CWABS INC
8-K, 1999-02-26
ASSET-BACKED SECURITIES
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                      SECURITIES AND EXCHANGE COMMISSION

                            Washington, D.C. 20549

                                   Form 8-K

                                CURRENT REPORT

                    Pursuant to Section 13 or 15(d) of the
                        Securities Exchange Act of 1934


                    Date of Report (Date of earliest Event
                         Reported): February 26, 1999


     CWABS, INC., (as depositor under the Pooling and Servicing Agreement,
                         dated as of February 1, 1999,
                 providing for the issuance of the CWABS, INC.
                  Asset-Backed Certificates, Series 1999-1).


                                  CWABS, INC.
            (Exact name of registrant as specified in its charter)


          Delaware                   333-60823                  95-4596514
(State or Other Jurisdiction  (Commission File Number)        (I.R.S. Employer
    of Incorporation)                                      Identification No.)




  4500 Park Granada
Calabasas, California                                  91302
- ----------------------                               ----------
(Address of Principal                                (Zip Code)
  Executive Offices)

     Registrant's telephone number, including area code (818) 225-3240


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<PAGE>


Item 5.  Other Events.

Filing of Certain Materials

     In connection with the issuance of CWABS, INC. Asset-Backed Certificates,
Series 1999-1 (the "Certificates"), CWABS, INC. is filing herewith an opinion
of counsel relating to the characterization of the Certificates for federal
income tax purposes. The opinion is annexed hereto as Exhibit 8.1



Item 7.  Financial Statements, Pro Forma Financial
         Information and Exhibits.

(a)      Not applicable.

(b)      Not applicable.

(c)      Exhibits:

         8.1      Opinion of Brown & Wood LLP re Tax Matters.























________  

*    Capitalized terms used and not otherwise defined herein shall have the
     meanings assigned to them in the prospectus dated October 26, 1998 and
     prospectus supplement dated February 18, 1999, of CWABS, Inc., relating
     to its Asset-Backed Certificates, Series 1999-1.


<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 hereunto duly authorized.


                                                   CWABS, INC.



                                                   By: /s/ David Walker 
                                                           David Walker
                                                           Vice President



Dated:   February 26, 1999


<PAGE>


                                 Exhibit Index


Exhibit                                                                Page
8.1               Opinion of Brown & Wood LLP re Tax matters            5



<PAGE>


Exhibit 8.1

                               BROWN & WOOD LLP
                            One World Trade Center
                           New York, New York 10048
                           Telephone: (212) 839-5300
                           Facsimile: (212) 839-5599






                                                             February 26, 1999

Prudential Securities Incorporated
One New York Plaza, 14th Floor
New York, New York  10292

Countrywide Securities Corporation
4500 Park Granada
Calabasas, California  91302

NationsBanc Montgomery Securities LLC
100 North Tryon Street
NC1-007-11-07
Charlotte, North Carolina 28255


                  Re:  CWABS, Inc.
                       Asset-Backed Certificates, Series 1999-1


Ladies and Gentlemen:

     We have acted as special counsel for CWABS, Inc., a Delaware corporation
(the "Company"), in connection with the issuance of the CWABS, Inc.
Asset-Backed Certificates of the above-referenced Series (the "Certificates").
The Class AF-1, Class AF-2, Class AF-3, Class AF-4, Class MF-1, Class MF-2,
Class BF, Class AV-1, Class MV-1, Class MV-2 and Class BV Certificates are
referred to herein as the "Public Certificates".

     The Certificates will represent the entire beneficial ownership interest
in a trust fund (the "Trust Fund") to be created pursuant to a Pooling and
Servicing Agreement dated as of February 1, 1999 (the "Pooling and Servicing
Agreement") among the Company, as depositor, Countrywide Home Loans, Inc.
("CHL"), as seller and master servicer, and The Bank of New York, as trustee
(the "Trustee"). The assets of the Trust Fund will consist primarily of a pool
of conventional sub-prime mortgage loans (the "Mortgage Loans") secured by
first and second liens on one- to four-family residential properties.
Capitalized terms not otherwise defined herein have the meanings ascribed to
such terms in the Pooling and Servicing Agreement.

     In arriving at the opinions expressed below, we have examined such
documents and records as we have deemed appropriate, including the following:

          (1) Signed copy of the Registration Statement on Form S-3 (File No.
     333-60823) filed by the Company with the Securities and Exchange
     Commission (the "Commission") under the Securities Act of 1933, as
     amended (the "1933 Act"), on August 6, 1998, together with each amendment
     thereto (such registration statement, as amended and as declared
     effective by the Commission on October 26, 1998, is referred to herein as
     the "Registration Statement").

          (2) The Prospectus dated October 26, 1998 (the "Basic Prospectus"),
     as supplemented by the Prospectus Supplement relating to the Public
     Certificates, dated February 18, 1999 (the "Prospectus Supplement"), in
     the form to be filed with the Commission pursuant to Rule 424(b) under
     the 1933 Act (the Basic Prospectus, as supplemented by the Prospectus
     Supplement, the "Prospectus").

          (3) The Pooling and Servicing Agreement (together with the
     Prospectus, the "Documents").

          (4) A specimen Certificate of each Class of Certificates.

     In addition, we have made such investigations of such matters of law as
we deemed appropriate as a basis for the opinions expressed below. Further, we
have assumed the genuineness of all signatures and the authenticity of all
documents submitted to us as originals. Our opinions are also based on the
assumption that there are no agreements or understandings with respect to
those transactions contemplated in the Documents other than those contained in
the Documents. Furthermore, our opinions are based on the assumption that all
parties to the Documents will comply with the terms thereof, including all tax
reporting requirements contained therein.

     As to any facts material to the following opinions which we did not
independently establish or verify, we have relied upon statements and
representations of the responsible officers and other representatives of the
Company and of public officials and agencies. We have, for purposes of
rendering the opinions, also relied on certain factual, numerical and
statistical information which is based on the assumptions used in pricing the
Public Certificates.

     As of the Closing Date, the Upper Tier REMIC and REMIC 1, REMIC 2, and
REMIC 3 (each of REMIC 1, REMIC 2 and REMIC 3, a "Lower Tier REMIC") will each
qualify as a REMIC within the meaning of Section 860D of the Internal Revenue
Code of 1986, as amended (the "Code"), assuming (i) an election is made to
treat the assets of the Upper Tier REMIC and the assets of each Lower Tier
REMIC as a REMIC, (ii) compliance with the Pooling and Servicing Agreement,
and (iii) compliance with changes in the law, including any amendments to the
Code or applicable Treasury regulations thereunder. The Public Certificates
and the Class B-IO Certificates represent ownership of regular interests in
the Upper Tier REMIC. The Class R Certificates represent ownership of the sole
class of residual interest in the Upper Tier REMIC and in each Lower Tier
REMIC. The Fixed Rate Carryover Reserve Fund and the Adjustable Rate Carryover
Reserve Fund are outside reserve funds that are not assets of the Upper Tier
REMIC or any of the Lower Tier REMICs. The rights of the Class AV-1, Class
MV-1, Class MV-2 and Class BV Certificates to receive payments from the
Adjustable Rate Carryover Reserve Fund represent, for federal income tax
purposes, interests in an interest rate cap contract. The rights of the Class
AF-1, Class AF-2, Class AF-3, Class AF-4, Class MF-1, Class MF-2 and Class BF
Certificates to receive payments from the Fixed Rate Carryover Reserve Fund
represent, for federal income tax purposes, interests in an interest rate cap
contract.

     The opinions set forth herein are based upon the existing provisions of
the Code and Treasury regulations issued or proposed thereunder, published
Revenue Rulings and releases of the Internal Revenue Service and existing case
law, any of which could be changed at any time. Any such changes may be
retroactive in application and could modify the legal conclusions upon which
such opinions are based. The opinions expressed herein are limited as
described above, and we do not express an opinion on any other tax aspect of
the transactions contemplated by the documents relating to the transaction.

     In rendering the foregoing opinions, we express no opinion as to the laws
of any jurisdiction other than the federal income tax laws of the United
States. This opinion is rendered as of the date hereof and we undertake no
obligation to update this opinion or advise you of any changes in the event
there is any change in legal authorities, facts, assumptions or documents on
which this opinion is based (including the taking of any action by any party
to the Documents pursuant to any opinion of counsel or a waiver), or any
inaccuracy in any of the representations, warranties or assumptions upon which
we have relied in rendering this opinion unless we are specifically engaged to
do so. This opinion is rendered only to those to whom it is addressed and may
not be relied on in connection with any transactions other than the
transactions contemplated herein. This opinion may not be relied upon for any
other purpose, or relied upon by any other person, firm or corporation for any
purpose, without our prior written consent.

                                                     Very truly yours,

                                                     /s/ Brown & Wood LLP       


<PAGE>




                               BROWN & WOOD LLP
                            One World Trade Center
                           New York, New York 10048
                           Telephone: (212) 839-5300
                           Facsimile: (212) 839-5599





                                                             February 26, 1999


BY MODEM

Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C.  20549


         Re:      CWABS, Inc.
                  File No. 333-60823
                  Asset-Backed Certificates, 1999-1




Ladies and Gentlemen:

         On behalf of CWABS,  Inc. (the  "Company"),  we enclose  herewith for
filing,  pursuant to the Securities  and Exchange Act of 1934, as amended,  an
opinion of counsel  relating to the  characterization  of the Certificates for
federal income tax purposes.

                                                     Very truly yours,

                                                     /s/ Erinn Harley-Lewis

                                                     Erinn Harley-Lewis

Enclosure



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