<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
June 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 June 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 June 25, 1999..................5
<PAGE>
Exhibit 10.1
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
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-30/360 214,697,904.69 6.650000 947,575.98 1,189,784.22
PO 42209EGE4 Strip PO Fix-30/360 997,095.92 0.000000 1,115.60 0.00
R 42209EGF1 Senior Fix-30/360 0.00 6.650000 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 Junior Fix-30/360 4,536,517.33 6.650000 4,030.65 25,139.87
B-2 42209EGH7 Junior Fix-30/360 2,041,397.95 6.650000 1,813.76 11,312.75
B-3 42209EGJ3 Junior Fix-30/360 1,360,965.15 6.650000 1,209.20 7,542.02
B-4 42209EGK0 Junior Fix-30/360 793,937.83 6.650000 705.41 4,399.74
B-5 42209EGL8 Junior Fix-30/360 680,432.79 6.650000 604.56 3,770.73
B-6 42209EGM6 Junior Fix-30/360 793,989.19 6.650000 705.45 4,400.02
- ------------------------------------------------------------------------------------------------------------------------------------
Totals 225,902,240.85 957,760.61 1,246,349.35
<CAPTION>
- -----------------------------------------------------------------------------------
Current Cumulative
Total Realized Ending Realized
Class Distribution Losses Balance Losses
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A-1 2,137,360.20 0.00 213,750,328.71 0.00
PO 1,115.60 0.00 995,980.32 0.00
R 0.00 0.00 0.00 0.00
- -----------------------------------------------------------------------------------
B-1 29,170.52 0.00 4,532,486.68 0.00
B-2 13,126.51 0.00 2,039,584.19 0.00
B-3 8,751.22 0.00 1,359,755.95 0.00
B-4 5,105.15 0.00 793,232.42 0.00
B-5 4,375.29 0.00 679,828.24 0.00
B-6 5,105.48 0.00 793,283.74 0.00
- -----------------------------------------------------------------------------------
Totals 2,204,109.97 0.00 224,944,480.25 0.00
- -----------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
THE Distribution Date: 6/25/99
BANK OF
NEW
YORK
101 Barclay Street - 12E
New York, NY 10286
Attn: Anna Felt Headlands Mortgage Securities Inc.
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
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 216,562,200.00 214,697,904.69 947,575.98 0.00 0.00 947,575.98 0.00
PO 42209EGE4 1,002,392.41 997,095.92 1,115.60 0.00 0.00 1,115.60 0.00
R 42209EGF1 100.00 0.00 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 4,556,300.00 4,536,517.33 4,030.65 0.00 0.00 4,030.65 0.00
B-2 42209EGH7 2,050,300.00 2,041,397.95 1,813.76 0.00 0.00 1,813.76 0.00
B-3 42209EGJ3 1,366,900.00 1,360,965.15 1,209.20 0.00 0.00 1,209.20 0.00
B-4 42209EGK0 797,400.00 793,937.83 705.41 0.00 0.00 705.41 0.00
B-5 42209EGL8 683,400.00 680,432.79 604.56 0.00 0.00 604.56 0.00
B-6 42209EGM6 797,451.59 793,989.19 705.45 0.00 0.00 705.45 0.00
- --------------------------------------------------------------------------------------------------------------------------------
Totals 227,816,444.00 225,902,240.85 957,760.61 0.00 0.00 957,760.61 0.00
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------
Ending Ending
Certificate Certificate
Class Balance Factor
- -----------------------------------------------
<S> <C> <C>
A-1 213,750,328.71 0.98701587216
PO 995,980.32 0.99360321430
R 0.00 0.00000000000
- -----------------------------------------------
B-1 4,532,486.68 0.99477353887
B-2 2,039,584.19 0.99477353887
B-3 1,359,755.95 0.99477353887
B-4 793,232.42 0.99477353887
B-5 679,828.24 0.99477353887
B-6 793,283.74 0.99477353887
- -----------------------------------------------
Totals 224,944,480.25
- -----------------------------------------------
</TABLE>
Page 2
<PAGE>
Distribution Date: 6/25/99
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>
Interest Distribution Detail
- -------------------------------------------------------------------------------------------------------------------------------
Beginning Pass Accrued Cumulative Total Net
Certificate Through Optimal Unpaid Deferred Interest Prepayment
Class Balance Rate (%) Interest Interest Interest Due Int Shortfall
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 214,697,904.69 6.650000 1,189,784.22 0.00 0.00 1,189,784.22 0.00
PO 997,095.92 0.000000 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
- -------------------------------------------------------------------------------------------------------------------------------
B-1 4,536,517.33 6.650000 25,139.87 0.00 0.00 25,139.87 0.00
B-2 2,041,397.95 6.650000 11,312.75 0.00 0.00 11,312.75 0.00
B-3 1,360,965.15 6.650000 7,542.02 0.00 0.00 7,542.02 0.00
B-4 793,937.83 6.650000 4,399.74 0.00 0.00 4,399.74 0.00
B-5 680,432.79 6.650000 3,770.73 0.00 0.00 3,770.73 0.00
B-6 793,989.19 6.650000 4,400.02 0.00 0.00 4,400.02 0.00
- -------------------------------------------------------------------------------------------------------------------------------
Totals 225,902,240.85 1,246,349.35 0.00 0.00 1,246,349.35 0.00
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------
Unscheduled
Interest Interest
Class Adjustment Paid
- --------------------------------------------------
<S> <C> <C>
A-1 0.00 1,189,784.22
PO 0.00 0.00
R 0.00 0.00
- --------------------------------------------------
B-1 0.00 25,139.87
B-2 0.00 11,312.75
B-3 0.00 7,542.02
B-4 0.00 4,399.74
B-5 0.00 3,770.73
B-6 0.00 4,400.02
- --------------------------------------------------
Totals 0.00 1,246,349.35
- --------------------------------------------------
</TABLE>
Page 3
<PAGE>
THE Distribution Date: 6/25/99
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
<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 216,562,200.00 991.391409445 4.375537282 5.493960727 987.015872163 6.650000
PO 42209EGE4 1,002,392.41 994.716155535 1.112941236 0.000000000 993.603214299 0.000000
R 42209EGF1 100.00 0.000000000 0.000000000 0.000000000 0.000000000 6.650000
- -------------------------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 4,556,300.00 995.658171717 0.884632845 5.517605702 994.773538872 6.650000
B-2 42209EGH7 2,050,300.00 995.658171717 0.884632845 5.517605702 994.773538872 6.650000
B-3 42209EGJ3 1,366,900.00 995.658171717 0.884632845 5.517605702 994.773538872 6.650000
B-4 42209EGK0 797,400.00 995.658171717 0.884632845 5.517605702 994.773538872 6.650000
B-5 42209EGL8 683,400.00 995.658171717 0.884632845 5.517605702 994.773538872 6.650000
B-6 42209EGM6 797,451.59 995.658171717 0.884632845 5.517605702 994.773538872 6.650000
- -------------------------------------------------------------------------------------------------------------------------------
Totals 227,816,444.00 991.597607634 4.204089017 5.470848935 987.393518661
- -------------------------------------------------------------------------------------------------------------------------------
</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
Pool Level Data
Distribution Date 6/25/99
Cut-off Date 12/1/98
Determination Date 6/1/99
Accrual Period Begin 5/1/99
End 6/1/99
Number of Days in Accrual Period 31
- ------------------------------------------------------------------
Collateral Information
- ------------------------------------------------------------------
<TABLE>
Group 1
- -------
<S> <C>
Cut-Off Date Balance 227,816,444.00
Beginning Aggregate Pool Stated Principal Balance 225,902,241.28
Ending Aggregate Pool Stated Principal Balance 224,944,480.66
Beginning Aggregate Certificate Stated Principal Balance 225,902,240.86
Ending Aggregate Certificate Stated Principal Balance 224,944,480.24
Beginning Aggregate Loan Count 844
Loans Paid Off or Otherwise Removed Pursuant to Pooling and Servicing Agreement 1
Ending Aggregate Loan Count 843
Beginning Weighted Average Loan Rate (WAC) 7.155033%
Ending Weighted Average Loan Rate (WAC) 7.155273%
Beginning Net Weighted Average Loan Rate 6.896532%
Ending Net Weighted Average Loan Rate 6.896771%
Aggregate Pool Prepayment 757,002.26
- -----------------------------------------------------------------
Certificate Information
- -----------------------------------------------------------------
Group 1
- -------
Senior Percentage 95.4615354629%
Senior Prepayment Percentage 100.0000000000%
Subordinate Percentage 4.5384645371%
Subordinate Prepayment Percentage 0.0000000000%
</TABLE>
Page 1
<PAGE>
<TABLE>
<S> <C>
Prepayment Compensation
Total Gross Prepayment Interest Shortfall 396.85
Compensation for Gross PPIS from Servicing Fees 396.85
Other Gross PPIS Compensation 0.00
------
Total Net PPIS (Non-Supported PPIS) 0.00
Master Servicing Fees Paid 98,601.78
Sub Servicing Fees Paid 0.31
Trustee Fees Paid 1,600.14
----------
Total Fees 100,202.24
</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 393,214.37 0.00 0.00 393,214.37
Percentage of Total Pool Balance 0.174805% 0.000000% 0.000000% 0.174805%
Number of Loans 2 0 0 2
Percentage of Total Loans 0.237248% 0.000000% 0.000000% 0.237248%
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% 1.012767%
Special Hazard Loss 3,919,310.00 3,901,410.76
Special Hazard Loss Percentage 1.720381% 1.734388%
<CAPTION>
Credit Support Original Current
- -------------- -------- -------
Class A 217,564,692.41 214,746,309.03
Class A Percentage 95.499995% 95.466361%
Class B-1 4,556,300.00 4,532,486.68
Class B-1 Percentage 1.999987% 2.014936%
Class B-2 2,050,300.00 2,039,584.19
Class B-2 Percentage 0.899979% 0.906706%
Class B-3 1,366,900.00 1,359,755.95
Class B-3 Percentage 0.600001% 0.604485%
Class B-4 797,400.00 793,232.42
Class B-4 Percentage 0.350019% 0.352635%
Class B-5 683,400.00 679,828.24
Class B-5 Percentage 0.299978% 0.302220%
Class B-6 797,451.59 793,283.74
Class B-6 Percentage 0.350041% 0.352658%
</TABLE>
Page 3
<PAGE>
THE Distribution Date: 5/25/99
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
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-30/360 215,159,667.81 6.650000 461,763.12 1,192,343.16
PO 42209EGE4 Strip PO Fix-30/360 998,223.10 0.000000 1,127.17 0.00
R 42209EGF1 Senior Fix-30/360 0.00 6.650000 0.00 0.00
- -------------------------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 Junior Fix-30/360 4,540,530.61 6.650000 4,013.28 25,162.11
B-2 42209EGH7 Junior Fix-30/360 2,043,203.89 6.650000 1,805.94 11,322.75
B-3 42209EGJ3 Junior Fix-30/360 1,362,169.15 6.650000 1,203.99 7,548.69
B-4 42209EGK0 Junior Fix-30/360 794,640.19 6.650000 702.37 4,403.63
B-5 42209EGL8 Junior Fix-30/360 681,034.75 6.650000 601.95 3,774.07
B-6 42209EGM6 Junior Fix-30/360 794,691.60 6.650000 702.41 4,403.92
- -------------------------------------------------------------------------------------------------------------------------------
Totals 226,374,161.10 471,920.23 1,248,958.33
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------
Current Cumulative
Total Realized Ending Realized
Class Distribution Losses Balance Losses
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A-1 1,654,106.28 0.00 214,697,904.69 0.00
PO 1,127.17 0.00 997,095.92 0.00
R 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------
B-1 29,175.39 0.00 4,536,517.33 0.00
B-2 13,128.70 0.00 2,041,397.95 0.00
B-3 8,752.68 0.00 1,360,965.15 0.00
B-4 5,106.00 0.00 793,937.83 0.00
B-5 4,376.02 0.00 680,432.79 0.00
B-6 5,106.33 0.00 793,989.19 0.00
- --------------------------------------------------------------------------
Totals 1,720,878.57 0.00 225,902,240.85 0.00
- --------------------------------------------------------------------------
</TABLE>
Page 1
