<PAGE> 1
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
November 25, 1997
Date of Report (Date of Earliest Event Reported)
Sequoia Mortgage Funding Corporation (as Sponsor of Sequoia Mortgage Trust 2,
the Issuer of Collateralized Mortgage Bonds under an Indenture dated as of
October 1, 1997)
SEQUOIA MORTGAGE FUNDING CORPORATION
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(Exact Name of Registrant as Specified in Its Charter)
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<CAPTION>
Delaware 333-22681-2 91-1771827
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<S> <C> <C>
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)
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591 Redwood Highway, Suite 3120, Mill Valley, CA 94941
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(Address of Principal Executive Offices)
(415) 381-1765
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(Registrant's Telephone Number,
Including Area Code)
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
<PAGE> 2
INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. OTHER EVENTS
Sequoia Mortgage Funding Corporation has previously registered the
offer and sale of Collateralized Mortgage Bonds issued by Sequoia
Mortgage Trust 2 (the "Bonds").
The following exhibit which relates specifically to the Bonds is
included with this Current Report:
Item 7(c). Exhibits
10.1 Monthly Payment Date Statement distributed to
Bondholders, dated November 25, 1997.
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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: December 4, 1997
SEQUOIA MORTGAGE FUNDING
CORPORATION
By: /s/ Vickie L. Rath
----------------------------------
Vickie L. Rath
Treasurer and Assistant Secretary
(Principal Financial Officer and
and Principal Accounting Officer)
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EXHIBIT INDEX
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Exhibit Number Page Number
<S> <C> <C>
10.1 Monthly Payment Date Statement distributed to
Bondholders, dated November 25, 1997............................................ 5
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EXHIBIT 10.1
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<S> <C> <C>
Sequoia Mortgage Funding Corporation Administrator: Customer Service
Collateralized Mortgage Bonds Sequoia Mortgage Trust 2 Norwest Bank Minnesota, N.A.
Certificateholder Remittance Reports Securities Administration Services
Record Date: 31-Oct-97 7485 New Horizon Way
Distribution Date: 25-Nov-97 Frederick, MD 21703
Phone: (301) 815-6479
Fax: (301) 815-6365
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Page
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Certificateholder Distribution Summary 1
Certificateholder Principal Distribution Statement 2
Certificateholder Principal Distribution Factors Statement 3
Certificateholder Interest Distribution Statement 4
Certificateholder Interest Distribution Factors Statement 5
Certificateholder Accounts Statement 6
Certificateholder Delinquency Summary 7
Certificateholder Collateral Summary 8
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<S> <C> <C>
Sequoia Mortgage Funding Corporation Administrator: Customer Service Page 1
Collateralized Mortgage Bonds Sequoia Mortgage Trust 2 Norwest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 31-Oct-97 7485 New Horizon Way
Distribution Date: 25-Nov-97 Frederick, MD 21703
Phone: (301) 815-6479
Fax: (301) 815-6365
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DISTRIBUTION SUMMARY
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===========================================================================================================
Certificate Certificate Beginning
Class Pass-Through Certificate Interest
Class CUSIP Description Rate Balance Distribution
===========================================================================================================
<S> <C> <C> <C> <C> <C>
A-1 81743MAA1 SEQ 6.50000% 592,560,000.00 3,209,700.00
A-2 81743MAB9 SEQ 5.99625% 156,600,000.00 782,510.63
Inv. Cert. SMTCRT002 R 0.00000% 7,567,489.63 0.00
===========================================================================================================
Totals 756,727,489.63 3,992,210.63
===========================================================================================================
<CAPTION>
===========================================================================================================
Current Ending Cumulative
Principal Realized Certificate Total Realized
Class Distribution Loss Balance Distribution Loss
===========================================================================================================
<S> <C> <C> <C> <C> <C>
A-1 6,343,887.32 0.00 586,216,112.68 9,553,587.32 0.00
A-2 1,676,543.73 0.00 154,923,456.27 2,459,054.36 0.00
Inv. Cert. 0.00 0.00 7,567,489.63 0.00 0.00
===========================================================================================================
Totals 8,020,431.06 0.00 748,707,058.58 12,012,641.68 0.00
===========================================================================================================
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/s/ Edward M. Frere, Jr.
- --------------------------------------------- -----------------
Edward M. Frere, Jr. Date
Vice President, Norwest Bank Minnesota, N.A.
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<S> <C> <C>
Sequoia Mortgage Funding Corporation Administrator: Customer Service Page 2
Collateralized Mortgage Bonds Sequoia Mortgage Trust 2 Norwest Bank Minnesota, N.A.
Certificateholder Principal Distribution Statement Securities Administration Services
Record Date: 31-Oct-97 7485 New Horizon Way
Distribution Date: 25-Nov-97 Frederick, MD 21703
Phone: (301) 815-6479
PRINCIPAL DISTRIBUTIONS Fax: (301) 815-6365
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<CAPTION>
===============================================================================================================================
Original Beginning Scheduled Unscheduled
Face Certificate Principal Principal Realized
Class Amount Balance Distribution Distribution Accretion Loss
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
A-1 592,560,000.00 592,560,000.00 0.00 6,343,887.32 0.00 0.00
A-2 156,600,000.00 156,600,000.00 0.00 1,676,543.73 0.00 0.00
Inv. Cert. 7,567,489.63 7,567,489.63 0.00 0.00 0.00 0.00
===============================================================================================================================
Totals 756,727,489.63 756,727,489.63 0.00 8,020,431.06 0.00 0.00
===============================================================================================================================
<CAPTION>
=========================================================================================
Total Ending Ending Total
Principal Certificate Certificate Principal
Class Reduction Balance Percentage Distribution
=========================================================================================
<S> <C> <C> <C> <C>
A-1 6,343,887.32 586,216,112.68 0.98929410 6,343,887.32
A-2 1,676,543.73 154,923,456.27 0.98929410 1,676,543.73
Inv. Cert. 0.00 7,567,489.63 1.00000000 0.00
=========================================================================================
Totals 8,020,431.06 748,707,058.58 0.98940116 8,020,431.06
=========================================================================================
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<S> <C> <C>
Sequoia Mortgage Funding Corporation Administrator: Customer Service Page 3
Collateralized Mortgage Bonds Sequoia Mortgage Trust 2 Norwest Bank Minnesota, N.A.
Certificateholder Principal Distribution Factors Statement Securities Administration Services
Record Date: 31-Oct-97 7485 New Horizon Way
Distribution Date: 25-Nov-97 Frederick, MD 21703
Phone: (301) 815-6479
Fax: (301) 815-6365
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PRINCIPAL DISTRIBUTIONS
CERTIFICATE FACTORS
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<CAPTION>
======================================================================================================================
Original Beginning Scheduled Unscheduled
Face Certificate Principal Principal Realized
Class Amount Balance Distribution Distribution Accretion Loss
======================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
A-1 592,560,000.00 1000.00000000 0.00000000 10.70589868 0.00000000 0.00000000
A-2 156,600,000.00 1000.00000000 0.00000000 10.70589868 0.00000000 0.00000000
Inv. Cert. 7,567,489.63 1000.00000000 0.00000000 0.00000000 0.00000000 0.00000000
======================================================================================================================
<CAPTION>
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Total Ending Ending Total
Principal Certificate Certificate Principal
Class Reduction Balance Percentage Distribution
===============================================================================
<S> <C> <C> <C> <C>
A-1 10.70589868 989.29410132 0.98929410 10.70589868
A-2 10.70589868 989.29410132 0.98929410 10.70589868
Inv. Cert. 0.00000000 1000.00000000 1.00000000 0.00000000
===============================================================================
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* All Classes Are Per $1,000 Denomination.
<PAGE> 5
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<S> <C> <C>
Sequoia Mortgage Funding Corporation Administrator: Customer Service Page 4
Collateralized Mortgage Bonds Sequoia Mortgage Trust 2 Norwest Bank Minnesota, N.A.
Certificateholder Interest Distribution Statement Securities Administration Services
Record Date: 31-Oct-97 7485 New Horizon Way
Distribution Date: 25-Nov-97 Frederick, MD 21703
Phone: (301) 815-6479
INTEREST DISTRIBUTIONS Fax: (301) 815-6365
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<CAPTION>
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Payment of
Beginning Previously
Original Current Certificate/ Current Unpaid Current
Face Certificate Notional Accrued Interest Interest
Class Amount Rate Balance Interest Shortfall Shortfall
====================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
A-1 592,560,000.00 6.50000% 592,560,000.00 3,209,700.00 0.00 0.00
A-2 156,600,000.00 5.99625% 156,600,000.00 782,510.63 0.00 0.00
Inv. Cert. 7,567,489.63 0.00000% 7,567,489.63 0.00 0.00 0.00
====================================================================================================================
Total Class A Interest Distribution 3,992,210.63 0.00
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<CAPTION>
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Remaining
Cumulative Ending
Original Non-Supported Total Unpaid Certificate/
Face Interest Realized Interest Interest Notional
Class Amount Shortfall Losses Distribution Shortfall Balance
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
A-1 592,560,000.00 0.00 0.00 3,209,700.00 0.00 586,216,112.68
A-2 156,600,000.00 0.00 0.00 782,510.63 0.00 154,923,456.27
Inv. Cert. 7,567,489.63 0.00 0.00 0.00 0.00 7,567,489.63
==========================================================================================================================
Total Class A Interest Distribution 0.00 0.00 0.00 3,992,210.63 0.00
==========================================================================================================================
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<S> <C> <C>
Sequoia Mortgage Funding Corporation Administrator: Customer Service Page 5
Collateralized Mortgage Bonds Sequoia Mortgage Trust 2 Norwest Bank Minnesota, N.A.
Certificateholder Interest Distribution Factors Statement Securities Administration Services
Record Date: 31-Oct-97 7485 New Horizon Way
Distribution Date: 25-Nov-97 Frederick, MD 21703
INTEREST DISTRIBUTIONS Phone: (301) 815-6479
CERTIFICATE FACTORS Fax: (301) 815-6365
</TABLE>
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Payment of
Original Beginning Previously
Face / Current Certificate/ Current Unpaid Current
Notional Certificate Notional Accrued Interest Interest
Class Amount Rate Balance Interest Shortfall Shortfall
================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
A-1 592,560,000.00 6.50000% 1000.00000000 5.41666667 0.00000000 0.00000000
A-2 156,600,000.00 5.99625% 1000.00000000 4.99687500 0.00000000 0.00000000
Inv. Cert. 7,567,489.63 0.00000% 1000.00000000 0.00000000 0.00000000 0.00000000
================================================================================================================
=====================================================================================================
Remaining
Cumulative Ending
Non-Supported Total Unpaid Certificate/
Interest Realized Interest Interest Notional
Class Shortfall Losses Distribution Shortfall Balance
=====================================================================================================
<S> <C> <C> <C> <C> <C>
A-1 0.00000000 0.00000000 5.41666667 0.00000000 989.29410132
A-2 0.00000000 0.00000000 4.99687500 0.00000000 989.29410132
Inv. Cert. 0.00000000 0.00000000 0.00000000 0.00000000 1000.00000000
=====================================================================================================
</TABLE>
* All Classes Are Per $1,000 Denomination.
<PAGE> 7
<TABLE>
<S> <C> <C>
Sequoia Mortgage Funding Corporation Aministrator: Customer Service Page 6
Collateralized Mortgage Bonds Sequoia Mortgage Trust 2 Norwest Bank Minnesota, N.A.
Certificateholder Accounts Statement Securities Administration Services
Record Date: 31-Oct-97 7485 New Horizon Way
Distribution Date: 25-Nov-97 Frederick, MD 21703
Phone: (301) 815-6479
Fax: (301) 815-6365
<CAPTION>
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CERTIFICATE ACCOUNT
<S> <C>
Beginning Balance 0.00
Deposits
Payments of Interest and Principal on Home Loans 12,162,639.08
Liquidations, Insurance Proceeds, Reserve Funds 0.00
Proceeds From Repurchased Loans 0.00
Funds From Capitalized Interest Account 0.00
Total Deposits 12,162,639.08
Withdrawals
Reimbursement for Servicer Advances 0.00
Payment of Fees 149,997.40
Payment of Interest and Principal 12,012,641.68
Total Withdrawals (Pool Distribution Amount) 12,162,639.08
Ending Balance 0.00
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<CAPTION>
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PREPAYMENT INTEREST SHORTFALL/SERVICING FEES
<S> <C>
Non-Supported Curtailment/Prepayment Interest Shortfall 0.00
Servicing Fee 133,372.21
MBIA - Guraranty Insurance Premium 15,625.19
Management Fee 1,000.00
------------
Net Fees 149,997.40
============
==========================================================================
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<S> <C> <C>
Sequoia Mortgage Funding Corporation Administrator: Customer Service Page 7
Collateralized Mortgage Bonds Sequoia Mortgage Trust 2 Norwest Bank Minnesota, N.A.
Certificateholder Delinquency Statement ecurities Administration Services
Record Date: 31-Oct-97 7485 New Horizon Way
Distribution Date: 25-Nov-97 Frederick, MD 21703
Phone: (301) 815-6479
Fax: (301) 815-6365
<CAPTION>
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DELINQUENCY STATUS/LOSSES
Percentage Percentage
Loans Count Unpaid Balance Loans Count Unpaid Balance
<S> <C> <C> <C> <C>
30 Days 17 6,204,817.10 0.75% 0.83%
60 Days 0 0.00 0.00% 0.00%
90+ Days 0 0.00 0.00% 0.00%
Foreclosure 0 0.00 0.00% 0.00%
REO 0 0.00 0.00% 0.00%
Totals 17 6,204,817.10 0.75% 0.83%
Current Period Net Losses 0.00
Cumulative Net Losses 0.00
================================================================================================================================
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<S> <C> <C>
Sequoia Mortgage Funding Corporation Administrator: Customer Service Page 8
Collateralized Mortgage Bonds Sequoia Mortgage Trust 2 Norwest Bank Minnesota, N.A.
Certificateholder Collateral Summary Securities Administration Services
Record Date: 31-Oct-97 7485 New Horizon Way
Distribution Date: 25-Nov-97 Frederick, MD 21703
Phone: (301) 815-6479
Fax: (301) 815-6365
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<CAPTION>
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COLLATERAL POOL DATA
Collateral Description ARMs
<S> <C>
Weighted Average Gross Coupon 7.624015%
Weighted Average Net Coupon 7.386150%
Weighted Average Maturity (Home Loans) 295 Months
Beginning Scheduled Collateral Loan Count 2,288
Number of Loan Payoffs 14
Ending Scheduled Collateral Loan Count 2,274
Specified Overcollateralization Amount $7,567,274.90
Serious Delinquencies $0.00
================================================================================
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