<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
February 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 Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
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 February 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: March 18, 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 February 25, 1999.................. 5
<PAGE>
EXHIBIT 10.1
<PAGE>
THE Distribution Date: 2/25/99
BANK OF
NEW
YORK
101 Barclay Street - 12E
New York, NY 10286
Attn: Anna Felt
212-815-7166
HEADLANDS MORTGAGE SECURITIES INC.
Mortgage Pass-Through Certificates, Series 1998-3
Headlands Mortgage Company, Seller and Master Servicer
Certificateholder Monthly Distribution Summary
<TABLE>
<CAPTION>
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-30/360 216,359,567.88 6.650000 490,353.21 1,198,992.61
PO 42209EGE4 Strip PO Fix-30/360 1,001,447.34 0.000000 1,016.82 0.00
R 42209EGF1 Senior Fix-30/360 0.00 6.650000 0.00 0.00
Current Cumulative
Total Realized Ending Realized
Class Distribution Losses Balance Losses
- ------------------------------------------------------------------
A-1 1,689,345.81 0.00 215,869,214.67 0.00
PO 1,016.82 0.00 1,000,430.51 0.00
R 0.00 0.00 0.00 0.00
Certificate Pass
Class Rate Beginning Through Principal Interest
Class Cusip Description Type Balance Rate (%) Distribution Distribution
- ---------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 Junior Fix-30/360 4,552,399.35 6.650000 3,928.94 25,227.88
B-2 42209EGH7 Junior Fix-30/360 2,048,544.74 6.650000 1,767.99 11,352.35
B-3 42209EGJ3 Junior Fix-30/360 1,365,729.80 6.650000 1,178.69 7,568.42
B-4 42209EGK0 Junior Fix-30/360 796,717.34 6.650000 687.61 4,415.14
B-5 42209EGL8 Junior Fix-30/360 682,814.94 6.650000 589.30 3,783.93
B-6 42209EGM6 Junior Fix-30/360 796,768.89 6.650000 687.65 4,415.43
- ---------------------------------------------------------------------------------------------------------------
Totals 227,603,990.28 500,210.21 1,255,755.76
- ---------------------------------------------------------------------------------------------------------------
Current Cumulative
Total Realized Ending Realized
Class Distribution Losses Balance Losses
- ------------------------------------------------------------------
B-1 29,156.82 0.00 4,548,470.41 0.00
B-2 13,120.34 0.00 2,046,776.74 0.00
B-3 8,747.11 0.00 1,364,551.10 0.00
B-4 5,102.75 0.00 796,029.74 0.00
B-5 4,373.23 0.00 682,225.64 0.00
B-6 5,103.08 0.00 796,081.24 0.00
- ------------------------------------------------------------------
Totals 1,755,965.96 0.00 227,103,780.05 0.00
- ------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Distribution Date: 2/25/99
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
212-815-7166 Headlands Mortgage Company, Seller and Master Servicer
<TABLE>
<CAPTION>
Principal Distribution Detail
Unscheduled Net
Accre- Princi- Princi-
Original Beginning Scheduled tion pal pal Current Ending Ending
Certificate Certificate Principal Princi- Adjust- Distri- Realized Certificate Certificate
Class Cusip Balance Balance Distribution pal ments bution Losses Balance Factor
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 42209EGD6 216,562,200.00 216,359,567.88 490,353.21 0.00 0.00 490,353.21 0.00 215,869,214.67 0.99680006333
PO 42209EGE4 1,002,392.41 1,001,447.34 1,016.82 0.00 0.00 1,016.82 0.00 1,000,430.51 0.99804278595
R 42209EGF1 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00000000000
- ------------------------------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 4,556,300.00 4,552,399.35 3,928.94 0.00 0.00 3,928.94 0.00 4,548,470.41 0.99828158952
B-2 42209EGH7 2,050,300.00 2,048,544.74 1,767.99 0.00 0.00 1,767.99 0.00 2,046,776.74 0.99828158952
B-3 42209EGJ3 1,366,900.00 1,365,729.80 1,178.69 0.00 0.00 1,178.69 0.00 1,364,551.10 0.99828158952
B-4 42209EGK0 797,400.00 796,717.34 687.61 0.00 0.00 687.61 0.00 796,029.74 0.99828158952
B-5 42209EGL8 683,400.00 682,814.94 589.30 0.00 0.00 589.30 0.00 682,225.64 0.99828158952
B-6 42209EGM6 797,451.59 796,768.89 687.65 0.00 0.00 687.65 0.00 796,081.24 0.99828158952
- ------------------------------------------------------------------------------------------------------------------------------------
Totals 227,816,444.00 227,603,990.28 500,210.21 0.00 0.00 500,210.21 0.00 227,103,780.05
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Distribution Date: 2/25/99
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
212-815-7166 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-1 216,359,567.88 6.650000 1,198,992.61 0.00 0.00 1,198,992.61 0.00 0.00 1,198,992.61
PO 1,001,447.34 0.000000 0.00 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 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
B-1 4,552,399.35 6.650000 25,227.88 0.00 0.00 25,227.88 0.00 0.00 25,227.88
B-2 2,048,544.74 6.650000 11,352.35 0.00 0.00 11,352.35 0.00 0.00 11,352.35
B-3 1,365,729.80 6.650000 7,568.42 0.00 0.00 7,568.42 0.00 0.00 7,568.42
B-4 796,717.34 6.650000 4,415.14 0.00 0.00 4,415.14 0.00 0.00 4,415.14
B-5 682,814.94 6.650000 3,783.93 0.00 0.00 3,783.93 0.00 0.00 3,783.93
B-6 796,768.89 6.650000 4,415.43 0.00 0.00 4,415.43 0.00 0.00 4,415.43
- -----------------------------------------------------------------------------------------------------------------------------------
Totals 227,603,990.28 1,255,755.76 0.00 0.00 1,255,755.76 0.00 0.00 1,255,755.76
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
Distribution Date: 2/25/99
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
212-815-7166 Headlands Mortgage Company, Seller and Master Servicer
Current Payment Information
Factors per $1,000
<TABLE>
<CAPTION> Original Beginning Cert. Ending Cert. Pass
Certificate National Principal Interest National Through
Class Cusip Balance Balance Distribution Distribution Balance Rate(%)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 42209EGD6 216,562,200.00 999.064323698 2.264260373 5.536481460 996.800063325 6.650000
PO 42209EGE4 1,002,392.41 999.057181010 1.014395056 0.000000000 998.042785954 0.000000
R 42209EGF1 100.00 0.000000000 0.000000000 0.000000000 0.000000000 6.650000
- --------------------------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 4,556,300.00 999.143898789 0.862309271 5.536922439 998.281589518 6.650000
B-2 42209EGH7 2,050,300.00 999.143898789 0.862309271 5.536922439 998.281589518 6.650000
B-3 42209EGJ3 1,366,900.00 999.143898789 0.862309271 5.536922439 998.281589518 6.650000
B-4 42209EGK0 797,400.00 999.143898789 0.862309271 5.536922439 998.281589518 6.650000
B-5 42209EGL8 683,400.00 999.143898789 0.862309271 5.536922439 998.281589518 6.650000
B-6 42209EGM6 797,451.59 999.143898789 0.862309271 5.536925445 998.281589518 6.650000
- --------------------------------------------------------------------------------------------------------------------------------
Totals 227,816,444.00 999.067434658 2.195672100 5.512138360 996.871762470
- --------------------------------------------------------------------------------------------------------------------------------
</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> <C>
Pool Level Data
Distrbution Date 2/25/99
Cut-off Date 12/ 1/98
Determination Date 2/1/99
Accrual Period Begin 1/1/99
End 2/1/99
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 227,603,990.69
Ending Aggregate Pool Stated Principal Balance 227,103,780.48
Beginning Aggregate Certificate Stated Principal Balance 227,603,990.27
Ending Aggregate Certificate Stated Principal Balance 227,103,780.06
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) 7.155294%
Ending Weighted Average Loan Rate (WAC) 7.155343%
Beginning Net Weighted Average Loan Rate 6.896794%
Ending Net Weighted Average Loan Rate 6.896843%
Aggregate Pool Prepayment 303,732.77
- -----------------------------------------------------------------------
Certificate Information
- -----------------------------------------------------------------------
Group 1
-------
Senior Percentage 95.4797616477%
Senior Prepayment Percentage 100.0000000000%
Subordinate Percentage 4.5202383523%
Subordinate Prepayment Percentage 0.0000000000%
</TABLE>
Page 1
<PAGE>
<TABLE>
<CAPTION>
<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 99,776.69
Sub Servicing Fees Paid 0.00
Trustee Fees Paid 1,612.19
----------
Total Fees 101,388.88
<CAPTION>
Delinquency Information
Group 1
- -------
Delinquency 30-59 Days 60-89 Days 90+ Days Totals
- ----------- ---------- ---------- ---------- ------
<S> <C> <C> <C> <C>
Scheduled Principal Balance 177,491.39 0.00 0.00 177,491.39
Percentage of Total Pool Balance 0.078154% 0.000000% 0.000000% 0.078154%
Number of Loans 1 0 0 1
Percentage of Total Loans 0.118203% 0.000000% 0.000000% 0.118203%
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 Loses 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% 1.003138%
Special Hazard Loss 3,919,310.00 3,915,024.30
Special Hazard Loss Percentage 1.720381% 1.723892%
<CAPTION>
Credit Support Original Current
- -------------- -------- -------
<S> <C> <C>
Class A 217,564,692.41 216,869,645.19
Class A Percentage 95.499995% 95.493631%
Class B-1 4,556,300.00 4,548,470.41
Class B-1 Percentage 1.999987% 2.002816%
Class B-2 2,050,300.00 2,046,776.74
Class B-2 Percentage 0.899979% 0.901252%
Class B-3 1,366,900.00 1,364,551.10
Class B-3 Percentage 0.600001% 0.600849%
Class B-4 797,400.00 796,029.74
Class B-4 Percentage 0.350019% 0.350514%
Class B-5 683,400.00 682,225.64
Class B-5 Percentage 0.299978% 0.300403%
Class B-6 797,451.59 796,081.24
Class B-6 Percentage 0.350041% 0.350536%
</TABLE>
Page 3
