<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
October 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 October 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: October 27, 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 October 25, 1999................... 5
<PAGE>
EXHIBIT 10.1
<PAGE>
THE
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 Total
Class Cusip Description Type Balance Rate (%) Distribution Distribution Distribution
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 42209EGD6 Senior Fix-30/360 210,224,062.79 6.650000 1,910,031.33 1,164,991.68 3,075,023.01
PO 42209EGE4 Strip PO Fix-30/360 973,870.22 0.000000 1,141.89 0.00 1,141.89
R 42209EGF1 Senior Fix-30/360 0.00 6.650000 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 Junior Fix-30/360 4,520,151.64 6.650000 4,158.35 25,049.17 29,207.52
B-2 42209EGH7 Junior Fix-30/360 2,034,033.51 6.650000 1,871.22 11,271.94 13,143.16
B-3 42209EGJ3 Junior Fix-30/360 1,356,055.41 6.650000 1,247.51 7,514.81 8,762.32
B-4 42209EGK0 Junior Fix-30/360 791,073.66 6.650000 727.75 4,383.87 5,111.62
B-5 42209EGL8 Junior Fix-30/360 677,978.10 6.650000 623.71 3,757.13 4,380.84
B-6 42209EGM6 Junior Fix-30/360 791,124.84 6.650000 727.80 4,384.15 5,111.95
- ---------------------------------------------------------------------------------------------------------------------------------
Totals 221,368,350.17 1,920,529.56 1,221,352.75 3,141,882.31
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ----------------------------------------------------------
Current Cumulative
Realized Ending Realized
Losses Balance Losses
- ----------------------------------------------------------
<S> <C> <C> <C>
A-1 0.00 208,314,031.45 0.00
PO 0.00 972,728.33 0.00
R 0.00 0.00 0.00
- ----------------------------------------------------------
B-1 0.00 4,515,993.29 0.00
B-2 0.00 2,032,162.29 0.00
B-3 0.00 1,354,807.90 0.00
B-4 0.00 790,345.91 0.00
B-5 0.00 677,354.39 0.00
B-6 0.00 790,397.04 0.00
- ----------------------------------------------------------
Totals 0.00 219,447,820.60 0.00
- ----------------------------------------------------------
</TABLE>
Page 1
<PAGE>
THE
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
Principal Distribution Detail
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Original Beginning Scheduled Unscheduled Net
Certificate Certificate Principal Accretion Principal Principal
Class Cusip Balance Balance Distribution Principal Adjustments Distribution
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 42209EGD6 216,562,200.00 210,224,062.79 1,910,031.33 0.00 0.00 1,910,031.33
PO 42209EGE4 1,002,393.00 973,870.22 1,141.89 0.00 0.00 1,141.89
R 42209EGF1 100.00 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 4,556,300.00 4,520,151.64 4,158.35 0.00 0.00 4,158.35
B-2 42209EGH7 2,050,300.00 2,034,033.51 1,871.22 0.00 0.00 1,871.22
B-3 42209EGJ3 1,366,900.00 1,356,055.41 1,247.51 0.00 0.00 1,247.51
B-4 42209EGK0 797,400.00 791,073.66 727.75 0.00 0.00 727.75
B-5 42209EGL8 683,400.00 677,978.10 623.71 0.00 0.00 623.71
B-6 42209EGM6 797,452.00 791,124.84 727.80 0.00 0.00 727.80
- --------------------------------------------------------------------------------------------------------------------------
Totals 227,816,445.00 221,368,350.17 1,920,529.56 0.00 0.00 1,920,529.56
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------
Current Ending Ending
Realized Certificate Certificate
Losses Balance Factor
- ---------------------------------------------------------------
<S> <C> <C> <C>
A-1 0.00 208,314,031.45 0.96191316607
PO 0.00 972,728.33 0.97040614516
R 0.00 0.00 0.00000000000
- ---------------------------------------------------------------
B-1 0.00 4,515,993.29 0.99115363075
B-2 0.00 2,032,162.29 0.99115363075
B-3 0.00 1,354,807.90 0.99115363075
B-4 0.00 790,345.91 0.99115363075
B-5 0.00 677,354.39 0.99115363075
B-6 0.00 790,397.04 0.99115312116
- ---------------------------------------------------------------
Totals 0.00 219,447,820.60
- ---------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
THE
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
Interest Distribution Detail
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
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-1 210,224,062.79 6.650000 1,164,991.68 0.00 0.00 1,164,991.68
PO 973,870.22 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 4,520,151.64 6.650000 25,049.17 0.00 0.00 25,049.17
B-2 2,034,033.51 6.650000 11,271.94 0.00 0.00 11,271.94
B-3 1,356,055.41 6.650000 7,514.81 0.00 0.00 7,514.81
B-4 791,073.66 6.650000 4,383.87 0.00 0.00 4,383.87
B-5 677,978.10 6.650000 3,757.13 0.00 0.00 3,757.13
B-6 791,124.84 6.650000 4,384.15 0.00 0.00 4,384.15
- --------------------------------------------------------------------------------------------------------------
Totals 221,368,350.17 1,221,352.75 0.00 0.00 1,221,352.75
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------
Net Unscheduled
Prepayment Interest Interest
Class Int Shortfall Adjustment Paid
- ---------------------------------------------------------------
<S> <C> <C> <C>
A-1 0.00 0.00 1,164,991.68
PO 0.00 0.00 0.00
R 0.00 0.00 0.00
- ---------------------------------------------------------------
B-1 0.00 0.00 25,049.17
B-2 0.00 0.00 11,271.94
B-3 0.00 0.00 7,514.81
B-4 0.00 0.00 4,383.87
B-5 0.00 0.00 3,757.13
B-6 0.00 0.00 4,384.15
- ---------------------------------------------------------------
Totals 0.00 0.00 1,221,352.75
- ---------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
THE
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
Current Payment Information
Factors per $1,000
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
Original Beginning Cert.
Certificate Notional Principal Interest
Class Cusip Balance Balance Distribution Distribution
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
A-1 42209EGD6 216,562,200.00 970.732947790 8.819781721 5.379478419
PO 42209EGE4 1,002,393.00 971.545313429 1.139168268 0.000000000
R 42209EGF1 100.00 0.000000000 0.000000000 0.000000000
- -------------------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 4,556,300.00 992.066289685 0.912658936 5.497700689
B-2 42209EGH7 2,050,300.00 992.066289685 0.912658936 5.497700689
B-3 42209EGJ3 1,366,900.00 992.066289685 0.912658936 5.497700689
B-4 42209EGK0 797,400.00 992.066289685 0.912658936 5.497700689
B-5 42209EGL8 683,400.00 992.066289685 0.912658936 5.497700689
B-6 42209EGM6 797,452.00 992.065779627 0.912658467 5.497697862
- -------------------------------------------------------------------------------------------------------------------------
Totals 227,816,445.00 971.696095820 8.430162098 5.361126366
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------
Ending Cert. Pass
Notional Through
Balance Rate (%)
- -------------------------------------------------
<S> <C> <C>
A-1 961.913166069 6.650000
PO 970.406145161 0.000000
R 0.000000000 6.650000
- -------------------------------------------------
B-1 991.153630750 6.650000
B-2 991.153630750 6.650000
B-3 991.153630750 6.650000
B-4 991.153630750 6.650000
B-5 991.153630750 6.650000
B-6 991.153121160 6.650000
- -------------------------------------------------
Totals 963.265933677
- -------------------------------------------------
</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>
<S> <C>
Pool Level Data
Distrbution Date 10/25/99
Cut-off Date 12/ 1/98
Determination Date 10/ 1/99
Accrual Period Begin 9/ 1/99
End 10/ 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 221,368,350.59
Ending Aggregate Pool Stated Principal Balance 219,447,821.01
Beginning Aggregate Certificate Stated Principal Balance 221,368,350.17
Ending Aggregate Certificate Stated Principal Balance 219,447,820.59
Beginning Aggregate Loan Count 832
Loans Paid Off or Otherwise Removed Pursuant to Pooling and Servicing Agreement 2
Ending Aggregate Loan Count 830
Beginning Weighted Average Loan Rate (WAC) 7.156580%
Ending Weighted Average Loan Rate (WAC) 7.154556%
Beginning Net Weighted Average Loan Rate 6.898078%
Ending Net Weighted Average Loan Rate 6.896054%
Aggregate Pool Prepayment 1,716,834.65
Pool Prepayment Rate 8.9198 CPR
- ------------------------------------------------------------
Certificate Information
- ------------------------------------------------------------
Group 1
- -------
Senior Percentage 95.3853575802%
Senior Prepayment Percentage 100.0000000000%
Subordinate Percentage 4.6146424198%
Subordinate Prepayment Percentage 0.0000000000%
Prepayment Compensation
Total Gross Prepayment Interest Shortfall 3,766.60
Compensation for Gross PPIS from Servicing Fees 3,766.60
Other Gross PPIS Compensation 0.00
--------
Total Net PPIS (Non-Supported PPIS) 0.00
Master Servicing Fees Paid 93,512.57
Sub Servicing Fees Paid 0.28
Trustee Fees Paid 1,568.03
---------
</TABLE>
Page 1
<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>
---------
Total Fees 95,080.88
- -----------------------------------------------------------------
Delinquency Information
- -----------------------------------------------------------------
Group 1
- -------
Delinquency 30 - 59 Days 60 - 89 Days 90+ Days Totals
- ----------- ------------ ------------ -------- ------
<S> <C> <C> <C> <C>
Scheduled Principal Balance 0.00 0.00 58,772.74 58,772.74
Percentage of Total Pool Balance 0.000000% 0.000000% 0.026782% 0.026782%
Number of Loans 0 0 1 1
Percentage of Total Loans 0.000000% 0.000000% 0.120482% 0.120482%
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 0.00
Percentage of Total Pool Balance 0.000000% 0.000000%
Current Realized Losses 0.00 0.00
Additional Gains (Recoveries)/Losses 0.00 0.00
Total Realized Losses 0.00 0.00
- -----------------------------------------------------------------
Subordination/Credit Entertainment 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% 1.038135%
Special Hazard Loss 3,919,310.00 3,887,381.22
Special Hazard Loss Percentage 1.720381% 1.771438%
</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>
Credit Support Original Current
- -------------- ------- -------
<S> <C> <C>
Class A 217,564,693.00 209,286,759.78
Class A Percentage 95.499995% 95.369714%
Class B-1 4,556,300.00 4,515,993.29
Class B-1 Percentage 1.999987% 2.057889%
Class B-2 2,050,300.00 2,032,162.29
Class B-2 Percentage 0.899979% 0.926034%
Class B-3 1,366,900.00 1,354,807.90
Class B-3 Percentage 0.600001% 0.617371%
Class B-4 797,400.00 790,345.91
Class B-4 Percentage 0.350019% 0.360152%
Class B-5 683,400.00 677,354.39
Class B-5 Percentage 0.299978% 0.308663%
Class B-6 797,452.00 790,397.04
Class B-6 Percentage 0.350041% 0.360175%
</TABLE>
Page 3
