRUARY 27, 2004
Pursuant to the provisions of the Pooling and Servicing Agreement dated as of August 1, 2003 by and between ASSET BACKED SECURITIES CORPORATION, DLJ MORTGAGE CAPITAL, U.S. BANK NATIONAL ASSOCIATION, and THE PROVIDENT BANK, doing business as PCFS MORTGAGE RESOURCES, I, David M. Friedman as Senior Vice President hereby certify as follows:
(a) a review of the activities of the Servicer during the preceding calendar year and of the performance under the Pooling and Servicing Agreement has been made under my direction and supervision; and
(b) to the best of my individual knowledge based on such review and, except as set forth in Attachment A to the Report of Independent Accountants submitted herewith, the Servicer has fulfilled all of its obligations under the Pooling and Servicing Agreement for such year in accordance with the requirements set forth in said Pooling and Servicing Agreement
THE PROVIDENT BANK, Doing Business As PCFS MORTGAGE RESOURCES
By: /s/ David M. Friedman David M. Friedman Senior Vice President
EXHIBIT 99.2 -- Report of Independent Accountants
Report of Independent Accountants
Board of Directors The Provident Bank
We have examined management's assertion, included in the accompanying report titled Report of Management, that e xcept as described on Attachment A, PCFS Mortgage Resources (PCFS), a division of The Provident Bank (the Bank), complied with the minimum servicing standards set forth in the Mortgage Bankers Association of America's Uniform Single Attestation Program for Mortgage Bankers (USAP) during the year ended December 31,2003. Management is responsible for PCFS's compliance with those requirements. Our responsibility is to express an opinion on management's assertions about PCFS's compliance based on our examination. Our examination was made in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about PCFS's 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 does not provide a legal determination on PCFS' s compliance with specified requirements.
In our opinion, management's assertion that, except as described on Attachment A, PCFS complied with the aforementioned requirements during the year ended December 31, 2003, is fairly stated, in all material respects
As discussed in management's assertion, the material noncompliance described in Attachment A occurred during the year ended December 31,2003
This report is intended solely for the information and use of the board of directors, management, Federal Home Loan Mortgage Corporations, and the Bank's private investors and is not intended to be and should not be used by anyone other than these specified parties.
February 17,2004 ~ T hLLP
Attachment A to the Report of Independent Accountants
Exception #1
In certain circumstances, escrow funds held in trust for a mortgagor were not returned to the mortgagor within thrity calendar days of payoff of the mortgage loan.
Management has represented the following to us regarding exception #1
The maximum exception cited caused a delay in refunding the escrow overage to the debtor by four days in excess of the standard. Management has now instituted a process to pull the necessary reporting at day twenty five, so that the refund due the debtor will be returned within the thirty day limit.
Exception #2
In certain circumstances, reconciliations were not prepared on a timely basis for custodial bank accounts and related bank clearing accounts.
Management has represented the following to us regarding exception #2
The circumstances referenced above were limited to only one of our servicing platfonns for the first six months of 2003. In addition to hiring the services of an independent accounting team to help us quantify and correct the issue, management and oversight of these functions have been centralized. Since July 1, 2003 these accounts are being analyzed and balanced daily and reconcilations have been prepared timely. Any potential exposure is limited solely to Provident Bank and has been adequately reserved as of December 31, 2003
EXHIBIT 99.3 -- Report of Management
Report of Management
We, as members of management of PCFS Mortgage Resources' (PCFS), a division of The Provident Bank (the Bank), 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 PCFS's compliance with the minimum servicing standards as set forth in the USAP as of December 31, 2003 ahd for the year then ended. Based on this evaluation, we assert that during the year ended December 31, 2003, the PCFS complied, in all material respects, with the minimum servicing standards set forth in the USAP, except as described in Attachment A.
As of and for this same period, the Bank had in effect a fidelity bond and errors and omissions policy in the amount of$25,000,000 and $20,000,000, respectively
/s/ David Friedman February 17, 2004 David Friedman Senior Vice President
Attachment A to the Report of Management
Exception #1
In certain circumstances, escrow funds held in trust for a mortgagor were not returned to the mortgagor within thrity calendar days of payoff of the mortgage loan.
Management Action Plan for Exception #1
The maximum exception cited caused a delay in refunding the escrow overage to the debtor by four days in excess of the standard. Management has now instituted a process to pull the necessary reporting at day twenty five, so that the refund due the debtor will be returned within the thirty day limit.
Exception #2
In certain circumstances, reconciliations were not prepared on a timely basis for custodial bank accounts and related bank clearing accounts.
Management Action Plan for Exception #2
The circumstances referenced above were limited to only one of our servicing platforms for the first six months of 2003. In addition to hiring the services of an independent accounting team to help us quantify and correct the issue, management and oversight of these functions have been centralized. Since July 1, 2003 these accounts are being analyzed and balanced daily and reconcilations have been prepared timely. Any potential exposure is limited solely to Provident Bank and has been adequately reserved as of December 31,2003.