<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
January 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)
Delaware 333-22681-2 91-1771827
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(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
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
--------------
(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 January 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: February 4, 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 January 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: 31-Dec-1997 7485 New Horizon Way
Distribution Date: 26-Jan-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
Certificateholder Distribution Summary
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Certificate
Certificate Pass- Beginning Current Ending Cumulative
Class Through Certificate Interest Principal Realized Certificate Total Realized
Class CUSIP Description Rate Balance Distribution Distribution Loss Balance Distribution Losses
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 81743MAA1 SEQ 6.50330% 579,484,334.42 3,140,467.06 6,394,294.15 0.00 573,090,040.27 9,534,761.21 0.00
A-2 81743MAB9 SEQ 5.99625% 153,144,401.87 765,243.43 1,689,865.10 0.00 151,454,536.77 2,455,108.53 0.00
OC SMTCRT002 R 0.00000% 7,567,274.90 779,805.07 0.00 0.00 7,567,274.90 779,805.07 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Totals 740,196,011.19 4,685,515.56 8,084,159.25 0.00 732,111,851.94 12,769,674.81 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.
26-Jan-1998 12:18PM
<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
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Beginning Scheduled Unscheduled
Original Certificate Principal Principal Realized
Class Face Amount Balance Distribution Distribution Accretion Loss(1)
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
A-1 592,560,000.00 579,484,334.42 0.00 6,394,294.15 0.00 0.00
A-2 156,600,000.00 153,144,401.87 0.00 1,689,865,10 0.00 0.00
OC 7,567,489.63 7,567,274.90 0.00 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------
Class A 756,727,489.63 740,196,011.19 0.00 8,084,159.25 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 6,394,294.15 573,090,040.27 0.96714264 6,394,294.15
A-2 1,689,865.10 151,454,536.77 0.96714264 1,689,865.10
OC 0.00 7,567,274.90 0.99997162 0.00
- -----------------------------------------------------------------------------------
Class A 8,084,159.25 732,111,851.94 0.96747094 8,084,159.25
- -----------------------------------------------------------------------------------
</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 Certificate Principal Principal Realized
Class(3) Face Amount Balance Distribution Distribution Accretion Loss(4)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
A-1 592,560,000.00 977.93360068 0.00000000 10.79096488 0.00000000 0.00000000
A-2 156,600,000.00 977.93360070 0.00000000 10.79096488 0.00000000 0.00000000
OC 7,567,489.63 999.97162467 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 10.79096488 967.14263580 0.96714264 10.79096488
A-2 10.79096488 967.14263582 0.96714264 10.79096488
OC 0.00000000 999.97162467 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>
- --------------------------------------------------------------------------------------------------
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 6.50330% 579,484,334.42 3,140,467.06 0.00 0.00
A-2 156,600,000.00 5.99625% 153,144,401.87 765,243.43 0.00 0.00
OC 7,567,489.63 0.00000% 7,567,274.90 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------
Total Class A Interest Distribution 3,905,710.49 0.00 0.00
- --------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
Remaining
Non- Cumulative Ending
Supported Total Unpaid Certificate/
Interest Realized Interest Interest Notional
Class Shortfall Loss(7) Distribution Shortfall Balance
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
A-1 0.00 0.00 3,140,467.06 0.00 573,090,040.27
A-2 0.00 0.00 765,243.43 0.00 151,454,536.77
OC 0.00 0.00 779,805.07 0.00 7,567,274.90
- ----------------------------------------------------------------------------------------------------------
Total Class A Interest Distribution 0.00 0.00 4,685,515.56 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
Original Current Certificate/ Current Unpaid Current
Face Certificate Notional Accrued Interest Interest
Class(9) Amount Rate Balance Interest Shortfall Shortfall
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
A-1 592,560,000.00 6.50330% 977.93360068 5.29982965 0.00000000 0.00000000
A-2 156,600,000.00 5.99625% 977.93360070 4.88661194 0.00000000 0.00000000
OC 7,567,489.63 0.00000% 999.97162467 0.00000000 0.00000000 0.00000000
- --------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
Remaining
Non- Cumulative Ending
Supported Total Unpaid Certificate/
Interest Realized Interest Interest Notional
Class(9) Shortfall Losses(10) Distribution Shortfall Balance
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
A-1 0.00000000 0.00000000 5.29982965 0.00000000 967.14263580
A-2 0.00000000 0.00000000 4.88661194 0.00000000 967.14263582
OC 0.00000000 0.00000000 103.04673123 0.00000000 999.97162467
- ----------------------------------------------------------------------------------------
</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: 31-Dec-1997 7485 New Horizon Way
Distribution Date: 26-Jan-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
- -----------------------------------------------------------------
CERTIFICATE ACCOUNT
Beginning Balance 0.00
Deposits
Payments of Interest and Principal 12,979,829.47
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 12,979,829.47
Withdrawals
Reimbursement for Servicer Advances 0.00
Payment of Service Fee 210,154.66
Payment of Interest and Principal 12,769,674.81
-------------
Total Withdrawals (Pool Distribution Amount) 12,979,829.47
0.00
=============
Ending Balance
- -----------------------------------------------------------------
- -----------------------------------------------------------------
SERVICER ADVANCES
Beginning Balance 0.00
Current Period Advances by Servicer 0.00
Reimbursement of Advances 0.00
Ending Cumulative Advances 0.00
- -----------------------------------------------------------------
- -----------------------------------------------------------------
PREPAYMENT/CURTAILMENT INTEREST SHORTFALL
Total Prepayment/Curtailment Interest Shortfall 0.00
Servicing Fee Support 0.00
-------
Non-Supported Prepayment/Curtailment Interest Shortfall 0.00
=======
- ------------------------------------------------------------------
- ------------------------------------------------------------------
SERVICING FEES
Gross Servicing Fee 154,207.50
Pool Insurance Fee 54,947.16
Spread 1 Fee 1,000.00
Supported Prepayment/Curtailment Interest Shortfall 0.00
----------
Net Servicing Fee 210,154.66
==========
- ------------------------------------------------------------------
<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: 31-Dec-1997 7485 New Horizon Way
Distribution Date: 26-Jan-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
- --------------------------------------------------------------------------------
DELINQUENCY STATUS
<TABLE>
<CAPTION>
Percentage Delinquent Based On
Current Unpaid
Number Principal Number Unpaid
Of Loans Balance of Loans Balance
<S> <C> <C> <C> <C>
30 Days 16 4,628,155.57 0.72% 0.63%
60 Days 1 60,000.00 0.04% 0.01%
90+ Days 1 268,699.40 0.04% 0.04%
Foreclosure 0 0.00 0.00% 0.00%
REO 0 0.00 0.00% 0.00%
Totals 18 4,956,854.97 0.80% 0.68%
</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
Collateral Description Mixed ARM's
Weighted Average Gross Coupon 7.649692%
Weighted Average Net Coupon 7.399692%
Weighted Average Maturity (Stepdown Calculation) 293 Months
Beginning Scheduled Collateral Loan Count 2,257
Number of Loans Paid in Full 20
Ending Scheduled Collateral Loan Count 2,237
Beginning Scheduled Collateral Balance 740,196,011.19
Ending Scheduled Collateral Balance 732,111,851.94
Specified O/C Account 7,567,274.90
Serious Delinquency 0.00
Monthly P&I Constant 4,706,601.29
- --------------------------------------------------------------------------------
