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Exhibit 99.3

First Alliance Mortgage Company                         
                                  Series 1997-4
                             1997 - Annual Statement
                              DISTRIBUTION DOLLARS
                                                               ENDING
PERIOD     CLASS      CUST     INTEREST        PRINCIPAL       BALANCE
 199712     A-1                  N/A              N/A           N/A

                                                               ENDING
PERIOD     CLASS      CUST     INTEREST        PRINCIPAL       BALANCE
  199712     A-2                 N/A              N/A           N/A

                                     ENDING
PERIOD     CLASS      CUST     INTEREST        PRINCIPAL       BALANCE
  199712     A-3                 N/A              N/A           N/A

Total Class R:                    $0.00

Factor Information Per $1,000
             PRINCIPAL       INTEREST     ENDING NOTE    INIT NOTE  CURR NOTE
  CLASS     DISTRIBUTION   DISTRIBUTION     BALANCE           RATE       RATE

   A-1          N/A            N/A            N/A            N/A       N/A

   A-2          N/A            N/A            N/A            N/A       N/A

                                                          Per $1,000
NOTE DISTRIBUTION:                                 0.00      0.00

SCHEDULED PRINCIPAL:                               0.00
PREPAYMENTS:                                       0.00
SUBORDINATION INCREASE:                            0.00

TOTAL PRINCIPAL DISTRIBUTION:                      0.00      0.00

INSURED PAYMENT
   CLASS A-1:                                      0.00
   CLASS A-2:                                      0.00


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CODE INFORMATION:                                 NONE

LOAN PURCHASE PRICES
  GROUP I:                                        0.00
  GROUP II:                                       0.00

SUBSTITUTION AMOUNTS
  GROUP I:                                        0.00
  GROUP II:                                       0.00

SUBORDINATION REDUCTION AMOUNT
  GROUP I:                                        0.00
  GROUP II:                                       0.00

CURRENT REALIZED LOSSES
  GROUP I:                                        0.00
  GROUP II:                                       0.00

CUMULATIVE REALIZED LOSSES
  GROUP I:                                        0.00
  GROUP II:                                       0.00

LOAN BOUGHT PURSUANT TO
SECTION 3.4, 3.6 AND 8.10
  GROUP I:                                        0.00
  GROUP II:                                       0.00

AVAILABLE FUNDS CAP CARRY-FORWARD AMOUNT
  GROUP I:                                        0.00
  GROUP II:                                       0.00

POOL FACTOR
  CLASS A-1:                                       N/A
  CLASS A-2:                                       N/A

DELINQUENT MORTGAGE LOANS(includes loans in foreclosure and bankruptcy):

         GROUP I:
                                  AGGREGATE
            CATEGORY    NUMBER   LOAN BALANCE   PERCENTAGE
           30-59 DAYS      0             0.00      0.00%
           60-89 DAYS      0             0.00      0.00%
            90+ DAYS       0             0.00      0.00%

         GROUP II:
                                   AGGREGATE
            CATEGORY    NUMBER   LOAN BALANCE   PERCENTAGE
            30-59 DAYS     0             0.00      0.00%
            60-89 DAYS     0             0.00      0.00%
             90+ DAYS      0             0.00      0.00%


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LOANS IN FORECLOSURE(included in delinquencies above)

      GROUP I:                    AGGREGATE
                         NUMBER  LOAN BALANCE   PERCENTAGE
                            0            0.00      0.00%

      GROUP II:                   AGGREGATE
                         NUMBER  LOAN BALANCE   PERCENTAGE
                            0            0.00      0.00%


LOANS IN BANKRUPTCY(included in delinquencies above)
      GROUP I:                    AGGREGATE
                         NUMBER  LOAN BALANCE   PERCENTAGE
                            0           $0.00      0.00 %

      GROUP II:                   AGGREGATE
                         NUMBER  LOAN BALANCE   PERCENTAGE
                            0           $0.00      0.00%

REO PROPERTIES(included in delinquencies above)

      GROUP I:                    AGGREGATE
                         NUMBER  LOAN BALANCE   PERCENTAGE
                            0           $0.00      0.00%

      GROUP II:                   AGGREGATE
                         NUMBER  LOAN BALANCE   PERCENTAGE
                            0           $0.00      0.00%

ENDING AGGREGATE LOAN BALANCE
  GROUP I:                                        0.00
  GROUP II:                                       0.00

ENDING INITIAL MORTGAGE LOANS
  GROUP I:                                   N/A
  GROUP II:                                  N/A

ENDING SUBSEQUENT MORTGAGE LOANS
  GROUP I:                                   N/A
  GROUP II:                                  N/A

BOOK VALUE OF REO PROPERTY:
  GROUP I:                                        0.00
  GROUP II:                                       0.00

SERVICING FEE
  GROUP I:                                        0.00
  GROUP II:                                       0.00