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): September 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 September 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 September 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 September 25, 1998.
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
NEW CENTURY ASSET-BACKED FLOATING RATE CERTIFICATES
SERIES 1998-NC3
STATEMENT TO CERTIFICATEHOLDERS
Distribution Date: 09/25/98
Beginning Ending
Certificate Principal Interest Realized Certificate
ClassCusip Balance(1) Distribution Distribution Losses Balance
A-1 79548KZZ4 145,819,221.42 2,211,359.31 729,096.11 0.00 143,607,862.11
A-2 79548KA24 70,094,000.00 0.00 374,418.78 0.00 70,094,000.00
A-3 79548KA32 64,990,000.00 0.00 349,862.83 0.00 64,990,000.00
A-4 79548KA40 39,025,000.00 0.00 214,312.29 0.00 39,025,000.00
A-5 79548KA57 32,311,000.00 0.00 186,596.03 0.00 32,311,000.00
A-6 79548KA65 47,400,000.00 0.00 254,775.00 0.00 47,400,000.00
M-1 79548KA73 23,699,000.00 0.00 133,306.88 0.00 23,699,000.00
M-2 79548KA81 16,590,000.00 0.00 93,318.75 0.00 16,590,000.00
M-3 79548KA99 23,700,000.00 0.00 133,312.50 0.00 23,700,000.00
CE NA 7,110,600.00 0.00 1,145,591.79 0.00 7,110,600.00
P NA 1.00 0.00 25,101.32 0.00 1.00
R-III79548KB49 0.00 0.00 0.00 0.00 0.00
Total 470,738,822.42 2,211,359.31 3,639,692.28 0.00 468,527,463.11
PASS THROUGH RATES
Ending Current
Principal Interest Total Certificate Realized Pass-Through
ClassDistribution DistributionDistribution Balance Losses Interest Rate
A-1 14.833373 4.890637 19.724010 963.293950 0.000000 6.00000%
A-2 0.000000 5.341667 5.341667 1000.000000 0.000000 6.41000%
A-3 0.000000 5.383333 5.383333 1000.000000 0.000000 6.46000%
A-4 0.000000 5.491667 5.491667 1000.000000 0.000000 6.59000%
A-5 0.000000 5.775000 5.775000 1000.000000 0.000000 6.93000%
A-6 0.000000 5.375000 5.375000 1000.000000 0.000000 6.45000%
M-1 0.000000 5.625000 5.625000 1000.000000 0.000000 6.75000%
M-2 0.000000 5.625000 5.625000 1000.000000 0.000000 6.75000%
M-3 0.000000 5.625000 5.625000 1000.000000 0.000000 6.75000%
CE 0.000000 161.110425 161.110425 1000.000000 0.000000 2.92033%
P 0.00000 251013.200000 251013.20000 10.000000 0.000000 NA
R-III 0.0000 0.000000 0.000000 0.000000 0.000000 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
as Interest Distributions represent payments of Prepayment Charges.
Section 4.02 (iii.)
MASTER SERVICER COMPENSATION 196,141.37
TRUSTEE FEES 2,353.69
Section 4.02 (iv.)
P&I ADVANCES Total Advance 236,539.25
*Note: P&I Advances are made on Mortgage Loans Delinquent
as of the Determination Date.
Section 4.02 (v.)
BALANCES AS OF: 25-Sep-98
Stated Principal Balance of Mortgage Loans 468,442,699.27
Stated Principal Balance of REO Properties 84,763.84
Section 4.02 (vi.)
MORTGAGE LOAN CHARACTERISTICS
Number of Loans 5,333
Aggregate Principal Balance as of the Due Date 468,527,463.11
Weighted Average Remaining Term to Maturity 331
Weighted Average Mortgage Rate 9.72026%
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 5,372,250.28 72 5,363,404.39
60-89 days delinquent 411,403.04 6 411,024.21
90 or more days delinquent 141,131.60 2 140,898.22
Foreclosure proceedings have commenced 2,416,697.05 24 2,413,102.42
Bankruptcy proceedings 1,174,448.12 10 1,173,510.13
*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
0 0.00 0.00
Section 4.02 (ix.) Total Book Value of REO Properties: 86,879.71
REO BOOK VALUES
Section 4.02 (x.)
PRINCIPAL PREPAYMENTS
Aggregate Amount of Principal Prepayments
Curtailments 105,594.46
Payments in Full 1,736,321.57
Prepayment Charges 25,101.32
REO Principal Amortization 47.94
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-1 0.963294
Class A-2 1.000000
Class A-3 1.000000
Class A-4 1.000000
Class A-5 1.000000
Class A-6 1.000000
Class M-1 1.000000
Class M-2 1.000000
Class M-3 1.000000
Class CE 0.988455
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-1 729,096.11 0.00 0.00 0.00 0.00
A-2 374,418.78 0.00 0.00 0.00 0.00
A-3 349,862.83 0.00 0.00 0.00 0.00
A-4 214,312.29 0.00 0.00 0.00 0.00
A-5 186,596.03 0.00 0.00 0.00 0.00
A-6 254,775.00 0.00 0.00 0.00 0.00
M-1 133,306.88 0.00 0.00 0.00 0.00
M-2 93,318.75 0.00 0.00 0.00 0.00
M-3 133,312.50 0.00 0.00 0.00 0.00
CE 1,145,591.79 NA 0.00 0.00 0.00
TOTAL 3,614,590.96 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 14,220,000.00
Bankruptcy Amount 116,717.00
Special Hazard Amount 4,740,000.00
Section 4.02 (xix.) Required Overcollateralized Amount 7,110,600.00
Credit Enhancement Percentage 15.17512%
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-Through Pass-Through
Interest RateInterest Rate
A-1 6.00000% 6.00000%
A-2 6.41000% 6.41000%
A-3 6.46000% 6.46000%
A-4 6.59000% 6.59000%
A-5 6.93000% 6.93000%
A-6 6.45000% 6.45000%
M-1 6.75000% 6.75000%
M-2 6.75000% 6.75000%
M-3 6.75000% 6.75000%
CE 2.92033%
P NA
R-III 6.75000%
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 1,145,591.79
Delinquency Percentage 0.90140%
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: September 30, 1998
