<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
December 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
------------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
Delaware 333-22681-2 91-1771827
(State or Other (Commission (I.R.S. Employer
Jurisdiction of Incorporation) File Number) Identification No.)
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:
<TABLE>
<CAPTION>
Item 7(c). Exhibits
--------
<S> <C>
10.1 Monthly Payment Date Statement distributed to
Bondholders, dated December 25, 1997.
</TABLE>
<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: January 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> <C>
10.1 Monthly Payment Date Statement distributed to
Bondholders, dated December 25, 1997..................................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: 28-Nov-1997 7485 New Horizon Way
Distribution Date: 26-Dec-1997 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301)846-8152
</TABLE>
Certificateholder Distribution Summary
<TABLE>
<CAPTION>
======================= ====================== ====================== ==================== ========================
Certificate Class Certificate Beginning Certificate
Class CUSIP Description Pass-Through Rate Balance
======================= ====================== ====================== ==================== ========================
<S> <C> <C> <C> <C>
A-1 81743MAA1 SEQ 6.50000% 586,811,853.43
A-2 81743MAB9 SEQ 6.02750% 155,080,896.87
OC SMTCRT002 R 0.00000% 7,567,274.90
======================= ====================== ====================== ==================== ========================
Totals 749,460,025.20
============================================================================================= ========================
</TABLE>
<TABLE>
<CAPTION>
======================= ====================== ====================== ==================== ========================
Principal Current Realized Ending Certificate
Class Interest Distribution Distribution Loss Balance
======================= ====================== ====================== ==================== ========================
<S> <C> <C> <C> <C>
A-1 3,178,564.21 7,327,519.01 0.00 579,484,334.42
A-2 778,958.42 1,936,495.00 0.00 153,144,401.87
OC 801,162.74 0.00 0.00 7,567,274.90
======================= ====================== ====================== ==================== ========================
Totals 4,758,685.37 9,264,014.01 0.00 740,196,011.19
=============================================== ====================== ==================== ========================
</TABLE>
<TABLE>
<CAPTION>
======================= ====================== ======================
Cumulative Realized
Class Total Distribution Losses
======================= ====================== ======================
<S> <C> <C>
A-1 10,506,083.22 0.00
A-2 2,715,453.42 0.00
OC 801,162.74 0.00
======================= ====================== ======================
Totals 14,022,699.38 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.
24-Dec-1997 10.47AM
<PAGE> 2
Principal Distribution Statement
Senior Certificates
<TABLE>
<CAPTION>
===================== ======================== ======================== ==================== ======================
Scheduled Unscheduled
Beginning Certificate Principal Principal
Class Original Face Amount Balance Distribution Distribution
===================== ======================== ======================== ==================== ======================
<S> <C> <C> <C> <C>
A-1 592,560,000.00 586,811,853.43 0.00 7,327,519.01
A-2 156,600,000.00 155,080,896.87 0.00 1,936,495.00
OC 7,567,489.63 7,567,274.90 0.00 0.00
===================== ======================== ======================== ==================== ======================
Class A 756,727,489.63 749,460,025.20 0.00 9,264,014.01
===================== ======================== ======================== ==================== ======================
</TABLE>
<TABLE>
<CAPTION>
===================== ====================== ====================== ====================== ========================
Total Principal Ending Certificate
Class Accretion Realized Loss(1) Reduction Balance
===================== ====================== ====================== ====================== ========================
<S> <C> <C> <C> <C>
A-1 0.00 0.00 7,327,519.01 579,484,334.42
A-2 0.00 0.00 1,936,495.00 153,144,401.87
OC 0.00 0.00 0.00 7,567,274.90
===================== ====================== ====================== ====================== ========================
Class A 0.00 0.00 9,264,014.01 740,196,011.19
===================== ====================== ====================== ====================== ========================
</TABLE>
<TABLE>
<CAPTION>
===================== ==================== ======================
Ending Certificate Total Principal
Class Percentage Distribution
===================== ==================== ======================
<S> <C> <C>
A-1 0.97793360 7,327,519.01
A-2 0.97793360 1,936,495.00
OC 0.99997162 0.00
===================== ==================== ======================
Class A 0.97815399 9,264,014.01
===================== ==================== ======================
</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
Principal Distribution Factors Statement
Senior Certificate Factors
<TABLE>
<CAPTION>
===================== ======================== ======================== ==================== ======================
Scheduled Unscheduled
Beginning Certificate Principal Principal
Class(3) Original Face Amount Balance Distribution Distribution
===================== ======================== ======================== ==================== ======================
<S> <C> <C> <C> <C>
A-1 592,560,000.00 990.29946913 0.00000000 12.36586845
A-2 156,600,000.00 990.29946916 0.00000000 12.36586845
OC 7,567,489.63 999.97162467 0.00000000 0.00000000
===================== ======================== ======================== ==================== ======================
</TABLE>
<TABLE>
<CAPTION>
===================== ====================== ====================== ====================== ========================
Total Principal Ending Certificate
Class(3) Accretion Realized Loss(4) Reduction Balance
===================== ====================== ====================== ====================== ========================
<S> <C> <C> <C> <C>
A-1 0.00000000 0.00000000 12.36586845 977.93360068
A-2 0.00000000 0.00000000 12.36586845 977.93360070
OC 0.00000000 0.00000000 0.00000000 999.97162467
===================== ====================== ====================== ====================== ========================
</TABLE>
<TABLE>
<CAPTION>
===================== ==================== ======================
Ending Certificate Total Principal
Class(3) Percentage Distribution
===================== ==================== ======================
<S> <C> <C>
A-1 0.97793360 12.36586845
A-2 0.97793360 12.36586845
OC 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
Interest Distribution Statement
Senior Certificates
<TABLE>
<CAPTION>
================ ======================= ==================== ======================= =======================
Current Beginning Certificate/ Current Accrued
Class Original Face Amount Certificate Rate Notional Balance Interest
================ ======================= ==================== ======================= =======================
<S> <C> <C> <C> <C>
A-1 592,560,000.00 6.50000% 586,811,853.43 3,178,564.21
A-2 156,600,000.00 6.02750% 155,080,896.87 778,958,42
OC 7,567,489.63 0.00000% 7,567,274.90 0.00
======================================================================================== =======================
Total Class A Interest Distribution 3,957,522.63
======================================================================================== =======================
</TABLE>
<TABLE>
<CAPTION>
================ ======================= ================ ==================== ================ =======================
Payment of Previously Current
Unpaid Interest Interest Non-Supported Realized Total Interest
Class Shortfall Shortfall Interest Shortfall Loss(7) Distribution
================ ======================= ================ ==================== ================ =======================
<S> <C> <C> <C> <C> <C>
A-1 0.00 0.00 0.00 0.00 3,178,564.21
A-2 0.00 0.00 0.00 0.00 778,958.42
OC 0.00 0.00 0.00 0.00 801,162.74
========================================= ================ ==================== ================ =======================
Total Class A
Interest Distribution 0.00 0.00 0.00 0.00 4,758,685.37
========================================= ================ ==================== ================ =======================
</TABLE>
<TABLE>
<CAPTION>
================ ================== =======================
Remaining
Cumulative
Unpaid Interest Ending Certificate/
Class Shortfall Notional Balance
================ ================== =======================
<S> <C> <C>
A-1 0.00 579,484,334.42
A-2 0.00 153,144,401.87
OC 0.00 7,567,274.90
==================================== =======================
Total Class A
Interest Distribution 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
Interest Distribution Factors Statement
Senior Certificates Factors
<TABLE>
<CAPTION>
================ ======================= ==================== ======================= =======================
Current Beginning Certificate/ Current Accrued
Class(9) Original Face Amount Certificate Rate Notional Balance Interest
================ ======================= ==================== ======================= =======================
<S> <C> <C> <C> <C>
A-1 592,560,000.00 6.50000% 990.29946913 5.36412213
A-2 156,600,000.00 6.02750% 990.29946916 4.97419170
OC 7,567,489.63 0.00000% 999.97162467 0.00000000
================ ======================= ==================== ======================= =======================
</TABLE>
<TABLE>
<CAPTION>
================ ===================== ================== ================== ================== =======================
Payment of Non-Supported
Previously Unpaid Current Interest Interest Realized Total Interest
Class(9) Interest Shortfall Shortfall Shortfall Losses(10) Distribution
================ ===================== ================== ================== ================== =======================
<S> <C> <C> <C> <C> <C>
A-1 0.00000000 0.00000000 0.00000000 0.00000000 5.36412213
A-2 0.00000000 0.00000000 0.00000000 0.00000000 4.97419170
OC 0.00000000 0.00000000 0.00000000 0.00000000 105.86902383
================ ===================== ================== ================== ================== =======================
</TABLE>
<TABLE>
<CAPTION>
================ ================== =======================
Remaining
Cumulative
Unpaid Interest Ending Certificate/
Class(9) Shortfall Notional Balance
================ ================== =======================
<S> <C> <C>
A-1 0.00000000 977.93360068
A-2 0.00000000 977.93360070
OC 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: 28-Nov-1997 7485 New Horizon Way
Distribution Date: 26-Dec-1997 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301)846-8152
</TABLE>
<TABLE>
<CAPTION>
============================================================================================================
CERTIFICATE ACCOUNT
<S> <C>
Beginning Balance 0.00
Deposits
Payments of Interest and Principal 14,235,478.85
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 14,235,478.85
Withdrawals
Reimbursement for Servicer Advances 0.00
Payment of Service Fee 212,779.47
Payment of Interest and Principal 14,022,699.38
-------------
Total Withdrawals (Pool Distribution Amount) 14,235,478.85
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 156,137.51
Pool Insurance Fee 55,641.96
Spread 1 Fee 1,000.00
Supported Prepayment/Curtailment Interest Shortfall 0.00
----------
Net Servicing Fee 212,779.47
==========
===============================================================================================================
</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: 28-Nov-1997 7485 New Horizon Way
Distribution Date: 26-Dec-1997 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301)846-8152
</TABLE>
<TABLE>
<CAPTION>
===========================================================================================
DELINQUENCY STATUS
Percentage Delinquent Based On
Current Unpaid Principal Number Unpaid
Number Of Loans Balance of Loans Balance
<S> <C> <C> <C> <C>
30 Days 20 7,975,902.31 0.89% 1.08%
60 Days 2 1,069,699.40 0.09% 0.14%
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 22 9,045,601.71 0.97% 1.22%
Current Period Realized Loss - Includes Interest Shortfall 0.00
Cumulative Realized Losses - Includes Interest Shortfall 0.00
Principal Balance of Contaminated Properties 0.00
===========================================================================================
</TABLE>
<PAGE> 8
================================================================================
COLLATERAL STATEMENT
<TABLE>
<S> <C>
Collateral Description Mixed ARM's
Weighted Average Gross Coupon 7.660168%
Weighted Average Net Coupon 7.409049%
Weighted Average Maturity (Stepdown Calculation) 294 Months
Beginning Scheduled Collateral Loan Count 2,274
Number of Loans Paid in Full 17
Ending Scheduled Collateral Loan Count 2,257
Beginning Scheduled Collateral Balance 749,460,025.17
Ending Scheduled Collateral Balance 740,196,011.19
Specified O/C Account 7,567,274.90
Serious Delinquency 0.00
Monthly P&I Constant 4,760,024.36
</TABLE>
================================================================================
