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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
January 25, 1999
Date of Report (Date of Earliest Event Reported)
Headlands Mortgage Securities Inc. (as Sponsor under a Pooling and Servicing
Agreement dated as of October 1, 1998 among the Sponsor, PNC Mortgage
Securities Corp., as Seller and Master Servicer, and State Street Bank and Trust
Company, as Trustee, providing for the issuance of the Mortgage Pass-Through
Certificates, Series 1998-1)
HEADLANDS MORTGAGE SECURITIES INC.
----------------------------------
(Exact Name of Registrant as Specified in Its Charter)
<TABLE>
<S> <C> <C>
Delaware 333-46019-1 68-0397342
-------- ----------- ---------
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)
</TABLE>
700 Larkspur Landing Circle, Suite 240, 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)
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INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events
------------
Filing of Certain Materials
---------------------------
Headlands Mortgage Securities Inc. (the "Company") has previously
registered the offer and sale of its Mortgage Loan Pass-Through
Certificates, Series 1998-1 (the "Certificates").
The following exhibit which relates specifically to the Certificates
is included with this Current Report:
Item 7(c). Exhibits
--------
10.1 Monthly Payment Date Statement distributed to
Certificateholders, dated January 25, 1999.
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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: February 24, 1999
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
Certificateholders, dated January 25, 1999....................... 5
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EXHIBIT 10.1
PNC Mortgage Securities Corporation
Consolidated Distribution Report to
Certificate Holders
Reporting Period: December 1998 Distribution Date: January 25, 1999
SERIES: 98-1 HMSI (1477)
Certificate Trust
<TABLE>
<CAPTION>
Class Group I A-1 A-2
<S> <C> <C> <C>
Weighted Average Pass Through Rate 7.0467% 6.500% 6.500%
Original Principal Balance $293,485,009.00 $245,840,000.00 $8,156,307.00
Beginning Principal Balance $289,235,582.90 $241,529,230.36 $8,244,816.51
Loans Transferred In $ 0.00 $ 0.00 $ 0.00
Loans Transferred Out $ 0.00 $ 0.00 $ 0.00
Principal Losses $ 0.00 $ 0.00 $ 0.00
Other Principal Adjustments $ 0.00 $ 0.00 $ 0.00
Principal Distributed $ 4,573,757.79 $ 4,604,716.47 ($44,659.42)
Principal Allocation Factor 0.01558430 0.01873054 -0.00547545
Scheduled Interest $ 1,698,360.52 $ 1,308,283.33 $ 44,659.42
Scheduled Interest Allocation Factor 0.00578687 0.00532169 0.00547545
Interest Adjustment ($0.16) ($0.12) $ 0.00
Interest Adjustment Allocation Factor 0.00000000 0.00000000 0.00000000
Net Interest Distributed $ 1,698,360.36 $ 1,308,283.21 $ 44,659.42
Distributed Allocation Factor 0.00578687 0.00532169 0.00547545
Other Distribution $ 0.00 $ 0.00 $ 0.00
Other Distribution Allocation Factor 0.00000000 0.00000000 0.00000000
Ending Total Distribution $ 6,272,118.15 $ 5,912,999.68 $ 0.00
Ending Principal Balance $284,661,825.11 $236,924,513.89 $8,289,475.93
Principal Balance Trading Factor 0.96993651 0.96373460 1.01632711
</TABLE>
<TABLE>
<CAPTION>
Class A-3 X-1 X-2
<S> <C> <C> <C>
Weighted Average Pass Through Rate 6.500% 6.500% 6.500%
Original Principal Balance $20,379,800.00 $ 0.00 $ 0.00
Beginning Principal Balance $20,379,800.00 $ 0.00 $ 0.00
Loans Transferred In $ 0.00 $ 0.00 $ 0.00
Loans Transferred Out $ 0.00 $ 0.00 $ 0.00
Principal Losses $ 0.00 $ 0.00 $ 0.00
Other Principal Adjustments $ 0.00 $ 0.00 $ 0.00
Principal Distributed $ 0.00 $ 0.00 $ 0.00
Principal Allocation Factor 0.00000000 0.00000000 0.00000000
Scheduled Interest $ 110,390.58 $ 68,567.44 $ 63,274.85
Scheduled Interest Allocation Factor 0.00541667 0.00000000 0.00000000
Interest Adjustment $ (0.01) $ (0.01) $ (0.01)
Interest Adjustment Allocation Factor 0.00000000 0.00000000 0.00000000
Net Interest Distributed $ 110,390.57 $ 68,567.43 $ 63,274.84
Distributed Allocation Factor 0.00541667 0.00000000 0.00000000
Other Distribution $ 0.00 $ 0.00 $ 0.00
Other Distribution Allocation Factor 0.00000000 0.00000000 0.00000000
Ending Total Distribution $ 110,390.57 $ 68,567.43 $ 63,274.84
Ending Principal Balance $20,379,800.00 $ 0.00 $ 0.00
Principal Balance Trading Factor 1.00000000 0.00000000 0.00000000
</TABLE>
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PNC Mortgage Securities Corporation
Consolidated Distribution Report to
Certificate Holders
Reporting Period: December 1998 Distribution Date: January 25, 1999
SERIES: 98-1 HMSI (1477)
Certificate Trust
<TABLE>
<CAPTION>
Class PO I-B-1 I-B-2
<S> <C> <C> <C>
Weighted Average Pass Through Rate 0.000% 6.500% 6.500%
Original Principal Balance $ 32,276.00 $8,364,323.00 $4,549,017.00
Beginning Principal Balance $ 32,217.72 $8,352,481.17 $4,542,576.71
Loans Transferred In $ 0.00 $ 0.00 $ 0.00
Loans Transferred Out $ 0.00 $ 0.00 $ 0.00
Principal Losses $ 0.00 $ 0.00 $ 0.00
Other Principal Adjustments $ 0.00 $ 0.00 $ 0.00
Principal Distributed $ 31.28 $ 5,993.53 $ 3,259.64
Principal Allocation Factor 0.00096914 0.00071656 0.00071656
Scheduled Interest $ 0.00 $ 45,242.61 $ 24,605.62
Scheduled Interest Allocation Factor 0.00000000 0.00540900 0.00540900
Interest Adjustment $ 0.00 $ 0.00 $ 0.00
Interest Adjustment Allocation Factor 0.00000000 0.00000000 0.00000000
Net Interest Distributed $ 0.00 $ 45,242.61 $ 24,605.62
Distributed Allocation Factor 0.00000000 0.00540900 0.00540900
Other Distribution $ 0.00 $ 0.00 $ 0.00
Other Distribution Allocation Factor 0.00000000 0.00000000 0.00000000
Ending Total Distribution $ 31.28 $ 51,236.14 $ 27,865.26
Ending Principal Balance $ 32,186.44 $8,346,487.64 $4,539,317.07
Principal Balance Trading Factor 0.99722518 0.99786769 0.99786769
</TABLE>
<TABLE>
<CAPTION>
Class I-B-3 I-B-4 I-B-5
<S> <C> <C> <C>
Weighted Average Pass Through Rate 6.500% 6.500% 6.500%
Original Principal Balance $2,201,138.00 $1,614,168.00 $880,455.00
Beginning Principal Balance $2,198,021.73 $1,611,882.74 $879,208.49
Loans Transferred In $ 0.00 $ 0.00 $ 0.00
Loans Transferred Out $ 0.00 $ 0.00 $ 0.00
Principal Losses $ 0.00 $ 0.00 $ 0.00
Other Principal Adjustments $ 0.00 $ 0.00 $ 0.00
Principal Distributed $ 1,577.25 $ 1,156.65 $ 630.90
Principal Allocation Factor 0.00071656 0.00071656 0.00071656
Scheduled Interest $ 11,905.95 $ 8,731.03 $ 4,762.38
Scheduled Interest Allocation Factor 0.00540900 0.00540900 0.00540900
Interest Adjustment $ 0.00 $ 0.00 $ 0.00
Interest Adjustment Allocation Factor 0.00000000 0.00000000 0.00000000
Net Interest Distributed $ 11,905.95 $ 8,731.03 $ 4,762.38
Distributed Allocation Factor 0.00540900 0.00540900 0.00540900
Other Distribution $ 0.00 $ 0.00 $ 0.00
Other Distribution Allocation Factor 0.00000000 0.00000000 0.00000000
Ending Total Distribution $ 13,483.20 $ 9,887.68 $ 5,393.28
Ending Principal Balance $2,196,444.48 $1,610,726.09 $878,577.59
Principal Balance Trading Factor 0.99786769 0.99786769 0.99786768
</TABLE>
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PNC Mortgage Securities Corporation
Consolidated Distribution Report to
Certificate Holders
Reporting Period: December 1998 Distribution Date: January 25, 1999
SERIES: 98-1 HMSI (1477)
Certificate Trust
<TABLE>
<CAPTION>
Class I-B-6 R-1
<S> <C> <C>
Weighted Average Pass Through Rate 6.500% 6.500%
Original Principal Balance $1,467,425.00 $ 100.00
Beginning Principal Balance $1,465,347.48 $ 0.00
Loans Transferred In $ 0.00 $ 0.00
Loans Transferred Out $ 0.00 $ 0.00
Principal Losses $ 0.00 $ 0.00
Other Principal Adjustments $ 0.00 $ 0.00
Principal Distributed $ 1,051.50 $ 0.00
Principal Allocation Factor 0.00071656 0.00000000
Scheduled Interest $ 7,937.30 $ 0.01
Scheduled Interest Allocation Factor 0.00540900 0.00000000
Interest Adjustment $ 0.00 $ 0.00
Interest Adjustment Allocation Factor 0.00000000 0.00000000
Net Interest Distributed $ 7,937.30 $ 0.01
Distributed Allocation Factor 0.00540900 0.00000000
Other Distribution $ 0.00 $ 0.00
Other Distribution Allocation Factor 0.00000000 0.00000000
Ending Total Distribution $ 8,988.80 $ 0.01
Ending Principal Balance $1,464,295.98 $ 0.00
Principal Balance Trading Factor 0.99786768 0.00000000
</TABLE>
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<TABLE>
PNC MORTGAGE SECURITIES CORP.
MASTER SERVICING
PROCESSING MONTH: 12/1998 MORTGAGE PASS-THROUGH CERTIFICATES
01/1999 DISTRIBUTION REPORT
SERIES: 98-1 HMSI (1477)
WEIGHTED AVERAGE PC RATE: 7.0422
<CAPTION>
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AGGREGATE LOSS AMOUNTS FROM INCEPTION OF SUMMARY OF DISTRIBUTIONS FOR CURRENT CYCLE
POOL
- ------------------------------------------- ----------------------------------------------------------------------------------------
LOAN COUNT OF AGGREGATE LOSS PRINCIPAL SCHEDULED INTEREST NET INTEREST OTHER TOTAL
INCURRED LOSSES AMOUNT DISTRIBUTION INTEREST DUE ADJUSTMENT DISTRIBUTION DISTRIBUTION
- --------------- -------------- -------------- -------------- ------------ --------------- ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
0 $0.00 $4,573,757.79 $1,698,360.52 ($0.16) $1,698,360.36 $0.00 $6,272,118.15
- --------------- -------------- -------------- -------------- ------------ --------------- ------- ------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Aggregate Loss Amount and Count do not include this month's activity
INSURANCE RESERVES
<TABLE>
<CAPTION>
ORIGINAL CLAIMS IN CLAIMS COVERAGE
INSURANCE TYPE BALANCE PROGRESS PAID ADJUSTMENTS REMAINING
<S> <C> <C> <C> <C> <C>
MPI $ 0.00 $0.00 $ 0.00 $0.00 $ 0.00
SPECIAL HAZARD $2,520,000.00 $0.00 $ 0.00 $0.00 $2,520,000.00
BANKRUPTCY BOND
SINGLE-UNITS $ 100,000.00 $0.00 $ 0.00 $0.00 $ 100,000.00
MULTI-UNITS $ 0.00 $0.00 $ 0.00 $0.00 $ 0.00
MORTGAGE REPURCHASE $1,933,937.00 $0.00 $ 0.00 $0.00 $1,933,937.00
</TABLE>
DELINQUENT INSTALLMENTS
<TABLE>
<CAPTION>
ONE TWO THREE
<S> <C> <C> <C> <C> <C>
COUNT PRIN BALANCE COUNT PRIN BALANCE COUNT PRIN BALANCE
16 $5,541,160.53 1 $ 250,994.06 0 $0.00
</TABLE>
<TABLE>
<CAPTION>
IN FORECLOSURE ACQUIRED
<S> <C> <C> <C>
COUNT PRIN BALANCE COUNT PRIN BALANCE
0 $0.00 0 $0.00
</TABLE>
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PNC MORTGAGE SECURITIES CORP.
MASTER SERVICING DIVISION
WEIGHTED AVERAGE WORKSHEET
SERIES: 98-1 HMSI (1477)
<TABLE>
<CAPTION>
Interest Rate Interest Net Rate Pass Through Remaining Principal Number Of Loans
Rate Rate Term Balance
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
0.0000 - 4.9999
5.0000 - 5.4999
5.5000 - 5.9999
6.0000 - 6.4999
6.5000 - 6.9999 6.7871 6.5121 6.4955 356.415 $ 4,255,516.71 13
7.0000 - 7.4999 7.2573 6.9720 6.9548 356.038 $ 41,729,820.71 119
7.5000 - 7.9999 7.6901 6.8815 6.8636 355.675 $150,355,131.53 435
8.0000 - 8.4999 8.1739 7.2054 7.1873 355.584 $ 64,533,924.06 182
8.5000 - 8.9999 8.6445 7.7898 7.7660 355.445 $ 16,174,662.78 53
9.0000 - 9.4999 9.1818 8.5997 8.5637 354.895 $ 5,512,866.94 18
9.5000 - 9.9999 9.5692 8.5942 8.5692 355.288 $ 1,848,440.31 5
10.0000-10.4999 10.2500 9.2750 9.2500 355.000 $ 251,462.50 1
10.5000-10.9999
11.0000 - 11.4999
11.5000 - 11.9999
12.0000 - 12.4999
12.5000 - 12.9999
13.0000 - 13.4999
13.5000 - 13.9999
14.0000 - 14.4999
14.5000 - 14.9999
15.0000 - 15.4999
15.5000 - 15.9999
16.0000 - 16.4999
16.5000 - 16.9999
17.0000 - 17.4999
17.5000 - 17.9999
18.0000 - 18.4999
18.5000 - 18.9999
19.0000 - 19.4999
19.5000 - 19.9999
20.0000 - 99.9999
Pool Totals 7.8204 7.0608 7.0422 355.687 $284,661,825.54 826
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