<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
November 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)
<TABLE>
<S> <C> <C>
Delaware 333-46019-3 68-0397342
-------- ----------- ----------
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)
</TABLE>
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 November 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: November 30, 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 November 25, 1999................... 5
<PAGE>
EXHIBIT 10.1
Distribution Date: 11/25/99
THE
BANK OF
NEW
YORK
101 Barclay Street - 12E
New York, NY 10286 Headlands Mortgage Securities Inc.
Mortgage Pass-Through Certificates, Series 1998-3
Attn: Anna Felt Headlands Mortgage Company, Seller and Master Servicer
212-815-7166
<TABLE>
<CAPTION>
Certificateholder Monthly Distribution Summary
- --------------------------------------------------------------------------------------------------------------------------------
Certificate Pass Current
Class Rate Beginning Through Principal Interest Total Realized
Class Cusip Description Type Balance Rate (%) Distribution Distribution Distribution Losses
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 42209EGD6 Senior Fix-30/360 208,314,031.45 6.650000 413,540.28 1,154,406.92 1,567,947.20 0.00
PO 42209EGE4 Strip PO Fix-30/360 972,728.33 0.000000 1,178.85 0.00 1,178.85 0.00
R 42209EGF1 Senior Fix-30/360 0.00 6.650000 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 Junior Fix-30/360 4,515,993.29 6.650000 4,220.86 25,026.13 29,246.99 0.00
B-2 42209EGH7 Junior Fix-30/360 2,032,162.29 6.650000 1,899.36 11,261.57 13,160.92 0.00
B-3 42209EGJ3 Junior Fix-30/360 1,354,807.90 6.650000 1,266.27 7,507.89 8,774.16 0.00
B-4 42209EGK0 Junior Fix-30/360 790,345.91 6.650000 738.69 4,379.83 5,118.53 0.00
B-5 42209EGL8 Junior Fix-30/360 677,354.39 6.650000 633.09 3,753.67 4,386.76 0.00
B-6 42209EGM6 Junior Fix-30/360 790,397.04 6.650000 738.74 4,380.12 5,118.86 0.00
- --------------------------------------------------------------------------------------------------------------------------------
Totals 219,447,820.60 424,216.14 1,210,716.13 1,634,932.27 0.00
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------
Cumulative
Ending Realized
Class Balance Losses
- --------------------------------------------------------------------
<S> <C> <C>
A-1 207,900,491.18 0.00
PO 971,549.47 0.00
R 0.00 0.00
- --------------------------------------------------------------------
B-1 4,511,772.43 0.00
B-2 2,030,262.93 0.00
B-3 1,353,541.63 0.00
B-4 789,607.21 0.00
B-5 676,721.30 0.00
B-6 789,658.30 0.00
- --------------------------------------------------------------------
Totals 219,023,604.45 0.00
- --------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Distribution Date: 11/25/99
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
v212-815-7166 Headlands Mortgage Company, Seller and Master Servicer
<TABLE>
<CAPTION>
Principal Distribution Detail
- ------------------------------------------------------------------------------------------------------------------------------------
Original Beginning Scheduled Unscheduled Net Current Ending
Certificate Certificate Principal Accretion Principal Principal Realized Certificate
Class Cusip Balance Balance Distribution Principal Adjustments Distribution Losses Balance
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 42209EGD6 216,562,200.00 208,314,031.45 413,540.28 0.00 0.00 413,540.28 0.00 207,900,491.18
PO 42209EGE4 1,002,393.00 972,728.33 1,178.85 0.00 0.00 1,178.85 0.00 971,549.47
R 42209EGF1 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 4,556,300.00 4,515,993.29 4,220.86 0.00 0.00 4,220.86 0.00 4,511,772.43
B-2 42209EGH7 2,050,300.00 2,032,162.29 1,899.36 0.00 0.00 1,899.36 0.00 2,030,262.93
B-3 42209EGJ3 1,366,900.00 1,354,807.90 1,266.27 0.00 0.00 1,266.27 0.00 1,353,541.63
B-4 42209EGK0 797,400.00 790,345.91 738.69 0.00 0.00 738.69 0.00 789,607.21
B-5 42209EGL8 683,400.00 677,354.39 633.09 0.00 0.00 633.09 0.00 676,721.30
B-6 42209EGM6 797,452.00 790,397.04 738.74 0.00 0.00 738.74 0.00 789,658.30
- ------------------------------------------------------------------------------------------------------------------------------------
Totals 227,816,445.00 219,447,820.60 424,216.14 0.00 0.00 24,216.14 0.00 219,023,604.45
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------
Ending
Certificate
Class Factor
- ---------------------------------
<S> <C>
A-1 0.96000359793
PO 0.96923010623
R 0.00000000000
- ---------------------------------
B-1 0.99022725152
B-2 0.99022725152
B-3 0.99022725152
B-4 0.99022725152
B-5 0.99022725152
B-6 0.99022674240
- ---------------------------------
Totals
- ---------------------------------
</TABLE>
Page 2
<PAGE>
THE Distribution Date: 11/25/99
BANK OF
NEW
YORK
101 Barclay Street - 12E
New York, NY 10286 Headlands Mortgage Securities Inc.
Mortgage Pass-Through Certificates, Series 1998-3
Attn: Anna Felt Headlands Mortgage Company, Seller and Master Servicer
212-815-7166
<TABLE>
<CAPTION>
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-1 208,314,031.45 6.650000 1,154,406.92 0.00 0.00 1,154,406.92
PO 972,728.33 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 4,515,993.29 6.650000 25,026.13 0.00 0.00 25,026.13
B-2 2,032,162.29 6.650000 11,261.57 0.00 0.00 11,261.57
B-3 1,354,807.90 6.650000 7,507.89 0.00 0.00 7,507.89
B-4 790,345.91 6.650000 4,379.83 0.00 0.00 4,379.83
B-5 677,354.39 6.650000 3,753.67 0.00 0.00 3,753.67
B-6 790,397.04 6.650000 4,380.12 0.00 0.00 4,380.12
- ----------------------------------------------------------------------------------------------------------------------------
Totals 219,447,820.60 1,210,716.13 0.00 0.00 1,210,716.13
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------
Net Unscheduled
Prepayment Interest Interest
Class Int Shortfall Adjustment Paid
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
A-1 0.00 0.00 1,154,406.92
PO 0.00 0.00 0.00
R 0.00 0.00 0.00
- -------------------------------------------------------------------------------
B-1 0.00 0.00 25,026.13
B-2 0.00 0.00 11,261.57
B-3 0.00 0.00 7,507.89
B-4 0.00 0.00 4,379.83
B-5 0.00 0.00 3,753.67
B-6 0.00 0.00 4,380.12
- -------------------------------------------------------------------------------
Totals 0.00 0.00 1,210,716.13
- -------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
THE Distribution Date: 11/25/99
BANK OF
NEW
YORK
101 Barclay Street - 12E
New York, NY 10286 Headlands Mortgage Securities Inc.
Mortgage Pass-Through Certificates, Series 1998-3
Attn: Anna Felt Headlands Mortgage Company, Seller and Master Servicer
212-815-7166
<TABLE>
<CAPTION>
Current Payment Information
Factors per $1,000
- -----------------------------------------------------------------------------------------------------
Original Beginning Cert.
Certificate Notional Principal
Class Cusip Balance Balance Distribution
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A-1 42209EGD6 216,562,200.00 961.913166069 1.909568138
PO 42209EGE4 1,002,393.00 970.406145161 1.176038934
R 42209EGF1 100.00 0.000000000 0.000000000
- -----------------------------------------------------------------------------------------------------
B-1 42209EGG9 4,556,300.00 991.153630750 0.926379234
B-2 42209EGH7 2,050,300.00 991.153630750 0.926379234
B-3 42209EGJ3 1,366,900.00 991.153630750 0.926379234
B-4 42209EGK0 797,400.00 991.153630750 0.926379234
B-5 42209EGL8 683,400.00 991.153630750 0.926379234
B-6 42209EGM6 797,452.00 991.153121160 0.926378758
- -----------------------------------------------------------------------------------------------------
Totals 227,816,445.00 963.265933677 1.862096215
- -----------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------------
Ending Cert. Pass
Interest Interest Notional Through
Class Distribution Distribution Balance Rate (%)
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A-1 5.330602129 5.330602129 960.003597931 6.650000
PO 0.000000000 0.000000000 969.230106226 0.000000
R 0.000000000 0.000000000 0.000000000 6.650000
- ---------------------------------------------------------------------------------------------
B-1 5.492643037 5.492643037 990.227251515 6.650000
B-2 5.492643037 5.492643037 990.227251515 6.650000
B-3 5.492643037 5.492643037 990.227251515 6.650000
B-4 5.492643037 5.492643037 990.227251515 6.650000
B-5 5.492643037 5.492643037 990.227251515 6.650000
B-6 5.492640213 5.492640213 990.226742402 6.650000
- ---------------------------------------------------------------------------------------------
Totals 5.314436936 5.314436936 961.403837418
- ---------------------------------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
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
<TABLE>
<CAPTION>
<S> <C>
Pool Level Data
Distrbution Date 11/25/99
Cut-off Date 12/1/98
Determination Date 11/1/99
Accrual Period Begin 10/1/99
End 11/1/99
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 219,447,821.01
Ending Aggregate Pool Stated Principal Balance 219,023,604.87
Beginning Aggregate Certificate Stated Principal Balance 219,447,820.59
Ending Aggregate Certificate Stated Principal Balance 219,023,604.45
Beginning Aggregate Loan Count 830
Loans Paid Off or Otherwise Removed Pursuant to Pooling and Servicing Aggrement 3
Ending Aggregate Loan Count 827
Beginning Weighted Average Loan Rate (WAC) 7.154556%
Ending Weighted Average Loan Rate (WAC) 7.154515%
Beginning Net Weighted Average Loan Rate 6.896054%
Ending Net Weighted Average Loan Rate 6.896013%
Aggregate Pool Prepayment 219,071.03
Pool Prepayment Rate 1.1914 CPR
- ----------------------------------------------------------------------------------------
Certificate Information
- ----------------------------------------------------------------------------------------
Group 1
- -------
Senior Percentage 95.3490987441%
Senior Prepayment Percentage 100.0000000000%
Subordinate Percentage 4.6509012559%
Subordinate Prepayment Percentage 0.0000000000%
Prepayment Compensation
Total Gross Prepayment Interest Shortfall 61.45
Compensation for Gross PPIS from Servicing Fees 61.45
Other Gross PPIS Compensation 0.00
-----
</TABLE>
Page 5
<PAGE>
THE
BANK OF
NEW YORK
101 Barclay Street - 12E
New York, NY 10286 Headlands Mortgage Securities Inc.
Mortgage Pass-Through Certificates, Series 1998-3
Attn: Anna Felt Headlands Mortgage Company, Seller and Master Servicer
212-815-7166
<TABLE>
<S> <C> <C> <C> <C>
---------
Total Net PPIS (Non-Supported PPIS) 0.00
Master Servicing Fees Paid 96,044.08
Sub Servicing Fees Paid 0.31
Trustee Fees Paid 1,554.42
---------
Total Fees 97,598.81
---------------------------------------------------
Delinquency Information
---------------------------------------------------
Group 1
-------
Delinquency 30 - 59 Days 60 - 89 Days 90+ Days Totals
----------- ------------ ------------ -------- ------
Scheduled Principal Balance 0.00 0.00 58,772.74 58,772.74
Percentage of Total Pool Balance 0.000000% 0.000000% 0.026834% 0.026834%
Number of Loans 0 0 1 1
Percentage of Total Loans 0.000000% 0.000000% 0.120919% 0.120919%
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
</TABLE>
Page 2
<PAGE>
THE
BANK OF
NEW
YORK
101 Barclay Street - 12E
New York, NY 10286 Headlands Mortgage Securities Inc.
Mortgage Pass-Through Certificates, Series 1998-3
Attn: Anna Felt Headlands Mortgage Company, Seller and Master Servicer
212-815-7166
<TABLE>
<CAPTION>
<S> <C> <C>
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% 1.040145%
Special Hazard Loss 3,919,310.00 3,883,693.69
Special Hazard Loss Percentage 1.720381% 1.773185%
Credit Support Original Current
- -------------- -------- -------
Class A 217,564,693.00 208,872,040.65
Class A Percentage 95.499995% 95.365082%
Class B-1 4,556,300.00 4,511,772.43
Class B-1 Percentage 1.999987% 2.059948%
Class B-2 2,050,300.00 2,030,262.93
Class B-2 Percentage 0.899979% 0.926961%
Class B-3 1,366,900.00 1,353,541.63
Class B-3 Percentage 0.600001% 0.617989%
Class B-4 797,400.00 789,607.21
Class B-4 Percentage 0.350019% 0.360512%
Class B-5 683,400.00 676,721.30
Class B-5 Percentage 0.299978% 0.308972%
Class B-6 797,452.00 789,658.30
Class B-6 Percentage 0.350041% 0.360536%
</TABLE>
Page 3
