<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
December 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, December 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: January 11, 1999
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, December 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: 30-Nov-1998 11000 Broken Land Parkway
Distribution Date: 28-Dec-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (410) 884-2369
</TABLE>
EXHIBIT 10.1
Certificateholder Distribution Summary
<TABLE>
<CAPTION>
================================================================================================
Certificate
Certificate Pass- Beginning
Class Through Certificate Interest Principal
Class CUSIP Description Rate Balance Distribution Distribution
=================================================================================================
<S> <C> <C> <C> <C> <C> <C>
A-1 02926PAA9 SEQ 5.13234% 83,946,683.96 394,939.34 11,559,915.45
A-2 02926PAB7 SEQ 5.25234% 232,093,000.00 1,117,445.39 0.00
M-1 02926PAC5 SEQ 5.54234% 46,029,000.00 233,849.34 0.00
M-2 02926OAD3 SEQ 5.74234% 17,365,000.00 91,406.09 0.00
B 02926PAE1 SEQ 6.44234% 17,365,000.00 102,548.63 0.00
X ARE98001X IO 0.18823% 0.00 68,463.67 0.00
O ARE98001O RES 0.00000% 0.00 0.00 0.00
INV CERT ARE98INVC INV 0.00000% 0.00 1,196,348.58 0.00
=================================================================================================
Totals 396,798,683.96 3,205,001.04 11,559,915.45
=================================================================================================
<CAPTION>
===============================================================================
Current Ending Cumulative
Realized Certificate Total Realized
Class Loss Balance Distribution Losses
===============================================================================
<S> <C> <C> <C> <C>
A-1 0.00 72,386,768.51 11,954,854.79 0.00
A-2 0.00 232,093,000.00 1,117,445.39 0.00
M-1 0.00 46,029,000.00 233,849.34 0.00
M-2 0.00 17,365,000.00 91,406.09 0.00
B 0.00 17,365,000.00 102,548.63 0.00
X 0.00 0.00 68,463.67 0.00
O 0.00 0.00 0.00 0.00
INV CERT 0.00 0.00 1,196,348.58 0.00
===============================================================================
Totals 0.00 385,238,768.51 14,764,916.49 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.
04-Jan-1999 2:48P.M.
<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: 30-Nov-1998 11000 Broken Land Parkway
Distribution Date: 28-Dec-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (410) 846-2369
</TABLE>
Principal Distribution Statement
<TABLE>
<CAPTION>
==============================================================================================
Beginning Scheduled Unscheduled
Original Certificate Principal Principal Realized
Class Face Amount Balance Distribution Distribution Accretion Loss(1)
==============================================================================================
<S> <C> <C> <C> <C> <C> <C>
A-1 143,970,000.00 83,946,683.96 210,901.84 11,349,013.61 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 456,822,000.00 396,798,683.96 210,901.84 11,349,013.61 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 11,559,915.45 72,386,768.51 0.50279064 11,559,915.45
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 11,559,915.45 385,238,768.51 0.84330170 11,559,915.45
===============================================================================
</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: 30-Nov-1998 11000 Broken Land Parkway
Distribution Date: 28-Dec-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (410) 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-1 143,970,000.00 583.08455901 1.46490130 78.82901723 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 80.29391852 502.79064048 0.50279064 80.29391852
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>
<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: 30-Nov-1998 11000 Broken Land Parkway
Distribution Date: 28-Dec-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (410) 846-2369
</TABLE>
Interest Distribution Statement
<TABLE>
<CAPTION>
================================================================================
Beginning Payment of
Current Certificate/ Current Unpaid
Original Face Certificate Notional Accrued Interest
Class Amount Rate Balance Interest Shortfall
================================================================================
<S> <C> <C> <C> <C> <C>
A-1 143,970,000.00 5.13234% 83,946,683.96 394,939.35 0.00
A-2 232,093,000.00 5.25234% 232,093,000.00 1,117,445.40 0.00
M-1 46,029,000.00 5.54234% 46,029,000.00 233,849.34 0.00
M-2 17,365,000.00 5.74234% 17,365,000.00 91,406.09 0.00
B 17,365,000.00 6.44234% 17,365,000.00 102,548.63 0.00
X 0.00 0.18823% 396,798,683.96 68,463.67 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 2,008,652.48 0.00
================================================================================
<CAPTION>
============================================================================================
Remaining Ending
Current Non-Supported Total Unpaid Certificate/
Interest Interest Realized Interest Interest Notional
Class Shortfall Shortfall Losses(4) Distribution Shortfall Balance
============================================================================================
<S> <C> <C> <C> <C> <C> <C>
A-1 0.00 0.00 0.00 394,939.34 0.00 72,386,768.51
A-2 0.00 0.01 0.00 1,117,445.39 0.00 232,093,000.00
M-1 0.00 0.00 0.00 233,849.34 0.00 46,029,000.00
M-2 0.00 0.00 0.00 91,406.09 0.00 17,365,000.00
B 0.00 0.00 0.00 102,548.63 0.00 17,365,000.00
X 0.00 0.00 0.00 68,463.67 0.00 385,238,768.51
O 0.00 0.00 0.00 0.00 0.00 0.00
INV CERT 0.00 0.00 0.00 1,196,348.58 0.00 0.00
============================================================================================
Totals 0.00 0.01 0.00 3,205,001.04 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: 30-Nov-1998 11000 Broken Land Parkway
Distribution Date: 28-Dec-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (410) 846-2369
</TABLE>
Interest Distribution Factors Statement
<TABLE>
<CAPTION>
========================================================================================================
Beginning Payment of
Current Certificate/ Current Unpaid Current
Original Certificate Notional Accrued Interest Interest
Class(5) Face Amount Rate Balance Interest Shortfall Shortfall
========================================================================================================
A-1 143,970,000.00 5.13234% 583.08455901 2.74320588 0.00000000 0.00000000
A-2 232,093,000.00 5.25234% 1000.00000000 4.81464499 0.00000000 0.00000000
M-1 46,029,000.00 5.54234% 1000.00000000 5.08047839 0.00000000 0.00000000
M-2 17,365,000.00 5.74234% 1000.00000000 5.26381169 0.00000000 0.00000000
B 17,365,000.00 6.44234% 1000.00000000 5.90547826 0.00000000 0.00000000
X 0.00 0.18823% 868.60677454 0.14986947 0.00000000 0.00000000
O 0.00 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000
INV CERT 0.00 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000
========================================================================================================
<CAPTION>
=======================================================================================
Remaining Ending
Non-Supported Total Unpaid Certificate/
Interest Realized Interest Interest Notional
Class(5) Shortfall Losses(6) Distribution Shortfall Balance
=======================================================================================
<S> <C> <C> <C> <C> <C>
A-1 0.00000000 0.00000000 2.74320581 0.00000000 502.79064048
A-2 0.00000000 0.00000000 4.81464495 0.00000000 1000.00000000
M-1 0.00000000 0.00000000 5.08047839 0.00000000 1000.00000000
M-2 0.00000000 0.00000000 5.26381169 0.00000000 1000.00000000
B 0.00000000 0.00000000 5.90547826 0.00000000 1000.00000000
X 0.00000000 0.00000000 0.14986947 0.00000000 843.30169850
O 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
INV CERT 0.00000000 0.00000000 50000.00000000 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: 30-Nov-1998 11000 Broken Land Parkway
Distribution Date: 28-Dec-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (410) 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>
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: 30-Nov-1998 11000 Broken Land Parkway
Distribution Date: 28-Dec-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (410) 846-2369
</TABLE>
Certificateholder Account Statement
CERTIFICATE ACCOUNT
<TABLE>
<S> <C>
Beginning Balance 0.00
Deposits
Payments of Interest and Principal 14,614,508.76
Liquidations, Insurance Proceeds, Reserve Funds 0.00
Proceeds from Repurchased Loans 0.00
Other Amounts (Servicer Advances) 376,156.76
Realized Losses 0.00
-------------
Total Deposits 14,990,665.52
Withdrawals
Reimbursement for Servicer Advances 0.00
Payment of Service Fee 225,749.03
Payment of Interest and Principal 14,764,916.49
-------------
Total Withdrawals (Pool Distribution Amount) 14,990,665.52
Ending Balance 0.00
=============
</TABLE>
OTHER ACCOUNTS
<TABLE>
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>
PREPAYMENT/CURTAILMENT INTEREST SHORTFALL
<TABLE>
<S> <C>
Total Prepayment/Curtailment Interest Shortfall 0.00
Servicing Fee Support 0.00
----
Non-Supported Prepayment/Curtailment Interest Shortfall 0.00
====
</TABLE>
SERVICING FEES
<TABLE>
<S> <C>
Gross Servicing Fee 167,937.60
Management Fee 1,000.00
Trustee Fee 587.78
Special Servicing Fee 53,704.58
Master Servicing Fee 2,519.07
Supported Prepayment/Curtailment Interest Shortfall 0.00
----------
Net Servicing Fee 225,749.03
==========
</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: 30-Nov-1998 11000 Broken Land Parkway
Distribution Date: 28-Dec-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (410) 846-2369
</TABLE>
CERTIFICATEHOLDER DELINQUENCY/CREDIT ENHANCEMENT STATEMENT
DELINQUENCY STATUS
<TABLE>
<CAPTION>
Percentage Delinquent
Based On
--------------------------
Current Unpaid
Number Principal Number Unpaid
Of Loans Balance of Loans Balance
-------- --------- -------- -------
<S> <C> <C> <C> <C>
30 Days 110 12,739,725.26 3.482115% 3.254161%
60 Days 63 6,604,284.94 1.994302% 1.686960%
90+ Days 72 9,088,616.61 2.279202% 2.321543%
Foreclosure 112 14,030,314.03 3.545426% 3.583822%
REO 7 614,923.50 0.221589% 0.157072%
--- ------------- --------- ---------
Totals 364 43,077,864.34 11.522634% 11.003559%
</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 376,156.76
</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: 30-Nov-1998 11000 Broken Land Parkway
Distribution Date: 28-Dec-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (410) 846-2369
</TABLE>
COLLATERAL STATEMENT
<TABLE>
<CAPTION>
Collateral Description 6 Month LIBOR ARM
- ---------------------- -----------------
<S> <C>
Weighted Average Gross Coupon 10.214360%
Weighted Average Net Coupon 9.554466%
Weighted Average Pass-Through Rate 9.542239%
Weighted Average Maturity (Stepdown Calculation) 348
Beginning Scheduled Collateral Loan Count 3,249
Number of Loans Paid in Full 90
Ending Scheduled Collateral Loan Count 3,159
Beginning Scheduled Collateral Balance 403,050,208.34
Ending Scheduled Collateral Balance 391,490,292.89
Ending Actual Collateral Balance at 30-Nov-1998 391,777,743.99
Monthly P&I Constant 3,641,651.91
Ending Scheduled Balance for Premium Loans 391,490,292.89
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>
<PAGE> 10
<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: 30-Nov-1998 11000 Broken Land Parkway
Distribution Date: 28-Dec-1998 Columbia, MD 21044
Telephone: (301) 815-6600
Facsimile: (410) 846-2369
</TABLE>
<TABLE>
<S> <C>
Bond Scheduled/Unscheduled Principal $210,901.84/$11,349,013.61
Bond Interest and Interest Rate 5.52234%/$2,008,652.48
Ending Bond Balance $385,238,768.51
Excess Mortgage Amount $1,196,348.58
October Scheduled Payments/Scheduled Payments for
Delinquent Loans 60 days + $3,687,331.43/$271,468.74
November Scheduled Payments/Scheduled Payments for
Delinquent Loans 60 days + $3,599,536.34/$290,945.21
December Scheduled Payments/Scheduled Payments for
Delinquent Loans 60 days + $3,521,279.14/$336,236.88
REO loan number/REO principal balance 7366511/$80,696.80
REO loan number/REO principal balance 7374630/$44,800.69
REO loan number/REO principal balance 7401573/$97,560.19
REO loan number/REO principal balance 7312994/$93,341.16
REO loan number/REO principal balance 0007311129/$178,139.07
REO loan number/REO principal balance 0007397300/$89,635.59
REO loan number/REO principal balance 0008029084/$30,750.00
</TABLE>
