<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
September 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 September 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: September 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
<TABLE>
<CAPTION>
Exhibit Number Page Number
- -------------- -----------
<S> <C>
10.1 Monthly Payment Date Statement distributed to
Certificateholders, dated September 25, 1999 5
</TABLE>
<PAGE>
EXHIBIT 10.1
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>
- ---------------------------------------------------------------------------------------------------------------
Class Certificate Beginning Pass Through Principal
Class Cusip Description Rate Type Balance Rate (%) Distribution
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
A-1 42209EGD6 Senior Fix-30/360 211,160,940.48 6.650000 936,877.69
PO 42209EGE4 Strip PO Fix-30/360 975,118.19 0.000000 1,247.97
R 42209EGF1 Senior Fix-30/360 0.00 6.650000 0.00
- ---------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 Junior Fix-30/360 4,524,293.47 6.650000 4,141.83
B-2 42209EGH7 Junior Fix-30/360 2,035,897.31 6.650000 1,863.79
B-3 42209EGJ3 Junior Fix-30/360 1,357,297.97 6.650000 1,242.56
B-4 42209EGK0 Junior Fix-30/360 791,798.52 6.650000 724.86
B-5 42209EGL8 Junior Fix-30/360 678,599.34 6.650000 621.23
B-6 42209EGM6 Junior Fix-30/360 791,849.75 6.650000 724.91
- ---------------------------------------------------------------------------------------------------------------
Totals 222,315,795.03 947,444.84
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Interest Total Current Ending Cumulative
Class Distribution Distribution Realized Losses Balance Realized Losses
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
A-1 1,170,183.55 2,107,061.24 0.00 210,224,062.79 0.00
PO 0.00 1,247.97 0.00 973,870.22 0.00
R 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------
B-1 25,072.13 29,213.96 0.00 4,520,151.64 0.00
B-2 11,282.26 13,146.06 0.00 2,034,033.51 0.00
B-3 7,521.69 8,764.25 0.00 1,356,055.41 0.00
B-4 4,387.88 5,112.75 0.00 791,073.66 0.00
B-5 3,760.57 4,381.81 0.00 677,978.10 0.00
B-6 4,388.17 5,113.08 0.00 791,124.84 0.00
- --------------------------------------------------------------------------------------------------------
Totals 1,226,596.25 2,174,041.12 0.00 221,368,350.17 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
Certificate Certificate Principal Accretion
Class Cusip Balance Balance Distribution Principal
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
A-1 42209EGD6 216,562,200.00 211,160,940.48 936,877.69 0.00
PO 42209EGE4 1,002,393.00 975,118.19 1,247.97 0.00
R 42209EGF1 100.00 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 4,556,300.00 4,524,293.47 4,141.83 0.00
B-2 42209EGH7 2,050,300.00 2,035,897.31 1,863.79 0.00
B-3 42209EGJ3 1,366,900.00 1,357,297.97 1,242.56 0.00
B-4 42209EGK0 797,400.00 791,798.52 724.86 0.00
B-5 42209EGL8 683,400.00 678,599.34 621.23 0.00
B-6 42209EGM6 797,452.00 791,849.75 724.91 0.00
- -----------------------------------------------------------------------------------------------------------------------------
Totals 227,816,445.00 222,315,795.03 947,444.84 0.00
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Unscheduled Net Current Ending Ending
Principal Principal Realized Certificate Certificate
Class Adjustments Distribution Losses Balance Factor
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
A-1 0.00 936,877.69 0.00 210,224,062.79 0.97073294779
PO 0.00 1,247.97 0.00 973,870.22 0.97154531343
R 0.00 0.00 0.00 0.00 0.00000000000
- ----------------------------------------------------------------------------------------------------------------
B-1 0.00 4,141.83 0.00 4,520,151.64 0.99206628969
B-2 0.00 1,863.79 0.00 2,034,033.51 0.99206628969
B-3 0.00 1,242.56 0.00 1,356,055.41 0.99206628969
B-4 0.00 724.86 0.00 791,073.66 0.99206628969
B-5 0.00 621.23 0.00 677,978.10 0.99206628969
B-6 0.00 724.91 0.00 791,124.84 0.99206577963
- ----------------------------------------------------------------------------------------------------------------
Totals 0.00 947,444.84 0.00 221,368,350.17
- ----------------------------------------------------------------------------------------------------------------
</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
Certificate Through Optimal Unpaid Deferred
Class Balance Rate (%) Interest Interest Interest
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
A-1 211,160,940.48 6.650000 1,170,183.55 0.00 0.00
PO 975,118.19 0.000000 0.00 0.00 0.00
R 0.00 6.650000 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------
B-1 4,524,293.47 6.650000 25,072.13 0.00 0.00
B-2 2,035,897.31 6.650000 11,282.26 0.00 0.00
B-3 1,357,297.97 6.650000 7,521.69 0.00 0.00
B-4 791,798.52 6.650000 4,387.88 0.00 0.00
B-5 678,599.34 6.650000 3,760.57 0.00 0.00
B-6 791,849.75 6.650000 4,388.17 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------
Totals 222,315,795.03 1,226,596.25 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Total Net Unscheduled
Interest Prepayment Interest Interest
Class Due Int Shortfall Adjustment Paid
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A-1 1,170,183.55 0.00 0.00 1,170,183.55
PO 0.00 0.00 0.00 0.00
R 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------
B-1 25,072.13 0.00 0.00 25,072.13
B-2 11,282.26 0.00 0.00 11,282.26
B-3 7,521.69 0.00 0.00 7,521.69
B-4 4,387.88 0.00 0.00 4,387.88
B-5 3,760.57 0.00 0.00 3,760.57
B-6 4,388.17 0.00 0.00 4,388.17
- --------------------------------------------------------------------------------------------------------
Totals 1,226,596.25 0.00 0.00 1,226,596.25
- --------------------------------------------------------------------------------------------------------
</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
Class Cusip Balance Balance Distribution
- --------------------------------------------------------------------------------------------------------------
A-1 42209EGD6 216,562,200.00 975.059084532 4.326136741
PO 42209EGE4 1,002,393.00 972.790304332 1.244990903
R 42209EGF1 100.00 0.000000000 0.000000000
- --------------------------------------------------------------------------------------------------------------
B-1 42209EGG9 4,556,300.00 992.975323577 0.909033891
B-2 42209EGH7 2,050,300.00 992.975323577 0.909033891
B-3 42209EGJ3 1,366,900.00 992.975323577 0.909033891
B-4 42209EGK0 797,400.00 992.975323577 0.909033891
B-5 42209EGL8 683,400.00 992.975323577 0.909033891
B-6 42209EGM6 797,452.00 992.974813051 0.909033424
- --------------------------------------------------------------------------------------------------------------
Totals 227,816,445.00 975.854903846 4.158807939
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------
Ending Cert. Pass
Interest Notional Through
Class Distribution Balance Rate (%)
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
A-1 5.403452427 970.732947790 6.650000
PO 0.000000000 971.545313429 0.000000
R 0.000000000 0.000000000 6.650000
- ------------------------------------------------------------------------------------------
B-1 5.502738251 992.066289685 6.650000
B-2 5.502738251 992.066289685 6.650000
B-3 5.502738251 992.066289685 6.650000
B-4 5.502738251 992.066289685 6.650000
B-5 5.502738251 992.066289685 6.650000
B-6 5.502735422 992.065779627 6.650000
- ------------------------------------------------------------------------------------------
Totals 5.384142703 971.696095820
- ------------------------------------------------------------------------------------------
</TABLE>
Page 4
<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
<TABLE>
<S> <C>
Pool Level Data
Distrbution Date 9/25/99
Cut-off Date 12/1/98
Determination Date 9/1/99
Accrual Period Begin 8/1/99
End 9/1/99
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 222,315,795.44
Ending Aggregate Pool Stated Principal Balance 221,368,350.59
Beginning Aggregate Certificate Stated Principal Balance 222,315,795.02
Ending Aggregate Certificate Stated Principal Balance 221,368,350.17
Beginning Aggregate Loan Count 836
Loans Paid Off or Otherwise Removed Pursuant to
Pooling and Servicing Aggrement 4
Ending Aggregate Loan Count 832
Beginning Weighted Average Loan Rate (WAC) 7.156353%
Ending Weighted Average Loan Rate (WAC) 7.156580%
Beginning Net Weighted Average Loan Rate 6.897851%
Ending Net Weighted Average Loan Rate 6.898078%
Aggregate Pool Prepayment 743,880.31
----------------------------------
Certificate Information
----------------------------------
Group 1
- -------
Senior Percentage 95.4008741194%
Senior Prepayment Percentage 100.0000000000%
Subordinate Percentage 4.5991258806%
Subordinate Prepayment Percentage 0.0000000000%
</TABLE>
Page 1
<PAGE>
<TABLE>
<S> <C>
Prepayment Compensation
Total Gross Prepayment Interest Shortfall 1,238.91
Compensation for Gross PPIS from Servicing Fees 1,238.91
Other Gross PPIS Compensation 0.00
--------
Total Net PPIS (Non-Supported PPIS) 0.00
Master Servicing Fees Paid 96,398.42
Sub Servicing Fees Paid 0.35
Trustee Fees Paid 1,574.74
---------
Total Fees 97,973.50
</TABLE>
----------------------------------
Delinquency Information
----------------------------------
<TABLE>
<CAPTION>
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% 0.026550% 0.026550%
Number of Loans 0 0 1 1
Percentage of Total Loans 0.000000% 0.000000% 0.120192% 0.120192%
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>
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% 1.029128%
Special Hazard Loss 3,919,310.00 3,890,983.31
Special Hazard Loss Percentage 1.720381% 1.757696%
Credit Support Original Current
- -------------- -------- -------
Class A 217,564,693.00 211,197,933.01
Class A Percentage 95.499995% 95.405659%
Class B-1 4,556,300.00 4,520,151.64
Class B-1 Percentage 1.999987% 2.041914%
Class B-2 2,050,300.00 2,034,033.51
Class B-2 Percentage 0.899979% 0.918846%
Class B-3 1,366,900.00 1,356,055.41
Class B-3 Percentage 0.600001% 0.612579%
Class B-4 797,400.00 791,073.66
Class B-4 Percentage 0.350019% 0.357356%
Class B-5 683,400.00 677,978.10
Class B-5 Percentage 0.299978% 0.306267%
Class B-6 797,452.00 791,124.84
Class B-6 Percentage 0.350041% 0.357379%
</TABLE>
Page 3
