<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
May 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, 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
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(State or Other (Commission File Number) (I.R.S. Employer
Jurisdiction of Identification No.)
Incorporation)
700 Larkspur Landing Circle, Suite 240, Larkspur, CA 94939
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(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)
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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 May 25, 1999.
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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: May 25, 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)
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EXHIBIT INDEX
Exhibit Number Page Number
- -------------- -----------
10.1 Monthly Payment Date Statement distributed to
Certificateholders, dated May 25, 1999................. 5
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EXHIBIT 10.1
PNC MORTGAGE SECURITIES CORP.
MASTER SERVICING
MORTGAGE PASS-THROUGH CERTIFICATES
05/1999 DISTRIBUTION REPORT
PROCESSING MONTH: 04/1999
SERIES: 98-1 HMSI (1477) WEIGHTED AVERAGE PC RATE: 7.04370445
- --------------------------------------------------------------------------------
ISSUE DATE: 10/29/1998
CERTIFICATE BALANCE AT ISSUE: $ 293,485,009.43
<TABLE>
<CAPTION>
CERTIFICATE
TOTAL ACCOUNT CERTIFICATE
NUMBER OF ACTIVITY BALANCE
MORTGAGES (@ PC RATE) OUTSTANDING
------------ --------------- ----------------
<S> <C> <C> <C>
BALANCES FROM LAST FISCAL MONTH-END: 777 $265,786,893.30
PRINCIPAL POOL COLLECTION(S):
Scheduled Principal Collected Due Current Month $ 197,735.42
Unscheduled Principal Collection/Reversals ($12,165.03)
Liquidations-in-full 13 $4,205,479.70
Principal Balance Sales Adjustments $ 0.00
Net Principal Distributed $4,391,050.09 ($4,391,050.09)
CAPITAL LOSS (PRINCIPAL WRITTEN OFF) $ 0.00
BALANCE CURRENT FISCAL MONTH-END: 764 $261,395,843.21
SCHEDULED INTEREST AT MORTGAGE RATE: $1,729,740.45
UNSCHEDULED INTEREST AT MORTGAGE RATE:
Unscheduled Interest Collections/Reversals $ 1,358.89
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 $ 1,358.89
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: $ 169,774.83
</TABLE>
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<TABLE>
<CAPTION>
CERTIFICATE
TOTAL ACCOUNT CERTIFICATE
NUMBER OF ACTIVITY BALANCE
MORTGAGES (@ PC RATE) OUTSTANDING
------------ --------------- ----------------
<S> <C> <C> <C>
UNSCHEDULED SERVICING FEES:
Unscheduled Service Fee Collections/Reversals $ 52.39
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 $ 52.39
MISCELLANEOUS EXPENSES: $ 0.00
NET FUNDS DISTRIBUTED: $5,952,322.21
</TABLE>
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PNC MORTGAGE SECURITIES CORP.
MASTER SERVICING
MORTGAGE PASS-THROUGH CERTIFICATES
05/1999 DISTRIBUTION REPORT
PROCESSING MONTH: 04/1999
SERIES: 98-1 HMSI (1477) WEIGHTED AVERAGE PC RATE: 7.04370445
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AGGREGATE LOSS AMOUNTS FROM SUMMARY OF DISTRIBUTIONS FOR CURRENT CYCLE
INCEPTION OF POOL
- -----------------------------------------------------------------------------------------------------------------------------------
LOAN COUNT AGGREGATE
OF INCURRED LOSS PRINCIPAL SCHEDULED INTEREST NET INTEREST TOTAL
LOSSES AMOUNT DISTRIBUTION INTEREST DUE ADJUSTMENT DISTRUBUTION OTHER DISTRIBUTION
----------- --------- --------------- ------------- --------------- ------------- ----- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
0 $0.00 $4,391,050.09 $1,559,965.62 $1,306.50 $1,561,272.12 $0.00 $5,952,322.21
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Aggregate Loss Amount and Count do not include this month's activity
INSURANCE RESERVES
<TABLE>
<CAPTION>
ORIGINAL CLAIMS IN CLAIMS COVERAGE
INSURANCE TYPE BALANCE PROGRESS PAID ADJUSTMENTS REMAINING
<S> <C> <C> <C> <C> <C>
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
</TABLE>
DELINQUENT INSTALLMENTS
<TABLE>
<CAPTION>
ONE TWO THREE
<S> <C> <C> <C> <C> <C>
COUNT PRIN BALANCE COUNT PRIN BALANCE COUNT PRIN BALANCE
24 $8,653,777.76 3 $1,061,309.09 5 $1,674,860.71
<CAPTION>
IN FORECLOSURE ACQUIRED
<S> <C> <C> <C>
COUNT PRIN BALANCE COUNT PRIN BALANCE
2 $1,004,872.09 0 $0.00
</TABLE>
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<TABLE>
<CAPTION>
PNC MORTGAGE SECURITIES CORP.
MASTER SERVICING DIVISION
WEIGHTED AVERAGE WORKSHEET
SERIES: 98-1 HMSI (1477)
- ------------------------------------------------------------------------------------------------------
Interest Rate Interest Rate Net Rate Pass Through Rate
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
0.0000 - 4.9999
5.0000 - 5.4999
5.5000 - 5.9999
6.0000 - 6.4999
6.5000 - 6.9999 6.7818 6.5068 6.4901
7.0000 - 7.4999 7.2567 6.9712 6.9541
7.5000 - 7.9999 7.6877 6.8872 6.8692
8.0000 - 8.4999 8.1791 7.2118 7.1935
8.5000 - 8.9999 8.6508 7.8033 7.7791
9.0000 - 9.4999 9.1755 8.6298 8.5927
9.5000 - 9.9999 9.5827 8.6077 8.5827
10.0000 - 10.4999 10.2500 9.2750 9.2500
10.5000 - 10.9999
11.0000 - 11.4999
11.5000 - 11.9999
12.0000 - 12.4999
12.5000 - 12.9999
13.0000 - 13.4999
13.5000 - 13.9999
14.0000 - 14.4999
14.5000 - 14.9999
15.0000 - 15.4999
15.5000 - 15.9999
16.0000 - 16.4999
16.5000 - 16.9999
17.0000 - 17.4999
17.5000 - 17.9999
18.0000 - 18.4999
18.5000 - 18.9999
19.0000 - 19.4999
19.5000 - 19.9999
20.0000 - 99.9999
Pool Totals 7.8075 7.0624 7.0437
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
Remaining Term Principal Balance Number Of Loans
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
0.0000 - 4.9999
5.0000 - 5.4999
5.5000 - 5.9999
6.0000 - 6.4999
6.5000 - 6.9999 352.379 $ 3,994,412.28 12
7.0000 - 7.4999 352.052 $ 41,342,947.27 118
7.5000 - 7.9999 351.655 $138,988,197.97 405
8.0000 - 8.4999 351.509 $ 55,016,126.40 157
8.5000 - 8.9999 351.447 $ 15,228,083.11 50
9.0000 - 9.4999 350.885 $ 5,033,472.83 17
9.5000 - 9.9999 351.344 $ 1,541,587.61 4
10.0000 - 10.4999 351.000 $ 251,015.74 1
10.5000 - 10.9999
11.0000 - 11.4999
11.5000 - 11.9999
12.0000 - 12.4999
12.5000 - 12.9999
13.0000 - 13.4999
13.5000 - 13.9999
14.0000 - 14.4999
14.5000 - 14.9999
15.0000 - 15.4999
15.5000 - 15.9999
16.0000 - 16.4999
16.5000 - 16.9999
17.0000 - 17.4999
17.5000 - 17.9999
18.0000 - 18.4999
18.5000 - 18.9999
19.0000 - 19.4999
19.5000 - 19.9999
20.0000 - 99.9999
Pool Totals 351.669 $261,395,843.21 764
</TABLE>
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<TABLE>
<CAPTION>
PNC Mortgage Securities Corporation
Consolidated Distribution Report to Certificate Holders
Reporting Period: April 1999 Distribution Date: May 25, 1999
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 7.0431% 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 $265,786,892.87 $217,955,915.39 $8,424,920.12 $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 $ 4,391,050.09 $ 4,422,581.09 ($45,673.20) $ 0.00
Principal Allocation Factor 0.01496175 0.01798967 -0.00559974 0.00000000
Scheduled Interest $ 1,559,965.62 $ 1,180,594.54 $ 45,634.98 $ 110,390.58
Scheduled Interest Allocation Factor 0.00531532 0.00480229 0.00559505 0.00541667
Interest Adjustment $ 1,306.50 $ 988.77 $ 38.22 $ 92.45
Interest Adjustment Allocation Factor 0.00000445 0.00000402 0.00000469 0.00000454
Net Interest Distributed $ 1,561,272.12 $ 1,181,583.31 $ 45,673.20 $ 110,483.03
Distributed Allocation Factor 0.00531977 0.00480631 0.00559974 0.00542120
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 $ 5,952,322.21 $ 5,604,164.40 $ 0.00 $ 110,483.03
Ending Principal Balance $261,395,842.78 $213,533,334.30 $8,470,593.32 $20,379,800.00
Principal Balance Trading Factor 0.89066165 0.86858662 1.03853292 1.00000000
</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 $ 32,059.47
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 $ 11.68
Principal Allocation Factor 0.00000000 0.00000000 0.00036188
Scheduled Interest $ 61,838.35 $ 58,630.33 $ 0.00
Scheduled Interest Allocation Factor 0.00000000 0.00000000 0.00000000
Interest Adjustment $ 51.79 $ 49.10 $ 0.00
Interest Adjustment Allocation Factor 0.00000000 0.00000000 0.00000000
Net Interest Distributed $ 61,890.14 $ 58,679.43 $ 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 $ 61,890.14 $ 58,679.43 $ 11.68
Ending Principal Balance $ 0.00 $ 0.00 $ 32,047.79
Principal Balance Trading Factor 0.00000000 0.00000000 0.99292942
</TABLE>
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<TABLE>
<CAPTION>
PNC Mortgage Securities Corporation
Consolidated Distribution Report to Certificate Holders Distribution Date: May 25, 1999
Reporting Period: April 1999
SERIES: 98-1 HMSI (1477)
Certificate Trust
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 $8,328,225.30 $4,529,384.92 $2,191,638.60 $1,607,201.78
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 $ 6,195.69 $ 3,369.58 $ 1,630.44 $ 1,195.66
Principal Allocation Factor 0.00074073 0.00074073 0.00074073 0.00074073
Scheduled Interest $ 45,111.22 $ 24,534.17 $ 11,871.38 $ 8,705.68
Scheduled Interest Allocation Factor 0.00539329 0.00539329 0.00539329 0.00539329
Interest Adjustment $ 37.78 $ 20.55 $ 9.94 $ 7.29
Interest Adjustment Allocation Factor 0.00000452 0.00000452 0.00000452 0.00000452
Net Interest Distributed $ 45,149.00 $ 24,554.72 $ 11,881.32 $ 8,712.97
Distributed Allocation Factor 0.00539781 0.00539781 0.00539781 0.00539781
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 $ 51,344.69 $ 27,924.30 $ 13,511.76 $ 9,908.63
Ending Principal Balance $8,322,029.61 $4,526,015.34 $2,190,008.16 $1,606,006.12
Principal Balance Trading Factor 0.99494360 0.99494360 0.99494360 0.99494360
</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 $876,655.24 $1,461,092.06 $ 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 $ 652.18 $ 1,086.96 $ 0.00
Principal Allocation Factor 0.00074073 0.00074073 0.00000000
Scheduled Interest $ 4,748.55 $ 7,914.25 ($8.41)
Scheduled Interest Allocation Factor 0.00539329 0.00539329 0.00000000
Interest Adjustment $ 3.98 $ 6.63 ($0.01)
Interest Adjustment Allocation Factor 0.00000452 0.00000452 0.00000000
Net Interest Distributed $ 4,752.53 $ 7,920.88 ($8.40)
Distributed Allocation Factor 0.00539781 0.00539781 0.00000000
Other Distribution $ 0.00 $ 0.00 $ 0.00
Other Distribution Allocation Factor 0.00000000 0.00000000 0.00000000
Ending Total Distribution $ 5,404.71 $ 9,007.84 ($8.40)
Ending Principal Balance $876,003.06 $1,460,005.10 $ 0.00
Principal Balance Trading Factor 0.99494359 0.99494359 0.00000000
</TABLE>
