SECURITIES AND EXCHANGE COMMISSION
                                Washington, D.C.

                                    FORM 10-K

  ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) of THE SECURITIES EXCHANGE ACT
                                     OF 1934

                   For the fiscal year ended December 31, 1999

              Commission File Numbers 333-65215-01 and 333-65215-02

      BLOCK MORTGAGE FINANCE ASSET BACKED CERTIFICATES SERIES 1999-1 TRUST

      (under a Pooling and Servicing Agreement dated as of January 1, 1999,
               which Trust is the issuer of Block Mortgage Finance
                    Asset Backed Certificates, Series 1999-1)


            (Exact name of Registrant as specified in its Charter)

         New York                                             33-470815
----------------------------                          --------------------------
 State or other jurisdiction                             (I.R.S. Employer
    of incorporation or                                  Identification No.)
       organization


                         Bank One, National Association
                        1 Bank One Plaza, Suite IL1-0126
                          Chicago, Illinois 60670-0126
            Attention: Corporate Trust Administration, Block Mortgage
                Finance Asset Backed Certificates, Series 1999-1
                    (Address of principal executive offices)

     Registrant's telephone number, including area code:  (312) 407-0192

     Securities registered pursuant to Section 12(b) of the Act: Not applicable.

     Securities registered pursuant to Section 12(g) of the Act Not applicable.

      Indicate by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes X No __

      Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K (section 229.405 of this chapter) is not contained herein,
and will not be contained,  to the best of registrant's knowledge, in definitive
proxy or information  statements  incorporated  by reference in Part III of this
Form 10-K or any amendment to this Form 10-K.
[X]

      Aggregate market value of the voting stock held by  non-affiliates  of the
registrant as of December 31, 1999: Not applicable.

      Number of shares of common stock as of December 31, 1999: Not applicable.

                       DOCUMENTS INCORPORATED BY REFERENCE

                                      None


<PAGE>



                                     PART I

ITEM 1.    BUSINESS.

      The  Registrant  issued  Asset  Backed  Certificates,  Series  1999-1 (the
"Securities")  pursuant to a Pooling and Servicing Agreement dated as of January
1, 1999 (the "Cut-off Date") among Block Mortgage  Finance,  Inc., as Depositor,
Block Financial Corporation, as Master Servicer, Companion Mortgage Corporation,
as  Seller,  and First  National  Bank of  Chicago  (n/k/a  Bank  One,  National
Association), as Trustee. The assets of the Trust consist primarily of a pool of
fixed rate and adjustable  rate mortgage loans (the "Mortgage  Loans") having an
aggregate   principal   balance  as  of  the  Cut-off   Date  of   approximately
$400,000,000.  The Mortgage Loans are secured by one- to four-family residential
properties (each, a "Mortgaged  Property").  Certificateholders  receive monthly
Statements to Certificateholders regarding distributions.

      Further  information  with  respect  to the  performance  of the  Trust is
summarized in the monthly Statements to  Certificateholders,  which are filed on
Form 8-K.

ITEM 2.    PROPERTIES.

      Information regarding the Mortgaged Properties securing the Mortgage Loans
is set  forth  in the  Prospectus  Supplement  and  the  monthly  Statements  to
Certificateholders, which are filed on Form 8-K. The Trust will acquire title to
real estate only upon default of the mortgagors under the Mortgage Loans.

      All real estate  acquired and held by the Trust as of February 29, 2000 is
improved with single family dwellings. The following table describes real estate
acquired and held by the Trust as of February 29, 2000:


FIXED RATE MORTGAGE LOANS
-------------------------------------------------------------------------------
PRINCIPAL BALANCE                                                $2,887,884.77
PERCENTAGE OF POOL BALANCE                                             2.0299%
-------------------------------------------------------------------------------
NUMBER OF LOANS                                                             51
PERCENTAGE OF LOANS IN POOL                                             2.261%
-------------------------------------------------------------------------------

ADJUSTABLE RATE MORTGAGE LOANS
-------------------------------------------------------------------------------
PRINCIPAL BALANCE                                                $2,732,693.74
PERCENTAGE OF POOL BALANCE                                              1.646%
-------------------------------------------------------------------------------
NUMBER OF LOANS                                                             38
PERCENTAGE OF LOANS IN POOL                                            2.8787%
-------------------------------------------------------------------------------


ITEM 3.    LEGAL PROCEEDINGS.

      There are no material  pending legal  proceedings  involving the Trust or,
with  respect  to the Trust or the  Mortgage  Loans,  the  Trustee,  the  Master
Servicer or the Depositor,  other than ordinary routine litigation incidental to
the Trustee's, the Master Servicer's or the Depositor's duties under the Pooling
and Servicing Agreement.

ITEM 4.    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

      No  matters  were  submitted  to a vote of  Certificateholders  during the
fiscal year covered by this report.


<PAGE>

                                     PART II

ITEM 5.    MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
           MATTERS.

      (a)  The Registrant's Asset Backed  Certificates,  Series 1999-1 represent
           non-recourse obligations of the Trust, such Trust having assets which
           consist of the Mortgage Loans.  Strictly speaking,  Registrant has no
           "common  equity,"  but for  purposes of this Item only,  Registrant's
           Asset  Backed  Certificates,  Series  1999-1  are  treated as "common
           equity."

           (i)  Market Information.  There is no established public trading
                market for Registrant's Securities.

           (ii) Certificateholders. The approximate number of registered holders
                of all class of Certificates  as of  February  29, 2000 was less
                than 50.

          (iii) Dividends.  Not applicable.  The information regarding dividends
                required by  sub-paragraph  (c) of Item 201 of Regulation S-K is
                inapplicable because the Trust does not pay dividends.  However,
                information  as  to  distributions  to   Certificateholders   is
                provided in the monthly  Statements  to  Certificateholders  for
                each  month  of the  fiscal  year  in  which a  distribution  to
                Certificateholders was made.

          (iv)  Sales of Unregistered Securities.  One  Class R  Certificate was
                retained  by  the  Trustee.  The  other  Class R Certificate was
                transferred  to  Companion  Mortgage  Corporation as part of the
                consideration for its sale of the Mortgage Loans. At the time of
                such    transfer,  Companion  Mortgage    Corportion   was    an
                institutional accredited investor.

      (b) Not applicable.

ITEM 6.    SELECTED FINANCIAL DATA.

      Not  Applicable.   Because  of  the  limited   activities  of  the  Trust,
information  with respect to the  performance  of the Trust is summarized in the
monthly Statements to Certificateholders,  which are filed on a monthly basis on
Form 8-K. However,  certain selected  aggregate  information with respect to the
Trust for 1999 is filed as an exhibit to this report.

ITEM 7.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
           RESULTS OF OPERATIONS.

      Not Applicable.  The information required by Item 303 of Regulation S-K is
not meaningful in light of the nature of the Trust.  Information  concerning the
Mortgage Loans and distributions to the  Certificateholders  is contained in the
monthly Statements to Certificateholders which are filed on Form 8-K.


<PAGE>


ITEM 7A.   QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.

      Not  applicable.  The Trust does not  engage in the types of  transactions
required to be disclosed under this Item.

ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

      Not Applicable.  Information with respect to the Trust is contained in
the monthly Statements to Certificateholders filed on a monthly basis on
Form 8-K.

ITEM 9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
           FINANCIAL DISCLOSURE.

      None.

                                    PART III

ITEM 10.   DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT.

      Not Applicable.  The Trust does not have officers or directors.

ITEM 11.   EXECUTIVE COMPENSATION.

      Not Applicable.  The Trust does not have officers or directors to whom
compensation needs to be paid.

ITEM 12.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

     (a)  Security ownership of certain beneficial owners. Not Applicable. Under
          the Pooling and Servicing  Agreement  governing the Trust, the holders
          of the  Certificates  generally  do not have the right to vote and are
          prohibited from taking part in management of the Trust.

     (b)  Security ownership of management.  Not Applicable.  The Trust does not
          have any officers or directors.

     (c)  Changes in control. Not Applicable.  Because Certificateholders do not
          possess,  directly  or  indirectly,  the  power to direct or cause the
          direction of the management and policies of the Trust, other than with
          respect to certain required  consents to amendments to the Pooling and
          Servicing  Agreement and the ability to act as a group in the event of
          the occurrence of certain events which if continuing  would constitute
          events of default  under the  Pooling  and  Servicing  Agreement,  the
          information requested with respect to Item 403(c) of Regulation S-K is
          inapplicable.

ITEM 13.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

      Not  Applicable.  The Trust does not have  officers or directors and under
the Pooling and  Servicing  Agreement  governing  the Trust.  In  addition,  the
Registrant does not have knowledge of any  transaction  required to be disclosed
by Items 404(a)(3) or (a)(4) of Regulation S-K.

                                     PART IV

ITEM 14.   EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.

      (a) The following is a list of documents filed as part of this report:


           EXHIBITS

      *4.1 Pooling and Servicing  Agreement  dated as of January 1, 1999 (hereby
           incorporated  herein by reference as Exhibit 4 to Depositor's Current
           Report on Form 8-K dated January 21, 1999).


<PAGE>



     99.1 Master Servicer Annual Officer's Certificate dated March 30, 2000.

     99.2 Report of Independent  Accountants  pertaining to The Provident  Bank,
          dated March 31, 2000.

     99.3 Management's Report of Compliance of The Provident Bank for the year
          ended December 31, 1999.

     99.4 Report of  Independent  Accountants  pertaining  to Fairbanks  Capital
          Corp., dated August 26, 1999.

     99.5 Management's Report of Compliance of Fairbanks Capital for the year
          ended June 30, 1999.

     99.6 Aggregate Information from Statements to  Certificateholders  Relating
          to 1999  Distributions  to Holders  of Block  Mortgage  Finance  Asset
          Backed Certificates, Series 1999-1.

    *99.7 Consolidated  financial  statements of MBIA Insurance  Corporation and
          its  subsidiaries  as of December  31, 1999 and 1998 and for the three
          years ended December 31, 1999 (hereby incorporated herein by reference
          to the  Annual  Report on Form 10-K of MBIA  Inc.  for the year  ended
          December  31,  1999  under   Commission   file  number   001-09583).
    -------------
    * Asterisk indicates exhibits  incorporated by reference  as indicated.

      (b)  Reports on Form 8-K

           Current  Report on Form 8-K dated  October 25, 1999  (filing  monthly
           Statements to  Certificateholders)

           Current  Report on Form 8-K dated November 26, 1999  (filing  monthly
           Statements to Certificateholders)

           Current  Report on Form 8-K dated  December 27, 1999 (filing  monthly
           Statements to Certificateholders)

      (c)  The exhibits required to be filed by Registrant  pursuant to Item 601
           of  Regulation  S-K are listed  above and in the  Exhibit  Index that
           immediately follows the signature page hereof.

      (d)  Not  Applicable.   The  Trust  does  not  have  any  subsidiaries  or
           affiliates. Therefore, no financial statements are filed with respect
           to subsidiaries or affiliates.

                    SUPPLEMENTAL INFORMATION TO BE FURNISHED
                  WITH REPORTS FILED PURSUANT TO SECTION 15(D)
                    BY REGISTRANTS WHICH HAVE NOT REGISTERED
                  SECURITIES PURSUANT TO SECTION 12 OF THE ACT

      No  Annual  report,  proxy  statement,  form of proxy or other  soliciting
material  has  been  sent to  Security  Holders,  and the  Registrant  does  not
contemplate sending any such materials subsequent to the filing of this report.

                                    SIGNATURE

      Pursuant  to the  requirements  of Section  13 or 15(d) of the  Securities
Exchange Act of 1934, Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

           Block  Financial  Corporation,  not in its  individual  capacity  but
           solely  as a duly  authorized  agent of the  Registrant  pursuant  to
           Section  8.17 of the  Pooling  and  Servicing  Agreement  dated as of
           January 1, 1999.


                By: /s/ Bret G. Wilson
                Name:   Bret G. Wilson
                Title:  Vice President, Mortgage Operations

Date: March 31, 2000




<PAGE>



                                  EXHIBIT INDEX

EXHIBIT         DOCUMENT



  *4.1     Pooling and Servicing  Agreement  dated as of January 1, 1999 (hereby
           incorporated  herein by reference as Exhibit 4 to Depositor's Current
           Report on Form 8-K dated January 21, 1999).

  99.1     Master Servicer Annual Officer's Certificate dated March 30, 2000.

  99.2     Report of Independent  Accountants  pertaining to The Provident Bank,
           dated March 31, 2000.

  99.3     Management's Report of Compliance of The Provident Bank for the year
           ended December 31, 1999.

  99.4     Report of  Independent  Accountants  pertaining to Fairbanks  Capital
           Corp., dated August 26, 1999.

  99.5     Management's Report of Compliance of Fairbanks Capital Corp. for the
           year ended June 30, 1999.

  99.6     Aggregate    Information   from   Statements  to  Certificate-holders
           Relating to 1999  Distributions  to Holders of Block Mortgage Finance
           Asset Backed Certificates, Series 1999-1.

 *99.7     Consolidated  financial statements of MBIA Insurance  Corporation and
           its  subsidiaries  as of December 31, 1999 and 1998 and for the three
           years  ended  December  31,  1999  (hereby   incorporated  herein  by
           reference to the Annual Report on Form 10-K of MBIA Inc. for the year
           ended December 31, 1999 under Commission file number 001-09583).
----------------
* Asterisk indicates exhibits incorporated by reference as indicated.