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 (date of earliest event reported): December 28, 1998
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
(as depositor under the Pooling and Servicing
Agreement, dated as of March 1, 1998, providing
for the issuance of Asset-Backed Floating Rate Certificates, Series 1998-NC1)
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
(Exact name of registrant as specified in its charter)
Delaware 333-44593 13-3439681
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
Seven World Trade Center
New York, New York 10048
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (212) 783-5659
Item 5. Other Events
On December 28, 1998 a scheduled distribution was made from the Trust
to holders of the Class A Certificates. The Trustee has caused to be filed
with the Commission, the Monthly Report dated December 28, 1998.
The Monthly Report is filed pursuant to and in accordance with
(1) numerous no-action letters (2) current Commission policy in the area.
A. Monthly Report Information:
See Exhibit No.1
B. Have any deficiencies occurred? NO.
Date:
Amount:
C. Item 1: Legal Proceedings: NONE
D. Item 2: Changes in Securities: NONE
E. Item 4: Submission of Matters to a Vote of Certificateholders: NONE
F. Item 5: Other Information - Form 10-Q, Part II - Items 1,2,4,5 if
applicable: NOT APPLICABLE
Item 7. Monthly Statements and Exhibits
Exhibit No.
1. Monthly Distribution Report dated December 28, 1998.
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
NEW CENTURY ASSET-BACKED FLOATING RATE CERTIFICATES
SERIES 1998-NC1
Distribution Date: 12/28/98
Beginning Ending
Certificate Principal Interest Realized Certificate
ClassCusip Balance* DistributioDistributioLosses Balance
A 79548KYN2 206247323.80 4647742.20 998679.45 0.00 201599581.60
M-1 79548KYP7 29250000.00 0.00 147263.37 0.00 29250000.00
M-2 79548KYQ5 37375000.00 0.00 195021.94 0.00 37375000.00
M-3 79548KYR3 12187000.00 0.00 70294.35 0.00 12187000.00
CE NA 6500700.00 0.00 841795.90 0.00 6500700.00
R-III79548KYU6 0.00 0.00 0.00 0.00 0.00
Total 291560023.80 4647742.20 2253055.01 0.00 286912281.60
AMOUNTS PER $1,000 UNIT PASS THROUGH RATES
Ending Current
CertificateRealized Pass-Through
ClassPrincipal Interest Total Balance Losses Interest Rate
A 19.390881 4.1665983 23.557480 841.09518 0.00000 5.282340%
M-1 0.000000 5.0346451 5.034645 1000.00000 0.00000 5.492340%
M-2 0.000000 5.2179783 5.217978 1000.00000 0.00000 5.692340%
M-3 0.000000 5.7679782 5.767978 1000.00000 0.00000 6.292340%
CE 0.000000 129.493116 129.493116 1000.00000 0.00000 3.202896%
R-III 0.000000 0.0000000 0.00000 0.00000 0.00000 5.282340%
Section 4.02 (iii.)
MASTER SERVICER COMPENSATION 121483.34
TRUSTEE FEES 2429.67
Section 4.02 (iv.)
P&I ADVANCES Total Advances 671190.83
*Note: P&I Advances are made on Mortgage Loans Delinquent
as of the Determination Date.
Section 4.02 (v.)
BALANCES AS OF: 28-Dec-98
Stated Principal Balance of Mortgage Loans 284683936.93
Stated Principal Balance of REO Properties 2228345.09
Section 4.02 (vi.)
MORTGAGE LOAN CHARACTERISTICS
Number of Loans (Beginning) 2514
Aggregate Principal Balance as of the Due Date 291560024.22
Number of Loans (Ending) 2472
Aggregate Principal Balance as of the Due Date 286912282.02
Weighted Average Remaining Term to Maturity 349
Beginning Weighted Average Mortgage Rate 9.5213434%
Number of Subsequent Loans 0
Balance of Subsequent Loans 0.00
Unpaid Stated
Section 4.02 (vii.) Principal Principal
DELINQUENCY INFORMATION Balance Number Balance
30-59 days delinquent 8009294.78 66 7996371.90
60-89 days delinquent 1611143.02 14 1608103.37
90 or more days delinquent 3078269.59 28 3067652.73
Foreclosure proceedings have commenced 12868549.40 112 12830232.02
*Note: In accordance with the Master Servicer, the Delinquency
Information relates to the Prepayment Period.
Section 4.02 (viii.)
REO INFORMATION Loans that became REO properties in the
preceding calendar month:
Unpaid Stated Unpaid Stated
Principal Principal PrincipalPrincipal
Loan NumberBalance Balance Loan NumberBalance Balance
49514 319110.21 318026.11 72871 119811.90 119363.93
66776 59223.48 59051.29 75252 221143.95 220177.54
66884 94357.16 93955.35 88089 43479.91 43324.72
72870 119811.90 119363.93 88097 44979.22 44818.68
Section 4.02 (ix.) Total Book Value of REO Propert 2222772.39
REO BOOK VALUES
Section 4.02 (x.)
PRINCIPAL PREPAYMENTS
Aggregate Amount of Principal Prepayments
Curtailments 40320.88
Payments in Full 4439919.26
Prepayment Charges 63,598.76
REO Principal Amortization 1,107.77
Section 4.02 (xi.) Realized Losses that were incurred during the
REALIZED LOSSES related Prepayment Period:
Total Realized Losses 0.00
Which Include:
Extraordinary Losses 0.00
Fraud Losses 0.00
Special Hazard Losses 0.00
Bankruptcy Losses 0.00
Section 4.02 (xii.)
EXTRAORDINARY TRUST FUND EXPENSES
Extraordinary Trust Fund Expenses withdrawn from the Collection
Account or Distribution Account that caused a reduction of the
Available Distribution Amount: 0.00
Section 4.02 (xiv.)
CERTIFICATE FACTOR Certificate
Factor
Class A 0.841095
Class M-1 1.000000
Class M-2 1.000000
Class M-3 1.000000
Class CE 0.882808
Section 4.02 (xv.)
INTEREST DISTRIBUTION AMOUNTS
Interest Reduction from the Allocation of:
Interest Carry Prepayment Relief Act
Distribution Forward Interest Realized Interest
Amount Amount Shortfalls Losses Shortfalls
A 998679.45 0.00 0.00 0.00 0.00
M-1 147263.37 0.00 0.00 0.00 0.00
M-2 195021.94 0.00 0.00 0.00 0.00
M-3 70294.35 0.00 0.00 0.00 0.00
CE 841795.90 NA 0.00 0.00 0.00
TOTAL 2253055.01 0.00 0.00 0.00 0.00
Section 4.02 (xvi.)
PREPAYMENT INTEREST SHORTFALLS
Prepayment Interest Shortfalls not covered by the Servicer: 0.00
Section 4.02 (xvii.)
Relief Act Interest Shortfall 0.00
Section 4.02 (xviii.) Fraud Loss Amount 9750000.00
Bankruptcy Amount 100000.00
Special Hazard Amount 4417585.68
Section 4.02 (xix.)
Required Overcollateralized Amount 6500700.00
Credit Enhancement Percentage 29.73477%
Section 4.02 (xx.)
Overcollateralization Increase Amount 0.00
Section 4.02 (xxi.)
Overcollateralization Reduction Amount 0.00
Section 4.02 (xxii.)
PASS THROUGH RATE
A 5.28234% 5.86438%
M-1 5.49234% 6.07438%
M-2 5.69234% 6.27438%
M-3 6.29234% 6.87438%
CE 3.20290%
Section 4.02 (xxiii.)
PRE-FUNDING AND INTEREST COVERAGE ACCOUNT
Amount on Deposit in the Pre-Funding Account 0.00
Amount on Deposit in the Interest Coverage Account 0.00
Section 4.02 (xxiv.)
PRE-FUNDING ACCOUNT DEPOSITS
Amount from the Pre-Funding Account
distributed to the Certificates 0.00
PERFORMANCE MEASURES
Net Monthly Excess Cash Flow 778197.14
Delinquency Percentage 6.87818%
Stepdown Date Occurrence NO
Trigger Event Occurrence NO
SIGNATURES
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.
SALOMON BROTHERS MORTGAGE
SECURITIES VII, INC.
By: /s/ Eve Kaplan
Name: Eve Kaplan
Title: Vice President
First Trust National Association
Dated: December 31, 1998
