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, 2001

[  ]     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 333-32857-02

                        ASSET BACKED FUNDING CORPORATION
             (Exact name of registrant as specified in its charter)


       Delaware                                           75-2533468
 (State or other jurisdiction of               (IRS Employer Identification No.)
     incorporation)

100 North Tryon Street
Charlotte, North Carolina                                   28255
(Address of principal executive offices)                (Zip Code)

Registrant's telephone number, including area code : (704) 386-2400

               Asset Backed Funding Certificates, Series 1999-1
            (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]

Documents incorporated by reference:  None



<PAGE>

ASSET BACKED FUNDING CORPORATION
Asset Backed Funding Certificates, Series 1999-1
-----------------------------------------------------------------------


PART I

Item 1.  Business

         Omitted.

Item 2.  Properties

         Omitted.

Item 3.  Legal Proceedings

The  Registrant is not aware of any material legal  proceeding  with respect to,
the Company, the Master 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

The Trust does not issue stock. There is currently no established secondary
market for the Certificates.


Item 6.  Selected Financial Data

         Omitted.

Item 7.  Management's Discussion and Analysis of Financial condition and
         Results of Operations

         Omitted.

Item 8.  Financial Statements and Supplementary Data

         Omitted.

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.



<PAGE>

PART III

Item 10. Directors and Executive Officers of the Registrant

         Omitted.

Item 11. Executive Compensation

         Omitted.

Item 12. Security Ownership of Certain Beneficial Owners and Management

         Omitted.


Item 13. Certain Relationships and Related Transactions

No reportable transactions have occurred.


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:
         Omitted.

    (2)  Financial Statement Schedules:
         Omitted.

    (3)  Exhibits:

   Annual  Servicer  Statement of  Compliance,  filed as Exhibit 99.1 hereto.
   Annual Statement of  Independent  Accountants  Report for the Servicer,
   filed as Exhibit 99.2 hereto.

(b)  Reports on Form 8-K: The  following  Current  Reports on Form 8-K were
     filed by the Registrant during the last quarter of 2001.

     Current Reports on Form 8-K dated October 25, 2001,  November 26, 2001, and
     December  26, 2001 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 (Other Events).

(c)   Exhibits to this report are listed in Item (14)(a)(3) above.


<PAGE>

Annual report  pursuant to Section 13 or 15(d) of the  Securities  Exchange
Act of 1934 for the fiscal year ended December 31, 2001

ASSET BACKED FUNDING CORPORATION
Asset Backed Funding Certificates, Series 1999-1
-----------------------------------------------------------------------

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.

 I, Rebekah Pappachen, 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 Funding Corporation.

 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  servicing information required to be provided
      to the trustee by the servicer under the pooling and servicing agreement
      is included in these reports.


                                     JPMorgan Chase Bank
                                     not in its individual capacity but solely
                                     as Trustee under the Agreement
                                     referred to herein


Date: September 20, 2002               By: /s/ Rebekah Pappachen
                                     -------------------------------------
                                        Rebekah Pappachen
                                        Trust Officer


<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.





                                 EXHIBIT INDEX

Exhibit     Description

 99.1       Servicer's Annual Statement of Compliance
 99.2       Servicer's Annual Independent Accountant's Report


EXHIBIT 99.1 - Servicer's Annual Statement of Compliance



<page>






LITTON LOAN SERVICING, LP
an affiliate of C-Bass

4828 Loop Central Drive                               Telephone 713.960.9676
Houston, Texas  77081                                       Fax 713.960.0539




                            Litton Loan Servicing LP
             Compliance Certification Year Ended December 31, 2001
                Asset Backed Funding Certificates, Series 1999-1

     The undersigned  Officer of Litton Loan Servicing LP certifies that for the
year ended  December  31,  2001,  Litton has  complied  with Section 3.27 of the
Pooling and Servicing Agreement by and between Asset Backed Funding Corporation,
Inc., as Depositor,  Credit-Based  Asset  Servicing and  Securitization  LLC, as
seller,  The Chase  Manhattan  Bank, as Trustee and Litton Loan Servicing LP, as
Servicer, dated November 1, 1999, as they relate to the Internal Revenue Service
Information reporting requirements including those under Sections 6050J.

By:  /s/ Janice McClure                Dated:   May 14, 2002
      Janice McClure
     Senior Vice President



State of Texas

County of Harris

     Before me a Notary Public, on this day personally  appeared Janice McClure,
Senior Vice  President of Litton Loan Servicing LP, known to me to be the person
whose name is subscribed to the foregoing instrument and acknowledged to me that
she executed that same for the purposes and consideration therein expressed.

Given under my hand and seal of office this 14th day of May, 2002.

/s/ Laurie L. Fourtherston
Laurie Foutherston
Notary Public State of Texas
My Commission Expires 02-04-2006




<page>









LITTON LOAN SERVICING, LP
an affiliate of C-Bass

4828 Loop Central Drive                               Telephone 713.960.9676
Houston, Texas  77081                                       Fax 713.960.0539



January 18, 2002

     As of December  31,  2001,  Litton Loan  Servicing  LP has  complied in all
material  respects with the minimum  servicing set forth in the Mortgage Bankers
Association of America's  Uniform Single Attestion Program for Mortgage Bankers.
As of and for  this  same  period,  Litton  Loan  Servicing  LP had in  effect a
fidelity bond in the amount of $15,000,000 and an errors and omissions policy in
the amount of $15,000,000.


/s/ Larry B. Litton, Sr.
      Larry B. Litton, Sr., President & CEO



/s/ Janice McClure
      Janice McClure, Senior Vice President




<page>

EXHIBIT 99.2 - Servicer's Annual Independent Accountant's Report




Deloitte & Touche LLP
Suite 2300
333 Clay Street
Houston, Texas  77002

INDEPENDENT AUDITORS' REPORT

To the Partners of
        Litton Loan Servicing LP:

     We have examined  management's  assertion  about Litton Loan Servicing LP's
(the "Company")  compliance with the minimum servicing  standards  identified in
the Mortgage Bankers Association of America's Uniform Single Attestation Program
for Mortgage Bankers as of and for the year ended December 31, 2001, included in
the  accompanying  management  assertion.  Management  is  responsible  for  the
Company's compliance with those minimum servicing standards.  Our responsibility
is  to  express  an  opinion  on  management's  assertion  about  the  Company's
compliance based on our examination.

     Our examination  was made in accordance  with standards  established by the
American  Institute of Certified Public Accountants and,  accordingly,  included
examining, on a test basis, evidence about the Company's compliance with 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 of the Company's compliance with the minimum servicing standards.

     In our opinion,  management's  assertion that the Company complied with the
aforementioned minimum servicing standards as of and for the year ended December
31, 2001 is fairly stated, in all material respects.

January 18, 2002