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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) April 29,
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)
W. 929 Sprague Avenue, Spokane, WA 99204
(Address of principal executive offices)
Registrant's telephone number, including area code (509)
838-311
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Item 5. Other Events.
On April 29, 1998, Metropolitan Mortgage & Securities Co.,
Inc. ("Metropolitan") and its wholly owned subsidiary,
Western United Life Assurance Company ("Western"), sold
approximately $164.3 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 $186.8 million
of mortgage pass-through certificates (the "Certificates"),
of which $182.1 million were sold in a public offering. In
connection with the sale, Metropolitan received cash and
approximately $4.7 million in Certificates and a residual
certificate resulting in an after tax profit of
approximately $7.0 million.
Old Standard Life Insurance Company, ("Old Standard") and
Arizona Life Insurance Company ("Arizona Life") also
participated in the offering by selling approximately $22.5
million of Mortgage Loans. Old Standard and Arizona Life
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 April 1, 1998,
among MAFI, as depositor, Metropolitan, Western, Old
Standard and Arizona Life, 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: May 13, 1998
METROPOLITAN MORTGAGE & SECURITIES CO., INC.
/S/ BRUCE BLOHOWIAK
BY: BRUCE BLOHOWIAK, Executive Vice President
