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): November 25, 1998
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
(as depositor under the Pooling and Servicing
Agreement, dated as of May 1, 1998, providing
for the issuance of Asset-Backed Floating Rate Certificates, Series 1998-NC2)
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
(Exact name of registrant as specified in its charter)
Delaware 333-50153 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 November 25, 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 November 25, 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 November 25, 1998.
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
NEW CENTURY ASSET-BACKED FLOATING RATE CERTIFICATES
SERIES 1998-NC2
Distribution Date: 11/25/98
Beginning Ending
Certificate Certificate
ClassCusip Balance(1) Principal Interest Losses Balance
A 79548KYV4 141239885.34 5084287.44 637860.51 0.00 136155597.90
M-1 79548KYW2 18812500.00 0.00 88409.03 0.00 18812500.00
M-2 79548KYX0 14512500.00 0.00 70378.13 0.00 14512500.00
M-3 79548KYY8 7525000.00 0.00 40254.86 0.00 7525000.00
CE N/A 4300000.00 0.00 598481.55 0.00 4300000.00
P N/A 1.00 0.00 46084.21 0.00 1.00
R-III79548KZB7 0.00 0.00 0.00 0.00 0.00
Total 186389886.34 5084287.44 1481468.29 0.00 181305598.90
AMOUNTS PER $1,000 UNIT PASS THROUGH RATES
Ending Current
CertificateRealizedPass-Through
ClassPrincipal Interest Total Balance Losses Interest Rate
A 29.934038 3.75544090 33.689479 801.624012 0.0000 5.41938%
M-1 0.0000 4.69948332 4.699483 1000.00000 0.0000 5.63938%
M-2 0.0000 4.84948355 4.849484 1000.00000 0.0000 5.81938%
M-3 0.0000 5.34948306 5.349483 1000.00000 0.0000 6.41938%
CE 0.0000 139.181756 139.181756 1000.00000 0.0000 3.85309%
P 0.0000 460842.10000 460842.100 10.00000 0.0000 N/A
R-III 0.0000 0.00000000 0.000000 0.00000 0.0000 5.41938%
Section 4.02 (iii.)
MASTER SERVICER COMPENSATION 77662.45
TRUSTEE FEES 0.00
Section 4.02 (iv.)
P&I ADVANCES Total Advances 224111.34
*Note: P&I Advances are made on Mortgage Loans Delinquent
as of the Determination Date.
Section 4.02 (v.)
BALANCES AS OF: 25-Nov-98
Stated Principal Balance of Mortgage Loans 181064827.49
Stated Principal Balance of REO Properties 240771.33
Section 4.02 (vi.)
MORTGAGE LOAN CHARACTERISTICS
Number of Loans (Beginning) 1688
Aggregate Principal Balance as of the Due Date 186389886.25
Number of Loans (Ending) 1643
Aggregate Principal Balance as of the Due Date 181305598.82
Weighted Average Remaining Term to Maturity 346
Beginning Weighted Average Mortgage Rate 9.75867%
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 4227235.07 45 4221740.32
60-89 days delinquent 287544.65 4 287058.65
90 or more days delinquent 245183.71 3 244644.05
Foreclosure proceedings have commenced 2149045.70 30 2143472.35
*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
Principal Principal
Loan Number Balance Balance
45621 200739.71 200122.98
71647 40755.95 40648.35
Section 4.02 (ix.) Book Value of REO Properties: 258564.53
REO BOOK VALUES
Section 4.02 (x.)
PRINCIPAL PREPAYMENTS
Aggregate Amount of Principal Prepayments
Curtailments 38275.13
Payments in Full 4942589.97
Prepayment Charges 46084.21
REO Principal Amortization 106.22
Section 4.02 (xi.) Realized Losses that were incurred during
REALIZED LOSSES the 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 0.801624
Class M-1 1.000000
Class M-2 1.000000
Class M-3 1.000000
Class CE 0.843283
Section 4.02 (xv.)
INTEREST DISTRIBUTION AMOUNTS
Interest Reduction from Allocation of:
Interest Carry Prepayment Relief Act
Distribution Forward Interest RealizedInterest
Amount Amount Shortfalls Losses Shortfalls
A 637860.51 0.00 0.00 0.00 0.00
M-1 88409.03 0.00 0.00 0.00 0.00
M-2 70378.13 0.00 0.00 0.00 0.00
M-3 40254.86 0.00 0.00 0.00 0.00
CE 598481.55 NA 0.00 0.00 0.00
TOTAL 1435384.08 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 6450003.00
Bankruptcy Amount 100000.00
Special Hazard Amount 2262284.00
Section 4.02 (xix.)
Required Overcollateralized Amount 4300000.00
Credit Enhancement Percentage 24.90271%
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 5.41938% 5.24234%
M-1 5.63938% 5.46234%
M-2 5.81938% 5.64234%
M-3 6.41938% 6.24234%
CE 3.85309%
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 598481.55
Delinquency Percentage 1.60830%
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
U.S. Bank National Association
Dated: November 30, 1998
