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 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 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-OPT2
STATEMENT TO CERTIFICATEHOLDERS
Distribution Date: 12/28/98
Beginning Ending
Certificate Certificate
ClassCusip Balance(1) Principal Interest LossesBalance
A 79548KE38269756137.912502091.76 1291361.75 0.00 267254046.15
M-1 79548KE4625710000.00 0.00 127555.32 0.00 25710000.00
M-2 79548KE5318854000.00 0.00 98034.11 0.00 18854000.00
M-3 79548KE6114569000.00 0.00 83365.93 0.00 14569000.00
CE 7955199A7 9427363.98 0.00 908861.62 0.00 9427363.98
P 7955199E9 100.00 0.00 29859.17 0.00 100.00
R-III79548KE95 0.00 0.00 0.00 0.00 0.00
Total 338316601.892502091.76 2539037.90 0.00 335814510.13
AMOUNTS PER $1,000 UNIT PASS THROUGH RATES
Ending Current
Certificate Pass-Through
ClassPrincipal Interest Total Balance LossesInterest Rate
A 9.123763 4.7088917 13.8326551 974.52968 0.0000 5.22234%
M-1 0.000000 4.9613116 4.9613116 1000.000000.0000 5.41234%
M-2 0.000000 5.1996452 5.1996452 1000.000000.0000 5.67234%
M-3 0.000000 5.7221450 5.7221450 1000.000000.0000 6.24234%
CE 0.000000 96.4067604 96.4067604 1000.000000.0000 3.22371%
P 0.000000 298591.7000 298591.70001000.0000 0.0000 NA
R-III0.000000 0.0000000 0.0000000 0.000000 0.0000 5.22234%
Section 4.02 (iii.)
MASTER SERVICER COMPENSATION 140965.25
TRUSTEE FEES 0.00
Section 4.02 (iv.)
P&I ADVANCES Total Advances 159261.85
*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 335814510.13
Stated Principal Balance of REO Properties 0.00
Section 4.02 (vi.)
MORTGAGE LOAN CHARACTERISTICS
Number of Loans 2925
Aggregate Principal Balance as of the Due Date 335814510.13
Weighted Average Remaining Term to Maturity 354
Weighted Average Mortgage Rate 9.39999%
Unpaid Stated
Section 4.02 (vii.) Principal Principal
DELINQUENCY INFORMATION Balance NumberBalance
30-59 days delinquent 3101801.50 29 3097555.63
60-89 days delinquent 432276.69 7 431636.53
90 or more days delinquent 0.00 0 0.00
Foreclosures 2050448.79 27 2047893.16
Bankruptcies 1642019.82 17 1640973.34
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 22163.44
Payments in Full 2297573.26
Prepayment Charges 29859.17
REO Principal Amortization 0.00
Section 4.02 (xi.) Realized Losses that were incurred during the
REALIZED LOSSES 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 0.974530
Class M-1 1.000000
Class M-2 1.000000
Class M-3 1.000000
Class CE 0.979623
Section 4.02 (xv.)
INTEREST DISTRIBUTION AMOUNTS
Interest Reduction from Allocation of:
Carry Prepayment Relief Act
Interest Forward Interest Interest
Amount Amount ShortfallsLossesShortfalls
A 1291361.75 0.00 0.00 0.00 0.00
M-1 127555.32 0.00 0.00 0.00 0.00
M-2 98034.11 0.00 0.00 0.00 0.00
M-3 83365.93 0.00 0.00 0.00 0.00
CE 908861.62 NA 0.00 0.00 0.00
TOTAL 2509178.73 0.00 0.00 0.00 0.00
Section 4.02 (xvi.)
PREPAYMENT INTEREST SHORTFALLS
Prepayment Interest Shortfalls not covered by 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 20.41614%
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 RatInterest Rate
A 5.22234% 5.80438%
M-1 5.41234% 5.99438%
M-2 5.67234% 6.25438%
M-3 6.24234% 6.82438%
CE 3.22371%
P NA
R-III 5.22234%
PERFORMANCE MEASURES
Net Monthly Excess Cash Flow 908861.62
Delinquency Percentage 1.22702%
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
