<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 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>
<CAPTION>
<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 May 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: July 12, 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 May 25, 1999...................... 5
<PAGE>
THE
BANK OF
NEW
YORK
101 Barclay Street - 12E
New York, NY 10286 Exhibit 10.1
Headlands Mortgage Securities Inc.
Attn: Anna Felt
212-815-7166 Mortgage Pass-Through Certificates, Series 1998-3
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 216,562,200.00 215,159,667.81 461,763.12 0.00 0.00 461,763.12 0.00 214,697,904.69
PO 42209EGE4 1,002,392.41 998,223.10 1,127.17 0.00 0.00 1,127.17 0.00 997,095.92
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 4,540,530.61 4,013.28 0.00 0.00 4,013.28 0.00 4,536,517.33
B-2 42209EGH7 2,050,300.00 2,043,203.89 1,805.94 0.00 0.00 1,805.94 0.00 2,041,397.95
B-3 42209EGJ3 1,366,900.00 1,362,169.15 1,203.99 0.00 0.00 1,203.99 0.00 1,360,965.15
B-4 42209EGK0 797,400.00 794,640.19 702.37 0.00 0.00 702.37 0.00 793,937.83
B-5 42209EGL8 683,400.00 681,034.75 601.95 0.00 0.00 601.95 0.00 680,432.79
B-6 42209EGM6 797,451.59 794,691.60 702.41 0.00 0.00 702.41 0.00 793,989.19
- -----------------------------------------------------------------------------------------------------------------------------------
Totals 227,816,444.00 226,374,161.10 471,920.23 0.00 0.00 471,920.23 0.00 225,902,240.85
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------
Ending
Certificate
Class Factor
- ---------------------
<S> <C>
A-1 0.99139140945
PO 0.99471615554
R 0.00000000000
- ---------------------
B-1 0.99565817172
B-2 0.99565817172
B-3 0.99565817172
B-4 0.99565817172
B-5 0.99565817172
B-6 0.99565817172
- ---------------------
Totals
- ---------------------
</TABLE>
Page 2
<PAGE>
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
<TABLE>
<CAPTION>
Interest Distribution Detail
- ------------------------------------------------------------------------------------------------------------------------------
Beginning Pass Accrued Cumulative Total Net Unscheduled
Certificate Through Optimal Unpaid Deferred Interest Prepayment Interest
Class Balance Rate (%) Interest Interest Interest Due Int Shortfall Adjustment
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 215,159,667.81 6.650000 1,192,343.16 0.00 0.00 1,192,343.16 0.00 0.00
PO 998,223.10 0.000000 0.00 0.00 0.00 0.00 0.00 0.00
R 0.00 6.650000 0.00 0.00 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------
B-1 4,540,530.61 6.650000 25,162.11 0.00 0.00 25,162.11 0.00 0.00
B-2 2,043,203.89 6.650000 11,322.75 0.00 0.00 11,322.75 0.00 0.00
B-3 1,362,169.15 6.650000 7,548.69 0.00 0.00 7,548.69 0.00 0.00
B-4 794,640.19 6.650000 4,403.63 0.00 0.00 4,403.63 0.00 0.00
B-5 681,034.75 6.650000 3,774.07 0.00 0.00 3,774.07 0.00 0.00
B-6 794,691.60 6.650000 4,403.92 0.00 0.00 4,403.92 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------
Totals 226,374,161.10 1,248,958.33 0.00 0.00 1,248,958.33 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ----------------------
Interest
Class Paid
- ----------------------
<S> <C>
A-1 1,192,343.16
PO 0.00
R 0.00
- ----------------------
B-1 25,162.11
B-2 11,322.75
B-3 7,548.69
B-4 4,403.63
B-5 3,774.07
B-6 4,403.92
- ----------------------
Totals 1,248,958.33
- ----------------------
</TABLE>
Page 3
<PAGE>
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
<TABLE>
<CAPTION>
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 216,562,200.00 993.523651922 2.132242476 5.505776904 991.391409445 6.650000
PO 42209EGE4 1,002,392.41 995.840637768 1.124482233 0.000000000 994.716155535 0.000000
R 42209EGF1 100.00 0.000000000 0.000000000 0.000000000 0.000000000 6.650000
- ----------------------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 4,556,300.00 996.538991530 0.880819814 5.522486911 995.658171717 6.650000
B-2 42209EGH7 2,050,300.00 996.538991530 0.880819814 5.522486911 995.658171717 6.650000
B-3 42209EGJ3 1,366,900.00 996.538991530 0.880819814 5.522486911 995.658171717 6.650000
B-4 42209EGK0 797,400.00 996.538991530 0.880819814 5.522486911 995.658171717 6.650000
B-5 42209EGL8 683,400.00 996.538991530 0.880819814 5.522486911 995.658171717 6.650000
B-6 42209EGM6 797,451.59 996.538991530 0.880819814 5.522486911 995.658171717 6.650000
- ----------------------------------------------------------------------------------------------------------------------------
Totals 227,816,444.00 993.669100989 2.071493268 5.482301049 991.597607634
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
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
<TABLE>
<CAPTION>
<S> <C> <C>
Pool Level Data
Distrbution Date 5/25/99
Cut-off Date 12/ 1/98
Determination Date 5/ 1/99
Accrual Period Begin 4/ 1/99
End 5/ 1/99
Number of Days in Accrual Period 30
- -------------------------------------------------------------------------------------
Collateral Information
- -------------------------------------------------------------------------------------
Group 1
- -------
Cut-Off Date Balance 227,816,444.00
Beginning Aggregate Pool Stated Principal Balance 226,374,161.52
Ending Aggregate Pool Stated Principal Balance 225,902,241.28
Beginning Aggregate Certificate Stated Principal Balance 226,374,161.10
Ending Aggregate Certificate Stated Principal Balance 225,902,240.86
Beginning Aggregate Loan Count 845
Loans Paid Off or Otherwise Removed Pursuant to Pooling and Servicing Aggrement 1
Ending Aggregate Loan Count 844
Beginning Weighted Average Loan Rate (WAC) 7.155364%
Ending Weighted Average Loan Rate (WAC) 7.155033%
Beginning Net Weighted Average Loan Rate 6.896863%
Ending Net Weighted Average Loan Rate 6.896532%
Aggregate Pool Prepayment 271,789.20
- -------------------------------------------------------------------------------------
Certificate Information
- -------------------------------------------------------------------------------------
Group 1
- -------
Senior Percentage 95.4670093527%
Senior Prepayment Percentage 100.0000000000%
Subordinate Percentage 4.5329906473%
Subordinate Prepayment Percentage 0.0000000000%
</TABLE>
Page 1
<PAGE>
<TABLE>
<S> <C>
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 99,262.59
Sub Servicing Fees Paid 0.22
Trustee Fees Paid 1,603.48
----------
Total Fees 100,866.30
</TABLE>
- -------------------------------------------------------
Delinquency Information
- -------------------------------------------------------
Group 1
- -------
<TABLE>
<CAPTION>
Delinquency 30 - 59 Days 60 - 89 Days 90+ Days Totals
- ----------- ------------ ------------ -------- ------
<S> <C> <C> <C> <C>
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%
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>
- ---------------------------------------------------------------------------
Subordination/Credit Enhancement Information
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
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% 1.008473%
Special Hazard Loss 3,919,310.00 3,904,846.55
Special Hazard Loss Percentage 1.720381% 1.728556%
Credit Support Original Current
- -------------- -------- -------
Class A 217,564,692.41 215,695,000.62
Class A Percentage 95.499995% 95.481568%
Class B-1 4,556,300.00 4,536,517.33
Class B-1 Percentage 1.999987% 2.008177%
Class B-2 2,050,300.00 2,041,397.95
Class B-2 Percentage 0.899979% 0.903664%
Class B-3 1,366,900.00 1,360,965.15
Class B-3 Percentage 0.600001% 0.602458%
Class B-4 797,400.00 793,937.83
Class B-4 Percentage 0.350019% 0.351452%
Class B-5 683,400.00 680,432.79
Class B-5 Percentage 0.299978% 0.301207%
Class B-6 797,451.59 793,989.19
Class B-6 Percentage 0.350041% 0.351475%
</TABLE>
Page 3
