<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 4, 1998
Date of Report (Date of Earliest Event Reported)
Sequoia Mortgage Funding Corporation (as Sponsor of Sequoia Mortgage Trust 1,
the Issuer of Collateralized Mortgage Bonds under an Indenture dated as of
June 1, 1997)
SEQUOIA MORTGAGE FUNDING CORPORATION
------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
<TABLE>
<S> <C> <C>
Delaware 333-22681-1 91-1771827
(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 1 (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 4, 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: March 10, 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 4, 1998............................................5
</TABLE>
<PAGE> 1
EXHIBIT 10.1
<TABLE>
<S> <C> <C>
Sequoia Mortgage Trust SMT Contact:Customer Service
Mortgage Pass-Through Certificates Series 1997-1 NorWest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 28-Feb-1998 7485 New Horizon Way
Distribution Date: 04-Mar-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
Certificateholder Distribution Summary
<TABLE>
<CAPTION>
Certificate
Certificate Pass- Beginning
Class Through Certificate Interest
Class CUSIP Description Rate Balance Distribution
- ---------- ----------- -------------- ------------ --------------- --------------
<S> <C> <C> <C> <C> <C>
A-1 817435AA8 SEQ 5.99719% 247,855,573.88 1,238,697.47
A-2 817435AB6 SEQ 5.99689% 148,262,478.13 740,927.53
OC SMTINVCRT R 0.00000% 8,702,428.65 661,719.90
- ---------- ----------- -------------- ------------ --------------- --------------
Totals 404,820,480.66 2,641,344.90
- ---------- ----------- -------------- ------------ --------------- --------------
</TABLE>
<TABLE>
<CAPTION>
Current Ending Cumulative
Principal Realized Certificate Total Realized
Class Distribution Loss Balance Distribution Losses
- ---------- ------------- ------------- --------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
A-1 11,821,801.48 0.00 236,033,772.40 13,060,498,95 0.00
A-2 7,071,576.22 0.00 141,190,901.91 7,812,503.75 0.00
OC 0.00 0.00 8,702,428.65 661,719.90 0.00
- ---------- ------------- ------------- --------------- ------------- --------------
Totals 18,893,377.70 0.00 385,927,102.96 21,534,722.60 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.
02-Mar-1998 11:33AM
<PAGE> 2
<TABLE>
<S> <C> <C>
Sequoia Mortgage Trust SMT Contact:Customer Service
Mortgage Pass-Through Certificates Series 1997-1 NorWest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 31-Dec-1997 7485 New Horizon Way
Distribution Date: 04-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-1 334,347,000.00 247,855,573.88 0.00 11,821,801.48 0.00 0.00
A-2 200,000,000.00 148,262,478.13 0.00 7,071,576.22 0.00 0.00
OC 8,703,415.20 8,702,428.65 0.00 0.00 0.00 0.00
- -------------- -------------- --------------- ------------- ------------- -------------- -------------
Class A 543,050,415.20 404,820,480.66 0.00 18,893,377.70 0.00 0.00
- -------------- -------------- --------------- ------------- ------------- -------------- -------------
</TABLE>
<TABLE>
<CAPTION>
Ending Ending
Total Principal Certificate Certificate Total Principal
Class Reduction Balance Percentage Distribution
- --------------- -------------- --------------- ------------ --------------
<S> <C> <C> <C> <C>
A-1 11,821,801.48 236,033,772.40 0.70595451 11,821,801,48
A-2 7,071,576.22 141,190,901.91 0.70595451 7,071,576.22
OC 0.00 8,702,428.65 0.99988665 0.00
- --------------- -------------- --------------- ------------ --------------
Class A 18,893,377.70 385,927,102.96 0.71066533 18,893,377.70
- --------------- -------------- --------------- ------------ --------------
</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 1997-1 NorWest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 31-Dec-1997 7485 New Horizon Way
Distribution Date: 04-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-1 334,347,000.00 741.31239066 0.00000000 35.35788112 0.00000000 0.00000000
A-2 200,000,000.00 741.31239065 0.00000000 35.35788110 0.00000000 0.00000000
OC 8,703,415.20 999.88664794 0.00000000 0.00000000 0.00000000 0.00000000
- ------------ -------------- ------------ ------------- ------------ ------------- ------------
</TABLE>
<TABLE>
<CAPTION>
Ending Ending
Total Principal Certificate Certificate Total Principal
Class(3) Reduction Balance Percentage Distribution
- ------------ ----------- -------------- ------------ ---------------
<S> <C> <C> <C> <C>
A-1 35.35788112 705.95450954 0.70595451 35.35788112
A-2 35.35788110 705.95450955 0.70595451 35.35788110
OC 0.00000000 999.88664794 0.99988665 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 1997-1 NorWest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 31-Dec-1997 7485 New Horizon Way
Distribution Date: 04-Jan-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
Interest Distribution Statement
Senior Certificates
<TABLE>
<CAPTION>
Beginning Payment of
Current Certificate/ Current Previously Current
Original Face Certificate Notional Accrued Unpaid Interest Interest
Class Amount Rate Balance Interest Shortfall Shortfall
- ---------- --------------- ------------ -------------- --------------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
A-1 334,347,000.00 5.99719% 247,855,573.88 1,238,697.47 0.00 0.00
A-2 200,000,000.00 5.99689% 148,262,478.13 740,927.53 0.00 0.00
OC 8,703,415.20 0.00000% 8,702,428.65 0.00 0.00 0.00
- ------------------------------------------------------ --------------- -------------- ----------
Total Class A Interest Distribution 1,979,625.00 0.00 0.00
- ------------------------------------------------------ --------------- -------------- ----------
</TABLE>
<TABLE>
<CAPTION>
Remaining
Non- Cumulative Ending
Supported Unpaid Certificate/
Interest Realized Total Interest Interest Notional
Class Shortfall Loss(7) Distribution Shortfall Balance
- ---------- ----------- ---------- -------------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
A-1 0.00 0.00 1,238,697.47 0.00 236,033,772.40
A-2 0.00 0.00 740,927.53 0.00 141,190,901.91
OC 0.00 0.00 661,719.90 0.00 8,702,428.65
- --------------------------------------- ------------ ---------- -------------- ----------- ---------------
Total Class A Interest Distribution 0.00 0.00 2,641,344.90 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 1997-1 NorWest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 31-Dec-1997 7485 New Horizon Way
Distribution Date: 04-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
Current Certificate/ Current Unpaid Current
Original Face Certificate Notional Accrued Interest Interest
Class(9) Amount Rate Balance Interest Shortfall Shortfall
- ---------- --------------- ------------ -------------- --------------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
A-1 334,347,000.00 5.99719% 741.31239066 3.70482603 0.00000000 0.00000000
A-2 200,000,000.00 5.99689% 741.31239065 3.70463765 0.00000000 0.00000000
OC 8,703,415.20 0.00000% 999.88664794 0.00000000 0.00000000 0.00000000
- ---------- --------------- ------------ -------------- --------------- ------------- -----------
</TABLE>
<TABLE>
<CAPTION>
Remaining
Non- Cumulative Ending
Supported Unpaid Certificate/
Interest Realized Total Interest Interest Notional
Class(9) Shortfall Losses(10) Distribution Shortfall Balance
- ---------- ----------- ----------- -------------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
A-1 0.00000000 0.00000000 3.70482603 0.0000000 705.95450954
A-2 0.00000000 0.00000000 3.70463765 0.0000000 705.95450955
OC 0.00000000 0.00000000 76.02991295 0.0000000 999.88664794
- ---------- ----------- ----------- -------------- ----------- ---------------
</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 1997-1 NorWest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 28-Feb-1998 7485 New Horizon Way
Distribution Date: 04-Mar-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
CERTIFICATE ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 0.00
Deposits
Payments of Interest and Principal 21,685,756.65
Liquidations, Insurance Proceeds, Reserve 0.00
Funds
Proceeds from Repurchased Loans 0.00
Other Amounts (Servicer Advances) 0.00
Realized Losses 0.00
-------------
Total Deposits 21,685,756.65
Withdrawals
Reimbursement for Servicer Advances 0.00
Payment of Service Fee 128,193.15
Payment of Interest and Principal 21,557,563.50
-------------
Total Withdrawals (Pool Distribution Amount) 21,685,756.65
0.00
=============
Ending Balance
</TABLE>
SERVICER ADVANCES
<TABLE>
<S> <C>
Beginning Balance 0.00
Current Period Advances by Servicer 0.00
Reimbursement of Advances 0.00
Ending Cumulative Advances 0.00
</TABLE>
PREPAYMENT/CURTAILMENT INTEREST SHORTFALL
<TABLE>
<S> <C>
Total Prepayment/Curtailment Interest Shortfall 0.00
Servicing Fee Support 0.00
----
Non-Supported Prepayment/Curtailment Interest Shortfall 0.00
====
</TABLE>
SERVICING FEES
<TABLE>
<S> <C>
Gross Servicing Fee 128,193.15
Pool Insurance Fee 21,840.90
Spread 1 Fee 1,000.00
Supported Prepayment/Curtailment Interest Shortfall 0.00
----------
Net Servicing Fee 128,193.15
==========
</TABLE>
<PAGE> 7
<TABLE>
<S> <C> <C>
Sequoia Mortgage Trust SMT Contact:Customer Service
Mortgage Pass-Through Certificates Series 1997-1 NorWest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 31-Dec-1997 7485 New Horizon Way
Distribution Date: 04-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 Of Principal Number Unpaid
Loans Balance of Loans Balance
<S> <C> <C> <C> <C>
30 Days 30 6,107,108.17 1.83% 1.58%
60 Days 5 771,173.74 0.31% 0.20%
90+ Days 8 1,972,517.35 0.49% 0.51%
Foreclosure 1 275,432.16 0.06% 0.07%
REO 0 0.00 0.00% 0.00%
Totals 44 9,126,231.42 2.69% 2.36%
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
<TABLE>
<S> <C> <C>
Sequoia Mortgage Trust SMT Contact:Customer Service
Mortgage Pass-Through Certificates Series 1997-1 NorWest Bank Minnesota, N.A.
Certificateholder Distribution Summary Securities Administration Services
Record Date: 31-Dec-1997 7485 New Horizon Way
Distribution Date: 04-Jan-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
COLLATERAL STATEMENT
<TABLE>
<CAPTION>
Collateral Description Mixed Fixed
<S> <C>
Weighted Average Gross Coupon 8.312552%
Weighted Average Net Coupon 7.940044%
Weighted Average Maturity (Stepdown Calculation) 314 Months
Beginning Scheduled Collateral Loan Count 1,699
Number of Loans Paid in Full 63
Ending Scheduled Collateral Loan Count 1,636
Beginning Scheduled Collateral Balance 404,820,480.66
Ending Scheduled Collateral Balance 385,927,102.96
Monthly P&I Constant 3,176,186.87
</TABLE>
