PROSPECTUS SUPPLEMENT
(To Prospectus Supplement Dated December 17, 1996 and Prospectus Dated October
18, 1996)
$275,000,000 (APPROXIMATE)
OPTION ONE ASSET-BACKED FIXED RATE AND FLOATING RATE CERTIFICATES
SERIES 1996-8
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
DEPOSITOR
OPTION ONE MORTGAGE CORPORATION
MORTGAGE LOAN SELLER AND MASTER SERVICER
THE FIRST SENTENCE OF THE FIRST PARAGRAPH ON PAGE S-56 UNDER THE HEADING
"DESCRIPTION OF THE CERTIFICATES--CALCULATION OF ONE-MONTH LIBOR" IS REPLACED BY
THE FOLLOWING:
With respect to the first Interest Accrual Period for the Class A2
Certificates, on December 17, 1996, and with respect to each subsequent
Interest Accrual Period for the Class A2 Certificates, on the second
business day preceding each Distribution Date (each such date, an "Interest
Determination Date"), the Trustee will determine the London interbank
offered rate for one-month U.S. dollar deposits ("One-Month LIBOR") for the
next Interest Accrual Period for the Class A2 Certificates on the basis of
the offered rates of the Reference Banks for one-month U.S. dollar
deposits, as such rates appear on the Reuter Screen LIBO Page, as of 11:00
a.m. (London time) on such Interest Determination Date.
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SALOMON BROTHERS INC
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The date of this Prospectus Supplement is December 19, 1996.
