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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
August 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 Number) (I.R.S. Employer
of Incorporation) Identification No.)
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
--------------
(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
August 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: August 18, 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
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10.1 Monthly Payment Date Statement distributed to holders
of Series 1998-1 Notes dated August 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>
Revolving Home LIBOR: 5.65625% Current Collection Period: 7-1-98 thru7-31-98
Equity Loan
Asset-Backed Margin: 0.20000% S&S Agreement Date: 3/1/98
Certificates
Series 1998-1 Class A Certificate Rate: 5.85625% Original Closing Date: 3/25/98
Class S Certificate Rate: 1.25000% Distribution Date: 8/17/98
Interest Period 7/15/98 Record Date: 8/16/98
thru 8/16/98: 33
Weighted Average Loan Rate: 10.81700% Pool Factor: 99.2346910%
Weighted Average Net Loan Investor Floating 97.99963%
Rate: 10.13950% Allocation %:IFAP
Investor Fixed Allocation 98.00000%
%:
Maximum Rate: 10.13950% 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>
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BALANCES
Beginning Pool Balance 195,494,596.35
Beginning Invested Amount 191,584,000.00
Beginning Certificateholders Subordinated Principal Balance 5,221,172.95
Beginning Class A Certificate Balance -- CUSIP 190,273,447.09
Beginning Class S Certificate Balance (Notional Amount) -- CUSIP 190,273,447.09
Overcollateralization Amount 1,466,209.65
Overcollateralization Loan Amount 0.00
Ending Pool Balance 189,715,779.93
Ending Invested Amount 191,584,000.00
Ending Certificateholders Subordinated Principal Balance 5,376,829.69
Certificateholders Subordinated Balance (TSA) 3,910,620.04
Ending Class A Certificate Balance -- CUSIP 190,117,790.35
Ending Class S Certificate Balance (Notional Amount) -- CUSIP 190,117,790.35
Additional Balances 3,736,642.75
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) 215
Subsequent Mortgage Loan Asset Balance (Current Date) 5,763,213.38
Cumulative Number of all Subsequent Mortgage Loans 1340
Cumulative Subsequent Mortgage Loan Asset Balance 49,192,497.88
</TABLE>
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<TABLE>
<S> <C>
Beginning Loan Count 5,336
Ending Loan Count 5,207
COLLECTION AMOUNTS
1 Aggregate of All Mortgage Collections (Gross) 11,233,398.40
2 Total Mortgage Interest Collections (Gross) 1,717,939.23
Servicing Fees (current collection period) 81,456.08
Deferred Interest Transfer (DI) 0.00
3a Mortgage Principal Collections 9,515,459.17
3b Insurance Proceeds 0.00
3c Net Liquidation Proceeds 0.00
3 Total Mortgage Principal Collections 9,515,459.17
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 1,603,747.40
Investor Principal Collections (zero available until end of funding
period) 0.00
Transferor Interest Collections 32,735.75
Transferor Principal Collections 0.00
DISTRIBUTION AMOUNTS
Class A Certificate Interest 5.01 (i) 1,021,431.47
Unpaid Class A Certificate Interest Shortfall (current cycle) 5.01(i) 0.00
Class S Certificate Interest 5.01 (ii) 218,021.66
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) 29,650.95
Credit Enhancer Reimbursement 5.01(vi) 0.00
Accelerated Principal Distribution Amount 5.01(vii) 155,656.74
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) 177,764.74
Total Certificate Distribution Allocable to Interest 1,603,747.39
Maximum Principal Payment 9,325,149.99
Alternative Principal Payment 5,778,816.42
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
</TABLE>
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<TABLE>
<S> <C>
Transferor Interest Collections 32,735.75
Transferor Interest Collections 5.01 (xii) 177,764.74
Transferor Principal Collections 0.00
Transferor Distribution Amount 210,500.49
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 5.3315072
Total Class S Certificate Distribution Amount Allocable to Interest 1.1379951
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 0.8124725
Scheduled Principal Collections Payment 0.0000000
Accelerated Principal Distribution Amount 0.8124725
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 6.1439797
Total Amount Distributed to Class S Certificateholder 1.1379951
Total Amount Distributed to Certificateholders 7.2819748
Credit Enhancement Draw Amount 0.00
DELINQUENCIES/FORECLOSURES
Number of Mortgages 30 to 59 Days Delinquent 64
Aggregate Principal Balances of Mortgages 30 to 59 Days Delinquent 2,091,510.09
Number of Mortgages 60 to 89 Days Delinquent 7
Aggregate Principal Balances of Mortgages 60 to 89 Days Delinquent 181,278.71
Number of Mortgages 90 to 179 or more Days Delinquent 1
Aggregate Principal Balances of Mortgages 90 to 179 or more Days Delinquent 113,539.64
Number of Mortgages 180 or more Days Delinquent 0
Aggregate Principal Balances of Mortgages 180 or more Days Delinquent 0.00
Number of Mortgage Loans in Foreclosure 4
Aggregate Principal Balances of Mortgage Loans in Foreclosure 174,748.28
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>
<S> <C>
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Prior Month Ending Balance after Purchase of Subsequent Loans: 23.69
Current Funding Accout Deposits: 5,778,816.42
Withdrawal for Subsequent Loan Purchase: (5,763,213.38)
Funding Account Ending Balance: 15,626.73
Funding Account Earnings: 315,711.30
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: 1.464%
Capitalized Interest Account Activity: 0.00
Capitalized Interest Account Ending Balance: 0.00
</TABLE>
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.
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A Servicing Officer Debora M. Toso
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HEADLANDS MORTGAGE Statement to Noteholders
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<S> <C> <C>
Revolving Home Equity Loan LIBOR: 5.65625% Current Collection 7-1-98 thru 7-31-98
Period:
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: 8/17/98
Interest Period 7/15/98 thru 33 Record Date: 8/16/98
8/16/98:
Weighted Average Loan Rate: 10.81700% Investor Floating 97.99963%
Allocation %:
Weighted Average Net Loan 10.13950% Investor Fixed 98.00000%
Rate: Allocation %:
Maximum Rate: 10.13950% Pool Factor: 99.2346910%
=====================================================================================================================
</TABLE>
<TABLE>
<S> <C>
BALANCES
Beginning Pool Balance 195,494,596.35
Beginning Invested Amount 191,584,000.00
Beginning Class A Note Balance -- CUSIP 422093AC8 190,273,447.09
Beginning Class S Note Balance (Notional Amount) -- CUSIP 422093AD6 190,273,447.09
Ending Pool Balance 189,715,779.93
Ending Invested Amount 191,584,000.00
Certificateholders Subordinated Balance (TSA) 3,910,620.04
Ending Class A Note Balance -- CUSIP 422093AC8 190,117,790.35
Ending Class S Note Balance (Notional Amount) -- CUSIP 422093AD6 190,117,790.35
Additional Balances 3,736,642.75
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) 215
Subsequent Mortgage Loan Asset Balance (Current Date) 5,763,213.38
Cumulative Number of all Subsequent Mortgage Loans 1340
Cumulative Subsequent Mortgage Loan Asset Balance 49,192,497.88
Beginning Loan Count 5,336
Ending Loan Count 5,207
DISTRIBUTION AMOUNTS
Total Investor Noteholders Distribution Amount 1,395,109.87
Class A Note Interest 1,021,431.47
Unpaid Class A Note Interest Shortfall (current cycle) 0.00
Investor Loss Amount 0.00
Previous Investor Loss Amount 0.00
</TABLE>
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<TABLE>
<S> <C>
Accelerated Principal Distribution Amount 5.01(vii) (if Invested Amount exceeds Class A) 155,656.74
Scheduled Principal Collection Payment 0.00
Total Class A Note Distribution--CUSIP 1,177,088.21
Class S Note Interest 218,021.66
Unpaid Class S Note Interest Shortfall (current cycle) 0.00
Total Class S Note Distribution--CUSIP 218,021.66
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 5.3315072
Total Class S Note Distribution Amount Allocable to Interest 1.1379951
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 0.8124725
Scheduled Principal Collections Payment 0.0000000
Accelerated Principal Distribution Amount 0.8124725
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 6.1439797
Total Amount Distributed to Class S Noteholder 1.1379951
Total Amount Distributed to Noteholders 7.2819748
Credit Enhancement Draw Amount 0.00
Class A Service Fee 79,280.60
DELINQUENCIES/FORECLOSURES
Number of Mortgages 31 to 60 Days Delinquent 64
Aggregate Principal Balances of Mortgages 31 to 60 Days Delinquent 2,097,510.09
Number of Mortgages 61 to 90 Days Delinquent 7
Aggregate Principal Balances of Mortgages 61 to 90 Days Delinquent 181,278.71
Number of Mortgages 91 to 180 or more Days Delinquent 1
Aggregate Principal Balances of Mortgages 91 to 180 or more Days Delinquent 113,539.64
Number of Mortgages 181 or more Days Delinquent 0
Aggregate Principal Balances of Mortgages 181 or more Days Delinquent 0.00
</TABLE>
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<TABLE>
<S> <C>
Number of Mortgage Loans in Foreclosure 4
Aggregate Principal Balances of Mortgage Loans in Foreclosure 174,748.28
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 5.64063% 5.84063%
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Spread Account Balance: 488,736.55
Spread Account Transfer to Collection Account: 0.00
</TABLE>
