<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
February 25, 1999
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 Number) (I.R.S. Employer
of Incorporation) 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 February 25, 1999.
<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: March 18, 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 February 25, 1999.................. 5
<PAGE>
EXHIBIT 10.1
<PAGE>
THE Distribution Date: 2/25/99
BANK OF
NEW YORK
101 Barclay Street - 12E
New York, NY 10286
Headlands Mortgage Securities Inc.
Attn: Anna Felt Mortgage Pass-Through Certificates, Series 1998-2
212-815-7166 Headlands Mortgage Company Seller and Master Servicer
Certificate holder Monthly Distribution Summary
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Certificate Pass
Class Rate Beginning Through Principal
Class Cusip Description Type Balance Rate (%) Distribution
<S> <C> <C> <C> <C> <C> <C>
A1 42209EFJ4 Senior Fix-30/360 379,706106.06 6.750000 707,026.14
PO 42209EFK1 Script PO Fix-30/360 929,070.23 0.000000 980.77
R 42209EFL9 Senior Fix-30/360 0.00 6.750000 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
B1 422209EFM7 Junior Fix-30/360 7,982,837.03 6.750000 6,775.17
B2 42209EFN5 Junior Fix-30/360 3,592,316.56 6.750000 3,048.88
B3 42209EFP0 Junior Fix-30/360 2,394,910.96 6.750000 2,032.60
B4 Junior Fix-30/360 1,397,006.96 6.750000 1,185.66
B5 Junior Fix-30/360 1,197,405.60 6.750000 1,016.26
B6 Junior Fix-30/360 1,397,083.26 6.750000 1,185.73
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 398,596,716.15 723,251.19
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<CAPTION>
Current Cumulative
Interest Total Realized Ending Realized
Distribution Distribution Losses Balance Losses
<S> <C> <C> <C> <C>
2,135,846.85 2,842,872.98 0.00 378,999,079.92 0.00
0.00 980.77 0.00 928,089.47 0.00
0.00 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
44,903.46 51,678.63 0.00 7,976,061.86 0.00
20,206.78 23,255.64 0.00 3,589,267.70 0.00
13,471.37 15,503.98 0.00 2,392,878.36 0.00
7,858.16 9,043.82 0.00 1,395,820.79 0.00
6,735.41 7,751.66 0.00 1,196,389.35 0.00
7,858.59 9,044.32 0.00 1.395.897.53 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total: 2,236,880.62 2,960,131.80 0.00 397,873,484.98 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
THE Distribution Date 2/25/99
BANK OF
NEW YORK
101 Barclay Street - 12E
New York, NY 10286
Head Mortgage Securities Inc.
Attn: Anna Felt
212-815-7166 Mortgage Pass-Through Certificates, Series 1998-2
Headlands Mortgage Company, Seller and Master Servicer
Principal Distribution Detail
<TABLE>
<CAPTION>
Original Beginning Scheduled
Certificate Certificate Principal Accretion
Class Cusip Balance Balance Distribution Principal
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
A1 42209EFJ4 381,205,100.00 379,706,106.06 707,026.14 0.00
PO 42209EFK1 931,678.00 929,070.23 980.77 0.00
R 42209EFL9 100.00 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
B1 42209EFM7 8,002,800.00 7,982,837.03 6,775.17 0.00
B2 42209EFN5 3,601,300.00 3,592,316.56 3,048.86 0.00
B3 42209EFPO 2,400,900.00 2,394,910.96 2,032.60 0.00
B4 1,400,500.00 1,397,006.45 1,185.66 0.00
B5 1,200,400.00 1,197,405.60 1,016.26 0.00
B6 1,400,577.00 1,397,081.26 1,185.73 0.00
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Total: 400,143,355.00 398,596,736.15 723,251.19 0.00
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<CAPTION>
Unscheduled Net Current Ending Ending
Principal Principal Realized Certificate Certificate
Adjustments Distribution Losses Balance Factor
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
0.00 707,026.14 0.00 378,999,079.92 0.99421303630
0.00 980.77 0.00 928,089.47 0.99614831238
0.00 0.00 0.00 0.00 0.00000000000
- -----------------------------------------------------------------------------------------------------------------------------------
0.00 6,775.17 0.00 7,976,061.86 0.99665890161
0.00 3,048.86 0.00 3,590,267.70 0.99665890161
0.00 2,032.60 0.00 2,392,878.16 0.99665890161
0.00 1,185.66 0.00 1,395,820.79 0.99665890161
0.00 1,016.26 0.00 1,196,389.35 0.99665890161
0.00 1,185.73 0.00 1,395,897.53 0.99665890161
- -----------------------------------------------------------------------------------------------------------------------------------
Total: 0.00 723,251.19 0.00 397,873,484.98
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
THE Distribution Date: 2/25/99
BANK OF
NEW
YORK
01 Barclay Street - 12 E
New York, NY 10286
Attn: Anna Felt
Headlands Mortgage Securities Inc.
Mortgage Pass-Through Certificates, Series 1998-2
Headlands Mortgage Company, Seller and Master Servicer
<TABLE>
<CAPTION>
Interest Distribution Detail
- -----------------------------------------------------------------------------------------------------------------------------------
Beginning Pass Accrued Cumulative Total Net Unscheduled
Certificate Through Optimal Unpaid Deferred Interest Prepayment Interest Interest
Class Balance Rate (%) Interest Interest Interest Due Int Shortfall Adjustment Paid
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A1 379,706,106.06 6.750000 2,135,846.85 0.00 0.00 2,135,846.85 0.00 0.00 2,135,846.85
PO 929,070.23 0.000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00
R 0.00 6.750000 0.00 0.00 0.00 0.00 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
B1 7,982,837.03 6.750000 44,903.46 0.00 0.00 44,903.46 0.00 0.00 44,903.46
B2 3,592,316.56 6.750000 20,206.78 0.00 0.00 20.206.78 0.00 0.00 20,206.78
B3 2,394,910.96 6.750000 13,471.37 0.00 0.00 13,471.37 0.00 0.00 13,471.37
B4 1,397,006.45 6.750000 7,858.16 0.00 0.00 7,858.16 0.00 0.00 7,858.16
B5 1,197,405.60 6.750000 6,735.41 0.00 0.00 6,735.41 0.00 0.00 6,735.41
B6 1,397,083.26 6.750000 7.858.59 0.00 0.00 7,858.59 0.00 0.00 7,858.59
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Totals 398,596,736.15 2,236,880.62 0.00 0.00 2,236,880.62 0.00 0.00 2,236,880.62
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</TABLE>
Page 3
<PAGE>
THE
BANK OF
NEW
YORK
01 Barclay Street - 12 E
New York, NY 10286
Headlands Mortgage Securities Inc.
Attn: Anna Felt Mortgage Pass-Through Certificates, Series 1998-2
212-815-7166 Headlands Mortgage Company, Seller and Master Servicer
Current Payment Information
Factors per $1,000
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Orginal 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 381,205,100.00 996.067749516 1.854713217 5.602881091 994.213036299 6.750000
PO 422093EFK1 931,678.00 997.201000275 1.052687900 0.000000000 996.148312375 0.000000
R 422093EFL9 100.00 0.000000000 0.000000000 0.000000000 000.000000000 6.750000
- ------------------------------------------------------------------------------------------------------------------------------------
B1 42209EFM7 8,002,800.00 997.505501239 0.846599624 5.610968444 996.658901615 6.750000
B2 42209EFN5 3,601,300.00 997.505501239 0.846599624 5.610968444 996.658901615 6.750000
B3 42209EFP0 2,400,900.00 997.505501239 0.846599624 5.610968444 996.658901615 6.750000
B4 1,400,500.00 997.505501239 0.846599624 5.610968444 996.658901615 6.750000
B5 1,200,400.00 997.505501239 0.846599624 5.610971343 996.658901615 6.750000
B6 1,400,577.00 997.505501239 0.846599624 5.610966052 996.658901615 6.750000
- ------------------------------------------------------------------------------------------------------------------------------------
Totals 400,143,355.00 996.134338101 1.807480197 5.590198093 994.327357954
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
THE
BANK OF
NEW
YORK
01 Barclay Street - 12E
New York, NY
Attn: Anna Felt
Headlands Mortgage Securities Inc.
Mortgage Pass - Through Certificates, Series 1998-2
Headlands Mortgage Company, Seller and Master Servicer
<TABLE>
<CAPTION>
<S> <C>
Pool Level Data
Distribution Date 2/25/99
Cut-off Date 10/ 1/99
Determination Date 2/ 1/99
Accrual Period Begin 1/ 1/99
End 2/ 1/99
Number of Days in Accrual Period 31
- -----------------------------------------------------
Collateral Information
- -----------------------------------------------------
Group I
- -------
Cut-Off Date Balance 0.00
Beginning Aggregate Pool Stated Principal Balance 398,596,736.52
Ending Aggregate Pool Stated Principal Balance 397,873,485.34
Beginning Aggregate Certificate Stated Principal Balance 398,596,736.16
Ending Aggregate Certificate Stated Principal Balance 397,873,484.98
Beginning Aggregate Loan Count 0
Loans Paid Off or Otherwise Removal Pursuant to Pooling
and Servicing Agreement -1347
Ending Aggregate Loan Count -1347
Beginning Weighted Average Loan Rate (WAC) 7.262624%
Ending Weighted Average Loan Rate (WAC) 7.262223%
Beginning Net Weighted Average Loan Rate 7.004124%
Ending Weighted Average Loan Rate 7.003723%
Aggregate Pool Prepayment 384,905.87
- -----------------------------------------------------
Certificate Information
- -----------------------------------------------------
Group 1
- -------
Senior Percentage 95.4832737473%
Senior Prepayment Percentage 100.0000000000%
Subordinate Percentage 4.5167262527%
Subordinate Prepayment Percentage 0.0000000000%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Prepayment Compensation 0.00
Total Gross Prepayment Interest Shortfall 0.00
Compensation for Gross PPIS from Servicing Fees 0.00
Other Gross PPIS Compensation 0.00
----
Excess Servicing Fee 0.00
Total Net PPIS (Non-Supported PPIS)
f
Master Servicing Fees Paid 172,677.80
Sub Servicing Fees Paid 0.00
Trustee Fees Paid 2,823.39
----------
Total Fees 175,501.19
</TABLE>
- -----------------------------------------------------------------------
Deliquency Information
- -----------------------------------------------------------------------
Group 1
- -------
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Delinquency 30 - 59 Days 60 - 89 Days 90+ Days 270+ Days Totals
- ----------- ------------ ------------ --------- --------- ------
Scheduled Principal Balance 1,469,165.83 0.00 0.00 0.00 1,469,165.83
Percentage of Total Pool Balance 0.369255% 0.000000% 0.000000% 0.000000% 0.369255%
Number of Loans 6 0 0 6
Percentage of Total Loans 0.445434% 0.000000% 0.000000% 0.445434%
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 2
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------
Subordination/Credit Enhancement Information
- ----------------------------------------------------
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% 1.005705%
Special Hazard Loss 4,734,475.00 4,722,566.87
Special Hazard Loss Percentage 1.183195% 1.186952%
Credit Support Original Current
- -------------- -------- -------
Class A 382,136,878.00 379,927,169.39
Class A Percentage 95.499993% 95.489442%
Class B1 8,002,800.00 7,976,061.86
Class B1 Percentage 1.999983% 2.004673%
Class B2 3,601,300.00 3,589,267.70
Class B2 Percentage 0.900002% 0.902113%
Class B3 2,400,900.00 2,392,878.36
Class B3 Percentage 0.600010% 0.601417%
Class B4 1,400,500.00 1,395,820.79
Class B4 Percentage 0.350000% 0.350820%
Class B5 1,200,400.00 1,196.389.35
Class B5 Percentage 0.299992% 0.300696%
Class B6 1,400,577.00 1,395,897.53
Class B6 Percentage 0.350019% 0.350840%
</TABLE>
