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-NC4)
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 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-NC4
STATEMENT TO CERTIFICATEHOLDERS
Distribution Date: 10/26/98
Beginning Ending
Certificate Certificate
ClassCusip Balance(1) Principal Interest LossesBalance
A 79548KC55224181000.00 2088583.79 1116522.57 0.00 222092416.21
M-1 79548KC63 23598000.00 0.00 121186.38 0.00 23598000.00
M-2 79548KC71 27285000.00 0.00 146699.51 0.00 27285000.00
M-3 79548KC89 14011000.00 0.00 83173.29 0.00 14011000.00
CE 7955109E8 5899600.00 0.00 772748.10 0.00 5899600.00
P 7955109F5 100.00 0.00 14765.63 0.00 100.00
R-III79548KD39 100.00 100.00 0.78 0.00 0.00
Total 294974800.00 2088683.79 2255096.26 0.00 292886116.21
AMOUNTS PER $1,000 UNIT PASS THROUGH RATES
Ending Current
Principal Interest Total Certificate Pass-Through
ClassDistribution Balance LossesInterest Rate
A 9.316507 4.980451 14.296958 990.683493 0.000 5.78375%
M-1 0.0000 5.135451 5.135451 1000.00000 0.000 5.96375%
M-2 0.0000 5.376563 5.376563 1000.00000 0.000 6.24375%
M-3 0.0000 5.936285 5.936285 1000.00000 0.000 6.89375%
CE 0.0000 130.983134 130.983134 1000.00000 0.000 3.14365%
P 0.0000 147656.30000 147656.300 1000.00000 0.000 NA
R-III1000.000 7.800000 1007.8000 0.00000 0.000 5.78375%
Section 4.02 (iii.)
MASTER SERVICER COMPENSATION 92186.84
TRUSTEE FEES 2458.13
Section 4.02 (iv.)
P&I ADVANCES Total Advances 10953.90
*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 221248416.42
Stated Principal Balance of REO Properties 0.00
Section 4.02 (vi.)
MORTGAGE LOAN CHARACTERISTICS
Number of Loans 1,935
Aggregate Principal Balance as of the Due Date 221248416.42
Weighted Average Remaining Term to Maturity 357
Weighted Average Mortgage Rate 9.62399%
Number of Subsequent Loans 680
Balance of Subsequent Loans 73713912.45
Unpaid Stated
Section 4.02 (vii.) Principal Principal
DELINQUENCY INFORMATION Balance NumberBalance
30-59 days delinquent 1051434.92 8 1050003.22
60-89 days delinquent 0.00 0 0.00
90 or more days delinquent 0.00 0 0.00
Foreclosures 0.00 0 0.00
Bankruptcies 75700.00 1 75616.81
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 11621.23
Payments in Full 1952995.79
Prepayment Charges 14765.63
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:
Extraordinary Losses 0.00
Fraud Losses 0.00
Special Hazard Losses 0.00
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 0.990683
Class M-1 1.000000
Class M-2 1.000000
Class M-3 1.000000
Class CE 0.992919
Section 4.02 (xv.)
INTEREST DISTRIBUTION AMOUNTS
Interest Reduction from the Allocation of:
Interest Carry Prepayment Relief Act
Distribution Forward Interest Interest
Amount Amount Shortfalls LossesShortfalls
A 1116522.57 0.00 0.00 0.00 0.00
M-1 121186.38 0.00 0.00 0.00 0.00
M-2 146699.51 0.00 0.00 0.00 0.00
M-3 83173.29 0.00 0.00 0.00 0.00
CE 772748.10 NA 0.00 0.00 0.00
TOTAL 2240329.85 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.) Fraud Loss Amount 8849250.00
Bankruptcy Amount 100000.00
Special Hazard Amount 3694760.00
Section 4.02 (xix.)
Required Overcollateralized Amount 5899600.00
Credit Enhancement Percentage 24.17103%
Section 4.02 (xx.)
Overcollateralization Increase Amount 0.00
Section 4.02 (xxi.)
Overcollateralization Reduction Amount 0.00
Section 4.02 (xxii.)
PASS THROUGH RATE
A 5.78375% 5.40938%
M-1 5.96375% 5.58938%
M-2 6.24375% 5.86938%
M-3 6.89375% 6.51938%
CE 3.14365%
Section 4.02 (xxiii.)
PRE-FUNDING AND INTEREST COVERAGE ACCOUNT
Amount on Deposit in the Pre-Funding Account 0.00
Amount on Deposit in the Interest Coverage Account 0.00
Section 4.02 (xxiv.)
PRE-FUNDING ACCOUNT DEPOSITS
Amount from the Pre-Funding Account
distributed to the Certificates 12671.13
PERFORMANCE MEASURES
Net Monthly Excess Cash Flow 772748.10
Delinquency Percentage 0.03450%
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
