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 June 1, 1998, providing
for the issuance of Asset-Backed Floating Rate Certificates, Series 1998-NC3)
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-NC3
STATEMENT TO CERTIFICATEHOLDERS
Distribution Date: 11/25/98
Beginning Ending
Certificate Certificate
ClassCusip Balance(1) Principal Interest Losses Balance
A-1 79548KZZ4 141100759.03 4024870.50 705503.80 0.00 137075888.53
A-2 79548KA24 70094000.00 0.00 374418.78 0.00 70094000.00
A-3 79548KA32 64990000.00 0.00 349862.83 0.00 64990000.00
A-4 79548KA40 39025000.00 0.00 214312.29 0.00 39025000.00
A-5 79548KA57 32311000.00 0.00 186596.03 0.00 32311000.00
A-6 79548KA65 47400000.00 0.00 254775.00 0.00 47400000.00
M-1 79548KA73 23699000.00 0.00 133306.88 0.00 23699000.00
M-2 79548KA81 16590000.00 0.00 93318.75 0.00 16590000.00
M-3 79548KA99 23700000.00 0.00 133312.50 0.00 23700000.00
CE N/A 7110600.00 0.00 1131020.04 0.00 7110600.00
P N/A 1.00 0.00 74654.78 0.00 1.00
R-III79548KB49 0.00 0.00 0.00 0.00 0.00
Total 466020360.03 4024870.50 3651081.68 0.00 461995489.53
PASS THROUGH RATES
Ending Current
Certificate Pass-Through
Class Principal Interest Total Balance Losses Interest Rate
A-1 26.998058 4.7323840 31.730442 919.47873 0.00000 6.00000%
A-2 0.000000 5.3416666 5.3416666 1000.00000 0.00000 6.41000%
A-3 0.000000 5.3833333 5.3833333 1000.00000 0.00000 6.46000%
A-4 0.000000 5.4916666 5.4916666 1000.00000 0.00000 6.59000%
A-5 0.000000 5.7750002 5.7750002 1000.00000 0.00000 6.93000%
A-6 0.000000 5.3750000 5.3750000 1000.00000 0.00000 6.45000%
M-1 0.000000 5.6250002 5.6250002 1000.00000 0.00000 6.75000%
M-2 0.000000 5.6250000 5.6250000 1000.00000 0.00000 6.75000%
M-3 0.000000 5.6250000 5.6250000 1000.00000 0.00000 6.75000%
CE 0.000000 159.0611256 159.06113 1000.00000 0.00000 2.91237%
P 0.000000 746547.8000 746547.800 10.00000 0.00000 N/A
R-III 0.000000 0.0000000 0.000000 0.00000 0.00000 6.75000%
(1) The Class CE Certificates accrue interest on a Notional Balance
equal to the Aggregate REMIC II Principal Balance.
(2) The Class P Certificates do not accrue interest. Any amounts
appearing as Interest Distributions represent payments of Prepayment
Charges.
Section 4.02 (iii.)
MASTER SERVICER COMPENSATION 194175.15
TRUSTEE FEES 0.00
Section 4.02 (iv.)
P&I ADVANCES Total Advances 456283.18
*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 461940171.59
Stated Principal Balance of REO Properties 55317.98
Section 4.02 (vi.)
MORTGAGE LOAN CHARACTERISTICS
Number of Loans (Beginning) 5304
Aggregate Principal Balance as of the Due Date 466020360.07
Number of Loans (Ending) 5258
Aggregate Principal Balance as of the Due Date 461995489.57
Weighted Average Remaining Term to Maturity 330
Beginning Weighted Average Mortgage Rate 9.715281%
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 7880644.09 103 7862884.68
60-89 days delinquent 1651370.33 23 1648134.63
90 or more days delinquent 528050.40 8 526734.41
Foreclosure proceedings have commenced 5979626.07 65 5963722.70
Bankruptcy proceedings 2125173.99 20 2122420.74
*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
86866 55500.00 55317.98
Section 4.02 (ix.) Book Value of REO Properties: 60298.75
REO BOOK VALUES
Section 4.02 (x.)
PRINCIPAL PREPAYMENTS
Aggregate Amount of Principal Prepayments
Curtailments 91426.37
Payments in Full 3560303.15
Scheduled Principal 373140.98
Prepayment Charges 74654.78
REO Principal Amortization 23.45
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
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-1 0.9194787
Class A-2 1.0000000
Class A-3 1.0000000
Class A-4 1.0000000
Class A-5 1.0000000
Class A-6 1.0000000
Class M-1 1.0000000
Class M-2 1.0000000
Class M-3 1.0000000
Class CE 0.9746746
Section 4.02 (xv.)
INTEREST DISTRIBUTION AMOUNTS
Interest Reduction from Allocation of:
Interest Carry Prepayment Relief Act
Distribution Forward Interest Realized Interest
Amount Amount Shortfalls Losses Shortfalls
A-1 705503.80 0.00 0.00 0.00 0.00
A-2 374418.78 0.00 0.00 0.00 0.00
A-3 349862.83 0.00 0.00 0.00 0.00
A-4 214312.29 0.00 0.00 0.00 0.00
A-5 186596.03 0.00 0.00 0.00 0.00
A-6 254775.00 0.00 0.00 0.00 0.00
M-1 133306.88 0.00 0.00 0.00 0.00
M-2 93318.75 0.00 0.00 0.00 0.00
M-3 133312.50 0.00 0.00 0.00 0.00
CE 1131020.04 NA 0.00 0.00 0.00
TOTAL 3576426.90 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 14220000.00
Bankruptcy Amount 116717.00
Special Hazard Amount 4740000.00
Section 4.02 (xix.)
Required Overcollateralized Amount 7110600.00
Credit Enhancement Percentage 15.38967%
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 Current Next
Pass-ThroughPass-Through
Rate Rate
A-1 6.0000% 6.0000%
A-2 6.4100% 6.4100%
A-3 6.4600% 6.4600%
A-4 6.5900% 6.5900%
A-5 6.9300% 6.9300%
A-6 6.4500% 6.4500%
M-1 6.7500% 6.7500%
M-2 6.7500% 6.7500%
M-3 6.7500% 6.7500%
CE 2.9124%
P N/A
R-III 6.7500%
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 1131020.04
Delinquency Percentage 2.23299%
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
