<PAGE>
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
December 25, 1998
Date of Report (Date of Earliest Event Reported)
Headlands Mortgage Securities Inc. (as Sponsor under a Pooling and Servicing
Agreement dated as of October 1, 1998 among the Sponsor, as Seller and Master
Servicer, and the Bank of New York, as Trustee, providing for the issuance
of the Mortgage Pass-Through Certificates, Series 1998-2)
HEADLANDS MORTGAGE SECURITIES INC.
----------------------------------
(Exact Name of Registrant as Specified in Its Charter)
Delaware 333-46019-2 68-0397342
-------- ----------- ----------
(State or Other Jurisdiction (Commission File (I.R.S. Employer
of Incorporation) Number) Identification No.)
700 Larkspur Landing Circle, Suite 240, Larkspur, CA 94939
----------------------------------------------------------
(Address of Principal Executive Offices)
(415) 461-6790
--------------
(Registrant's Telephone Number,
Including Area Code)
Not Applicable
--------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events
------------
Filing of Certain Materials
---------------------------
Headlands Mortgage Securities Inc. (the "Company") has previously
registered the offer and sale of its Mortgage Loan Pass-Through
Certificates, Series 1998-2 (the "Certificates").
The following exhibit which relates specifically to the
Certificates is included with this Current Report:
Item 7(c). Exhibits
--------
10.1 Monthly Payment Date Statement distributed to
Certificateholders, dated December 25, 1998.
<PAGE>
SIGNATURE
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.
Date: February 4, 1999
HEADLANDS MORTGAGE
SECURITIES INC.
By: /s/ Gilbert J. MacQuarrie
-----------------------------------------
Gilbert J. MacQuarrie
Vice President, Treasurer and Secretary
(Principal Financial Officer and
and Principal Accounting Officer)
<PAGE>
EXHIBIT INDEX
Exhibit Number Page Number
- -------------- -----------
10.1 Monthly Payment Date Statement distributed to
Certificateholders, dated December 25, 1998........................5
<PAGE>
THE Distribution Date: 12/25/98
BANK OF
NEW EXHIBIT 10.1
YORK
101 Barclay Street, 12E
New York, NY 10286
Headlands Mortgage Securities Inc.
Attn: Franklin Austin, MBS Unit
(212)815-2297 Mortgage Pass-Through Certificates, Series 1998-2
Headlands Mortgage Company, Seller and Master Servicer
Certificateholder Monthly Distribution Summary
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Certificate Pass
Class Rate Beginning Through Principal Interest
Class Cusip Description Type Balance Rate (%) Distribution Distribution
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
A1 42209EFJ4 Senior Fix-30/360 380,639,333.98 6.750000 576,301.13 2,141,096.25
PO 42209EFK1 Strip PO Fix-30/360 930,869.92 0.000000 878.18 0.00
R 42209EFL9 Senior Fix-30/360 0.00 6.750000 0.00 89,871.75
- ---------------------------------------------------------------------------------------------------------------
B1 42209EFM7 Junior Fix-30/360 7,996,253.65 6.750000 6,683.39 44,978.93
B2 42209EFN5 Junior Fix-30/360 3,598,354.11 6.750000 3,007.56 20,240.74
B3 42209EFP0 Junior Fix-30/360 2,398,936.04 6.750000 2,005.07 13,494.02
B4 Junior Fix-30/360 1,399,354.38 6.750000 1,169.60 7,871.37
B5 Junior Fix-30/360 1,199,418.06 6.750000 1,002.49 6,746.73
B6 Junior Fix-30/360 1,399,431.32 6.750000 1,169.67 7,871.80
- ---------------------------------------------------------------------------------------------------------------
Totals 399,561,951.46 592,217.09 2,332,171.59
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Current Cumulative
Class Total Realized Ending Realized
Class Cusip Description Distribution Losses Balance Losses
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
A1 42209EFJ4 Senior 2,717,397.38 0.00 380,063,032.85 0.00
PO 42209EFK1 Strip PO 878.18 0.00 929,991.74 0.00
R 42209EFL9 Senior 89,871.75 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------------------------------
B1 42209EFM7 Junior 51,662.32 0.00 7,989,570.26 0.00
B2 42209EFN5 Junior 23,248.30 0.00 3,595,346.55 0.00
B3 42209EFP0 Junior 15,499.08 0.00 2,396,930.98 0.00
B4 Junior 9,040.97 0.00 1,398,184.78 0.00
B5 Junior 7,749.22 0.00 1,198,415.57 0.00
B6 Junior 9,041.47 0.00 1,398,261.65 0.00
- ---------------------------------------------------------------------------------------------------------------
Totals 2,924,388.67 0.00 398,969,734.38 0.00
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
THE Distribution Date: 12/25/98
BANK OF
NEW
YORK
101 Barclay Street, 12E
New York, NY 10286
Headlands Mortgage Securities Inc.
Attn: Franklin Austin, MBS Unit
(212)815-2297 Mortgage Pass-Through Certificates, Series 1998-2
Headlands Mortgage Company, Seller and Master Servicer
<TABLE>
<CAPTION>
Principal Distribution Detail
- ------------------------------------------------------------------------------------------------------------------------------------
Original Beginning Scheduled Unscheduled
Certificate Certificate Principal Accretion Principal
Class Cusip Balance Balance Distribution Principal Adjustments
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
A1 42209EFJ4 381,205,100.00 380,639,333.98 576,301.13 0.00 0.00
PO 42209EFK1 931,678.00 930,869.92 878.18 0.00 0.00
R 42209EFL9 100.00 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
B1 42209EFM7 8,002,800.00 7,996,253.65 6,683.39 0.00 0.00
B2 42209EFN5 3,601,300.00 3,598,354.11 3,007.56 0.00 0.00
B3 42209EFP0 2,400,900.00 2,398,936.04 2,005.07 0.00 0.00
B4 1,400,500.00 1,399,354.38 1,169.60 0.00 0.00
B5 1,200,400.00 1,199,418.06 1,002.49 0.00 0.00
B6 1,400,577.00 1,399,431.32 1,169.67 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Totals 400,143,355.00 399,561,951.46 592,217.09 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
Net Current Ending Ending
Principal Realized Certificate Certificate
Class Cusip Distribution Losses Balance Factor
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
A1 42209EFJ4 576,301.13 0.00 380,063,032.85 0.99700406121
PO 42209EFK1 878.18 0.00 929,991.74 0.99819008636
R 42209EFL9 0.00 0.00 0.00 0.00000000000
- -------------------------------------------------------------------------------------------------------------
B1 42209EFM7 6,683.39 0.00 7,989,570.26 0.99834686051
B2 42209EFN5 3,007.56 0.00 3,595,346.55 0.99834686051
B3 42209EFP0 2,005.07 0.00 2,396,930.98 0.99834686051
B4 1,169.60 0.00 1,398,184.78 0.99834686051
B5 1,002.49 0.00 1,198,415.57 0.99834686051
B6 1,169.67 0.00 1,398,261.65 0.99834686051
- -------------------------------------------------------------------------------------------------------------
Totals 592,217.09 0.00 398,969,734.38
- -------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
THE Distribution Date: 12/25/98
BANK OF
NEW
YORK
101 Barclay Street, 12E
New York, NY 10286
Headlands Mortgage Securities Inc.
Attn: Franklin Austin, MBS Unit
(212)815-2297 Mortgage Pass-Through Certificates, Series 1998-2
Headlands Mortgage Company, Seller and Master Servicer
<TABLE>
<CAPTION>
Interest Distribution Detail
- -------------------------------------------------------------------------------------------------
Beginning Pass Accrued Cumulative
Certificate Through Optimal Unpaid
Class Balance Rate (%) Interest Interest
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A1 380,639,333.98 6.750000 2,141,096.25 0.00
PO 930,869.92 0.000000 0.00 0.00
R 0.00 6.750000 0.00 0.00
- -------------------------------------------------------------------------------------------------
B1 7,996,253.65 6.750000 44,978.93 0.00
B2 3,598,354.11 6.750000 20,240.74 0.00
B3 2,398,936.04 6.750000 13,494.02 0.00
B4 1,399,354.38 6.750000 7,871.37 0.00
B5 1,199,418.06 6.750000 6,746.73 0.00
B6 1,399,431.32 6.750000 7,871.80 0.00
- -------------------------------------------------------------------------------------------------
Totals 399,561,951.46 2,242,299.84 0.00
- -------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------
Total Net Unscheduled
Deferred Interest Prepayment Interest Interest
Class Interest Due Int Shortfall Adjustment Paid
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
A1 0.00 2,141,096.25 0.00 0.00 2,141,096.25
PO 0.00 0.00 0.00 0.00 0.00
R 0.00 0.00 0.00 0.00 89,871.75
- --------------------------------------------------------------------------------------------------
B1 0.00 44,978.93 0.00 0.00 44,978.93
B2 0.00 20,240.74 0.00 0.00 20,240.74
B3 0.00 13,494.02 0.00 0.00 13,494.02
B4 0.00 7,871.37 0.00 0.00 7,871.37
B5 0.00 6,746.73 0.00 0.00 6,746.73
B6 0.00 7,871.80 0.00 0.00 7,871.80
- --------------------------------------------------------------------------------------------------
Totals 0.00 2,242,299.84 0.00 0.00 2,332,171.59
- --------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
THE Distribution Date: 12/25/98
BANK OF
NEW
YORK
101 Barclay Street, 12E
New York, NY 10286
Headlands Mortgage Securities Inc.
Attn: Franklin Austin, MBS Unit
(212)815-2297 Mortgage Pass-Through Certificates, Series 1998-2
Headlands Mortgage Company, Seller and Master Servicer
Current Payment Information
Factors per $1,000
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Original Beginning Cert. Ending Cert. Pass
Certificate Notional Principal Interest Notional Through
Class Cusip Balance Balance Distribution Distribution Balance Rate (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
A1 42209EFJ4 381,205,100.00 998.515848776 1.511787564 5.616651649 997.004061213 6.750000
PO 42209EFK1 931,678.00 999.132660116 0.942573753 0.000000000 998.190086363 0.000000
R 42209EFL9 100.00 0.000000000 0.000000000 898,717.503119296 0.000000000 6.750000
- ------------------------------------------------------------------------------------------------------------------------------------
B1 42209EFM7 8,002,800.00 999.181991961 0.835131454 5.620398705 998.346860507 6.750000
B2 42209EFN5 3,601,300.00 999.181991961 0.835131454 5.620398705 998.346860507 6.750000
B3 42209EFP0 2,400,900.00 999.181991961 0.835131454 5.620398705 998.346860507 6.750000
B4 1,400,500.00 999.181991961 0.835131454 5.620398705 998.346860507 6.750000
B5 1,200,400.00 999.181991961 0.835131454 5.620398705 998.346860507 6.750000
B6 1,400,577.00 999.181991961 0.835131454 5.620398705 998.346860507 6.750000
- ------------------------------------------------------------------------------------------------------------------------------------
Totals 400,143,355.00 998.547011883 1.480012307 5.828340171 997.066999601
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
THE
BANK OF
NEW
YORK
101 Barclay Street, 12E
New York, NY 10286
<TABLE>
<CAPTION>
Headlands Mortgage Securities Inc.
Attn: Franklin Austin, MBS Unit
(212)815-2297 Mortgage Pass-Through Certificates, Series 1998-2
Headlands Mortgage Company, Seller and Master Servicer
<S> <C> <C>
Pool Level Data
Distrbution Date 12/25/98
Cut-off Date 10/1/98
Determination Date 12/1/98
Accrual Period Begin 11/1/98
End 12/1/98
Number of Days in Accrual Period 30
- ----------------------------------------------------------
Collateral Information
- ----------------------------------------------------------
Group 1
- -------
Cut-Off Date Balance 0.00
Beginning Aggregate Pool Stated Principal Balance 399,561,951.82
Ending Aggregate Pool Stated Principal Balance 398,969,734.74
Beginning Aggregate Certificate Stated Principal Balance 399,561,951.46
Ending Aggregate Certificate Stated Principal Balance 398,969,734.38
Beginning Aggregate Loan Count 1349
Loans Paid Off or Otherwise Removed Pursuant to Pooling
and Servicing Agreement 2
Ending Aggregate Loan Count 1347
Beginning Weighted Average Loan Rate (WAC) 7.262685%
Ending Weighted Average Loan Rate (WAC) 7.262614%
Beginning Net Weighted Average Loan Rate 7.004185%
Ending Net Weighted Average Loan Rate 7.004114%
Aggregate Pool Prepayment 258,207.82
- ------------------------------------------------------------
Certificate Information
- ------------------------------------------------------------
Group 1
- -------
Senior Percentage 95.4866169774%
Senior Prepayment Percentage 100.0000000000%
Subordinate Percentage 4.5133830226%
Subordinate Prepayment Percentage 0.0000000000%
Prepayment Compensation
Total Gross Prepayment Interest Shortfall 0.00
Compensation for Gross PPIS from Servicing Fees 0.00
Other Gross PPIS Compensation 0.00
----
Total Net PPIS (Non-Supported PPIS) 0.00
<CAPTION>
- ------------------------------------------------------------
Delinquency Information
- ------------------------------------------------------------
Group 1
- -------
Delinquency 30 - 59 Days 60 - 89 Days 90+ Days Totals
- ----------- ------------ ------------ -------- ------
<S> <C> <C> <C> <C>
Scheduled Principal Balance 0.00 0.00 0.00 0.00
Percentage of Total Pool Balance 0.000000% 0.000000% 0.000000% 0.000000%
Number of Loans 0 0 0 0
Percentage of Total Loans 0.000000% 0.000000% 0.000000% 0.000000%
Foreclosure
- -----------
Scheduled Principal Balance 0.00 0.00 0.00 0.00
Percentage of Total Pool Balance 0.000000% 0.000000% 0.000000% 0.000000%
Number of Loans 0 0 0 0
Percentage of Total Loans 0.000000% 0.000000% 0.000000% 0.000000%
Bankruptcy
- ----------
Scheduled Principal Balance 0.00 0.00 0.00 0.00
Percentage of Total Pool Balance 0.000000% 0.000000% 0.000000% 0.000000%
Number of Loans 0 0 0 0
Percentage of Total Loans 0.000000% 0.000000% 0.000000% 0.000000%
REO
- ---
Scheduled Principal Balance 0.00 0.00 0.00 0.00
Percentage of Total Pool Balance 0.000000% 0.000000% 0.000000% 0.000000%
Number of Loans 0 0 0 0
Percentage of Total Loans 0.000000% 0.000000% 0.000000% 0.000000%
Book Value of all REO Loans 0.00
Percentage of Total Pool Balance 0.000000%
Current Realized Losses 0.00
Additional Gains (Recoveries)/Losses 0.00
Total Realized Losses 0.00
</TABLE>
Page 1
<PAGE>
- --------------------------------------------------------------------------------
Subordination/Credit Enhancement Information
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Protection Original Current
- ---------- -------- -------
<S> <C> <C>
Bankruptcy Loss 140,000.00 0.00
Bankruptcy Percentage 0.034987% 0.000000%
Credit/Fraud Loss 4,001,434.00 4,001,434.00
Credit/Fraud Loss Percentage 1.000000% 1.002942%
Special Hazard Loss 4,734,475.00 4,730,731.90
Special Hazard Loss Percentage 1.183195% 1.185737%
<CAPTION>
Credit Support Original Current
- -------------- -------- -------
<S> <C> <C>
Class A 382,136,878.00 380,993,024.60
Class A Percentage 95.499993% 95.494217%
Class B1 8,002,800.00 7,989,570.26
Class B1 Percentage 1.999983% 2.002550%
Class B2 3,601,300.00 3,595,346.55
Class B2 Percentage 0.900002% 0.901158%
Class B3 2,400,900.00 2,396,930.98
Class B3 Percentage 0.600010% 0.600780%
Class B4 1,400,500.00 1,398,184.78
Class B4 Percentage 0.350000% 0.350449%
Class B5 1,200,400.00 1,198,415.57
Class B5 Percentage 0.299992% 0.300378%
Class B6 1,400,577.00 1,398,261.65
Class B6 Percentage 0.350019% 0.350468%
</TABLE>
