<PAGE>
Headlands Mortgage Securities Inc. The Bank of New York
Mortgage Pass-Through Certificate Series 1998-3 101 Barclay Street - 12E
New York, NY 10286
Distribution Date: 25-May-2000 Attn: Anna Felt
EXHIBIT 10.1
Certificateholder Distribution Summary
<TABLE>
<CAPTION>
===================================================================================================================================
Certificate Pass Current
Class Rate Beginning Through Principal Interest Total Realized
Class CUSIP Description Type Balance Rate (%) Distribution Distribution Distribution Losses
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 42209EGD6 Senior Fix-30/360 200,735,432.74 6.650000 1,668,580.60 1,112,408.86 2,780,989.45 0.00
PO 42209EGE4 Strip PO Fix-30/360 941,729.87 0.000000 1,202.74 0.00 1,202.74 0.00
R 42209EGF1 Senior Fix-30/360 0.00 6.650000 0.00 0.00 0.00 0.00
B-1 42209EGG9 Junior Fix-30/360 4,490,176.32 6.650000 4,425.28 24,883.06 29,308.34 0.00
B-2 42209EGH7 Junior Fix-30/360 2,020,544.85 6.650000 1,991.34 11,197.19 13,188.53 0.00
B-3 42209EGJ3 Junior Fix-30/360 1,347,062.75 6.650000 1,327.59 7,464.97 8,792.57 0.00
B-4 42209EGK0 Junior Fix-30/360 785,827.67 6.650000 774.47 4,354.79 5,129.27 0.00
B-5 42209EGL8 Junior Fix-30/360 673,482.10 6.650000 663.75 3,732.21 4,395.96 0.00
B-6 42209EGM6 Junior Fix-30/360 785,878.51 6.650000 774.52 4,355.08 5,129.60 0.00
===================================================================================================================================
Totals 211,780,134.81 1,679,740.09 1,168,396.16 2,848,136.46
===================================================================================================================================
<CAPTION>
=============================
Cumulative
Ending Realized
Balance Losses
<C> <C>
=============================
199,066,825.15 0.00
940,527.13 0.00
0.00 0.00
4,485,751.03 0.00
2,018,553.51 0.00
1,345,735.16 0.00
785,053.20 0.00
672,818.35 0.00
785,103.99 0.00
=============================
210,100,394.52 0.00
=============================
</TABLE>
<PAGE>
Headlands Mortgage Securities Inc. The Bank of New York
Mortgage Pass-Through Certificate Series 1998-3 101 Barclay Street - 12E
New York, NY 10286
Distribution Date: 25-May-2000 Attn: Anna Felt
212-815-7166
Principal Distribution Detail
<TABLE>
<CAPTION>
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 216,562,200.00 200,735,432.74 1,668,580.60 0.00 0.00 1,668,580.60 0.00
PO 42209EGE4 1,002,393.00 941,729.87 1,202.74 0.00 0.00 1,202.74 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 4,490,176.32 4,425.28 0.00 0.00 4,425.28 0.00
B-2 42209EGH7 2,050,300.00 2,020,544.85 1,991.34 0.00 0.00 1,991.34 0.00
B-3 42209EGJ3 1,366,900.00 1,347,062.75 1,327.59 0.00 0.00 1,327.59 0.00
B-4 42209EGK0 797,400.00 785,827.67 774.47 0.00 0.00 774.47 0.00
B-5 42209EGL8 683,400.00 673,482.10 663.75 0.00 0.00 663.75 0.00
B-6 42209EGM6 797,452.00 785,878.51 774.52 0.00 0.00 774.52 0.00
===============================================================================================================================
Totals 227,816,445.00 211,780,134.81 1,679,740.29 0.00 0.00 1,679,740.29 0.00
===============================================================================================================================
<CAPTION>
======================================
Ending Ending
Certificate Certificate
Balance Factor
======================================
<C> <C>
199,066,852.15 0.91921328905
940,527.13 0.93828182193
0.00 0.00000000000
4,485,751.03 0.98451617210
2,018,553.51 0.98451617210
1,345,735.16 0.98451617210
785,053.20 0.98451617210
672,818.35 0.98451617210
785,103.99 0.98451566593
======================================
210,100,394.52
======================================
</TABLE>
<PAGE>
Headlands Mortgage Securities Inc. The Bank of New York
Mortgage Pass-Through Certificates Series 1998-3 101 Barclay Street - 12E
New York, NY 10286
Attn: Anna Felt
Distribution Date: 25-May-2000 212-815-7166
Interest Distribution Detail
<TABLE>
<CAPTION>
==================================================================================================================================
Beginning Pass Accrued Cumulative Total Net Unscheduled
Class Certificate Through Optimal Unpaid Deferred Interest Prepayment Interest Interest
Balance Rate(%) Interest Interest Interest Due Shortfall Adjustment Paid
==================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 202,188,415.78 6.650000 1,112,408.86 0.00 0.00 1,112,408.86 0.00 0.00 1,112,408.86
PO 963,493.78 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 4,494,577.07 6.650000 24,883.06 0.00 0.00 24,883.06 0.00 0.00 24,883.06
B-2 2,022,525.16 6.650000 11,197.19 0.00 0.00 11,197.19 0.00 0.00 11,197.19
B-3 1,348,382.99 6.650000 7,464.97 0.00 0.00 7,464.97 0.00 0.00 7,464.97
B-4 786,597.84 6.650000 4,354.79 0.00 0.00 4,354.79 0.00 0.00 4,354.79
B-5 674,142.17 6.650000 3,732.21 0.00 0.00 3,732.21 0.00 0.00 3,732.21
B-6 786,648.74 6.650000 4,355.08 0.00 0.00 4,355.08 0.00 0.00 4,355.08
==================================================================================================================================
Totals 213,264,783.53 1,168,396.16 0.00 0.00 1,168,396.16 0.00 0.00 1,168,396.16
==================================================================================================================================
</TABLE>
<PAGE>
Headlands Mortgage Securities Inc. The Bank of New York
Mortgage Pass-Through Certificates Series 1998-3 101 Barclay Street - 12E
New York, NY 10286
Attn: Anna Felt
Distribution Date: 25-May-2000 212-815-7166
Current Payment Information
Factors per $1,000
<TABLE>
<CAPTION>
================================================================================================================
Beginning Ending
Original Certificate/ Principal Interest Certificate Pass
Class Cusip Certificate Notional Balance Distribution Distribution Notional Through
Balance Balance Rate(%)
================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 42209EGD6 216,562,200.00 926.918145200 7.704856145 5.136671388 919.213289055 6.650000
PO 42209EGE4 1,002,393.00 939.481693117 1.199871191 0.000000000 938.281821926 0.000000
R 42209EGF1 100.00 0.000000000 0.000000000 0.000000000 0.000000000 6.650000
B-1 42209EGG9 4,556,300.00 985.487416873 0.971244769 5.461242769 984.516172105 6.650000
B-2 42209EGH7 2,050,300.00 985.487416873 0.971244769 5.461242769 984.516172105 6.650000
B-3 42209EGJ3 1,366,900.00 985.487416873 0.971244769 5.461242769 984.516172105 6.650000
B-4 42209EGK0 797,400.00 985.487416873 0.971244769 5.461242769 984.516172105 6.650000
B-5 42209EGL8 683,400.00 985.487416873 0.971244769 5.461242769 984.516172105 6.650000
B-6 42209EGM6 797,452.00 985.486910197 0.971244269 5.461239961 984.515665928 6.650000
================================================================================================================
Total 227,816,445.00 929.608636506 7.373217899 5.128673481 922.235418606
================================================================================================================
</TABLE>
<PAGE>
Headlands Mortgage Securities Inc. The Bank of New York
Mortgage Pass-Through Certificates Series 1998-3 101 Barclay Street - 12E
New York, NY 10286
Distribution Date: 25-May-2000 Attn: Anna Felt
212-815-7166
Pool Level Data
---------------
Distribution Date 5/25/00
Cut-Off Date 12/1/98
Determination Date 5/1/00
Accrual Period 4/1/00 (Beg)
5/1/00 (End)
Number of Days
in Accrual Period 30
<TABLE>
<CAPTION>
===============================================================================================================
COLLATERAL INFORMATION
===============================================================================================================
Group 1
-------
<S> <C>
Cut-Off Date Balance 227,816,444.00
Beginning Aggregate Pool Stated Principal Balance 211,780,135.23
Ending Aggregate Pool Stated Principal Balance 210,100,394.93
Beginning Aggregate Certificate Stated Principal Balance 211,780,134.81
Ending Aggregate Certificate Stated Principal Balance 210,100,394.51
Beginning Aggregate Loan Count 810
Loans Paid Off or otherwise Removed Pursuant to Pooling and Servicing Agreement 4
Ending Aggregate Loan Count 806
Beginning Weighted Average Loan Rate (WAC) 7.151872%
Ending Weighted Average Loan Rate (WAC) 7.151358%
Beginning Net Weighted Average Loan Rate 6.893370%
Ending Net Weighted Average Loan Rate 6.892856%
Aggregate Pool Prepayment 1,470,984.67
Pool Prepayment Rate 8.0238CPR
===============================================================================================================
</TABLE>
<PAGE>
Headlands Mortgage Securities Inc. The Bank of New York
Mortgage Pass-Through Certificates Series 1998-3 101 Barclay Street - 12E
New York, NY 10286
Distribution Date: 25-May-2000 Attn: Anna Felt
212-815-7166
<TABLE>
<CAPTION>
============================================================================================
CERTIFICATE INFORMATION
============================================================================================
Group 1
-------
<S> <C>
Senior Percentage 95.2081916974%
Senior Prepayment Percentage 100.0000000000%
Subordinate Percentage 4.7918083026%
Subordinate Prepayment Percentage 0.0000000000%
Prepayment Compensation
Total Gross Prepayment Interest Shortfall 4109.03
Compensation for Gross PPIS from Servicing Fees 4109.03
Other Gross PPIS Compensation 0.00
--------------
Total Net PPIS (Non-Supported PPIS) 0.00
Master Servicing Fees Paid 88181.40
Sub Servicing Fees Paid 0.36
Trustee Fees Paid 1500.00
--------------
Total Fees 89681.87
============================================================================================
</TABLE>
<PAGE>
Headlands Mortgage Securities Inc. The Bank of New York
Mortgage Pass-Through Certificates Series 1998-3 101 Barclay Street - 12E
New York, NY 10286
Distribution Date: 25-May-2000 Attn: Anna Felt
212-815-7166
<TABLE>
<CAPTION>
====================================================================================================================
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 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 0.00 0.00 0.00 0.00
-----------
Scheduled Principal Balance 0.000000% 0.000000% 0.000000% 0.000000%
Percentage of Total Pool Balance 0 0 0 0
Number of Loans 0.000000% 0.000000% 0.000000% 0.000000%
Percentage of Total Loans
Bankruptcy 0.00 0.00 0.00 0.00
----------
Scheduled Principal Balance 0.000000% 0.000000% 0.000000% 0.000000%
Percentage of Total Pool Balance 0 0 0 0
Number of Loans 0.000000% 0.000000% 0.000000% 0.000000%
Percentage of Total Loans
REO 0.00 0.00 0.00 0.00
---
Scheduled Principal Balance 0.000000% 0.000000% 0.000000% 0.000000%
Percentage of Total Pool Balance 0 0 0 0
Number of Loans 0.000000% 0.000000% 0.000000% 0.000000%
Percentage of Total Loans
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>
Headlands Mortgage Securities Inc. The Bank of New York
Mortgage Pass-Through Certificates Series 1998-3 101 Barclay Street - 12E
New York, NY 10286
Distribution Date: 25-May-2000 Attn: Anna Felt
212-815-7166
<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% 1.084322%
Special Hazard Loss 3,919,310.00 3,861,934.55
Special Hazard Loss Percentage 1.720381% 1.838138%
Credit Support Original Current
-------------- -------- -------
Class A 217,564,693.00 200,007,379.28
Class A Percentage 95.499995% 95.196099%
Class B-1 4,556,300.00 4,485,751.03
Class B-1 Percentage 1.999987% 2.135051%
Class B-2 2,050,300.00 2,018,553.51
Class B-2 Percentage 0.899979% 0.960757%
Class B-3 1,366,900.00 1,345,735.16
Class B-3 Percentage 0.600001% 0.640520%
Class B-4 797,400.00 785,053.20
Class B-4 Percentage 0.350019% 0.373656%
Class B-5 683,400.00 672,818.35
Class B-5 Percentage 0.299978% 0.320237%
Class B-6 797,452.00 785,103.99
Class B-6 Percentage 0.350041% 0.373680%
======================================================================================================================
</TABLE>
