SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
Annual Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the fiscal year ended
December 31, 1988
Commission file number: 333-53115
FIRST BOSTON MORTGAGE SECURITIES CORP.
as Depositor (the "Depositor"), Home Federal Savings and Loan Association,
as Master Servicer (the "Master Servicer"), and Security Pacific National
Bank as trustee (the "Trustee") under the Pooling and Servicing Agreement,
dated as of November 1, 1988, providing for the issuance of the Conduit
Mortgage Pass-Through Certificates, Series 1988-2).
First Boston Mortgage Securities Corp.,
Conduit Mortgage Pass-Through Certificates, Series 1988-2
(Exact name of Registrant as specified in its Charter)
DELAWARE 13-332-0910
(State or other jurisdiction (I.R.S. Employer
incorporation or organization) Identification Number)
c/o First Boston Corporation
4911 Interfirst Two
Dallas, Texas 75270
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
Securities registered pursuant to Section 12(b) of the Act:
NOT APPLICABLE.
Securities registered pursuant to Section 12(g) of the Act:
NOT APPLICABLE.
Indicate by check mark whether the Depositor (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Depositor was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not contained herein,
and will not be contained, to the best of the Depositor's
knowledge, in definitive proxy or information statements
incorporated by reference in Part III of the Form 10-K or any
amendment to this Form 10-K. [ ].
Aggregate market value of voting stock held by non-affiliates of
the Depositor as of December 31, 1988: NOT APPLICABLE.
Number of shares of common stock outstanding as of December 31, 1988:
NOT APPLICABLE.
DOCUMENTS INCORPORATED BY REFERENCE
Documents in Part I and Part IV incorporated herein by reference
are as follows:
Pooling and Servicing Agreement of Registrant dated as of November 1, 1988
(hereby incorporated herein by reference as part of the Registrant's
Current Report on Form 8-K filed with Securities and Exchange Commission
on February 9, 1999.
Documents in Part II and Part IV incorporated herein by reference
are as follows:
Monthly Remittance Statement to the Certificateholders as to distributions
made on December 27, 1988 and filed with the Securities and Exchange
Commission on Form 8-K on February 9, 1999.
PART I
ITEM 1. Business.
The trust fund relating to Pooling and Servicing Agreement dated as of
November 1, 1988 (the "Pooling and Servicing Agreement") among First
Boston Mortgage Securities Corp., as Depositor (the "Depositor"), Home
Federal Savings and Loan Association as master servicer, (the "Master
"Servicer"), and Security Pacific National Bank, as trustee (the
"Trustee").
The Conduit Mortgage Pass-Through Certificates, Series 1988-2 will be
comprised of Class A Certificates and Class B Certificates, which will
consist of two subclasses, the Class B-1 Certificates and the Class B-2
Certificates (collectively, the "Certificates"). The Class A Certificates
and the Class B Certificates will represent interests in the Master Trust
Fund described in the Prospectus Supplement dated October 19, 1988 which
consists of Subsidiary Regular Interests (as defined in the Prospectus
Supplement which in the aggregate represent an interest in a pool (the
"Mortgage Pool") of adjustable rate conventional mortgage loans secured by
one-family residential properties (the "Mortgage Loans") originated by
Home Federal Savings and Loan Association ("Home Federal") and certain
other property held in trust for the benefit of the Certificateholders.
The Mortgage Loans will be sold to First Boston Mortgage Securities Corp.
(the "Depositor") on or prior to the date of initial issuance of the
Certificates and will be transferred to a trust pursuant to the Pooling
and Servicing Agreement dated as of November 1, 1988 by the Depositor in
exchange for the Certificates. Home Federal will act as Master Servicer.
The Class A Certificates will evidence an initial interest of
approximately 90% in the Mortgage Loans. The remaining interest in the
Mortgage Loans will be evidenced by the Class B Certificates. The rights
of the Class B Certificateholders to receive distributions with respect to
the Mortgage Loans are subordinated to the rights of the Class A
Certificateholders to the extent described in the Prospectus Supplement
and in the Prospectus. In addition, the Class A Certificateholders will
be entitled to receive a disproportionately greater percentage of
Principal Prepayments (as defined in the Prospectus Supplement) and other
payments with respect to the Mortgage Loans, as described in the
Prospectus Supplement. See "Description of the Certificates-
Distributions" and "-Subordination of the Class B Certificates; Shifting
Interest Credit Enhancement" in the Prospectus Supplement and "Credit
Support- Subordinated Certificates" in the Prospectus.
Information with respect to the business of the Trust would not be
meaningful because the only "business" of the Trust is the collection on
the Mortgage Loans and distribution of payments on the Certificates to
Certificateholders. This information is accurately summarized in the
Monthly Reports to Certificateholders, which are filed on Form 8-K. There
is no additional relevant information to report in response to Item 101 of
Regulation S-K.
ITEM 2. Properties.
The Depositor owns no property. The First Boston Mortgage Securities
Corp., Conduit Mortgage Pass-Through Certificates, Series 1988-2, in the
aggregate, represent the beneficial ownership in a Trust consisting
primarily of the Mortgage Loans. The Trust will acquire title to real
estate only upon default of the mortgagors under the Mortgage Loan.
Therefore, this item is inapplicable.
ITEM 3. Legal Proceedings.
None.
ITEM 4. Submission of Matters to a Vote of Security Holders.
No matters were submitted to a vote of Certificateholders during the
fiscal year covered by this report.
PART II
ITEM 5. Market for Depositor's Common Equity and Related Stockholder
Matters.
The First Boston Mortgage Securities Corp., Conduit Mortgage Pass-Through
Certificates, Series 1988-2 represent, in the aggregate, the beneficial
ownership in a trust fund consisting primarily of the Mortgage Loans.
The Certificates are owned by Certificateholders as trust beneficiaries.
Strictly speaking, Depositor has no "common equity," but for purposes of
this Item only, Depositor's Conduit Mortgage Pass-Through Certificates
are treated as "common equity."
(a) Market Information. There is no established public trading market
for Depositor's Notes. Depositor believes the Notes are traded
primarily in intra-dealer markets and non-centralized inter-dealer
markets.
(b) Holders. The number of registered holders of all classes of
Certificates on May 31, 1990 was 1.
(c) Dividends. Not applicable. The information regarding dividend
required by sub-paragraph (c) of Item 201 of Regulation S-K is
inapplicable because the Trust does not pay dividends. However,
information as to distribution to Certificateholders is provided in the
Monthly Reports to Certificateholders for each month of the fiscal year in
which a distribution to Certificateholders was made.
ITEM 6. Selected Financial Data.
Not Applicable. Because of the limited activities of the Trust, the
Selected Financial Data required by Item 301 of Regulation S-K does not
add relevant information to that provided by the Monthly Reports to
Certificateholders, which are filed on a monthly basis on Form 8-K.
ITEM 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Not Applicable. The information required by Item 303 of Regulation S-K
is inapplicable because the Trust does not have management per se, but
rather the Trust has a Trustee who causes the preparation of the Monthly
Reports to Certificateholders. The information provided by the Monthly
Reports to Certificateholders, which are filed on a monthly basis on Form
8-K, does provide the relevant financial information regarding the
financial status of the Trust.
ITEM 8. Financial Statements and Supplementary Data.
Monthly Remittance Statement to the Certificateholders as to distributions
made on December 27, 1988 and filed with the Securities and Exchange
Commission on Form 8-K on February 9, 1999.
Annual Statement of Compliance by the Master Servicer is not
currently available and will be subsequently filed on Form 8.
Independent Accountant's Report on Servicer's will be subsequently filed
on Form 8.
ITEM 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.
None.
PART III
ITEM 10. Directors and Executive Officers of Depositor.
Not Applicable. The Trust does not have officers or directors.
Therefore, the information required by items 401 and 405 of Regulation S-K
are inapplicable.
ITEM 11. Executive Compensation.
Not Applicable. The Trust does not have officers or directors to whom
compensation needs to be paid. Therefore, the information required by
item 402 of regulation S-K is inapplicable.
ITEM 12. Security Ownership of Certain Beneficial Owners and
Management.
(a) Security ownership of certain beneficial owners. Under the
Pooling and Servicing Agreement governing the Trust, the holders of the
Certificates generally do not have the right to vote and are prohibited
from taking part in management of the Trust. For purposes of this Item
and Item 13 only, however, the Certificateholders are treated as "voting
security" holders.
As of May 31, 1990, the following are the only persons known
to the Depositor to be the beneficial owners of more than 5% of
any class of voting securities:
Sigler & Co.
c/o Chemical Bank
P.O. Box 50000
Newark, NJ 07101-8006
Series 1988-2
Class A
$6,910,170.00
100.0%
(b) Security ownership of management. Not Applicable. The Trust does
not have any officers or directors. Therefore, the information required
by Item 403 of Regulation S-K is inapplicable.
(c) Changes in control. Not Applicable. Since Certificateholders do not
possess, directly or indirectly, the power to direct or cause the
direction of the management and policies of the Trust, other than in
respect to certain required consents regarding any amendments to the
Pooling and Servicing Agreement, the information requested with respect to
item 403 of Regulation S-K is inapplicable.
ITEM 13. Certain Relationships and Related Transactions.
(a) Transactions with management and others. Depositor knows of no
transaction or series of transactions during the fiscal year ended
December 31, 1988, or any currently proposed transaction or series of
transactions, in an amount exceeding $60,000 involving the Depositor in
which the Certificateholders identified in Item 12(a) had or will have a
direct or indirect material interest. There are no persons of the types
described in Item 404(a)(1),(2) and (4) of Regulation S-K, however, the
information required by Item 404(a)(3) of Regulation S-K is hereby
incorporated by reference in Item 12 herein.
(b) Certain business relationships. None.
(c) Indebtedness of management. Not Applicable. The Trust does not have
management consisting of any officers or directors. Therefore, the
information required by item 404 of Regulation S-K is inapplicable.
(d) Transactions with promoters. Not Applicable. The Trust does not
use promoters. Therefore, the information required by item 404 of
Regulation S-K is inapplicable.
PART IV
ITEM 14. Exhibits, Financial Statement Schedules, and Reports on
Form 8-K.
(a) The following is a list of documents filed as part of this report:
EXHIBITS
Monthly Remittance Statement to the Certificateholders as to distributions
made on December 27, 1988 and filed with the Securities and Exchange
Commission on Form 8-K on February 9, 1999.
Annual Statement of Compliance by the Master Servicer is not
currently available and will be subsequently filed on Form 8.
Independent Accountant's Report on Servicer's servicing
activities is not currently available and will be subsequently
filed on Form 8.
(b) The following Reports on Form 8-K were filed during the last
quarter of the period covered by this Report:
Monthly Remittance Statement to the Certificateholders as to distributions
made on December 27, 1988 and filed with the Securities and Exchange
Commission on Form 8-K on February 9, 1999.
(c) The exhibits required to be filed by Depositor pursuant to Item 601
of Regulation S-K are listed above and in the Exhibit Index that
immediately follows the signature page hereof.
(d) Not Applicable. The Trust does not have any subsidiaries or
affiliates. Therefore, no financial statements are filed with respect to
subsidiaries or affiliates.
Supplemental information to be furnished with reports filed pursuant to
Section 15(d) by Depositors which have not registered securities
pursuant to Section 12 of the Act.
No annual report, proxy statement, form of proxy or other soliciting
material has been sent to Certificateholders, and the Depositor does not
contemplate sending any such materials subsequent to the filing of this
report.
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Depositor has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
By: Bankers Trust Company of California, N.A.
not in its individual capacity but solely
as a duly authorized agent of the
Registrant pursuant to the Pooling and
Servicing Agreement, dated as of November 1, 1988.
By: /s/Judy L. Gomez
Judy L. Gomez
Assistant Vice President
Date: March 3, 1999
EXHIBIT INDEX
Exhibit Document
1.1 Monthly Remittance Statement to the Certificateholders as to
distributions made on December 27, 1988 and filed with the Securities
and Exchange Commission on Form 8-K on February 9, 1999.
1.2 The Pooling and Servicing Agreement of the Registrant dated as
of November 1, 1988 (hereby incorporated herein by reference and
filed as part of the Registrant's Current Report on Form 8-K filed
with Securities and Exchange Commission on February 9, 1999.
