<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
June 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 (Commission File (I.R.S. Employer
Jurisdiction of Incorporation) Number) Identification No.)
1100 Larkspur Landing Circle, Suite 101, Larkspur, CA 94939
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(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 June 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: June 16, 1998
HEADLANDS MORTGAGE
SECURITIES INC.
By: /s/ Gilbert J. MacQuarrie
---------------------------------------
Gilbert J. MacQuarrie
Vice President, Treasurer and Secretary
(Principal Financial Officer
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 June 15, 1998......................5
<PAGE>
Exhibit 10.1
===============================================================================
HEADLANDS SERVICING CERTIFICATE
MORTGAGE
===============================================================================
<TABLE>
<S> <C> <C> <C> <C>
Revolving Home LIBOR: 5.6562 Current Collection 5-1-98 thru 5-31-98
Equity Loan 5% Period:
Asset-Backed Margin: 0.2000 S&S Agreement Date: 3/1/98
Certificates 0%
Series 1998-1 Class A Certificate 5.8562 Original Closing Date: 3/25/98
Rate: 5%
Class S Certificate 1.2500 Distribution Date: 6/15/98
Rate: 0%
Interest Period 5/15/98 31 Record Date: 6/14/98
thru 6/14/98:
Weighted Average Loan 10.463 Pool Factor: 99.9540165%
Rate: 60%
Weighted Average Net 9.7861 Investor Floating 97.99963%
Loan Rate: 0% Allocation %:IFAP
Investor Fixed 98.00000%
Allocation %:
Maximum Rate: 9.7861 Beginning 2.00000%
0% 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>
==========================================================================================
BALANCES
<S> <C>
Beginning Pool Balance 186,554,781.45
Beginning Invested Amount 191,584,000.00
Beginning Certificateholders Subordinated Principal Balance 3,910,620.04
Beginning Class A Certificate Balance -- CUSIP 191,584,000.00
Beginning Class S Certificate Balance (Notional Amount) -- CUSIP 191,584,000.00
Overcollateralization Amount 88,097.06
Overcollateralization Loan Amount 0.00
Ending Pool Balance 182,956,499.08
Ending Invested Amount 191,584,000.00
Ending Certificateholders Subordinated Principal Balance 3,998,717.10
Certificateholders Subordinated Balance (TSA) 3,910,620.04
Ending Class A Certificate Balance -- CUSIP 191,495,902.94
Ending Class S Certificate Balance (Notional Amount) -- CUSIP 191,495,902.94
Additional Balances 2,926,469.02
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) 216
Subsequent Mortgage Loan Asset Balance (Current Date) 6,938,239.32
</TABLE>
<PAGE>
<TABLE>
<S> <C>
Cumulative Number of all Subsequent Mortgage Loans 857
Cumulative Subsequent Mortgage Loan Asset Balance 32,149,321.63
Beginning Loan Count 5,047
Ending Loan Count 4,964
COLLECTION AMOUNTS
1 Aggregate of All Mortgage Collections (Gross) 7,895,151.04
2 Total Mortgage Interest Collections (Gross) 1,370,399.65
Servicing Fees (current collection period) 54,411.81
Deferred Interest Transfer (DI) 0.00
3a Mortgage Principal Collections 6,524,751.39
3b Insurance Proceeds 0.00
3c Net Liquidation Proceeds 0.00
3 Total Mortgage Principal Collections 6,524,751.39
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 1,289,663.18
Investor Principal Collections (zero available until end 0.00
of funding period) Transferor Interest Collections 26,324.65
Transferor Principal Collections 0.00
DISTRIBUTION AMOUNTS
Class A Certificate Interest 5.01 (i) 966,135.49
Unpaid Class A Certificate Interest Shortfall (current cycle)
5.01(i) 0.00
Class S Certificate Interest 5.01 (ii) 206,218.89
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) 28,045.77
Credit Enhancer Reimbursement 5.01(vi) 0.00
Accelerated Principal Distribution Amount 5.01(vii) 88,097.06
Spread Account Deposit 5.01(viii) 0.00
Trustee Fee 5.01 (ix) 1,165.97
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 1,289,663.18
Maximum Principal Payment 6,394,256.36
Alternative Principal Payment 3,598,282.37
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>
<PAGE>
<TABLE>
<S> <C>
Transferor Interest Collections 26,324.65
Transferor Interest Collections 5.01 (xii) 0.00
Transferor Principal Collections 0.00
Transferor Distribution Amount 26,324.65
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 5.0428819
Total Class S Certificate Distribution Amount Allocable to
Interest 1.0763889
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 0.4598352
Principal
Scheduled Principal Collections Payment 0.0000000
Accelerated Principal Distribution Amount 0.4598352
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 5.5027171
Total Amount Distributed to Class S Certificateholder 1.0763889
Total Amount Distributed to Certificateholders 6.5791060
Credit Enhancement Draw Amount 0.00
DELINQUENCIES/FORECLOSURES
Number of Mortgages 30 to 59 Days Delinquent 35
Aggregate Principal Balances of Mortgages 30 to 59 Days Delinquent 1,446,964.60
Number of Mortgages 60 to 89 Days Delinquent 5
Aggregate Principal Balances of Mortgages 60 to 89 Days Delinquent 205,542.00
Number of Mortgages 90 to 179 or more Days Delinquent 1
Aggregate Principal Balances of Mortgages 90 to 179 or more Days 36,203.00
Delinquent
Number of Mortgages 180 or more Days Delinquent 0
Aggregate Principal Balances of Mortgages 180 or more Days 0.00
Delinquent
Number of Mortgage Loans in Foreclosure 3
Aggregate Principal Balances of Mortgage Loans in Foreclosure 138,321.62
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
==========================================================================================
</TABLE>
<PAGE>
<TABLE>
<S> <C>
Prior Month Ending Balance after Purchase of Subsequent Loans: 8,939,838.59
Current Funding Accout Deposits: 3,598,282.37
Withdrawal for Subsequent Loan Purchase: 0.00
Funding Account Ending Balance: 12,538,120.96
Funding Account Earnings: 195,222.76
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: 4,487,453.65
Net Excess Spead: 0.184%
Capitalized Interest Account Activity: 174,166.31
Capitalized Interest Account Ending Balance: 934,858.38
</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.
----------------------------------------------
A Servicing Officer Debora M. Toso
<PAGE>
<TABLE>
<CAPTION>
=====================================================================================================================
HEADLANDS MORTGAGE Statement to Noteholders
=====================================================================================================================
<S> <C> <C> <C> <C>
Revolving Home Equity Loan LIBOR: 5.65625% Current Collection Period: 5-1-98 thru 5-31-98
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: 6/15/98
Interest Period 4/15/98 thru 31 Record Date: 6/14/98
5/14/98:
Weighted Average Loan Rate: 10.46360% Investor Floating 97.99963%
Allocation %:
Weighted Average Net Loan 9.78610% Investor Fixed Allocation %: 98.00000%
Rate:
Maximum Rate: 9.78610% Pool Factor: 99.9540165%
=====================================================================================================================
<CAPTION>
BALANCES
<S> <C>
Beginning Pool Balance 186,554,781.45
Beginning Invested Amount 191,584,000.00
Beginning Class A Note Balance -- CUSIP 422093AC8 191,584,000.00
Beginning Class S Note Balance (Notional Amount) -- CUSIP 422093AD6 191,584,000.00
Ending Pool Balance 182,956,499.08
Ending Invested Amount 191,584,000.00
Certificateholders Subordinated Balance (TSA) 3,910,620.04
Ending Class A Note Balance -- CUSIP 422093AC8 191,495,902.94
Ending Class S Note Balance (Notional Amount) -- CUSIP 422093AD6 191,495,902.94
Additional Balances 2,926,469.02
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) 216
Subsequent Mortgage Loan Asset Balance (Current Date) 6,938,239.32
Cumulative Number of all Subsequent Mortgage Loans 857
Cumulative Subsequent Mortgage Loan Asset Balance 32,149,321.63
Beginning Loan Count 5,047
Ending Loan Count 4,964
DISTRIBUTION AMOUNTS
Total Investor Noteholders Distribution Amount
1,260,451.44
Class A Note Interest
966,135.49
Unpaid Class A Note Interest Shortfall (current cycle) 0.00
Investor Loss Amount 0.00
Previous Investor Loss Amount 0.00
</TABLE>
<PAGE>
<TABLE>
<S> <C>
Accelerated Principal Distribution Amount 5.01(vii)(if Invested Amount exceeds Class A) 88,097.06
Scheduled Principal Collection Payment 0.00
Total Class A Note Distribution--CUSIP 1,054,232.55
Class S Note Interest 206,218.89
Unpaid Class S Note Interest Shortfall (current cycle) 0.00
Total Class S Note Distribution--CUSIP 206,218.89
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 5.0428819
Total Class S Note Distribution Amount Allocable to Interest 1.0763889
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 0.4598352
Scheduled Principal Collections Payment 0.0000000
Accelerated Principal Distribution Amount 0.4598352
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 5.5027171
Total Amount Distributed to Class S Noteholder 1.0763889
Total Amount Distributed to Noteholders 6.5791060
Credit Enhancement Draw Amount 0.00
Class A Service Fee 79,826.67
DELINQUENCIES/FORECLOSURES
Number of Mortgages 31 to 60 Days Delinquent 35
Aggregate Principal Balances of Mortgages 31 to 60 Days Delinquent 1,446,964.60
Number of Mortgages 61 to 90 Days Delinquent 5
Aggregate Principal Balances of Mortgages 61 to 90 Days Delinquent 205,542.00
Number of Mortgages 91 to 180 or more Days Delinquent 1
Aggregate Principal Balances of Mortgages 91 to 180 or more Days Delinquent 36,203.00
Number of Mortgages 181 or more Days Delinquent 0
Aggregate Principal Balances of Mortgages 181 or more Days Delinquent 0.00
</TABLE>
<PAGE>
<TABLE>
<S> <C>
Number of Mortgage Loans in Foreclosure 3
Aggregate Principal Balances of Mortgage Loans in Foreclosure 138,321.62
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>
