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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
Date of Report (Date of earliest event reported) November
24, 1998
Metropolitan Mortgage & Securities Co., Inc.
(Exact name of registrant as specified in its charter)
Washington 333-335 91-06069840
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification
incorporation) Number)
601 West 1st Avenue, Spokane, WA 99201
(Address of principal executive offices)
Registrant's telephone number, including area code (509)
838-311
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Item 5. Other Events.
On November 24, 1998, Metropolitan Mortgage & Securities
Co., Inc. ("Metropolitan") and its wholly owned subsidiary,
Western United Life Assurance Company ("Western"), sold
approximately $182.4 million in first lien mortgage loans
secured by, and contracts for the sale of real property
relating to, residential, multi-family and commercial
properties (the "Mortgage Loans"). Such sale was made in
connection with the issuance of approximately $194.4 million
of mortgage pass-through certificates (the "Certificates"),
of which $168.2 million were sold to non-affiliated
institutional investors in a private offering. In connection
with the sale, Metropolitan and Western received cash and a
residual certificate resulting in an after tax profit of
approximately $6.0 million. Western purchased the Class M-2
Certificates (with an initial certificate balance of $6.8
million), the Class B-1 Certificates (with an initial
certificate balance of $5.8 million) and the Class X
Certificate which is an interest only certificate and has a
notional initial certificate balance.
Old Standard Life Insurance Company, ("Old Standard") and
Old West Annuity & Life Insurance Company ("Old West") also
participated in the offering by selling approximately $12
million of Mortgage Loans. Old Standard and Old West are
under common control with Metropolitan.
The Mortgage Loans were sold to Metropolitan Asset Funding,
Inc. II ("MAFI") which in turn sold the Mortgage Loans to
the trust created pursuant to the Pooling and Servicing
Agreement (the "Agreement"), dated as of November 1, 1998,
among MAFI, as depositor, Metropolitan, Western, Old
Standard and Old West, as sellers of the Mortgage Loans,
Metwest Mortgage Services, Inc. ("Metwest"), as the master
servicer, and The Bank of New York, as trustee. Pursuant to
the Agreement, Metwest, a wholly owned subsidiary of
Metropolitan, will continue to service the Mortgage Loans
for which it will receive a fee.
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SIGNATURES
Pursuant to the requirements of the Securities and
Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned
hereunto duly authorized.
Dated: December 04, 1998
METROPOLITAN MORTGAGE & SECURITIES CO., INC.
/S/ BRUCE BLOHOWIAK
BY: BRUCE BLOHOWIAK, Executive Vice President
