<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
August 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 December 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 1998-3)
HEADLANDS MORTGAGE SECURITIES INC.
----------------------------------
(Exact Name of Registrant as Specified in Its Charter)
Delaware 333-46019-3 68-0397342
-------- ----------- ----------
(State or Other (Commission File Number) (I.R.S. Employer
Jurisdiction of Identification No.)
Incorporation)
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 1998-3 (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 August 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: August 27, 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
<TABLE>
<CAPTION>
Exhibit Number Page Number
- -------------- -----------
<S> <C>
10.1 Monthly Payment Date Statement distributed to
Certificateholders, dated August 25, 1999............. 5
</TABLE>
<PAGE>
EXHIBIT 10.1
<PAGE>
<TABLE>
<CAPTION>
Exhibit 10.1
Distribution Date: 8/25/99
THE
BANK OF
NEW
YORK
101 Barclay Street - 12E
New York, NY 10286
Headlands Mortgage Securities Inc.
Attn: Anna Felt
212-815-7166 Mortgage Pass-Through Certificates, Series 1998-3
Headlands Mortgage Company, Seller and Master Servicer
Certificateholder Monthly Distribution Summary
- ------------------------------------------------------------------------------------------------------------------------------------
Certificate Pass
Class Rate Beginning Through Principal Interest
Class Cusip Description Type Balance Rate (%) Distribution Distribution
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 42209EGD6 Senior Fix-30/360 212,426,069.32 6.650000 1,265,128.84 1,177,194.47
PO 42209EGE4 Strip PO Fix-30/360 977,064.68 0.000000 1,946.49 0.00
R 42209EGF1 Senior Fix-30/360 0.00 6.650000 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 Junior Fix-30/360 4,528,408.18 6.650000 4,114.71 25,094.93
B-2 42209EGH7 Junior Fix-30/360 2,037,748.89 6.650000 1,851.59 11,292.53
B-3 42209EGJ3 Junior Fix-30/360 1,358,532.39 6.650000 1,234.42 7,528.53
B-4 42209EGK0 Junior Fix-30/360 792,518.64 6.650000 720.12 4,391.87
B-5 42209EGL8 Junior Fix-30/360 679,216.50 6.650000 617.17 3,763.99
B-6 42209EGM6 Junior Fix-30/360 792,569.91 6.650000 720.16 4,392.16
- ------------------------------------------------------------------------------------------------------------------------------------
Totals 223,592,128.51 1,276,333.50 1,233,658.48
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Current Cumulalative
Total Realized Ending Realilized
Class Distribution Losses Balance Lossess
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A-1 2,442,323.31 0.00 211,160,940.48 0.00
PO 1,946.49 0.00 975,118.19 0.00
R 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
B-1 29,209.64 0.00 4,524,293.47 0.00
B-2 13,144.11 0.00 2,035,897.31 0.00
B-3 8,762.96 0.00 1,357,297.97 0.00
B-4 5,111.99 0.00 791,798.52 0.00
B-5 4,381.16 0.00 678,599.34 0.00
B-6 5,112.32 0.00 791,849.75 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Totals 2,509,991.98 0.00 222,315,795.03 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
<TABLE>
<CAPTION>
Distribution Date: 8/25/99
THE
BANK OF
NEW
YORK
101 Barclay Street - 12E
New York, NY 10286
Headlands Mortgage Securities Inc.
Attn: Anna Felt
212-815-7166 Mortgage Pass-Through Certificates, Series 1998-3
Headlands Mortgage Company, Seller and Master Servicer
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>
A-1 42209EGD6 216,562,200.00 212,426,069.32 1,265,128.84 0.00 0.00
PO 42209EGE4 1,002,393.00 977,064.68 1,946.49 0.00 0.00
R 42209EGF1 100.00 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 4,556,300.00 4,528,408.18 4,114.71 0.00 0.00
B-2 42209EGH7 2,050,300.00 2,037,748.89 1,851.59 0.00 0.00
B-3 42209EGJ3 1,366,900.00 1,358,532.39 1,234.42 0.00 0.00
B-4 42209EGK0 797,400.00 792,518.64 720.12 0.00 0.00
B-5 42209EGL8 683,400.00 679,216.50 617.17 0.00 0.00
B-6 42209EGM6 797,452.00 792,569.91 720.16 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------
Totals 227,816,445.00 223,592,128.51 1,276,333.50 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------
Net Current Ending Ending
Principal Realized Certificate Certificate
Class Distribution Losses Balance Factor
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A-1 1,265,128.84 0.00 211,160,940.48 0.97505908453
PO 1,946.49 0.00 975,118.19 0.97279030433
R 0.00 0.00 0.00 0.00000000000
- -------------------------------------------------------------------------------------------
B-1 4,114.71 0.00 4,524,293.47 0.99297532358
B-2 1,851.59 0.00 2,035,897.31 0.99297532358
B-3 1,234.42 0.00 1,357,297.97 0.99297532358
B-4 720.12 0.00 791,798.52 0.99297532358
B-5 617.17 0.00 678,599.34 0.99297532358
B-6 720.16 0.00 791,849.75 0.99297481305
- -------------------------------------------------------------------------------------------
Totals 1,276,333.50 0.00 222,315,795.03
- -------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE Distribution Date: 8/25/99
BANK OF
NEW
YORK
101 Barclay Street - 12E
New York, NY 10286
Headlands Mortgage Securities Inc.
Attn: Anna Felt
212-815-7166 Mortgage Pass-Through Certificates, Series 1998-3
Headlands Mortgage Company, Seller and Master Servicer
Interest Distribution Detail
- -----------------------------------------------------------------------------------------------------------------------------
Beginning Pass Accrued Cumulative Total
Certificate Through Optimal Unpaid Deferred Interest
Class Balance Rate (%) Interest Interest Interest Due
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
A-1 212,426,069.32 6.650000 1,177,194.47 0.00 0.00 1,177,194.47
PO 977,064.68 0.000000 0.00 0.00 0.00 0.00
R 0.00 6.650000 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------------
B-1 4,528,408.18 6.650000 25,094.93 0.00 0.00 25,094.93
B-2 2,037,748.89 6.650000 11,292.53 0.00 0.00 11,292.53
B-3 1,358,532.39 6.650000 7,528.53 0.00 0.00 7,528.53
B-4 792,518.64 6.650000 4,391.87 0.00 0.00 4,391.87
B-5 679,216.50 6.650000 3,763.99 0.00 0.00 3,763.99
B-6 792,569.91 6.650000 4,392.16 0.00 0.00 4,392.16
- ------------------------------------------------------------------------------------------------------------------------------
Totals 223,592,128.51 1,233,658.48 0.00 0.00 1,233,658.48
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------
Net Unscheduled
Prepayment Interest Interest
Class Int Shortfall Adjustment Paid
- -----------------------------------------------------------------------
<S> <C> <C> <C>
A-1 0.00 0.00 1,177,194.47
PO 0.00 0.00 0.00
R 0.00 0.00 0.00
- -----------------------------------------------------------------------
B-1 0.00 0.00 25,094.93
B-2 0.00 0.00 11,292.53
B-3 0.00 0.00 7,528.53
B-4 0.00 0.00 4,391.87
B-5 0.00 0.00 3,763.99
B-6 0.00 0.00 4,392.16
- -----------------------------------------------------------------------
Totals 0.00 0.00 1,233,658.48
- -----------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
<TABLE>
<CAPTION>
Distribution Date: 8/25/99
THE
BANK OF
NEW
YORK
101 Barclay Street - 12E
New York, NY 10286
Headlands Mortgage Securities Inc.
Attn: Anna Felt
212-815-7166 Mortgage Pass-Through Certificates, Series 1998-3
Headlands Mortgage Company, Seller and Master Servicer
Current Payment Information
Factors per $1,000
- ---------------------------------------------------------------------------------------------------------------------------------
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>
A-1 42209EGD6 216,562,200.00 980.900957410 5.841872878 5.435826139 975.059084532 6.650000
PO 42209EGE4 1,002,393.00 974.732150621 1.941846288 0.000000000 972.790304332 0.000000
R 42209EGF1 100.00 0.000000000 0.000000000 0.000000000 0.000000000 6.650000
- ---------------------------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 4,556,300.00 993.878404796 0.903081219 5.507742827 992.975323577 6.650000
B-2 42209EGH7 2,050,300.00 993.878404796 0.903081219 5.507742827 992.975323577 6.650000
B-3 42209EGJ3 1,366,900.00 993.878404796 0.903081219 5.507742827 992.975323577 6.650000
B-4 42209EGK0 797,400.00 993.878404796 0.903081219 5.507742827 992.975323577 6.650000
B-5 42209EGL8 683,400.00 993.878404796 0.903081219 5.507742827 992.975323577 6.650000
B-6 42209EGM6 797,452.00 993.877893806 0.903080755 5.507739995 992.974813051 6.650000
- ---------------------------------------------------------------------------------------------------------------------------------
Totals 227,816,445.00 981.457368058 5.602464300 5.415142353 975.854903846
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
<TABLE>
<CAPTION>
THE
BANK OF
NEW YORK
101 Barclay Street - 12E
New York, NY 10286
Headlands Mortgage Securities Inc.
Attn: Anna Felt Mortgage Pass-Through Certificates, Series 1998-3
212-815-7166 Headlands Mortgage Company, Seller and Master Servicer
Pool Level Data
<S> <C>
Distribution Date 8/25/99
Cut-off Date 12/ 1/98
Determination Date 8/ 1/99
Accrual Period Begin 7/ 1/99
End 8/ 1/99
Number of Days in Accrual Period 31
- ---------------------------------------------------------------------
Collateral Information
- ---------------------------------------------------------------------
Group 1
-------
Cut-Off Date Balance 227,816,444.00
Beginning Aggregate Pool Stated Principal Balance 223,592,128.94
Ending Aggregate Pool Stated Principal Balance 222,315,795.44
Beginning Aggregate Certificate Stated Principal Balance 223,592,128.52
Ending Aggregate Certificate Stated Principal Balance 222,315,795.02
Beginning Aggregate Loan Count 840
Loans Paid Off or Otherwise Removed Pursuant to Pooling and Servicing Agreement 4
Ending Aggregate Loan Count 836
Beginning Weighted Average Loan Rate (WAC) 7.156120%
Ending Weighted Average Loan Rate (WAC) 7.156353%
Beginning Net Weighted Average Loan Rate 6.897619%
Ending Net Weighted Average Loan Rate 6.897852%
Aggregate Pool Prepayment 1,073,127.56
- ---------------------------------------------------------------------
Certificate Information
- ---------------------------------------------------------------------
Group 1
-------
Senior Percentage 95.4230435528%
Senior Prepayment Percentage 100.0000000000%
Subordinate Percentage 4.5769564472%
Subordinate Prepayment Percentage 0.0000000000%
</TABLE>
Page 1
<PAGE>
<TABLE>
<CAPTION>
Prepayment Compensation
<S> <C>
Total Gross Prepayment Interest Shortfall 4,040.10
Compensation for Gross PPIS from Servicing Fees 4,040.10
Other Gross PPIS Compensation 0.00
---------
Total Net PPIS (Non-Supported PPIS) 0.00
Master Servicing Fees Paid 94,094.23
Sub Servicing Fees Paid 0.26
Trustee Fees Paid 1,583.78
---------
Total Fees 95,678.27
</TABLE>
- ------------------------------------------------------------
Delinquency Information
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Group 1
- -------
Delinquency 30 - 59 Days 60 - 89 Days 90+ Days Totals
- ----------- ------------ ------------ -------- ------
<S> <C> <C> <C> <C>
Scheduled Principal Balance 0.00 58,772.74 0.00 58,772.74
Percentage of Total Pool Balance 0.000000% 0.026437% 0.000000% 0.026437%
Number of Loans 0 1 0 1
Percentage of Total Loans 0.000000% 0.119617% 0.000000% 0.119617%
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 100,000.00 0.00
Bankruptcy Percentage 0.043895% 0.000000%
Credit/Fraud Loss 2,278,164.00 2,278,164.00
Credit/Fraud Loss Percentage 1.000000% 1.024742%
Special Hazard Loss 3,919,310.00 3,894,479.00
Special Hazard Loss Percentage 1.720381% 1.751778%
Credit Support Original Current
- --------------- ------- -------
Class A 217,564,693.00 212,136,058.67
Class A Percentage 95.499995% 95.421047%
Class B-1 4,556,300.00 4,524,293.47
Class B-1 Percentage 1.999987% 2.035075%
Class B-2 2,050,300.00 2,035,897.31
Class B-2 Percentage 0.899979% 0.915768%
Class B-3 1,366,900.00 1,357,297.97
Class B-3 Percentage 0.600001% 0.610527%
Class B-4 797,400.00 791,798.52
Class B-4 Percentage 0.350019% 0.356159%
Class B-5 683,400.00 678,599.34
Class B-5 Percentage 0.299978% 0.305241%
Class B-6 797,452.00 791,849.75
Class B-6 Percentage 0.350041% 0.356182%
</TABLE>
Page 3
