<PAGE>
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
July 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)
<PAGE>
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 July
15, 1998.
<PAGE>
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: July 17, 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)
<PAGE>
EXHIBIT INDEX
Exhibit Number Page Number
- -------------- -----------
10.1 Monthly Payment Date Statement distributed to
holders of Series 1998-1 Notes dated July 15,
1998................................................................5
<PAGE>
Exhibit 10.1
<TABLE>
<CAPTION>
==================================================================================================
HEADLANDS MORTGAGE SERVICING CERTIFICATE
==================================================================================================
<S> <C> <C> <C> <C>
Revolving Home LIBOR: 5.65625% Current Collection 6-1-98 thru 6-30-98
Equity Loan Period:
Asset-Backed Margin: 0.20000% S&S Agreement Date: 3/1/98
Certificates
Series 1998-1 Class A Certificate 5.85625% Original Closing 3/25/98
Rate: Date:
Class S Certificate 1.25000% Distribution Date: 7/15/98
Rate:
Interest Period 6/15/98 30 Record Date: 7/14/98
thru 7/14/98:
Weighted Average Loan 10.64440% Pool Factor: 99.3159382%
Rate:
Weighted Average Net 9.96690% Investor Floating 97.99963%
Loan Rate: Allocation %:IFAP
Investor Fixed 98.00000%
Allocation %:
Maximum Rate: 9.96690% Beginning 2.00000%
Transferor Interest
Servicing Fee Rate: 0.50000% Spread Account 5,864,838.60
Maximum 3%:
Premium Fee Rate: 0.17000% Required 1,466,209.65
Overcollaterialization
Amt:
Trustee Fee 0.00750% Certificateholders 3,910,620.04
Subordinated Amt
==================================================================================================
<S> <C>
BALANCES
Beginning Pool Balance 189,894,738.40
Beginning Invested Amount 191,584,000.00
Beginning Certificateholders Subordinated Principal Balance 3,998,717.10
Beginning Class A Certificate Balance -- CUSIP 191,495,902.94
Beginning Class S Certificate Balance (Notional Amount) -- CUSIP 191,495,902.94
Overcollateralization Amount 1,310,552.91
Overcollateralization Loan Amount 0.00
Ending Pool Balance 185,389,659.42
Ending Invested Amount 191,584,000.00
Ending Certificateholders Subordinated Principal Balance 5,221,172.95
Certificateholders Subordinated Balance (TSA) 3,910,620.04
Ending Class A Certificate Balance -- CUSIP 190,273,447.09
Ending Class S Certificate Balance (Notional Amount) -- CUSIP 190,273,447.09
Additional Balances 3,928,821.62
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)
</TABLE>
<PAGE>
<TABLE>
<S> <C>
Number of all Subsequent Mortgage Loans (Current Date) 267
Subsequent Mortgage Loan Asset Balance (Current Date) 10,104,936.93
Cumulative Number of all Subsequent Mortgage Loans 1073
Cumulative Subsequent Mortgage Loan Asset Balance 39,087,560.95
Beginning Loan Count 5,181
Ending Loan Count 5,070
COLLECTION AMOUNTS
1 Aggregate of All Mortgage Collections (Gross) 9,992,569.45
2 Total Mortgage Interest Collections (Gross) 1,558,668.85
Servicing Fees (current collection period) 55,385.97
Deferred Interest Transfer (DI) 930,181.54
3a Mortgage Principal Collections 8,433,900.60
3b Insurance Proceeds 0.00
3c Net Liquidation Proceeds 0.00
3 Total Mortgage Principal Collections 8,433,900.60
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 2,384,786.08
Investor Principal Collections (zero available until
end of funding period) 0.00
Transferor Interest Collections 48,678.35
Transferor Principal Collections 0.00
DISTRIBUTION AMOUNTS
Class A Certificate Interest 5.01 (i) 934,539.90
Unpaid Class A Certificate Interest Shortfall (current cycle) 0.00
5.01(i)
Class S Certificate Interest 5.01 (ii) 199,474.90
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) 27,128.59
Credit Enhancer Reimbursement 5.01(vi) 0.00
Accelerated Principal Distribution Amount 5.01(vii) 1,222,455.85
Spread Account Deposit 5.01(viii) 0.00
Trustee Fee 5.01 (ix) 1,186.84
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) 0.00
Total Certificate Distribution Allocable to Interest 2,384,786.08
</TABLE>
<PAGE>
<TABLE>
<S> <C>
Maximum Principal Payment 8,265,222.59
Alternative Principal Payment 4,505,078.98
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
Transferor Interest Collections 48,678.35
Transferor Interest Collections 5.01(xii) 0.00
Transferor Principal Collections 0.00
Transferor Distribution Amount 48,678.35
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 4.8779642
Total Class S Certificate Distribution Amount Allocable to
Interest 1.0411877
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 6.3807826
Scheduled Principal Collections Payment 0.0000000
Accelerated Principal Distribution Amount 6.3807826
Reimbursed Investor Loss Reduction Amounts Included in Current 0.0000000
Distribution
Investor Loss Reduction Amounts after Current Distribution
(carryover) 0.0000000
Total Amount Distributed to Class A Certificateholder 11.2587468
Total Amount Distributed to Class S Certificateholder 1.0411877
Total Amount Distributed to Certificateholders 12.2999345
Credit Enhancement Draw Amount 0.00
DELINQUENCIES/FORECLOSURES
Number of Mortgages 30 to 59 Days Delinquent 60
Aggregate Principal Balances of Mortgages 30 to 59 Days Delinquent 2,144,452.75
Number of Mortgages 60 to 89 Days Delinquent 6
Aggregate Principal Balances of Mortgages 60 to 89 Days Delinquent 240,000.00
Number of Mortgages 90 to 179 or more Days Delinquent 1
Aggregate Principal Balances of Mortgages 90 to 179 or more Days 36,426.00
Delinquent
</TABLE>
<PAGE>
<TABLE>
<S> <C>
Number of Mortgages 180 or more Days Delinquent 1
Aggregate Principal Balances of Mortgages 180 or more Days 42,910.82
Delinquent
Number of Mortgage Loans in Foreclosure 3
Aggregate Principal Balances of Mortgage Loans in Foreclosure 131,573.80
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
==========================================================================================
Prior Month Ending Balance after Purchase of Subsequent Loans: 5,599,881.64
Current Funding Account Deposits: 4,505,078.98
Withdrawal for Subsequent Loan Purchase: (10,104,936.93)
Funding Account Ending Balance: 23.69
Funding Account Earnings: 195,222.76
Beginning Spread Account Principal Balance: (total cash available 488,736.55
to Ambac)
Spread Account Deposit (this distribution): 0.00
Spread Account Withdrawal (this distribution): 0.00
Ending Spread Account Principal Balance: (total cash available to
Ambac) 488,736.55
Total Spread Account: 5,709,909.50
Net Excess Spread: 2.736%
Capitalized Interest Account Activity: 930,181.54
Capitalized Interest Account Ending Balance: 0.00
OFFICER'S CERTIFICATE
All Computations reflected in this Servicer Certificate were made
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
========================================================================================================================
HEADLANDS MORTGAGE Statement to Noteholders
========================================================================================================================
<S> <C> <C> <C> <C>
Revolving Home Equity Loan LIBOR: 5.65625% Current Collection Period: 6-1-98 thru 6-30-98
Asset-Backed Certificates Margin: 0.20000% P&S Agreement Date: 3/1/98
Series 1998-1 Class A Certificate Rate: 5.85625% Original Closing Date: 3/25/98
Class S Certificate Rate: 1.25000% Distribution Date: 7/15/98
Interest Period 6/15/98 thru 30 Record Date: 7/14/98
7/14/98:
Weighted Average Loan Rate: 10.64440% Investor Floating 97.99963%
Allocation %:
Weighted Average Net Loan 9.96690% Investor Fixed Allocation %: 98.00000%
Rate:
Maximum Rate: 9.96690% Pool Factor: 99.3159382%
========================================================================================================================
<S> <C>
BALANCES
Beginning Pool Balance 189,894,738.40
Beginning Invested Amount 191,584,000.00
Beginning Class A Note Balance -- CUSIP 422093AC8 191,495,902.94
Beginning Class S Note Balance (Notional Amount) -- CUSIP 422093AD6 191,495,902.94
Ending Pool Balance 185,389,659.42
Ending Invested Amount 191,584,000.00
Certificateholders Subordinated Balance (TSA) 3,910,620.04
Ending Class A Note Balance -- CUSIP 422093AC8 190,273,447.09
Ending Class S Note Balance (Notional Amount) -- CUSIP 422093AD6 190,273,447.09
Additional Balances 3,928,821.62
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) 267
Subsequent Mortgage Loan Asset Balance (Current Date) 10,104,936.93
Cumulative Number of all Subsequent Mortgage Loans 1073
Cumulative Subsequent Mortgage Loan Asset Balance 39,087,560.95
Beginning Loan Count 5,181
Ending Loan Count 5,070
DISTRIBUTION AMOUNTS
Total Investor Noteholders Distribution Amount
2,356,470.65
Class A Note Interest
934,539.90
Unpaid Class A Note Interest Shortfall (current cycle) 0.00
</TABLE>
<PAGE>
<TABLE>
<S> <C>
Investor Loss Amount 0.00
Previous Investor Loss Amount 0.00
Accelerated Principal Distribution Amount 5.01(vii) (if Invested Amount exceeds Class A) 1,222,455.85
Scheduled Principal Collection Payment 0.00
Total Class A Note Distribution--CUSIP 2,156,995.75
Class S Note Interest 199,474.90
Unpaid Class S Note Interest Shortfall (current cycle) 0.00
Total Class S Note Distribution--CUSIP 199,474.90
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 4.8779642
Total Class S Note Distribution Amount Allocable to Interest 1.0411877
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 6.3807826
Scheduled Principal Collections Payment 0.0000000
Accelerated Principal Distribution Amount 6.3807826
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 11.2587468
Total Amount Distributed to Class S Noteholder 1.0411877
Total Amount Distributed to Noteholders 12.2999345
Credit Enhancement Draw Amount 0.00
Class A Service Fee 79,789.96
DELINQUENCIES/FORECLOSURES
Number of Mortgages 31 to 60 Days Delinquent 60
Aggregate Principal Balances of Mortgages 31 to 60 Days Delinquent 2,144,452.75
Number of Mortgages 61 to 90 Days Delinquent 6
Aggregate Principal Balances of Mortgages 61 to 90 Days Delinquent 240,000.00
Number of Mortgages 91 to 180 or more Days Delinquent 1
</TABLE>
<PAGE>
<TABLE>
<S> <C>
Aggregate Principal Balances of Mortgages 91 to 180 or more Days Delinquent 36,426.00
Number of Mortgages 181 or more Days Delinquent 1
Aggregate Principal Balances of Mortgages 181 or more Days Delinquent 42,910.82
Number of Mortgage Loans in Foreclosure 3
Aggregate Principal Balances of Mortgage Loans in Foreclosure 131,573.80
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 5.65625% 5.85625%
=====================================================================================================================
Spread Account Balance:
488,736.55
Spread Account Transfer to Collection Account: 0.00
</TABLE>
