SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
Annual Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the fiscal year ended
December 31, 1998
Commission file number: 333-33807
CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
(as depositor under the Pooling and Servicing Agreement, dated as of
June 1, 1998, which forms Wilshire Funding Corporation Mortgage
Backed Certificates, Series 1998-WFC2).
WILSHIRE FUNDING CORPORATION MORTGAGE-BACKED CERTIFICATES,
SERIES 1998-WFC2
(Exact name of Registrant as specified in its Charter)
DELAWARE 13-3320910
(State or other jurisdiction (I.R.S. Employer
incorporation or organization) Identification Number)
11 MADISON AVENUE
NEW YORK, NEW YORK 10010
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(212) 325-2000
Securities registered pursuant to Section 12(b) of the Act:
NOT APPLICABLE.
Securities registered pursuant to Section 12(g) of the Act:
NOT APPLICABLE.
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not contained herein,
and will not be contained, to the best of the Registrant's
knowledge, in definitive proxy or information statements
incorporated by reference in Part III of the Form 10-K or any
amendment to this Form 10-K. [ ].
Aggregate market value of voting stock held by non-affiliates of
the Registrant as of December 31, 1998: NOT APPLICABLE.
Number of shares of common stock outstanding as of December 31,
1998: NOT APPLICABLE.
DOCUMENTS INCORPORATED BY REFERENCE
Documents in Part I and Part IV incorporated herein by reference
are as follows:
None
Documents in Part II and Part IV incorporated herein by reference
are as follows:
Monthly Report to Certificateholders as to distributions made on
July 27, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on November 19, 1998.
Monthly Report to Certificateholders as to distributions made on
August 25, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on December 29, 1998.
Monthly Report to Certificateholders as to distributions made on
September 25, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on January 21, 1999.
Monthly Report to Certificateholders as to distributions made on
October 26, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on December 29, 1998.
Monthly Report to Certificateholders as to distributions made on
November 25, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on December 29, 1998.
Monthly Report to Certificateholders as to distributions made on
December 28, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on January 29, 1999.
Monthly Report to Certificateholders as to distributions made on
January 25, 1999, and filed with the Securities and Exchange
Commission on Form 8-K on January 29, 1999.
PART 1
ITEM 1. Business.
The trust fund (the "Trust") created pursuant to a Pooling and
Servicing Agreement dated as of June 1, 1998 (the "Pooling and
Servicing Agreement") among Wilshire Mortgage Funding Company VI,
Inc., a Delaware Corporation, its successors and permitted assigns,
as Unaffiliated Seller (the "Unaffiliated Seller"), Wilshire
Servicing Corporation, a Delaware corporation ("WSC"), its
successors and permitted assigns, as Servicer (the "Servicer"),
Credit Suisse First Boston Mortgage Securities Corp., a Delaware
corporation, as Depositor (the "Depositor"), and Bankers Trust
Company of California, N.A., a national banking association
chartered under the laws of the United States, its successors and
permitted assigns, as Trustee (the "Trustee") and as Back-up
Servicer (the "Back-up Servicer").
The Wilshire Funding Corporation Mortgage-Backed Certificates, Series
1998-WFC2 (the "Certificates") will represent beneficial interests in
a trust (the "Trust"), the assets of which (the "Trust Fund") will
consist primarily of a pool of fixed and adjustable rate, closed-end
loans secured by mortgages on residential one- to four-family
properties, multifamily properties, commercial properties and
unimproved land (the "Mortgage Loans") purchased by Wilshire Funding
Corporation (the "Wilshire Seller") in the ordinary course of its
business and conveyed, together with certain related property
described in the Prospectus Supplement dated September 25, 1997, to
Wilshire Mortgage Funding Company VI. Inc. (the "Seller"). The
Seller will convey such property to Credit Suisse First Boston
Mortgage Securities Corp. (the "Depositor"), which will convey it to
the Trust. The Trust will be created and the Certificates will be
issued pursuant to the Pooling and Servicing Agreement.
The Certificates will consist of the following ten classes (each, a
"Class"); (i) the Class A-I Certificates, the Class A-II Certificates
and the Class A-III Certificates (collectively, the "Class A
Certificates"); (ii) the Class IO Certificates; (iii) the Class M-1
Certificates, the Class M-2 Certificates and the Class M-3
Certificates (collectively, the "Class M Certificates"); and (iv) the
Class B-1 Certificates, the Class B-2 Certificates and the Class B-3
Certificates (collectively, the "Class B Certificates"). The Class A
Certificates and the Class IO Certificates are referred to in the
Prospectus Supplement dated September 25, 1997 collectively as the
"Senior Certificates." The Class M Certificates and the Class B
Certificates are referred to in the Prospectus Supplement dated
September 25, 1997 as the "Subordinate Certificates." The Class A-I
Certificates and Subordinate Certificates are referred to in the
Prospectus Supplement dated September 25, 1997 as the "Group I
Certificates." The Trust will also issue a "residual interest" with
respect to each REMIC held by the Trust (collectively, the "Residual
Certificates").
The Certificates in the aggregate will evidence the entire beneficial
ownership interest in the Trust Fund. The Trust Fund will consist
of: (i) the Mortgage Loans; (ii) such assets as from the time to time
are identified as deposited in respect of the Mortgage Loans in the
Collection Account and the Certificate Account and belonging to the
Trust Fund; (iii) property acquired by foreclosure of such Mortgage
Loans or deed in lieu of foreclosure; (iv) any hazard or other
insurance policies with respect to the Mortgage Loans; and (v) all
proceeds of the foregoing.
Information with respect to the business of the Trust would not be
meaningful because the only "business" of the Trust is the
collection on the Mortgage Loans and distribution of payments on
the Certificates to Certificateholders. This information is
accurately summarized in the Monthly Reports to Certificateholders,
which are filed on Form 8-K. There is no additional relevant
information to report in response to Item 101 of Regulation S-K.
ITEM 2. Properties.
The Depositor owns no property. The Wilshire Funding Corporation
Mortgage Backed Certificates, Series 1998-WFC2, in the aggregate,
represent the beneficial ownership in a Trust consisting primarily of
the Mortgage Loans. The Trust will acquire title to real estate only
upon default of the mortgagors under the Mortgage Loan. Therefore,
this item is inapplicable.
ITEM 3. Legal Proceedings.
None.
ITEM 4. Submission of Matters to a Vote of Security Holders.
No matters were submitted to a vote of Certificateholders during
the fiscal year covered by this report.
PART II
ITEM 5. Market for Registrant's Common Equity and Related
Stockholder Matters.
The Wilshire Funding Corporation Mortgage Backed Certificates, Series
1998-WFC2 represent, in the aggregate, the beneficial ownership in a
trust fund consisting primarily of the Mortgage Loans. The
Certificates are owned by Certificateholders as trust beneficiaries.
Strictly speaking, Registrant has no "common equity," but for
purposes of this Item only, Registrant's Wilshire Funding Corporation
Mortgage Backed Certificates, Series 1998-WFC2 are treated as "common
equity."
(a) Market Information. There is no established public trading
market for Registrant's Certificates. The Registrant believes the
Certificates are traded primarily in intra-dealer markets and non-
centralized inter-dealer markets.
(b) Holders. The number of registered holders of all classes of
Certificates on December 31, 1998 was: 13.
(c) Dividends. Not applicable. The information regarding
dividends required by sub-paragraph (c) of Item 201 of Regulation
S-K is inapplicable because the Trust does not pay dividends.
However, information as to distribution to Certificateholders is
provided in the Monthly Reports to Certificateholders for each
month of the fiscal year in which a distribution to
Certificateholders was made.
ITEM 6. Selected Financial Data.
Not Applicable. Because of the limited activities of the Trust,
the Selected Financial Data required by Item 301 of Regulation
S-K does not add relevant information to that provided by the
Monthly Reports to Certificateholders, which are filed on a
monthly basis on Form 8-K.
ITEM 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Not Applicable. The information required by Item 303 of
Regulation S-K is inapplicable because the Trust does not have
management per se, but rather the Trust has a Trustee who causes
the preparation of the Monthly Reports to Certificateholders.
The information provided by the Monthly Reports to
Certificateholders, which are filed on a monthly basis on Form
8-K, does provide the relevant financial information regarding
the financial status of the Trust.
ITEM 8. Financial Statements and Supplementary Data.
Monthly Report to Certificateholders as to distributions made on
July 27, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on November 19, 1998.
Monthly Report to Certificateholders as to distributions made on
August 25, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on December 29, 1998.
Monthly Report to Certificateholders as to distributions made on
September 25, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on January 21, 1999.
Monthly Report to Certificateholders as to distributions made on
October 26, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on December 29, 1998.
Monthly Report to Certificateholders as to distributions made on
November 25, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on December 29, 1998.
Monthly Report to Certificateholders as to distributions made on
December 28, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on January 29, 1999.
Monthly Report to Certificateholders as to distributions made on
January 25, 1999, and filed with the Securities and Exchange
Commission on Form 8-K on January 29, 1999.
Annual Statement of Compliance by the Master Servicer is not
currently available and will be subsequently filed on Form 8.
Independent Accountant's Report on Servicer's will be subsequently
filed on Form 8.
ITEM 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure.
None.
PART III
ITEM 10. Directors and Executive Officers of Registrant.
Not Applicable. The Trust does not have officers or directors.
Therefore, the information required by items 401 and 405 of
Regulation S-K are inapplicable.
ITEM 11. Executive Compensation.
Not Applicable. The Trust does not have officers or directors to
whom compensation needs to be paid. Therefore, the information
required by item 402 of regulation S-K is inapplicable.
ITEM 12. Security Ownership of Certain Beneficial Owners and
Management.
(a) Security ownership of certain beneficial owners. Under the
Indenture governing the Trust, the holders of the Certificates
generally do not have the right to vote and are prohibited from
taking part in management of the Trust. For purposes of this Item
and Item 13 only, however, the Certificateholders are treated as
"voting security" holders.
As of December 31, 1998, the following are the only persons known
to the Registrant to be the beneficial owners of more than 5% of
any class of voting securities:
The Bank of New York
Cecile Lamarco
925 Patterson Plank Rd.
Secaucus, NJ 07094
Series 1998-2
Class A-I
$22,692,783.00 (Original Principal Balance)
100% (Percentage of Class)
Credit Suisse First Boston Corporation
c/o ADP Proxy Services
Series 1998-2
Class A-II
$33,552,979.00 (Original Principal Balance)
100% (Percentage of Class)
The Bank of New York
Cecile Lamarco
925 Patterson Plank Rd.
Secaucus, NJ 07094
Series 1998-2
Class A-III
$13,410,928.00 (Original Principal Balance)
33.3% (Percentage of Class)
Citibank, N.A.
Marta Hoosain
P.O.Box 30576
Tampa, FL 33630-3576
Series 1998-2
Class A-III
$13,410,928.00 (Original Principal Balance)
33.3% (Percentage of Class)
The Northern Trust Company
Jarvis A. McKee
801 S. Canal C-IN
Chicago, IL 60607
Series 1998-2
Class A-III
$3,000,000.00 (Original Principal Balance)
7.5% (Percentage of Class)
PNC Bank, National Association
Glen Metzger
1835 Market Street
11 Penn Center, 15th Floor
Philadelphia, PA 19103
Series 1998-2
Class A-III
$8,385,928.00 (Original Principal Balance)
20.8% (Percentage of Class)
Credit Suisse First Boston Corporation
c/o ADP Proxy Services
Series 1998-2
Class IO
$119,794,194.00 (Original Principal Balance)
100% (Percentage of Class)
Credit Suisse First Boston Corporation
c/o ADP Proxy Services
Series 1998-2
Class M-1
$12,059,818.00 (Original Principal Balance)
100% (Percentage of Class)
Credit Suisse First Boston Corporation
c/o ADP Proxy Services
Series 1998-2
Class M-2
$11,255,830.00 (Original Principal Balance)
100% (Percentage of Class)
SSB - Trust Custody
David Paldino
225 Franklin street, M4
Boston, MA 02110
Series 1998-2
Class M-3
$8,843,866.00 (Original Principal Balance)
100% (Percentage of Class)
(b) Security ownership of management. Not Applicable. The
Trust does not have any officers or directors. Therefore, the
information required by Item 403 of Regulation S-K is
inapplicable.
(c) Changes in control. Not Applicable. Since
Certificateholders do not possess, directly or indirectly, the
power to direct or cause the direction of the management and
policies of the Trust, other than in respect to certain required
consents regarding any amendments to the Indenture, the
information requested with respect to item 403 of Regulation
S-K is inapplicable.
ITEM 13. Certain Relationships and Related Transactions.
(a) Transactions with management and others. Registrant knows
of no transaction or series of transactions during the fiscal
year ended December 31, 1998, or any currently proposed
transaction or series of transactions, in an amount exceeding
$60,000 involving the Registrant in which the Certificateholders
identified in Item 12(a) had or will have a direct or indirect
material interest. There are no persons of the types described
in Item 404(a)(1),(2) and (4) of Regulation S-K, however, the
information required by Item 404(a)(3) of Regulation S-K is
hereby incorporated by reference in Item 12 herein.
(b) Certain business relationships. None.
(c) Indebtedness of management. Not Applicable. The Trust does
not have management consisting of any officers or directors.
Therefore, the information required by item 404 of Regulation S-K
is inapplicable.
(d) Transactions with promoters. Not Applicable. The Trust
does not use promoters. Therefore, the information required by
item 404 of Regulation S-K is inapplicable.
PART IV
ITEM 14. Exhibits, Financial Statement Schedules, and Reports on
Form 8-K.
(a) The following is a list of documents filed as part of this
report:
EXHIBITS
Monthly Report to Certificateholders as to distributions made on
July 27, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on November 19, 1998.
Monthly Report to Certificateholders as to distributions made on
August 25, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on December 29, 1998.
Monthly Report to Certificateholders as to distributions made on
September 25, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on January 21, 1999.
Monthly Report to Certificateholders as to distributions made on
October 26, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on December 29, 1998.
Monthly Report to Certificateholders as to distributions made on
November 25, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on December 29, 1998.
Monthly Report to Certificateholders as to distributions made on
December 28, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on January 29, 1999.
Monthly Report to Certificateholders as to distributions made on
January 25, 1999, and filed with the Securities and Exchange
Commission on Form 8-K on January 29, 1999.
Annual Statement of Compliance by the Master Servicer is not
currently available and will be subsequently filed on Form 8.
Independent Accountant's Report on Servicer's servicing
activities is not currently available and will be subsequently
filed on Form 8.
(b) The following Reports on Form 8-K were filed during the last
quarter of the period covered by this Report:
Monthly Report to Certificateholders as to distributions made on
October 26, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on December 29, 1998.
Monthly Report to Certificateholders as to distributions made on
November 25, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on December 29, 1998.
Monthly Report to Certificateholders as to distributions made on
December 28, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on January 29, 1999.
(c) The exhibits required to be filed by Registrant pursuant to
Item 601 of Regulation S-K are listed above and in the Exhibit
Index that immediately follows the signature page hereof.
(d) Not Applicable. The Trust does not have any subsidiaries or
affiliates. Therefore, no financial statements are filed with
respect to subsidiaries or affiliates.
Supplemental information to be furnished with reports filed
pursuant to Section 15(d) by registrants which have not
registered securities pursuant to Section 12 of the Act.
No annual report, proxy statement, form of proxy or other
soliciting material has been sent to Certificateholders, and the
Registrant does not contemplate sending any such materials
subsequent to the filing of this report.
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) 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.
By: Bankers Trust Company of California, N.A.,
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 June 1, 1998.
By: /s/Judy L. Gomez
Judy L. Gomez
Assistant Vice President
Date: March 31, 1999
EXHIBIT INDEX
Exhibit Document
1.1 Monthly Report to Certificateholders as to distributions made on
July 27, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on November 19, 1998.
1.2 Monthly Report to Certificateholders as to distributions made on
August 25, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on December 29, 1998.
1.3 Monthly Report to Certificateholders as to distributions made on
September 25, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on January 21, 1999.
1.4 Monthly Report to Certificateholders as to distributions made on
October 26, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on December 29, 1998.
1.5 Monthly Report to Certificateholders as to distributions made on
November 25, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on December 29, 1998.
1.6 Monthly Report to Certificateholders as to distributions made on
December 28, 1998, and filed with the Securities and Exchange
Commission on Form 8-K on January 29, 1999.
1.7 Monthly Report to Certificateholders as to distributions made on
January 25, 1999, and filed with the Securities and Exchange
Commission on Form 8-K on January 29, 1999.
