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 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 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-NC3
STATEMENT TO CERTIFICATEHOLDERS
Distribution Date: 12/28/98
Beginning Ending
Certificate Certificate
ClassCusip Balance(1) Principal Interest Losses Balance
A-1 79548KZZ4137075888.534373983.09 685379.44 0.00132701905.44
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 0.001119196.27 0.00 7110600.00
P N/A 1.00 0.00 67689.15 0.00 1.00
R-III79548KB49 0.00 0.00 0.00 0.00 0.00
Total 461995489.534373983.093612167.92 0.00457621506.44
PASS THROUGH RATES
Ending Current
Certificate Pass-Through
ClassPrincipalInterest Total Balance Losses Interest Rate
A-1 29.339838 4.597394 33.937232 890.138888 0.000 6.000000%
A-2 0.000000 5.341667 5.341667 1000.00000 0.000 6.410000%
A-3 0.000000 5.383333 5.383333 1000.00000 0.000 6.460000%
A-4 0.000000 5.491667 5.491667 1000.00000 0.000 6.590000%
A-5 0.000000 5.775000 5.775000 1000.00000 0.000 6.930000%
A-6 0.000000 5.375000 5.375000 1000.00000 0.000 6.450000%
M-1 0.000000 5.625000 5.625000 1000.00000 0.000 6.750000%
M-2 0.000000 5.625000 5.625000 1000.00000 0.000 6.750000%
M-3 0.000000 5.625000 5.625000 1000.00000 0.000 6.750000%
CE 0.000000 157.398288 157.3982881000.00000 0.000 2.907032%
P 0.000000 676891.5000 676891.50010.000000 0.000 N/A
R-III0.000000 0.000000 0.000000 0.000000 0.000 6.750000%
(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 192498.12
TRUSTEE FEES 0.00
Section 4.02 (iv.)
P&I ADVANCES Total Advances 792365.30
*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 457566211.81
Stated Principal Balance of REO Properties 55294.32
Section 4.02 (vi.)
MORTGAGE LOAN CHARACTERISTICS
Number of Loans (Beginning) 5258
Aggregate Principal Balance as of the Due Date 461995489.57
Number of Loans (Ending) 5213
Aggregate Principal Balance as of the Due Date 457621506.13
Weighted Average Remaining Term to Maturity 329
Beginning Weighted Average Mortgage Rate 9.712528%
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 8076203.48 117 8060672.16
60-89 days delinquent 2119944.80 31 2114923.68
90 or more days delinquent 1002348.79 12 999497.93
Foreclosure proceedings have commenced8075098.63 93 8050092.61
Bankruptcy proceedings 2881363.67 28 2877262.41
*Note: In accordance with the Master Servicer, the Delinquency Information
relates to the Prepayment Period.
Section 4.02 (viii.)
REO INFORMATIO Loans that became REO properties in the
preceding calendar month:
Unpaid Stated
Principal Principal
Loan Number Balance Balance
Section 4.02 (ix.) Book Value of REO Properties 61213.76
REO BOOK VALUES
Section 4.02 (x.)
PRINCIPAL PREPAYMENTS
Aggregate Amount of Principal Prepayments
Curtailments 126578.51
Payments in Full 3872863.22
Scheduled Principal 374541.36
Prepayment Charges 67689.15
REO Principal Amortization 23.66
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
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 0.8901389
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 0.9654468
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-1 685379.44 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 1119196.27 NA 0.00 0.00 0.00
TOTAL 3544478.77 0.00 0.00 0.00 0.00
Section 4.02 (xvi.)
PREPAYMENT INTEREST SHORTFALLS
Prepayment Interest Shortfalls not covered by Servicer 0.00
Section 4.02 (xvii.)
Relief Act Interest Shortfall 0.00
Section 4.02 (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 15.536770%
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 Rate Interest 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 2.9070%
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 1119196.27
Delinquency Percentage 3.080509%
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
