CAPCO AMERICA SECURITIZATION CORPORATION
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-D7
Supplement, dated January 21, 1999, to Prospectus Supplement dated September 25,
1998.
PASS-THROUGH RATES
Notwithstanding anything to the contrary set forth in the Prospectus Supplement,
the Pass-Through Rates for the Class A-3 and Class A-4 Certificates shall be as
follows:
The Pass-Through Rate for the Class A-3 Certificates for any Distribution Date
will be equal to the lesser of (i) 6.7400% and (ii) the Weighted Average Net
Mortgage Pass-Through Rate for such Distribution Date.
The Pass-Through Rate for the Class A-4 Certificates for any Distribution Date
will be equal to the lesser of (i) 7.2300% and (ii) the Weighted Average Net
Mortgage Pass-Through Rate for such Distribution Date.
In the event of the prepayment of Mortgage Loans having relatively high interest
rates, the Weighted Average Net Mortgage Pass-Through Rate could be lower than
7.2300% or 6.7400%.
RECENT DEVELOPMENTS
On October 22, 1998, The Nomura Securities Co., Ltd. ("NSC"), NHA's
parent, reported that its consolidated after-tax losses for the six-month period
ending September 30, 1998 was $1,504,000,000 and NHA reported it had incurred a
pre-tax loss of $1,160,000,000 for the same period. Approximately $566,000,000
of that loss was attributable to mark-to-market losses in the value of CCA's
assets. Following the report of those losses, NSC made an additional equity
investment in NHA in the amount of $1,200,000,000.
There can be no assurance that either CCA or NHA will not experience
further losses, that NSC will provide additional capital to NHA or that NHA will
contribute additional capital to CCA. In addition, current market uncertainty
and volatility have had, and may continue to have, further significant adverse
impact on the financial condition and/or operations of CCA and NHA.
On December 11, 1998, CCA announced that it will not undertake any new
loan commitments. CCA also has announced that it will shortly close its regional
offices and that it will be consolidating and centralizing its activities in New
York. As a result of its termination of loan origination activities, a
significant number of employees primarily related to these activities are being
terminated. These employees represent a substantial majority of CCA's staff.
EXHIBIT E
Exhibit E to the Prospectus Supplement sets forth the Weighted Average
Net Mortgage Rate (WAC) calculated for the Mortgage Pool for each Distribution
Date based on certain assumptions. Each WAC shown on Exhibit E is 0.005% less
than the actual WAC calculated for each Distribution Date.
