ANNUAL SERVICING CERTIFICATION
PNC MORTGAGE CORP. OF AMERICA
75 NORTH FAIRWAY DRIVE
VERNON HILLS, ILLINOIS 60061


FISCAL YEAR ENDING: December 31, 1998

*Principal Officers:

Sy Naqvi            President
George M. Wessel    Senior Vice President




*Contacts:

Servicing Manager:                  George Wessel             (502) 581-7177
Customer Services Manager:          Chuck Hoeeker             (847) 549-3131
Investor Services Manager:          Barbara Campbell          (847) 549-3107
Portfolio Management Manager:       Ellen Peterson            (847) 549-3353

*Custodial Depository:

PNC Bank, N.A.
2 PNC Plaza
620 Liberty Avenue
Pittsburgh, PA 15222

*Total Servicing Portfolio at Fiscal Year-End:
Number of Loans: 614,671
Unpaid Principal Balance: $56,603,071.21.

*Breakdown of Portfolio:



 Investor         Loans                        Outstanding Principal
                                                   (rounded)
FHLMC             188,784                       $17,105,268,512
FNMA              157,301                       $12,390,421,365
GNMA               89,025                       $ 6,752,032,974
Privates           77,201                       $ 6,013,477,915
Affiliates         89,313                       $12,686,162,714
Portfolio          13,047                       $ 1,655,707,731

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*Individual Investor Delinquencies are reported to each investor on a monthly
basis or as requested.

*Fidelity Bond

Insurer: Federal Insurance Company and Other Insurers
Policy Number: 7022-95-53
Coverage Amount: $300,000,000
Deductible: $50,000
Expiration: 12/01/2000

(Original  certificate  is  forwarded  directly to you from our broker.  Copy is
attached.)

*Errors & Omissions

Insurer: Lexington Ins. Co. & Federal Ins. Co. and Continental Casualty Co.
Policy Numbers: 853-56-04, 3530-52-12, 169635523 & 3532-22-25
Coverage Amount: $45,000,000
Deductible: $1,000
Expiration: 06/30/2000

(Original  certificate  is  forwarded  directly to you from our broker.  Copy is
attached.)

*We hereby certify that, to the best of our knowledge, we are in compliance with
all terms,  conditions and requirements of our Servicing  Agreement,  Commitment
Letters and any  amendments  thereto as well as  government  agencies,  federal,
state and local law and specifically certify to the following:

All loans have hazard insurance  policies (fire and extended  coverage and flood
if  required)  in force and at  sufficient  amounts  to protect  the  investor's
interest.  Such policies satisfy FNMA/FHLMC requirements for financial stability
of  insurer  and all  mortgagee  clauses  include  "Its  successors  and/or  its
assigns."

*If applicable,  all FHA and private mortgage  insurance premiums have been paid
    and coverages are in full force and effect.

*Allreal  estate  taxes  and  lienable  assessments  have  been paid in order to
    protect the interest and first lien position of the investor.

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*If an escrow account for taxes and/or insurance exists, the accounts are
analyzed on an annual basis so as to eliminate deficiencies or overages and
accounts are handled in accordance with RESPA requirements.

*All property  inspections  have been  performed as required in order to satisfy
our servicing agreement, FHA/VA, FNMA and FHLMC requirements.

*We are in compliance with Internal  Revenue  Service tax information  reporting
requirements  including  1099INT,  1099A,  1099MISC,  1099C  and  1098  Mortgage
Interest  Statements. Such statements were delivered to customers by January 31,
1999 and reported to IRS by February 28, 1999.

*All accounts with missing  social  security  numbers and all interest on escrow
  accounts requiring W-9 certification were solicited during 1998.

*Interest on escrow  accounts  was properly  accrued and credited in  accordance
  with individual state law.

*All  Adjustable  Rate  Mortgages  with  scheduled  rate  changes  were  made in
accordance   with  the  original  note  and  satisfied   applicable  law  and/or
regulations.

*We are in compliance  with individual  state  licensing laws and  requirements,
where required, for the states in which we do business.

*With respect to commercial  loans,  if any, we certify full compliance with UCC
filing requirements.

*We maintain a Business  Continuation Plan in order to 'minimize  financial loss
and to ensure  timely  resumption  of  operations  in the event of a disaster as
required by federal regulation.

*Our auditors subscribe to the Mortgage Bankers Uniform Single Audit Program and
their certification letter is enclosed with our financial statements.

*Our audited financial statements are included with this certification.

We hereby agree to indemnify the investor for any loss occasioned by our failure
to provide written notice of any exception to this certification.

PNC Mortgage Corp. of  America
Barbara A. Campbell, Vice President

Date: March 31, 1999

Enclosures:

Financial Statements
Independent Auditors Report
Mortgage Bankers Uniform Single Audit Certification

Attachment: Copy of Errors and Omissions Certificate and Fidelity Bond
Certificate

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