<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
June 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 (Commission File Number) (I.R.S. Employer
of Incorporation) 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 June 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: June 16, 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 June 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.
Securities Administration Services
Record Date: 31-May-1998 7485 New Horizon Way
Distribution Date: 04-Jun-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301)846-8152
</TABLE>
Certificateholder Distribution Summary
<TABLE>
<CAPTION>
================== ================== ================== ================== ======================= ======================
Certificate
Certificate Class Pass-Through Rate Beginning Certificate
Description Balance Interest Distribution
Class CUSIP
================== ================== ================== ================== ======================= ======================
<S> <C> <C> <C> <C> <C>
A-1 817435AA8 SEQ 6.03625% 204,337,922.08 1,027,862.32
A-2 817435AB6 SEQ 5.99367% 122,231,048.63 610,510.47
OC SMTINVCRT R 0.00000% 8,702,428.65 533,632.07
============================================================================== ======================= ======================
Totals 335,271,399.36 2,172,004.86
=============================================================================== ======================= ======================
</TABLE>
<TABLE>
<CAPTION>
================== =================== ==================== ===================== ==================== =====================
Current Realized Ending Certificate Cumulative Realized
Principal Loss Balance Total Distribution Losses
Class Distribution
================== =================== ==================== ===================== ==================== =====================
<S> <C> <C> <C> <C> <C>
A-1 12,757,301.65 0.00 191,580,620.43 13,785,163.97 0.00
A-2 7,631,174.59 0.00 114,599,874.04 8,241,685.06 0.00
OC 0.00 0.00 8,702,428.65 533,632.07 0.00
==================== =================== ==================== ===================== ==================== =====================
Totals 20,388,476.24 0.00 314,882,923.12 22,560,481.10 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.
1-June-1998 2:57PM
<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.
Securities Administration Services
Record Date: 31-May-1998 7485 New Horizon Way
Distribution Date: 04-Jun-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301)846-8152
</TABLE>
Principal Distribution Statement
<TABLE>
<CAPTION>
========== ======================== ======================== =============== ================= ============== ================
Beginning Certificate Scheduled Unscheduled
Original Face Amount Balance Principal Principal Realized Loss(1)
Class Distribution Distribution Accretion
========== ======================== ======================== =============== ================= ============== ================
<S> <C> <C> <C> <C> <C> <C>
A-1 334,347,000.00 204,337.922.08 0.00 12,757,301.65 0.00 0.00
A-2 200,000,000.00 122,231,048.63 0.00 7,631,174.59 0.00 0.00
OC 8,703,415.20 8,702,428.65 0.00 0.00 0.00 0.00
========== ======================== ======================== =============== ================= ============== ================
Totals 543,050,415.20 335,271,399.36 0.00 20,388,476.24 0.00 0.00
========== ======================== ======================== =============== ================= ============== ================
</TABLE>
<TABLE>
<CAPTION>
========== ====================== ======================== ==================== ======================
Ending Certificate Ending Certificate
Total Principal Balance Percentage Total Principal
Class Reduction Distribution
========== ====================== ======================== ==================== ======================
<S> <C> <C> <C> <C>
A-1 12,757,301.65 191,580,620.43 0.57299937 12,757,301.65
A-2 7,631,174.59 114,599,874.04 0.57299937 7,631,174.59
OC 0.00 8,702,428.65 0.99988665 0.00
========== ====================== ======================== ==================== ======================
Totals 20,388,476.24 314,882,923.12 0.57984105 20,388,476.24
========== ====================== ======================== ==================== ======================
</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.
Securities Administration Services
Record Date: 31-May-1998 7485 New Horizon Way
Distribution Date: 04-Jun-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
Principal Distribution Factors Statement
<TABLE>
<CAPTION>
========== ==================== ===================== ============= ============= ============ ======================
Scheduled Unscheduled
Beginning Certificate Principal Principal
Class(2) Original Face Amount Balance Distribution Distribution Accretion Realized Loss(3)
========== ==================== ===================== ============ ============ ============ ======================
<S> <C> <C> <C> <C> <C> <C>
A-1 334,347,000.00 611.15524315 0.00000000 38.15587294 0.00000000 0.00000000
A-2 200,000,000.00 611.15524315 0.00000000 38.15587295 0.00000000 0.00000000
OC 8,703,415.20 999.88664794 0.00000000 0.00000000 0.00000000 0.00000000
========== ==================== ===================== ============= ============= ============ ======================
</TABLE>
<TABLE>
<CAPTION>
========== ====================== ======================== ==================== ======================
Total Principal Ending Certificate Ending Certificate Total Principal
Class(2) Reduction Balance Percentage Distribution
========== ====================== ======================== ==================== ======================
<S> <C> <C> <C> <C>
A-1 38.15587294 572.99937021 0.57299937 38.15587294
A-2 38.15587295 572.99937020 0.57299937 38.15587295
OC 0.00000000 999.88664794 0.99988665 0.00000000
========== ====================== ======================== ==================== ======================
</TABLE>
(2) All Classes Are Per $1,000 Denomination.
(3) 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.
Securities Administration Services
Record Date: 31-May-1998 7485 New Horizon Way
Distribution Date: 04-Jun-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
Interest Distribution Statement
<TABLE>
<CAPTION>
======== ===================== ================= ======================= ================= ================== ==========
Current
Current Beginning Certificate/ Current Accrued Payment of Unpaid Interest
Class Original Face Amount Certificate Rate Notional Balance Interest Interest Shortfall Shortfall
======== ===================== ================= ======================= ================= ================== ==========
<S> <C> <C> <C> <C> <C> <C>
A-1 334,347,000.00 6.03625% 204,337,922.08 1,027,862.32 0.00 0.00
A-2 200,000,000.00 5.99367% 122,231,048.63 610,510.47 0.00 0.00
OC 8,703,415.20 0.00000% 8,702,428.65 0.00 0.00 0.00
======== ================================================================ ================= ================== ==========
Totals 543,050,415.20 1,638,372.79 0.00 0.00
======== ================================================================ ================= ================== ==========
</TABLE>
<TABLE>
<CAPTION>
======== ==================== ================ ======================= ================== =======================
Remaining Unpaid
Non-Supported Realized Total Interest Interest Ending Certificate/
Class Interest Shortfall Loss(4) Distribution Shortfall Notional Balance
======== ==================== ================ ======================= ================== =======================
<S> <C> <C> <C> <C> <C>
A-1 0.00 0.00 1,027,862.32 0.00 191,580,620.43
A-2 0.00 0.00 610,510.47 0.00 114,599,874.04
OC 0.00 0.00 533,632.07 0.00 8,702,428.65
======== ==================== ================ ======================= ================== =======================
Totals 0.00 0.00 2,172,004.86 0.00
======== ==================== ================ ======================= ================== =======================
</TABLE>
(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> 5
<TABLE>
<S> <C> <C>
Sequoia Mortgage Trust SMT Contact: Customer Service
Mortgage Pass-Through Certificates Series 1997-1 Norwest Bank Minnesota, N.A.
Securities Administration Services
Record Date: 31-May-1998 7485 New Horizon Way
Distribution Date: 04-Jun-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301) 846-8152
</TABLE>
Interest Distribution Factors Statement
<TABLE>
<CAPTION>
======== ======================= ==================== ======================= ======================= =====================
Beginning Certificate/ Payment of Unpaid
Current Notional Balance Current Accrued Interest Shortfall
Class(5) Original Face Amount Certificate Rate Interest
======== ======================= ==================== ======================= ======================= =====================
======== ======================= ==================== =======================
<S> <C> <C> <C> <C> <C>
A-1 334,347,000.00 6.03625% 611.15524315 3.07423820 0.00000000
A-2 200,000,000.00 5.99367% 611.15524315 3.05255235 0.00000000
OC 8,703,415.20 0.00000% 999.88664794 0.00000000 0.00000000
======== ======================= ==================== ======================= ======================= =====================
</TABLE>
<TABLE>
<CAPTION>
======== ================= ============= ============ ======================= ================== =======================
Non-Supported Remaining Unpaid
Current Interest Interest Realized Total Interest Interest Ending Certificate/
Class(5) Shortfall Shortfall Losses(6) Distribution Shortfall Notional Balance
======== ================= ============= ============ ======================= ================== =======================
======== ======================= ================== =======================
<S> <C> <C> <C> <C> <C> <C>
A-1 0.00000000 0.00000000 0.00000000 3.07423820 0.0000000 572.99937021
A-2 0.00000000 0.00000000 0.00000000 3.05255235 0.0000000 572.99937020
OC 0.00000000 0.00000000 0.00000000 61.31295104 0.0000000 999.88664794
======== ================= ============= ============ ======================= ================== =======================
</TABLE>
(5) All Classes Are $1,000 Denomination.
(6) 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.
Securities Administration Services
Record Date: 31-May-1998 7485 New Horizon Way
Distribution Date: 04-Jun-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301)846-8152
</TABLE>
Certificateholder Component Statement
<TABLE>
<CAPTION>
- ------------------ ---------------- ------------------ --------------- ------------------- ---------------- ----------------
Component Pass- Beginning Notional Ending Notional Beginning Ending Component Ending Component
Class Through Rate Balance Balance Component Balance Balance Percentage
- ------------------ ---------------- ------------------ --------------- ------------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
0.00000% 0.00 0.00 0.00 0.00 0.00000000%
================== ================ ================== =============== =================== ================ ================
</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.
Securities Administration Services
Record Date: 31-May-1998 7485 New Horizon Way
Distribution Date: 04-Jun-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301)846-8152
</TABLE>
Certificateholder Account Statement
<TABLE>
<CAPTION>
============================================================================================================
CERTIFICATE ACCOUNT
<S> <C>
Beginning Balance 0.00
Deposits
Payments of Interest and Principal 22,685,347.06
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 22,685,347.06
Withdrawals
Reimbursement for Servicer Advances 0.00
Payment of Service Fee 124,865.96
Payment of Interest and Principal 22,560,481.10
-------------
Total Withdrawals (Pool Distribution Amount) 22,685,347.06
=============
Ending Balance 0.00
============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
===========================================================================================================================
OTHER ACCOUNTS
Beginning Current Withdrawals Current Ending
Account Type Balance Deposits Balance
- ---------------------------------------- ----------------- -------------------- ---------------- --------------------
<S> <C> <C> <C> <C>
MBIA Guaranty Insurance Premium 0.00 0.00 0.00 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
----------
0.00
==========
===============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
===============================================================================================================
SERVICING FEES
<S> <C>
Gross Servicing Fee 106,169.28
Pool Insurance Fee 17,696.68
Spread 1 Fee 1,000.00
Supported Prepayment/Curtailment Interest Shortfall 0.00
----------
Net Servicing Fee 124,865.96
==========
=========================================================================== ==================================
</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.
Securities Administration Services
Record Date: 31-May-1998 7485 New Horizon Way
Distribution Date: 04-Jun-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301)846-8152
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
CERTIFICATEHOLDER DELINQUENCY/CREDIT ENHANCEMENT STATEMENT
Percentage Delinquent Based On
Current Unpaid Principal Balance
Number Of Loans Number Unpaid
of Loans Balance
<S> <C> <C> <C> <C>
30 Days 22 5,903,524.30 1.604668% 1.874832%
60 Days 2 594,468.99 0.145879% 0.188790%
90+ Days 7 1,658,301.71 0.510576% 0.526641%
Foreclosure 2 3,22,392.21 0.145879% 0.102385%
REO 2 593,605.51 0.145879% 0.188516%
Totals 35 9,072,292.72 2,552881% 2.881164%
Current Period Realized Loss - Includes Interest Shortfall 0.00
Cumulative Realized Losses - Includes Interest Shortfall 0.00
Current Period Class A Insufficient Funds 0.00
Principal Balance of Contaminated Properties 0.00
Periodic Advance 0.00
====================================================================================================================================
</TABLE>
<PAGE> 9
<TABLE>
<S> <C> <C>
Sequoia Mortgage Trust SMT Contact: Customer Service
Mortgage Pass-Through Certificates Series 1997-1 Norwest Bank Minnesota, N.A.
Securities Administration Services
Record Date: 31-May-1998 7485 New Horizon Way
Distribution Date: 04-Jun-1998 Frederick, MD 21703
Telephone: (301) 846-8130
Facsimile: (301)846-8152
</TABLE>
<TABLE>
<CAPTION>
================================================================================
COLLATERAL STATEMENT
Collateral Description Mixed Fixed
<S> <C>
Weighted Average Gross Coupon 8.283632%
Weighted Average Net Coupon 7.910639%
Weighted Average Pass-Through Rate 7.910639%
Weighted Average Maturity (Stepdown Calculation) 310
Beginning Scheduled Collateral Loan Count 1,453
Number of Loans Paid in Full 82
Ending Scheduled Collateral Loan Count 1,371
Beginning Scheduled Collateral Balance 335,271,399.36
Ending Scheduled Collateral Balance 314,882,923.12
Ending Actual Collateral Balance at 31-May-1998 315,160,414.02
Monthly P&I Constant 2,644,939.70
Class A Optimal Amount 22,044,545.71
================================================================================
</TABLE>
