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): October 26, 1998
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
(as depositor under the Pooling and Servicing Agreement,
dated as of September 1, 1998, providing for the issuance of
Asset-Backed Floating Rate Certificates, Series 1998-OPT2)
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 Event
On October 26, 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 October 26, 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 October 26, 1998.
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
NEW CENTURY ASSET-BACKED FLOATING RATE CERTIFICATES
SERIES 1998-OPT2
STATEMENT TO CERTIFICATEHOLDERS
Distribution Date: 10/26/98
Beginning Ending
Certificate Certificate
ClassCusip Balance(1) Principal Interest LossesBalance
A 79548KE38274239000.00 1984086.78 1363472.51 0.00 272254913.22
M-1 79548KE46 25710000.00 0.00 132032.46 0.00 25710000.00
M-2 79548KE53 18854000.00 0.00 101045.00 0.00 18854000.00
M-3 79548KE61 14569000.00 0.00 85231.18 0.00 14569000.00
CE 7955199A7 9427363.98 0.00 858281.13 0.00 9427363.98
P 7955199E9 100.00 0.00 30582.66 0.00 100.00
R-III79548KE95 100.00 100.00 0.77 0.00 0.00
Total 342799563.98 1984186.78 2570645.71 0.00 340815377.20
AMOUNTS PER $1,000 UNIT PASS THROUGH RATES
Ending Current
Certificate Pass-Through
ClassPrincipal Interest Total Balance LossesInterest Rate
A 7.234882 4.971840 12.20672 992.76512 0.000 5.77375%
M-1 0.000000 5.135452 5.135452 1000.00000 0.000 5.96375%
M-2 0.000000 5.359340 5.359340 1000.00000 0.000 6.22375%
M-3 0.000000 5.850174 5.850174 1000.00000 0.000 6.79375%
CE 0.000000 91.04148 91.04148 1000.00000 0.000 3.00449%
P 0.000000 305826.6000 305826.600 1000.00000 0.000 NA
R-III1000.000 7.70000 1007.70000 0.00000 0.000 5.77375%
Section 4.02 (iii.)
MASTER SERVICER COMPENSATION 142833.23
TRUSTEE FEES 0.00
Section 4.02 (iv.)
P&I ADVANCES Total Advances 101130.58
*Note: P&I Advances are made on Mortgage Loans Delinquent
as of the Determination Date.
Section 4.02 (v.)
BALANCES AS OF 26-Oct-98
Stated Principal Balance of Mortgage Loans 340815377.20
Stated Principal Balance of REO Properties 0.00
Section 4.02 (vi.)
MORTGAGE LOAN CHARACTERISTICS
Number of Loans 2,967
Aggregate Principal Balance as of the Due Date 340815377.20
Weighted Average Remaining Term to Maturity 356
Weighted Average Mortgage Rate 9.39171%
Unpaid Stated
Section 4.02 (vii.) Principal Principal
DELINQUENCY INFORMATION Balance NumberBalance
30-59 days delinquent 1846195.52 18 1845386.04
60-89 days delinquent 0.00 0 0.00
90 or more days delinquent 0.00 0 0.00
Foreclosures 830841.18 13 830492.52
Bankruptcies 848016.42 10 847628.58
Section 4.02 (viii.)
REO INFORMATIO Loans that became REO properties in the
preceding calendar month:
Unpaid Stated
Principal Principal
Loan NumberBalance Balance
Section 4.02 (ix.) Total Book Value of REO Properties:
REO BOOK VALUES 0.00
Section 4.02 (x.)
PRINCIPAL PREPAYMENTS
Aggregate Amount of Principal Prepayments
Curtailments 10580.39
Payments in Full 1791787.09
Prepayment Charges 30582.66
REO Principal Amortization 0.00
Section 4.02 (xi.) Realized Losses that were incurred during
REALIZED LOSSES the related Prepayment Period:
Total Realized Losses 0.00
Which Include:
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 0.992765
Class M-1 1.000000
Class M-2 1.000000
Class M-3 1.000000
Class CE 0.994212
Section 4.02 (xv.)
INTEREST DISTRIBUTION AMOUNTS
Interest Reduction from Allocation of:
Carry Prepayment Relief Act
Interest Forward Interest Interest
Amount Amount Shortfalls LossesShortfalls
A 1363472.51 0.00 0.00 0.00 0.00
M-1 132032.46 0.00 0.00 0.00 0.00
M-2 101045.00 0.00 0.00 0.00 0.00
M-3 85231.18 0.00 0.00 0.00 0.00
CE 858281.13 NA 0.00 0.00 0.00
TOTAL 2540062.28 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.)
Required Overcollateralized Amount 9427363.98
Credit Enhancement Percentage 20.11657%
Section 4.02 (xix.)
Overcollateralization Increase Amount 0.00
Section 4.02 (xx.)
Overcollateralization Reduction Amount 0.00
Section 4.02 (xxi.)
PASS THROUGH RATE
A 5.77375% 5.39938%
M-1 5.96375% 5.58938%
M-2 6.22375% 5.84938%
M-3 6.79375% 6.41938%
CE 3.00449%
PERFORMANCE MEASURES
Net Monthly Excess Cash Flow 858281.13
Delinquency Percentage 0.49238%
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: October 31, 1998
