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): November 25, 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 Events
On November 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 November 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 November 25, 1998.
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
NEW CENTURY ASSET-BACKED FLOATING RATE CERTIFICATES
SERIES 1998-OPT2
STATEMENT TO CERTIFICATEHOLDERS
Distribution Date: 11/25/98
Beginning Ending
Certificate Certificate
ClassCusip Balance(1) Principal Interest Losses Balance
A 79548KE38 272254913.22 2498775.31 1225006.44 0.00 269756137.91
M-1 79548KE46 25710000.00 0.00 119752.47 0.00 25710000.00
M-2 79548KE53 18854000.00 0.00 91903.51 0.00 18854000.00
M-3 79548KE61 14569000.00 0.00 77936.62 0.00 14569000.00
CE 7955199A7 9427363.98 0.00 1011540.09 0.00 9427363.98
P 7955199E9 100.00 0.00 26260.87 0.00 100.00
R-III79548KE95 0.00 0.00 0.00 0.00 0.00
Total 340815377.20 2498775.31 2552400.00 0.00 338316601.89
AMOUNTS PER $1,000 UNIT PASS THROUGH RATES
Ending Current
Certificate Pass-Through
ClassPrincipal Interest Total Balance Losses InterestRate
A 9.11167 4.4669301 13.57860 983.65345 0.0000 5.39938%
M-1 0.00000 4.6578168 4.657817 1000.00000 0.0000 5.58938%
M-2 0.00000 4.8744834 4.874483 1000.00000 0.0000 5.84938%
M-3 0.00000 5.3494831 5.349483 1000.00000 0.0000 6.41938%
CE 0.00000 107.2982959 107.29830 1000.00000 0.0000 3.56160%
P 0.00000 262608.7000 262608.700 1000.00000 0.0000 NA
R-III 0.00000 0.0000000 0.00000 0.00000 0.0000 5.39938%
Section 4.02 (iii.)
MASTER SERVICER COMPENSATION 142006.41
TRUSTEE FEES 0.00
Section 4.02 (iv.)
P&I ADVANCES Total Advances 128270.85
*Note: P&I Advances are made on Mortgage Loans Delinquent
as of the Determination Date.
Section 4.02 (v.)
BALANCES AS OF: 25-Nov-98
Stated Principal Balance of Mortgage Loans 338316601.89
Stated Principal Balance of REO Properties 0.00
Section 4.02 (vi.)
MORTGAGE LOAN CHARACTERISTICS
Number of Loans 2,950
Aggregate Principal Balance as of the Due Date 338316601.89
Weighted Average Remaining Term to Maturity 355
Weighted Average Mortgage Rate 9.39445%
Unpaid Stated
Section 4.02 (vii.) Principal Principal
DELINQUENCY INFORMATION Balance Number Balance
30-59 days delinquent 1530827.51 20 1529418.69
60-89 days delinquent 222266.40 4 222107.58
90 or more days delinquent 0.00 0 0.00
Foreclosures 1808082.83 23 1806621.25
Bankruptcies 1330396.78 13 1329676.57
Section 4.02 (viii.)
REO INFORMATION 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 19645.47
Payments in Full 2296684.53
Prepayment Charges 26260.87
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 0.983653
Class M-1 1.000000
Class M-2 1.000000
Class M-3 1.000000
Class CE 0.986922
Section 4.02 (xv.)
INTEREST DISTRIBUTION AMOUNTS
Interest Reduction from Allocation of:
Carry Prepayment Relief Act
Interest Forward Interest Interest
Amount Amount Shortfalls Losses Shortfalls
A 1225006.44 0.00 0.00 0.00 0.00
M-1 119752.47 0.00 0.00 0.00 0.00
M-2 91903.51 0.00 0.00 0.00 0.00
M-3 77936.62 0.00 0.00 0.00 0.00
CE 1011540.09 NA 0.00 0.00 0.00
TOTAL 2526139.13 0.00 0.00 0.00 0.00
Section 4.02 (xvi.)
PREPAYMENT INTEREST SHORTFALLS
Prepayment Interest Shortfalls not covered by the Service 0.00
Section 4.02 (xvii.)
Relief Act Interest Shortfall 0.00
Section 4.02 (xviii.)
Required Overcollateralized Amount 9427363.98
Credit Enhancement Percentage 20.2651%
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
Current Next
Class Interest RateInterest Rate
A 5.39938% 5.22234%
M-1 5.58938% 5.41234%
M-2 5.84938% 5.67234%
M-3 6.41938% 6.24234%
CE 3.56160%
P NA
R-III 5.39938%
PERFORMANCE MEASURES
Net Monthly Excess Cash Flow 1011540.08
Delinquency Percentage 0.99268%
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: November 30, 1998
