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
Date of Report (Date of earliest event reported)
December 25, 1996
Salomon Bros Mortgage Securities VII, Inc. 1996-LB3
(Exact name of registrant as specified in its charter)
New York n/a
Applied For
(State or other jurisdiction (Commission
(IRS Employer
of incorporation or File Number)
Identification
organization) Number)
c/o Norwest Bank Minnesota
National Association
Sixth Street & Marquette Avenue
Minneapolis, Minnesota 55479-
0069
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number including area code
(612) 984-0979
Salomon Bros Mortgage Securities VII, Inc. 1996-LB3
Form 8-K
INDEX
Page Number
Item 5. Other Events
3
Item 7. Financial Statements and Exhibits
3
SIGNATURES 4
INDEX OF EXHIBITS 5
ITEM 5. OTHER EVENTS
The Salomon Bros Mortgage Securities VII, Inc. 1996-LB3
makes monthly remittances to security holders. The latest
remittance was made December 25, 1996. We have furnished
a monthly remittance statement delivered to the trustee
with security holder payment instructions.
Monthly Remittance
Statement.................................................
.. ......Exhibit 21.1
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibits
21.1 Monthly Remittance Statement dated as of
December 25, 1996.
SIGNATURES
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.
Salomon Bros Mortgage Securities
VII, Inc. 1996-
LB1A
(Registrant)
By: Norwest Bank of Minnesota,
N.A.
Name: Kris Solie - Johnson
Title: Corporate Trust Officer
INDEX OF EXHIBITS
Page of
Sequentially
Numbered Pages
21.1 Monthly Remittance Statement dated 8-
17 as of December 25, 1996.
21.2 No-Action Letter 6-7
Page 6 Exhibit 21.2
January 10, 1997
Securities and Exchange Commission
450 Fifth Street, N.W.
Judiciary Plaza
Washington, D.C. 20549
Dear Sirs:
Enclosed herewith for filing on behalf of the trust
fund (the "Trust") created pursuant to a Trust Agreement
dated as of November 1, 1996 (the "Trust Agreement")
among Salomon Brothers Mortgage Securities VII, Inc., as
depositor (the "Depositor"), and Norwest Bank Minnesota,
N.A., as trustee (the "Trustee"), is the Current Report on
Form 8-K (the "Report").
The Trust consists of primarily a segregated pool of
conventional, one-to four-family, fixed-rate, fully
amortizing first lien mortgage loans. The certificates
relating to then of such classes as registered under the
Securities Act of 1933, as amended, by a Registration
Statement on Form S-11. As a result, the Trust is
subject to the filing requirements of Section 15(d) of the
Securities Exchange Act of 1934, as amended (the "Exchange
Act"). The Trust intends to fulfill these filing
requirements in a manner substantially in accordance with
the procedures outlined in numerous no-action letters
already issued by the staff with respect to substantially
similar trusts.
In particular:
1. The Trust has already filed, within 15 days of
its formation, a Current Report on Form 8-K containing
detailed information about its mortgage pool
2. The Trust will file, promptly after each
Distribution Date (as defined in the Trust Agreement), a
Current Report on Form 8-K in substantially the form
enclosed herewith, including as exhibits thereto the
applicable Distribution Date reports. Each such Current
Report will also disclose under Item 5 any matter
occurring during the relevant reporting period which would
be reportable under Item 1,2,4, or 5 of Part II of Form 10-
Q.
3. The Trust will file a Current Report on Form 8-K
within 15 days after the occurrence of any event described
under Item 2,3,4, of 5 thereof, responding to the
requirements of the applicable Item.
4. Within 90 days after the end of each fiscal
year, the Trust will file an annual report on Form 10-K
which responds to Items 2, 3, and 4 of Part I, Items 5 and
9 Page 7 Exhibit 21.2
of Part II, Items 12 and 13 of Part III and Item 14 of
Part IV thereof, and include as exhibits thereto certain
information from the Distribution Date reports aggregated
for such year and a copy of the independent accountants'
annual compliance statement required under the Trust
Agreement, in the manner described in the applicable no
action letters.
The trust will follow the above procedures except for
any fiscal year as to which its reporting obligations
under Section 15(d) of the Exchange Act have been have
been suspended pursuant to such Section. In such event,
the Trust will file a Form 15 as required under rule 15d
6.
We have been advised by representatives of the Office
of the Chief Counsel of the Division of Corporation
Finance that following the above procedures would be
acceptable. We
assume that the staff will promptly inform us if our
understanding is incorrect. Please direct any questions
to Shaydra Robinson of Norwest Bank Minnesota, N.A. at
(410) 884-2112.
Very truly yours,
Shaydra Robinson
Page 8 Exhibit 21.1
Salomon Brothers Mortgage Securities VII, Series
1996-LB3 Norwest Bank Minnesota, N.A.
Contact: Carol Tracey
Securities Administration Services
Reporting Month: November 1996
Phone: (410) 884-
2117
11000 Broken Land Parkway
Distribution Date: December 26, 1996
InvestorDirect: (800) 605-4167
Columbia, MD 21044-7800
Series Structure Summary
Aggregate Realized
Aggregate
Ending
Class
Original Principal Losses
Principal
Aggregate Interest Undistributed Principal
Class Description Principal Type Interest Type
Balance Pass Through Rate Balance Reduction
Shortfall Principal Factor
__________________________________________________________
__
__________________________________________________________
__ _______________________________________________
A Senior Sequential Pay Floater
194,978,000.00 5.73750000% 0.00
0.00 0.00 0.9960388346
B Subordinate Sequential Pay
Variable
4,897,473.16 134.35010153%
0.00
0.00 0.00 1.0000000000
R-I Residual Residual
Floater
100.00 320.84600238% 0.00
0.00 0.00 0.0000000000
R-II Residual Residual
Floater
100.00 5.73750000% 0.00
0.00 0.00 0.0000000000
Reserve Subordinate Pass Through
Variable
20,000.00 7.40377068% 0.00
0.00 0.00 0.9961155000
__________________________________________________________
__
__________________________________________________________
__ _______________________________________________
Totals
199,895,673.16 0.00
0.00 0.00 0.9961348
Page 9 Exhibit 21.1
Salomon Brothers
Mortgage Securities VII, Series 1996-LB3
Norwest Bank Minnesota, N.A.
Contact: Carol Tracey
Securities Administration Services
Reporting Month: November 1996
Phone:
(410) 884-2117
11000 Broken Land Parkway
Distribution Date: December 26, 1996
InvestorDirect: (800) 605-
4167
Columbia, MD 21044-7800
Class Distribution Summary
Beginning
Principal Ending
Pass Through
Principal Total Interest Total
Principal
Balance Principal Total
Class Record Date Rate
Balance Distribution Distribution
Reduction Balance
Distribution
__________________________________________________________
__
__________________________________________________________
__ ____________________________________
A 11/29/1996 5.73750000%
194,978,000.00 963,313.19
772,340.11
0.00 194,205,659.89 1,735,653.30
B 11/29/1996 134.35010153%
4,897,473.16 548,313.35
0.00
0.00 4,897,473.16 548,313.35
R-I 11/29/1996 320.84600238%
100.00 27.62
100.00
0.00 0.00 127.62
R-II 11/29/1996 5.73750000%
100.00 0.49
100.00
0.00 0.00 100.49
Reserve 11/29/1996 7.40377068%
20,000.00 127.51
77.69
0.00 19,922.31 205.20
__________________________________________________________
__
__________________________________________________________
__ ____________________________________
Totals
199,895,673.16 1,511,782.16 772,617.80
0.00 199,123,055.36 2,284,399.96
Page 10 Exhibit 21.1
Salomon Brothers Mortgage Securities VII, Series 1996-
LB3 Norwest Bank Minnesota, N.A.
Contact: Carol Tracey
Securities Administration Services
Reporting Month: November 1996
Phone: (410) 884-
2117
11000 Broken Land Parkway
Distribution Date: December 26, 1996
InvestorDirect: (800) 605-
4167
Columbia, MD 21044-7800
Component Distribution Summary
Beginning
Principal Ending
Ending
Original Pass Through
Principal Total Interest Total Principal
Balance Principal Total
Principal
Component Balance Rate
Balance Distribution Distribution Reduction
Balance Distribution
Factor
__________________________________________________________
__
__________________________________________________________
__ ____________________________________________________
LT2 9,754.97 5.73750000%
9,754.97 48.20 38.85
0.00 9,716.12 87.05
0.9960174147
LT3 10,245.03 9.29001500%
10,245.03 79.31 38.84
0.00 10,206.19 118.15
0.9962088935 Page 11 Exhibit 21.1
Salomon Brothers
Mortgage Securities VII, Series 1996-LB3
Norwest Bank Minnesota, N.A.
Contact: Carol Tracey
Securities Administration Services
Reporting
Month: November 1996 Phone:
(410) 884-2117
11000 Broken Land Parkway
Distribution
Date: December 26, 1996 InvestorDirect:
(800) 605-4167
Columbia, MD 21044-7800
Class
Distribution Per 1,000 of Original Balance
Total Other
Total Interest Scheduled Principal Total Principal
Principal Ending
Distribution Principal Distribution
Distribution
Balance Principal
Class Cusip Original Balance
Factor Factor Factor Factor
Reduction Factor
__________________________________________________________
__
__________________________________________________________
__ _____________________________
A 79548KSJ8 194,978,000.00
4.94062504 0.56611705 3.39504836 3.96116541
0.00000000 0.9960388346
B N/A 4,897,473.16
111.95841857 0.00000000 0.00000000
0.00000000
0.00000000 1.0000000000
R-I 79548KSG4 100.00
276.20000000 1000.00000000 0.00000000
1000.00000000
0.00000000 0.0000000000
R-II 79548KSH2 100.00
4.90000000 1000.00000000 0.00000000 1000.00000000
0.00000000 0.0000000000
Reserve NA 20,000.00
6.37550000 0.55600000 3.32850000 3.88450000
0.00000000 0.9961155000
__________________________________________________________
__
__________________________________________________________
__ _____________________________
Totals
199,895,673.16
0.9961348948
Page 12 Exhibit 21.1
Salomon Brothers Mortgage Securities VII, Series
1996-LB3 Norwest Bank Minnesota, N.A.
Contact: Carol Tracey
Securities Administration Services
Reporting Month: November 1996
Phone: (410) 884-
2117
11000 Broken Land Parkway
Distribution Date: December 26, 1996
InvestorDirect: (800) 605-4167
Columbia, MD 21044-7800
Class Principal Distribution
Beginning
Principal Ending Current
Principal Scheduled
Unscheduled Other
Total
Principal Balance Principal
Undistributed
Class Balance Principal
Principal Accretion Principal
Distribution
Reduction* Balance Principal
__________________________________________________________
__
__________________________________________________________
__ ____________________________________________
A 194,978,000.00 110,380.37
661,959.74 0.00
0.00
772,340.11 0.00
194,205,659.89
0.00
B 4,897,473.16
0.00
0.00 0.00 0.00
0.00
0.00 4,897,473.16 0.00
R-I 100.00 100.00
0.00 0.00 0.00
100.00
0.00 0.00 0.00
R-II 100.00 100.00
0.00 0.00 0.00
100.00
0.00 0.00 0.00
Reserve 20,000.00 11.12
66.57 0.00 0.00 77.69
0.00 19,922.31 0.00
__________________________________________________________
__
__________________________________________________________
__ ____________________________________________
Totals 199,895,673.16 110,591.49
662,026.31 0.00
0.00
772,617.80 0.00
199,123,055.36
0.00
*Principal Balance Reduction
Realized Losses Principal Balance
Reduction 0.00
Negative Amortization Principal Balance
Reduction 0.00
Other
0.00
Page 13 Exhibit 21.1
Salomon Brothers Mortgage Securities VII, Series
1996-LB3 Norwest Bank Minnesota, N.A.
Contact: Carol Tracey
Securities Administration Services
Reporting Month: November 1996
Phone: (410) 884-2117
11000 Broken Land Parkway
Distribution Date: December 26, 1996 InvestorDirect:
(800) 605-4167
Columbia, MD 21044-7800
Class Interest Distribution
Beginning Negative
Ending
Principal/
Interest
Amortization
Principal/
Notional
Interest Shortfall/
Other
Interest Total Interest Notional
Class Pass-Through Rate Balance
Accrual (Recovery) Accretion Interest
Reduction Distribution Balance
__________________________________________________________
__
__________________________________________________________
__ _____________________________________________
A 5.73750000% 194,978,000.00
963,313.18 0.00 0.00
0.01 0.00 963,313.19 194,205,659.89
B 134.35010153% 4,897,473.16
548,313.35 0.00 0.00
0.00 0.00 548,313.35 4,897,473.16
R-I 320.84600238% 100.00
27.62 0.00 0.00 0.00
0.00 27.62 0.00
R-II 5.73750000% 100.00
0.49 0.00 0.00 0.00
0.00 0.49 0.00
Reserve 7.40377068% 20,000.00
127.51 0.00 0.00 0.00
0.00 127.51 19,922.31
__________________________________________________________
__
__________________________________________________________
__ _____________________________________________
Totals
1,511,782.15 0.00 0.00
0.01 0.00 1,511,782.16
Page 14 Exhibit 21.1
Salomon Brothers Mortgage Securities VII, Series 1996-
LB3 Norwest Bank Minnesota, N.A.
Contact: Carol Tracey
Securities Administration Services
Reporting Month: November 1996
Phone: (410) 884-
2117
11000 Broken Land Parkway
Distribution Date: December 26, 1996
InvestorDirect: (800) 605-
4167
Columbia, MD 21044-7800
Fund Account Summary
__________________________________________________________
__
__________________________________________________________
__ ______________________________________________________
Proceeds Account
Beginning Balance
0.00
DEPOSITS:
WITHDRAWALS:
Interest Net of Servicing Fee
1,548,111.16
Interest Payments
1,511,654.65
Scheduled Principal
110,591.49
Scheduled Principal Payment
110,580.37
Other Principal
662,026.31
Other Principal Payments
661,467.29
Negative Amortization
0.00
Reserve Fund 1
697.65
Deposits from Reserve Fund
0.00
Fees and Expenses
36,329.00
Gain/Loss Adjustment
0.00
Other Withdrawals
0.00
Other Deposits
0.00
Total Deposit
2,320,728.96 Total Withdrawals
2,320,728.96
Ending Balance
0.00
__________________________________________________________
__
__________________________________________________________
__ ______________________________________________________
Beginning Current Other Current
Other
Initial Balance
Requirement Balance Deposit
Deposit
Withdrawal Withdrawal Ending Balance
Reserve Fund - 1 0.00
0.00 0.00 697.65 0.00
0.00 0.00 697.65
Page 15 Exhibit 21.1
Salomon Brothers Mortgage Securities VII, Series 1996-
LB3 Norwest Bank Minnesota, N.A.
Contact: Carol Tracey
Securities Administration Services
Reporting Month: November 1996
Phone: (410) 884-
2117 11000 Broken Land Parkway
Distribution Date: December 26, 1996
InvestorDirect: (800) 605-
4167 Columbia, MD 21044-7800
Loss/Delinquency Detail Supplement
Current Current Current
Current Total Aggregate Aggregate
Aggregate Aggregate Total
Fraud Bankruptcy Special Hazard
Credit Current Fraud Bankruptcy
Special Hazard Credit Aggregate
Pool # Losses Losses Losses
Losses Losses Losses Losses
Losses Losses Losses
__________________________________________________________
__
__________________________________________________________
__ _________________________________________________
X 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00
__________________________________________________________
__
__________________________________________________________
__ _________________________________________________
Totals 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00
Pool
Initial Loss Current Loss Current Loss
# Loss Type
Limit Amount Limit Amount Limit Percent
__________________________________________________________
__ ______________________________________________________
X Bankruptcy Losses
100,000.00 100,000.00 0.05022020%
X Fraud Losses
5,996,870.19 5,996,870.19 3.01164030%
X Special Hazard Losses
1,998,956.73 1,998,956.73 1.00388010%
30 Days Delinquent 60 Days Delinquent 90
Days Delinquent Foreclosures
Bankruptcy REO's Totals
Number Balance Number Balance
Number Balance Number Balance Number
Balance Number Balance Number Balance
50 4,787,420.48 8
840,992.83
0 0.00 4 528,709.93 0
0.00 0 0.00 62 6,157,123.24
Total
50 4,787,420.48 8
840,992.83
0 0.00 4 528,709.93 0
0.00 0 0.00 62 6,157,123.24
Page 16 Exhibit 21.1
Salomon Brothers
Mortgage Securities VII, Series 1996-LB3
Norwest Bank Minnesota, N.A.
Contact: Carol Tracey
Securities Administration Services
Reporting
Month: November 1996 Phone:
(410) 884-2117
11000 Broken Land Parkway
Distribution Date: December 26, 1996
InvestorDirect: (800) 605-
4167
Columbia, MD 21044-7800
Collateral Summary
Total| Pool X
Monthly P&I Constant
1,741,992.51| 1,741,992.51
|
Positive Amortization
110,591.49| 110,591.49
Negative Amortization
0.00| 0.00
Regular Curtailments
560.50| 560.50
Regular Curtailment Interest
0.00| 0.00
Prepaid Curtailments
0.00| 0.00
Prepaid Curtailment Interest
0.00| 0.00
Liquidations
661,466.31| 661,466.31
Principal Adjustments
(0.50)| (0.50)
Total Principal Trust Distribution
772,617.80| 772,617.80
|
Scheduled Interest
1,631,401.02| 1,631,401.02
Servicing Fee
83,289.86| 83,289.86
Master Servicing Fee
583.03| 583.03
Spread
0.00| 0.00
Total Pass-Through Interest
1,547,528.13| 1,547,528.13
|
Beginning Balance
199,895,673.16| 199,895,673.16
Ending Balance
199,123,055.36| 199,123,055.36
Gross P&I Distribution
2,320,728.96| 2,320,728.96
Realized Losses/(Gains)
0.00| 0.00
Net P&I Trust Distribution
2,320,728.96| 2,320,728.96
|
Beginning Loan Count
1959| 1959
Number of Loan Payoffs
6| 6
Ending Loan Count
1953| 1953
|
Weighted Average Maturity
351.0000000000| 351.0000000000
Weighted Average Gross Rate
9.979351500%| 9.979351500%
Weighted Average Net Rate
9.293515000%| 9.293515000%
Weighted Average Pass-Through Rate
9.290015000%| 9.290015000%
Weighted Average Margin
0.000000000%| 0.000000000%
|
Advances on Delinquencies
|
Current Period Principal
0.00| 0.00
Current Period Interest
0.00| 0.00
Page 17 Exhibit 21.1
Salomon Brothers Mortgage Securities VII, Series
1996-LB3 Norwest Bank Minnesota, N.A.
Contact: Carol Tracey
Securities Administration Services
Reporting Month: November 1996
Phone: (410) 884-
2117
11000 Broken Land Parkway
Distribution Date: December 26, 1996
InvestorDirect: (800) 605-
4167
Columbia, MD 21044-7800
Credit Enhancement Summary
Initial Current Current
Current Current Current
Coverage Period Period Cumulative
Coverage Coverage Pool
Type/Purpose
Amount Losses Additions Losses
Percentage Amount Balance
__________________________________________________________
__
__________________________________________________________
__ ___________________________________________
Reserve Fund - 1
0.00 0.00 697.65 (697.65)
0.00000000% 697.65 0.00
Subordination
4,917,473.16 0.00 0.00
0.00
2.46952592% 4,917,395.47 199,123,055.36
Principal
Distribution
Scheduled Unscheduled
Amount Percentage
Payment Payment
__________________________________________________________
_ Senior 772,340.11 99.96405856%
99.80909924% 99.98994451%
Subordinate 77.69 0.01005542%
0.01005502% 0.01005549%
