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) November 30, 1998
GE CAPITAL MORTGAGE SERVICES, INC.
(as Seller and Servicer under the Pooling and
Servicing Agreement, dated as of November 1, 1998,
providing for the issuance of REMIC Multi-Class
Pass-Through Certificates, Series 1998-23)
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 November 30, 1998, GE Capital Mortgage Services, Inc.
("GECMSI") offered to investors certain classes of its REMIC
Multi-Class Pass-Through Certificates, Series 1998-23 (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 1998-23") 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 November 23, 1998.
The original principal balance of each Class of the Certificates
is as follows:
Class A $500,713,877.00
Class R $100.00
Class M $9,649,000.00
Class B1 $4,172,000.00
Class B2 $2,347,000.00
Class B3 $2,087,000.00
Class B4 $1,043,000.00
Class B5 $1,565,082.67
---------------
Total : $521,577,059.67
The initial Junior Percentage and initial Senior Percentage for
Pool 1998-23 are approximately 4.00% and 96.00%, respectively.
The "Bankruptcy Loss Amount," the "Fraud Loss Amount" and the
"Special Hazard Loss Amount" for Pool 1998-23 as of the initial
issuance of the Certificates are $177,564.00, $5,215,771.00 and
$5,215,771.00, respectively, representing approximately .0300%,
1.0000%, and 1.0000%, respectively, of the aggregate Scheduled
Principal Balances of the Mortgage Loans as of November 1, 1998
(the "Cut-off Date").
Description of the Mortgage Pool and the Mortgaged Properties
Pool 1998-23
Pool 1998-23 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
$521,577,059.67.
The interest rates (the "Mortgage Rates") borne by the 1,576
Mortgage Loans conveyed by GECMSI to Pool 1998-23 range from
6.2500% to 8.7500% and the weighted average Mortgage Rate as of
the Cut-off Date is 7.1465% 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 1998-23 ranged
from $228,000.00 to $1,000,000.00, and, as of the Cut-off Date,
the average outstanding Scheduled Principal Balance of the
Mortgage Loans in Pool 1998-23 is $330,949.91, 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 1998-23 is January
1998, and the latest scheduled maturity date of any such Mortgage
Loan is November 2028. The weighted average loan-to-value ratio
of the Mortgage Loans as of the Cut-off Date in Pool 1998-23 is
74.1554%.
2
The Mortgage Loans in Pool 1998-23 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 1998-23:
AGGREGATE % OF
BALANCES POOL BY
MORTGAGE # OF AS OF AGGREGATE
RATES LOANS CUT-OFF DATE BALANCE
-------- ----- ------------ ---------
6.2500% 1 $372,000.00 0.0713%
6.3750% 6 $1,972,211.53 0.3781%
6.5000% 25 $8,572,801.49 1.6436%
6.6250% 38 $12,631,460.59 2.4218%
6.7500% 164 $53,226,956.25 10.2050%
6.8750% 137 $45,049,082.02 8.6371%
7.0000% 196 $63,142,708.77 12.1061%
7.1250% 242 $78,459,573.96 15.0428%
7.2500% 349 $116,939,841.22 22.4205%
7.3750% 221 $76,605,667.27 14.6873%
7.5000% 127 $41,901,042.62 8.0335%
7.6250% 37 $12,723,517.19 2.4394%
7.7500% 15 $4,217,517.62 0.8086%
7.8750% 12 $3,644,191.55 0.6987%
8.0000% 3 $833,240.53 0.1598%
8.5000% 1 $642,000.00 0.1231%
8.6250% 1 $303,639.73 0.0582%
8.7500% 1 $339,607.33 0.0651%
----- --------------- ---------
Total 1,576 $521,577,059.67 100.0000%
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 1998-23 :
AGGREGATE % OF
BALANCES POOL BY
ORIGINAL # OF AS OF AGGREGATE
BALANCES LOANS CUT-OFF DATE BALANCE
-------- ----- ------------ ---------
$227,151 - 250,000 162 $39,296,974.42 7.5343%
$250,001 - 300,000 644 $176,333,235.69 33.8076%
$300,001 - 350,000 310 $100,274,601.43 19.2253%
$350,001 - 400,000 203 $75,948,460.52 14.5613%
$400,001 - 450,000 90 $38,184,030.71 7.3209%
$450,001 - 600,000 134 $67,746,933.21 12.9889%
$600,001 - 650,000 20 $12,874,231.96 2.4683%
$650,001 - 1,000,000 + 13 $10,918,591.73 2.0934%
----- --------------- ---------
Total 1,576 $521,577,059.67 100.0000%
The largest outstanding Scheduled Principal Balance of any
Mortgage Loan, as of the Cut-off Date, in Pool 1998-23 is
$1,000,000.00.
The smallest outstanding Scheduled Principal Balance of any
Mortgage Loan, as of the Cut-off Date, in Pool 1998-23 is
$227,634.26.
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 1998-23:
AGGREGATE % OF
BALANCES POOL BY
YEAR OF # OF AS OF AGGREGATE
ORIGINATION LOANS CUT-OFF DATE BALANCE
----------- ----- ------------ ---------
1998 1,576 $521,577,059.67 100.0000%
----- --------------- ---------
Total 1,576 $521,577,059.67 100.0000%
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 1998-23:
LOAN- AGGREGATE % OF
TO-VALUE BALANCES POOL BY
RATIO AT # OF AS OF AGGREGATE
ORIGINATION LOANS CUT-OFF DATE BALANCE
----------- ----- ------------ ---------
00.000 - 50.00 63 $24,983,279.09 4.7899%
50.001 - 60.00 100 $35,653,774.62 6.8358%
60.001 - 70.00 211 $79,372,147.63 15.2177%
70.001 - 75.00 257 $84,741,502.06 16.2472%
75.001 - 80.00 734 $235,665,757.24 45.1832%
80.001 - 85.00 26 $7,899,634.50 1.5146%
85.001 - 90.00 123 $36,399,671.99 6.9788%
90.001 - 95.00 62 $16,861,292.54 3.2328%
----- --------------- ---------
Total 1,576 $521,577,059.67 100.0000%
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 1998-23:
AGGREGATE % OF
BALANCES POOL BY
TYPE OF # OF AS OF AGGREGATE
DWELLING LOANS CUT-OFF DATE BALANCE
- -------- ----- ------------ ---------
Single-family
detatched 1,478 $489,495,023.21 93.8490%
Single-family
attched 28 $9,043,568.88 1.7339%
Condominium 59 $18,742,011.05 3.5933%
2 - 4 Family Units 8 $3,046,410.68 0.5841%
Co-op 3 $1,250,045.85 0.2397%
----- --------------- ---------
Total 1,576 $521,577,059.67 100.0000%
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 1998-23:
AGGREGATE % OF
BALANCES POOL BY
# OF AS OF AGGREGATE
OCCUPANCY LOANS CUT-OFF DATE BALANCE
- --------- ----- ------------ ---------
Owner Occupied 1,543 $510,536,738.08 97.8833%
Vacation 26 $8,812,041.95 1.6895%
Investment 7 $2,228,279.64 0.4272%
----- --------------- ---------
Total 1,576 $521,577,059.67 100.0000%
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
1998-23:
AGGREGATE % OF
BALANCES POOL BY
# OF AS OF AGGREGATE
STATE LOANS CUT-OFF DATE BALANCE
- ----- ----- ------------ ---------
Alabama 1 $270,000.00 0.0518%
Arizona 16 $5,111,906.90 0.9801%
Arkansas 1 $339,721.30 0.0651%
California 740 $251,820,254.82 48.2805%
Colorado 17 $5,472,114.38 1.0491%
Connecticut 8 $2,806,585.40 0.5381%
Delaware 2 $592,735.20 0.1136%
District Of Columbia 7 $2,452,135.69 0.4701%
Florida 17 $5,166,911.65 0.9906%
Georgia 41 $12,700,314.24 2.4350%
Hawaii 4 $1,617,427.56 0.3101%
Illinois 42 $13,567,000.40 2.6012%
Indiana 6 $1,887,299.58 0.3618%
Kansas 2 $666,940.91 0.1279%
Kentucky 2 $607,619.23 0.1165%
Louisiana 4 $1,214,428.75 0.2328%
Maryland 91 $29,801,313.66 5.7137%
Massachusetts 68 $23,814,121.29 4.5658%
Michigan 17 $5,312,606.94 1.0186%
Minnesota 1 $274,000.00 0.0525%
Missouri 8 $2,638,715.74 0.5059%
Nebraska 2 $511,557.55 0.0981%
Nevada 6 $1,803,817.91 0.3458%
New Hampshire 6 $1,874,601.05 0.3594%
New Jersey 75 $23,498,055.52 4.5052%
New Mexico 5 $1,493,825.93 0.2864%
New York 21 $7,767,674.66 1.4893%
North Carolina 25 $8,286,292.09 1.5887%
Ohio 28 $9,551,006.85 1.8312%
Oklahoma 2 $492,067.70 0.0943%
Oregon 23 $7,149,207.12 1.3707%
Pennsylvania 31 $10,516,815.94 2.0164%
Rhode Island 1 $265,392.81 0.0509%
South Carolina 7 $1,904,216.48 0.3651%
Tennessee 12 $3,478,985.47 0.6670%
Texas 32 $10,425,644.24 1.9989%
Utah 2 $602,472.84 0.1155%
Virginia 131 $39,913,054.75 7.6524%
Washington 50 $16,243,857.71 3.1144%
West Virginia 1 $237,305.32 0.0455%
Wisconsin 21 $7,427,054.09 1.4240%
----- --------------- ---------
Total 1,576 $521,577,059.67 100.0000%
7
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 1998-23:
AGGREGATE % OF
BALANCES POOL BY
YEAR OF # OF AS OF AGGREGATE
MATURITY LOANS CUT-OFF DATE BALANCE
-------- ----- ------------ ---------
2018 12 $3,821,243.66 0.7326%
2023 5 $1,375,482.75 0.2637%
2028 1,559 $516,380,333.26 99.0037%
----- --------------- ---------
Total 1,576 $521,577,059.67 100.0000%
The weighted average scheduled remaining term to maturity of the
Mortgage Loans in Pool 1998-23 calculated as of the Cut-off Date
is 357 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 1998-23:
AGGREGATE % OF
BALANCES POOL BY
PURPOSE # OF AS OF AGGREGATE
OF LOAN LOANS CUT-OFF DATE BALANCE
- ------- ----- ------------ ---------
Purchase 677 $215,278,734.75 41.2746%
Rate Term/Refinance 675 $228,986,748.67 43.9027%
Cash-out Refinance 224 $77,311,576.25 14.8227%
----- --------------- ---------
Total 1,576 $521,577,059.67 100.0000%
7
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS
AND EXHIBITS.
1.1 The Underwriting Agreement, dated as of March 21, 1996,
and the related Terms Agreement, dated as of November
23, 1998, for certain of the Series 1998-23 Certificates
between GE Capital Mortgage Services, Inc. and
Donaldson, Lufkin & Jenrette Securities Corporation.
1.2 The Underwriting Agreement, dated as of May 22, 1996,
and the related Terms Agreement, dated as of November
23, 1998, for certain of the Series 1998-23 Certificates
between GE Capital Mortgage Services, Inc. and Lehman
Brothers Inc.
4.1 The Pooling and Servicing Agreement for the Series
1998-23 Certificates, dated as of November 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 November 30, 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 November 30, 1998
10
EXHIBIT INDEX
The exhibits are being filed herewith:
- ----------------------------------------------------------------
EXHIBIT NO. DESCRIPTION PAGE
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1.1 The Underwriting Agreement, dated as
of March 21, 1996, and the related Terms
Agreement, dated as of November 23,
1998, for certain of the Series 1998-23
Certificates between GE Capital
Mortgage Services, Inc. and Donaldson,
Lufkin & Jenrette Securities Corporation.
1.2 The Underwriting Agreement, dated as
of May 22, 1996, and the related Terms
Agreement, dated as of November 23,
1998, for certain of the Series 1998-23
Certificates between GE Capital
Mortgage Services, Inc. and Lehman
Brothers Inc.
4.1 The Pooling and Servicing Agreement
for the Series 1998-23 Certificates, dated
as of November 1, 1998, between GE
Capital Mortgage Services, Inc., as seller
and servicer, and State Street Bank and
Trust Company, as trustee.
- ----------------------------------------------------------------
11