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): Ocotber 26, 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 October 26, 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 October 26, 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 October 26, 1998.
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
NEW CENTURY ASSET-BACKED FLOATING RATE CERTIFICATES
SERIES 1998-NC2
STATEMENT TO CERTIFICATEHOLDERS
Distribution Date: 10/26/98
Beginning Ending
Certificate Principal Interest Realized Certificate
ClassCusip Balance(1) Distribution Distribution(Losses Balance
A 79548KYV4 150,267,904.97 9,028,019.63 749,695.97 0.00 141,239,885.34
M-1 79548KYW2 18,812,500.00 0.00 97,420.66 0.00 18,812,500.00
M-2 79548KYX0 14,512,500.00 0.00 77,402.52 0.00 14,512,500.00
M-3 79548KYY8 7,525,000.00 0.00 44,022.56 0.00 7,525,000.00
CE NA 4,300,000.00 0.00 537,425.82 0.00 4,300,000.00
P NA 1.00 0.00 58,992.95 0.00 1.00
R-III79548KZB7 0.00 0.00 0.00 0.00 0.00
Total 195,417,905.97 9,028,019.63 1,564,960.48 0.00 186,389,886.34
AMOUNTS PER $1,000 UNIT PASS THROUGH RATES
Ending Current
Principal Interest Total Certificate Realized Pass-Through
ClassDistribution DistributionDistribution Balance Losses Interest Rate
A 53.152991 4.413879 57.566870 831.558050 0.000000 5.79375%
M-1 0.0000 5.178507 5.178507 1000.00000 0.000000 6.01375%
M-2 0.0000 5.333507 5.333507 1000.00000 0.000000 6.19375%
M-3 0.0000 5.850174 5.850174 1000.00000 0.000000 6.79375%
CE 0.0000 124.982749 124.982749 1000.00000 0.000000 3.30016%
P 0.0000 589929.50000 589929.50000 10.00000 0.000000 NA
R-III 0.0000 0.000000 0.000000 0.00000 0.000000 5.79375%
Section 4.02 (iii.)
MASTER SERVICER COMPENSATION 81,424.13
TRUSTEE FEES 2,849.84
Section 4.02 (iv.)
P&I ADVANCES Total Advance 164,937.23
*Note: P&I Advances are made on Mortgage Loans Delinquent
as of the Determination Date.
Section 4.02 (v.)
BALANCES AS OF: 26-Oct-98
Stated Principal Balance of Mortgage Loans 186,389,886.35
Stated Principal Balance of REO Properties 0.00
Section 4.02 (vi.)
MORTGAGE LOAN CHARACTERISTICS
Number of Loans 1,688
Aggregate Principal Balance as of the Due Date 186,389,886.35
Weighted Average Remaining Term to Maturity 347
Weighted Average Mortgage Rate 9.76517%
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 2,460,703.50 28 2,457,091.17
60-89 days delinquent 279,080.74 4 278,606.87
90 or more days delinquent 180,574.28 3 180,184.03
Foreclosure proceedings have commenced 2,368,503.67 29 2,363,004.44
*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
Section 4.02 (ix.) Total Book Value of REO Properties: 0.00
REO BOOK VALUES
Section 4.02 (x.)
PRINCIPAL PREPAYMENTS
Aggregate Amount of Principal Prepayments
Curtailments 6,409.28
Payments in Full 8,914,417.56
Prepayment Charges 58,992.95
REO Principal Amortization 0.00
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 0.831558
Class M-1 1.000000
Class M-2 1.000000
Class M-3 1.000000
Class CE 0.866931
Section 4.02 (xv.)
INTEREST DISTRIBUTION AMOUNTS
Reduction from the Allocation of:
Interest Interest Prepayment Relief Act
Distribution Carry ForwardInterest Realized Interest
Amount Amount Shortfalls Losses Shortfalls
A 749,695.97 0.00 0.00 0.00 0.00
M-1 97,420.66 0.00 0.00 0.00 0.00
M-2 77,402.52 0.00 0.00 0.00 0.00
M-3 44,022.56 0.00 0.00 0.00 0.00
CE 537,425.82 NA 0.00 0.00 0.00
TOTAL 1,505,967.53 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 6,450,003.00
Bankruptcy Amount 100,000.00
Special Hazard Amount 2,262,284.00
Section 4.02 (xix.) Required Overcollateralized Amount 4,300,000.00
Credit Enhancement Percentage 24.22342%
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 5.79375% 5.41938%
M-1 6.01375% 5.63938%
M-2 6.19375% 5.81938%
M-3 6.79375% 6.41938%
CE 3.30016%
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 537,425.82
Delinquency Percentage 1.51392%
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: October 31, 1998
