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                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-Q

[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
      SECURITIES EXCHANGE ACT OF 1934

      FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 2000

                                       OR

[ ]  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 0-26686

                 FIRST INVESTORS FINANCIAL SERVICES GROUP, INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

                    TEXAS                                        76-0465087
       (STATE OR OTHER JURISDICTION OF                        (I.R.S. EMPLOYER
        INCORPORATION OR ORGANIZATION)                      IDENTIFICATION NO.)

         675 BERING DRIVE, SUITE 710
                HOUSTON, TEXAS                                     77057
   (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                      (ZIP CODE)

                                 (713) 977-2600
              (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)

     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 THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES
OF COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE.

                                                                   SHARES
                                                               OUTSTANDING AT
                    CLASS                                    NOVEMBER 30, 2000
                    -----                                    -----------------
         COMMON STOCK-$.001 PAR VALUE                            5,566,669

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<PAGE>
                 FIRST INVESTORS FINANCIAL SERVICES GROUP, INC.
                                AND SUBSIDIARIES

                                   FORM 10-Q

                                OCTOBER 31, 2000

                               TABLE OF CONTENTS

                                                              PAGE NO.
                                                              --------
PART I     FINANCIAL INFORMATION

           ITEM 1.   FINANCIAL STATEMENTS

                     CONSOLIDATED BALANCE SHEETS AS OF
                     APRIL 30, 2000 AND OCTOBER 31, 2000..        3

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                     FOR THE THREE MONTHS AND SIX MONTHS
                     ENDED OCTOBER 31, 1999 AND 2000......        4

                     CONSOLIDATED STATEMENT OF
                     SHAREHOLDERS' EQUITY FOR THE SIX
                     MONTHS ENDED OCTOBER 31, 2000........        5

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                     FOR THE SIX MONTHS ENDED
                     OCTOBER 31, 1999 AND 2000............        6

           ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS
                     OF FINANCIAL CONDITION AND RESULTS OF
                     OPERATIONS...........................       15

           ITEM 3.   QUANTITATIVE AND QUALITATIVE
                     DISCLOSURES ABOUT MARKET RISK........       24

PART II    OTHER INFORMATION

           ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K.....       26

           SIGNATURES.....................................       27

                                       2
<PAGE>
        FIRST INVESTORS FINANCIAL SERVICES GROUP, INC. AND SUBSIDIARIES
       CONSOLIDATED BALANCE SHEETS -- APRIL 30, 2000 AND OCTOBER 31, 2000

                                          APRIL 30,        OCTOBER 31,
                                             2000              2000
                                         ------------      ------------
                                          (AUDITED)        (UNAUDITED)
               ASSETS
               ------
Receivables Held for Investment, net.    $235,954,788      $256,446,833
Receivables Acquired for Investment,
  net................................      21,888,454        24,886,471
Investment in Trust Certificates.....       5,848,688         3,287,052
Cash and Short-Term Investments,
  including restricted cash of
  $23,411,293 and $26,352,105........      25,520,158        27,536,160
Accrued Interest.....................       3,313,630         3,749,491
Assets Held for Sale.................       1,007,256         1,118,379
Other Assets:
     Funds held under reinsurance
       agreement.....................       3,842,641         3,668,219
     Deferred financing costs and
       other assets, net of
       accumulated amortization and
       depreciation of $3,133,823 and
       $4,095,537....................       5,818,338         6,040,172
     Current income taxes receivable,
       net...........................         --                 39,915
     Deferred income taxes
       receivable, net...............          64,875           --
                                         ------------      ------------
          Total assets...............    $303,258,828      $326,772,692
                                         ============      ============
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Debt:
     Term Notes......................    $151,104,279      $116,226,377
     Acquisition term facility.......      26,211,787        15,765,448
     Warehouse credit facilities.....      77,544,889       143,519,128
     Working capital facility........      13,300,000        13,300,000
Other Liabilities:
     Accounts payable and accrued
       liabilities...................       4,444,984         3,799,894
     Current income taxes payable....         527,042           --
     Deferred income taxes payable...         --                 48,181
                                         ------------      ------------
          Total liabilities..........     273,132,981       292,659,028
                                         ------------      ------------

Commitments and Contingencies
Minority Interest....................         --              2,988,257
Shareholders' Equity:
     Common stock, $0.001 par value,
       10,000,000 shares authorized,
       5,566,669 and 5,566,669 issued
       and outstanding...............           5,567             5,567
     Additional paid-in capital......      18,464,918        18,464,918
     Retained earnings...............      11,655,362        12,654,922
                                         ------------      ------------
          Total shareholders'
           equity....................      30,125,847        31,125,407
                                         ------------      ------------
          Total liabilities and
           shareholders' equity......    $303,258,828      $326,772,692
                                         ============      ============

  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                       3
<PAGE>
        FIRST INVESTORS FINANCIAL SERVICES GROUP, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
      FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 31, 1999 AND 2000
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                          FOR THE THREE MONTHS         FOR THE SIX MONTHS
                                            ENDED OCTOBER 31,           ENDED OCTOBER 31,
                                        -------------------------   -------------------------
                                           1999          2000          1999          2000
                                        -----------   -----------   -----------   -----------
<S>                                     <C>           <C>           <C>           <C>
Interest Income......................   $10,063,124   $11,601,863   $19,672,457   $22,591,054
Interest Expense.....................     3,984,995     5,079,741     7,864,683    10,170,739
                                        -----------   -----------   -----------   -----------
          Net interest income........     6,078,129     6,522,122    11,807,774    12,420,315
Provision for Credit Losses..........     1,912,398     2,328,800     3,068,572     4,308,450
                                        -----------   -----------   -----------   -----------
Net Interest Income After Provision
  for Credit Losses..................     4,165,731     4,193,322     8,739,202     8,111,865
                                        -----------   -----------   -----------   -----------
Other Income:
     Servicing.......................       346,021       143,016       750,022       346,844
     Late fees and other.............       764,830       819,158     1,272,171     1,459,393
                                        -----------   -----------   -----------   -----------
          Total other income.........     1,110,851       962,174     2,022,193     1,806,237
Operating Expenses:
     Servicing fees..................       --            --            434,572       --
     Salaries and benefits...........     2,502,347     2,322,243     4,696,925     4,715,591
     Other interest expense..........       243,205       346,976       470,037       678,363
     Other...........................     1,309,909     1,350,325     2,832,573     2,609,302
                                        -----------   -----------   -----------   -----------
          Total operating expenses...     4,055,461     4,019,544     8,434,107     8,003,256
                                        -----------   -----------   -----------   -----------
Income Before Provision for Income
  Taxes and Minority Interest........     1,221,121     1,135,952     2,327,288     1,914,846
                                        -----------   -----------   -----------   -----------
Provision (Benefit) for Income Taxes:
     Current.........................       979,475       178,678     1,655,344       585,863
     Deferred........................      (533,766)      235,944      (805,884)      113,056
                                        -----------   -----------   -----------   -----------
          Total provision for income
            taxes....................       445,709       414,622       849,460       698,919
Minority Interest....................       --            216,367       --            216,367
                                        -----------   -----------   -----------   -----------
Net Income...........................   $   775,412   $   504,963   $ 1,477,828   $   999,560
                                        ===========   ===========   ===========   ===========
Basic and Diluted Net Income per
  Common Share.......................         $0.14         $0.09         $0.27         $0.18
                                        ===========   ===========   ===========   ===========
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                       4
<PAGE>
        FIRST INVESTORS FINANCIAL SERVICES GROUP, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
                   FOR THE SIX MONTHS ENDED OCTOBER 31, 2000
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                     ADDITIONAL
                                        COMMON         PAID-IN         RETAINED
                                         STOCK         CAPITAL         EARNINGS           TOTAL
                                        -------      -----------      -----------      -----------
<S>                                     <C>          <C>              <C>              <C>
Balance, April 30, 2000..............   $5,567       $18,464,918      $11,655,362      $30,125,847
     Net income......................     --             --               999,560          999,560
                                        ------       -----------      -----------      -----------
Balance, October 31, 2000............   $5,567       $18,464,918      $12,654,922      $31,125,407
                                        ======       ===========      ===========      ===========
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                       5
<PAGE>
        FIRST INVESTORS FINANCIAL SERVICES GROUP, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
               FOR THE SIX MONTHS ENDED OCTOBER 31, 1999 AND 2000
                                  (UNAUDITED)

                                             1999               2000
                                         ------------       ------------
Cash Flows From Operating Activities:
     Net income......................    $  1,477,828       $    999,560
     Adjustments to reconcile net
       income to net cash provided by
       (used in) operating
       activities --
          Depreciation and
            amortization expense.....       2,124,287          2,913,458
          Provision for credit
            losses...................       3,068,572          4,308,450
          Charge-offs, net of
            recoveries...............      (2,653,139)        (4,117,504)
          Minority Interest..........         --                 216,367
     (Increase) decrease in:
          Accrued interest receivable        (848,642)          (435,861)
          Restricted cash............     (15,088,015)        (2,940,812)
          Deferred financing costs
            and other assets.........        (789,711)        (1,275,412)
          Funds held under
            reinsurance agreement....         289,628            174,422
          Due from servicer..........      14,065,957            --
          Deferred income taxes
            receivable, net..........        (805,884)            64,875
          Current income taxes
            receivable, net..........         --                 (39,915)
     Increase (decrease) in:
          Accounts payable and
            accrued liabilities......      (1,976,289)          (645,090)
          Current income taxes
            payable..................         793,204           (527,042)
          Deferred income taxes
            payable..................         --                  48,181
                                         ------------       ------------
               Net cash used in
                 operating
                 activities..........        (342,204)        (1,256,323)
                                         ------------       ------------
Cash Flows From Investing Activities:
     Purchase of Receivables Held for
       Investment....................     (71,407,840)       (70,231,827)
     Purchase of Receivables Acquired
       for Investment................         --              (8,110,849)
     Principal payments from
       Receivables Held for
       Investment....................      39,556,953         47,916,958
     Principal payments from
       Receivables Acquired for
       Investment....................      10,862,174          5,112,832
     Principal payments from Trust
       Certificates..................       3,146,780          2,561,636
     Purchase of furniture and
       equipment.....................         (13,678)          (339,125)
                                         ------------       ------------
               Net cash used in
                 investing
                 activities..........     (17,855,611)       (23,090,375)
                                         ------------       ------------
Cash Flows From Financing Activities:
     Proceeds from advances on --
          Warehouse credit
            facilities...............      61,685,546         70,816,190
          Working capital facility...      11,565,000            --
     Principal payments made on --
          Term Notes.................         --             (34,877,902)
          Warehouse credit
            facilities...............     (35,335,474)        (4,841,951)
          Working capital facility...      (6,300,000)           --
          Acquisition term
            facility.................     (16,206,878)       (10,446,339)
     Minority Interest upon formation
       of partnership................         --               2,771,890
                                         ------------       ------------
               Net cash provided by
                 financing
                 activities..........      15,408,194         23,421,888
                                         ------------       ------------
Decrease in Cash and Short-Term
  Investments........................      (2,789,621)          (924,810)
Cash and Short-Term Investments at
  Beginning of Period................       4,028,236          2,108,865
                                         ------------       ------------
Cash and Short-Term Investments at
  End of Period......................    $  1,238,615       $  1,184,055
                                         ============       ============
Supplemental Disclosures of Cash Flow
  Information:
     Cash paid during the period
       for --
          Interest...................    $  7,575,878       $  9,367,365
          Income taxes...............         862,140          1,028,452

  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                       6
<PAGE>
        FIRST INVESTORS FINANCIAL SERVICES GROUP, INC. AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                           OCTOBER 31, 1999 AND 2000

1.  THE COMPANY

     ORGANIZATION.  First Investors Financial Services Group, Inc. (First
Investors) together with its wholly and majority owned subsidiaries
(collectively referred to as the Company) is principally involved in the
business of acquiring and holding for investment retail installment contracts
and promissory notes secured by new and used automobiles and light trucks
(receivables) originated by factory authorized franchised dealers. As of
October 31, 2000, approximately 25 percent of Receivables Held for Investment
had been originated in Texas. The Company currently operates in 26 states.

     On October 2, 1998, the Company completed the acquisition of First
Investors Servicing Corporation (FISC) formerly known as Auto Lenders Acceptance
Corporation. Headquartered in Atlanta, Georgia, FISC was engaged in essentially
the same business as the Company and additionally performs servicing and
collection activities on a portfolio of receivables acquired for investment as
well as on a portfolio of receivables acquired and sold pursuant to two asset
securitizations. As a result of the acquisition, the Company increased the total
dollar value on its balance sheet of receivables, acquired an interest in
certain Trust Certificates related to the asset securitizations and acquired
certain servicing rights along with furniture, fixtures, equipment and
technology to perform the servicing and collection functions for the portfolio
of receivables under management. The Company performs servicing and collection
functions on loans originated from 31 states on a Managed Receivables Portfolio
of $291.2 million as of October 31, 2000.

     On August 8, 2000, the Company entered into a partnership agreement whereby
a subsidiary of the Company is the general partner owning 70 percent of the
partnership assets and First Union Investors, Inc. serves as the limited partner
and owns 30 percent of the partnership assets (the "Partnership"). The
Partnership consists primarily of (i) a portfolio of loans previously owned by
FISC, (ii) ownership interest in certain Trust Certificates and subordinated
spread or cash reserve accounts related to two asset securitizations previously
conducted by FISC, and (iii) certain other financial assets, including
charged-off accounts owned by FISC.

2.  SIGNIFICANT ACCOUNTING POLICIES

     BASIS OF PRESENTATION.  The consolidated financial statements include the
accounts of First Investors and its wholly and majority owned subsidiaries. All
significant intercompany accounts and transactions have been eliminated.

     The results for the interim periods are not necessarily indicative of the
results of operations that may be expected for the fiscal year. In the opinion
of management, the information furnished reflects all adjustments which are of a
normal recurring nature and are necessary for a fair presentation of the
Company's financial position as of October 31, 2000, and the results of its
operations for the three months and six months ended October 31, 1999 and 2000,
and its cash flows for the six months ended October 31, 1999 and 2000.

     The consolidated financial statements for the interim periods have been
prepared pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the disclosures are adequate to
make the information not misleading. These financial statements should be read
in conjunction with the audited consolidated financial statements included in
the Company's 2000 Annual Report on Form 10-K filed July 21, 2000.

                                       7
<PAGE>
        FIRST INVESTORS FINANCIAL SERVICES GROUP, INC. AND SUBSIDIARIES
      NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

     DERIVATIVES.  In June 1998, the Financial Accounting Standards Board (FASB)
issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities". SFAS No. 133 establishes accounting and reporting standards
requiring that every derivative instrument (including certain derivative
instruments embedded in other contracts) be recorded in the balance sheet as
either an asset or liability at its fair value. The Statement requires that
changes in the derivative's fair value be recognized currently in earnings
unless specific hedge accounting criteria are met. In June 2000, the FASB issued
SFAS No. 138, "Accounting for Certain Derivative Instruments and Certain Hedging
Activities -- an Amendment of FASB Statement No. 133." The Company will adopt
SFAS No. 133 concurrently with SFAS No. 138 effective for its fiscal year
beginning May 1, 2001. Currently, the Company anticipates to designate the
interest rate swaps and caps as cash flow hedges and will be required to
mark-to-market its hedging positions at the end of each period when the
implementation of SFAS No. 133 and 138 take effect. Changes in the fair value of
the Company's open hedging positions resulting from the mark-to-market process
will represent unrealized gains and losses. Such unrealized gains and losses may
change based on prevailing interest rates at each subsequent balance sheet date.
Such changes will be reflected as an increase or reduction in stockholders'
equity through other comprehensive income. In addition, the Company will be
required to measure the effectiveness of its hedging positions periodically, any
ineffectiveness in the hedging positions will be recorded through net income. In
general, SFAS No. 133 and 138 will result in material fluctuations in other
comprehensive income, net income and stockholder's equity in periods of interest
rate volatility.

     RECLASSIFICATIONS.  Certain reclassifications have been made to the fiscal
2000 amounts to conform with the fiscal 2001 presentation.

3.  RECEIVABLES HELD FOR INVESTMENT

     Net receivables consisted of the following:

                                          APRIL 30,         OCTOBER 31,
                                             2000               2000
                                         ------------       ------------
Receivables..........................    $231,696,539       $252,114,772
Unamortized premium and deferred
  fees...............................       6,392,243          6,657,001
Allowance for credit losses..........      (2,133,994)        (2,324,940)
                                         ------------       ------------
     Net receivables.................    $235,954,788       $256,446,833
                                         ============       ============

     Activity in the allowance for credit losses was as follows:

                                               FOR THE SIX MONTHS
                                                ENDED OCTOBER 31,
                                         -------------------------------
                                             1999               2000
                                         ------------       ------------
Balance, beginning of period.........    $  1,529,651       $  2,133,994
Provision for credit losses..........       3,068,572          4,308,450
Charge-offs, net of recoveries.......      (2,653,139)        (4,117,504)
                                         ------------       ------------
Balance, end of period...............    $  1,945,084       $  2,324,940
                                         ============       ============

4.  RECEIVABLES ACQUIRED FOR INVESTMENT

     Loans purchased at a discount relating to credit quality were included in
the balance sheet amounts of Receivables Acquired for Investment as follows as
of April 30, 2000 and October 31, 2000. The fiscal year 2000 contract payments
receivable was net of an estimate of future cash flows that were to be sold to
the limited partner. For October 31, 2000, the contract payments

                                       8
<PAGE>
        FIRST INVESTORS FINANCIAL SERVICES GROUP, INC. AND SUBSIDIARIES
      NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

receivable does not net estimated future cash flows payable to others and
instead such amounts are included as minority interest.

                                             APRIL 30,      OCTOBER 31,
                                                2000            2000
                                            ------------    ------------
Contractual payments receivable from
  Receivables Acquired for Investment
  purchased at a discount relating to
  credit quality........................    $ 31,198,093    $ 32,346,105
Nonaccretable difference................      (5,387,268)     (2,945,689)
Accretable yield........................      (3,922,371)     (4,513,945)
                                            ------------    ------------
Receivables Acquired for Investment
  purchased at a discount relating to
  credit quality, net...................    $ 21,888,454    $ 24,886,471
                                            ============    ============

     The carrying amount of Receivables Acquired for Investment are net of
accretable yield and nonaccretable difference. Nonaccretable difference
represents contractual principal and interest payments that the Company has
determined that it would be unable to collect.

                                            NONACCRETABLE       ACCRETABLE
                                             DIFFERENCE            YIELD
                                            -------------       -----------
Balance at April 30, 2000...............     $ 5,387,268        $ 3,922,371
     Additions..........................       1,216,732            671,297
     Accretion..........................         --              (1,679,632)
     Eliminations.......................      (3,486,163)           --
     Consolidation of partnership.......         --               1,427,761
     Reclassifications..................        (172,148)           172,148
                                             -----------        -----------
Balance at October 31, 2000.............     $ 2,945,689        $ 4,513,945
                                             ===========        ===========

     Additions to accretable yield and nonaccretable difference relate to the
repurchase of ALAC Automobile Receivables Owner Trust 1997-1. See Note 5 --
FIACC Commercial Paper Facility.

     Nonaccretable difference eliminations represent contractual principal and
interest amounts on loans charged-off for the period ended October 31, 2000. The
increase in accretable yield includes a reclassification from nonaccretable
difference for cash flows expected to be collected in excess of those previously
expected. Accretable yield also increased due to the creation of the Partnership
on August 8, 2000 to share in the income from Receivables Acquired for
Investment. Partnership income accrues through accretable yield and the limited
partner's portion is accounted for as a minority interest. See
Note 5 -- Acquisition Facility.

5.  DEBT

     The Company finances the acquisition of its receivables portfolio through
various warehouse credit facilities. The Company's credit facilities provide for
one year terms and have been renewed annually. Management of the Company
believes that the credit facilities will continue to be renewed or extended or
that it would be able to secure alternate financing on satisfactory terms;
however, there can be no assurance that it will be able to do so. In January
2000, the Company issued $168 million in asset-backed notes ("Term Notes")
secured by a pool of receivables. Proceeds from the note issuance were used to
repay outstanding borrowings under the various revolving credit facilities.
Substantially all receivables retained by the Company are pledged as collateral
for the credit facilities and the Term Notes.

     FIRC CREDIT FACILITY.  Borrowings under the FIRC credit facility were
$59,540,000 and $58,590,000 at April 30, 2000 and October 31, 2000,
respectively, and had weighted average interest rates, including the effect of
facility fees and hedge instruments, as applicable, of 6.21

                                       9
<PAGE>
        FIRST INVESTORS FINANCIAL SERVICES GROUP, INC. AND SUBSIDIARIES
      NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

percent and 7.17 percent as of such dates. The current term of the FIRC credit
facility expires on November 14, 2001. This maturity date reflects a renewal of
the facility effective November 15, 2000. Under the terms of the renewal, the
maximum facility limit will be reduced from $65 million to $50 million effective
December 31, 2000 to coincide with the increase in the FIARC commercial paper
facility. Further, under the renewal mechanics of the facility, should the
lenders elect not to renew the facility beyond November 14, 2001, the facility
would convert to a term loan facility which would mature six months thereafter
and amortize monthly in accordance with the borrowing base with any remaining
balance due at maturity. No other material changes were made to the existing
terms and conditions of the facility in connection with the renewal.

     FIARC COMMERCIAL PAPER FACILITY.  At April 30, 2000 and October 31, 2000,
the Company had borrowings of $18,004,889 and $78,911,803, respectively,
outstanding under the commercial paper facility at weighted average interest
rates, including the effect of program fees, dealer fees and hedge instruments,
as applicable, of 7.33 percent and 7.29 percent, respectively. The current term
of the FIARC commercial paper facility expires on November 28, 2001. This
maturity date reflects a renewal of the facility effective November 29, 2000.
Pursuant to this renewal, the maximum facility amount was increased from
$135 million to $150 million and the overcollateralization which serves as the
primary credit enhancement for the facility was reduced from 10 percent to 6
percent allowing the Company to now borrow up to 94 percent against the
receivables pledged as collateral for the FIARC commercial paper facility. No
other material changes were made to the terms and conditions of the facility in
connection with the renewal. If the facility was not extended beyond the
maturity date, receivables pledged as collateral would be allowed to amortize;
however, no new receivables would be allowed to be transferred from the FIRC
credit facility.

     FIACC COMMERCIAL PAPER FACILITY.  At October 31, 2000, borrowings were
$6,017,325 under the FIACC commercial paper facility, and had a weighted average
interest rate of 7.64 percent, including the effects of program fees and hedge
instruments. There were no outstanding borrowings at April 30, 2000. The current
term of the FIACC commercial paper facility expires on December 31, 2000. If the
facility was not extended, no new receivables could be transferred to FIACC and
the receivables pledged as collateral would be allowed to amortize. The Company
presently intends to seek an extension of this arrangement prior to its
expiration.

     On September 15, 2000, the Company elected to exercise its right to
repurchase the senior notes issued in connection with the ALAC Automobile
Receivables Owner Trust 1997-1. Accordingly, the Company acquired $8,110,849 in
outstanding receivables from the trust and borrowed $6,408,150 under the FIACC
facility which, combined with amounts on deposit in the collection account and
the outstanding balance in a cash reserve account, was utilized to repay
$7,874,689 in senior notes and redeem $1,033,456 of the trust certificates. The
receivables purchased were used as collateral to secure the FIACC borrowing with
any residual cash flows generated by the receivables pledged to the Partnership.
As a result of utilizing FIACC to fund the repurchase of the ALAC
securitization, the Company has elected to utilize the FIACC commercial paper
facility solely as the financing source for this repurchase and does not expect
to utilize the facility to finance Receivables Held for Investment.

     TERM NOTES.  On January 24, 2000, the Company, through its indirect,
wholly-owned subsidiary First Investors Auto Owner Trust 2000-A ("Auto Trust")
completed the issuance of $167,969,000 of 7.174 percent asset-backed notes
("Notes"). The Notes are secured by a pool of automobile receivables totaling
$174,968,641, which were previously owned by FIRC, FIARC and

                                       10
<PAGE>
        FIRST INVESTORS FINANCIAL SERVICES GROUP, INC. AND SUBSIDIARIES
      NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

FIACC. Proceeds from the issuance, which totaled $167,967,690 were used to repay
all outstanding borrowings under the FIARC and FIACC commercial paper
facilities, to reduce the outstanding borrowings under the FIRC credit facility,
to pay transaction fees related to the Note issuance and to fund a cash reserve
account of 2 percent or $3,499,373 which will serve as a portion of the credit
enhancement for the transaction. The Notes bear interest at 7.174 percent and
require monthly principal reductions sufficient to reduce the balance of the
Notes to 96 percent of the outstanding balance of the underlying receivables
pool. The final maturity of the Notes is February 15, 2006. As of April 30, 2000
and October 31, 2000, the outstanding principal balance on the Notes was
$151,104,279 and $116,226,377, respectively and had weighted average interest
rates, including the effect of surety bond fees and hedge instruments, as
applicable, of 6.99 percent and 7.84 percent, respectively. A surety bond issued
by MBIA Insurance Corporation provides credit enhancement for the Note holders.
Additional credit support is provided by the cash reserve account, which equals
2 percent of the original balance of the receivables pool and a 4 percent
over-collateralization requirement. In the event that certain asset quality
covenants are not met, the reserve account target level will increase to 6
percent of the then current principal balance of the receivables pool.

     ACQUISITION FACILITY.  On October 2, 1998, the Company, through its
indirect, wholly-owned subsidiary, FIFS Acquisition Funding Company LLC (FIFS
Acquisition), entered into a $75 million non-recourse bridge financing facility
with Variable Funding Capital Corporation ("VFCC"), an affiliate of First Union
National Bank, to finance the Company's acquisition of FISC. Contemporaneously
with the Company's purchase of FISC, FISC transferred certain assets to FIFS
Acquisition, consisting primarily of (i) all receivables owned by FISC as of the
acquisition date, (ii) FISC's ownership interest in certain Trust Certificates
and subordinated spread or cash reserve accounts related to two asset
securitizations previously conducted by FISC, and (iii) certain other financial
assets, including charged-off accounts owned by FISC as of the acquisition date.
These assets, along with a $1 million cash reserve account funded at closing
serve as the collateral for the bridge facility. The facility bears interest at
VFCC's commercial paper rate plus 2.35 percent and expired on August 14, 2000.
Under the terms of the facility, all cash collections from the receivables or
cash distributions to the certificate holder under the securitizations are first
applied to pay FISC a servicing fee in the amount of 3 percent on the
outstanding balance of all owned or managed receivables and then to pay interest
on the facility. Excess cash flow available after servicing fees and interest
payments are utilized to reduce the outstanding principal balance on the
indebtedness.

     On August 8, 2000, the Company entered into an agreement with First Union
to refinance the acquisition facility. Under the agreement, a partnership was
created in which FIFS Acquisition serves as the general partner and contributed
its assets for a 70 percent interest in the partnership and First Union
Investors, Inc., an affiliate of First Union, serves as the limited partner with
a 30 percent interest in the partnership (the "Partnership"). Pursuant to the
refinancing, the Partnership issued Class A Notes in the amount of $19,204,362
and Class B Notes in the amount of $979,453 to VFCC, the proceeds of which were
used to retire the acquisition debt. The Class A Notes bear interest at VFCC's
commercial paper rate plus 0.95 percent per annum and amortize on a monthly
basis by an amount necessary to reduce the Class A Note balance as of the
payment date to 75 percent of the outstanding principal balance of Receivables
Acquired for Investment, excluding Receivables Held for Investment that are
applicable to FIACC, as of the previous month end. The Class B Notes bear
interest at VFCC's commercial paper rate plus 5.38 percent per annum and
amortize on a monthly basis by an amount which varied based on excess cash flows
received from Receivables Acquired for Investment after payment of servicing
fees, trustee and back-up servicer fees, Class A Note interest and Class A Note
principal, plus collections

                                       11
<PAGE>
        FIRST INVESTORS FINANCIAL SERVICES GROUP, INC. AND SUBSIDIARIES
      NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

received on the Trust Certificates. The outstanding balance of the Class A Notes
was $15,765,448 as of October 31, 2000. There were no Class B Notes outstanding
as of October 31, 2000. After the Class B Notes were paid in full, all cash
flows received after payment of Class A Note principal and interest, servicing
fees and other costs, are distributed to the Partnership for subsequent
distribution to the partners based upon the respective partnership interests.
The amount of the partners' cash flow will vary depending on the timing and
amount of residual cash flows. The Company is accounting for First Union's
limited partnership interest in the Partnership as a minority interest.

     WORKING CAPITAL FACILITY.  The Company also maintains a $13.5 million
working capital line of credit with Bank of America and First Union National
Bank that is utilized for working capital and general corporate purposes. The
facility was increased from $10 million to $13.5 million in December, 1999. At
April 30, 2000 and October 31, 2000, there was $13,300,000 outstanding under
this facility. The current expiration of the facility is December 22, 2000. If
the lender elected not to renew, any outstanding borrowings would be amortized
over a one-year period. The Company is currently in final negotiations and
documentation with its lenders regarding the renewal and extension of this
facility. Under the contemplated terms of the renewal, the revolving facility
would be converted to a term loan facility and the Company would begin to
amortize the outstanding principal balance in accordance with a negotiated
repayment schedule. The facility would be secured by all assets of the Company
other than receivables pledged to secure the warehouse credit facilities or the
Term Notes. Management considers its relationship with the lenders under this
facility to be satisfactory and has no reason to believe that this credit
facility will not be renewed. If the facility was not renewed however, or if
material changes were made to its terms and conditions, it could have a material
adverse effect on the Company.

     INTEREST RATE MANAGEMENT.  The Company's secured credit facilities bear
interest at floating interest rates which are reset on a short-term basis while
the secured Term Notes bear interest at a fixed rate of interest. The Company's
receivables bear interest at fixed rates which do not generally vary with the
change in interest rates. Since a primary contributor to the Company's
profitability is its ability to manage its net interest spread, the Company
seeks to maximize the net interest spread while minimizing exposure to changes
in interest rates. In connection with managing the net interest spread, the
Company may periodically enter into interest rate swaps or caps to minimize the
effects of market interest rate fluctuations on the net interest spread. To the
extent that the Company has outstanding floating rate borrowings or has elected
to convert a portion of its borrowings from fixed rates to floating rates, the
Company will be exposed to fluctuations in short-term interest rates.

     The Company was previously a party to a swap agreement with Bank of America
pursuant to which the Company's interest rate was fixed at 5.565 percent on a
notional amount of $120 million. The swap agreement expired on January 12, 2000.
In connection with the issuance of the Notes, the Company entered into a swap
agreement with Bank of America pursuant to which the Company pays a floating
rate equal to the prevailing one month LIBOR rate plus 0.505 percent and
receives a fixed rate of 7.174 percent from the counterparty. The initial
notional amount of the swap was $167,969,000 which amortizes in accordance with
the expected amortization of the Notes. Final maturity of the swap is
August 15, 2002.

     On September 27, 2000, the Company elected to terminate the floating swap
at no material gain or loss and enter into a new swap under which the Company
would pay a fixed rate of 6.30 percent on a notional amount of $100 million. The
initial expiration of the swap is April 15, 2001 though the counterparty has the
option to extend the swap for an additional three years, expiring April 15, 2004
at a rate of 6.42 percent.

                                       12
<PAGE>
        FIRST INVESTORS FINANCIAL SERVICES GROUP, INC. AND SUBSIDIARIES
      NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

     In connection with the repurchase of the ALAC 97-1 Securitization and the
financing of that repurchase through the FIACC subsidiary on September 15, 2000,
FIACC entered into an interest rate swap agreement with First Union under which
FIACC pays a fixed rate of 6.76 percent as compared to the one month commercial
paper index rate. The initial notional amount of the swap is $6,408,150 which
amortizes monthly in accordance with the expected amortization of the FIACC
borrowings. The final maturity of the swap is December 15, 2001.

     On October 2, 1998, in connection with the $75 million acquisition
facility, the Company, through FIFS Acquisition, entered into a series of
hedging instruments with First Union National Bank designed to hedge floating
rate borrowings under the acquisition facility against changes in market rates.
Accordingly, the Company entered into two interest rate swap agreements, the
first in the initial notional amount of $50.1 million ("Class A swap") pursuant
to which the Company's interest rate is fixed at 4.81 percent; and, the second
in the initial notional amount of $24.9 million ("Class B swap") pursuant to
which the Company's interest rate is fixed at 5.50 percent. The notional amount
outstanding under each swap agreement amortizes based on an implied amortization
of the hedged indebtedness. Class A swap has a final maturity of December 20,
2002, while Class B swap matured on February 20, 2000. The Company also
purchased two interest rate caps which protect the Company and the lender
against any material increases in interest rates which may adversely affect any
outstanding indebtedness which is not fully covered by the aggregate notional
amount outstanding under the swaps. The first cap agreement ("Class A cap")
enables the Company to receive payments from the counterparty in the event that
the one-month commercial paper rate exceeds 4.81 percent on a notional amount
that increases initially and then amortized based on the expected difference
between the outstanding notional amount under Class A swap and the underlying
indebtedness. The interest rate cap expires December 20, 2002 and the cost of
the cap is amortized in interest for the period. The second cap agreement
("Class B cap") enables the Company to receive payments from the counterparty in
the event that the one-month commercial paper rate exceeds 6 percent on a
notional amount that increases initially and then amortizes based on the
expected difference between the outstanding notional amount under Class B swap
and the underlying indebtedness. The interest rate cap expires February 20, 2002
and the cost of the cap is imbedded in the fixed rate applicable to Swap B.
Pursuant to the refinance of the acquisition facility on August 8, 2000, the
Class B cap was terminated and the notional amounts of the Class A swap and
Class A cap were adjusted downward to reflect the lower outstanding balance of
the Class A Notes. The amendment or cancellation of these instruments resulted
in a gain of $418,609. This derivative net gain is being amortized over the life
of the initial derivative instrument. In addition, the two remaining hedge
instruments were assigned by FIFS Acquisition to the Partnership.

                                       13
<PAGE>
        FIRST INVESTORS FINANCIAL SERVICES GROUP, INC. AND SUBSIDIARIES
      NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

6.  EARNINGS PER SHARE

     Earnings per share amounts are based on the weighted average number of
shares of common stock and potential dilutive common shares outstanding during
the period. The weighted average number of shares used to compute basic and
diluted earnings per share for the three months and six months ended
October 31, 1999 and 2000, are as follows:

<TABLE>
<CAPTION>
                                              FOR THE THREE MONTHS            FOR THE SIX MONTHS
                                               ENDED OCTOBER 31,              ENDED OCTOBER 31,
                                            ------------------------       ------------------------
                                              1999           2000            1999           2000
                                            ---------      ---------       ---------      ---------
<S>                                         <C>            <C>             <C>            <C>
Weighted average shares:
  Weighted average shares outstanding
     for basic earnings per share.......    5,566,669      5,566,669       5,566,669      5,566,669
  Effect of dilutive stock options......       --             --              --                 28
                                            ---------      ---------       ---------      ---------
  Weighted average shares outstanding
     for diluted earnings per share.....    5,566,669      5,566,669       5,566,669      5,566,697
                                            =========      =========       =========      =========
</TABLE>

     For the three months ended October 31, 1999 and 2000 and the six months
ended October 31, 1999 and 2000, the Company had 135,500; 293,600; 135,500 and
293,572, respectively, of stock options which were not included in the
computation of diluted earnings per share because to do so would have been
antidilutive for the period presented.

7.  SERVICING

     From its inception until July 1999, the Company was a party to a servicing
agreement with General Electric Capital Corporation ("GECC") under which GECC
performed certain loan servicing and collection activities with respect to the
Company's portfolio of Receivables Held for Investment. Servicing fees were paid
monthly to GECC based on the number of receivables being serviced during the
period plus certain reimbursable expenses including legal and third party
recovery costs. Due from servicer primarily represents unremitted principal and
interest payments and proceeds from the sale of repossessed collateral. In July
1999, the Company elected to terminate the servicing agreement with GECC in
connection with the transfer of the servicing and collection activities on the
receivables to the Company's internal servicing and collection platform.

                                       14
<PAGE>
ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
           FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

     Net income for the three months ended October 31, 2000 was $504,963, a
decrease of 35% from that reported for the comparable period in the preceding
year of $775,412. Net income for the six months ended October 31, 2000 was
$999,560, a decrease of 32% from that reported for the comparable period in the
preceding year of $1,477,828. Earnings per common share were $0.09 for the three
months ended October 31, 2000, compared to $0.14 per common share for the prior
year period. Earnings per common share were $0.18 for the six months ended
October 31, 2000, compared to $0.27 per common share for the prior year period.

NET INTEREST INCOME

     The continued profitability of the Company during this period has been
achieved by the growth of the Receivables Held for Investment, income from
servicing activities and effective management of net interest income. The
following table summarizes the Company's growth in receivables and net interest
income (dollars in thousands):

                                            AS OF OR FOR THE
                                            SIX MONTHS ENDED
                                               OCTOBER 31,
                                         -----------------------
                                           1999           2000
                                         --------       --------
Receivables Held for Investment:
     Number..........................      17,878         20,638
     Principal balance...............    $211,138       $252,115
     Average principal balance of
       receivables outstanding during
       the six-month period..........     196,953        245,221
     Average principal balance of
       receivables outstanding during
       the three-month period........     206,077        251,002
Receivables Acquired for Investment:
     Number..........................       4,088          4,075
     Principal balance...............    $ 37,774       $ 26,855
Securitized Receivables(1):
     Number..........................       5,275          1,948
     Principal balance...............    $ 41,483       $ 12,216
Total Managed Receivables Portfolio:
     Number..........................      27,241         26,661
     Principal balance...............    $290,395       $291,186
------------

(1) Represents receivables previously owned by FISC which were sold in
    connection with two asset securitizations and on which the Company retains
    the servicing rights to those receivables. As of October 31, 2000, one of
    the asset securitizations liquidated and the receivables were repurchased.
    These receivables are included in Receivables Acquired for Investment.

                                       15
<PAGE>
<TABLE>
                                          THREE MONTHS ENDED        SIX MONTHS ENDED
                                              OCTOBER 31,              OCTOBER 31,
                                         ---------------------    ---------------------
                                          1999          2000       1999          2000
                                         -------       -------    -------       -------
<S>                                      <C>           <C>        <C>           <C>
Interest income(1):
     Receivables Held for
       Investment....................    $ 8,323       $10,464    $15,943       $20,213
     Receivables Acquired for
       Investment, Investment in
       Trust Certificates and
       Minority Interest(2)..........      1,741         1,138      3,730         2,378
                                         -------       -------    -------       -------
                                          10,064        11,602     19,673        22,591
Interest expense:
     Receivables Held for
       Investment(3).................      3,195         4,910      6,121         9,654
     Receivables Acquired for
       Investment and Investment in
       Trust Certificates............        791           170      1,744           517
                                         -------       -------    -------       -------
                                           3,986         5,080      7,865        10,171
                                         -------       -------    -------       -------
          Net interest income........    $ 6,078       $ 6,522    $11,808       $12,420
                                         =======       =======    =======       =======
</TABLE>

------------

(1) Amounts shown are net of amortization of premium and deferred fees.

(2) Amounts shown for the three and six months ended October 31, 2000 reflect
    $341 in interest income related to minority interest.

(3) Includes facility fees and fees on the unused portion of the credit
    facilities.

     The following table sets forth information with regard to the Company's net
interest spread, which represents the difference between the effective yield on
Receivables Held for Investment and the Company's average cost of debt utilized
to fund these receivables, and its net interest margin (averages based on
month-end balances):

<TABLE>
<CAPTION>
                                             THREE MONTHS            SIX MONTHS
                                                 ENDED                  ENDED
                                              OCTOBER 31,            OCTOBER 31,
                                           -----------------      -----------------
                                           1999         2000      1999         2000
                                           ----         ----      ----         ----
<S>                                        <C>          <C>       <C>          <C>
Receivables Held for Investment:
     Effective yield on Receivables
       Held for Investment(1)........      16.1%        16.7%     16.2%        16.5%
     Average cost of debt(2).........       6.5          7.7       6.4          8.1
                                           ----         ----      ----         ----
     Net interest spread(3)..........       9.6%         9.0%      9.8%         8.4%
                                           ====         ====      ====         ====
     Net interest margin(4)..........       9.9%         8.9%     10.0%         8.6%
                                           ====         ====      ====         ====
</TABLE>

------------

(1) Represents interest income as a percentage of average Receivables Held for
    Investment outstanding.

(2) Represents interest expense as a percentage of average debt outstanding.

(3) Represents yield on Receivables Held for Investment less average cost of
    debt.

(4) Represents net interest income as a percentage of average Receivables Held
    for Investment outstanding.

     Net interest income is the difference between interest earned from the
receivables portfolio and interest expense incurred on the credit facilities
used to acquire the receivables. Net interest income increased for the three
months and six months ended October 31, 2000 to $6.5 million and $12.4 million
from $6.1 million and $11.8 million for the comparable periods in the preceding
year. Net interest income in 2000 represents increases of 7% and 5% from the
same periods in 1999.

                                       16
<PAGE>
     Changes in the principal amount and rate components associated with the
Receivables Held for Investment and debt can be segregated to analyze the
periodic changes in net interest income on such receivables. The following table
analyzes the changes attributable to the principal amount and rate components of
net interest income (dollars in thousands):

<TABLE>
<CAPTION>
                                              THREE MONTHS ENDED                    SIX MONTHS ENDED
                                           OCTOBER 31, 1999 TO 2000             OCTOBER 31, 1999 TO 2000
                                       ---------------------------------    ---------------------------------
                                       INCREASE (DECREASE)                  INCREASE (DECREASE)
                                              DUE TO                               DUE TO
                                            CHANGE IN                            CHANGE IN
                                       --------------------                 --------------------
                                        AVERAGE                              AVERAGE
                                       PRINCIPAL    AVERAGE    TOTAL NET    PRINCIPAL    AVERAGE    TOTAL NET
                                        AMOUNT       RATE      INCREASE      AMOUNT       RATE      INCREASE
                                       ---------    -------    ---------    ---------    -------    ---------
<S>                                    <C>          <C>        <C>          <C>          <C>        <C>
Receivables Held for Investment:
     Interest income.................   $1,814       $ 327      $ 2,141      $3,907      $   363     $ 4,270
     Interest expense................      953         762        1,715       1,539        1,994       3,533
                                        ------       -----      -------      ------      -------     -------
     Net interest income.............   $  861       $(435)     $   426      $2,368      $(1,631)    $   737
                                        ======       =====      =======      ======      =======     =======
</TABLE>

RESULTS OF OPERATIONS

THREE MONTHS AND SIX MONTHS ENDED OCTOBER 31, 2000 AND 1999 (DOLLARS IN
THOUSANDS)

     INTEREST INCOME.  Interest income for the 2000 periods increased to $11,602
and $22,591 compared with $10,064 and $19,673 for the comparable periods in
1999. Interest income on Receivables Held for Investment increased 26% and 27%
over the 1999 periods. This is due to an increase in the average principal
balance of Receivables Held for Investment of 22% and 25% from the 1999
comparable periods. Interest income on Receivables Acquired for Investment and
Investment in Trust Certificates decreased for both periods due to a reduction
in the average principal balances of the Receivables Acquired for Investment and
Investment in Trust Certificates.

     INTEREST EXPENSE.  Interest expense in 2000 increased for both the
three-month and six-month periods to $5,080 and $10,171 as compared to $3,986
and $7,865 in 1999. Interest expense on Receivables Held for Investment
increased 54% and 58% for the three-month and six-month periods. This is due to
an increase of 30% for the three-month and 25% for the six-month periods in the
weighted average borrowings outstanding under the Term Notes and warehouse
credit facilities and increases in the average cost of borrowings of 18% and 26%
over the 1999 periods. Interest expense on Receivables Acquired for Investment
and Investment in Trust Certificates decreased by 79% and 70% for the comparable
three-month and six-month periods. The decrease is attributable to a reduction
in the weighted average borrowings under the acquisition term facility.

     NET INTEREST INCOME.  Net interest income increased to $6,522 and $12,420,
an increase of 7% and 5%. The increase resulted primarily from the growth in
Receivables Held for Investment offset by the reduction in the contributions to
interest income from the Receivables Acquired for Investment and Trust
Certificates and an increase in the average cost of borrowings.

     PROVISION FOR CREDIT LOSSES.  The provision for credit losses for 2000
increased to $2,329 and $4,308 as compared to $1,913 and $3,069 in 1999. The
increase was the result of the growth of the Company's Receivables Held for
Investment portfolio and the related increase in net charge-offs.

     SERVICING INCOME.  Represents servicing income received on loan receivables
previously sold by FISC in connection with two asset securitization
transactions. Under these transactions, FISC, as servicer, is entitled to
receive a fee of 3% on the outstanding balance of the principal balance of
securitized receivables plus reimbursement for certain costs and expenses
incurred as a result of its collection activities. Under the terms of the
securitizations, the servicer may be

                                       17
<PAGE>
removed upon breach of its obligations under the servicing agreements, the
deterioration of the underlying receivables portfolios in violation of certain
performance triggers or the deteriorating financial condition of the servicer.
Servicing income was $143 and $347 for the 2000 periods compared to $346 and
$750 in 1999. Servicing income continues to decrease as the principal balance
outstanding on the securitizations declines. Additionally, one of the
securitizations was liquidated September 15, 2000 and the receivables were
repurchased. Accordingly, no servicing fee income is earned subsequent to the
call date.

     LATE FEES AND OTHER INCOME.  Late fees and other income increased to $819
and $1,459 in 2000 from $765 and $1,272 in 1999 which primarily represents late
fees collected from customers on past due accounts, collections on certain FISC
assets which had previously been charged-off by the Company and interest income
earned on short-term marketable securities and money market instruments.

     SERVICING FEE EXPENSES.  Servicing fees consist primarily of fees paid by
the Company to General Electric Credit Corporation ("GECC") with which the
Company had a servicing relationship on its Receivables Held for Investment.
Effective July 6, 1999, the Company began servicing its portfolio in-house and
terminated the General Electric arrangement. Thus, beginning in July 1999, the
Company incurred no third party servicing expenses.

     SALARIES AND BENEFIT EXPENSES.  Salaries and benefit costs decreased for
the three-month period to $2,322 in 2000 from $2,502 in 1999 and were flat for
the six-month period. The decrease is due to headcount reductions and continued
emphasis on expense control. The decrease in the quarter was offset by higher
salaries and benefits for the first quarter 2000 compared to 1999. Through July
1999, the Company outsourced servicing to GECC, thus salaries and benefits for
the Company were lower for the first fiscal quarter of 1999.

     OTHER INTEREST EXPENSE.  Other interest expense in 2000 increased to $347
and $678 in 2000 as compared to $243 and $470 in 1999. The increase was
primarily due to an increase in the three-month and six-month average borrowings
outstanding under the working capital facility of $9,900,000 and $8,783,333 in
1999 to $13,300,000 for both the three- and six-month periods in 2000 and to
increases of 1.3% and 1.5% in the average interest rate on this facility.

     OTHER EXPENSES.  Other expenses increased for the three-month period to
$1,350 in 2000 from $1,310 in 1999 and decreased for the six-month period to
$2,609 in 2000 from $2,833 in 1999. The variance is principally due to
management's implementation of tighter expense controls and the leveraging of
operating expenses as duplicative costs were eliminated when the GECC servicing
agreement was terminated in July 1999.

     INCOME BEFORE PROVISION FOR INCOME TAXES AND MINORITY INTEREST.  During
2000, income before provision for income taxes and minority interest decreased
to $1,136 and $1,915 or 7% and 18% from the comparable periods in 1999. The
quarter to quarter decrease was a result of a $416 increase in the provision for
credit losses, a $149 reduction in servicing fee income and late fees and a $180
increase in salaries expense. The year to date decline was a result of the
decrease in net interest income after provision for credit losses of $627 offset
by a decrease in operating expenses of $431.

LIQUIDITY AND CAPITAL RESOURCES

     SOURCES AND USES OF CASH FLOWS.  The Company's business requires
significant cash flow to support its operating activities. The principal cash
requirements include (i) amounts necessary to acquire receivables from dealers
and fund required reserve accounts, (ii) amounts necessary to fund premiums for
credit enhancement insurance, and (iii) amounts necessary to fund costs to
retain receivables, primarily interest expense. The Company also requires a
significant amount of cash flow for working capital to fund fixed operating
expenses, primarily salaries and benefits.

                                       18
<PAGE>
     The Company's most significant cash flow requirement is the acquisition of
receivables from dealers. The Company paid $31.2 million and $70.2 million for
receivables acquired for the three months and six months ended October 31, 2000
compared to $34.2 million and $71.4 million paid in the comparable 1999 periods.

     The Company funds the purchase price of the receivables through the use of
a $65 million warehouse credit facility provided to F.I.R.C., Inc. ("FIRC") a
wholly-owned special purpose financing subsidiary of the Company. The current
FIRC credit facility generally permits the Company to draw advances up to the
outstanding principal balance of qualified receivables. Receivables that have
accumulated in the FIRC credit facility may be transferred to a commercial paper
conduit facility at the option of the Company. The commercial paper facility
provides additional liquidity of up to $150 million to fund the Company's
investment in the receivables portfolio. Credit enhancement for the warehouse
lenders is provided by an Auto Loan Protection Insurance ("ALPI") policy issued
by National Union Fire Insurance Company of Pittsburgh and reinsured by the
Company's captive insurance subsidiary.

     The Company utilized a $150 million commercial paper conduit financing
through Enterprise Funding Corporation, a commercial paper conduit administered
by Bank of America as an additional source of warehouse financing for
Receivables Held for Investment. The financing was provided to a
special-purpose, wholly-owned subsidiary of the Company, First Investors Auto
Receivables Corporation ("FIARC"). Credit enhancements for the $150 million
facility are provided to the commercial paper investors by a surety bond issued
by MBIA Insurance Corporation. At April 30, 2000 and October 31, 2000, the
Company had borrowings of $18,004,889 and $78,911,803, respectively, outstanding
under the FIARC commercial paper facility.

     Receivables originally purchased by the Company are financed with
borrowings under the FIRC credit facility. Once a sufficient amount of
receivables have been accumulated, the receivables are transferred from FIRC to
FIARC with advances under the FIARC commercial paper facility used to repay
borrowings under the FIRC credit facility. Once receivables are transferred to
the FIARC subsidiary and pledged as collateral for commercial paper borrowings,
the ALPI policy with respect to the transferred receivables is cancelled with
any unearned premiums returned to FIRC. FIARC may borrow up to 94% of the face
amount of the receivables being transferred. In addition, a cash reserve equal
to 1% of the outstanding borrowings under the FIARC commercial paper facility
must be maintained in a reserve account for the benefit of the creditors and
surety bond provider.

     The current term of the FIRC credit facility expires on November 14, 2001
though the commitment will be reduced from $65 million to $50 million effective
December 31, 2000. In the event that the facility is not renewed prior to its
maturity date, the facility will automatically convert to a term loan which will
amortize in accordance with the borrowing base over a six month period when the
outstanding balance will be due and payable. The FIARC commercial paper facility
was provided for a term of one year and has been extended to November 28, 2001.
If the facility was terminated, receivables pledged as collateral would be
allowed to amortize; however, no new receivables would be allowed to be
transferred from the FIRC credit facility. Borrowings under the FIRC credit
facility were $59,540,000 and $58,590,000 at April 30, 2000 and October 31,
2000, respectively.

     The Company also maintains a $25 million commercial paper conduit financing
through Variable Funding Capital Corporation ("VFCC"), a commercial paper
conduit administered by First Union National Bank. The financing was provided to
a special-purpose, wholly-owned subsidiary of the Company, First Investors Auto
Capital Corporation ("FIACC") to fund the acquisition of additional receivables
generated by the Company once capacity is reached in the FIRC credit facility.

                                       19
<PAGE>
     FIACC acquires receivables from the Company and may borrow up to 88% of the
face amount of receivables which are pledged as collateral for the commercial
paper borrowings. In addition, a cash reserve equal to 2% of the outstanding
borrowings under the FIACC commercial paper facility must be maintained in a
reserve account for the benefit of the creditors.

     The current term of the FIACC commercial paper facility expires on
December 31, 2000. If the facility was terminated, receivables pledged as
collateral would be allowed to amortize; however, no new receivables could be
transferred to the facility. At October 31, 2000, borrowings were $6,017,325
under the FIACC commercial paper facility. There were no outstanding borrowings
at April 30, 2000.

     In addition to the $200 million in currently available debt facilities
utilized to fund the acquisition of new receivables, the Company also maintains
a $13.5 million working capital facility to be used for working capital and
general corporate purposes. The working capital facility expires on
December 22, 2000. If the lenders elect not to renew, any outstandings will be
amortized over a one year period. There was $13,300,000 outstanding under this
facility at April 30, 2000 and October 31, 2000.

     The Company is currently in discussions with its lenders regarding the
renewal and extension of the FIACC commercial paper facility and the working
capital facility. The Company will seek a one-year renewal under the FIACC
commercial paper facility under similar terms and conditions. Under the
contemplated terms of the working capital facility renewal, the revolving
facility would be converted to a term loan facility and the Company would begin
to amortize the outstanding principal balance in accordance with a negotiated
repayment schedule. The facility would be secured by all assets of the Company
other than receivables pledged to secure the warehouse credit facilities or the
Term Notes. Management considers its relationship with the lenders under these
facilities to be satisfactory and has no reason to believe that these facilities
will not be renewed. If these facilities were not renewed however, or if
material changes were made to the terms and conditions, it could have a material
adverse effect on the Company.

     On January 24, 2000, the Company, through its indirect, wholly-owned
subsidiary First Investors Auto Owner Trust 2000-A ("Auto Trust") completed the
issuance of $167,969,000 of 7.174% asset-backed notes ("Notes"). The Notes are
secured by a pool of automobile receivables totaling $174,968,641 which were
previously owned by FIRC, FIARC and FIACC. Proceeds from the issuance, which
totaled $167,967,690 were used to repay all outstanding borrowings under the
FIARC and FIACC commercial paper facilities, to reduce the outstanding
borrowings under the FIRC credit facility, to pay transaction fees related to
the Note issuance and to fund a cash reserve account of 2% or $3,499,373 which
will serve as a portion of the credit enhancement for the transaction. The Notes
bear interest at 7.174% and require monthly principal reductions sufficient to
reduce the balance of the Notes to 96% of the outstanding balance of the
underlying receivables pool. The final maturity of the Notes is February 15,
2006. Credit enhancement for the Note holders is provided by a surety bond
issued by MBIA Insurance Corporation. Additional credit support is provided by a
cash reserve account which is equal to 2% of the original balance of the
receivables pool and a 4% over-collateralization requirement amount. In the
event that certain asset quality covenants are not met, the reserve account
target level will increase to 6% of the then current principal balance of the
receivables pool. As of April 30, 2000 and October 31, 2000, the outstanding
principal balance on the Notes was $151,104,279 and $116,226,377, respectively.

     On October 2, 1998, the Company, through its indirect, wholly-owned
subsidiary, FIFS Acquisition Funding Company LLC ("FIFS Acquisition"), entered
into a $75 million non-recourse bridge financing facility with VFCC, an
affiliate of First Union National Bank, to finance the Company's acquisition of
FISC. Contemporaneously with the Company's purchase of FISC, FISC transferred
certain assets to FIFS Acquisition, consisting primarily of (i) all receivables
owned by FISC as of the acquisition date, (ii) FISC's ownership interest in
certain Trust Certificates and

                                       20
<PAGE>
subordinated spread or cash reserve accounts related to two asset
securitizations previously conducted by FISC, and (iii) certain other financial
assets, including charged-off accounts owned by FISC as of the acquisition date.
These assets, along with a $1 million cash reserve account funded at closing
serve as the collateral for the bridge facility. The facility bears interest at
VFCC's commercial paper rate plus 2.35%. Under the terms of the facility, all
cash collections from the receivables or cash distributions to the certificate
holder under the securitizations are first applied to pay FISC a servicing fee
in the amount of 3% on the outstanding balance of all owned or managed
receivables and then to pay interest on the facility. Excess cash flow available
after servicing fees and interest payments are utilized to reduce the
outstanding principal balance on the indebtedness. In addition, one-third of the
servicing fee paid to FISC is also utilized to reduce principal outstanding on
the indebtedness. The bridge facility expired on August 14, 2000.

     On August 8, 2000, the Company entered into an agreement with First Union
to refinance the acquisition facility. Under the agreement, a partnership was
created in which FIFS Acquisition serves as the general partner and contributed
its assets for a 70% interest in the partnership and First Union Investors,
Inc., an affiliate of First Union, serves as the limited partner with a 30%
interest in the partnership (the "Partnership"). Pursuant to the refinancing,
the Partnership issued Class A Notes in the amount of $19,204,362 and Class B
Notes in the amount of $979,453 to VFCC, the proceeds of which were used to
retire the acquisition debt. The Class A Notes bear interest at VFCC's
commercial paper rate plus 0.95% per annum and amortize on a monthly basis by an
amount necessary to reduce the Class A Note balance as of the payment date to
75% of the outstanding principal balance of Receivables Acquired for Investment,
excluding Receivables Held for Investment that are applicable to FIACC, as of
the previous month end. The Class B Notes bear interest at VFCC's commercial
paper rate plus 5.38% per annum and amortize on a monthly basis by an amount
which varied based on excess cash flows received from Receivables Acquired for
Investment after payment of servicing fees, trustee and back-up servicer fees,
Class A Note interest and Class A Note principal, plus collections received on
the Trust Certificates. The outstanding balance of the Class A Notes was
$15,765,448 as of October 31, 2000. There were no Class B Notes outstanding as
of October 31, 2000. After the Class B Notes were paid in full, all cash flows
received after payment of Class A Note principal and interest, servicing fees
and other costs, are distributed to the Partnership for subsequent distribution
to the partners based upon the respective partnership interests. The amount of
the partners' cash flow will vary depending on the timing and amount of residual
cash flows. The Company is accounting for First Union's limited partnership
interest in the Partnership as a minority interest.

     Substantially all of the Company's receivables are pledged to collateralize
the credit facilities. Management considers its relationship with all of the
Company's lenders and the Noteholders to be satisfactory and has no reason to
believe that the credit facilities will not be renewed.

     The Company's most significant source of cash flow is the principal and
interest payments from the receivables portfolio. The Company received such
payments in the amount of $67.7 million and $54.7 million for the six months
ended October 31, 2000 and 1999, respectively. Such cash flow funds repayment of
amounts borrowed under the FIRC credit and commercial paper facilities and other
holding costs, primarily interest expense and custodial fees. During the six
months ended, the Company required net cash flow of $22.3 million in 2000 and
$31.9 million in 1999 (cash required to acquire Receivables Held for Investment
net of principal payments on receivables) to fund the growth of its receivables
portfolio.

     INTEREST RATE MANAGEMENT.  The Company's secured credit facilities bear
interest at floating interest rates which are reset on a short-term basis while
the secured Term Notes bear interest at a fixed rate of interest. The Company's
receivables bear interest at fixed rates which do not generally vary with the
change in interest rates. Since a primary contributor to the Company's
profitability is its ability to manage its net interest spread, the Company
seeks to maximize the net interest spread while minimizing exposure to changes
in interest rates. In

                                       21
<PAGE>
connection with managing the net interest spread, the Company may periodically
enter into interest rate swaps or caps to minimize the effects of market
interest rate fluctuations on the net interest spread. To the extent that the
Company has outstanding floating rate borrowings or has elected to convert a
portion of its borrowings from fixed rates to floating rates, the Company will
be exposed to fluctuations in short-term interest rates.

     The Company was previously a party to a swap agreement with Bank of America
pursuant to which the Company's interest rate was fixed at 5.565% on a notional
amount of $120 million. The swap agreement expired on January 12, 2000. In
connection with the issuance of the Notes, the Company entered into a swap
agreement with Bank of America pursuant to which the Company pays a floating
rate equal to the prevailing one month LIBOR rate plus 0.505% and receives a
fixed rate of 7.174% from the counterparty. The initial notional amount of the
swap was $167,969,000 which amortizes in accordance with the expected
amortization of the Notes. Final maturity of the swap is August 15, 2002.

     On September 27, 2000, the Company elected to terminate the floating swap
at no material gain or loss and enter into a new swap under which the Company
would pay a fixed rate of 6.30% on a notional amount of $100 million. The
initial expiration of the swap is April 15, 2001 though the counterparty has the
option to extend the swap for an additional three years, expiring April 15, 2004
at a rate of 6.42%.

     In connection with the repurchase of the ALAC 97-1 Securitization and the
financing of that repurchase through the FIACC subsidiary on September 15, 2000,
FIACC entered into an interest rate swap agreement with First Union under which
FIACC pays a fixed rate of 6.76% as compared to the one month commercial paper
index rate. The initial notional amount of the swap is $6,408,150 which
amortizes monthly in accordance with the expected amortization of the FIACC
borrowings. The final maturity of the swap is December 15, 2001.

     On October 2, 1998, in connection with the $75 million acquisition
facility, the Company, through FIFS Acquisition, entered into a series of
hedging instruments with First Union National Bank designed to hedge floating
rate borrowings under the acquisition facility against changes in market rates.
Accordingly, the Company entered into two interest rate swap agreements, the
first in the initial notional amount of $50.1 million ("Class A swap") pursuant
to which the Company's interest rate is fixed at 4.81%; and, the second in the
initial notional amount of $24.9 million ( "Class B swap") pursuant to which the
Company's interest rate is fixed at 5.50%. The notional amount outstanding under
each swap agreement amortizes based on an implied amortization of the hedged
indebtedness. Class A swap has a final maturity of December 20, 2002 while
Class B swap matured on February 20, 2000. The Company also purchased two
interest rate caps which protect the Company and the lender against any material
increases in interest rates which may adversely affect any outstanding
indebtedness which is not fully covered by the aggregate notional amount
outstanding under the swaps. The first cap agreement ("Class A cap") enables the
Company to receive payments from the counterparty in the event that the
one-month commercial paper rate exceeds 4.81% on a notional amount that
increases initially and then amortizes based on the expected difference between
the outstanding notional amount under Class A swap and the underlying
indebtedness. The interest rate cap expires December 20, 2002 and the cost of
the cap is amortized in interest expense for the period. The second cap
agreement ("Class B cap") enables the Company to receive payments from the
counterparty in the event that the one-month commercial paper rate exceeds 6% on
a notional amount that increases initially and then amortizes based on the
expected difference between the outstanding notional amount under Class B swap
and the underlying indebtedness. The interest rate cap expires February 20, 2002
and the cost of the cap is imbedded in the fixed rate applicable to Swap B.
Pursuant to the refinance of the acquisition facility on August 8, 2000, the
Class B cap was terminated and the notional amounts of the Class A swap and
Class A cap were adjusted downward to reflect the lower outstanding balance of
the Class A Notes. The amendment or

                                       22
<PAGE>
cancellation of these instruments resulted in a gain of $418,609. This
derivative net gain is being amortized over the life of the initial derivative
instrument. In addition, the two remaining hedge instruments were assigned by
FIFS Acquisition to the Partnership.

DELINQUENCY AND CREDIT LOSS EXPERIENCE

     The Company's results of operations, financial condition and liquidity may
be adversely affected by nonperforming receivables. The Company seeks to manage
its risk of credit loss through (i) prudent credit evaluations, (ii) risk
management activities, (iii) effective collection procedures, and (iv) by
maximizing recoveries on defaulted loans. An allowance for credit losses of
$2,324,940 as of October 31, 2000 and $2,133,994 as of April 30, 2000 as a
percentage of the Receivables Held for Investment of $252,114,772 as of
October 31, 2000 and $231,696,539 as of April 30, 2000 was .9% at October 31,
2000 and April 30, 2000.

     With respect to Receivables Acquired for Investment, the Company has
established a nonaccretable loss reserve to cover expected losses over the
remaining life of the receivables. As of October 31, 2000 and April 30, 2000,
the nonaccretable loss reserve as a percentage of Receivables Acquired for
Investment was 9.1% and 17.3%. This variance is primarily related to the fact
that the April 30, 2000 contract payments receivable was net of estimated excess
cash flows payable to others. When the Partnership was entered into during the
quarter ended October 31, 2000, the contract payments receivable are inclusive
of the limited partner's estimated portion of the future cash flows. The
nonaccretable portion represents the excess of the loan's scheduled contractual
principal and interest payments over its expected cash flows.

     The Company considers a loan to be delinquent when the borrower fails to
make a scheduled payment of principal and interest. Accrual of interest is
suspended when the payment from the borrower is over 60 days past due.
Generally, repossession procedures are initiated 60 to 90 days after the payment
default.

     The Company retains the credit risk associated with the receivables
acquired. The Company purchases credit enhancement insurance from third party
insurers which covers the risk of loss upon default and certain other risks.
Until March 1994, such insurance absorbed substantially all credit losses. In
April 1994, the Company established a captive insurance subsidiary to reinsure
certain risks under the credit enhancement insurance coverage for all
receivables acquired in March 1994 and thereafter. In addition, receivables
financed under the Auto Trust, FIARC and FIACC commercial paper facilities do
not carry default insurance. Provisions for credit losses of $2,328,800 and
$1,912,398 have been recorded for the three months ended October 31, 2000, and
October 31, 1999, respectively, for losses on receivables which are either
uninsured or which are reinsured by the Company's captive insurance subsidiary.
Provisions for credit losses of $4,308,450 and $3,068,572 have been recorded for
the six months ended October 31, 2000, and October 31, 1999, respectively.

     The allowance for credit losses represents management's estimate of losses
for receivables that may become uncollectable. In making this estimate,
management analyzes portfolio characteristics in the light of its underwriting
criteria, delinquency and repossession statistics, historical loss experience,
and size, quality and concentration of the receivables, as well as external
factors such as future economic outlooks. The allowance for credit losses is
based on estimates and qualitative evaluations and ultimate losses will vary
from current estimates. These estimates are reviewed periodically and as
adjustments, either positive or negative, become necessary, are reported in
earnings in the period they become known.

                                       23
<PAGE>
     The following table summarizes the status and collection experience of
receivables by the Company (dollars in thousands):

<TABLE>
<CAPTION>
                                           AS OF OR FOR THE SIX MONTHS ENDED OCTOBER 31,
                                         -------------------------------------------------
                                                 1999                        2000
                                         ---------------------       ---------------------
                                          NUMBER                      NUMBER
                                         OF LOANS       AMOUNT       OF LOANS       AMOUNT
                                         --------       ------       --------       ------
<S>                                      <C>            <C>          <C>            <C>
Receivables Held for Investment:
Delinquent amount outstanding:
     30 - 59 days....................      368          $4,434         368          $4,519
     60 - 89 days....................      132           1,541         121           1,479
     90 days or more.................      131           1,478         184           2,166
                                           ---          ------         ---          ------
Total delinquencies..................      631          $7,453         673          $8,164
                                           ===          ======         ===          ======
Total delinquencies as a percentage
  of outstanding receivables.........      3.5%           3.5%        3.3%             3.2%
Net charge-offs as a percentage of
  average receivables outstanding
  during the period(1)...............                     2.7%                         3.4%
</TABLE>

------------

(1) The percentages have been annualized and are not necessarily indicative of
    the results for a full year.

     The total number of delinquent accounts (30 days or more) as a percentage
of the number of outstanding receivables for the Company's portfolio of
Receivables Acquired for Investment and Securitized Receivables was 6.9% and
8.7% as of October 31, 2000 and April 30, 2000, respectively.

FORWARD LOOKING INFORMATION

     Statements and financial discussion and analysis included in this report
that are not historical are considered to be forward-looking in nature.
Forward-looking statements involve a number of risks and uncertainties that may
cause actual results to differ materially from anticipated results. Specific
factors that could cause such differences include unexpected fluctuations in
market interest rates; changes in economic conditions; or increases or changes
in the competition for loans. Although the Company believes that the
expectations reflected in the forward-looking statements presented herein are
reasonable, it can give no assurance that such expectations will prove to be
correct.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     The market risk discussion and the estimated amounts generated from the
analysis that follows are foward-looking statements of market risk assuming
certain adverse market conditions occur. Actual results in the future may differ
materially due to changes in the Company's product and debt mix, developments in
the financial markets, and further utilization by the Company of risk-mitigating
strategies such as hedging.

     The Company's operating revenues are derived almost entirely from the
collection of interest on the receivables it retains and its primary expense is
the interest that it pays on borrowings incurred to purchase and retain such
receivables. The Company's credit facilities bear interest at floating rates
which are reset on a short-term basis, whereas its receivables bear interest at
fixed rates which do not generally vary with changes in interest rates. The
Company is therefore exposed primarily to market risks associated with movements
in interest rates on its credit facilities. The Company believes that it takes
the necessary steps to appropriately reduce the potential impact of interest
rate increases on the Company's financial position and operating performance.

     The Company relies almost exclusively on revolving credit facilities to
fund its origination of receivables. Periodically, the Company will transfer
receivables from a revolving to a term credit

                                       24
<PAGE>
facility. Currently, all of the Company's credit facilities in combination with
various swaps bear interest at floating rates tied to either a commercial paper
index or LIBOR.

     As of October 31, 2000, the Company had $37.5 million of floating rate
secured debt outstanding net of swap agreements. For every 1% increase in
commercial paper rates or LIBOR, annual after-tax earnings would decrease by
approximately $238,000, assuming the Company maintains a level amount of
floating rate debt and assuming an immediate increase in rates.

                                       25
<PAGE>
                                    PART II

                               OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)

<TABLE>
      EXHIBIT NO.                                 DESCRIPTION
------------------------  ------------------------------------------------------------
<S>                       <C>
          10.68     --    Administrative Services Agreement dated as of August 8, 2000
                          between Project Brave Limited Partnership and First Union
                          Securities, Inc.

          10.69     --    Project Brave Limited Partnership Agreement of Limited
                          Partnership dated as of July 1, 2000.

          10.70     --    Amended and Restated NIM Collateral Purchase Agreement dated
                          as of August 8, 2000.

          10.71     --    Amended and Restated Contract Purchase Agreement dated as of
                          August 8, 2000.

          10.72     --    First Amendment to Amended and Restated NIM Collateral
                          Purchase Agreement dated as of September 15, 2000.

          10.73     --    First Amendment to Servicing Agreement dated as of
                          September 13, 2000.

          10.74     --    First Amendment to Transfer and Servicing Agreement dated as
                          of September 15, 2000.

          10.75     --    Project Brave Limited Partnership Asset-Backed Notes
                          Indenture dated as of August 8, 2000.

          10.76     --    Note Purchase Agreement between Project Brave Limited
                          Partnership as Issuer, First Union Securities, Inc., as Deal
                          Agent, the Note Investors named herein, First Union National
                          Bank as Liquidity Agent and Variable Funding Capital
                          Corporation, as an Initial Note Investor, dated as of
                          August 8, 2000.

          10.77     --    Supplemental Indenture No. 1 (Project Brave Limited
                          Partnership) dated as of September 15, 2000.

          10.78     --    Third Amendment to Security Agreement dated as of
                          September 13, 2000.

          10.79     --    Transfer and Servicing Agreement among Project Brave Limited
                          Partnership, Issuer, FIFS Acquisition Funding Company,
                          L.L.C., as Transferor, First Investors Servicing Corporation
                          as Servicer and a Transferor Party, ALAC Receivables Corp.,
                          as a Transferor Party, First Union Securities, Inc., as Deal
                          Agent and Collateral Agent and Wells Fargo Bank Minnesota,
                          National Association as Backup Servicer, Collateral
                          Custodian and Indenture Trustee dated as of August 8, 2000.
</TABLE>

                                       26
<PAGE>
                                   SIGNATURES

     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 thereunto duly authorized.

<TABLE>
<S>                                      <C>
                                           First Investors Financial Services Group, Inc.
                                                         (Registrant)

Date:  December 14, 2000                          By: /s/ TOMMY A. MOORE, JR.
                                                      Tommy A. Moore, Jr.
                                             President and Chief Executive Officer

Date:  December 14, 2000                             By: /s/ BENNIE H. DUCK
                                                        Bennie H. Duck
                                         Secretary, Treasurer and Chief Financial Officer
</TABLE>
                                       27