<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
August 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 (I.R.S. Employer
of Incorporation) Number) 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, August 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: September 17, 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>
10.1 Monthly Payment Date Statement relating to the distribution
to Certificateholders, August 25, 1998.......................... 5
</TABLE>
<PAGE> 1
<TABLE>
<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-July-1998 11000 Broken Land Parkway
Distribution Date: 25-Aug-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (301) 884-2369
</TABLE>
EXHIBIT 10.1
Certificateholder Distribution Summary
<TABLE>
<CAPTION>
==========================================================================================================================
Certificate Certificate Beginning Current
Class Pass-Through Certificate Interest Principal Realized
Class CUSIP Description Rate Balance Distribution Distribution Loss
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 02926PAA9 SEQ 5.74625% 127,961,105.17 592,322.18 13,133,605.61 0.00
A-2 02926PAB7 SEQ 5.86625% 232,093,000.00 1,096,776.42 0.00 0.00
M-1 02926PAC5 SEQ 6.15625% 46,029,000.00 228,267.08 0.00 0.00
M-2 02926OAD3 SEQ 6.35625% 17,365,000.00 88,914.23 0.00 0.00
B 02926PAE1 SEQ 7.05625% 17,365,000.00 98,706,16 0.00 0.00
X ARE98001X IO 0.20837 0.00 73,992.90 0.00 0.00
O ARE98001O RES 0.00000% 0.00 0.00 0.00 0.00
INV CERT ARE98INVC INV 0.0000% 0.00 1,399,829.60 0.00 0.00
==========================================================================================================================
Totals 440,813,105.17 3,578,808.57 13,133,605.61 0.00
==========================================================================================================================
<CAPTION>
===============================================================
Ending Cumulative
Certificate Total Realized
Class Balance Distribution Losses
===============================================================
<S> <C> <C> <C>
A-1 114,827,499.56 13,725,927.79 0.00
A-2 232,093,000.00 1,096,776.42 0.00
M-1 46,029,000.00 228,267.08 0.00
M-2 17,365,000.00 88,914.23 0.00
B 17,365,000.00 98,706.16 0.00
X 0.00 73,992.90 0.00
O 0.00 0.00 0.00
INV CERT 0.00 1,399,829.60 0.00
===============================================================
Totals 427,679,499.56 16,712,414.18 0.00
===============================================================
</TABLE>
All distributions required by the Pooling and Servicing Agreement have been
calculated by the Certificate Administrator on behalf of the Trustee
<PAGE> 2
<TABLE>
<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-July-1998 11000 Broken Land Parkway
Distribution Date: 25-Aug-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (301) 846-2369
</TABLE>
Principal Distribution Statement
<TABLE>
<CAPTION>
==============================================================================================================================
Beginning Scheduled Unscheduled Total
Original Certificate Principal Principal Realized Principal
Class Face Amount Balance Distribution Distribution Accretion Loss(1) Reduction
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 143,970,000.00 127,961,105.17 228,597.37 12,905,008.24 0.00 0.00 13,133,605.61
A-2 232,093,000.00 232,093,000.00 0.00 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 0.00
M-2 17,365,000.00 17,365,000.00 0.00 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 0.00
X 0.00 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 0.00
INV CERT 0.00 0.00 0.00 0.00 0.00 0.00 0.00
==============================================================================================================================
Totals 456,822,000.00 440,813,105.17 228,597.37 12,905,008.24 0.00 0.00 13,133,605.61
==============================================================================================================================
<CAPTION>
===============================================================
Ending Ending Total
Certificate Certificate Principal
Class Balance Percentage Distribution
===============================================================
<S> <C> <C> <C>
A-1 114,827,499.56 0.79757935 13,133,605.61
A-2 232,093,000.00 1.00000000 0.00
M-1 46,029,000.00 1.00000000 0.00
M-2 17,365,000.00 1.00000000 0.00
B 17,365,000.00 1.00000000 0.00
X 0.00 0.00000000 0.00
O 0.00 0.00000000 0.00
INV CERT 0.00 0.00000000 0.00
===============================================================
Totals 427,679,499.56 0.93620600 13,133,605.61
===============================================================
</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>
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-July-1998 11000 Broken Land Parkway
Distribution Date: 25-Aug-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (301) 846-2369
</TABLE>
Principal Distribution Factors Statement
<TABLE>
<CAPTION>
===========================================================================================================================
Beginning Scheduled Unscheduled Total
Original Certificate Principal Principal Realized Principal
Class(2) Face Amount Balance Distribution Distribution Accretion Loss(3) Reduction
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 143,970,000.00 888.80395339 1.58781253 89.63678711 0.00000000 0.00000000 91.22459964
A-2 232,093,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
M-1 46,029,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
M-2 17,365,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
B 17,365,000.00 1000.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
X 0.00 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
O 0.00 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
INV CERT 0.00 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
===========================================================================================================================
<CAPTION>
===============================================================
Ending Ending Total
Certificate Certificate Principal
Class(2) Balance Percentage Distribution
===============================================================
<S> <C> <C> <C>
A-1 797.57935375 0.79757935 91.22459964
A-2 1000.00000000 1.00000000 0.00000000
M-1 1000.00000000 1.00000000 0.00000000
M-2 1000.00000000 1.00000000 0.00000000
B 1000.00000000 1.00000000 0.00000000
X 0.00000000 0.00000000 0.00000000
O 0.00000000 0.00000000 0.00000000
INV CERT 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>
<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-July-1998 11000 Broken Land Parkway
Distribution Date: 25-Aug-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (301) 846-2369
</TABLE>
Interest Distribution Statement
<TABLE>
<CAPTION>
=========================================================================================================================
Beginning Payment of
Current Certificate/ Current Unpaid Current Non-Supported
Original Face Certificate Notional Accrued Interest Interest Interest
Class Amount Rate Balance Interest Shortfall Shortfall Shortfall
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 143,970,000.00 5.74625% 127,961,105.17 592,322.18 0.00 0.00 0.00
A-2 232,093,000.00 5.86625% 232,093,000.00 1,096,776.42 0.00 0.00 0.01
M-1 46,029,000.00 6.15625% 46,029,000.00 228,267.08 0.00 0.00 0.00
M-2 17,365,000.00 6.35625% 17,365,000.00 88,914.23 0.00 0.00 0.00
B 17,365,000.00 7.05625% 17,365,000.00 98,706.16 0.00 0.00 0.00
X 0.00 0.20837% 440,813,105.17 73,992.90 0.00 0.00 0.00
O 0.00 0.00000% 0.00 0.00 0.00 0.00 0.00
INV CERT 0.00 0.00000% 0.00 0.00 0.00 0.00 0.00
=========================================================================================================================
Totals 456,822,000.00 2,178,978.97 0.00 0.00 0.01
=========================================================================================================================
<CAPTION>
===========================================================================
Remaining Ending
Total Unpaid Certificate/
Realized Interest Interest Notional
Class Losses(4) Distribution Shortfall Balance
===========================================================================
<S> <C> <C> <C> <C>
A-1 0.00 592,322.18 0.00 114,827,499.56
A-2 0.00 1,096,776.42 0.00 232,093,000.00
M-1 0.00 228,267.08 0.00 46,029,000.00
M-2 0.00 88,914.23 0.00 17,365,000.00
B 0.00 98,706,16 0.00 17,365,000.00
X 0.00 73,992.90 0.00 427,679,499.56
O 0.00 0.00 0.00 0.00
INV CERT 0.00 1,399,829.60 0.00 0.00
===========================================================================
Totals 0.00 3,578,808.57 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>
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-July-1998 11000 Broken Land Parkway
Distribution Date: 25-Aug-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (301) 846-2369
</TABLE>
Interest Distribution Factors Statement
<TABLE>
<CAPTION>
=======================================================================================================================
Beginning Payment of
Current Certificate/ Current Unpaid Current Non-Supported
Original Face Certificate Notional Accrued Interest Interest Interest
Class(5) Amount Rate Balance Interest Shortfall Shortfall Shortfall
=======================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 143,970,000.00 5.74625% 888.80395339 4.11420560 0.00000000 0.00000000 0.00000000
A-2 232,093,000.00 5.86625% 1000.00000000 4.72559026 0.00000000 0.00000000 0.00000000
M-1 46,029,000.00 6.15625% 1000.00000000 4.95920137 0.00000000 0.00000000 0.00000000
M-2 17,365,000.00 6.35625% 1000.00000000 5.12031270 0.00000000 0.00000000 0.00000000
B 17,365,000.00 7.05625% 1000.00000000 5.68420155 0.00000000 0.00000000 0.00000000
X 0.00 0.20837% 964.95594601 0.16197315 0.00000000 0.00000000 0.00000000
O 0.00 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
INV CERT 0.00 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
=======================================================================================================================
<CAPTION>
============================================================================
Remaining Ending
Total Unpaid Certificate/
Realized Interest Interest Notional
Class(5) Losses(6) Distribution Shortfall Balance
============================================================================
<S> <C> <C> <C> <C>
A-1 0.00000000 4.11420560 0.00000000 797.57935375
A-2 0.00000000 4.72559026 0.00000000 1000.00000000
M-1 0.00000000 4.95920137 0.00000000 1000.00000000
M-2 0.00000000 5.12031270 0.00000000 1000.00000000
B 0.00000000 5.68420155 0.00000000 1000.00000000
X 0.00000000 0.16197315 0.00000000 936.20600488
O 0.00000000 0.00000000 0.00000000 0.00000000
INV CERT 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>
<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-July-1998 11000 Broken Land Parkway
Distribution Date: 25-Aug-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (301) 884-2369
</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>
0C 0.00000% 0.00 0.00 6,251,524.38 6,251,524.38 99.96233490%
- -------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 7
<TABLE>
<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-July-1998 11000 Broken Land Parkway
Distribution Date: 25-Aug-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (301) 884-2369
</TABLE>
Certificateholder Account Statement
<TABLE>
<CAPTION>
=================================================================
CERTIFICATE ACCOUNT
<S> <C>
Beginning Balance 0.00
Deposits
Payments of Interest and Principal 16,620,445.76
Liquidations, Insurance Proceeds, Reserve
Funds 0.00
Proceeds from Repurchased Loans 0.00
Other Amounts (Servicer Advances) 282,691.48
Realized Losses 0.00
-------------
Total Deposits 16,903,137.24
Withdrawals
Reimbursement for Servicer Advances 0.00
Payment of Service Fee 190,723.06
Payment of Interest and Principal 16,712,414.18
-------------
Total Withdrawals (Pool Distribution Amount) 16,903,137.24
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 186,276.94
Certificate Administration Fee 1,000.00
Trustee Fee 651.97
Spread 1 Fee 0.00
Master Servicing Fee 2,794.15
Supported Prepayment/Curtailment Interest Shortfall 0.00
----------
Net Servicing Fee 190,723.06
==========
====================================================================
</TABLE>
<PAGE> 8
<TABLE>
<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-July-1998 11000 Broken Land Parkway
Distribution Date: 25-Aug-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 Of Principal Number Unpaid
Loans Balance of Loans Balance
<S> <C> <C> <C> <C>
30 Days 99 11,166,106.08 2.839931% 2.573244%
60 Days 63 6,367,442.63 1.807229% 1.467386%
90+ Days 81 11,033,287.11 2.323580% 2.542636%
Foreclosure 26 3,099,450.42 0.745841% 0.714273%
REO 0 0.00 0.000000% 0.000000%
--- ------------- -------- --------
Totals 269 31,666,286.24 7.716581% 7.297539%
</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 282,691.48
================================================================================
</TABLE>
<PAGE> 9
<TABLE>
<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-July-1998 11000 Broken Land Parkway
Distribution Date: 25-Aug-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 10.118085%
Weighted Average Net Coupon 9.618085%
Weighted Average Pass-Through Rate 9.606148%
Weighted Average Maturity (Stepdown Calculation) 352
Beginning Scheduled Collateral Loan Count 3,582
Number of Loans Paid in Full 96
Ending Scheduled Collateral Loan Count 3,486
Beginning Scheduled Collateral Balance 447,064,629.55
Ending Scheduled Collateral Balance 433,931,023.94
Ending Actual Collateral Balance at 31-July-1998 434,168,632.81
Monthly P&I Constant 3,874,284.68
Ending Scheduled Balance for Premium Loans 433,931,023.94
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 $228,597.37/$12,905,008.24
Bond Interest and Interest Rate 6.13625%/$2,178,978.97
Ending Bond Balance $427,679,499.56
Excess Mortgage Amount $1,399,829.60
Bond Overcollateralization Amount $6,251,524.38
May Scheduled Payments/May Scheduled Payment for Delinquent Loans 60 days + $3,238,721.42/$151,364.54
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
============================================================================================================
</TABLE>
