<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
September 25, 1998
Date of Report (Date of Earliest Event Reported)
American Residential Eagle, Inc. (as Depositor of American Residential Eagle
Certificate Trust 1998-1, Issuer of the Mortgage-Backed Callable Certificates,
Series 1998-1, under a Trust Agreement dated June 1, 1998, and as Depositor of
American Residential Eagle Bond Trust 1998-1, Issuer of the Class A
Collateralized Callable Mortgage Bonds under an Indenture dated June 1, 1998)
AMERICAN RESIDENTIAL EAGLE, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 333-47311 33-0787975
- ---------------------------- ------------------------ ----------------
(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
445 Marine View Avenue, Suite 100, Del Mar, CA 92014
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices)
(619) 350-5001
(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
American Residential Eagle, Inc. has previously registered the
offer and sale of Mortgage-Backed Callable Certificates, Series
1998-1 (the "Certificates") issued by American Residential Eagle
Certificate Trust 1998-1 and Class A Collateralized Callable
Mortgage Bonds issued by American Residential Eagle Bond Trust
1998-1 (the "Bonds").
The following exhibit which relates specifically to the
Certificates and the Bonds is included with this Current Report:
Item 7(c). Exhibits
10.1 Monthly Payment Date Statement relating to the
distribution to Certificateholders, September 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: October 7, 1998
AMERICAN RESIDENTIAL EAGLE, INC.
By: /s/ Mark A. Conger
-----------------------------------
Mark A. Conger
Chief Financial Officer
(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 relating to the distribution to
Certificateholders, September 25, 1998.......................................... 5
</TABLE>
<PAGE> 1
<TABLE>
<CAPTION>
<S> <C> <C>
American Residential Eagle Certificate Trust ARE Contact: Customer Service
Mortgage Pass-Through Certificates Series 1998-1 Norwest Bank Minnesota, N.A.
Securities Administration Services
Record Date: 31-Aug-1998 11000 Broken Land Parkway
Distribution Date: 25-Sep-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (301) 846-2369
</TABLE>
EXHIBIT 10.1
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 02926PAA9 SEQ 5.73844% 114,827,499.56 567,412.56
A-2 02926PAB7 SEQ 5.85844% 232,093,000.00 1,170,855.29
M-1 02926PAC5 SEQ 6.14844% 46,029,000.00 243,700.08
M-2 02926OAD3 SEQ 6.34844% 17,365,000.00 94,929.46
B 02926PAE1 SEQ 7.04844% 17,365,000.00 105,396.69
X ARE98001X IO 0.20280% 0.00 74,685.16
O ARE98001O RES 0.00000% 0.00 0.00
INV CERT ARE98INVC INV 0.0000% 0.00 1,099,973.24
====================================================================================
Totals 427,679,499.56 3,356,952.48
====================================================================================
<CAPTION>
=================================================================================
Current Ending Cumulative
Principal Realized Certificate Total Realized
Class Distribution Loss Balance Distribution Losses
=================================================================================
<S> <C> <C> <C> <C> <C>
A-1 8,923,035.59 0.00 105,904,463.97 9,490,448.15 0.00
A-2 0.00 0.00 232,093,000.00 1,170,855.29 0.00
M-1 0.00 0.00 46,029,000.00 243,700.08 0.00
M-2 0.00 0.00 17,365,000.00 94,929.46 0.00
B 0.00 0.00 17,365,000.00 105,396.69 0.00
X 0.00 0.00 0.00 74,685.16 0.00
O 0.00 0.00 0.00 0.00 0.00
INV CERT 0.00 0.00 0.00 1,099,973.24 0.00
=================================================================================
Totals 8,923,035.59 0.00 418,756,463.97 12,279,988.07 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-Oct-1998 11:30A.M.
<PAGE> 2
<TABLE>
<CAPTION>
<S> <C> <C>
American Residential Eagle Certificate Trust ARE Contact: Customer Service
Mortgage Pass-Through Certificates Series 1998-1 Norwest Bank Minnesota, N.A.
Securities Administration Services
Record Date: 31-Aug-1998 11000 Broken Land Parkway
Distribution Date: 25-Sep-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (301) 846-2369
</TABLE>
Principal Distribution Statement
<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-1 143,970,000.00 114,827,499.56 223,886.39 8,699,149.20 0.00 0.00
A-2 232,093,000.00 232,093,000.00 0.00 0.00 0.00 0.00
M-1 46,029,000.00 46,029,000.00 0.00 0.00 0.00 0.00
M-2 17,365,000.00 17,365,000.00 0.00 0.00 0.00 0.00
B 17,365,000.00 17,365,000.00 0.00 0.00 0.00 0.00
X 0.00 0.00 0.00 0.00 0.00 0.00
O 0.00 0.00 0.00 0.00 0.00 0.00
INV CERT 0.00 0.00 0.00 0.00 0.00 0.00
====================================================================================================
Totals 456,822,000.00 427,679,499.56 223,886.39 8,699,149.20 0.00 0.00
====================================================================================================
<CAPTION>
============================================================================
Total Ending Ending Total
Principal Certificate Certificate Principal
Class Reduction Balance Percentage Distribution
============================================================================
<S> <C> <C> <C> <C>
A-1 8,923,035.59 105,904,463.97 0.73560092 8,923,035.59
A-2 0.00 232,093,000.00 1.00000000 0.00
M-1 0.00 46,029,000.00 1.00000000 0.00
M-2 0.00 17,365,000.00 1.00000000 0.00
B 0.00 17,365,000.00 1.00000000 0.00
X 0.00 0.00 0.00000000 0.00
O 0.00 0.00 0.00000000 0.00
INV CERT 0.00 0.00 0.00000000 0.00
============================================================================
Totals 8,923,035.59 418,756,463.97 0.91667315 8,923,035.59
============================================================================
</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>
<CAPTION>
<S> <C> <C>
American Residential Eagle Certificate Trust ARE Contact: Customer Service
Mortgage Pass-Through Certificates Series 1998-1 Norwest Bank Minnesota, N.A.
Securities Administration Services
Record Date: 31-Aug-1998 11000 Broken Land Parkway
Distribution Date: 25-Sep-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (301) 846-2369
</TABLE>
Principal Distribution Factors Statement
<TABLE>
<CAPTION>
====================================================================================================
Beginning Scheduled Unscheduled
Original Face Certificate Principal Principal Realized
Class(2) Amount Balance Distribution Distribution Accretion Loss(3)
===================================================================================================
<S> <C> <C> <C> <C> <C> <C>
A-1 143,970,000.00 797.57935375 1.55509057 60.42334653 0.00000000 0.00000000
A-2 232,093,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 0.00000000
M-1 46,029,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 0.00000000
M-2 17,365,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 0.00000000
B 17,365,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 0.00000000
X 0.00 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
O 0.00 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
INV CERT 0.00 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
====================================================================================================
<CAPTION>
=========================================================================
Total Ending Ending Total
Principal Certificate Certificate Principal
Class(2) Reduction Balance Percentage Distribution
=========================================================================
<S> <C> <C> <C> <C>
A-1 61.97843710 735.60091665 0.73560092 61.97843710
A-2 0.00000000 1000.00000000 1.00000000 0.00000000
M-1 0.00000000 1000.00000000 1.00000000 0.00000000
M-2 0.00000000 1000.00000000 1.00000000 0.00000000
B 0.00000000 1000.00000000 1.00000000 0.00000000
X 0.00000000 0.00000000 0.00000000 0.00000000
O 0.00000000 0.00000000 0.00000000 0.00000000
INV CERT 0.00000000 0.00000000 0.00000000 0.00000000
=========================================================================
</TABLE>
(2) All Denominations Are Per $1,000.
(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>
<CAPTION>
<S> <C> <C>
American Residential Eagle Certificate Trust ARE Contact: Customer Service
Mortgage Pass-Through Certificates Series 1998-1 Norwest Bank Minnesota, N.A.
Securities Administration Services
Record Date: 31-Aug-1998 11000 Broken Land Parkway
Distribution Date: 25-Sep-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (301) 846-2369
</TABLE>
Interest Distribution Statement
<TABLE>
<CAPTION>
========================================================================================
Beginning Payment
Current Certificate/ Current of Unpaid
Original Certificate Notional Accrued Interest
Class Face Amount Rate Balance Interest Shortfall
========================================================================================
<S> <C> <C> <C> <C> <C>
A-1 143,970,000.00 5.73844% 114,827,499.56 567,412.56 0.00
A-2 232,093,000.00 5.85844% 232,093,000.00 1,170,855.29 0.00
M-1 46,029,000.00 6.14844% 46,029,000.00 243,700.08 0.00
M-2 17,365,000.00 6.34844% 17,365,000.00 94,929.46 0.00
B 17,365,000.00 7.04844% 17,365,000.00 105,396.69 0.00
X 0.00 0.20280% 427,679,499.56 74,685.16 0.00
O 0.00 0.00000% 0.00 0.00 0.00
INV CERT 0.00 0.00000% 0.00 0.00 0.00
========================================================================================
Totals 456,822,000.00 2,256,979.24 0.00
========================================================================================
<CAPTION>
========================================================================================
Non- Remaining Ending
Current Supported Unpaid Certificate/
Interest Interest Realized Total Interest Interest Notional
Class Shortfall Shortfall Losses(4) Distribution Shortfall Balance
========================================================================================
<S> <C> <C> <C> <C> <C> <C>
A-1 0.00 0.00 0.00 567,412.56 0.00 105,904,463.97
A-2 0.00 0.01 0.00 1,170,855.29 0.00 232,093,000.00
M-1 0.00 0.00 0.00 243,700.08 0.00 46,029,000.00
M-2 0.00 0.00 0.00 94,929.46 0.00 17,365,000.00
B 0.00 0.00 0.00 105,396.69 0.00 17,365,000.00
X 0.00 0.00 0.00 74,685.16 0.00 418,756,463.97
O 0.00 0.00 0.00 0.00 0.00 0.00
INV CERT 0.00 0.00 0.00 1,099,973.24 0.00 0.00
========================================================================================
Totals 0.00 0.01 0.00 3,356,952.48 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>
<CAPTION>
<S> <C> <C>
American Residential Eagle Certificate Trust ARE Contact: Customer Service
Mortgage Pass-Through Certificates Series 1998-1 Norwest Bank Minnesota, N.A.
Securities Administration Services
Record Date: 31-Aug-1998 11000 Broken Land Parkway
Distribution Date: 25-Sep-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (301) 846-2369
</TABLE>
Interest Distribution Factors Statement
<TABLE>
<CAPTION>
=================================================================================
Beginning Payment
Current Certificate/ Current of Unpaid
Original Certificate Notional Accrued Interest
Class(5) Face Amount Rate Balance Interest Shortfall
=================================================================================
<S> <C> <C> <C> <C> <C>
A-1 143,970,000.00 5.73844% 797.57935375 3.94118608 0.00000000
A-2 232,093,000.00 5.85844% 1000.00000000 5.04476779 0.00000000
M-1 46,029,000.00 6.14844% 1000.00000000 5.29449000 0.00000000
M-2 17,365,000.00 6.34844% 1000.00000000 5.46671235 0.00000000
B 17,365,000.00 7.04844% 1000.00000000 6.06948978 0.00000000
X 0.00 0.20280% 936.20600488 0.16348854 0.00000000
O 0.00 0.00000% 0.00000000 0.00000000 0.00000000
INV CERT 0.00 0.00000% 0.00000000 0.00000000 0.00000000
=================================================================================
<CAPTION>
=====================================================================================================
Remaining Ending
Current Non-Supported Total Unpaid Certificate/
Interest Interest Realized Interest Interest Notional
Class(5) Shortfall Shortfall Losses(6) Distribution Shortfall Balance
=====================================================================================================
<S> <C> <C> <C> <C> <C> <C>
A-1 0.00000000 0.00000000 0.00000000 3.94118608 0.00000000 735.60091665
A-2 0.00000000 0.00000000 0.00000000 5.04476779 0.00000000 1000.00000000
M-1 0.00000000 0.00000000 0.00000000 5.29449000 0.00000000 1000.00000000
M-2 0.00000000 0.00000000 0.00000000 5.46671235 0.00000000 1000.00000000
B 0.00000000 0.00000000 0.00000000 6.06948978 0.00000000 1000.00000000
X 0.00000000 0.00000000 0.00000000 0.16348854 0.00000000 916.67315490
O 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
INV CERT 0.00000000 0.00000000 0.00000000 00000.00000000 0.00000000 0.00000000
=====================================================================================================
</TABLE>
(5) All Denominations Are Per $1,000.
(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>
<CAPTION>
<S> <C> <C>
American Residential Eagle Certificate Trust ARE Contact: Customer Service
Mortgage Pass-Through Certificates Series 1998-1 Norwest Bank Minnesota, N.A.
Securities Administration Services
Record Date: 31-Aug-1998 11000 Broken Land Parkway
Distribution Date: 25-Sep-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (301) 846-2369
</TABLE>
Certificate Component Statement
<TABLE>
<CAPTION>
==================================================================================================================================
Component Beginning Ending Beginning Ending Ending
Pass-Through Notational Notional Component Component Component
Class Rate Balance Balance Balance Balance Percentage
==================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
0C 0.00000% 0.00 0.00 6,251,524.38 6,251,524.38 99.96233490%
==================================================================================================================================
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
<S> <C> <C>
American Residential Eagle Certificate Trust ARE Contact: Customer Service
Mortgage Pass-Through Certificates Series 1998-1 Norwest Bank Minnesota, N.A.
Securities Administration Services
Record Date: 31-Aug-1998 11000 Broken Land Parkway
Distribution Date: 25-Sep-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (301) 846-2369
</TABLE>
Certificateholder Account Statement
<TABLE>
<CAPTION>
===============================================================================
CERTIFICATE ACCOUNT
<S> <C>
Beginning Balance 0.00
Deposits
Payments of Interest and Principal 12,220,781.99
Liquidations, Insurance Proceeds, Reserve Funds 0.00
Proceeds from Repurchased Loans 0.00
Other Amounts (Servicer Advances) 301,725.89
Realized Losses 0.00
-------------
Total Deposits 12,522,507.88
Withdrawals
Reimbursement for Servicer Advances 0.00
Payment of Service Fee 242,519.81
Payment of Interest and Principal 12,279,988.07
-------------
Total Withdrawals (Pool Distribution Amount) 12,522,507.88
Ending Balance 0.00
=============
===============================================================================
</TABLE>
<TABLE>
<CAPTION>
================================================================================
OTHER ACCOUNTS
Beginning Current Current Ending
Account Type Balance Withdrawals Deposits Balance
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Reserve Fund 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
====
================================================================================
</TABLE>
<TABLE>
<CAPTION>
================================================================================
SERVICING FEES
<S> <C>
Gross Servicing Fee 180,804.62
Certificate Administration Fee 1,000.00
Trustee Fee 632.82
Spread 1 Fee 57,370.30
Master Servicing Fee 2,712.07
Supported Prepayment/Curtailment Interest Shortfall 0.00
----------
Net Servicing Fee 242,519.81
==========
================================================================================
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
<S> <C> <C>
American Residential Eagle Certificate Trust ARE Contact: Customer Service
Mortgage Pass-Through Certificates Series 1998-1 Norwest Bank Minnesota, N.A.
Securities Administration Services
Record Date: 31-Aug-1998 11000 Broken Land Parkway
Distribution Date: 25-Sep-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (301) 846-2369
</TABLE>
<TABLE>
<CAPTION>
================================================================================
CERTIFICATEHOLDER DELINQUENCY/CREDIT ENHANCEMENT STATEMENT
DELINQUENCY STATUS
Percentage Delinquent
Based On
Current Unpaid -------------------------
Number Principal Number Unpaid
Of Loans Balance of Loans Balance
--------- ------------- -------- --------
<S> <C> <C> <C> <C>
30 Days 89 9,842,308.88 2.607677% 2.315794%
60 Days 58 6,843,384.04 1.699385% 1.610178%
90+ Days 76 9,869,121.25 2.226780% 2.322103%
Foreclosure 55 7,812,494.25 1.611485% 1.838199%
REO 1 80,696.80 0.029300% 0.18987%
--- ------------- -------- --------
Totals 279 34,448,005.22 8.174626% 8.105261%
=== ============= ======== ========
</TABLE>
<TABLE>
<S> <C>
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 301,725.89
================================================================================
</TABLE>
<PAGE> 9
<TABLE>
<CAPTION>
<S> <C> <C>
American Residential Eagle Certificate Trust ARE Contact: Customer Service
Mortgage Pass-Through Certificates Series 1998-1 Norwest Bank Minnesota, N.A.
Securities Administration Services
Record Date: 31-Aug-1998 11000 Broken Land Parkway
Distribution Date: 25-Sep-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (301) 846-2369
</TABLE>
<TABLE>
<CAPTION>
==================================================================================
COLLATERAL STATEMENT
Collateral Description 6 Month LIBOR ARM
- ---------------------- -----------------
<S> <C>
Weighted Average Gross Coupon 9.954040%
Weighted Average Net Coupon 9.295390%
Weighted Average Pass-Through Rate 9.283372%
Weighted Average Maturity (Stepdown Calculation) 351
Beginning Scheduled Collateral Loan Count 3,486
Number of Loans Paid in Full 73
Ending Scheduled Collateral Loan Count 3,413
Beginning Scheduled Collateral Balance 433,931,023.94
Ending Scheduled Collateral Balance 425,007,988.35
Ending Actual Collateral Balance at 31-Aug-1998 425,260,801.58
Monthly P&I Constant 3,762,211.75
Ending Scheduled Balance for Premium Loans 425,007,988.35
Required Overcollateralized Amount 6,251,524.38
Overcollateralized Increase Amount 0.00
Overcollateralized Reduction Amount 0.00
Specified O/C Amount 0.00
Overcollateralized Amount 6,251,524.38
Overcollateralized Deficiency Amount 0.00
Base Overcollateralization Amount 0.00
===================================================================================
</TABLE>
<TABLE>
==================================================================================================
<S> <C>
Bond Scheduled/Unscheduled Principal $223,886.39/$8,699,149.20
Bond Interest and Interest Rate 6.12844%/$2,256,979.24
Ending Bond Balance $418,756,463.97
Excess Mortgage Amount $1,099,973.24
Bond Overcollateralization Amount $6,251,524.38
June Scheduled Payments/June Scheduled Payments for
Delinquent Loans 60 days + $3,902,326.00/$161,007.78
July Scheduled Payments/July Scheduled Payments for
Delinquent Loans 60 days + $3,874,284.68/$215,746.78
August Schedule Payments/Scheduled Payments for
Delinquent Loans 60 days + $3,762,211.75/$239,613.92
REO loan number/REO principal balance 0007366511/$80,696.80
==================================================================================================
</TABLE>
