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
Date of Report: October 27, 1997
(Date of earliest event reported)
Salomon Brothers Mortgage Securities VII, Inc.
(Depositor)
(Issuer in Respect of
Mortgage Pass-Through Certificates
Series 1997-HUD1)
(Exact name of registrant as specified in charter)
Delaware 333-24489 13-3408716
(State or other juris- (Commission (I.R.S. Employer
diction of organization) File No.) Identification No.)
399 Park Avenue, New York, New York 10043
(Address of principal executive offices)(Zip Code)
Registrant's Telephone Number, including area code
(212) 559-6899
(Former name or former address, if changed since
last report.)
ITEM 5. OTHER EVENTS
This Current Report on Form 8-K relates to
the Trust Fund formed, and the Mortgage Pass-Through
Certificates Series 1997-HUD1 issued pursuant to, a
Pooling and Servicing Agreement, dated as of April 1,
1997 (the "Pooling and Servicing Agreement"), by and
among Salomon Brothers Mortgage Securites VII, Inc.,
as depositor, Ocwen Federal Bank FSB, as master
servicer, LaSalle National Bank, as trustee and REMIC
administrator, and ABN AMRO Bank, N.V., as fiscal agent.
The Class A-1, Class A-2, Class A-3, Class A-4, Class
IO, Class A-WAC, Class B-1, Class B-2 and Class B-3
Certificates have been registered pursuant to the Act
under a Registration Statement on Form S-3
(File No.333-24489) (the "Registration Statement").
Capitalized terms used herein and not defined
herein have the same meanings ascribed to such terms in
the Pooling and Servicing Agreement.
This Current Report is being filed by the
Trustee, in its capacity as such under the Pooling and
Servicing Agreement, on behalf of the Registrant. The
information reported and contained herein has been
supplied to the Trustee by one or more of the Master
Servicer, the Special Servicer or other third parties
without independent review or investigation by the T
rustee. Pursuant to the Pooling and Servicing Agreement,
the Trustee is not responsible for the accuracy or
completeness of such information.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION
AND EXHIBITS
(c) Exhibits
Exhibit No. Description
99 Monthly distribution report
pursuant to
Section 4.02 of the Pooling and
Servicing
Agreement for the distribution on
October 27, 1997
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be
signed on behalf of the Registrant by the undersigned
thereunto duly authorized.
LASALLE NATIONAL BANK, IN
ITS CAPACITY AS TRUSTEE
UNDER THE POOLING AND
SERVICING AGREEMENT ON
BEHALF OF MORTGAGE CAPTIAL
FUNDING, INC, REGISTRANT
By: /s Russell Goldenberg
Russell Goldenberg,
Senior Vice President
Date: December 30, 1997
ABN AMRO
LaSalle National Bank
Administrator:
Ryan Kutty (800) 246-5761
135 S. LaSalle Street Suite 1625
Chicago, IL 60674-4107
Salomon Brothers Mortgage Securities VII, Inc.
Ocwen Federal Bank FSB, as Master Servicer
Mortgage Pass-Through Certificates
Series 1997-HUD1
ABN AMRO Acct: 67-7741-60-5
Statement Date: 10/27/97
Payment Date: 10/27/97
Prior Payment: 9/25/97
Record Date: 9/30/97
WAC: 9.782275%
WAMM: 222
Number Of Page
Table Of Contents 1
REMIC Certificate Report 3
Other Related Information 4
Asset Backed Facts Sheets 1
Specially Serviced Loan Detail Appendix A
Modified Loan Detail Appendix B
REMIC III
Original Opening Principal
Class Face Value (1)Balance Payment
CUSIP Per $1,000 Per $1,000 Per $1,000
A-1 101,348,000.0090,417,563.75 2,128,429.39
79548KUM8 1000.000000000892.149462742 21.001197754
A-2 18,363,000.0018,363,000.00 0.00
79548KUN6 1000.0000000001000.00000000 0.000000000
A-3 26,662,000.0026,662,000.00 0.00
79548KUP1 1000.0000000001000.00000000 0.000000000
A-4 51,188,000.0051,188,000.00 0.00
79548KUQ9 1000.0000000001000.00000000 0.000000000
IO 272,449,770.12260,956,816.9 0.00
79548KUS5 1000.000000000957.816249157 0.000000000
A-WAC 52,694,064.0049,591,611.22 2,125,094.32
79548KUR7 1000.000000000941.123296544 40.328912949
B-1 12,230,000.0012,138,127.72 18,682.10
79548KUT3 1000.000000000992.487957482 1.527563369
B-2 8,969,000.00 8,901,624.48 13,700.71
79548KUU0 1000.000000000992.487956294 1.527562716
B-3 15,492,000.0015,375,623.45 23,665.01
79548KUV8 1000.000000000992.487958301 1.527563258
B-4 11,415,000.0011,329,250.04 17,437.13
7955019V9 1000.000000000992.487957950 1.527562856
B-5 9,785,000.00 9,711,494.67 14,947.21
7955019W7 1000.000000000992.487958099 1.527563618
B-6 16,997,770.1216,870,132.79 25,965.25
7955019X5 1000.000000000992.490936805 1.527568017
R-III 0.00 0.00 0.00
79548KVB1 1000.000000000 0.000000000 0.000000000
325,143,834.12310,548,428.1 4,367,921.12
Class Principal Negative Closing
CUSIP Adj. or Loss Amortization Balance
Per $1,000 Per $1,000 Per $1,000
A-1 0.00 0.00 88,289,134.36
79548KUM8 0.000000000 0.000000000 871.148264988
A-2 0.00 0.00 18,363,000.00
79548KUN6 0.000000000 0.0000000001,000.00000000
A-3 0.00 0.00 26,662,000.00
79548KUP1 0.000000000 0.0000000001,000.00000000
A-4 0.00 0.00 51,188,000.00
79548KUQ9 0.000000000 0.0000000001,000.00000000
IO 0.00 0.00258,672,204.30
79548KUS5 0.000000000 0.000000000 949.430804020
A-WAC 0.00 0.00 47,466,516.90
79548KUR7 0.000000000 0.000000000 900.794383595
B-1 0.00 0.00 12,119,445.62
79548KUT3 0.000000000 0.000000000 990.960394113
B-2 0.00 0.00 8,887,923.77
79548KUU0 0.000000000 0.000000000 990.960393578
B-3 0.00 0.00 15,351,958.44
79548KUV8 0.000000000 0.000000000 990.960395043
B-4 0.00 0.00 11,311,812.91
7955019V9 0.000000000 0.000000000 990.960395094
B-5 0.00 0.00 9,696,547.46
7955019W7 0.000000000 0.000000000 990.960394481
B-6 41785.80 0.00 16,802,381.74
7955019X5 2.458310690 0.000000000 988.505058098
R-III 0.00 0.00 0.00
79548KVB1 0.000000000 0.000000000 0.000000000
41,785.80 0.00306,138,721.20
Interest Interest Pass-Through
Class Payment Adjustment Rate (2)
CUSIP Per $1,000 Per $1,000 Next Rate (3)
A-1 525,175.35 0.00 6.97000000%
79548KUM8 5.181901468 0.00000000 Fixed
A-2 112,779.43 0.00 7.37000000%
79548KUN6 6.141666939 0.00000000 Fixed
A-3 166,859.68 0.00 7.51000000%
79548KUP1 6.258333208 0.00000000 Fixed
A-4 328,456.33 0.00 7.70000000%
79548KUQ9 6.416666602 0.00000000 7.70000000%
IO 148,071.25 0.00 0.68090000%
79548KUS5 0.543480914 0.00000000 Fixed
A-WAC 256,379.49 0.00 1.17895133%
79548KUR7 4.865433989 0.00000000 1.17895133%
B-1 78,392.07 0.00 7.75000000%
79548KUT3 6.409817661 0.00000000 7.75000000%
B-2 57,489.66 0.00 7.75000000%
79548KUU0 6.409818263 0.00000000 7.75000000%
B-3 99,300.90 0.00 7.75000000%
79548KUV8 6.409817971 0.00000000 7.75000000%
B-4 73,168.07 0.00 7.75000000%
7955019V9 6.409817784 0.00000000 7.75000000%
B-5 62,720.07 0.00 7.75000000%
7955019W7 6.409818089 0.00000000 7.75000000%
B-6 108,952.95 0.00 7.75000000%
7955019X5 6.409837833 0.00000000 7.75000000%
R-III 0.00 0.00
79548KVB1 0.000000000 0.00000000
Total P&I Payme 2,017,745 0.00
6,385,666.37
Notes: (1) N denotes notional balance not included in t
(2) Interest Paid minus Interest Adjustment minus Deferr
Original Opening Principal
Class Face Value (1)Balance Payment
CUSIP Per $1,000 Per $1,000 Per $1,000
Regular Interes 52,694,064.00 49591611.22 2125094.32
None 1000.000000000941.123296544 40.328912949
Regular Interes272,449,770.12260,956,816.9 2,242,826.80
None 1000.000000000957.816249157 8.232074481
R-I 0.00 0.00 0.00
79548KUZ9 1000.000000000 0.000000000 0.000000000
325,143,834.12310,548,428.1 4,367,921.12
Principal Negative Closing
Class Adj. or Loss Amortization Balance
CUSIP Per $1,000 Per $1,000 Per $1,000
Regular Interes 0.00 0.00 47466516.90
None 0.000000000 0.000000000 900.794383595
Regular Interes 41,785.80 0.00258,672,204.30
None 0.153370656 0.000000000 949.430804020
R-I 0.00 0.00 0.00
79548KUZ9 0.000000000 0.000000000 0.000000000
41,785.80 0.00306,138,721.20
Interest Interest Pass-Through
Class Payment Adjustment Rate (2)
CUSIP Per $1,000 Per $1,000 Next Rate (3)
Regular Interes 0.00 0.00
None 0.000000000 0.000000000
Regular Interes 2,017,745.25 0.00 9.278524790%
None 7.405934860 0.000000000 9.214448420%
R-I 0.00 0.00
79548KUZ9 0.000000000 0.000000000
2,017,745.25 0.00
Total P&I Payme 6,385,666.37
None
Notes: (1) N denotes notional balance not included in t
(2) Interest Paid minus Interest Adjustment minus Deferr
Opening Opening Principal
Class Face Value (1)Balance Payment
CUSIP Per $1,000 Per $1,000 Per $1,000
A-1 101,348,000.0090,417,563.75 2,128,429.39
None 1000.000000000892.149462742 21.001197754
A-2 18,363,000.0018,363,000.00 0.00
None 1000.0000000001000.00000000 0.000000000
325,143,834.12310,548,428.1 4,367,921.12
Principal Negative Closing
Class Adj. or Loss Amortization Balance
CUSIP Per $1,000 Per $1,000 Per $1,000
A-1 0.00 0.00 88,289,134.36
None 0.000000000 0.000000000 871.148264988
A-2 0.00 0.00 18,363,000.00
None 0.000000000 0.0000000001000.000000000
41,785.80 0.00306,138,721.20
Interest Interest Pass-Through
Class Payment Adjustment Rate (2)
CUSIP Per $1,000 Per $1,000 Next Rate (3)
A-1 699,118.01 0.00 9.278524790%
None 6.898192466 0.000000000 9.214448420%
A-2 141,984.63 0.00 9.278524790%
None 7.732104231 0.000000000 9.214448420%
2,017,745.25 0.00
Total P&I Payme 6,385,666.37
Notes: (1) N denotes notional balance not included in t
(2) Interest Paid minus Interest Adjustment minus Deferr
ABN AMRO
LaSalle National Bank
Administrator:
Ryan Kutty (800) 246-5761
135 S. LaSalle Street Suite 1625
Chicago, IL 60674-4107
Salomon Brothers Mortgage Securities VII, Inc.
Ocwen Federal Bank FSB, as Master Servicer
Mortgage Pass-Through Certificates
Series 1997-HUD1
ABN AMRO Acct: 67-7741-60-5
Other Related Information
Statement Date: 10/27/97
Payment Date: 10/27/97
Prior Payment: 9/25/97
Record Date: 9/30/97
Accrued Reimbursement Net
Certificateof Prior Prepayment
Class Interest Losses Int. Shortfalls
A-1 525,175.35 0.00 0.00
A-2 112,779.43 0.00 0.00
A-3 166,859.68 0.00 0.00
A-4 328,456.33 0.00 0.00
IO 148,071.25 0.00 0.00
A-WAC 256,379.49 0.00 0.00
B-1 78,392.07 0.00 0.00
B-2 57,489.66 0.00 0.00
B-3 99,300.90 0.00 0.00
B-4 73,168.07 0.00 0.00
B-5 62,720.07 0.00 0.00
B-6 108,952.94 0.00 0.00
Total 2,017,745.2 0.00 0.00
Prior Ending Actual
Unpaid Unpaid Interest Distribution
Class Interest Interest Loss of Interest
A-1 0.00 0.00 0.00 525,175.35
A-2 0.00 0.00 0.00 112,779.43
A-3 0.00 0.00 0.00 166,859.68
A-4 0.00 0.00 0.00 328,456.33
IO 0.00 0.00 0.00 148,071.25
A-WAC 0.00 0.00 0.00 256,379.49
B-1 0.00 0.00 0.00 78,392.07
B-2 0.00 0.00 0.00 57,489.66
B-3 0.00 0.00 0.00 99,300.90
B-4 0.00 0.00 0.00 73,168.07
B-5 0.00 0.00 0.00 62,720.07
B-6 0.00 0.00 0.00 108,952.95
Total 0.00 0.00 0.00 2,017,745.25
P&I Advances made by: Beginning Current
Ending
Unreimbursed Period Reimbursed
Unreimbursed
Servicer 174,365.15247,750.26 174,365.15
247,750.26
Trustee 0.00 0.00 0.00
0.00
Fiscal Agent 0.00 0.00 0.00
0.00
Total P&I Advances 174,365.15247,750.26 174,365.15
247,750.26
Cumulative Extraordinary Trust Fund Expenses Applied to the
Certificates for the Current Distribution Date
0.00
Cumulative Extraordinary Trust Fund Expenses Applied to the
Certificates Since the Closing Date
0.00
Aggregate Amount of Relief Act Interest Shortfalls for the
Current Distribution Date
0.00
Cumulative Amount of Relief Act Interest Shortfalls Since t
0.00
Beginning Stated Principal Balance of the Mortgage
Loans and any REO Properties
260,978,809.97
Ending Stated Principal Balance of the Mortgage
Loans and any REO Properties
258,672,204.30
Aggregate Beginning Arrearage Balance of the Mortgage
Loans50,382,748.37
Ending Arrearage Balance of the Mortgage Loans
48,240,859.80
Amount of Arrearage Collected in the Current Prep
2,141,888.57
Aggregate Amount of Principal Prepayments during Current Pe
1,751,596.20
Actual Collections of Arrearage during the Current Period
2,141,888.57
Beginning Certificate Notional Amount of Class A-260,978,809.97
Ending Certificate Notional Amount of Class A-WAC258,672,204.30
Beginning Legal Balance 311,361,558.34
Ending Legal Balance 306,913,064.10
Beginning Loan Count 6,459.00
Ending Loan Count 6,412.00
Amount of Arrearage Paid on Loans that Prepaid 218,750.65
REO Property Information
During Preceding Calendar Month Last Day of Preceding
Calendar Month
Stated Stated
Loan Principal OutstandinLoan Principal Outstanding
Number Balance Arrearage Number Balance Arrearage
1
2
3
4
5
Total 0.00 0.00 0.00 0.00
REO Loans Liquidated in Preceding Calendar Month
Stated
Loan Principal OutstandinRealized
Number Balance Arrearage Losses
1
2
3
4
5
Total 0.00 0.00 0.00
Reserve Fund
Prior Balance 0.00
Deposits 170.05
Withdrawals 170.05
Current Reserve Balanc 0.00
Summary of Expenses:
Current Period Servicing Fees 108,741.17
Current Period Trustee Fees 815.56
Current Period Special Servicing Fee 0.00
Principal Recovery Fees 0.00
Other Servicing Compensation 0.00
Total 109,556.73
Realized Loss Information
Component Prior Current Cumulative
Mortgage Pool 106,16 63,778. 169,946.76
Certificates
DistributioDelinq 1 Month Delinq 2 Months Delinq 3+
Months
Date # Balance # Balance #
Balance
10/27/97 105 5,002,716 33 1,682,559. 92
5,192,524.
1.63% 1.917% 0.51% 0.645% 1.42%
1.990%
9/25/97 61 3,003,126 38 2,095,503. 70
3,818,040.
0.94% 1.141% 0.58% 0.796% 1.07%
1.451%
8/25/97 60 2,967,080 38 1,936,464. 43
2,377,418.
0.91% 1.114% 0.58% 0.727% 0.65%
0.893%
7/25/97 56 2,628,369 52 2,701,328. 3
201,966.
` 0.978% 0.78% 1.005% 0.05%
0.075%
6/25/97 80 3,581,904 2 140,211. 1
61,964
1.19% 1.319% 0.03% 0.052% 0.01%
0.023%
5/27/97 7 478,93 0 2
112,554.
0.10% 0.176% 0.00% 0.000% 0.03%
0.041%
1/0/00 0 0 0
0.00% 0.000% 0.00% 0.000% 0.00%
0.000%
DistributioForeclosure/Bankruptcy REO Modifications
Date # Balance # Balance # Balance
10/27/97 0 0 0 0 0 0
0.00% 0.000% 0.00% 0.000% 0.00% 0.000%
9/25/97 0 0 0 0 0 0
0.00% 0.000% 0.00% 0.000% 0.00% 0.000%
8/25/97 57 3,364,602 0 0 0 0
0.86% 1.264% 0.00% 0.000% 0.00% 0.000%
7/25/97 0 0 0 0 0 0
0.00% 0.000% 0.00% 0.000% 0.00% 0.000%
6/25/97 0 0 0 0 0 0
0.00% 0.000% 0.00% 0.000% 0.00% 0.000%
5/27/97 0 0 0 0 0 0
0.00% 0.000% 0.00% 0.000% 0.00% 0.000%
1/0/00 0 0 0 0 0 0
0.00% 0.000% 0.00% 0.000% 0.00% 0.000%
DistributioPrepayments Curr Weighted Avg.
Date # Balance Coupon Remit
10/27/97 47 1,751,596 9.7823% 9.2785%
0.73% 0.671%
9/25/97 62 1,812,403 9.7816% 9.2779%
0.95% 0.689%
8/25/97 69 2,515,887 9.7836% 9.2799%
1.05% 0.945%
7/25/97 65 2,019,656 9.7827% 9.2789%
0.98% 0.751%
6/25/97 68 2,222,545 9.7823% 9.2786%
1.01% 0.819%
5/27/97 15 607,94 9.7807% 9.2770%
0.22% 0.223%
1/0/00 0 0.0000% 0.0000%
0.00% 0.000%
Specially Serviced Loan Detail
Beginning
Specially
Disclosure Scheduled Interest Maturity Property Serviced
Control # Balance Rate Date Type Status
Code (Comments
(1)Legend :
1) Request for waiver of Prepayment Penalty
2) Payment default
3) Request for Loan Modification or Workout
4) Loan with Borrower Bankruptcy
5) Loan in Process of Foreclosure
6) Loan now REO Property
7) Loans Paid Off
8) Loans Returned to Master Servicer
Modified Loan Detail
Disclosure ModificatioModification
Control # Date Description
Realized Loss Detail
Beginning
Dist. Disclosure Appraisal Appraisal Scheduled Gross
Date Control # Date Value Balance
Proceeds
6/25/97 6/14/46 42,409.01
6/25/97 9/16/78 78,676.90
6/25/97 3/22/94 65,963.36
6/25/97 4/27/38 29,962.78
6/25/97 4/22/03 50,479.41
7/25/97 3/15/87 36,892
36,944.85
8/25/97 10/11/37 54,490
57,115.90
8/25/97 11/4/22 20,737
18,830.43
8/25/97 10/5/36 49,028
47,915.91
8/25/97 10/26/86 65,831
67,007.96
8/25/97 2/26/94 54,413
60,190.42
10/27/97 8/12/40 65,809
64,994.58
10/27/97 4/22/99 50,543
51,894.16
10/27/97 9/7/92 76,934
64,634.18
1/0/00 1/0/00
1/0/00 1/0/00
Current Total
181,522.92
Cumulative
469,528.39
Gross ProceAggregate Net Net Proceeds
Dist. as a % of Liquidation Liquidatioas a % of
Realized
Date Sched PrincExpenses * Proceeds Sched.
BalancLoss
6/25/97 0.000% 33,259. 78.43%
9,149.69
6/25/97 0.000% 69,080. 87.80%
9,596.33
6/25/97 0.000% 51,894. 78.67%
14,068.79
6/25/97 0.000% 29,712. 99.16%
250.38
6/25/97 0.000% 49,721. 98.50%
757.52
7/25/97 100.142% 21,009. 56.95%
15,882.80
8/25/97 104.819% 46,587. 85.50%
7,902.45
8/25/97 90.804% 15,139. 73.01%
5,597.56
8/25/97 97.731% 35,860. 73.14%
13,167.77
8/25/97 101.788% 53,797. 81.72%
12,033.45
8/25/97 110.617% 36,652. 67.36%
17,761.15
10/27/97 98.762% 41,357. 62.84%
24,451.44
10/27/97 102.673% 40,711. 80.55%
9,831.80
10/27/97 84.012% 47,438. 61.66%
29,495.63
1/0/00 0.000% 0.00%
1/0/00 0.000% 0.00%
Current Total 129,507.61
63,778.87
Cumulative 572,223.90
169,946.76
*Aggregate liquidatin expenses also inclue outstanding P&I
advances and unpaid
servicing fees, unpaid trustee fees, etc..
