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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
November 15, 1998
Date of Report (Date of Earliest Event Reported)
Headlands Mortgage Securities Inc.
(as Sponsor of the Headlands Home Equity Loan Trust 1998-1
Revolving Home Equity Loan Asset-Backed Notes, Series 1998-1)
HEADLANDS MORTGAGE SECURITIES INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 333-28031-2 68-0397342
(State or Other Jurisdiction (Commission File (I.R.S. Employer
of Incorporation) Number) Identification No.)
1100 Larkspur Landing Circle, Suite 101, Larkspur, CA 94939
(Address of Principal Executive Offices)
(415) 461-6790
(Registrant's Telephone Number,
Including Area Code)
Not Applicable
(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 1998-1 Revolving Home Equity Loan
Asset-Backed Notes Series, 1998-1 (the "Series 1998-1
Notes").
The following exhibit which relates specifically to the
Series 1998-1 Notes is included with this Current Report:
Item 7(c). Exhibits
10.1 Monthly Payment Date Statement distributed
to holders of Series 1998-1 Notes dated
November 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: November 23, 1998
HEADLANDS MORTGAGE
SECURITIES INC.
By: /s/ Gilbert J. MacQuarrie
-------------------------------------------
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 1998-1 Notes dated November 15, 1998...........................5
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Exhibit 10.1
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<CAPTION>
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HEADLANDS MORTGAGE SERVICING CERTIFICATE
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<S> <C> <C> <C>
Revolving Home LIBOR: 5.4085 Current Collection 10-1-98 thru 10-31-98
Equity Loan 9% Period:
Asset-Backed Margin: 0.2000 S&S Agreement Date: 3/1/98
Certificates 0%
Series 1998-1 Class A Certificate Rate: 5.6085 Original Closing Date 3/25/98
9%
Class S Certificate Rate: 1.2500 Distribution Date: 11/16/98
0%
Interest Period 10/15/98 32 Record Date: 11/15/98
thru 11/15/98:
Weighted Average Loan 11.186 Pool Factor: 98.9703368%
Rate: 80%
Weighted Average Net 10.509 Investor Floating 97.99963%
Loan Rate: 30% Allocation %:IFAP
Investor Fixed 98.00000%
Allocation %:
Maximum Rate: 10.509 Beginning 2.00000%
30% Transferor Interest
Servicing Fee Rate: 0.5000 Spread Account 5,864,838.60
0% Maximum 3%:
Premium Fee Rate: 0.1700 Required 1,466,209.65
0% Overcollaterialization
Amt:
Trustee Fee 0.0075 Certificateholders 3,910,620.04
0% Subordinated Amt
<CAPTION>
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<S> <C>
BALANCES
Beginning Pool Balance 195,493,976.87
Beginning Invested Amount 191,584,000.00
Beginning Certificateholders Subordinated Principal Balance 5,883,290.08
Beginning Class A Certificate Balance -- CUSIP 189,611,329.96
Beginning Class S Certificate Balance (Notional Amount) -- CUSIP 189,611,329.96
Overcollateralization Amount 1,466,209.65
Overcollateralization Loan Amount 0.00
Ending Pool Balance 186,812,632.83
Ending Invested Amount 191,584,000.00
Ending Certificateholders Subordinated Principal Balance 5,883,290.08
Certificateholders Subordinated Balance (TSA) 3,910,620.04
Ending Class A Certificate Balance -- CUSIP 189,611,329.96
Ending Class S Certificate Balance (Notional Amount) -- CUSIP 189,611,329.96
Additional Balances 2,984,509.35
Number of all Retransferred Mortgage Loans (Current Retransfer 0
Date)
Retransferred Mortgage Loan Trust Balances (Current Retransfer 0.00
Date)
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) 185
Subsequent Mortgage Loan Asset Balance (Current Date) 8,681,324.19
Cumulative Number of all Subsequent Mortgage Loans 1793
Cumulative Subsequent Mortgage Loan Asset Balance 65,594,253.26
Beginning Loan Count 5,377
Ending Loan Count 5,174
COLLECTION AMOUNTS
1 Aggregate of All Mortgage Collections (Gross) 13,483,614.55
2 Total Mortgage Interest Collections (Gross) 1,817,761.16
Servicing Fees (current collection period) 81,455.82
Deferred Interest Transfer (DI) 0.00
3a Mortgage Principal Collections 11,665,853.39
</TABLE>
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<TABLE>
<S> <C>
3b Insurance Proceeds 0.00
3c Net Liquidation Proceeds 0.00
3 Total Mortgage Principal Collections 11,665,853.39
Aggregate of Transfer Deposits 0.00
Investor Loss Amount 0.00
Aggregate Investor Loss Reduction Amount 0.00
INVESTOR AND TRANSFEROR COLLECTIONS FOR DISTRIBUTION
Investor Interest Collections (Gross+DI -Service Fee)*IFAP 1,701,572.77
Investor Principal Collections (zero available until end of 0.00
funding period)
Transferor Interest Collections 34,732.57
Transferor Principal Collections 0.00
DISTRIBUTION AMOUNTS
Class A Certificate Interest 5.01 (i) 945,290.85
Unpaid Class A Certificate Interest Shortfall (current cycle) 0.00
5.01(i)
Class S Certificate Interest 5.01 (ii) 210,679.26
Unpaid Class S Certificate Interest Shortfall (current cycle) 0.00
5.01 (ii)
Investor Loss Amount 5.01(iii) 0.00
Previous Investor Loss Amount 5.01(iv) 0.00
Monthly Insurance Premium 5.01(v) 28,652.38
Credit Enhancer Reimbursement 5.01(vi) 0.00
Accelerated Principal Distribution Amount 5.01(vii) 0.00
Spread Account Deposit 5.01(viii) 0.00
Trustee Fee 5.01 (ix) 1,221.84
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) 515,728.44
Total Certificate Distribution Allocable to Interest 1,701,572.76
Maximum Principal Payment 11,432,536.32
Alternative Principal Payment 8,681,344.04
Guaranteed Principal Distribution Amount (afterTSA= zero) 0.00
Scheduled Principal Collection Payment (Lesser of Max Prin and 0.00
Alter Prin)
Accelerated Principal Distribution Amount 5.01(vii)/Investor 0.00
Loss Amount
Total Certificate Distribution Allocable to Principal 0.00
</TABLE>
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<TABLE>
<S> <C>
Transferor Interest Collections 34,732.57
Transferor Interest Collections 5.01 (xii) 515,728.44
Transferor Principal Collections 0.00
Transferor Distribution Amount 550,461.01
LOSSES/RETRANSFERS
Unpaid Class A Certificate Interest Shortfall Due (From Previous 0.00
Distributions)
Unpaid Class S Certificate 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 HOLDERS OF CERTIFICATES (PER CERTIFICATE WITH A
$1,000 DENOMINATION)
Total Class A Certificate Distribution Amount Allocable to Interest 4.9340804
Total Class S Certificate Distribution Amount Allocable to Interest 1.0996704
Unpaid Certificate Interest Shortfall Included in Current Distribution 0.0000000
Unpaid Certificate Interest Shortfall Remaining after Current Distribution 0.0000000
(Carryover)
Total Class A Certificate Distribution Amount Allocable to Principal 0.0000000
Scheduled Principal Collections Payment 0.0000000
Accelerated Principal Distribution Amount 0.0000000
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 Certificateholder 4.9340804
Total Amount Distributed to Class S Certificateholder 1.0996704
Total Amount Distributed to Certificateholders 6.0337508
Credit Enhancement Draw Amount 0.00
DELINQUENCIES/FORECLOSURES
Number of Mortgages 30 to 59 Days Delinquent 46
Aggregate Principal Balances of Mortgages 30 to 59 Days Delinquent 1,700,000.00
Number of Mortgages 60 to 89 Days Delinquent 10
Aggregate Principal Balances of Mortgages 60 to 89 Days Delinquent 488,000.00
Number of Mortgages 90 to 179 or more Days Delinquent 3
Aggregate Principal Balances of Mortgages 90 to 179 or more Days 76,108.09
Delinquent
Number of Mortgages 180 or more Days Delinquent 2
Aggregate Principal Balances of Mortgages 180 or more Days 149,966.21
Delinquent
Number of Mortgage Loans in Foreclosure 7
Aggregate Principal Balances of Mortgage Loans in Foreclosure 290,457.51
Book Value of Real Estate Acquired Through Foreclosure or Grant 0.00
of a Deed
Aggregate Trust Balances of any Liquidated Loans in the Current 0.00
Month
<CAPTION>
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<S> <C>
Prior Month Ending Balance after Purchase of Subsequent Loans: 643.17
Current Funding Account Deposits: 8,681,344.04
Withdrawal for Subsequent Loan Purchase: (8,681,324.19)
Funding Account Ending Balance: 663.02
Funding Account Earnings: 329,910.22
Beginning Spread Account Principal Balance: (total cash available 488,736.55
to Ambac)
Spread Account Deposit (this distribution): 0.00
Spread Account Withdrawl (this distribution): 0.00
Ending Spread Account Principal Balance: (total cash available to
Ambac) 488,736.55
Total Spread Account: 5,865,566.24
Net Excess Spead: 3.317%
Capitalized Interest Account Activity: 0.00
Capitalized Interest Account Ending Balance: 0.00
</TABLE>
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OFFICER'S CERTIFICATE
All Computations reflected in this Servicer Certificate were made in
conformity with the Sale and Servicing Agreement.
The Attached Servicing Certificate is true and correct in all
material respects.
----------------------------------------------
A Servicing Officer Debora M. Toso
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<CAPTION>
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HEADLANDS MORTGAGE Statement to Noteholders
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<S> <C> <C> <C> <C>
Revolving Home Equity Loan LIBOR: 5.40859% Current Collection Period: 10-1-98 thru 10-31-98
Asset-Backed Certificates Margin: 0.20000% P&S Agreement Date: 3/1/98
Series 1998-1 Class A Certificate Rate: 5.60859% Original Closing Date: 3/25/98
Class S Certificate Rate: 1.25000% Distribution Date: 11/16/98
Interest Period 10/15/98 thru 32 Record Date: 11/15/98
11/15/98:
Weighted Average Loan Rate: 11.18680 Investor Floating 97.99963%
% Allocation %:
Weighted Average Net Loan 10.50930% Investor Fixed Allocation %: 98.00000%
Rate:
Maximum Rate: 10.50930% Pool Factor: 98.9703368%
<CAPTION>
=====================================================================================================================
<S> <C>
BALANCES
Beginning Pool Balance 195,493,976.87
Beginning Invested Amount 191,584,000.00
Beginning Class A Note Balance -- CUSIP 422093AC6 189,611,329.96
Beginning Class S Note Balance (Notional Amount) -- CUSIP 422093AD6 189,611,329.96
Ending Pool Balance 186,812,632.83
Ending Invested Amount 191,584,000.00
Certificateholders Subordinated Balance (TSA) 3,910,620.04
Ending Class A Note Balance -- CUSIP 422093AC8 189,611,329.96
Ending Class S Note Balance (Notional Amount) -- CUSIP 422093AD6 189,611,329.96
Additional Balances 2,984,509.35
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) 185
Subsequent Mortgage Loan Asset Balance (Current Date) 8,681,324.19
Cumulative Number of all Subsequent Mortgage Loans 1793
Cumulative Subsequent Mortgage Loan Asset Balance 65,594,253.26
Beginning Loan Count 5,377
Ending Loan Count 5,174
DISTRIBUTION AMOUNTS
Total Investor Noteholders Distribution Amount
1,156,970.11
Class A Note Interest
945,290.85
Unpaid Class A Note Interest Shortfall (current cycle) 0.00
Investor Loss Amount 0.00
Previous Investor Loss Amount 0.00
Accelerated Principal Distribution Amount 5.01(vii) (if Invested Amount exceeds Class A) 0.00
Scheduled Principal Collection Payment 0.00
Total Class A Note Distribution--CUSIP 945,290.85
Class S Note Interest 210,679.26
Unpaid Class S Note Interest Shortfall (current cycle) 0.00
Total Class S Note Distribution--CUSIP 210,679.26
</TABLE>
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<TABLE>
<S> <C>
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 4.9340804
Total Class S Note Distribution Amount Allocable to Interest 1.0996704
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 0.0000000
Scheduled Principal Collections Payment 0.0000000
Accelerated Principal Distribution Amount 0.0000000
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 4.9340804
Total Amount Distributed to Class S Noteholder 1.0996704
Total Amount Distributed to Noteholders 6.0337508
Credit Enhancement Draw Amount 0.00
Class A Service Fee 79,004.72
DELINQUENCIES/FORECLOSURES
Number of Mortgages 31 to 60 Days Delinquent 46
Aggregate Principal Balances of Mortgages 31 to 60 Days Delinquent 1,700,000.00
Number of Mortgages 61 to 90 Days Delinquent 10
Aggregate Principal Balances of Mortgages 61 to 90 Days Delinquent 488,000.00
Number of Mortgages 91 to 180 or more Days Delinquent 3
Aggregate Principal Balances of Mortgages 91 to 180 or more Days Delinquent 76,108.09
Number of Mortgages 181 or more Days Delinquent 2
Aggregate Principal Balances of Mortgages 181 or more Days Delinquent 149,966.21
Number of Mortgage Loans in Foreclosure 7
Aggregate Principal Balances of Mortgage Loans in Foreclosure 290,457.51
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 5.27781% 5.47781%
<CAPTION>
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<S> <C>
Spread Account Balance:
488,736.55
Spread Account Transfer to Collection Account: 0.00
</TABLE>
