<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, PNC Mortgage
Securities Corp., as Seller and Master Servicer, and State Street Bank and Trust
Company, as Trustee, providing for the issuance of the Mortgage Pass-Through
Certificates, Series 1998-1)
HEADLANDS MORTGAGE SECURITIES INC.
----------------------------------
(Exact Name of Registrant as Specified in Its Charter)
Delaware 333-46019-1 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 1998-1 (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.
2
<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: January 11, 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)
3
<PAGE>
EXHIBIT INDEX
Exhibit Number Page Number
- -------------- -----------
10.1 Monthly Payment Date Statement distributed to
Certificateholders, dated December 25, 1998................... 5
4
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT 10.1
PNC MORTGAGE SECURITIES CORP.
MASTER SERVICING
PROCESSING MONTH: 11/1998 MORTGAGE PASS-THROUGH CERTIFICATES
12/1998 DISTRIBUTION REPORT
SERIES: 98-1 HMSI (1477) WEIGHTED AVERAGE PC RATE: 7.04627209
- ------------------------------------------------------------------------------------------------------------------------------------
ISSUE DATE: 10/29/1998
CERTIFICATE BALANCE AT ISSUE: $293,485,009.43
CERTIFICATE
TOTAL ACCOUNT CERTIFICATE
NUMBER OF ACTIVITY BALANCE
MORTGAGES (@ PC RATE) OUTSTANDING
------------- ----------------- -----------------
<S> <C> <C> <C>
BALANCES FROM LAST FISCAL MONTH-END: 844 $292,483,192.26
PRINCIPAL POOL COLLECTION(S):
Scheduled Principal Collected Due Current Month $207,934.28
Unscheduled Principal Collection/Reversals $ 57,821.76
Liquidations-in-full 7 $2,981,852.89
Principal Balance Sales Adjustments $0.00
Net Principal Distributed $3,247,608.93 ($3,247,608.93)
CAPITAL LOSS (PRINCIPAL WRITTEN OFF) $0.00
BALANCE CURRENT FISCAL MONTH-END: 837 $289,235,583.33
SCHEDULED INTEREST AT MORTGAGE RATE: $1,907,812.84
UNSCHEDULED INTEREST AT MORTGAGE RATE:
Unscheduled Interest Collections/Reversals ($9.61)
Interest Sales Adjustments $0.00
Interest Accrual Adjustment $0.00
Interest Uncollected on Liquidation $0.00
Interest Uncollected on Non-Earning Assets $0.00
Net Unscheduled Interest Distributed ($9.61)
OTHER:
Loan Conversion Fees $0.00
Expense Reimbursements $0.00
Gain on Liquidations $0.00
Hazard Insurance Premium Refunds $0.00
Net Other Distributions $0.00
SCHEDULED SERVICING FEE EXPENSES: $190,479.63
UNSCHEDULED SERVICING FEES:
Unscheduled Service Fee Collections/Reversals $0.73
Servicing Fees Sales Adjustments $0.00
Servicing Fees Accrual Adjustments $0.00
Servicing Fees Uncollected on Liquidation $0.00
Servicing Fees Uncollected/Non-Earning Assets $0.00
Net Unscheduled Service Fees Distributed $0.73
MISCELLANEOUS EXPENSES: $0.00
NET FUNDS DISTRIBUTED: $4,964,931.80
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
PNC MORTGAGE SECURITIES CORP.
MASTER SERVICING
PROCESSING MONTH: 11/1998 MORTGAGE PASS-THROUGH CERTIFICATES
12/1998 DISTRIBUTION REPORT
SERIES: 98-1 HMSI (1477) WEIGHTED AVERAGE PC RATE: 7.0463
- ------------------------------------------------------------------------------------------------------------------------------------
AGGREGATE LOSS AMOUNTS FROM SUMMARY OF DISTRIBUTIONS FOR CURRENT CYCLE
INCEPTION OF POOL
- ------------------------------ -------------------------------------------------------------------------------------------
NET INTEREST
LOAN COUNT OF AGGREGATE PRINCIPAL SCHEDULED INTEREST -------------------- TOTAL
INCURRED LOSSES LOSS AMOUNT DISTRIBUTION INTEREST DUE ADJUSTMENT DISTRIBUTION OTHER DISTRIBUTION
- --------------- ----------- ------------ ------------ ---------- ------------ ----- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
0 $0.00 $3,247,608.93 $1,717,333.21 ($10.34) $1,717,322.87 $0.00 $4,964,931.80
- ------------------------------ ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
* Aggregate Loss Amount and Count do not include this month's activity
INSURANCE RESERVES
ORIGINAL CLAIMS IN CLAIMS COVERAGE
INSURANCE TYPE BALANCE PROGRESS PAID ADJUSTMENTS REMAINING
MPI $0.00 $0.00 $0.00 $0.00 $0.00
SPECIAL HAZARD $2,520,000.00 $0.00 $0.00 $0.00 $2,520,000.00
BANKRUPTCY BOND
SINGLE-UNITS $100,000.00 $0.00 $0.00 $0.00 $100,000.00
MULTI-UNITS $0.00 $0.00 $0.00 $0.00 $0.00
MORTGAGE REPURCHASE $1,933,937.00 $0.00 $0.00 $0.00 $1,933,937.00
DELINQUENT INSTALLMENTS
ONE TWO THREE
COUNT PRIN BALANCE COUNT PRIN BALANCE COUNT PRIN BALANCE
14 $4,959,300.47 0 $0.00 0 $0.00
IN FORECLOSURE ACQUIRED
COUNT PRIN BALANCE COUNT PRIN BALANCE
0 $0.00 0 $0.00
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Distribution Date: December 28, 1998
PNC Mortgage Securities Corporation
Consolidated Distribution Report to
Certificate Holders
Reporting Period: November 1998
SERIES: 98-1 HMSI (1477)
Certificate Trust
Class Group I A-1 A-2 A-3
<S> <C> <C> <C> <C>
Weighted Average Pass Through Rate 7.0467% 6.500% 6.500% 6.500%
Original Principal Balance $293,485,009.00 $245,840,000.00 $8,156,307.00 $20,379,800.00
Beginning Principal Balance $292,483,191.83 $244,807,676.57 $8,200,397.96 $20,379,800.00
Loans Transferred In $0.00 $0.00 $0.00 $0.00
Loans Transferred Out $0.00 $0.00 $0.00 $0.00
Principal Losses $0.00 $0.00 $0.00 $0.00
Other Principal Adjustments $0.00 $0.00 $0.00 $0.00
Principal Distributed $3,247,608.93 $3,278,446.21 ($44,418.55) $0.00
Principal Allocation Factor 0.01106567 0.01333569 -0.00544591 0.00000000
Scheduled Interest $1,717,333.21 $1,326,041.58 $44,418.82 $110,390.58
Scheduled Interest Allocation Factor 0.00585152 0.00539392 0.00544595 0.00541667
Interest Adjustment ($10.34) ($7.98) ($0.27) ($0.66)
Interest Adjustment Allocation Factor -0.00000004 -0.00000003 -0.00000003 -0.00000003
Net Interest Distributed $1,717,322.87 $1,326,033.60 $44,418.55 $110,389.92
Distributed Allocation Factor 0.00585148 0.00539389 0.00544591 0.00541663
Other Distribution $0.00 $0.00 $0.00 $0.00
Other Distribution Allocation Factor 0.00000000 0.00000000 0.00000000 0.00000000
Ending Total Distribution $4,964,931.80 $4,604,479.81 $0.00 $110,389.92
Ending Principal Balance $289,235,582.90 $241,529,230.36 $8,244,816.51 $20,379,800.00
Principal Balance Trading Factor 0.98552081 0.98246514 1.01085166 1.00000000
</TABLE>
<TABLE>
<CAPTION>
Class I-B-1 I-B-2 I-B-3 I-B-4
<S> <C> <C> <C> <C>
Weighted Average Pass Through Rate 6.500% 6.500% 6.500% 6.500%
Original Principal Balance $8,364,323.00 $4,549,017.00 $2,201,138.00 $1,614,168.00
Beginning Principal Balance $8,358,423.22 $4,545,808.35 $2,199,585.43 $1,613,029.45
Loans Transferred In $0.00 $0.00 $0.00 $0.00
Loans Transferred Out $0.00 $0.00 $0.00 $0.00
Principal Losses $0.00 $0.00 $0.00 $0.00
Other Principal Adjustments $0.00 $0.00 $0.00 $0.00
Principal Distributed $5,942.05 $3,231.64 $1,563.70 $1,146.71
Principal Allocation Factor 0.00071040 0.00071040 0.00071040 0.00071040
Scheduled Interest $45,274.79 $24,623.13 $11,914.42 $8,737.24
Scheduled Interest Allocation Factor 0.00541285 0.00541285 0.00541285 0.00541284
Interest Adjustment ($0.27) ($0.15) ($0.07) ($0.05)
Interest Adjustment Allocation Factor -0.00000003 -0.00000003 -0.00000003 -0.00000003
Net Interest Distributed $45,274.52 $24,622.98 $11,914.35 $8,737.19
Distributed Allocation Factor 0.00541281 0.00541281 0.00541281 0.00541281
Other Distribution $0.00 $0.00 $0.00 $0.00
Other Distribution Allocation Factor 0.00000000 0.00000000 0.00000000 0.00000000
Ending Total Distribution $51,216.57 $27,854.62 $13,478.05 $9,883.90
Ending Principal Balance $8,352,481.17 $4,542,576.71 $2,198,021.73 $1,611,882.74
Principal Balance Trading Factor 0.99858425 0.99858425 0.99858425 0.99858425
</TABLE>
<TABLE>
<CAPTION>
Class X-1 X-2 PO
<S> <C> <C> <C>
Weighted Average Pass Through Rate 6.500% 6.500% 0.000%
Original Principal Balance $0.00 $0.00 $32,276.00
Beginning Principal Balance $0.00 $0.00 $32,246.94
Loans Transferred In $0.00 $0.00 $0.00
Loans Transferred Out $0.00 $0.00 $0.00
Principal Losses $0.00 $0.00 $0.00
Other Principal Adjustments $0.00 $0.00 $0.00
Principal Distributed $0.00 $0.00 $29.22
Principal Allocation Factor 0.00000000 0.00000000 0.00090532
Scheduled Interest $69,236.04 $63,967.54 $0.00
Scheduled Interest Allocation Factor 0.00000000 0.00000000 0.00000000
Interest Adjustment ($0.42) ($0.39) $0.00
Interest Adjustment Allocation Factor 0.00000000 0.00000000 0.00000000
Net Interest Distributed $69,235.62 $63,967.15 $0.00
Distributed Allocation Factor 0.00000000 0.00000000 0.00000000
Other Distribution $0.00 $0.00 $0.00
Other Distribution Allocation Factor 0.00000000 0.00000000 0.00000000
Ending Total Distribution $69,235.62 $63,967.15 $29.22
Ending Principal Balance $0.00 $0.00 $32,217.72
Principal Balance Trading Factor 0.00000000 0.00000000 0.99819432
</TABLE>
<TABLE>
<CAPTION>
Class I-B-5 I-B-6 R-1
<S> <C> <C> <C>
Weighted Average Pass Through Rate 6.500% 6.500% 6.500%
Original Principal Balance $880,455.00 $1,467,425.00 $100.00
Beginning Principal Balance $879,833.97 $1,466,389.95 $0.00
Loans Transferred In $0.00 $0.00 $0.00
Loans Transferred Out $0.00 $0.00 $0.00
Principal Losses $0.00 $0.00 $0.00
Other Principal Adjustments $0.00 $0.00 $0.00
Principal Distributed $625.48 $1,042.47 $0.00
Principal Allocation Factor 0.00071040 0.00071040 0.00000000
Scheduled Interest $4,765.77 $7,942.95 $20.35
Scheduled Interest Allocation Factor 0.00541285 0.00541285 0.00000000
Interest Adjustment ($0.03) ($0.05) $0.00
Interest Adjustment Allocation Factor -0.00000003 -0.00000003 0.00000000
Net Interest Distributed $4,765.74 $7,942.90 $20.35
Distributed Allocation Factor 0.00541281 0.00541281 0.00000000
Other Distribution $0.00 $0.00 $0.00
Other Distribution Allocation Factor 0.00000000 0.00000000 0.00000000
Ending Total Distribution $5,391.22 $8,985.37 $20.35
Ending Principal Balance $879,208.49 $1,465,347.48 $0.00
Principal Balance Trading Factor 0.99858424 0.99858424 0.00000000
</TABLE>
7
