<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
January 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 (I.R.S. Employer
Jurisdiction of Incorporation) Number) Identification No.)
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)
<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 January 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: February 1, 1999
HEADLANDS MORTGAGE
SECURITIES INC.
By:/s/ Gilbert J. MacQuarrie
--------------------------------------
Gilbert J. MacQuarrie
Vice President, Treasurer and Secretary
(Principal Financial Officer and
Principal Accounting Officer)
<PAGE>
EXHIBIT INDEX
Exhibit Number Page Number
- -------------- -----------
10.1 Monthly Payment Date Statement distributed to
Certificateholders, dated January 25, 1999.........................5
<PAGE>
EXHIBIT 10.1
THE Distribution Date: 1/25/99
BANK OF
NEW
YORK
101 Barclay Street, 12E
New York, NY 10286
Attn: Franklin Austin, MBS Unit Headlands Mortgage Securities Inc.
(212)815-2297 Mortgage Pass-Through Certificates, Series 1998-3
Headlands Mortgage Company, Seller and Master Servicer
<TABLE>
<CAPTION>
Certificateholder Monthly Distribution Summary
- ------------------------------------------------------------------------------------------------------------------------------------
Certificate Pass Current Cumulative
Class Rate Beginning Through Principal Interest Total Realized Ending Realized
Class Cusip Description Type Balance Rate (%) Distribution Distribution Distribution Losses Balance Losses
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 42209EGD6 Senior Fix-30/360 216,562,200.00 6.650000 202,632.12 1,200,115.53 1,402,747.64 0.00 216,359,567.88 0.00
PO 42209EGE4 Strip PO Fix-30/360 1,002,392.41 0.000000 945.07 0.00 945.07 0.00 1,001,447.34 0.00
R 42209EGM6 Senior Fix-30/360 100.00 6.650000 100.00 0.56 100.56 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
B-1 42209EGF1 Junior Fix-30/360 4,556,300.00 6.650000 3,900.65 25,249.50 29,150.15 0.00 4,552,399.35 0.00
B-2 42209EGG9 Junior Fix-30/360 2,050,300.00 6.650000 1,755.26 11,362.08 13,117.34 0.00 2,048,544.74 0.00
B-3 42209EGH7 Junior Fix-30/360 1,366,900.00 6.650000 1,170.20 7,574.90 8,745.11 0.00 1,365,729.80 0.00
B-4 42209EGJ3 Junior Fix-30/360 797,400.00 6.650000 682.66 4,418.93 5,101.58 0.00 796,717.34 0.00
B-5 42209EGK0 Junior Fix-30/360 683,400.00 6.650000 585.06 3,787.18 4,372.23 0.00 682,814.94 0.00
B-6 42209EGL8 Junior Fix-30/360 797,451.59 6.650000 682.70 4,419.21 5,101.91 0.00 796,768.89 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Totals 227,816,444.00 212,453.72 1,256,927.89 1,469,381.59 0.00 227,603,990.28 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE Distribution Date: 1/25/99
BANK OF
NEW
YORK
101 Barclay Street, 12E
New York, NY 10286
Headlands Mortgage Securities Inc.
Attn: Franklin Austin, MBS Unit Mortgage Pass-Through Certificates, Series 1998-3
(212)815-2297 Headlands Mortgage Company, Seller and Master Servicer
Principal Distribution Detail
- -----------------------------------------------------------------------------------------------------------------------------
Original Beginning Scheduled Unscheduled Net Current
Certificate Certificate Principal Accretion Principal Principal Realized
Class Cusip Balance Balance Distribution Principal Adjustments Distribution Losses
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 42209EGD6 216,562,200.00 216,562,200.00 202,632.12 0.00 0.00 202,632.12 0.00
PO 42209EGE4 1,002,392.41 1,002,392.41 945.07 0.00 0.00 945.07 0.00
R 42209EGM6 100.00 100.00 100.00 0.00 0.00 100.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------
B-1 42209EGF1 4,556,300.00 4,556,300.00 3,900.65 0.00 0.00 3,900.65 0.00
B-2 42209EGG9 2,050,300.00 2,050,300.00 1,755.26 0.00 0.00 1,755.26 0.00
B-3 42209EGH7 1,366,900.00 1,366,900.00 1,170.20 0.00 0.00 1,170.20 0.00
B-4 42209EGJ3 797,400.00 797,400.00 682.66 0.00 0.00 682.66 0.00
B-5 42209EGK0 683,400.00 683,400.00 585.06 0.00 0.00 585.06 0.00
B-6 42209EGL8 797,451.59 797,451.59 682.70 0.00 0.00 682.70 0.00
- -----------------------------------------------------------------------------------------------------------------------------
Totals 227,816,444.00 227,816,444.00 212,453.72 0.00 0.00 212,453.72 0.00
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------
Ending Ending
Certificate Certificate
Class Cusip Balance Factor
- --------------------------------------------
<S> <C> <C> <C>
A-1 42209EGD6 216,359,567.88 0.99906432370
PO 42209EGE4 1,001,447.34 0.99905718101
R 42209EGM6 0.00 0.00000000000
- --------------------------------------------
B-1 42209EGF1 4,552,399.35 0.99914389879
B-2 42209EGG9 2,048,544.74 0.99914389879
B-3 42209EGH7 1,365,729.80 0.99914389879
B-4 42209EGJ3 796,717.34 0.99914389879
B-5 42209EGK0 682,814.94 0.99914389879
B-6 42209EGL8 796,768.89 0.99914389879
- --------------------------------------------
Totals 227,603,990.28
- --------------------------------------------
</TABLE>
<PAGE>
THE Distribution Date: 1/25/99
BANK OF
NEW
YORK
101 Barclay Street, 12E
New York, NY 10286
Attn: Franklin Austin, MBS Unit Headlands Mortgage Securities Inc.
(212)815-2297 Mortgage Pass-Through Certificates, Series 1998-3
Headlands Mortgage Company, Seller and Master Servicer
Interest Distribution Detail
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
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>
A-1 216,562,200.00 6.650000 1,200,115.53 0.00 0.00 1,200,115.53 0.00 0.00 1,200,115.53
PO 1,002,392.41 0.000000 0.00 0.00 0.00 0.00 0.00 0.00 0.00
R 100.00 6.650000 0.55 0.00 0.00 0.55 0.00 0.00 0.56
- ------------------------------------------------------------------------------------------------------------------------------------
B-1 4,556,300.00 6.650000 25,249.50 0.00 0.00 25,249.50 0.00 0.00 25,249.50
B-2 2,050,300.00 6.650000 11,362.08 0.00 0.00 11,362.08 0.00 0.00 11,362.08
B-3 1,366,900.00 6.650000 7,574.90 0.00 0.00 7,574.90 0.00 0.00 7,574.90
B-4 797,400.00 6.650000 4,418.93 0.00 0.00 4,418.93 0.00 0.00 4,418.93
B-5 683,400.00 6.650000 3,787.18 0.00 0.00 3,787.18 0.00 0.00 3,787.18
B-6 797,451.59 6.650000 4,419.21 0.00 0.00 4,419.21 0.00 0.00 4,419.21
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Totals 227,816,444.00 1,256,927.88 0.00 0.00 1,256,927.88 0.00 0.00 1,256,927.89
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</TABLE>
Page 3
<PAGE>
<TABLE>
<CAPTION>
THE Distribution Date: 1/25/99
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 1998-3
Headlands Mortgage Company, Seller and Master Servicer
Current Payment Information
Factors per $1,000
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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 1,000.000000000 0.935676302 5.541666667 999.064323698 6.650000
PO 42209EGE4 1,002,392.41 1,000.000000000 0.942818990 0.000000000 999.057181010 0.000000
R 42209EGM6 100.00 1,000.000000000 1,000.000000000 5.600000000 0.000000000 6.650000
- ------------------------------------------------------------------------------------------------------------------------------------
B-1 42209EGF1 4,556,300.00 1,000.000000000 0.856101211 5.541666667 999.143898789 6.650000
B-2 42209EGG9 2,050,300.00 1,000.000000000 0.856101211 5.541666667 999.143898789 6.650000
B-3 42209EGH7 1,366,900.00 1,000.000000000 0.856101211 5.541666667 999.143898789 6.650000
B-4 42209EGJ3 797,400.00 1,000.000000000 0.856101211 5.541666667 999.143898789 6.650000
B-5 42209EGK0 683,400.00 1,000.000000000 0.856101211 5.541666667 999.143898789 6.650000
B-6 42209EGL8 797,451.59 1,000.000000000 0.856101211 5.541665545 999.143898789 6.650000
- ------------------------------------------------------------------------------------------------------------------------------------
Totals 227,816,444.00 1,000.000000000 0.932565342 5.517283423 999.067434658
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</TABLE>
<PAGE>
THE
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 1998-3
Headlands Mortgage Company, Seller and Master Servicer
Pool Level Data
Distribution Date 1/25/99
Cut-off Date 12/ 1/98
Determination Date 1/ 1/99
Accrual Period Begin 12/ 1/98
End 1/ 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 227,816,444.42
Ending Aggregate Pool Stated Principal Balance 227,603,990.69
Beginning Aggregate Certificate Stated Principal Balance 227,816,444.00
Ending Aggregate Certificate Stated Principal Balance 227,603,990.27
Beginning Aggregate Loan Count 846
Loans Paid Off or Otherwise Removed Pursuant to
Pooling and Servicing Agreement 0
Ending Aggregate Loan Count 846
Beginning Weighted Average Loan Rate (WAC) 7.155218%
Ending Weighted Average Loan Rate (WAC) 7.155230%
Beginning Net Weighted Average Loan Rate 6.896718%
Ending Net Weighted Average Loan Rate 6.896730%
Aggregate Pool Prepayment 17,375.08
- ---------------------------------------------
Certificate Information
- ---------------------------------------------
Group 1
- -------
Senior Percentage 95.4801073751%
Senior Prepayment Percentage 100.0000000000%
Subordinate Percentage 4.5198926249%
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
Master Servicing Fees Paid 99,855.30
Sub Servicing Fees Paid 52,393.54
Trustee Fees Paid 1,613.70
Total Fees 153,862.54
- ---------------------------------------------
Delinquency Information
- ---------------------------------------------
<TABLE>
<CAPTION>
Group 1
- -------
<S> <C> <C> <C> <C>
Delinquency 30 - 59 Days 60 - 89 Days 90+ Days Totals
- ----------- ------------ ------------ -------- ------
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%
</TABLE>
Page 1
<PAGE>
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
- -----------------------------------------------
Subordination/Credit Enhancement Information
- -----------------------------------------------
Protection Original Current
- ---------- -------- -------
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% 1.000933%
Special Hazard Loss 3,919,310.00 3,919,309.99
Special Hazard Loss Percentage 1.720381% 1.721986%
Credit Support Original Current
- -------------- -------- -------
Class A 217,564,692.41 217,361,015.22
Class A Percentage 95.499995% 95.499650%
Class B-1 4,556,300.00 4,552,399.35
Class B-1 Percentage 1.999987% 2.000140%
Class B-2 2,050,300.00 2,048,544.74
Class B-2 Percentage 0.899979% 0.900048%
Class B-3 1,366,900.00 1,365,729.80
Class B-3 Percentage 0.600001% 0.600047%
Class B-4 797,400.00 796,717.34
Class B-4 Percentage 0.350019% 0.350045%
Class B-5 683,400.00 682,814.94
Class B-5 Percentage 0.299978% 0.300001%
Class B-6 797,451.59 796,768.89
Class B-6 Percentage 0.350041% 0.350068%
