<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
February 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
(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) 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:
Item 7(c). Exhibits
10.1 Monthly Payment Date Statement
distributed to Bondholders, dated
February 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: March 5, 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
Exhibit Number Page Number
- -------------- ------------
10.1 Monthly Payment Date Statement distributed to
Bondholders, dated February 25, 1998..............................5
<PAGE> 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: 30-Jan-1998 7485 New Horizon Way
Distribution Date: 25-Feb-1998 Frederick, MD 21703
Telephone: (301)846-8130
Facsimile: (301)846-8152
</TABLE>
EXHIBIT 10.1
Certificateholder Distribution Summary
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
Certificate
Certificate Pass- Beginning Current
Class Through Certificate Interest Principal Realized
Class CUSIP Description Rate Balance Distribution Distribution Loss
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 81743MAA1 SEQ 6.51500% 573,090,040.27 3,111,401.34 5,002,171.58 0.00
A-2 81743MAB9 SEQ 6.25755% 151,454,536.77 789,778.61 1,321,958.85 0.00
OC SMTCRT002 R 0.00000% 7,567,274.90 819,814.72 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------------
Totals 732,111,851.94 4,720,364.67 6,324,130.43 0.00
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Ending Cumulative
Certificate Total Realized
Class Balance Distribution Losses
- ------------------------------------------------------------
<S> <C> <C> <C>
A-1 568,087,868.66 8,113,572.92 0.00
A-2 150,132,577.68 2,111,737.46 0.00
OC 7,567,274.86 819,184.72 0.00
- ------------------------------------------------------------
Totals 725,787,721.20 11,044,495.10 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.
24-Feb-1998 2:02PM
<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 Face Certificate Principal Principal Realized
Class Amount Balance Distribution Distribution Accretion Loss(1)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
A-1 592,560,000.00 573,090,040.27 0.00 5,002,171.58 0.00 0.00
A-2 156,600,000.00 151,454,536.77 0.00 1,321,958.85 0.00 0.00
OC 7,567,489.63 7,567,274.90 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------
Class A 756,727,489.63 732,111,851.94 0.00 6,324,130.43 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 5,002,171.58 568,087,868.66 0.95870101 5,002,171.58
A-2 1,321,958.85 150,132,577.68 0.95870101 1,321,958.85
OC 0.00 7,567,274.86 0.99997162 0.00
- -------------------------------------------------------------------------------------
Class A 6,324,130.43 725,787,721.20 0.95911372 6,324,130.43
- -------------------------------------------------------------------------------------
</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-1 592,560,000.00 967.14263580 0.00000000 8.44162883 0.00000000 0.00000000
A-2 156,600,000.00 967.14263582 0.00000000 8.44162739 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 8.44162883 958.70100692 0.95870101 8.44162883
A-2 8.44162739 958.70100690 0.95870101 8.44162739
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-
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 6.51500% 573,090,040.27 3,111,401.34 0.00 0.00 0.00
A-2 156,600,000.00 6.25755% 151,454,536.77 789,778.57 0.00 0.00 0.00
OC 7,567,489.63 0.00000% 7,567,274.90 0.00 0.00 0.00 0.00
- -------------------------------------------------------------------------------------------------------------------------------
Total Class A Interest Distribution 3,901,179.91 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 3,111,401.34 0.00 568,087,868.66
A-2 0.00 789,778.61 0.00 150,132,577.68
OC 0.00 819,184.72 0.00 7,567,274.86
- -----------------------------------------------------------------------------------------------
Total Class A Interest Distribution 0.00 4,720,364.67 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 6.51500% 967.14263580 5.25077855 0.00000000 0.00000000 0.00000000
A-2 156,600,000.00 6.25755% 967.14263582 5.04328589 0.00000000 0.00000000 0.00000000
OC 7,567,489.63 0.00000% 999.97162467 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 5.25077855 0.00000000 958.70100692
A-2 0.00000000 5.04328614 0.00000000 958.70100690
OC 0.00000000 108.25052429 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: 30-Jan-1998 7485 New Horizon Way
Distribution Date: 25-Feb-1998 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 11,252,359.30
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 11,252,359.30
Withdrawals
Reimbursement for Servicer Advances 0.00
Payment of Service Fee 207,864.20
Payment of Interest and Principal 11,044,495.10
-------------
Total Withdrawals (Pool Distribution Amount) 11,252,359.30
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
---------
0.00
Non-Support Prepayment/Curtailment Interest Shortfall =========
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
SERVICING FEES
<S> <C>
Gross Servicing Fee 152,523.30
Pool Insurance Fee 54,340.90
Spread 1 Fee 1,000.00
Supported Prepayment/Curtailment Interest Shortfall 0.00
----------
Net Servicing Fee 207,864.20
==========
- --------------------------------------------------------------------------------
</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: 30-Jan-1998 7485 New Horizon Way
Distribution Date: 25-Feb-1998 Frederick, MD 21703
Telephone: (301)846-8130
Facsimile: (301)846-8152
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
DELINQUENCY STATUS
Percentage Delinquent Based On
Current Unpaid Principal
Number Of Balance Number Unpaid
Loans of Loans Balance
<S> <C> <C> <C> <C>
30 Days 19 4,290,627.73 0.86% 0.59%
60 Days 1 226,000.00 0.05% 0.03%
90+ Days 2 783,699.40 0.09% 0.11%
Foreclosure 0 0.00 0.00% 0.00%
REO 0 0.00 0.00% 0.00%
Totals 22 5,300,327.13 0.99% 0.73%
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 1997-2 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>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
COLLATERAL STATEMENT
Collateral Description Mixed ARM's
<S> <C>
Weighted Average Gross Coupon 8.099558%
Weighted Average Net Coupon 7.597248%
Weighted Average Maturity (Stepdown Calculation) 292 Months
Beginning Scheduled Collateral Loan Count 2,237
Number of Loans Paid in Full 22
Ending Scheduled Collateral Loan Count 2,215
Beginning Scheduled Collateral Balance 732,111,851.94
Ending Scheduled Collateral Balance 725,787,721.24
Specified O/C Account 7,567,274.90
Serious Delinquency 0.1080%
Monthly P&I Constant 4,779,310.23
- --------------------------------------------------------------------------------
</TABLE>
