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) October 29, 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 1998-20)
GE Capital Mortgage Services, Inc.
(Exact name of registrant as specified in its 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 Office) (Zip Code)
Registrant's telephone number, including area code (609) 661-6100
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
General.
On October 29, 1998, GE Capital Mortgage Services, Inc.
("GECMSI") offered to investors certain classes of its REMIC
Multi-Class Pass-Through Certificates, Series 1998-20 (the
"Certificates") evidencing beneficial ownership interests in a
trust fund (the "Trust Fund"). The assets of the Trust Fund
consist primarily of a pool ("Pool 1998-20") of conventional,
one- to four-family residential loans (the "Mortgage Loans").
Capitalized terms used herein and not otherwise defined shall
have the meanings assigned to them in the Prospectus dated
October 22, 1998 as supplemented by the Prospectus Supplement
dated October 27, 1998.
The original principal balance of each Class of the Certificates
is as follows:
Class A1 $287,697,958.00
Class A2 $5,000,000.00
Class A3 $5,000,000.00
Class A4 $4,025,000.00
Class A5 $35,091,000.00
Class R $100.00
Class M $5,264,000.00
Class B1 $2,632,000.00
Class B2 $1,755,000.00
Class B3 $2,281,000.00
Class B4 $1,052,000.00
Class B5 $1,053,546.58
Class PO $62,941.61
---------------
Total: $350,914,546.19
The initial Junior Percentage and initial Senior Percentage for
Pool 1998-20 are approximately 4.00% and 96.00%, respectively.
The "Bankruptcy Loss Amount," the "Fraud Loss Amount" and the
"Special Hazard Loss Amount" for Pool 1998-20 as of the initial
issuance of the Certificates are $118,464.00, $3,509,145.00 and
$3,509,145.00, respectively, representing approximately .0338%,
1.0000%, and 1.0000%, respectively, of the aggregate Scheduled
Principal Balances of the Mortgage Loans as of October 1, 1998
(the "Cut-off Date").
Description of the Mortgage Pool and the Mortgaged Properties
- -------------------------------------------------------------
Pool 1998-20
- ------------
Pool 1998-20 consists primarily of fixed-rate, fully-amortizing
conventional Mortgage Loans evidenced by Mortgage Notes which
have original maturities of 20 to 30 years and an aggregate
outstanding Scheduled Principal Balance as of the Cut-off Date,
after deducting payments of principal due on or before such date
and prepayments of principal received before such date, of
$350,914,546.19.
The interest rates (the "Mortgage Rates") borne by the 1123
Mortgage Loans conveyed by GECMSI to Pool 1998-20 range from
6.5000% to 10.1250% and the weighted average Mortgage Rate as of
the Cut-off Date is 7.5606% per annum (all weighted averages in
this filing are weighted by aggregate outstanding Scheduled
Principal Balance as of the Cut-off Date). At origination, the
principal balances of the Mortgage Loans in Pool 1998-20 ranged
from $77,200.00 to $1,100,000.00, and, as of the Cut-off Date,
the average outstanding Scheduled Principal Balance of the
Mortgage Loans in Pool 1998-20 is $312,479.56, after application
of principal payments due on or before the Cut-off Date and
prepayments of principal received before such date. The earliest
origination date of any Mortgage Loan in Pool 1998-20 is March
1991, and the latest scheduled maturity date of any such Mortgage
Loan is October 2028. The weighted average loan-to-value ratio of
the Mortgage Loans as of the Cut-off Date in Pool 1998-20 is
74.1939%.
2
The Mortgage Loans in Pool 1998-20 have the following
characteristics as of the Cut-off Date.
a) The following table sets forth information, as of the Cut-off
Date, with respect to the Mortgage Rates borne by the Mortgage
Loans in Pool 1998-20:
AGGREGATE % OF
BALANCES POOL BY
MORTGAGE # OF AS OF AGGREGATE
RATES LOANS CUT-OFF DATE BALANCE
-------- ----- ------------ ---------
6.5000% 1 $259,764.95 0.0740%
6.6250% 5 $1,384,319.14 0.3945%
6.7500% 19 $6,351,909.82 1.8101%
6.8750% 40 $12,641,368.60 3.6024%
7.0000% 55 $17,291,580.39 4.9276%
7.1250% 109 $35,453,235.01 10.1031%
7.2500% 179 $58,595,348.41 16.6980%
7.3750% 206 $65,851,971.41 18.7659%
7.5000% 180 $56,063,224.02 15.9763%
7.6250% 107 $32,964,817.99 9.3940%
7.7500% 38 $11,367,580.83 3.2394%
7.8750% 13 $4,084,412.93 1.1639%
8.0000% 1 $253,429.84 0.0722%
8.2500% 1 $291,626.32 0.0831%
8.3750% 11 $3,066,365.42 0.8738%
8.5000% 10 $2,504,741.16 0.7138%
8.6250% 16 $4,856,507.76 1.3840%
8.7500% 20 $5,881,823.62 1.6761%
8.8750% 23 $6,923,686.55 1.9730%
9.0000% 19 $5,325,646.64 1.5176%
9.0100% 1 $450,537.07 0.1284%
9.1250% 14 $3,804,011.28 1.0840%
9.2500% 19 $5,555,197.56 1.5831%
9.3750% 15 $3,922,231.80 1.1177%
9.5000% 14 $3,868,679.34 1.1025%
9.6250% 5 $1,397,795.85 0.3983%
9.7500% 1 $245,344.78 0.0699%
10.1250% 1 $257,387.70 0.0733%
----- --------------- ---------
Total 1,123 $350,914,546.19 100.0000%
3
b) The following table sets forth information, as of the Cut-off
Date, with respect to the original principal balances of the
Mortgage Loans in Pool 1998-20:
AGGREGATE % OF
BALANCES POOL BY
ORIGINAL # OF AS OF AGGREGATE
BALANCES LOANS CUT-OFF DATE BAL.
-------- ----- ------------ ---------
$0 - 227,150 90 $14,104,771.52 4.0194%
$227,151 - 250,000 127 $29,701,093.45 8.4639%
$250,001 - 300,000 416 $113,422,336.31 32.3220%
$300,001 - 350,000 221 $70,787,370.25 20.1723%
$350,001 - 400,000 104 $38,949,464.69 11.0994%
$400,001 - 450,000 57 $24,090,384.74 6.8650%
$450,001 - 600,000 86 $43,352,119.97 12.3540%
$600,001 - 650,000 10 $6,443,028.92 1.8361%
$650,001 - 1,000,000 + 12 $10,063,976.34 2.8679%
----- --------------- ---------
Total 1,123 $350,914,546.19 100.0000%
The largest outstanding Scheduled Principal Balance of any
Mortgage Loan, as of the Cut-off Date, in Pool 1998-20 is
$1,098,402.62.
The smallest outstanding Scheduled Principal Balance of any
Mortgage Loan, as of the Cut-off Date, in Pool 1998-20 is
$77,058.05.
c) The following table sets forth information, as of the Cut-off
Date, with respect to the years of origination of the Mortgage
Loans in Pool 1998-20:
AGGREGATE % OF
BALANCES POOL BY
YEAR OF # OF AS OF AGGREGATE
ORIGINATION LOANS CUT-OFF DATE BALANCE
- ----------- ----- ------------ ---------
1991 32 $9,174,013.91 2.6143%
1992 137 $38,885,942.62 11.0813%
1994 1 $348,000.00 0.0992%
1997 3 $1,193,156.38 0.3400%
1998 950 $301,313,433.28 85.8652%
----- --------------- ---------
Total 1,123 $350,914,546.19 100.0000%
4
d) The following table sets forth information, as of the Cut-off
Date, with respect to the loan-to-value ratios of the Mortgage
Loans at origination in Pool 1998-20:
LOAN- AGGREGATE % OF
TO-VALUE BALANCES POOL BY
RATIO AT # OF AS OF AGGREGATE
ORIGINATION LOANS CUT-OFF DATE BALANCE
----------- ----- ------------ ---------
00.000 - 50.00 46 $14,855,070.01 4.2332%
50.001 - 60.00 91 $33,412,255.86 9.5215%
60.001 - 70.00 146 $51,652,345.86 14.7194%
70.001 - 75.00 138 $45,672,907.19 13.0154%
75.001 - 80.00 549 $163,933,714.65 46.7161%
80.001 - 85.00 13 $3,843,851.21 1.0954%
85.001 - 90.00 82 $23,461,515.56 6.6858%
90.001 - 95.00 58 $14,082,885.85 4.0132%
----- --------------- ---------
Total 1,123 $350,914,546.19 100.0000%
e) The following table sets forth information, as of the Cut-off
Date, with respect to the type of Mortgaged Properties
securing the Mortgage Loans in Pool 1998-20:
AGGREGATE % OF
BALANCES POOL BY
TYPE OF # OF AS OF AGGREGATE
DWELLING LOANS CUT-OFF DATE BALANCE
- -------- ----- ------------ ---------
Single-family 1,027 $320,430,690.12 91.3130%
detached
Single-family 24 $7,445,346.89 2.1217%
attached
Condominium 52 $15,510,378.91 4.4200%
2 - 4 Family Units 14 $5,408,674.59 1.5413%
Co-op 6 $2,119,455.68 0.6040%
----- --------------- ---------
Total 1,123 $350,914,546.19 100.0000%
f) The following table sets forth information, as of the Cut-off
Date, with respect to the occupancy status of the Mortgaged
Properties securing the Mortgage Loans as represented by the
mortgagors at origination in Pool 1998-20:
AGGREGATE % OF
BALANCES POOL BY
# OF AS OF AGGREGATE
OCCUPANCY LOANS CUT-OFF DATE BALANCE
- --------- ----- ------------ ---------
Owner Occupied 1,103 $345,429,985.62 98.4371%
Vacation 11 $3,530,305.14 1.0060%
Investment 9 $1,954,255.43 0.5569%
----- --------------- ---------
Total 1,123 $350,914,546.19 100.0000%
5
g) The following table sets forth information, as of the Cut-off
Date, with respect to the geographic distribution of the
Mortgaged Properties securing the Mortgage Loans in Pool
1998-20:
AGGREGATE % OF
BALANCES POOL BY
# OF AS OF AGGREGATE
STATE LOANS CUT-OFF DATE BALANCE
- ----- ----- ------------ ---------
Alabama 3 $858,935.88 0.2448%
Arizona 8 $3,019,491.15 0.8605%
Arkansas 1 $307,529.84 0.0876%
California 443 $138,248,740.98 39.3966%
Colorado 12 $3,633,636.28 1.0355%
Connecticut 29 $10,464,831.85 2.9822%
Delaware 3 $828,878.60 0.2362%
District Of Columbia 8 $2,629,059.10 0.7492%
Florida 31 $9,189,418.57 2.6187%
Georgia 25 $7,283,529.31 2.0756%
Hawaii 7 $2,748,621.02 0.7833%
Idaho 2 $515,578.15 0.1469%
Illinois 28 $8,719,539.39 2.4848%
Indiana 1 $241,120.92 0.0687%
Iowa 1 $291,554.24 0.0831%
Louisiana 9 $2,525,397.77 0.7197%
Maine 1 $395,000.00 0.1126%
Maryland 72 $22,543,688.54 6.4243%
Massachusetts 80 $25,658,209.74 7.3117%
Michigan 9 $2,599,770.88 0.7409%
Minnesota 11 $3,323,196.29 0.9470%
Mississippi 2 $634,757.78 0.1809%
Missouri 1 $387,704.76 0.1105%
Nevada 9 $2,269,391.21 0.6467%
New Hampshire 2 $779,683.80 0.2222%
New Jersey 54 $17,018,809.95 4.8498%
New Mexico 4 $1,216,012.67 0.3465%
New York 56 $20,198,056.82 5.7558%
North Carolina 6 $1,836,793.97 0.5234%
Ohio 6 $1,831,676.86 0.5220%
Oklahoma 1 $645,324.41 0.1839%
Oregon 8 $2,111,968.37 0.6018%
Pennsylvania 24 $7,035,501.88 2.0049%
Rhode Island 1 $79,602.12 0.0227%
South Dakota 1 $263,107.65 0.0750%
Tennessee 5 $1,881,160.37 0.5361%
Texas 39 $11,439,028.54 3.2598%
Utah 2 $600,004.89 0.1710%
Virginia 103 $30,138,876.67 8.5887%
Washington 14 $4,285,530.12 1.2212%
Wisconsin 1 $235,824.85 0.0672%
----- --------------- ---------
Total 1,123 $350,914,546.19 100.0000%
6
h) The following table sets forth information, as of the Cut-off
Date, with respect to the maturity dates of the Mortgage Loans
in Pool 1998-20:
AGGREGATE % OF
BALANCES POOL BY
YEAR OF # OF AS OF AGGREGATE
MATURITY LOANS CUT-OFF DATE BALANCE
- -------- ----- ------------ ---------
2018 4 $1,775,146.06 0.5059%
2021 19 $5,170,810.05 1.4735%
2022 150 $42,889,146.48 12.2221%
2023 4 $1,171,218.80 0.3338%
2027 1 $297,644.65 0.0848%
2028 945 $299,610,580.15 85.3799%
----- --------------- ---------
Total 1,123 $350,914,546.19 100.0000%
The weighted average scheduled remaining term to maturity of the
Mortgage Loans in Pool 1998-20 calculated as of the Cut-off Date
is 347 months.
i) The following table sets forth information, as of the Cut-off
Date, with respect to the purpose of the Mortgage Loans in
Pool 1998-20:
AGGREGATE % OF
BALANCES POOL BY
PURPOSE # OF AS OF AGGREGATE
OF LOAN LOANS CUT-OFF DATE BALANCE
- ------- ----- ------------ ---------
Purchase 572 $173,915,497.60 49.5606%
Rate Term/Refinance 490 $157,988,002.04 45.0218%
Cash-out Refinance 61 $19,011,046.55 5.4176%
----- --------------- ---------
Total 1,123 $350,914,546.19 100.0000%
7
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS AND
EXHIBITS.
1.1 The Underwriting Agreement, dated as of October
23, 1995, and the related Terms Agreement, dated
as of October 27, 1998, for certain of the Series
1998-20 Certificates between GE Capital Mortgage
Services, Inc. and Salomon Smith Barney Inc.
4.1 The Pooling and Servicing Agreement for the Series
1998-20 Certificates, dated as of October 1, 1998, between
GE Capital Mortgage Services, Inc., as seller and servicer,
and State Street Bank and Trust Company, as trustee.
8
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 thereunto duly authorized.
GE Capital Mortgage Services, Inc.
By: /s/ Syed W. Ali
-------------------------------
Name: Syed W. Ali
Title: Vice President
Dated as of October 29, 1998
9
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 thereunto duly authorized.
GE Capital Mortgage Services, Inc.
By:
-------------------------------
Name: Syed W. Ali
Title: Vice President
Dated as of October 29, 1998
10
EXHIBIT INDEX
The exhibits are being filed herewith:
- -----------------------------------------------------------------
EXHIBIT NO. DESCRIPTION PAGE
- -----------------------------------------------------------------
1.1 The Underwriting Agreement, dated as
of October 23, 1995, and the related
Terms Agreement, dated as of October
27, 1998, for certain of the Series
1998-20 Certificates between GE Capital
Mortgage Services, Inc. and Salomon
Smith Barney Inc.
4.1 The Pooling and Servicing Agreement
for the Series 1998-20 Certificates,
dated as of October 1, 1998, between
GE Capital Mortgage Services, Inc., as
seller and servicer, and State Street
Bank and Trust Company, as trustee.
- -----------------------------------------------------------------
11