SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
February 15, 1998
Date of Report (Date of Earliest Event Reported)
Headlands Mortgage Securities Inc.
(as Sponsor of the Headlands Home Equity Loan Trust
1997-1 Revolving Home Equity Loan Asset-Backed Notes, Series 1997-1)
HEADLANDS MORTGAGE SECURITIES INC.
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(Exact Name of Registrant as Specified in Its Charter)
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Delaware 333-28031-1 68-0397342
(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer Identification No.)
of Incorporation)
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1100 Larkspur Landing Circle, Suite 101, Larkspur, CA 94939
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(Address of Principal Executive Offices)
(415) 461-6790
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(Registrant's Telephone Number, Including Area Code)
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. OTHER EVENTS
Headlands Mortgage Securities Inc. (the "Company") has
previously registered the offer and sale of the Headlands Home
Equity Loan Trust 1997-1 Revolving Home Equity Loan
Asset-Backed Notes Series, 1997-1 (the "Series 1997-1 Notes").
The following exhibit which relates specifically to the Series
1997-1 Notes is included with this Current Report:
Item 7(c). Exhibits
10.1 Monthly Payment Date Statement distributed
to holders of Series 1997-1 Notes dated
February 15, 1998.
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SIGNATURE
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.
Date: February 24, 1998
HEADLANDS MORTGAGE
SECURITIES INC.
By: /s/ Gilbert J. MacQuarrie
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Gilbert J. MacQuarrie
Vice President, Treasurer and Secretary
(Principal Financial Officer and
and Principal Accounting Officer)
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EXHIBIT INDEX
Exhibit Number Page Number
10.1 Monthly Payment Date Statement distributed to holders
of Series 1997-1 Notes dated February 15, 1998..........................5
EXHIBIT 10.1
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HEADLANDS MORTGAGE STATEMENT TO NOTEHOLDERS
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REVOLVING HOME EQUITY LOAN LIBOR: 5.59375% Current Collection Period: 1-1-98 thru 1-31-98
ASSET-BACKED NOTES Margin: 0.18000% P&S Agreement Date: 8/1/97
SERIES 1997-1 Class A Note Rate: 5.77375% Original Closing Date: 8/21/97
Class S Note Rate: 1.25000% Distribution Date: 2/17/98
Interest Period 1/15/98 thru 33 Record Date: 2/16/98
2/16/98:
Weighted Average Loan Rate: 11.46976% Investor Floating
Allocation %: 97.99967%
Weighted Average Net Loan
Rate: 9.51226% Investor Fixed Allocation %: 98.00000%
Maximum Rate: 9.51226% Pool Factor: 98.6226752%
=========================================================================================================================
BALANCES
Beginning Pool Balance 192,922,896.43
Beginning Invested Amount 189,065,000.00
Beginning Class A Note Balance -- CUSIP 422093AC8 186,780,980.11
Beginning Class S Note Balance (Notional Amount) -- CUSIP 422093AD6 186,780,980.11
Ending Pool Balance 188,284,468.18
Ending Invested Amount 189,065,000.00
Certificateholders Subordinated Balance (TSA) 3,859,110.37
Ending Class A Note Balance -- CUSIP 422093AC8 186,460,960.84
Ending Class S Note Balance (Notional Amount) -- CUSIP 422093AD6 186,460,960.84
Additional Balances 2,953,226.75
Number of all Retransferred Mortgage Loans (Current Retransfer Date) 0
Retransferred Mortgage Loan Trust Balances (Current Retransfer Date) 0.00
Cumulative Number of all Retransferred Mortgage Loans (From Previous Distributions) 0
Cumulative Retransferred Mortgage Loan Trust Balances (From Previous Distributions) 0.00
Number of all Subsequent Mortgage Loans (Current Date) 54
Subsequent Mortgage Loan Asset Balance (Current Date) 4,639,250.40
Cumulative Number of all Subsequent Mortgage Loans 336
Cumulative Subsequent Mortgage Loan Asset Balance 15,188,870.04
Beginning Loan Count 5,054
Ending Loan Count 4,934
DISTRIBUTION AMOUNTS
Total Investor Noteholders Distribution Amount 1,522,596.94
Class A Note Interest 988,557.79
Unpaid Class A Note Interest Shortfall (current cycle) 0.00
Investor Loss Amount 0.00
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Previous Investor Loss Amount 0.00
Accelerated Principal Distribution Amount 5.01(vii) (if Invested Amount exceeds Class A) 320,019.27
Scheduled Principal Collection Payment 0.00
Total Class A Note Distribution--CUSIP 1,308,577.06
Class S Note Interest 214,019.87
Unpaid Class S Note Interest Shortfall (current cycle) 0.00
Total Class S Note Distribution--CUSIP 214,019.87
LOSSES/RETRANSFERS
Unpaid Class A Note Interest Shortfall Due (From Previous Distributions) 0.00
Unpaid Class S Note Interest Shortfall Due (From Previous Distributions) 0.00
Interest Earned on Shortfall @ applicable Certificate Rate 0.00
Investor Loss Reduction Amount (From Previous Distributions) 0.00
DISTRIBUTION TO NOTEHOLDERS (PER CERTIFICATE WITH A $1,000 DENOMINATION)
Total Class A Note Distribution Amount Allocable to Interest 5.2286663
Total Class S Note Distribution Amount Allocable to Interest 1.1319910
Unpaid Noteholders Interest Shortfall Included in Current Distribution 0.0000000
Unpaid Noteholders Interest Shortfall Remaining after Current Distribution (Carryover) 0.0000000
Total Class A Note Distribution Amount Allocable to Principal 1.6926415
Scheduled Principal Collections Payment 0.0000000
Accelerated Principal Distribution Amount 1.6926415
Reimbursed Investor Loss Reduction Amounts Included in Current Distribution 0.0000000
Investor Loss Reduction Amounts after Current Distribution (carryover) 0.0000000
Total Amount Distributed to Class A Noteholder 6.9213078
Total Amount Distributed to Class S Noteholder 1.1319910
Total Amount Distributed to Noteholders 8.0532988
Credit Enhancement Draw Amount 0.00
Class A Service Fee 77,825.41
DELINQUENCIES/FORECLOSURES
Number of Mortgages 31 to 60 Days Delinquent 65
Aggregate Principal Balances of Mortgages 31 to 60 Days Delinquent 3,049,176.00
Number of Mortgages 61 to 90 Days Delinquent 10
Aggregate Principal Balances of Mortgages 61 to 90 Days Delinquent 688,045.00
Number of Mortgages 91 to 180 or more Days Delinquent 4
Aggregate Principal Balances of Mortgages 91 to 180 or more Days Delinquent 71,513.86
Number of Mortgages 181 or more Days Delinquent 1
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Aggregate Principal Balances of Mortgages 181 or more Days Delinquent 45,500.00
Number of Mortgage Loans in Foreclosure 2
Aggregate Principal Balances of Mortgage Loans in Foreclosure 121,721.00
Book Value of Real Estate Acquired Through Foreclosure or Grant of a Deed 0.00
Aggregate Trust Balances of any Liquidated Loans in the Current Month 0.00
Class A Rate for next
Distribution LIBOR 5.62500% 5.80500%
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Spread Account Balance: 964,620.55
Spread Account Transfer to Collection Account: 0.00
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HEADLANDS MORTGAGE SERVICING CERTIFICATE
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REVOLVING HOME LIBOR: 5.59375% Current Collection 1-1-98 thru 1-31-98
EQUITY LOAN Period:
ASSET-BACKED NOTES Margin: 0.18000% P&S Agreement Date: 8/1/97
SERIES 1997-1 Class A Note Rate: 5.77375% Original Closing Date: 8/21/97
Class S Note Rate: 1.25000% Distribution Date: 2/17/98
Interest Period 1/15/98 33 Record Date: 2/16/98
thru 2/16/98:
Weighted Average Loan 11.46976% Pool Factor: 98.6226752%
Rate:
Weighted Average Net Loan 9.51226% Investor Floating 97.99967%
Rate: Allocation %:IFAP
Investor Fixed 98.00000%
Allocation %:
Maximum Rate: 9.51226% Beginning Transferor 2.00000%
Interest
Servicing Fee Rate: 0.50000% Spread Account 7,716,964.41
Maximum 4%:
Premium Fee Rate: 0.20000% Required 2,893,861.66
Overcollaterialization
Amt:
Trustee Fee 0.00750% Certificateholders 3,859,110.37
Subordinated Amt
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BALANCES
Beginning Pool Balance 192,922,896.43
Beginning Invested Amount 189,065,000.00
Beginning Certificateholders Subordinated Principal Balance 6,143,130.26
Beginning Class A Note Balance -- CUSIP 422093AC8 186,780,980.11
Beginning Class S (Notional Amount) -- CUSIP 422093AD6 186,780,980.11
Overcollateralization Amount 2,604,039.16
Overcollateralization Loan Amount 0.00
Ending Pool Balance 188,284,468.18
Ending Invested Amount 189,065,000.00
Ending Certificateholders Subordinated Principal Balance 6,463,149.53
Certificateholders Subordinated Balance (TSA) 3,859,110.37
Ending Class A Note Balance -- CUSIP 422093AC8 186,460,960.84
Ending Class S (Notional Amount) -- CUSIP 422093AD6 186,460,960.84
Additional Balances 2,953,226.75
Number of all Retransferred Mortgage Loans (Current Retransfer Date) 0
Retransferred Mortgage Loan Trust Balances (Current Retransfer Date) 0.00
Cumulative Number of all Retransferred Mortgage Loans (From 0
Previous Distributions)
Cumulative Retransferred Mortgage Loan Trust Balances (From 0.00
Previous Distributions)
Number of all Subsequent Mortgage Loans (Current Date) 54
Subsequent Mortgage Loan Asset Balance (Current Date) 4,639,250.40
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Cumulative Number of all Subsequent Mortgage Loans 336
Cumulative Subsequent Mortgage Loan Asset Balance 15,188,870.04
Beginning Loan Count 5,054
Ending Loan Count 4,934
COLLECTION AMOUNTS
1 Aggregate of All Mortgage Collections (Gross) 9,005,034.71
2 Total Mortgage Interest Collections (Gross) 1,413,379.71
Servicing Fees (current collection period) 80,384.54
Deferred Interest Transfer (DI) 256,852.85
3a Mortgage Principal Collections 7,591,655.00
3b Insurance Proceeds 0.00
3c Net Liquidation Proceeds 0.00
3 Total Mortgage Principal Collections 7,591,655.00
Aggregate of Transfer Deposits 0.00
Investor Loss Amount 0.00
Aggregate Investor Loss Reduction Amount 0.00
INVESTOR AND CERTIFICATEHOLDERS COLLECTIONS FOR DISTRIBUTION
Investor Interest Collections (Gross+DI -Service Fee)*IFAP 1,558,045.88
Investor Principal Collections (zero available until end of funding
period) 0.00
Certificateholders Interest Collections 31,802.14
Certificateholders Principal Collections 0.00
DISTRIBUTION AMOUNTS
Class A Note Interest 5.01 (i) 988,557.79
Unpaid Class A Note Interest Shortfall (current cycle) 5.01(i) 0.00
Class S Note Interest 5.01 (ii) 214,019.87
Unpaid Class S Note Interest Shortfall (current cycle) 5.01 (ii) 0.00
Investor Loss Amount 5.01(iii) Distribution to Funding Account 0.00
during Funding Period
Previous Investor Loss Amount 5.01(iv) 0.00
Monthly Insurance Premium 5.01(v) 34,243.18
Credit Enhancer Reimbursement 5.01(vi) 0.00
Accelerated Principal Distribution Amount 5.01(vii) 320,019.27
Spread Account Deposit 5.01(viii) 0.00
Trustee Fee 5.01 (ix) 1,205.77
Payment to Servicer per Section 7.03 5.01 (x) 0.00
Deferred Interest 5.01 (xi) 0.00
Remaining Amount to Transferor 5.01 (xii) 0.00
Total Noteholders Distribution Allocable to Interest 1,558,045.88
Maximum Principal Payment 7,439,821.90
Alternative Principal Payment 4,638,428.25
Guaranteed Principal Distribution Amount (afterTSA= zero) 0.00
Scheduled Principal Collection Payment ( Lesser of Max Prin and 0.00
Alter Prin) After Funding Period
Accelerated Principal Distribution Amount 5.01(vii) 320,019.27
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Total Noteholders Distribution Allocable to Principal 320,019.27
Certificateholders Interest Collections 31,802.14
Certificateholders Interest Collections 5.01 (xii) 0.00
Certificateholders Principal Collections Distribution to Funding 0.00
Account during Funding Period
Certificateholders Distribution Amount 31,802.14
LOSSES/RETRANSFERS
Unpaid Class A Note Interest Shortfall Due (From Previous 0.00
Distributions)
Unpaid Class S Note Interest Shortfall Due (From Previous 0.00
Distributions)
Interest Earned on Shortfall @ applicable Certificate Rate 0.00
Investor Loss Reduction Amount (From Previous Distributions) 0.00
DISTRIBUTION TO NOTEHOLDERS (PER CERTIFICATE WITH A $1,000 DENOMINATION)
Total Class A Note Distribution Amount Allocable to Interest 5,2286663
Total Class S Note Distribution Amount Allocable to Interest 1.1319910
Unpaid Note Interest Shortfall Included in Current Distribution 0.0000000
Unpaid Note Interest Shortfall Remaining after
Current Distribution (Carryover) 0.0000000
Total Class A Noteholders Distribution Amount Allocable to Principal 1.6926415
Scheduled Principal Collections Payment 0.0000000
Accelerated Principal Distribution Amount 1.6926415
Reimbursed Investor Loss Reduction Amounts Included in Current 0.0000000
Distribution
Investor Loss Reduction Amounts after Current Distribution 0.0000000
(carryover)
Total Amount Distributed to Class A Noteholders 6.9213078
Total Amount Distributed to Class S Noteholders 1.1319910
Total Amount Distributed to Noteholders 8.0532988
Credit Enhancement Draw Amount 0.00
DELINQUENCIES/FORECLOSURES
Number of Mortgages 31 to 60 Days Delinquent 65
Aggregate Principal Balances of Mortgages 31 to 60 Days Delinquent 3,049,176.00
Number of Mortgages 61 to 90 Days Delinquent 10
Aggregate Principal Balances of Mortgages 61 to 90 Days Delinquent 688,045.00
Number of Mortgages 91 to 180 or more Days Delinquent 4
Aggregate Principal Balances of Mortgages 91 to 180 or more Days 71,513.86
Delinquent
Number of Mortgages 181 or more Days Delinquent 1
Aggregate Principal Balances of Mortgages 181 or more Days 45,500.00
Delinquent
Number of Mortgage Loans in Foreclosure 2
Aggregate Principal Balances of Mortgage Loans in Foreclosure 121,721.00
Book Value of Real Estate Acquired Through Foreclosure or Grant of 0.00
a Deed
Aggregate Trust Balances of any Liquidated Loans in the Current Month 0.00
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Prior Month Ending Balance after Purchase of Subsequent Loans: 1,213.94
Current Funding Accout Deposits: 4,638,428.25
Withdrawal for Subsequent Loan Purchase: (4,639,250.40)
Funding Account Ending Balance: 391.79
Funding Account Earnings: 6.24
Funding Period: From Closing Date thru the earlier of (a) 9/15/98 or
(b) commencement of Rapid Amortization Period
Beginning Spread Account Principal Balance: (total cash available 964,620.55
to CapMAC)
Spread Account Deposit (this distribution): 0.00
Ending Spread Account Principal Balance: (total cash available to 964,620.55
CapMAC)
Total Spread Account: 7,427,770.08
Net Excess Spead: 3.235%
Deferred Interest Deposits:
Deferred Interest Account Balance: 0.00
OFFICER'S CERTIFICATE
All Computations reflected in this Servicer Certificate were made in
conformity with the Pooling and Servicing Agreement.
The Attached Servicing Certificate is true and correct in all material respects.
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A Servicing Officer Debora M. Toso
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