SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM 10-Q

           -------------------------------------------------------------

                 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


                      For Quarter Ended September 30, 1998
                         Commission File Number 33-42666


                  COLLATERALIZED MORTGAGE SECURITIES CORPORATION
              ------------------------------------------------------
              (Exact name of registrant as specified in its charter)



            Maryland                                        13-3251782     
  ----------------------------                          ------------------ 
  (State or other jurisdiction                           (I.R.S. Employer 
       of incorporation)                                Identification No.)


    11 Madison Avenue, New York, New York                      10010
  ----------------------------------------                  ----------
  (Address of principal executive offices)                  (Zip Code)


  Registrant's telephone number, including area code        212-325-1811
                                                            ------------


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 the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:


                          10,000 shares of common stock
                       outstanding as of November 9, 1998

<PAGE>


           COLLATERALZED MORTGAGE SECURITIES CORPORATION AND SUBSIDIARY
                                      INDEX


                                                                           Page
                                                                          Number
                                                                          ------
PART I         FINANCIAL INFORMATION

      Item  1. Financial Statements

               Consolidated Statements of Financial Condition as of
                     September 30, 1998 and December 31, 1997                 3

               Consolidated Statements of Operations for the Nine Months
                     Ended September 30, 1998 and 1997                        4

               Consolidated Statements of Cash Flows for the Nine Months
                     Ended September 30, 1998 and 1997                        5

               Notes to Consolidated Financial Statements                     6

      Item  2. Management's Discussion and Analysis of Financial
                        Condition and Results of Operations                   7

PART II        OTHER INFORMATION

      Item  1. Legal Proceedings                                              8

      Item  2. Changes in Securities                                          8

      Item  3. Defaults Upon Senior Securities                                8

      Item  4. Submission of Matters to a Vote of Security Holders            8

      Item  5. Other Information                                              8

      Item  6. Exhibits and Reports on Form 8-K                            8, 9

SIGNATURE                                                                    10

INDEX TO EXHIBITS                                                            11


                                     Page 2


<PAGE>



        COLLATERALIZED MORTGAGE SECURITIES CORPORATION AND SUBSIDIARY
               CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

<TABLE>
<CAPTION>
                                                September 30,       December 31,
                                                    1998               1997
                                                -------------       ------------
                                                 (unaudited)
                                                (in thousands, except par value
                                                        and share data)
<S>                                                <C>            <C>        
Assets:                                        
                                               
Cash                                               $       12     $        12
Receivable from Credit Suisse First Boston     
  Management Corporation                                    1               1
                                                    ---------      ----------
                                               
                                               
       Total Assets                                $       13     $        13
                                                    =========      ==========
                                               
                                               
Liabilities and Stockholder's Equity:          
                                               
Accrued expenses                                   $        -     $         -
                                                    ---------      ----------
                                               
       Total Liabilities                                    -               -
                                                    ---------      ----------
                                           
Stockholder's Equity:

Common stock and paid in capital, $0.1 par value
(authorized 15,000,000 shares; issued 10,000
shares at September 30, 1998 and December 31,1997)         13              13
                                                    ---------      ----------

       Total Liabilities and Stockholder's Equity  $       13     $        13
                                                    =========      ==========

</TABLE>



        See Accompanying Notes to Consolidated Financial Statements.

                                   Page 3

<PAGE>

          COLLATERALIZED MORTGAGE SECURITIES CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                        Nine Months                  Nine Months
                                                                            Ended                        Ended
                                                                     September 30, 1998            September 30, 1997
                                                                  ------------------------     -------------------------
                                                                                      (in thousands)
<S>                                                               <C>                          <C>                       
Revenues:
     Commitment fee and miscellaneous income                      $                       -    $                        -
                                                                   ------------------------     -------------------------
                                                                                          -                             -
                                                                   ------------------------     -------------------------
Expenses:
     General and administrative expenses                                                  -                             -
                                                                   ------------------------     -------------------------
                                                                                          -                             -
                                                                   ------------------------     -------------------------

Income from operations before income tax
     expense                                                                              -                             -
                                                                   ------------------------     -------------------------
Income tax expense                                                                        -                             -
                                                                   ------------------------     -------------------------

Net income                                                        $                       -    $                        -
                                                                   ========================     =========================
</TABLE>



          See Accompanying Notes to Consolidated Financial Statements.

                                     Page 4


<PAGE>



          COLLATERALIZED MORTGAGE SECURITIES CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)

<TABLE>
<CAPTION>
                                                         Nine Months                  Nine Months
                                                             Ended                        Ended
                                                      September 30, 1998            September 30, 1997
                                                   ------------------------     -------------------------
                                                                        (in thousands)
<S>                                               <C>                          <C>                      
Cash Flows From Operating Activities: 

Net income                                        $                     -      $                       -
Adjustments to reconcile net income
    to net cash provided by (used for)
    operating activities:                                               -                              -
                                                   ----------------------       ------------------------
Net Cash Provided by Operating Activities                               -                              -
                                                   ----------------------       ------------------------


Net increase in cash                                                    -                              -
Cash at beginning of period                                            12                             12
                                                   ----------------------       ------------------------
Cash at end of period                             $                    12      $                      12
                                                   ======================       ========================

</TABLE>


          See Accompanying Notes to Consolidated Financial Statements.

                                     Page 5

<PAGE>


           COLLATERALIZED MORTGAGE SECURITIES CORPORATION AND SUBSIDIARY
                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)



1.  Description of Business

   Collateralized Mortgage Securities Corporation (the "Company") and its wholly
   owned subsidiary Asset Backed Securities Corporation ("ABSC") are wholly
   owned subsidiaries of Credit Suisse First Boston Management Corporation
   ("FBSC"), which is a wholly owned subsidiary of Credit Suisse First Boston,
   Inc., a privately owned holding company.

   The foregoing financial statements are unaudited; however, in the opinion of
   management, all adjustments (comprising only normal recurring accruals)
   necessary for a fair presentation of the financial statements have been
   included. A summary of the significant accounting policies is set forth in
   Note 3 to the Company's December 31, 1997 Financial Statements contained in
   the Company's 1997 Form 10-K.


                                     Page 6


<PAGE>


Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations

        The principal activities of the Company and ABSC include (i) issuing and
        selling collateralized mortgage obligations and asset backed obligations
        (the "Bonds") and acquiring, owning, holding and pledging
        mortgage-backed securities and receivables, (ii) conveying or
        transferring all or any portion of the Companies' rights, title or
        interest in the Bonds to various entities including trusts and (iii)
        creating, acquiring, owning and selling residual interests in such
        entities.

        Results of Operations

        The Company and ABSC recorded no gains or (losses) on the sale of Bonds
        or beneficial interests in trusts for the nine months ended September
        30, 1998 and September 30, 1997.

        For the nine months ended September 30, 1998 and 1997, the Company had
        no transactions.

        Liquidity and Capital Resources

        The Company and ABSC utilize FBSC to facilitate the settlement of all
        transactions and maintain all excess cash with FBSC. Such cash is
        available from FBSC on demand and does not earn interest. All gains and
        losses are recognized by FBSC on each transaction.


                                     Page 7

<PAGE>


                           PART II - OTHER INFORMATION

Item 1.    Legal Proceedings

           None.

Item 2.    Changes in Securities

           Not applicable

Item 3.    Defaults Upon Senior Securities

           Not applicable.

Item 4.    Submission of Matters to a Vote of Security Holders

           None.

Item 5.    Other Information

           None

Item 6.    Exhibits and Reports on Form 8-K

           (a) Exhibits:

               Indentures (incorporated by reference to Exhibit 1 of Company's
               Form 8-K dated February 14, 1992 for Series 1992-1) dated as of
               January 1, 1987 as amended by Amendment No. 1 dated as of April
               30, 1987 and Amendment No. 2 dated as of October 15, 1987, as
               amended and restated as of August 1, 1988, between the Company
               and State Street Bank and Trust Company, as Trustee.

               Articles of Incorporation of the Company as amended as of January
               7, 1986 (incorporated by reference to Exhibit 3.1 of the
               Company's Form S-3 Registration Statement dated January 31,
               1985).

               By-laws of the Company as amended and restated as of January 7,
               1986 (incorporated by reference to Exhibit 3.2 of the Company's
               Form S-3 Registration Statement dated January 31, 1985).

               Restated Certificate of Incorporation of Asset Backed Securities
               Corporation (incorporated by reference to Exhibit 3.1 of the
               Company's Form S-3 Registration Statement (No. 0-14811).


                                     Page 8


<PAGE>


Item 6.     Exhibits and Reports on Form 8-K (continued)


            By-laws of Asset Backed Securities Corporation (incorporated by
            reference to Exhibit 3.2 of the Company's Form S-3 Registration
            Statement (No. 33-7382)).

            Indenture, dated as of October 30, 1986, between Asset Backed
            Securities Corporation and State Street Bank and Trust Company, the
            Trustee (incorporated by reference to Exhibit 1 of the Current
            Report on Form 8-K dated October 30, 1986).

          (b) Reports on Form 8-K

                None.


                                     Page 9


<PAGE>


                                    SIGNATURE


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.



                                             Collateralized Mortgage
                                             Securities Corporation



                                           By:       THOMAS M. ZINGALLI
                                               -----------------------------
                                                    Thomas M. Zingalli
                                                 Controller and Principal
                                                     Accounting Officer
                                               (Duly Authorized Officer and
                                               Principal Accounting Officer)

Dated:  November 9, 1998




                                     Page 10


<PAGE>



                                INDEX TO EXHIBITS

Exhibit
Number  Description of Exhibit                                              Page
------  ----------------------                                              ----

1       Indenture dated as of January 1, 1987 as amended by Amendment No. 1
        dated as of April 30, 1987 and Amendment No. 2 dated as of October
        15, 1987, as amended and restated as of August 1, 1988, between the
        Company and State Street Bank and Trust Company, as Trustee.        ****

1       Indenture, dated as of October 30, 1986, between Asset Backed
        Securities Corporation and State Street Bank and Trust Company,
        as Trustee.                                                           **

3.1     Articles of incorporation of the Company as amended as of
        January 7, 1986.                                                       *

3.1     Restated Certificate of Incorporation of Asset Backed Securities
        Corporation.                                                         ***

3.2     By-Laws of the Company as amended and restated as of
        January 7, 1986.                                                       *

3.2     By-Laws of Asset Backed Securities Corporation.                     ****


*       Incorporated by reference to the same Exhibits in Registration Statement
        No. 0-13156 on Form 10 filed with the Securities and Exchange Commission
        on January 31, 1985.

**      Incorporated by reference to the same Exhibit in the Current Report
        on Form 8-K filed with the Securities and Exchange Commission on
        November 14, 1986.

***     Incorporated by reference to the same Exhibit in the Registration
        Statement No. 0-014811 of the Company's Form S-3 filed with the
        Securities and Exchange Commission on July 21, 1986.

****    Incorporated by reference to the same Exhibit in the Registration
        Statement No. 33-7382 of the Company's Form S-3 filed with the
        Securities and Exchange Commission on November 12, 1986.


                                     Page 11