September 17, 1998
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Salomon Brothers Mortgage Securities VII, Inc. Asset-Backed
Floating Rate Certificates, Series 1998-OPT1;
File No. 333-50153-01.
Ladies and Gentlemen:
Enclosed herewith for filing on behalf of the trust fund (the
"Trust") created pursuant to a Pooling and Servicing Agreement dated
as of July 1, 1998 (the "Pooling and Servicing Agreement")
among Salomon Brothers Mortgage Securities VII, Inc., as Depositor,
Option One Mortgage Corporation, as Master Servicer, and Bankers
Trust Company, as Trustee.
The Series 1998-OPT1 Certificates will consist of nine classes of
certificates (collectively, the "Certificates"), designated as: (i)
the Class A Certificates (the "Senior Certificates"), (ii) the Class
M-1 Certificates, the Class M-2 Certificates and the Class M-3
Certificates (collectively, the "Mezzanine Certificates"), (iii) the
Class CE Certificates (together with the Mezzanine Certificates, the
"Subordinate Certificates"), (iv) the Class P Certificates and (v)
the Class R-I Certificates, the Class R-II Certificates and the
R-III Certificates (collectively, the "Residual Certificates"). Only
the Class A Certificates, the Mezzanine Certificates and the Residual
Certificates (collectively, the "Offered Certificates") are offered
hereby.
The Offered Certificates were registered under the Securities Act of
1933, as amended, by a Registration Statement on Form S-11 (File No.
333-50153-01). As a result, the Trust is subject to the filing
requirements of Section 15(d) of the Securities Exchange Act of 1934,
as amended (the "Exchange Act"). The Trust intends to fulfill these
filing requirements in the manner described herein:
The Trust will file, promptly after each Distribution Date (as
defined in the Pooling and Servicing Agreement), a Current Report on
Form 8-K in substantially the form enclosed herewith, including as
an exhibit thereto the applicable Distribution Date report. Each
such Current Report will also disclose under Item 5 any matter
occurring during the relevant reporting period which would be
reportable under Item 1, 2, 4 or 5 of Part II of Form 10-Q.
The Trust will file a Current Report on Form 8-K promptly after the
occurrence of any event described under Item 2, 3, 4 or 5 thereof,
responding to the requirements of the applicable Item.
Within 90 days after the end of each fiscal year, the Trust will file
an annual report of Form 10-K which responds to Items 2, 3, and 4 of
Part I, Items 5 and 9 of Part II, Items 12 and 13 of Part III and
Item 14 of Part IV thereof, and include as exhibits thereto certain
information from the Distribution Date reports aggregated for such
year and a copy of the independent accountants' annual compliance
statement required under the Pooling and Servicing Agreement.
The Trust will follow the above procedures except for any fiscal year
as to which its reporting obligations under Section 15(d) of the
Exchange Act have been suspended pursuant to such Section. In such
event, the Trust will file a Form 15 as required under Rule 15d-6.
Should you wish to discuss the above filing procedures, please call
Judy L. Gomez at (714) 253-7562.
Sincerely,
/s/ Judy L. Gomez
Assistant Vice President
Bankers Trust Company
S.E.C. Reporting Agent for Salomon Brothers Mortgage Securities VII,
Inc. Asset-Backed Floating Rate Certificates, Series 1998-OPT1.
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): August 26,
1998.
SALOMON BROTHERS MORTGAGE SECURITIES VI, INC.
(Salomon Brothers Mortgage Securities VII, Inc., as Depositor,
Option One Mortgage Corporation, as Master Servicer, and
Bankers Trust Company, as Trustee.)
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC. ASSET-BACKED FLOATING
RATE CERTIFICATES, SERIES 1998-OPT1.
(Exact name of Registrant as specified in its Charter)
DELAWARE
(State or Other Jurisdiction of Incorporation)
333-50153-01 13-3439681
(Commission File Number) (I.R.S. Employer Identification No.)
SEVEN WORLD TRADE CENTER
29TH FLOOR
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
Attached hereto is a copy of the Monthly Remittance Statements
to the Certificateholders which was derived from the monthly
information submitted by the Master Servicer of the Trust to the
Trustee.
Item 7. Financial Statement and Exhibits
Exhibits: (as noted in Item 5 above)
Monthly Report to Certificateholders as to distributions made on
August 25, 1998.
SIGNATURE
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, hereunto duly authorized.
Bankers Trust Company, not in its
Individual capacity, but solely as a
duly authorized agent of the Registrant
pursuant to the Pooling and Servicing
Agreement, dated as of July 1, 1998.
Date: September 17, 1998 By: /s/ Judy L. Gomez
Judy L. Gomez
Assistant Vice President
EXHIBIT INDEX
Sequential
Document Page Number
Monthly Report to Certificateholders as to distributions 4
made on August 26, 1998.
Salomon Brothers Mortgage Securities VII, Inc.
REMIC
Series 1998-OPT1
Statement to Certificateholders
DISTRIBUTION IN DOLLARS
PRIOR
ORIGINAL PRINCIPAL
CLASS FACE VALUE BALANCE INTEREST PRINCIPAL
A 288,440,000.00 288,440,000.00 1,291,369.92 1,877,681.03
M-1 28,296,000.00 28,296,000.00 133,285.95 0.00
M-2 21,907,000.00 21,907,000.00 107,961.96 0.00
M-3 16,430,000.00 16,430,000.00 88,254.20 0.00
*CE 10,040,847.23 10,040,847.23 0.00 0.00
P 100.00 100.00 0.00 0.00
R-III 100.00 100.00 0.45 100.00
TOTALS 365,114,047.23 365,114,047.23 1,620,872.48 1,877,781.03
CURRENT
REALIZED DEFERRED PRINCIPAL
CLASS TOTAL LOSSES INTEREST BALANCE
A 3,169,050.95 0.00 0.00 38,616,530.56
M-1 133,285.95 0.00 0.00 28,982,434.56
M-2 107,961.96 0.00 0.00 21,907,000.00
M-3 88,254.20 0.00 0.00 16,430,000.00
*CE 0.00 0.00 0.00 11,141,823.33
P 0.00 0.00 0.00 100.00
R-III 100.45 0.00 0.00 0.00
TOTALS 3,498,653.51 0.00 0.00 364,337,242.30
FACTOR INFORMATION PER $1000 OF ORIGINAL FACE
PRIOR CURRENT
PRINCIPAL PRINCIPAL
CLASS CUSIP BALANCE INTEREST PRINCIPAL TOTAL BALANCE
A 79548KB64 1,000.000000 3.609076 5.247678 8.856754 993.490220
M-1 79548KB72 1,000.000000 46.209246 0.000000 46.209246 1,000.000000
M-2 79548KB80 1,000.000000 381.544953 0.000000 381.544953 1,000.000000
M-3 79548KB98 1,000.000000 402.858447 0.000000 402.858447 1,000.000000
*CE SB98O1100 1,000.000000 0.000000 0.000000 0.000000 1,109.649721
P SB98O1200 1,000.000000 0.000000 0.000000 0.000000 1,000.000000
R-III 79548KC48 1,000.000000 4.500000 1,000.000000 1,004.500000 0.000000
PASS-THROUGH RATES
CLASS CURRENT NEXT
A 5.756250% 5.748440%
M-1 6.056250% 6.048440%
M-2 6.336250% 6.328440%
M-3 6.906250% 6.898440%
*CE 2.110931% 2.012095%
P 0.000000% 0.000000%
R-III 5.756250% 5.748440%
SELLER: Salomon Brothers Mortgage Securities VII, Inc.
ADMINISTRATOR: Barbara Campbell
Bankers Trust Company
3 Park Plaza
Irvine, CA 92614
SERVICER: Option One Mortgage Corp.
LEAD UNDERWRITER: Salomon Brothers Mortgage Securities VII, Inc.
RECORD DATE: July 31, 1998
DISTRIBUTION DATE: August 26, 1998 FACTOR INFORMATION: (800)735-7777
COPYRIGHT 1998 Bankers Trust Company
Salomon Brothers Mortgage Securities VII, Inc.
REMIC
Series 1998-OPT1
Statement to Certificateholders
Distribution Date: August 26, 1998
SERVICING FES PAID FOR THE CURRENT PERIOD: 146,681.59
DELINQUENT SERVICING FEES FOR THE CURRENT PERIOD: 5,449.35
NET ACCRUED SERVICING FEE FOR THE CURRENT PERIOD: 152,130.94
CURRENT PERIODS MONTHLY SERVICER ADVANCED PRINCIPAL 5,777.09
CURRENT PERIODS MONTHLY SERVICER ADVANCED INTEREST 107,110.43
DELINQUENT LOAN
INFORMATION: 30 TO 59 69 TO 89 91 + TOTAL
DAYS DAYS DAYS
PRINCIPAL BALANCE 2,370,878.72 373,809.33 0.00 2,744,688.05
NUMBER OF LOANS 27 1 0 28
FORECLOSURE LOAN
INFORMATION:
PRINCIPAL BALANCE 68,150.60 883,911.51 0.00 952,062.11
NUMBER OF LOANS 1 11 0 12
BANKRUPTCY LOAN INFORMATION:
PRINCIPAL BALANCE 71,915.70 0.00 0.00 71,915.70
NUMBER OF LOANS 1 0 0 1
REO LOAN INFORMATION:
PRINCIPAL BALANCE 0.00 0.00 0.00 0.00
NUMBER OF LOANS 0 0 0 0
BOOK VALUE OF REO PROPERTY: 0.00
GUARANTEED DISTRIBUTION AMOUNT: 3,498,854.91
GUARANTEED DISTRIBUTION OF PRINCIPAL: 776,704.70
GUARANTEED DISTRIBUTION OF INTEREST: 2,873,980.91
INSURANCE PAYMENTS MADE TO CLASS A: 0.00
CERTIFICATE INSURER REIMBURSEMENTS: 0.00
CUMULATIVE INSURANCE PAYMENTS TO CLASS A: 0.00
ENDING AGGREGATE MORTGAGE LOAN COUNT: 3,294.00
ENDING AGGREGATE PRINCIPAL MORTGAGE LOAN BALANCE: 364,337,242.30
WEIGHTED AVERAGE MONTHS TO MATURITY: 356.00
WEIGHTED AVERAGE MORTGAGE RATE: 9.4457%
PRINCIPAL PREPAYMENTS FOR CURRENT PERIOD: 582,924.67
CLASS A INTEREST DISTRIBUTION AMOUNT: 1,291,369.92
CLASS A INTEREST PAID UNDER CERTIFICATE POLICY: 0.00
AGGREGATE NON COVERED PREPAYMENT INTEREST SHORTFALL: 0.00
AGGREGATE RELIEF ACT INTEREST SHORTFALL: 0.00
COPYRIGHT 1998 Bankers Trust Company
Salomon Brothers Mortgage Securities VII, Inc.
REMIC
Series 1998-OPT1
Statement to Certificateholders
Distribution Date: August 26, 1998
EXTRAORDINARY TRUST FUND EXPENSES WITHDRAWN FROM COLLECTION ACCOUNT: 0.00
REQUIRED OVERCOLLATERALIZED AMOUNT 10
CREDIT ENHANCEMENT PERCENTAGE: 21.04%
OVERCOLLATERALIZATION INCREASE AMOUNT: 0.00
OVERCOLLATERALIZATION REDUCTION AMOUNT: 300.23
CURRENT PERIODS AGGREGATE AMOUNT OF REALIZED LOSSES: 0.00
CURRENT PERIODS EXTRAORDINARY LOSSES: 0.00
CURRENT PERIODS FRAUD LOSSES: 0.00
CURRENT PERIODS SPECIAL HAZARD LOSSES: 0.00
CURRENT PERIODS BANKRUPTCY LOSSES: 0.00
BANKRUPTCY AMOUNT 100,000.00
FRAUD LOSS AMOUNT 3,448,647.47
SPECIAL HAZARD AMOUNT 3,651,142.00
DETAIL OF LOANS THAT BECAME REO DURING COLLECTION PERIOD
Loan Number Unpaid Stated Principal Date Property
Principal Balance Principal Balance Became REO
COPYRIGHT 1998 Bankers Trust Company
