GE CAPITAL MORTGAGE SERVICES INC
8-K, 1998-10-27
ASSET-BACKED SECURITIES
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         IN ACCORDANCE WITH RULE 202 OF REGULATION S-T,
              THIS FORM 8-K IS BEING FILED IN PAPER
          PURSUANT TO A CONTINUING HARDSHIP EXEMPTION.



                SECURITIES AND EXCHANGE COMMISSION
                       WASHINGTON, DC 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) October 23, 1998
                                                 ----------------


                GE Capital Mortgage Services, Inc.
          (as Seller and Servicer under the Pooling and
         Servicing Agreement dated as of October 1, 1998,
         providing for the issuance of REMIC Multi-Class
            Pass-Through Certificates, Series 1998-17)



                GE Capital Mortgage Services, Inc.
- -----------------------------------------------------------------
        (Exact Name of Registrant as Specified in Charter)


      New Jersey            33-5042            21-0627285
- -----------------------------------------------------------------
   (State or Other        (Commission       (I.R.S. Employer
     Jurisdiction         File Number)     Identification No.)
   of Incorporation)


Three Executive Campus
Cherry Hill, New Jersey                             08002
- -----------------------------------------------------------------
(Address of Principal Executive Offices)          (Zip Code)


Registrant's telephone number, including area code (609) 661-6100
                                                   --------------


<PAGE>


Item 5.    Other Events.

           Attached as Exhibit 1 to this Current Report are
certain materials (the "Computational Materials") furnished to
the Registrant by Merrill Lynch, Pierce, Fenner & Smith
Incorporated ("Merrill Lynch" as an Underwriter) in respect of
certain classes of the Registrant's REMIC Multi-Class
Pass-Through Certificates, Series 1998-17 (the "Series 1998- 17
Certificates"). Certain classes of the Series 1998-17
Certificates are being offered pursuant to a Prospectus dated
October 22, 1998, as supplemented by a related Prospectus
Supplement dated October 23, 1998 (together, the "Prospectus"),
which are being filed with the Commission pursuant to Rule 424(b)
under the Securities Act of 1933, as amended (the "Act"),
substantially concurrently with the filing of this Current
Report. The Certificates have been registered pursuant to the Act
under a Registration Statement on Form S-3 (No. 333- 51151) (the
"Registration Statement"). The Registrant hereby incorporates the
Computational Materials by reference in the Registration
Statement.

           The Computational Materials were prepared solely by
Merrill Lynch, as underwriter of certain classes of the Series
1998-17 Certificates, and the Registrant did not prepare or
participate in the preparation of the Computational Materials.

           Any statement or information contained in the
Computational Materials shall be deemed to be modified or
superseded for purposes of the Prospectus and the Registration
Statement by statements or information contained in the
Prospectus.


Item 7.    Financial Statements, Pro Forma Financial Information
           and Exhibit.

(c)  Exhibit.


Exhibit 1.   Computational Materials (Merrill Lynch, Pierce,
             Fenner & Smith Incorporated)


                                2
<PAGE>


                            SIGNATURES

           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 hereunto duly
authorized.


                              GE Capital Mortgage Services, Inc.
                              ----------------------------------
                                         (Registrant)



Date: October 23, 1998        By    /s/ Mary Kaplan
      ----------------          --------------------------
                              Name:   Mary Kaplan
                              Title:  Vice President


                                3
<PAGE>


                          EXHIBIT INDEX



The following exhibit is being filed herewith:


EXHIBIT NO.     DESCRIPTION                            PAGE
- -----------     -----------                            ----

    1.          Computational Materials                  5
                (Merrill Lynch, Pierce,
                Fenner & Smith Incorporated)


                                4



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