-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, V3ys3sQK3Ha5lfaAAsAzZnAAdNdHApYDr2VJkEuAOx+X1QwBK+d+RUWlYwjVTWYF cIFCkKjXzvAk4XcwEiJnAA== 0001005477-98-000938.txt : 19980330 0001005477-98-000938.hdr.sgml : 19980330 ACCESSION NUMBER: 0001005477-98-000938 CONFORMED SUBMISSION TYPE: 10-K405 PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980327 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HEADLANDS MORTGAGE SEC PASS THR CERT SER 1997-4 CENTRAL INDEX KEY: 0001045028 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] IRS NUMBER: 680397342 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K405 SEC ACT: SEC FILE NUMBER: 333-32485-01 FILM NUMBER: 98576124 BUSINESS ADDRESS: STREET 1: 700 LARKSPUR LANDING CIRCLE STE 240 CITY: LARKSPUR STATE: CA ZIP: 94939 BUSINESS PHONE: 4159255442 MAIL ADDRESS: STREET 1: 700 LARKSPUR LANDING CIRCLE STREET 2: STE 250 CITY: LARKSPUR STATE: CA ZIP: 94939 10-K405 1 FORM 10-K405 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K |X| ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 1997 OR |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 For the transition period from __________ to _________. Commission File Number: 333-32485-1 Headlands Mortgage Securities Inc. (as Sponsor under a Pooling and Servicing Agreement dated as of August 1, 1997 providing for the issuance of the Mortgage Pass-Through Certificates, Series 1997-4) HEADLANDS MORTGAGE SECURITIES INC. (Exact Name of registrant as specified in its charter) Delaware 68-0397342 (State or other jurisdiction of (I.R.S. employer identification no.) incorporation or organization) 1100 Larkspur Landing Circle, Suite 101, Larkspur, California (Address of principal executive 94939 offices) (Zip code) (415) 461-6790 (Registrant's telephone number, including area code) Securities registered pursuant Securities registered pursuant to Section 12(b) of the Act: to Section 12(g) of the Act: None None (Title of class) (Title of class) Indicate by check mark whether the Registrant (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 Registrant 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 Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. |X| State the aggregate market value of the voting stock held by non-affiliates of Registrant. The aggregate market value shall be computed by reference to the price at which the stock was sold, or the average bid and asked prices of such stock, as of specified date within 60 days prior to the date of filing: Not Applicable Documents incorporated by reference: Not Applicable HEADLANDS MORTGAGE SECURITIES INC. MORTGAGE PASS-THROUGH CERTIFICATES SERIES 1997-4 INDEX Page ---- PART I ..................................................................... 3 ITEM 1 - BUSINESS.................................................. 3 ITEM 2 - PROPERTIES................................................ 3 ITEM 3 - LEGAL PROCEEDINGS......................................... 3 ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.......................................... 3 PART II ..................................................................... 3 ITEM 5 - MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTERS............................... 3 ITEM 6 - SELECTED FINANCIAL DATA................................... 3 ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS............. 3 ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA............... 3 ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.................... 3 PART III..................................................................... 4 ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT............................................ 4 ITEM 11 - EXECUTIVE COMPENSATION.................................... 4 ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT..................................... 4 ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS............ 7 PART IV ..................................................................... 7 ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K....................................... 7 SIGNATURES ................................................................. 9 INDEX TO EXHIBITS............................................................ 10 2 PART I ITEM 1 - BUSINESS Not Applicable. ITEM 2 - PROPERTIES Headlands Mortgage Securities Inc. (the "Sponsor") will furnish information regarding the Mortgaged Properties by reference to the Annual Compliance Certificates to be filed herein under Item 14. ITEM 3 - LEGAL PROCEEDINGS The Sponsor is not aware of any material pending legal proceedings involving either the Mortgage Pass-Through Certificates Series 1997-4 (the "Trust"), established pursuant to the Pooling and Servicing Agreement (the "Agreement") dated August 1, 1997 among The Bank of New York, as trustee (the "Trustee"), Headlands Mortgage Securities Inc., as Sponsor and Headlands Mortgage Company, as servicer (the "Servicer"); the Trustee; the Sponsor; or the Servicer which relates to the Trust. ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS No matter has been submitted to a vote of the holders of beneficial interests in the Trust through the solicitation of proxies or otherwise. PART II ITEM 5 - MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTERS To the best knowledge of the Sponsor, there is no established public trading market for the Certificates. All of the Class A-I Certificates, Class A-II Certificates, Class B Certificates, Class X Certificates and Class PO Certificates issued by the Trust are held by the Depository Trust Company ("DTC") which in turn maintains records of holders of beneficial interests in such Certificates. Based on information obtained by the Trust from DTC, as of December 31, 1997, there were 24 holders of the Class A Certificates, 3 holders of the Class B Certificates, 1 holder of the Class R Certificates and 5 holders of the Class X Certificates. ITEM 6 - SELECTED FINANCIAL DATA Not Applicable. ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Not Applicable. ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION Not Applicable. ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE There were no changes of accountants or disagreements on accounting or financial disclosures between the Sponsor and its accountants. 3 PART III ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT Not Applicable. ITEM 11 - EXECUTIVE COMPENSATION Not Applicable. ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT The following table sets forth (i) the name and address of each entity owning more than 5% of the outstanding principal amount of each Class of Certificates of the Trust; (ii) the principal amount of the Class of Certificates owned by each and (iii) the percent that the principal amount of the Class of Certificates owned by such entity represents of the outstanding principal amount of such Class of Certificates. The information set forth in the table for the Certificates is based upon information obtained by the Trust from DTC and represents ownership of beneficial interest in the Certificates held by DTC. The Sponsor is not aware of any Schedules 13D or 13G filed with the Securities and Exchange Commission in respect of the Certificates. Class A-I-1 Name and Address Principal Amount % of Class The Bank of New York/Barclay's $15,159,112 100% DeZoete Wedd Securities One Wall Street, 4th Floor New York, NY 10286 Class A-I-2 Name and Address Principal Amount % of Class Bear, Stearns Securities Corp. $15,159,112 100% One Metrotech Center North 4th Floor Brooklyn, NY 11201-3862 Class A-I-3 Name and Address Principal Amount % of Class Chase Manhattan Bank/Chemical $32,477,717 100% 4 New York Plaza Proxy Department, 13th Floor New York, NY 10004 Class A-I-4 Name and Address Principal Amount % of Class Fifth Third Bank/State Teachers $9,308,171 50.0% Retirement of Ohio 275 East Broad Street Columbus, OH 43215 4 PNC Bank, National Association $5,000,000 27.0% 1835 Market Street 11 Penn Center, 15th Floor Philadelphia, PA 19103 Chase Manhattan Bank $3,000,000 16.2% 4 New York Plaza 13th Floor New York, NY 10004 Chase Manhattan Bank, Trust $1,200,000 6.4% 4 New York Plaza 13th Floor New York, NY 10004 Class A-I-5 Name and Address Principal Amount % of Class Fifth Third Bank/State Teachers $12,453,000 100% Retirement of Ohio 275 East Broad Street Columbus, OH 43215 Class A-I-6 Name and Address Principal Amount % of Class SSB - Custodian $14,488,000 100% Global Corp. Action Dept. JAB5W P.P. Box 1631 Boston, MA 02105-1631 Class A-I-7 Name and Address Principal Amount % of Class Bear, Stearns Securities Corp. $10,000,000 62.0% One Metrotech Center North 4th Floor Brooklyn, NY 11201-3862 Bank One Trust Company, N.A. $6,133,000 38.0% 235 W. Schrock Road Brooksedge Village Westerville, OH 43081 5 Class A-I-8 Name and Address Principal Amount % of Class Bank of New York $5,084,000 100% 925 Patterson Plank Road Secaucus, NJ 07094 Class A-I-9 Name and Address Principal Amount % of Class Mercantile Bank of St. Louis $2,255,503 60.0% National Association P.O. Box 387 St. Louis, MO 63166-0387 McDonald & Company Securities, $498,000 13.3% Inc. 800 Superior Avenue Cleveland, OH 44714 Stone & Youngberg $372,000 9.9% 50 California Street 35th Floor San Francisco, CA 94111 J.A. Glynn & Co. $372,000 6.4% 9841 Clayton Road St. Louis, MO 63124 Class A-I-10 Name and Address Principal Amount % of Class Bankers Trust Company $32,456,001 100% c/o BT Services Tennessee Inc. 648 Gressmere Park Drive Nashville, TN 37211 Class A-II Name and Address Principal Amount % of Class Custodial Trust Company $54,829,223 78.2% 101 Carnegie Center Princeton, NJ 08540 Chase Manhattan Bank/Chemical $15,250,000 21.8% 4 New York Plaza Proxy Department, 13th Floor New York, NY 10004 6 Class B-1 Name and Address Principal Amount % of Class Bankers Trust Company $6,540,000 100% c/o BT Services Tennessee Inc. 648 Gressmere Park Drive Nashville, TN 37211 Class B-2 Name and Address Principal Amount % of Class Bear, Stearns Securities Corp. $4,162,100 100% One Metrotech Center North 4th Floor Brooklyn, NY 11201-3862 Class B-3 Name and Address Principal Amount % of Class Bear, Stearns Securities Corp. $2,972,000 100% One Metrotech Center North 4th Floor Brooklyn, NY 11201-3862 Class X Name and Address Principal Amount % of Class Glenmade Trust Company $115,000,000 48.4% One Liberty Place, Suite 1200 1650 Market Street Philadelphia, PA 19103 SSB - Custodian $73,702,058 31.0% Global Corp. Action Dept. JAB5W P.P. Box 1631 Boston, MA 02105-1631 Chase Manhattan Bank $40,523,711 17.0% 4 New York Center 13th Floor New York, NY 10004 ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS None. PART IV ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K (a) The following documents are filed as part of this report: 7 1. Financial Statements: Not applicable. 2. Financial Statement Schedules: Not applicable. 3. Exhibits: Exhibit No. Description ----------- ----------- 99.1. Statement of Compliance of the Master Servicer. 99.2 Annual Report of Independent Accountant with respect to the Master Servicer's overall servicing operations. 8 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Sponsor has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized. By: HEADLANDS MORTGAGE SECURITIES INC., As Sponsor By: /s/ Gilbert J. MacQuarrie ------------------------------------ Name: Gilbert J. MacQuarrie Title: Vice President, Treasurer and Secretary Date: March 26, 1998. Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Sponsor and in the capacities and on the dates indicated: Signature Position Date --------- -------- ---- /s/ Peter T. Paul President and Director March 26, 1998 - --------------------------- (Principal Executive Officer) Peter T. Paul /s/ Becky S. Poisson Vice President and Director March 26, 1998 - --------------------------- Becky S. Poisson /s/ Gilbert J. MacQuarrie Vice President, Treasurer, March 26, 1998 - --------------------------- Secretary and Director Gilbert J. MacQuarrie (Principal Financial Officer and Principal Accounting Officer) /s/ Steven M. Abreu Vice President and Director March 26, 1998 - --------------------------- Steven M. Abreu Director March ___, 1998 - --------------------------- Kenneth Siprelle Director March ___, 1998 - --------------------------- John Edmonds /s/ Kristen Decker Vice President March 26, 1998 - --------------------------- Kristen Decker 9 INDEX TO EXHIBITS Item 14(C) Exhibit No. Description - ----------- ----------- 99.1 Statement of Compliance of the Master Servicer. 99.2 Annual Report of Independent Accountant with respect to the Master Servicer's overall servicing operations. 10 EX-99.1 2 STATEMENT OF COMPLIANCE OF THE MASTER SERVICER Exhibit 99.1 HEADLANDS MORTGAGE SECURITIES INC. Mortgage Pass-Through Certificates Series 1997-4 Officer's Certificate In connection with the above-referenced trust and pursuant to Section 3.13 of the related Pooling and Servicing Agreement ("Agreement"), Headlands Mortgage Company (as "Master Servicer") hereby confirms the following: (i) a review of the activities of the Master Servicer during 1997 and of performance under the Agreement has been made under the undersigned's supervision; and (ii) to the best of the undersigned's knowledge, based on such review, the Master Servicer has fulfilled all of its obligations under the Agreement for the calendar year 1997. HEADLANDS MORTGAGE SECURITIES INC. By: /s/ Gilbert J. MacQuarrie -------------------------------------- Gilbert J. MacQuarrie Vice President, Treasurer and Secretary 11 EX-99.2 3 ANNUAL REPORT OF INDEPENDENT ACCOUNTANT Exhibit 99.2 [KPMG Peat Marwick LLP Letterhead] Independent Accountants' Report Board of Directors Headlands Mortgage Company: We have examined management's assertion about Headlands Mortgage Company's (the Company) compliance with the minimum servicing standards set forth in the Mortgage Bankers Association of America's (MBA's) Uniform Single Attestation Program for Mortgage Bankers (USAP) as of and for the year ended December 31, 1997 included in the accompanying management assertion. Management is responsible for the Company's compliance with those minimum servicing standards. Our responsibility is to express an opinion on management's assertion about the Company's compliance based on our examination. Our examination was made in accordance with standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Company's compliance with the minimum servicing standards and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Company's compliance with the minimum servicing standards. In our opinion, management's assertion that the Company has complied in all material respects with the aforementioned minimum servicing standards as of and for the year ended December 31, 1997 is fairly stated, in all material respects. /s/ KPMG Peat Marwick LLP San Francisco, California February 13, 1998 12 [HEADLANDS MORTGAGE COMPANY LETTERHEAD] As of and for the year ended December 31, 1997, Headlands Mortgage Company (the "Company") has complied in all material respects with the minimum servicing standards set forth in the Mortgage Bankers Association of America's Uniform Single Attestation Program for Mortgage Bankers. As of and for this same period, the Company had in effect a fidelity bond and errors and omissions policy both in the amount of $5.5 million. HEADLANDS MORTGAGE COMPANY By: /s/ Dennis Tussey ---------------------------------------------- Dennis Tussey Senior Vice President, Loan Administration -----END PRIVACY-ENHANCED MESSAGE-----