<PAGE>
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
December 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
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(State or Other Jurisdiction (Commission File (I.R.S. Employer
of Incorporation) Number) Identification No.)
700 Larkspur Landing Circle, Suite 240, 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 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
December 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: December 24, 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 December 15, 1998.......................5
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Exhibit 10.1
<TABLE>
<CAPTION>
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HEADLANDS MORTGAGE Statement to Noteholders
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<S> <C> <C>
Revolving Home Equity Loan LIBOR: 5.27781% Current Collection Period: 11-1-98 thru
11-31-98
Asset-Backed Certificates Margin: 0.20000% P&S Agreement Date: 3/1/98
Series 1998-1 Class A Certificate Rate: 5.47781% Original Closing Date: 3/25/98
Class S Certificate Rate: 1.25000% Distribution Date: 12/15/98
Interest Period 11/16/98 thru Record Date: 12/14/98
12/14/98: 29
Weighted Average Loan Rate: 10.95440% Investor Floating
Allocation %: 97.99963%
Weighted Average Net Loan Investor Fixed
Rate: 10.27690% Allocation %: 98.00000%
Maximum Rate: 10.27690% Pool Factor: 98.9703368%
========================================================================================================================
</TABLE>
<TABLE>
<S> <C>
BALANCES
Beginning Pool 195,493,957.02
Balance
Beginning Invested Amount 191,584,000.00
Beginning Class A Note Balance -- CUSIP 422093AC8 189,611,329.96
Beginning Class S Note Balance (Notional Amount) -- CUSIP 422093AD6 189,611,329.96
Ending Pool Balance 188,580,368.37
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 2,501,988.27
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) 162
Subsequent Mortgage Loan Asset Balance (Current Date) 6,913,244.50
Cumulative Number of all Subsequent Mortgage Loans 1978
Cumulative Subsequent Mortgage Loan Asset Balance 74,275,577.45
Beginning Loan Count 5,359
Ending Loan Count 5,177
DISTRIBUTION AMOUNTS
Total Investor Noteholders Distribution Amount
1,027,622.25
Class A Note Interest
836,694.18
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 836,694.18
</TABLE>
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<TABLE>
<S> <C>
Class S Note Interest 190,928.08
Unpaid Class S Note Interest Shortfall (current cycle) 0.00
Total Class S Note Distribution--CUSIP 190,928.08
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 4.3672445
Total Class S Note Distribution Amount Allocable to Interest 0.9965763
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 4.3672445
Total Amount Distributed to Class S Noteholder 0.9965763
Total Amount Distributed to Noteholders 5.3638208
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 1,826,063.80
Number of Mortgages 61 to 90 Days Delinquent 16
Aggregate Principal Balances of Mortgages 61 to 90 Days Delinquent 362,000.48
Number of Mortgages 91 to 180 or more Days Delinquent 3
Aggregate Principal Balances of Mortgages 91 to 180 or more Days Delinquent 159,255.18
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 9
Aggregate Principal Balances of Mortgage Loans in Foreclosure 348,604.98
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%
=======================================================================================================================
Spread Account Balance:
488,736.55
Spread Account Transfer to Collection Account: 0.00
</TABLE>
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<TABLE>
<CAPTION>
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HEADLANDS MORTGAGE SERVICING CERTIFICATE
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<S> <C> <C>
Revolving Home LIBOR: 5.27781% Current Collection Period: 11-1-98 thru 11-31-98
Equity Loan
Asset-Backed Margin: 0.20000% S&S Agreement Date: 3/1/98
Certificates
Series 1998-1 Class A Certificate Rate: 5.47781% Original Closing Date: 3/25/98
Class S Certificate Rate: 1.25000% Distribution Date: 12/15/98
Interest Period 11/16/98 Record Date: 12/14/98
thru 12/14/98: 29
Weighted Average Loan Rate: 10.95440% Pool Factor: 98.9703368%
Weighted Average Net Loan Investor Floating
Rate: 10.27690% Allocation %:IFAP 97.99963%
Investor Fixed Allocation %: 98.00000%
Maximum Rate: 10.27690% Beginning Transferor
Interest 2.00000%
Servicing Fee Rate: 0.50000% Spread Account Maximum 3%: 5,864,838.60
Premium Fee Rate: 0.17000% Required
Overcollaterialization Amt: 1,466,209.65
Trustee Fee 0.00750% Certificateholders
Subordinated Amt 3,910,620.04
================================================================================================================
</TABLE>
<TABLE>
<S> <C>
BALANCES
Beginning Pool Balance 195,493,957.02
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 188,580,368.37
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 2,501,988.27
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) 162
Subsequent Mortgage Loan Asset Balance (Current Date) 6,913,244.50
Cumulative Number of all Subsequent Mortgage Loans 1978
Cumulative Subsequent Mortgage Loan Asset Balance 74,275,577.45
Beginning Loan Count 5,359
Ending Loan Count 5,177
COLLECTION AMOUNTS
1 Aggregate of All Mortgage Collections (Gross) 11,019,485.01
2 Total Mortgage Interest Collections (Gross) 1,603,908.09
Servicing Fees (current collection period) 81,455.82
Deferred Interest Transfer (DI) 0.00
3a Mortgage Principal Collections 9,415,576.92
3b Insurance Proceeds 0.00
3c Net Liquidation Proceeds 0.00
3 Total Mortgage Principal Collections 9,415,576.92
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 1,491,997.56
Investor Principal Collections (zero available until end of funding period) 0.00
Transferor Interest Collections 30,454.71
Transferor Principal Collections 0.00
</TABLE>
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<TABLE>
<S> <C>
DISTRIBUTION AMOUNTS
Class A Certificate Interest 5.01 (i) 836,694.18
Unpaid Class A Certificate Interest Shortfall (current cycle) 5.01(i) 0.00
Class S Certificate Interest 5.01 (ii) 190,928.08
Unpaid Class S Certificate Interest Shortfall (current cycle) 5.01 (ii) 0.00
Investor Loss Amount 5.01(iii) 0.00
Previous Investor Loss Amount 5.01(iv) 0.00
Monthly Insurance Premium 5.01(v) 25,966.22
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) 437,187.25
Total Certificate Distribution Allocable to Interest 1,491,997.56
Maximum Principal Payment 9,227,265.38
Alternative Principal Payment 6,913,588.65
Guaranteed Principal Distribution Amount (afterTSA=zero) 0.00
Scheduled Principal Collection Payment ( Lesser of Max Prin and Alter Prin) 0.00
Accelerated Principal Distribution Amount 5.01(vii) / Investor Loss Amount 0.00
Total Certificate Distribution Allocable to Principal 0.00
Transferor Interest Collections 30,454.71
Transferor Interest Collections 5.01 (xii) 437,187.25
Transferor Principal Collections 0.00
Transferor Distribution Amount 467,641.96
LOSSES/RETRANSFERS
Unpaid Class A Certificate Interest Shortfall Due (From Previous Distributions) 0.00
Unpaid Class S Certificate 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 HOLDERS OF CERTIFICATES
(PER CERTIFICATE WITH A $1,000 DENOMINATION)
Total Class A Certificate Distribution Amount Allocable to Interest 4.3672445
Total Class S Certificate Distribution Amount Allocable to Interest 0.9965763
Unpaid Certificate Interest Shortfall Included in Current Distribution 0.0000000
Unpaid Certificate Interest Shortfall Remaining after
Current Distribution (Carryover) 0.0000000
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 Distribution 0.0000000
Investor Loss Reduction Amounts after Current Distribution (carryover) 0.0000000
Total Amount Distributed to Class A Certificateholder 4.3672445
Total Amount Distributed to Class S Certificateholder 0.9965763
Total Amount Distributed to Certificateholders 5.3638208
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 1,826,063.80
Number of Mortgages 60 to 89 Days Delinquent 16
Aggregate Principal Balances of Mortgages 60 to 89 Days Delinquent 362,000.48
Number of Mortgages 90 to 179 Days Delinquent 3
Aggregate Principal Balances of Mortgages 90 to 179 Days Delinquent 159,255.18
Number of Mortgages 180 or more Days Delinquent 2
Aggregate Principal Balances of Mortgages 180 or more Days Delinquent 149,966.21
Number of Mortgage Loans in Foreclosure 9
Aggregate Principal Balances of Mortgage Loans in Foreclosure 348,604.98
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
</TABLE>
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<TABLE>
<CAPTION>
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<S> <C>
Prior Month Ending Balance after Purchase of Subsequent Loans: 663.02
Current Funding Accout Deposits: 6,913,588.65
Withdrawal for Subsequent Loan Purchase: (6,913,244.50)
Funding Account Ending Balance: 1,007.17
Funding Account Earnings: 331,322.09
Beginning Spread Account Principal Balance: (total cash available to Ambac) 488,736.55
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: 3.172%
Capitalized Interest Account Activity: 0.00
Capitalized Interest Account Ending Balance: 0.00
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.
</TABLE>
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A Servicing Officer Debora M. Toso
