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 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 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-NC2
Distribution Date: 12/28/98
Beginning Ending
Certificate Certificate
ClassCusip Balance(1) Principal Interest Losses Balance
A 79548KYV4 136155597.903452508.68 654292.78 0.00 132703089.22
M-1 79548KYW2 18812500.00 0.00 94196.92 0.00 18812500.00
M-2 79548KYX0 14512500.00 0.00 75060.75 0.00 14512500.00
M-3 79548KYY8 7525000.00 0.00 43059.14 0.00 7525000.00
CE N/A 4300000.00 0.00 531567.93 0.00 4300000.00
P N/A 1.00 0.00 50747.31 0.00 1.00
R-III79548KZB7 0.00 0.00 0.00 0.00 0.00
Total 181305598.903452508.681448924.83 0.00 177853090.22
AMOUNTS PER $1,000 UNIT PASS THROUGH RATES
Ending Current
Certificate Pass-Through
ClassPrincipal Interest Total Balance Losses Interest Rate
A 20.326846 3.8521868 24.179033 781.297166 0.0000 5.24234%
M-1 0.000000 5.0071452 5.007145 1000.00000 0.0000 5.46234%
M-2 0.000000 5.1721447 5.172145 1000.00000 0.0000 5.64234%
M-3 0.000000 5.7221449 5.722145 1000.00000 0.0000 6.24234%
CE 0.000000 123.620449 123.6204491000.00000 0.0000 3.51827%
P 0.000000 507473.10000507473.100 10.00000 0.0000 N/A
R-III 0.000000 0.000000 0.000000 0.00000 0.0000 5.24234%
Section 4.02 (iii.)
MASTER SERVICER COMPENSATION 75544.00
TRUSTEE FEES 0.00
Section 4.02 (iv.)
P&I ADVANCES Total Advances 366522.66
*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 177612425.94
Stated Principal Balance of REO Properties 240664.18
Section 4.02 (vi.)
MORTGAGE LOAN CHARACTERISTICS
Number of Loans (Beginning) 1643
Aggregate Principal Balance as of the Due Date 181305598.79
Number of Loans (Ending) 1,609
Aggregate Principal Balance as of the Due Date 177853090.12
Weighted Average Remaining Term to Maturity 345
Beginning Weighted Average Mortgage Rate 9.77156%
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 4619648.45 39 4612665.87
60-89 days delinquent 1506033.72 16 1503186.46
90 or more days delinquent 532728.36 7 531482.44
Foreclosure proceedings commenced 2708763.04 36 2701572.87
*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
Loan Principal Principal
Number Balance Balance
Section 4.02 (ix.) Book Value of REO Properties 259073.45
REO BOOK VALUES
Section 4.02 (x.)
PRINCIPAL PREPAYMENTS
Aggregate Amount of Principal Prepayments
Curtailments 14609.52
Payments in Full 3336338.66
Prepayment Charges 50747.31
REO Principal Amortization 107.15
Section 4.02 (xi.) Realized Losses that were incurred during the
REALIZED LOSSES related Prepayment Period:
Total Realized Losse 0.00
Which Include:
Extraordinary Losses 0.00
Fraud Losses 0.00
Special Hazard Losse 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 0.781297
Class M-1 1.000000
Class M-2 1.000000
Class M-3 1.000000
Class CE 0.827224
Section 4.02 (xv.)
INTEREST DISTRIBUTION AMOUNTS
Interest Reduction from the Allocation of:
Interest Carry Prepayment Relief Act
DistributionForward Interest Interest
Amount Amount ShortfallsLosses Shortfalls
A 654292.78 0.00 0.00 0.00 0.00
M-1 94196.92 0.00 0.00 0.00 0.00
M-2 75060.75 0.00 0.00 0.00 0.00
M-3 43059.14 0.00 0.00 0.00 0.00
CE 531567.93 NA 0.00 0.00 0.00
TOTAL 1398177.52 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 25.38612%
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 5.24234% 5.82438%
M-1 5.46234% 6.04438%
M-2 5.64234% 6.22438%
M-3 6.24234% 6.82438%
CE 3.51827%
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 531567.93
Delinquency Percentage 2.79832%
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: December 31, 1998
