<TABLE>
<CAPTION>

                          Block Mortgage Finance, Inc.
                            Asset Backed Certificates
                                  Series 1997-2

                         Statement to Certificateholders


<S>           <C>             <C>            <C>             <C>           <C>         <C>          <C>             <C>

------------- --------------- -------------- ----------------------------------------- ------------ --------------- ----------------
                             DISTRIBUTIONS IN DOLLARS
                              PRIOR                                                                                 CURRENT
              ORIGINAL FACE   PRINCIPAL                                                REALIZED     DEFERRED        PRINCIPAL
CLASS         VALUE           BALANCE        INTEREST        PRINCIPAL      TOTAL      LOSSES       INTEREST        BALANCE
------------- --------------- -------------- ----------------------------------------- ------------ --------------- ----------------
------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
A-1           45,336,000.00   45,336,000.00  1,159,543.55 7,180,915.89   8,340,459.44          0.00            0.00    38,155,084.11

------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
A-2           24,279,000.00   24,279,000.00    669,695.75     669,695.75           0.00        0.00            0.00    24,279,000.00
                      0.00
------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
A-3           12,505,000.00   12,505,000.00    356,392.50           0.00     356,392.50        0.00            0.00    12,505,000.00
------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
A-4           16,951,000.00   16,951,000.00    500,760.80           0.00     500,760.80        0.00            0.00    16,951,000.00

------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
A-5            11,007,000.00   11,007,000.00   309,571.90           0.00     309,571.90        0.00            0.00    11,007,000.00

------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
A-6           104,922,000.00  104,922,000.00 2,499,375.98   6,400,181.29   8,899,557.27        0.00            0.00    95,521,818.71

------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
R                       0.00            0.00         0.00           0.00           0.00        0.00            0.00             0.00
------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------
TOTALS        215,000,000.00  215,000,000.00 5,495,340.48  13,581,097.18  19,076,437.66        0.00            0.00   201,418,920.92
------------- --------------- -------------- ------------ -------------- ------------- ------------ --------------- ----------------

</TABLE>



<TABLE>




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

<S>           <C>             <C>            <C>         <C>             <C>           <C>            <C>           <C>
                  FACTOR INFORMATION PER $1000 ORIGINAL FACE
                                                                         ------------- -------------- ------------------------------
                              PRIOR                                                    CURRENT                PASS-THROUGH
                              PRINCIPAL                                                PRINCIPAL                  RATES
CLASS         CUSIP           BALANCE        INTEREST     PRINCIPAL      TOTAL         BALANCE        CURRENT       NEXT
------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------------------------
------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
A-1           09367MAE9       1,000.0000000  5.1153324    31.6786478     36.7939802    841.6067609    6.510000%     6.510000%
------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
A-2           09367MAF6       1,000.0000000  5.5166667      0.0000000      5.5166667   1,000.0000000  6.620000%     6.620000%
------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
A-3           09367MAG4       1,000.0000000  5.7000000      0.0000000      5.7000000   1,000.0000000  6.840000%     6.840000%
------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
A-4           09367MAH2       1,000.0000000  5.9083334      0.0000000      5.9083334   1,000.0000000  7.090000%     7.090000%
------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
A-5           09367MAJ8       1,000.0000000  5.6250005      0.0000000      5.6250005   1,000.0000000  6.750000%      6.750000%
------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
A-6            09367MAK5      1,000.0000000  4.7642553      12.1998843    16.9641396     939.0005786  5.897500%     5.897500%
------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
R             BL9702101           0.0000000  0.0000000       0.0000000      0.0000000      0.0000000  0.0000000%    0.000000%

------------- --------------- -------------- ------------ -------------- ------------- -------------- ------------- ----------------
----------------------------- ------------------------------------------ ---------------------------- ------------------------------
SELLER:                       Block Financial corporation                ADMINISTRATOR:               Vince Valdes

SERVICER:                     Block Financial Corporation                                             Bankers Trust Company

LEAD UNDERWRITER:             Morgan Stanley & Co.                                                    3 Park Plaza
                                                                                                      Irvine, CA 92714
RECORD DATE:                  Calendar Year 1997
                                                                                                      (800) 735-7777
DISTRIBUTION DATE:            Calendar Year 1997                              FACTOR INFORMATION
----------------------------- ------------------------------------------ ---------------------------- ------------------------------


</TABLE>


<PAGE>



                          Block Mortgage Finance, Inc.
                            Asset Backed Certificates
                                  Series 1997-2


                         Statement to Certificateholders


--------------------------------------------------------------------------------
Distribution Date:         Calendar Year 1997
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SERVICER ADVANCES INCLUDED IN THIS DISTRIBUTION:                   2,133,410.93
SERVICER ADVANCES OUTSTANDING:                                             0.00

ACCRUED SERVICING FEE THE CURRENT PERIOD:              439,701.00
PLUS ANY ADDITIONAL SERVICING FEES:                          0.00
                                                       ----------
                                                       439,701.00

LESS PERMITTED REDUCTIONS TO SERVICING FEES:            (8,830.03)
                                                       -----------
TOTAL SERVICING FEES DUE MASTER SERVICER:                            430,870.97

ACCRUED SERVICING FEES COLLECTED FOR CURRENT PERIOD:    335,869.03
COMPENSATING INTEREST:                                    8,830.03
                                                        ----------

TOTAL SERVICING FEES COLLECTED MASTER SERVICER:                      327,039.00
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
GROUP I MONTHLY ADVANCE AMOUNT:                                      826,056.13
GROUP II MONTHLY ADVANCE AMOUNT:                                   1,307,354.80

TOTAL TRUSTEE FEES DUE:                                               13,248.46
TOTAL INSURANCE AMOUNT DUE:                                           30,228.26

PRINCIPAL REMITTANCE AMOUNTS:

         SCHEDULED PRINCIPAL                                       1,316,783.63
         CURTAILMENTS                                               (704,357.27)
         PREPAYMENTS IN FULL                                       9,337,818.18
         NET LIQUIDATION PROCEEDS                                          0.00
         INSURANCE PRINCIPAL PROCEEDS                                      0.00
         RELEASED MORTGAGED PROPERTY PROCEEDS                              0.00
         REPURCHASED PRINCIPAL AMOUNTS                                     0.00
         SUBSTITUTION ADJUSTMENTS                                          0.00

TOTAL PRINCIPAL DISTRIBUTED:                                       9,950,244.54

TOTAL AMOUNT OF LIQUIDATION LOAN LOSSES AS OF THE CURRENT
    DISTRIBUTION DATE:                                                     0.00
AGGREGATE AMOUNT OF LIQUIDATION LOAN LOSSES AS OF THE CURRENT
    DISTRIBUTION DATE:                                                     0.00


BOOK VALUE OF REO PROPERTY:                                                0.00

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



<PAGE>
<TABLE>
<CAPTION>


                          Block Mortgage Finance, Inc.
                            Asset Backed Certificates
                                  Series 1997-2

                         Statement to Certificateholders

<S>                                                                                                                <C>

------------------------------------------------------------------------------------------------------------------------------------
Distribution Date:                  Calendar year 1997
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------

TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN THE POOL AS OF THE PRIOR DISTRIBUTION PERIOD:                                3,369
TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN THE POOL AS OF THE CURRENT DISTRIBUTION PERIOD:                              3,209

AGGREGATE PRINCIPAL BALANCE OF LOANS IN THE POOL AS OF THE  PRIOR DISTRIBUTION PERIOD:                         215,000,031.77
AGGREGATE PRINCIPAL BALANCE OF LOANS IN THE POOL AS OF THE CURRENT DISTRIBUTION PERIOD:                        204,981,925.71

TOTAL NUMBER OF MORTGAGE LOANS INCLUDED IN GROUP I AS OF THE PRIOR DISTRIBUTION PERIOD:                                 2,353
TOTAL NUMBER OF MORTGAGE  LOANS INCLUDED IN GROUP I AS OF THE PRIOR DISTRIBUTION PERIOD:                                2,234

TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP I AS OF THE PRIOR DISTRIBUTION PERIOD:                      110,078,870.91
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP I AS OF THE CURRENT DISTRIBUTION PERIOD:                    104,812,211.41

TOTAL NUMBER OF MORTGAGE  LOANS INCLUDED IN GROUP II AS OF THE PRIOR DISTRIBUTION PERIOD:                               1,016
TOTAL NUMBER OF MORTGAGE  LOANS INCLUDED IN GROUP II AS OF THE CURRENT DISTRIBUTION PERIOD:                               975

TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP II AS OF THE PRIOR DISTRIBUTION PERIOD:                      104,921,160.86
TOTAL PRINCIPAL BALANCE OF LOANS INCLUDED IN GROUP II AS OF THE CURRENT DISTRIBUTION PERIOD:                    100,169,714.29

GROUP I SUBORDINATION INCREASE AMOUNT:                                                                           1,914,256.40
GROUP II SUBORDINATION INCREASE AMOUNT:                                                                          1,716,596.24

GROUP I SUBORDINATION DEFICIT AMOUNT:                                                                                    0.00
GROUP II SUBORDINATION  DEFICIT AMOUNT:                                                                                839.14

GROUP I PRINCIPAL REMITTANCE AMOUNT:                                                                             7,180,915.89
GROUP II PRINCIPAL REMITTANCE AMOUNT:                                                                            6,401,020.43

GROUP I WEIGHTED AVERAGE COUPON AS OF THE CURRENT DISTRIBUTION DATE:                                                    11.3484%
GROUP II WEIGHTED AVERAGE COUPON AS OF THE CURRENT DISTRIBUTION DATE:                                                   10.2886%

GROUP I SUBSTITUTION ADJUSTMENT AMOUNT                                                                                    0.00
GROUP II SUBSTITUTION ADJUSTMENT AMOUNT                                                                                   0.00

GROUP I LOAN PURCHASE AMOUNT                                                                                              0.00
GROUP II LOAN PURCHASE AMOUNT                                                                                             0.00

GROUP I LOAN LARGEST LOAN BALANCE                                                                                   471,408.48
GROUP II LOAN LARGEST LOAN BALANCE                                                                                  498,254.65

TOTAL AMOUNT OF INSURED PAYMENTS INCLUDED IN THE DISTRIBUTION AMOUNT

                  CLASS A-1                                                                                                0.00
                  CLASS A-2                                                                                                0.00
                  CLASS A-3                                                                                                0.00
                  CLASS A-4                                                                                                0.00
                  CLASS A-5                                                                                                0.00
                  CLASS A-6                                                                                                0.00


------------------------------------------------------------------------------------------------------------------------------------
</TABLE>



<PAGE>


                          Block Mortgage Finance, Inc.
                            Asset Backed Certificates
                                  Series 1997-2

                         Statement to Certificateholders


--------------------------------------------------------------------------------
Distribution Date:                  Calendar  Year 1997
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

TOTAL AMOUNT OF CARRY FORWARD AMOUNT INCLUDED IN DISTRIBUTION AMOUNT:
                  CLASS A-1                                           0.00
                  CLASS A-2                                           0.00
                  CLASS A-3                                           0.00
                  CLASS A-4                                           0.00
                  CLASS A-5                                           0.00
                  CLASS A-6                                           0.00



BASIS RISK CARRYOVER AMOUNT INCLUDED IN DISTRIBUTION AMOUNT:          0.00



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