<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
March 25, 1998
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
------------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
<TABLE>
Delaware 333-22681-2 91-1771827
-------- ----------- ----------
<S> <C> <C>
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)
</TABLE>
591 Redwood Highway, Suite 3120, Mill Valley, CA 94941
(Address of Principal Executive Offices)
(415) 381-1765
--------------
(Registrant's Telephone Number,
Including Area Code)
Not Applicable
--------------
(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 March 25, 1998.
<PAGE> 3
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: April 13, 1998
SEQUOIA MORTGAGE FUNDING
CORPORATION
By: /s/ Vickie L. Rath
-----------------------------------
Vickie L. Rath
Treasurer and Assistant Secretary
(Principal Financial Officer and
and Principal Accounting Officer)
<PAGE> 4
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Number Page Number
- -------------- -----------
<S> <C>
10.1 Monthly Payment Date Statement distributed to
Bondholders, dated March 25, 1998................................................5
</TABLE>
<PAGE> 1
EXHIBIT 10.1
<TABLE>
<S> <C> <C>
Sequoia Mortgage Trust SMT Contact: Customer Service
Mortgage Pass-Through Certificates Series 1997-2 NorWest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 27-Feb-1998 7485 New Horizon Way
Distribution Date: 25-Mar-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
<TABLE>
<CAPTION>
Certificateholder Distribution Summary
=========================================================================================================================
Certificate
Certificate Pass- Beginning
Class Through Certificate Interest Principal
Class CUSIP Description Rate Balance Distribution Distribution
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
A-1 81743MAA1 SEQ 6.50250% 568,087,868.66 3,078,326.14 12,985,066.37
A-2 81743MAB9 SEQ 5.96500% 150,132,577.68 746,284.02 3,431,654.84
OC SMTCRT002 R 0.00000% 7,567,274.86 794,712.63 0.00
=========================================================================================================================
Totals 725,787,721.20 4,619,322.79 16,416,721.21
=========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
===================================================================================
Ending
Current Certificate Total Cumulative
Class Realized Loss Balance Distribution Realized Losses
===================================================================================
<S> <C> <C> <C> <C>
A-1 0.00 555,102,802.29 16,063,392.51 0.00
A-2 0.00 146,700,922.84 4,177,938.86 0.00
OC 0.00 7,567,274.86 794,712.63 0.00
===================================================================================
Totals 0.00 709,370,999.99 21,036,044.00 0.00
===================================================================================
</TABLE>
All distributions required by the Pooling and Servicing Agreement have been
calculated by the Certificate Administrator on behalf of the Trustee
Edward M. Frere, Jr.
Vice President, Norwest Bank Minnesota, N.A.
<PAGE> 2
<TABLE>
<S> <C> <C>
Sequoia Mortgage Trust SMT Contact: Customer Service
Mortgage Pass-Through Certificates Series 1997-2 NorWest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 31-Dec-1997 7485 New Horizon Way
Distribution Date: 26-Jan-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
Principal Distribution Statement
Senior Certificates
c
<TABLE>
<CAPTION>
=========================================================================================================================
Beginning Scheduled Unscheduled
Original Face Certificate Principal Principal Realized
Class Amount Balance Distribution Distribution Accretion Loss(1)
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
A-1 592,560,000.00 568,087,868.66 0.00 12,985,066.37 0.00 0.00
A-2 156,600,000.00 150,132,577.68 0.00 3,431,654.84 0.00 0.00
OC 7,567,489.63 7,567,274.86 0.00 0.00 0.00 0.00
=========================================================================================================================
Class A 756,727,489.63 725,787,721.20 0.00 16,416,721.21 0.00 0.00
=========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
====================================================================================
Total Ending Ending Total
Principal Certificate Certificate Principal
Class Reduction Balance Percentage Distribution
====================================================================================
<S> <C> <C> <C> <C>
A-1 12,985,066.37 555,102,802.29 0.93678750 12,985,066.37
A-2 3,431,654.84 146,700,922.84 0.93678750 3,431,654.84
OC 0.00 7,567,274.86 0.99997162 0.00
====================================================================================
Class A 16,416,721.21 709,370,999.99 0.93741936 16,416,721.21
====================================================================================
</TABLE>
(1) Amount Does Not Include Excess Special Hazard, Bankruptcy, Or Fraud Losses
Unless Otherwise Disclosed. Please Refer To The Prospectus Supplement For A
Full Description.
<PAGE> 3
<TABLE>
<S> <C> <C>
Sequoia Mortgage Trust SMT Contact: Customer Service
Mortgage Pass-Through Certificates Series 1997-2 NorWest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 31-Dec-1997 7485 New Horizon Way
Distribution Date: 26-Jan-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
Principal Distribution Factors Statement
Senior Certificate Factors
<TABLE>
<CAPTION>
===========================================================================================================================
Beginning Scheduled Unscheduled
Original Face Certificate Principal Principal Realized
Class(3) Amount Balance Distribution Distribution Accretion Loss(4)
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
A-1 592,560,000.00 958.70100692 0.00000000 21.91350474 0.00000000 0.00000000
A-2 156,600,000.00 958.70100690 0.00000000 21.91350473 0.00000000 0.00000000
OC 7,567,489.63 999.97161939 0.00000000 0.00000000 0.00000000 0.00000000
===========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
==================================================================================
Total Ending Ending Total
Principal Certificate Certificate Principal
Class(3) Reduction Balance Percentage Distribution
==================================================================================
<S> <C> <C> <C> <C>
A-1 21.91350474 936.78750218 0.93678750 21.91350474
A-2 21.91350473 936.78750217 0.93678750 21.91350473
OC 0.00000000 999.97161939 0.99997162 0.00000000
==================================================================================
</TABLE>
(3) All Classes Are Per $1,000 Denomination.
(4) Amount Does Not Include Excess Special Hazard, Bankruptcy, Or Fraud Losses
Unless Otherwise Disclosed. Please Refer To The Prospectus Supplement For A
Full Description.
<PAGE> 4
<TABLE>
<S> <C> <C>
Sequoia Mortgage Trust SMT Contact: Customer Service
Mortgage Pass-Through Certificates Series 1997-2 NorWest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 31-Dec-1997 7485 New Horizon Way
Distribution Date: 26-Jan-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
Interest Distribution Statement
Senior Certificates
<TABLE>
<CAPTION>
=================================================================================================================================
Beginning Payment of Non-Supported
Current Certificate/ Current Previously Current Supported
Original Face Certificate Notional Accrued Unpaid Interest Interest Interest
Class Amount Rate Balance Interest Shortfall Shortfall Shortfall
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 592,560,000.00 6.50250% 568,087,868.66 3,078,326.14 0.00 0.00 0.00
A-2 156,600,000.00 5.96500% 150,132,577.68 746,284.02 0.00 0.00 0.00
OC 7,567,489.63 0.00000% 7,567,274.86 0.00 0.00 0.00 0.00
=================================================================================================================================
Total Class A Interest Distribution 3,824,610.16 0.00 0.00 0.00
=================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
=======================================================================
Remaining
Cumulative Ending
Unpaid Certificate/
Realized Total Interest Interest Notional
Class Loss(7) Distribution Shortfall Balance
=======================================================================
<S> <C> <C> <C> <C>
A-1 0.00 3,078,326.14 0.00 555,102,802.29
A-2 0.00 746,284.02 0.00 146,700,922.84
OC 0.00 794,712.63 0.00 7,567,274.86
=======================================================================
0.00 4,619,322.79 0.00
=======================================================================
</TABLE>
(7) Amount Does Not Include Excess Special Hazard, Bankruptcy, Or Fraud Losses
Unless Otherwise Disclosed. Please Refer To The Prospectus Supplement For A
Full Description.
<PAGE> 5
<TABLE>
<S> <C> <C>
Sequoia Mortgage Trust SMT Contact: Customer Service
Mortgage Pass-Through Certificates Series 1997-2 NorWest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 31-Dec-1997 7485 New Horizon Way
Distribution Date: 26-Jan-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
Interest Distribution Factors Statement
Senior Certificates Factors
<TABLE>
<CAPTION>
================================================================================================================================
Payment of
Beginning Previously Non-
Current Certificate/ Current Unpaid Current Supported
Original Face Certificate Notional Accrued Interest Interest Interest
Class(9) Amount Rate Balance Interest Shortfall Shortfall Shortfall
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 592,560,000.00 6.50250% 958.70100692 5.19496108 0.00000000 0.00000000 0.00000000
A-2 156,600,000.00 5.96500% 958.70100690 4.76554291 0.00000000 0.00000000 0.00000000
OC 7,567,489.63 0.00000% 999.97161939 0.00000000 0.00000000 0.00000000 0.00000000
================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
==========================================================================
Remaining
Cumulative Ending
Unpaid Certificate/
Realized Total Interest Interest Notional
Class(9) Losses(10) Distribution Shortfall Balance
==========================================================================
<S> <C> <C> <C> <C>
A-1 0.00000000 5.19496108 0.00000000 936.78750218
A-2 0.00000000 4.76554291 0.00000000 936.78750217
OC 0.00000000 105.01667909 0.00000000 999.97161939
==========================================================================
</TABLE>
(9) All Classes Are $1,000 Denomination.
(10) Amount Does Not Include Excess Special Hazard, Bankruptcy, Or Fraud Losses
Unless Otherwise Disclosed. Please Refer To The Prospectus Supplement For A
Full Description.
<PAGE> 6
<TABLE>
<S> <C> <C>
Sequoia Mortgage Trust SMT Contact: Customer Service
Mortgage Pass-Through Certificates Series 1997-2 NorWest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 27-Feb-1998 7485 New Horizon Way
Distribution Date: 25-Mar-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
================================================================================
CERTIFICATE ACCOUNT
<TABLE>
<CAPTION>
<S> <C>
Beginning Balance 0.00
Deposits
Payments of Interest and Principal 21,242,116.27
Liquidations, Insurance Proceeds, Reserve Funds 0.00
Proceeds from Repurchased Loans 0.00
Other Amounts (Servicer Advances) 0.00
Realized Losses 0.00
--------------
Total Deposits 21,242,116.27
Withdrawals
Reimbursement for Servicer Advances 0.00
Payment of Service Fee 206,072.31
Payment of Interest and Principal 21,036,043.96
-------------
Total Withdrawals (Pool Distribution Amount) 21,242,116.27
0.00
Ending Balance =============
</TABLE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
SERVICER ADVANCES
<S> <C>
Beginning Balance 0.00
Current Period Advances by Servicer 0.00
Reimbursement of Advances 0.00
Ending Cumulative Advances 0.00
</TABLE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
PREPAYMENT/CURTAILMENT INTEREST SHORTFALL
<S> <C>
Total Prepayment/Curtailment Interest Shortfall 0.00
Servicing Fee Support 0.00
-----------
Non-Supported Prepayment/Curtailment Interest Shortfall 0.00
===========
</TABLE>
================================================================================
================================================================================
<TABLE>
<CAPTION>
SERVICING FEES
<S> <C>
Gross Servicing Fee 151,205.78
Pool Insurance Fee 53,866.53
Spread 1 Fee 1,000.00
Supported Prepayment/Curtailment Interest Shortfall 0.00
-----------
Net Servicing Fee 206,072.31
===========
</TABLE>
================================================================================
<PAGE> 7
<TABLE>
<S> <C> <C>
Sequoia Mortgage Trust SMT Contact: Customer Service
Mortgage Pass-Through Certificates Series 1997-2 NorWest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 27-Feb-1998 7485 New Horizon Way
Distribution Date: 25-Mar-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
================================================================================
DELINQUENCY STATUS
<TABLE>
<CAPTION>
Percentage Delinquent Based On
Current Unpaid Principal
Number Of Balance Number Unpaid
Loans of Loans Balance
<S> <C> <C> <C> <C>
30 Days 38 14,513,538.94 1.74% 2.05%
60 Days 1 128,250.00 0.05% 0.02%
90+ Days 1 268,699.40 0.05% 0.04%
Foreclosure 0 0.00 0.00% 0.00%
REO 0 0.00 0.00% 0.00%
Totals 40 14,910,488.34 1.83% 2.10%
</TABLE>
Current Period Realized Loss - Includes Interest Shortfall 0.00
Cumulative Realized Losses - Includes Interest Shortfall 0.00
Principal Balance of Contaminated Properties 0.00
================================================================================
<PAGE> 8
<TABLE>
<S> <C> <C>
Sequoia Mortgage Trust SMT Contact: Customer Service
Mortgage Pass-Through Certificates Series 1997-2 NorWest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 31-Dec-1997 7485 New Horizon Way
Distribution Date: 26-Jan-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
================================================================================
COLLATERAL STATEMENT
<TABLE>
<CAPTION>
Collateral Description Mixed ARM's
<S> <C>
Weighted Average Gross Coupon 7.916657%
Weighted Average Net Coupon 7.410121%
Weighted Average Maturity (Stepdown Calculation) 291 Months
Beginning Scheduled Collateral Loan Count 2,215
Number of Loans Paid in Full 32
Ending Scheduled Collateral Loan Count 2,183
Beginning Scheduled Collateral Balance 725,787,721.24
Ending Scheduled Collateral Balance 709,371,000.03
Specified O/C Account 7,567,274.90
Serious Delinquency 0.03645%
Monthly P&I Constant 4,613,174.02
</TABLE>
================================================================================
