Exhibit 99.29
KPMG Peat Marwick
1600 market Street
Philadelphia, PA  19103


                         Independent Accountants' Report



The Board of Directors
GE Capital Mortgage Services, Inc.:


We have examined  management's  assertion  about GE Capital  Mortgage  Services,
Inc.'s (the Company's) compliance with the minimum servicing standards set forth
in the Mortgage  Bankers  Association of America's  Uniform  Single  Attestation
Program for Mortgage  Bankers (USAP) for master serviced loans  (including those
serviced by the Company  pursuant to various  pooling and  servicing  agreements
relating to the Company's publicly rated  mortgage-backed  securities  program),
insofar as the assertion  relates to minimum  servicing  standards  I.1.,  I.2.,
I.3., III.1.,  III.5.,  IV.1., and VII.1., as of and for the year ended December
31, 1998,  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,  insofar
as it relates to the above  mentioned  minimum  servicing  standards,  about the
Company's  compliance based on our  examination.  In as much as the Company does
not service  the loans  underlying  the master  servicing  directly,  we did not
examine the Company's  compliance with minimum servicing  standards I.4., II.1.,
II.2., II.3., II.4., III.2.,  III.3., III.4., III.6., V.1., V.2., V.3., V.4. and
VI.1.,  of the USAP.  With respect to those loans not serviced,  our  procedures
consisted of obtaining and reading the most recently  available reports from the
primary  servicers'  independent  auditors.  Our  opinion as  expressed  herein,
insofar  as it relates  to such  minimum  standards  performed  by such  primary
servicers,  is based  solely  upon the  reports  of the  respective  independent
auditors.

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 specified above 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 specified above.

In our opinion,  except for the  material  noncompliance  with  various  minimum
servicing standards noted in our reading of other independent  auditors' reports
as discussed  above,  management's  assertion that the Company complied with the
aforementioned minimum servicing standards as of and for the year ended December
31, 1998, is fairly stated, in all material respects.

As discussed in management's  assertion,  the following  material  noncompliance
occurred  at the  master  servicer's  primary  servicers  during  the year ended
December  31,  1998.  Several  reports  obtained  from  the  primary  servicers'
independent  auditors  contained  exceptions,  which in their opinion,  the USAP
required them to report. These exceptions are listed on the attached Schedule of
Findings.

This condition was considered in determining the nature,  timing,  and extent of
audit tests applied in our audit of the 1998 consolidated  financial statements,
and this  report  does not affect our report  dated  January  22,  1999 on those
consolidated financial statements.

                                             /s/ KPMG PEAT MARWICK
                                             ---------------------

February 8, 1999

<PAGE>


                 Schedule of Findings - Primary Servicers' USAP

The following  summarizes  the findings  from the 157 reports  obtained from the
primary servicers'  independent  auditors which disclosed exceptions based on an
independent  review of the primary servicers'  mortgage servicing  operations in
accordance  with the Uniform  Single  Attestation  Program  (USAP) for  Mortgage
Bankers.

Instances of exceptions with respect to:
      Custodial Bank Accounts - sixteen primary servicers
      Mortgage Payments - one primary servicer
      Mortgagor Loan Accounting - seven primary servicers
      Investor Accounting - two primary servicers
      Insurance Policies - two  primary servicer

One primary  servicer  did not provide the required  USAP from it's  independent
auditors.

Where the Company is the primary  servicer,  a separate report was issued on the
review of the Company's  mortgage  servicing  operations in accordance  with the
USAP for Mortgage Bankers which is dated February 8, 1999.


<PAGE>
                       GE Capital Mortgage Services, Inc.
                               3 Executive Campus
                             Cherry Hill, NJ 08002


As of and for the year ended  December 31, 1998, GE Capital  Mortgage  Services,
Inc.  (the  Company)  has  complied in all  material  respects  with the minimum
servicing  standards  for master  servicers  set forth in the  Mortgage  Bankers
Association of America's Uniform Single Attestation Program for Mortgage Bankers
(USAP). With respect to minimum servicing standards I.4, II.1, II.2, II.3, II.4,
III.2, III.3, III.4, III.6, V.1, V.2, V.3, V.4 and VI.1 of the USAP, the Company
relies on the performance of its primary servicers.  The Company had in effect a
fidelity bond and errors and omissions  policy in the amount of $120 million and
$20 million, respectively.

With  respect to the  Schedule  of Findings  related to the  primary  servicers'
USAP's,  where the Company acts as master servicer,  the Company responds in the
following manner:

1.   Custodial Bank Accounts: Of the sixteen primary servicers with bank account
     reconciliation findings, all have taken the necessary corrective action and
     therefore  should  avoid  future  findings.  Each of the primary  servicers
     provided  written  verification  that the bank  accounts  involved  did not
     include accounts maintained for the Company.

2.   Mortgage Payments: The one primary servicer with a mortgage payment finding
     has taken the necessary corrective action and therefore should avoid future
     findings.  Such primary  servicer  provided written  verification  that the
     finding did not involve loans serviced for the Company.

3.   Mortgage  Loan  Accounting:  Of the seven primary  servicers  with mortgage
     accounting related findings, all have taken the necessary corrective action
     and therefore should avoid future findings.  Each of the primary  servicers
     provided  written  verification  that these  findings did not involve loans
     serviced for the Company.

4.   Investor Accounting:  Of the two primary servicers with investor accounting
     findings,  both have taken the  necessary  corrective  action and therefore
     should avoid future  findings.  Each of the primary  servicers has provided
     written  verification  that the findings did not involve any loans serviced
     for the Company.

5.   Insurance  Policy:  Of the two primary  servicers with mortgage  impairment
     policy  findings,  both have  taken the  necessary  corrective  action  and
     therefore  should  avoid  future  findings.  Each of the primary  servicers
     provided  written  verification  that the  findings  did not involve  loans
     serviced for the Company.

The one  primary  servicer  that did not  provide  the  required  USAP  from its
independent  auditors was a new servicer for the Company as a result of a merger
and was not aware of the Company's USAP requirement.  Such servicer has provided
written  verification that they will comply with the USAP requirement  effective
with their 1998 fiscal year end.

The Company  follows the following  procedures  in  connection  with the primary
servicers who had exceptions reported in their USAP's:

1.   Investigate  the USAP  findings and obtain  written  verification  that the
     loans  serviced  for the Company are not affected by the  findings.  In the
     event it is determined  that such loans are so affected,  the Company would
     pursue ways to put corrective action plans and procedures in place.

2.   Perform  annual due diligence  reviews to validate  such primary  servicers
     continued  compliance  with  the  servicing   requirements  stated  in  the
     Company's Seller's/Servicer's Guide.

3.   Perform monthly primary  servicer  reviews of compliance with reporting and
     remittance requirements.

4.   In the event of continued  non-compliance  with corrective action plans and
     procedures, seek termination of servicing rights, with cause.



/s/ Greg Gibson          
-------------------------
Greg Gibson
Vice President, Servicing
GE Capital Mortgage Services, Inc.